CEO turnover and the new leader propensity to open innovation

2018 ◽  
Vol 56 (6) ◽  
pp. 1348-1364 ◽  
Author(s):  
Anna Maria Biscotti ◽  
Elisabetta Mafrolla ◽  
Manlio Del Giudice ◽  
Eugenio D’Amico
Keyword(s):  
Social Identity ◽  
Least Squares ◽  
Empirical Analysis ◽  
Open Innovation ◽  
Resource Dependence ◽  
Ceo Turnover ◽  
Content Type ◽  
Innovation Projects ◽  
The Empirical Analysis ◽  
Agency Resource

PurposeIn an increasingly turbulent and competitive environment, open innovation could be critical for a firm’s success, favoring organizational flexibility and accelerating innovation processes. However, sharing innovation projects with external partners often requires changes in traditional organizational behavior and visions of CEOs. The purpose of this paper is to theorize and empirically verify how the CEO turnover and some socially relevant characteristics of the old and the new CEO may impact firms’ propensity toward open innovation under an integrated agency-resource dependence view and social identity perspective.Design/methodology/approachThe empirical analysis was carried out on 264 companies drawn from 16 developed European markets included in the S&P Europe 350 Dow Jones index over the years 2006-2015. To test the predictions, the authors adopted regression analysis by employing the panel two-stages least squares model and the ordinary least squares econometric model.FindingsConsistently with the predictions, the authors found that CEO turnover stimulates open innovation. Particularly, the results suggest that the organizational identity rationale may motivate a divergent propensity between insider and outsider new CEOs, with outsiders more prone to open innovation. The higher tendency of new outsider CEOs to undertake innovation projects jointly with external organizations prevails also within firms that experienced a long tenure of the former CEO, thereby suggesting that a new outsider CEO appears able to renovate corporate strategic directions also in highly orthodox organizational cultures.Originality/valueTo the best of the authors’ knowledge, this is the first study that theorizes why CEO turnover might impact the propensity of the firm toward open innovation. The authors use an integrated agency-resource dependence perspective, and the results from the empirical analysis mostly support the predictions. Moreover, the authors adopt the social identity theory to show that the organizational identification of the CEO matters in the decision of engaging in open innovation.

scholarly journals Open innovation: on the influence of internal and external collaboration on degree of newness

2017 ◽  
Vol 23 (6) ◽  
pp. 1129-1143 ◽  
Author(s):  
Astrid Heidemann Lassen ◽  
Bjørge Timenes Laugen
Keyword(s):  
Open Innovation ◽  
Design Methodology ◽  
Radical Innovation ◽  
Data Set ◽  
High Importance ◽  
Content Type ◽  
Innovation Projects ◽  
Innovation Output ◽  
External Collaboration ◽  
The Empirical Analysis

Purpose The purpose of this paper is to test the effect of internal and external collaboration on the degree of newness (incremental/radical) in innovation projects. This adds to the understanding of the particular patterns of open innovation (OI) and what characterizes the innovation emerging through this approach. Design/methodology/approach Tests are performed on the effect of internal and external collaboration on the degree of newness (incremental/radical) in innovation projects. This adds to the understanding of the particular patterns of OI and what characterizes the innovation emerging through this approach. The empirical analysis is based on a data set including responses from 512 Danish engineers. Findings The results show that external collaboration has significantly different effects on the degree of newness depending on the type of external partners involved, and they also show that radical innovation output is positively related to involving the R&D department (internal) and universities (external involvement) and negatively related to involving suppliers. Originality/value The results provide a more detailed understanding of how different OI patterns affect the development of incremental vs radical innovation in existing organizations. In particular, three findings add new insights into how OI affects innovation to reach the highest degree of newness: high importance of collaboration with external partners with distinct interests and skills; low reliance on existing customers and suppliers for the development of radical innovation; and narrow and focused internal involvement rather than broad internal involvement.

scholarly journals Impact of the volatility of resource revenue on non-resource revenue volatility

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Empirical Analysis ◽  
Economic Diversification ◽  
Data Set ◽  
Content Type ◽  
Generalized Methods Of Moments ◽  
Public Revenue ◽  
Revenue Volatility ◽  
The Stability ◽  
Methods Of Moments ◽  
The Empirical Analysis

PurposeThis paper investigates the effect of the volatility of resource revenue on the volatility of non-resource revenue.Design/methodology/approachThe empirical analysis has utilized an unbalanced panel data set comprising 54 countries over the period 1980–2015. The two-step system generalized methods of moments (GMM) is the main economic approach used to carry out the empirical analysis.FindingsResults show that resource revenue volatility generates lower non-resource revenue volatility only when the share of resource revenue in total public revenue is lower than 18%. Otherwise, higher resource revenue volatility would result in a rise in non-resource revenue volatility.Research limitations/implicationsIn light of the adverse effect of volatility of non-resource revenue on public spending, and hence on economic growth and development prospects, countries whose total public revenue is highly dependent on resource revenue should adopt appropriate policies to ensure the rise in non-resource revenue, as well as the stability of the latter.Practical implicationsEconomic diversification in resource-rich countries (particularly in developing countries among them) could contribute to reducing the dependence of economies on natural resources, and hence the dependence of public revenue on resource revenue. Therefore, policies in favour of economic diversification would contribute to stabilizing non-resource revenue, which is essential for financing development needs.Originality/valueTo the best of our knowledge, this topic has not been addressed in the literature.

