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Creating and Capturing Value in Public-Private Ties: A Private Actor's Perspective
TL;DR: The authors identify the value creation and capture mechanisms embedded in these ties through a theoretical framework of two conceptual public-private structural alternatives, each associated with different value-creating capacities, rationales, and outcomes.
Abstract: Intersecting the boundaries of public and private economic activity, public-private ties carry important organizational strategy, management, and policy implications. We identify the value creation and capture mechanisms embedded in these ties through a theoretical framework of two conceptual public-private structural alternatives, each associated with different value-creating capacities, rationales, and outcomes. Two important restraints on private value capture--public partner opportunism and external stakeholder activism--arise asymmetrically under each form, carrying a critical effect on partnership outcomes.
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TL;DR: In this article, the authors used structural equation modeling to examine data collected from a sample of small and medium-sized Italian firms in the information and communication technology sector and found that past collaborative experience increases the benefits drawn from university-industry cooperation.
Abstract: This paper builds upon the knowledge-based view and organizational learning perspective. It develops and empirically tests a conceptual model to analyse the drivers and benefits of university–industry cooperation from the firm perspective. We used structural equation modeling to examine data collected from a sample of small and medium-sized Italian firms in the information and communication technology sector. We found that past collaborative experience increases the benefits drawn from university–industry cooperation. Both collaborative know-how and trust, however, play a significant mediating role on the relationship between collaborative experience and benefits. In particular, collaborative know-how is the main factor enhancing intangible benefits, such as knowledge transfer and learning, while trust is the main driver of tangible benefits, such as product and process innovations. Taken together, these findings suggest that firms should develop strategic competences to fully benefit from collaborations with universities because past collaborative experience alone is not sufficient. From the policy point of view, effort is needed to build channels and tools enhancing trust between industry and university, especially to support small firms.
63 citations
TL;DR: The authors review literature on paradoxical tensions between value co-creation and capture in interorganizational relationships (IORs) and make a re-evaluation of the notion of value capture.
Abstract: This study reviews literature on paradoxical tensions between value co-creation and capture in interorganizational relationships (IORs). The purpose of this review is to make a re-evaluation of the ...
62 citations
TL;DR: In this article, an exploratory and qualitative analysis was performed on the decision-making processes of multinational companies participating in Smart City Projects (SCPs) using a multiple-case research method, based on 21 interviews with the smart city managers of seven large multinational companies.
57 citations
TL;DR: In this article, the authors analyzed open innovation practices in public governments and highlighted the barriers and challenges that public governments face in smart city development, including lack of rules, as well as all the others tasks and responsibility, scarce integrated view of the city planning, lack of fit of administrative styles & interdepartmental coordination and communication; risk adversity; data availability; disincentives & non flexible public procurement rules; lack of resources; lackof technological capabilities.
Abstract: Open innovation practices have been found to positively affect innovation and entrepreneurship due to the complementarities and uniqueness of resources and knowledge provided by each organization. Today, this approach may be even more important in the so called “smart cities”, where different private and public stakeholders cooperate to co-design and co-develop new cutting edge products and services aimed to create shared value through entrepreneurial behaviors. However, concrete examples of smart city projects revealed that public governments often do not have the necessary capabilities as well as innovative approaches to collaborate with companies and other stakeholders’ ecosystems. So, this paper aims at analyzing (open) innovation in public governments shedding lights on the barriers and challenges that public governments face in smart city development. The study uses primary data gathered through interviews from multiple smart city stakeholders to highlight how public governments should operate in the smart city context to overcome barriers and challenges, and to favor an entrepreneurial and innovation ecosystem as well as public-private collaborations. These barriers are related to: lack of rules; as all the others tasks and responsibility; scarce integrated view of the city planning; lack of fit of administrative styles & interdepartmental coordination and communication; risk adversity; data availability; disincentives & non flexible public procurement rules; lack of resources; lack of technological capabilities. Moreover, the study provides contributions for different and interrelated streams of research, in particular developing several implications in the field of entrepreneurship and smart city.
