IE University

About: IE University is a education organization based out in Segovia, Castilla y León, Spain. It is known for research contribution in the topics: Corporate governance & Supply chain. The organization has 527 authors who have published 1709 publications receiving 64682 citations.

The “Open Innovation” paradigm: A contingency perspective

Abstract: The “open innovation” model is currently being touted as a superior path for achieving long-term success. Rather than relying on their own, limited resources for research and development in the traditional, closed invention system, firms are encouraged to share knowledge across firm boundaries to enhance their innovative potential. Yet, such sharing may also have adverse consequences by reducing the rarity of a firm’s inventions. This paper accordingly attempts to identify and analyze the parameters that determine whether open or closed types of innovation management are most appropriate for a given firm. Following a contingency perspective, we examine these determinants as various internal and external constraints (situational factors). More specifically, applying concepts related to absorptive capacity, complementary resources, game theory and others, we derive testable propositions and provide case study evidence regarding the value generating properties of open innovation.

The Impact of Management Control on Employee Motivation and Performance in the Public Sector

Abstract: This study examines the relations among various types of management control, intrinsic and extrinsic motivation, and performance in the public sector. We draw on motivation crowding theory and self-determination theory to argue that four different types of management control (i.e. personnel, cultural, action, and results control) are likely to have an influence on intrinsic motivation and/or extrinsic motivation. We test a structural equation model using survey data from 105 similar departments in the public sector. Our findings indicate that the use of personnel and cultural controls is positively associated with employees’ intrinsic motivation, and that the use of results controls is positively associated with employees’ extrinsic motivation. Moreover, both intrinsic motivation and extrinsic motivation are positively associated with performance. Taken together, these findings support the idea advocated by New Public Management proponents that results control can enhance employee motivation and performance in the public sector. However, the findings also highlight an essential nuance; in addition to results control, personnel and cultural controls are also important, as they enhance intrinsic motivation and performance. This implies that a sole focus on results control is too narrow and can lead to suboptimal levels of employee motivation and performance in the public sector.

The Effects of Management-Board Ties on IPO Performance

Abstract: This paper studies the two potentially contrasting effects on IPO pricing and post-IPO operating performance of family ties as well as social ties the top management has with board members. While family ties may solve manager-owner conflicts of interests, they may also give rise to minority-shareholder expropriation and/or private benefits of control. Similarly, social ties may either create value or lead to entrenchment and excessive managerial power. Using q-analysis to measure the strength of top manager ties to board members, we find that IPO performance is positively related to the strength of social ties, but negatively to the strength of family ties. We also find that, controlling for social ties, board independence affects both IPO pricing and post-IPO operating performance. Further, we show that the association between IPO performance and ties depends on whether they are with inside or outside directors.

Policy risk, Strategic decisions and contagion effects:Firm‐specific considerations

Abstract: Research summary: In this article, we investigate the firm-specific environment and its impact on firm strategy focusing on adverse changes in the policy environment and their effect on divestitures. We argue that experiencing a negative change in the firm-specific policy environment causes firms to reassess their exposure to policy risk and their ability to manage their policy environment, making them more likely to divest. Operationalizing negative shifts in the firm-specific policy environment through formal policy disputes between firms and governments, we find that following a dispute, firms are more likely to divest both in the country where the dispute occurs and in other countries in the same region. However, the impact of disputes on divestitures is firm specific, applying only to firms directly involved in a dispute. Managerial summary: What is the impact of change in the firm-specific environment on firm strategy? We argue that when firms directly experience a negative change in their policy environment that is specific to them, they negatively reassess their exposure to policy risk and their ability to manage their policy environment, which makes them more likely to undertake a divestiture. We analyze formal disputes between firms and governments that arise from adverse changes in policy and find that, following a dispute, firms are more likely to divest in the country where the dispute occurs and in other countries in the same region. However, the impact of disputes on divestitures is firm specific as it applies only to firms directly involved in a dispute. Copyright © 2016 John Wiley & Sons, Ltd.