Motivation Gaps and Implementation Traps: The Paradoxical and Time-Varying Effects of Family Ownership on Firm Absorptive Capacity

We present a theoretical framework of family ownership as a driver of the heterogeneity (between-firm differences) and variability (within-firm differences over time) of absorptive capacity (AC). Building on our analysis of the multiple dimensions of family ownership influence on firm behavior and the mechanisms that can shape the firm willingness and ability to acquire, assimilate, transform, and exploit external knowledge, we introduce the concepts of motivation gap and implementation gap to explain why, paradoxically, family ownership can cause both upward and downward divergences in AC. Our contingency framework identifies conditions under which the positive and negative effects of family ownership on AC are likely to prevail and adds a temporal perspective suggesting that AC varies depending on the duration of family ownership and ownership succession.     

Exploring the impact of open innovation on national systems of innovation — A theoretical analysis

This paper investigates the impact of open innovation on national systems of innovation. The open innovation concept has become widely established among scholars and practitioners. However, an overview of its impact on national innovation systems is still lacking. Given that the innovating firm is at the core of national innovation systems, a better understanding of shifting innovation strategies at the firm level is of fundamental importance to the actions of policy-makers within the national innovation systems framework. Based on the main analytical approaches of national innovation systems and the current state of open innovation research, we argue that open innovation practices have at least three critical effects on national systems of innovation: (a) they reinforce its importance; (b) they improve its effectiveness; and (c) they diversify its networks.     

The endoscopy scheduling problem: A case study with two specialised operating rooms

This research aims to build a feasible and efficient operating program for an endoscopy centre composed of two specialised operating rooms for one week, with the objective of both maximising the utilisation of the operating room and minimising the cost of overtime. First, a tactical planning model was built and solved by a column-generation-based heuristic (CGBH) procedure. Then, a daily scheduling problem is solved by the Gonzalez-Sahni algorithm in order to schedule the surgical cases assigned at the planning stage. Experimental data are randomly generated according to parameters derived from the Croix–Rousse tertiary hospital centre in Lyon, France.     

International debt shifting and multinational firms in developing economies

We present empirical evidence suggesting that the effect of the host country corporate tax rate on the debt ratio of multinational affiliates in developing economies is positive and larger than the same effect for affiliates in developed economies.     

Understanding the Death Benefit Switch Option in Universal Life Policies

Universal life policies are the most popular insurance contract design in the United States. They provide either a level death benefit paying a fixed face amount or an increasing death benefit paying a fixed benefit plus the available cash value, and both types include the option to switch from one type to the other. In this article, we investigate the fact that—unlike a switch from level to increasing—a switch from an increasing death benefit to a level death benefit requires neither fees nor evidence of insurability. To assess the impact of the death benefit switch option, we develop a model framework of an increasing universal life insurance policy embedding this option. Consideration of heterogeneity with respect to mortality via a stochastic differential mortality factor enables an investigation of adverse exercise behavior. In a comprehensive simulation analysis, we quantify the net present value of the option from the insurer's perspective using risk‐neutral valuation under stochastic interest rates assuming empirical exercise probabilities. Based on our results, we provide policy recommendations for life insurers.     

Risk management using index-linked catastrophic loss instruments

One way for insurance companies to ensure against high losses due to catastrophic events is the purchase of index-based catastrophic loss instruments. The payoff of these instruments is strongly related to the development of an index, which implies that the degree and type of dependence between the insurer’s losses and the index is crucial for their hedging effectiveness. In addition, management strategies on the asset side play an important role for risk management. In this paper, effects of investment decisions and index-based risk transfer instruments on an insurer’s solvency capital requirements are investigated with special focus on the impact of the degree and type of dependence between relevant processes.     

On the risk situation of financial conglomerates: does diversification matter?

In general, conglomeration leads to diversification of risk (the diversification benefit) and a decrease in shareholder value (the conglomerate discount). Diversification benefits in financial conglomerates are typically derived without explicitly accounting for reduced shareholder value. However, a comprehensive analysis requires competitive conditions within the conglomerate, i.e., shareholders and debt holders should receive risk-adequate returns on their investment. In this paper, we contribute to the literature on this topic by comparing the diversification effect in conglomerates with and without accounting for altered shareholder value. We derive results for a holding company, a parent-subsidiary structure, and an integrated model. In addition, we consider different types of capital and risk transfer instruments in the parent-subsidiary model, including intragroup retrocession and guarantees. We conclude that under competitive conditions, diversification does not matter to the extent frequently emphasized in the literature. The analysis contributes to the ongoing discussion on group solvency regulation and enterprise risk management, which is of relevance to insurance groups and other financial conglomerates.     

Unit (non)response in Web‐based access panel surveys: An extended planned‐behavior approach

The decision process when requested to participate in a Web survey is understood most appropriately by applying a psychological theory of human action. Consequently, this study utilized an extended version of Ajzen's theory of planned behavior to predict and explain the number of participations in a five‐wave Web‐based panel study. Based on this model, the determinants of unit nonresponse in Web‐based surveys are one's attitude toward participating in Web surveys, internalized social pressure, perceived behavioral control, and extent of moral obligation toward participating. The results indicate a satisfactory predictive power of the model. Perceived behavioral control and attitude toward participation predict the intention to participate best, followed by internalized social pressure and moral obligation. The theoretical perspective pursued proved to be valuable in terms of its predictive and explanative power as well as its practical value for Web‐based survey research. © 2005 Wiley Periodicals, Inc.     

Leveraging open innovation to improve society: past achievements and future trajectories

Open innovation (OI) is an approach which describes a purposive attempt to draw together knowledge from different contributors to develop and exploit innovation. It has become clear that OI directly benefits organisations' economic performance and resilience, but researchers, practitioners, and policy makers became also convinced that OI might be the way forward to tackle the world’s most pressing societal challenges, representing unresolved Grand Challenges, which can only be weathered by diverse sets of collaborative partners that join forces. Although anecdotal evidence points at how OI practices can be employed to achieve societal impact not only in private firms but also in public organisations, very little understanding exists ‐beyond anecdotal‐ to link OI to societal impact. This special issue has the ambition to start the discussion and establish a framework as the stepping stone to tackle this complex research gap.