Specific investments and supplier sustainable innovation contribution: A moderated nonlinear link

2022 ◽  
pp. 101891
Author(s):  
AiHua Wu
Keyword(s):  
Specific Investments ◽  
Sustainable Innovation

Investments and Risk Transfers

2017 ◽  
Vol 92 (6) ◽  
pp. 1-23 ◽  
Author(s):  
Tim Baldenius ◽  
Beatrice Michaeli
Keyword(s):  
Moral Hazard ◽  
Risk Premium ◽  
Bargaining Power ◽  
Risk Premia ◽  
The Other ◽  
Investment Risk ◽  
Incomplete Contracting ◽  
Risk Transfer ◽  
Specific Investments ◽  
Division Managers

ABSTRACT We demonstrate a novel link between relationship-specific investments and risk in a setting where division managers operate under moral hazard and collaborate on joint projects. Specific investments increase efficiency at the margin. This expands the scale of operations and thereby adds to the compensation risk borne by the managers. Accounting for this investment/risk link overturns key findings from prior incomplete contracting studies. We find that if the investing manager has full bargaining power vis-à-vis the other manager, he will underinvest relative to the benchmark of contractible investments; with equal bargaining power, however, he may overinvest. The reason is that the investing manager internalizes only his own share of the investment-induced risk premium (we label this a “risk transfer”), whereas the principal internalizes both managers' incremental risk premia. We show that high pay-performance sensitivity (PPS) reduces the managers' incentives to invest in relationship-specific assets. The optimal PPS, thus, trades off investment and effort incentives.

The Value of Information in the Hold-Up Problem

2004 ◽  
Vol 5 (2) ◽  
pp. 177-203 ◽  
Author(s):  
Thomas Pfeiffer
Keyword(s):  
Information System ◽  
Information Structure ◽  
Value Of Information ◽  
The Other ◽  
Information Control ◽  
Ceteris Paribus ◽  
Head Office ◽  
Specific Investments ◽  
Negative Effect ◽  
Central Management

Abstract In the literature, the information structure of the hold-up problem is typically assumed to be exogenous. In this paper, we introduce an additional stage at which the head office may grant individual divisions access to an information system before they undertake their specific investments. Although more information ceteris paribus enhances each divisions’ profits, more information can reduce divisions’ investments and destroy synergies for the other division that would have been generated by the investments. If this negative effect dominates, then information can be harmful for the entire company. Hence, information control can be a subtle force to deal with the hold-up problem to a certain extent. In this paper we analyze those conditions under which information is either harmful or beneficial for central management.

scholarly journals Sustainable Innovation in Higher Education: The Impact of Gender on Innovation Competences

2021 ◽  
Vol 13 (9) ◽  
pp. 5004
Author(s):  
Raquel Ferreras-Garcia ◽  
Jordi Sales-Zaguirre ◽  
Enric Serradell-López
Keyword(s):  
Higher Education ◽  
Business Students ◽  
Bachelor's Degree ◽  
Sustainable Innovation ◽  
Educational Implications ◽  
Development Goals ◽  
High Level ◽  
The Impact ◽  
Innovation In Higher Education

There is currently an increasing interest for sustainable innovation in our society. The European agendas highlight the role of higher education institutions in the formation and development of innovation competences among students. Our study aimed to contribute to the analysis of the level of achievement of students’ innovation competences by considering two sustainable development goals (SDG) of the 2030 United Nations’ Agenda: Gender Equality (SDG 5) and Quality Education (SDG 4). This article tries to answer how business students perceive their own innovation competences and which innovative competences are best achieved by students, as well as if there are differences in the achievement of these competences depending on the students’ gender. Our results, from a sample of 360 students in the Business Administration and Management Bachelor’s Degree at the Universitat Oberta de Catalunya, confirm the extensive development of innovation competences. Moreover, female students present a high level of preparation for innovation-oriented action. These findings have educational implications for potentiating the innovation competences and environments where females can attain innovation skills.

scholarly journals Regional Electricity Models for Community Energy in Germany: The Role of Governance Structures

2021 ◽  
Vol 13 (4) ◽  
pp. 2241
Author(s):  
Moritz Ehrtmann ◽  
Lars Holstenkamp ◽  
Timon Becker
Keyword(s):  
Renewable Energy ◽  
Business Models ◽  
Energy Transition ◽  
Governance Structures ◽  
Business Networks ◽  
Sustainable Innovation ◽  
Value Propositions ◽  
Energy Companies ◽  
Desk Research

Community energy actors play an important role in the energy transition, fostering the diffusion of sustainable innovation in the renewable energy market. Because market conditions for business models in the renewable energy sector are changing and feed-in-tariff (FiT) schemes expiring, community energy companies are in the process of innovating their business models. In recent years, several community energy companies in Germany have entered the electricity retail market selling locally generated electricity from their renewable energy installations to customers in their region. We explore the evolving regional electricity business models for community energy companies in Germany, related governance structures, and the role they play for a sustainable energy transition. In order to implement these complex business models, community energy companies cooperate with professional marketing partners (intermediaries), which are capable of taking over the tasks and obligations of electricity suppliers. Through a series of expert interviews and desk research, we identify three distinctive regional electricity business models and examine opportunities and challenges to their implementation. Results show that there are different forms of cooperation, leading to specific governance structures and creating a set of new value propositions. Through these forms of cooperation, business networks emerge, which can function as incubators for sustainable innovation and learning for the post-FiT era.

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