Open innovation practices in SMEs and large enterprises

Few studies on open innovation (OI) address OI practices in small and medium-sized enterprises (SMEs) and how their use of OI and the resulting benefits differ from those of large enterprises. The lack of resources in SMEs to engage in looking outward is said to be a barrier to OI, but at the same time this shortage is cited as a motive for looking beyond organisational boundaries for technological knowledge. We investigate how OI dimensions impact the innovative performance of SMEs in comparison to large companies. The key finding is that the effects of OI practices in SMEs often differ from those in large firms. SMEs are more effective in using different OI practices simultaneously when they introduce new products on the market, whereas this is less the case for large firms. Turnover from new products in SMEs is driven by intellectual property protection mechanisms, while large firms in this case benefit more from their search strategies.     

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.     

The relationship between enterprise risk management,value and firm characteristics based on the literature

In the wake of the increasing importance of comprehensive enterprise-wide risk management approaches (ERM) in the last years, e.?g. due to stronger regulatory requirements, the field of research on ERM has attracted a considerable amount of attention in the literature. The aim of this paper is to provide a literature-based analysis of the theoretical arguments and empirical findings regarding firm characteristics in the context of measuring the impact of ERM on firm value. Due to the endogeneity problem, we focus on the direct impact as well as on the indirect impact (via ERM) of firm characteristics on firm value.     

MANAGEMENT CONTROL SYSTEMS IN FAMILY FIRMS: A REVIEW OF THE LITERATURE AND DIRECTIONS FOR THE FUTURE

Family firms play a significant role in the global economy. Although family firm literature has devoted much time and effort to investigating topics concerning corporate governance, leadership, ownership and succession, accounting issues have received relatively scant attention. In this paper, we assemble and critically review extant literature on the choice of management controls. This is an essential topic for firms as management control systems (MCS) are used to make sure subordinates behave in function of the goals of the firm. Family firms, however, have distinct features, such as differences in governance structures and goals, which can have a significant impact on whether and how MCS are used. We conclude this review paper by providing avenues for future research that can advance our understanding of both the determinants and the outcomes of the choice of MCS.     

The Euro Area in Between Crises? Considerations on Fiscal Policies and Rules

Intereconomics - Credibility of the revised fiscal rules will be crucial so that vulnerable countries can benefit from confidence effects. National ownership will be key in that respect and can be...     

When the Former CEO Stays on Board: The Role of the Predecessor’s Board Retention for Product Innovation in Family Firms

Understanding product innovation in family firms is an important research endeavor given the economic predominance of those firms, their idiosyncrasies, and the importance of constant renewal for those firms to achieve transgenerational survival. Recently, family firm research has highlighted the role of next-generation chief executive officers (CEOs; i.e., successors) who are often seen as drivers for innovating a family firm’s products. However, prior research has typically neglected that predecessors, who are often portrayed as less willing to introduce product innovation, frequently remain involved postsuccession through occupying board positions and thus still substantially influence the decision-making processes and outcomes of family firms, such as product innovation. As a result, our understanding of the role of predecessors and their postsuccession involvement in family firms’ product innovation remains unclear. Building on stakeholder salience theory and on insights from the literature on innovation and succession in family firms, we develop hypotheses about how and under which conditions the predecessor’s board retention affects product innovation in family firms after succession. Building on more than 200 family firm CEO succession cases in small- and medium-sized, privately owned family firms, our results reveal that the predecessor’s board retention negatively affects product innovation. This negative effect is strengthened with increasing involvement of the predecessor in the successor selection process, and it is offset in the case of family succession. Our findings contribute to the emerging stream of research on family firm succession and product innovation and provide important implications for practice.     

Response measurement and optimization of direct mailings

Beginning with 1995, we discuss different studies that deal with response measurement and optimization of direct mailings. Most of these studies analyze data sets from mail order companies or charities. We classify various dependent and predictor variables and??w.r.t. the latter distinguish static and dynamic effects. Response models are divided into parametric and flexible models. Besides, we analyze important modeling aspects, i.e., latent heterogeneity and endogeneity. Optimization methods are presented according to whether they refer to static or dynamic objectives. Based on these modeling aspects we evaluate the different studies. Considering various studies of model evaluation it becomes evident that logit models frequently constitute a good choice. However, Bayesian neural nets and Tobit models turn out to be good alternatives. As predictor effects are concerned results vary. Authors do not completely agree on which variables are the most important. Furthermore, signs and significances of predictors vary across studies. The majority of studies neglect latent heterogeneity and endogeneity. Finally, results show that there are still plenty of interesting research possibilities, such as a comprehensive evaluation of models or new specifications of (mailing) variables.     

Performance and Risks of Open‐End Life Settlement Funds

In this article, we comprehensively analyze open‐end funds dedicated to investing in U.S. senior life settlements. We begin by explaining their business model and the roles of institutions involved in the transactions of such funds. Next, we conduct the first empirical analysis of life settlement fund return distributions as well as a performance measurement, including a comparison to other asset classes. Since the funds contained in our data set cover a large fraction of this relatively young segment of the capital markets, representative conclusions can be derived. Even though the empirical results suggest that life settlement funds offer attractive returns paired with low volatility and are virtually uncorrelated with other asset classes, we find latent risk factors such as liquidity, longevity, and valuation risks. Since these risks did generally not materialize in the past and are hence largely not reflected by the historical data, they cannot be captured by classical performance measures. Thus, caution is advised in order not to overestimate the performance of this asset class.