Articles

Behavioral patterns in born-again global firms

P. SCHUEFFEL, R. BALDEGGER, W. AMANN

Multinational Business Review

2014, vol. 22, n°4, pp.418-441

Départements : Stratégie et Politique d’Entreprise

Mots clés : Born-again global firms, International entrepreneurship, Internationalization behavior, Internationalization theories


Purpose – The purpose of this paper is to identify factors that influence so-called born-again global firms’ internationalization behavior. Specifically, this article explores the following questions: why do mature, domestically focused firms suddenly turn into born-again global firms, how do they do so and what elements are needed for born-again global firms to be sustainable. Design/methodology/approach – Using an established international entrepreneurship model as a starting point, we extract relevant factors for a conceptual framework on born-again global firms’ internationalization activities. Case study research among a cross-sectional sample of born-again global firms is being applied for that purpose. Findings – Driven by the insufficient size of their domestic market, born-again global firms typically embark on internationalization after a generational change at the chief executive officer level. Throughout their internationalization journey, they flexibly adapt toward new needs of their foreign environments. Due to their idiosyncratic characteristics, born-again global firms deserve consideration as a separate group of research objects in the field of international entrepreneurship. Research limitations/implications – The investigated sample of case study firms was drawn across a variety of industries. As such, industry-specific conditions could not be observed and the findings from case study research run the risks of being generalized too broadly. In addition, the accuracy of the case study results may suffer from a certain degree of hindsight bias as the internationalization event took place in the past. Practical implications – Openness to learning from other markets and the flexibility to modify products according to client needs strengthen born-again global firms’ competitiveness. To endure, born-again global firms have to be innovative in adapting to changes, which makes it easier for them to launch their products in new markets. Originality/value – To date, international entrepreneurship has focused on the activities of small and newly established firms, largely neglecting the behavior of somewhat larger and established firms in traditional sectors. This study shows that established companies can exhibit the same innovative, proactive and risk-seeking behavior across borders as new ventures do. Despite their strongly rooted structures, strategies and cultures, born-again globals can flexibly adapt to new environments

Beware of black swans: Taking stock of the description-experience gap in decision under uncertainty

A. DE PALMA, M. ABDELLAOUI, G. ATTANASI, M. BEN-AKIVA, I. EREV, H. FEHR-DUDA, D. FOK, C. FOX, R. HERTWIG, N. PICARD, P. P. WAKKER, J. WALKER, M. WEBER

Marketing Letters

septembre 2014, vol. 25, n°3, pp.269-280

Départements : Economie et Sciences de la décision, GREGHEC (CNRS)

Mots clés : Ambiguity Black swans Description-based decision making Fourfold pattern Probabilistic choices Risk


Uncertainty pervades most aspects of life. From selecting a new technology to choosing a career, decision makers rarely know in advance the exact outcomes of their decisions. Whereas the consequences of decisions in standard decision theory are explicitly described (the decision from description (DFD) paradigm), the consequences of decisions in the recent decision from experience (DFE) paradigm are learned from experience. In DFD, decision makers typically overrespond to rare events. That is, rare events have more impact on decisions than their objective probabilities warrant (overweighting). In DFE, decision makers typically exhibit the opposite pattern, underresponding to rare events. That is, rare events may have less impact on decisions than their objective probabilities warrant (underweighting). In extreme cases, rare events are completely neglected, a pattern known as the 'Black Swan effect.' This contrast between DFD and DFE is known as a description-experience gap. In this paper, we discuss several tentative interpretations arising from our interdisciplinary examination of this gap. First, while a source of underweighting of rare events in DFE may be sampling error, we observe that a robust description-experience gap remains when these factors are not at play. Second, the residual description-experience gap is not only about experience per se but also about the way in which information concerning the probability distribution over the outcomes is learned in DFE. Econometric error theories may reveal that different assumed error structures in DFD and DFE also contribute to the gap

Business Partnering: Is It All That Good?

J. BURNS, L. WARREN, J. OLIVEIRA

Controlling & Management Review

avril 2014, vol. 58, n°2, pp.36-41

Départements : Comptabilité et Contrôle de Gestion


Business sustainability: It is about time

M. DESJARDINE, P. BANSAL

Strategic Organization

2014, vol. 12, n°1, pp.70-78

Mots clés : Business sustainability, short-termism, corporate social responsibility, systems thinking

http://soq.sagepub.com/content/12/1/70.short?rss=1&ssource=mfr


Sustainability is fast becoming fashionable in strategic management, and yet its meaning is often elusive. Some people restrict sustainability to environmental issues, and others use it synonymously with corporate social responsibility. In this essay, we return to the roots of its original meaning and argue that sustainability requires the consideration of time. Sustainability obliges firms to make intertemporal trade-offs to safeguard intergenerational equity. In this essay, we clarify the meaning of sustainability by showing that the notion of ‘time’ discriminates sustainability from responsibility and other similar concepts. We then argue that the omission of time from most strategic management has contributed to short-termism, which is the bane sustainability. We conclude with directions for future research that will integrate sustainability into strategy and contribute to a world in which both business and society can thrive for generations to come

Capturing Value From Innovations: The Importance of Rent Configurations

F. DUHAMEL, S. REBOUD, M. SANTI

Management Decision

mars 2014, vol. 52, n°1, pp.122-143

Départements : Stratégie et Politique d’Entreprise

Mots clés : Innovation, Business strategy


Purpose – The purpose of this paper is to devise recommendations for firms to formulate modes of value capture for their product innovations, ex ante. More specifically, the research question is: how can innovators try to maximize, ex ante, the appropriation of the rent they can derive from their innovating projects? Design/methodology/approach – A theoretical framework is developed and proposed to assess modes of value capture of product innovations and two illustrations are provided to show how the framework can work in practice for innovation projects. Findings – This paper presents a practitioner's view based on the development of an original concept of rent configuration and appropriable rent. Research limitations/implications – In terms of research limitations, the possible endogeneity of intellectual property protection and the timing of were not considered. Practical implications – The framework allows a set of predictions regarding modes of value capture for product innovators. Originality/value – The paper's contribution lies in the proposal of an integrative framework based on the concept of rent configuration, separating analytically three dimensions of innovation value, namely volume, profit and duration. This concept allows the authors to present a richer set of recommendations in comparison to previous frameworks, in order to avoid adopting the form of a yes/no decision tree that tends to over simplify the issues at stake. The authors also contemplate not only erosion effects, but also amplification effects on the rent, which constitutes another contribution of this paper.