Risk connectedness of selected CESEE stock markets: a spillover index approach

2019 ◽  
Vol 10 (4) ◽  
pp. 447-472 ◽  
Author(s):  
Tihana Škrinjarić ◽  
Boško Šego
Keyword(s):  
Empirical Analysis ◽  
Stock Markets ◽  
Investment Strategies ◽  
Content Type ◽  
Index Approach ◽  
Dynamic Portfolio ◽  
International Investors ◽  
Developed Stock Markets ◽  
The Empirical Analysis ◽  
Over Time

Purpose The purpose of this paper is to empirically evaluate risk spillovers between selected CESEE (Central, Eastern and South-Eastern Europe) stock markets in order to evaluate the possibilities of an international diversification of a portfolio. Design/methodology/approach The VAR model and the Diebold and Yilmaz (2009, 2012) spillover index are used, with rolling indices estimation over time in order to observe dynamics, which is important for investment strategies. Data are monthly and include selected CESEE stock market indices which were available to the researcher. Findings The empirical analysis for the period of January 2012–June 2019 indicates that some country risks were the net emitter of shocks in the system (Slovenia and Czech Republic), whereas some were net receivers (Croatia and Ukraine). The results are robust with respect to changing the length of the rolling window analysis, which means that investors could utilize such an approach in a dynamic portfolio selection. Research limitations/implications Observing only selected markets due to data (un)availability. Practical implications The paper shows how international investors can utilize the aforementioned methodology in order to make a more detailed analysis of the dynamics of stock markets connectedness so that international portfolios can be rebalanced according to the results and investors’ preferences. Originality/value This is the first such research which focuses on CESEE countries, since existing research is focused on more developed stock markets. Moreover, the empirical analysis extends to commenting the pairwise net indices over time, which is important for the dynamic portfolio rebalancing over time.

Multidimensional performance evaluation styles: budget rigidity and discretionary adjustments

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Keita Masuya ◽  
Eisuke Yoshida
Keyword(s):  
Performance Evaluation ◽  
Empirical Analysis ◽  
Environmental Uncertainty ◽  
Two Dimensions ◽  
Performance Evaluations ◽  
Performance Criteria ◽  
Content Type ◽  
Ex Post ◽  
Performance Effects ◽  
The Empirical Analysis

Purpose This study aims to reconceptualize performance evaluation styles and reveal their performance effects. Design/methodology/approach Based on a literature review, this study conceptualizes performance evaluation styles on two dimensions: priority of budgetary targets when setting performance criteria and use of accounting information for ex-post performance evaluation. This study discusses two concepts – budget rigidity and discretionary adjustments – to explain these two dimensions, and their optimal combination is then investigated by considering environmental uncertainty. The empirical analysis uses survey data from Japanese firms. Findings The results indicate that suitable combinations of budget rigidity and discretionary adjustments differ depending on environmental uncertainty. As expected, a combination of lower budget rigidity and higher discretionary adjustments is optimal in an uncertain environment. Contrary to expectations, a combination of higher budget rigidity and higher discretionary adjustments is optimal in a stable environment. Moreover, higher discretionary adjustments complement budgetary targets’ motivational effects, regardless of environmental uncertainty. Originality/value This study’s theoretical and empirical analysis suggests that it is difficult to understand the performance implications of performance evaluation styles without recognizing their multidimensionality and interdependencies. Moreover, the results demonstrate that discretionary adjustments in budget-based performance evaluations seem to act rationally in practice.

Discount models in intertemporal choice: an empirical analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Isabel María Parra Oller ◽  
Salvador Cruz Rambaud ◽  
María del Carmen Valls Martínez
Keyword(s):  
Empirical Analysis ◽  
Intertemporal Choice ◽  
Hyperbolic Discounting ◽  
Least Squares Regression ◽  
Discount Function ◽  
Content Type ◽  
The Individual ◽  
Gains And Losses ◽  
First Time ◽  
The Empirical Analysis

PurposeThe main purpose of this paper is to determine the discount function which better fits the individuals' preferences through the empirical analysis of the different functions used in the field of intertemporal choice.Design/methodology/approachAfter an in-depth revision of the existing literature and unlike most studies which only focus on exponential and hyperbolic discounting, this manuscript compares the adjustment of data to six different discount functions. To do this, the analysis is based on the usual statistical methods, and the non-linear least squares regression, through the algorithm of Gauss-Newton, in order to estimate the models' parameters; finally, the AICc method is used to compare the significance of the six proposed models.FindingsThis paper shows that the so-called q-exponential function deformed by the amount is the model which better explains the individuals' preferences on both delayed gains and losses. To the extent of the authors' knowledge, this is the first time that a function different from the general hyperbola fits better to the individuals' preferences.Originality/valueThis paper contributes to the search of an alternative model able to explain the individual behavior in a more realistic way.

