After the Honeymoon: How Trust Issues Affect Employee Reactions to Takeovers

Despite high failure rates, Mergers and Acquisitions continue to be a popular strategy for achieving corporate growth and diversification. In this new Working Paper, Professors Stahl and Pablo, and Research Associate Chei Hwee Chua, suggest that human factors – psychological, cultural and social – play a more important role in post-integration success than previously thought.

Why Go it Alone? How Alliances Serve to Accelerate Innovation

It used to be, if you had a good idea, you kept it within the confines of your own company. Today, the fast pace of business development is creating a whole new wave of collaboration, across borders and industry boundaries. In this new Working Paper, Professor Peter Williamson and Sarah Meegan explore alliances.

East Meets West: A Look at China’s Venture Capital Industry

China’s venture capital industry is a recent phenomenon emerging from decades of government-led technology policy. This working paper traces the roots of the existing system of funding and compare the new types of VC structures that have come on the scene to finance and nurture technology-based firms.

Beyond the Big Idea: Performance Predictors in Entrepreneurial Firms

When we look at entrepreneurial companies we often focus on the obvious: what they do or sell. “What a great idea”, we say about the people who thought up eBay, “Why didn’t I think of that”?, we lament, while watching scooters fly off the shelves. But coming up with a bright idea is just part of the picture, say Professors Christoph Zott and … [ Read more ]

Would Have, Could Have, Should Have: When Choosing Feels Like Losing

With all the choices consumers are given, it stands to reason that we should feel pleased with our decision s if we have given them careful thought. But often we feel a sense of loss for the options that got away. Professors Ziv Carmon, Klaus Wertenbroch, and Marcel Zeelenberg look into this phenomenon and discover that it might not just be our natural … [ Read more ]

Too Many Choices? Research Directions in Consumer Control and Empowerment

Today, consumers exert fuller control over their choices than ever before, a development heralded as greatly empowering for the consumer. But is it possible fro them to have too much control? INSEAD Professors Carmon, Chattopadhyay, Wertenbroch and colleagues pose this and other questions, and describe a set of research directions for understanding the consequences of increased consumer control and the factors that shape … [ Read more ]

Eye Spy: Visual attention Versus Memory at POP

What draws you towards a particular make of footwear displayed on a store wall? What will be the sales impact of a new shelf display? Where in a shelf should you put your brand and how many facings should it have? To understand consumer decisions at the point of purchase or to measure the performance of POP marketing, Professor Pierre Chandon shows … [ Read more ]

Beneath a Canopy of Options: Strategy in the Shade of Decision Trees

Growth is essential for a business’ success, and many previous studies have shown that research and development is the key source of internal growth in the long run. But the question is which projects to fund and which ones to stop – which ones are promising and which ones too risky?

To Pay or Not to Pay: Measuring Consumer Willingness to Pay in FMCG Markets

Marketers are naturally interested in how much consumers are willing to pay for their goods, and a number of techniques exist to help them do this. Professors Klaus Wertenbroch and Bernd Skiera examine some ways in which market researchers can establish the level of consumers’ Willingness To Pay (WTP) in fast moving consumer goods (FMCG) markets.

Matching Demand and Supply: Boosting Profits from Remanufacturing

Many firms believe that active concern for the environment is not their business, because the extra costs impact the bottom line. But Professors Daniel Guide and Luk Van Wassenhove show how the re-use of returned products can actually add value for shareholders. Discover their framework for analysing the profitability of re-use activities in this recent working paper.

Internet Strategy Traps: Profitable Growth Gaps

Newcomer and veteran companies alike are using the Internet to pursue some dangerous paths to profitable growth. As a consequence, the gulf between the pursuit and achievement of profitable growth is widening. Professors Subramanian Rangan and Ron Adner help managers distinguish between what is technically feasible and what is strategically desirable, explain the full implications of seven widely held strategy misconceptions, and offer decision frameworks … [ Read more ]

Rolodex to the Rescue! Social Capital & Corporate Responses to Market Shocks

Who you know and how you’re connected to them may be vital to your firm’s success when times are tough or turbulent. In this recent working paper, Professors Martin Gargiulo and Andrej Rus consider the effect of social networks on individual and firm performance after external market shocks. They formulate a new model of social capital, then test it on data drawn from … [ Read more ]

Emotional Balancing of Organizational Continuity and Radical Change: The Contribution of Middle Managers

Based on a three-year field study of a large firm’s attempt at radical change, Professor Quy Nguyen Huy shows how middle managers displayed two main emotion-management patterns that facilitated beneficial adaptation of change – emotionally committing to change projects and attending to recipients’ emotions. The use of both patters, although seemingly opposite, struck an effective process of emotional balancing and facilitated organizational adaptation. … [ Read more ]

A Typology of Plants in Global Manufacturing Networks

In today’s complex global manufacturing environment, managers face tough questions. What’s the best way to implement integrative strategies for plant networks? How is know-how created and transferred? Drawing on in-depth case studies, Professors Ann Vereecke, Roland Van Dierdonck and Arnoud De Meyer create a typology of plants in global manufacturing networks, offering both technical analysis and practical advice.

Globalization and Wage Premia: Reconciliating Facts and Theory

Since the 1980s, wage inequality has increased in many OECD (Organization for Economic Cooperation and Development) countries, with a shift in demand towards skilled labor. Most economists do not attribute this change to international trade, but Professor Vanessa Strauss-Kahn argues that it’s important to examine the problem from a different angle. Here, she analyzes the effect of globalization on inequality and develops a general equilibrium … [ Read more ]

A New Era? Internationalization of East Asia Companies

Relative latecomers to internationalization, East Asian companies are now facing unique pressures and opportunities as they go global. Professors Arnoud De Meyer and Peter Williamson examine data drawn from more than 400 publicly-listed East Asian firms, focusing on foreign sales and investment between 1995 and 1999. Their analysis yields both theoretical insights and a practical model for achieving successful internationalization.

Synergies in Horizontal Acquisitions: Benefits and Risk to Long-Term Performance

Cost or revenue synergies are meant to justify most acquisitions within the same industry. However, the greater part of them fails to achieve set objectives. Through a major research study, Professor Laurence Capron explores the drivers of acquisition performance.

Going With Your Gut: Affective Cues in Consumer Judgment and Choice

A BMW is the ultimate driving machine and Pontiac builds excitement; Louis Vuitton bags signal who you are or want to be; Armani suits make you feel like a “million bucks.” When making buying decisions, your feelings are often more engaged than you realize, and sometimes, you go with your “gut feel,” even in the face of credible information about better features provided by the … [ Read more ]

He Who Is Always Right: Customer Relationship Management

Not all customers want a relationship. Of those who do, not all want the same depth. And even among those who seek deep, emotional relationships, different customers will respond to varied degrees of their interaction. Some customers might be thrilled if the sales person remembers their name, but others might desire an effusive, personalized relationship with the seller. Can a firm comprehend how its customers … [ Read more ]

A New Framework: For Manufacturing Management Quality

All too often, say Professors Christoph Loch, Arnoud De Meyer, Ludo Van der Heyden and Luk Van Wassenhove, firms implement quality management efforts as isolated programs, which doesn’t translate into a competitive edge. In this working paper, however, the authors offer a systematic framework for manufacturing management quality, one which managers can translate directly into action and advantage.