CEO Optimism and Incentive Compensation

C. OTTO

Journal of Financial Economics

novembre 2014, vol. 114, n°2, pp.366-404

Départements : Finance, GREGHEC (CNRS)

Mots clés : CEO optimism, Incentive compensation, Compensation contract

http://dx.doi.org/10.2139/ssrn.1484683


I study the effect of chief executive officer (CEO) optimism on CEO compensation. Using data on compensation in US firms, I provide evidence that CEOs whose option exercise behavior and earnings forecasts are indicative of optimistic beliefs receive smaller stock option grants, fewer bonus payments, and less total compensation than their peers. These findings add to our understanding of the interplay between managerial biases and remuneration and show how sophisticated principals can take advantage of optimistic agents by appropriately adjusting their compensation contracts

Challengers from within economic institutions: A second-class social movement? A response to Déjean, Giamporcaro, Gond, Leca and Penalva-Icher's comment on French SRI

Diane-Laure ARJALIES

Journal of Business Ethics

août 2014, vol. 123, n°2, pp.257-262

Départements : Comptabilité et Contrôle de Gestion

Mots clés : Institutional change, Mainstreaming, Social movement, Socially responsible investment

http://ssrn.com/abstract=2291395


In a recent comment made about my paper 'A Social Movement Perspective on Finance: How Socially Responsible Investment Mattered' (J Bus Ethics 92:57-78, 2010), published in this journal, Déjean, Giamporcaro, Gond, Leca and Penalva-Icher (J Bus Ethics 112:205-212, 2013) strongly criticize the social movement perspective adopted on French SRI. They both contest the empirical analysis of the movement and the possibility for insiders to trigger institutional change towards sustainability. This answer aims to address the different concerns raised throughout their comment and illuminate the differences between both approaches. It first explains why SRI in France can be considered as a social movement, despite not being protest-oriented. It then reflects on the dangers of systematically associating societal change with radical activism. It concludes by elaborating on the importance of acknowledging the potential contribution of reformist movements from within the economic institutions to the enhancement of the social good

Choosing a Digital Content Strategy: How Much Should be Free?

D. HALBHEER, F. STAHL, O. KOENIGSBERG, D. LEHMANN

International Journal of Research in Marketing

juin 2014, vol. 31, n°2, pp.192-206

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Information Goods, Sampling, Content Pricing, Advertising, Dorfman- Steiner Condition


This paper studies content strategies for online publishers of digital informationgoods. It examines sampling strategies and compares their performance to paidcontent and free content strategies. A sampling strategy, where some of the contentis offered for free and consumers are charged for access to the rest, is knownas a “metered model” in the newspaper industry. We analyze optimal decisionsconcerning the size of the sample and the price of the paid content when samplingserves the dual purpose of disclosing content quality and generating advertisingrevenue. We show in a reduced-form model how the publisher’s optimal ratio ofadvertising revenue to sales revenue is linked to characteristics of both the contentmarket and the advertising market. We assume that consumers learn about contentquality from the free samples in a Bayesian fashion. Surprisingly, we find that itcan be optimal for the publisher to generate advertising revenue by offering freesamples even when sampling reduces both prior quality expectations and contentdemand. In addition, we show that it can be optimal for the publisher to refrainfrom revealing quality through free samples when advertising effectiveness is lowand content quality is high

Claiming the credit

M. BERTINI, D. HALBHEER, O. KOENIGSBERG

Business Strategy Review

2014, vol. 25, n°8

Départements : Marketing

Mots clés : *BUSINESS -- Decision making *RESEARCH *EXECUTIVES *CORPORATE profits


Impartial decisions in the best interests of the organisation are more elusive than you might think

Classification models via Tabu search: An application to early stage venture classification

S. ELHEDHLI, C. AKDEMIR, T. ASTEBRO

Expert Systems with Applications

15 décembre 2014, vol. 41, n°18, pp.8085-8091

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Mots clés : Experts classify early stage venture proposals based on integer-valued attributes.•Model a disjunctive if-then rule as a large-scale mixed integer program.•Explore Benders decomposition and Tabu search.•Tabu search provides excellent classification accuracy.


We model the decision making process used by Experts at the Canadian Innovation Centre to classify early stage venture proposals based on potential commercial success. The decision is based on thirty-seven attributes that take values in {-1,0,1}. We adopt a conjunctive decision framework due to Åstebro and Elhedhli (2005) that selects a subset of attributes and determines two threshold values: one for the maximum allowed negatives (n) and one for minimum required positives (p). A proposal is classified as a success if the number of positives is greater than or equal to p and the number of negatives is less than or equal to n over the selected attributes. Based on a data set of 561 observations, the selection of attributes and the determination of the threshold values is modeled as a large-scale mixed integer program. Two solution approaches are explored: Benders decomposition and Tabu search. The first, was very slow to converge, while the second provided high quality solutions quickly. Tabu search provides excellent classification accuracy for predicting commercial successes as well as replicating Experts’ forecasts, opening the venue for the use of Tabu search in scoring and classification problems


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