Entrepreneurial activities and models of advanced European science and technology universities

2019 ◽  
Vol 57 (12) ◽  
pp. 3447-3472 ◽  
Author(s):  
Riccardo Ricci ◽  
Alessandra Colombelli ◽  
Emilio Paolucci
Keyword(s):  
Economic Development ◽  
Best Practices ◽  
Empirical Analysis ◽  
Local Economic Development ◽  
Entrepreneurial University ◽  
Primary Data ◽  
Content Type ◽  
Qualitative Approaches ◽  
Entrepreneurial Activities ◽  
The Empirical Analysis

Purpose The purpose of this paper is threefold. It is aimed at identifying: a broad set of entrepreneurial activities; different university entrepreneurial models; and the entrepreneurial best practices of advanced European S&T universities. Design/methodology/approach The paper has adopted a mixed-method design. By mainly relying on primary data, collected through questionnaires and interviews with those in charge of the technology transfer offices of 20 universities belonging to the CESAER association, the empirical analysis has combined both quantitative and qualitative approaches. Findings The results of the empirical analysis have allowed five entrepreneurial activities to be identified. Three main entrepreneurial university models, based on different configurations of entrepreneurial activities, on different organisational and ecosystem characteristics and on a set of entrepreneurial best practices: an “engage” model, which focusses on local economic development; a “formal” model, which focusses on the financial advantage of universities and their faculties; and a “comprehensive” model, which focusses on the local economic development and the financial advantage of universities and their faculties. Research limitations/implications The first limitation of the present paper concerns the limited number of sampled universities. Moreover, this paper is limited to the European area. Future research could enlarge this study by increasing the number of universities and by focusing on other geographical areas. Furthermore, the paper does not assess the effectiveness of the identified entrepreneurial models in supporting entrepreneurship and local economic development. Further research could extend the present analysis and fill these gaps. Originality/value The paper contributes to the extant literature under many respects. First, it relies on original primary data. Moreover, it extends previous literature by encompassing the conventional distinction between formal and informal entrepreneurial activities. It also contributes to the emerging literature on entrepreneurial university models and the strategic approaches by identifying the different models of entrepreneurial universities in the European setting of S&T universities focusing on the role played by organisational and regional factors in affecting the adoption of a specific model by universities.

Stakeholder management in open innovation projects: a multiple case study analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrea Urbinati ◽  
Paolo Landoni ◽  
Francesca Cococcioni ◽  
Ludovico De Giudici
Keyword(s):  
Project Management ◽  
Open Innovation ◽  
Stakeholder Management ◽  
Multiple Stakeholders ◽  
Content Type ◽  
Innovation Research ◽  
Science And Technology Parks ◽  
Innovation Activities ◽  
Innovation Projects ◽  
Resources And Capabilities

PurposeIn recent years, companies have started to open up their Research and Development (R&D) and their innovation activities to external partners. They aim to access new resources and capabilities and to gain shorter time-to-markets. However, as several studies have shown, it can be difficult to manage collaborative (open) innovation projects to achieve desired outcomes. Starting from this premise, the paper investigates how project stakeholder management is different in open innovation projects from traditional R&D projects.Design/methodology/approachThe study has a qualitative nature and is based on the interpretative paradigm with an inductive orientation. The paper leverages interviews with experts involved in open innovation projects conducted in two Science and Technology Parks between Sweden and Italy.FindingsThe analysis shows how companies manage multiple stakeholders in open innovation projects and the peculiarities project stakeholder management faces in these projects when compared with traditional R&D projects. The paper shows how the relationships with external partners in open innovation projects are regulated by informal identification and analysis frameworks, which reduce the tensions deriving from these multiple collaborations. In addition, it underlines a set of good practices, and project management aspects for developing effective absorptive capacity of know-how, resources, and capabilities from external stakeholders in open innovation projects.Originality/valueThe paper analyzes for the first time how companies manage multiple stakeholders in open innovation projects in a different way from traditional R&D projects. Furthermore, the paper introduces a shift in the focus of the analysis: it focuses on the level of the project conducted through multiple collaborations instead of on the level of the firms involved in the project. Finally, the paper integrates open innovation research with project management research.