55 citations
TL;DR: In this paper, the authors adopt a comparative institutional approach to examine the most efficient way of dealing with market failure and develop a typology of market failures based on the extent of externalities and information asymmetries and define distinct transaction costs associated with each type.
Abstract: We adopt a comparative institutional approach to examine the most efficient way of dealing with market failure. We develop a typology of market failures based on the extent of externalities and information asymmetries and define the distinct transaction costs associated with each type. We then consider the relative efficacy of alternate governance forms in dealing with these costs, arguing that enforcement costs are lowest under the state, assurance costs under collectives, and fiduciary costs under non-profits. Further, we argue that for-profits can help address problems of market failure that require either co-specialized business capabilities or the development of new solutions. These arguments combine to produce a mapping between different market failure situations and the optimal arrangement to deal with them, including various hybrid arrangements. Our study thus contributes to work in both public economics and business strategy by developing a holistic theory of how public-private interactions are best governed.
55 citations
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01 Jan 1990TL;DR: Douglass C. North as discussed by the authors developed an analytical framework for explaining the ways in which institutions and institutional change affect the performance of economies, both at a given time and over time.
Abstract: Continuing his groundbreaking analysis of economic structures, Douglass North develops an analytical framework for explaining the ways in which institutions and institutional change affect the performance of economies, both at a given time and over time. Institutions exist, he argues, due to the uncertainties involved in human interaction; they are the constraints devised to structure that interaction. Yet, institutions vary widely in their consequences for economic performance; some economies develop institutions that produce growth and development, while others develop institutions that produce stagnation. North first explores the nature of institutions and explains the role of transaction and production costs in their development. The second part of the book deals with institutional change. Institutions create the incentive structure in an economy, and organisations will be created to take advantage of the opportunities provided within a given institutional framework. North argues that the kinds of skills and knowledge fostered by the structure of an economy will shape the direction of change and gradually alter the institutional framework. He then explains how institutional development may lead to a path-dependent pattern of development. In the final part of the book, North explains the implications of this analysis for economic theory and economic history. He indicates how institutional analysis must be incorporated into neo-classical theory and explores the potential for the construction of a dynamic theory of long-term economic change. Douglass C. North is Director of the Center of Political Economy and Professor of Economics and History at Washington University in St. Louis. He is a past president of the Economic History Association and Western Economics Association and a Fellow, American Academy of Arts and Sciences. He has written over sixty articles for a variety of journals and is the author of The Rise of the Western World: A New Economic History (CUP, 1973, with R.P. Thomas) and Structure and Change in Economic History (Norton, 1981). Professor North is included in Great Economists Since Keynes edited by M. Blaug (CUP, 1988 paperback ed.)
27,080 citations
TL;DR: The population problem has no technical solution; it requires a fundamental extension in morality.
Abstract: The population problem has no technical solution; it requires a fundamental extension in morality.
22,421 citations
01 Mar 2010
18,472 citations
Book•
01 Jan 1984TL;DR: The Stakeholder Approach: 1. Managing in turbulent times 2. The stakeholder concept and strategic management 3. Strategic Management Processes: 4. Setting strategic direction 5. Formulating strategies for stakeholders 6. Implementing and monitoring stakeholder strategies 7. Conflict at the board level 8. The functional disciplines of management 9. The role of the executive as mentioned in this paper.
Abstract: Part I. The Stakeholder Approach: 1. Managing in turbulent times 2. The stakeholder concept and strategic management 3. Stakeholder management: framework and philosophy Part II. Strategic Management Processes: 4. Setting strategic direction 5. Formulating strategies for stakeholders 6. Implementing and monitoring stakeholder strategies Part III. Implications for Theory and Practice: 7. Conflict at the board level 8. The functional disciplines of management 9. The role of the executive.
17,404 citations
TL;DR: In this paper, the authors consider the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning and examine some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space.
Abstract: This paper considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. It examines some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space, and the effects of ecological interaction. Two general situations involving the development and use of knowledge in organizations are modeled. The first is the case of mutual learning between members of an organization and an organizational code. The second is the case of learning and competitive advantage in competition for primacy. The paper develops an argument that adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run. The possibility that certain common organizational practices ameliorate that tendency is assessed.
16,377 citations