CEO dominance and firm innovation effort

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicolette Chatelier Prugsamatz
Keyword(s):  
Least Squares ◽  
Negative Relationship ◽  
Chief Executive ◽  
Ordinary Least Squares ◽  
Firm Innovation ◽  
Content Type ◽  
Ceo Incentives ◽  
Innovation Projects ◽  
The Right

PurposeThe purpose of this paper is to investigate whether innovation effort is lower for firms exhibiting signs of higher chief executive officer (CEO) dominance and whether such CEOs can be incentivized to pursue risky ventures such as innovation projects in line with shareholder's interests that are geared toward the long-term growth of the firm.Design/methodology/approachThe paper utilizes panel data of US publicly listed companies (2007–2016) to address the influence of CEO dominance on firm innovation effort and the moderating effects of incentives in this relationship through ordinary least squares (OLS) estimations. A two-stage least squares (2SLS) technique is also employed to address possible endogeneity. As a robustness check, further analysis is conducted utilizing an alternative proxy for CEO incentive as well as Tobit analysis (with panel-level random effects).FindingsResults from both OLS and Tobit estimations offer two key findings. First, there is a significantly negative relationship between CEO pay slice and firm research and development (R&D) intensity. Second, the interaction effect of CEO incentives and CEO dominance is significant and positive.Research limitations/implicationsWhen provided with the right incentives, such as those that reward long-term performance, dominant CEOs can be incentivized to go after risky ventures like innovation projects that are crucial to promoting the long-term growth of the firm.Originality/valueThis paper utilizes R&D instead of patent outputs as proxies for innovation where the former enables studying R&D efforts for more recent periods compared to prior studies that utilize patent data.

scholarly journals The relationship between small and medium-sized social enterprises and banks

2019 ◽  
Vol 68 (2) ◽  
pp. 389-406 ◽  
Author(s):  
Irene Bengo ◽  
Marika Arena
Keyword(s):  
Conceptual Framework ◽  
Empirical Analysis ◽  
Financial Institution ◽  
Social Enterprises ◽  
Current Debate ◽  
Content Type ◽  
Credit Availability ◽  
The Relationship ◽  
The Empirical Analysis ◽  
Lending Technologies

Purpose The purpose of this paper is to perform a critical analysis of the relationship between small- and medium-sized social enterprises (SMSEs) and banks. Based on the conceptual framework for the analysis of SME’s credit availability developed by Berger and Udell (2006), this study aims to contribute to the current debate in two ways: first, outlining the characteristics of the lending technologies currently used by banks and financial institutions to evaluate SMSEs when they apply for credit; and second, discussing, based on the results of the empirical analysis, the coherence of these systems from the social ecosystem perspective and identifying areas for possible improvement. Design/methodology/approach The paper develops a conceptual framework based on the model proposed by Berger and Udell (2006), which defines the characteristics of lending technologies that banks use to evaluate SMEs, and applies it to the case of SMSEs. To study the interplay of these lending technologies, the empirical analysis is based on a case study of five Italian banks. Data are collected from multiple sources to capture key dimensions of the problems analyzed. Findings The paper provides empirical insight about the relationship between SMSEs and banks. The Italian case shows that the current lending infrastructure must be revised to support SMSE credit availability, and government policies affect the national financial institution structure. The relationship between SMSEs and Italian banks remains underdeveloped. Social implications The research supports the scaling up of social business. Originality/value This paper fulfills an identified need to study how social enterprises credit access can be enabled.

Public goods production and value creation in wineries: a structural equation modelling

2020 ◽  
Vol 122 (5) ◽  
pp. 1705-1724 ◽  
Author(s):  
Giuseppe Marotta ◽  
Concetta Nazzaro
Keyword(s):  
Public Goods ◽  
Empirical Analysis ◽  
Value Creation ◽  
Structural Equation ◽  
Policy Instruments ◽  
Agricultural Economics ◽  
Policy Implications ◽  
Equation Modeling ◽  
Content Type ◽  
The Empirical Analysis

PurposeThe aim of the study is to analyse the value creation processes in multifunctional wineries. Specifically, the paper poses the following research questions: can the creation of public goods (i.e. multifunctionality) open up new paths of value creation for wineries? And if so, can multifunctionality be only compensated through policy instruments? Or, is there a form of market compensation?Design/methodology/approachAn empirical analysis was carried out on selected wineries that sell directly. The study implemented the “value portfolio” model that identifies specific variables, both internal and external to the farm, which contribute to the value creation. The methodology adopted is a structural equation modeling (SEM) approach that offers a theoretical basis for developing an understanding of the relationships between group of variables.FindingsThe empirical analysis confirms the assumptions developed. Indeed, the localized public goods generated by multifunctional farms can benefit from compensation on the market through the direct sale of products and services.Originality/valueThe study’s findings are quite innovative in the field of agricultural economics and open the way for interesting policy implications.

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