Managerial incentives and corporate control auctions

An analysis of the sequence of bidding in corporate control contests involving white knights reveals a category of white knights termed as ‘delayed bid’ white knights who make their bid after two consecutive hostile bids. The ‘immediate bid’ white knights make their bid in relative haste after the first hostile bid. Overpayments by white knights are much larger for the ‘immediate bid’ white knights. An analysis of the respective compensation packages shows that the managers of the ‘immediate bid’ white knights have a lower proportion of their income linked to stock value (relative to their annual cash income) compared to ‘delayed bid’ white knights and hostile bidders.     

Business model innovation in corporate entrepreneurship: exploratory insights from corporate accelerators

Corporate accelerators are a rapidly growing entrepreneurial phenomenon occurring in different business contexts and business models within corporate entrepreneurship. Corporate accelerators are considered as an innovation fostering approach within new ventures provided by start-ups. The aim of the paper is twofold: firstly, to explore the motives behind corporations’ engagement with start-ups in launching corporate accelerators, and secondly, to identify the corporate benefits and challenges of this business model innovation. The research design is based on a qualitative interpretative approach exploiting a triangulation of methods by using in-depth interviews (IDI) with corporate managers involved in development of corporate accelerators as well as a focus group interview (FGI) with industry experts. In addition, secondary data were applied to strengthen the exploratory research. The study demonstrates that a wide range of benefits stem from the accelerator activities which can ultimately can initiate changes in large companies. Our research expands on prior findings and suggests that corporate accelerators are driven by internal and external push and pull motives. The study contributes to expanding the scope of corporate entrepreneurship research in regard to the challenges and benefits of corporate accelerators. It provides evidence that corporate accelerators are a source of innovation that can be used to foster entrepreneurial-market logic and entrepreneurial learning.

     

Network legitimacy diffusion: a model for corporate entrepreneurship

International corporate entrepreneurship increasingly requires broader internal and external networks and legitimacy seeking in areas where the corporation and the entrepreneur are not well known. In this article, the important factors that influence the degree of legitimacy granted to corporate entrepreneurs are proposed and discussed. Specifically, we identify three primary levels of legitimacy: pragmatic legitimacy, normative legitimacy, and structural legitimacy. A model is proposed that suggests that organizations move through these levels of legitimacy resulting in differing brokering behaviors for network building. In addition, we integrate this effort into a global perspective by focusing on corporate entrepreneurs who seek to engage in international efforts. Implications for future research are provided.     

Enhancing managerial incentives and value creation: Evidence from corporate spinoffs

We study corporate spinoffs with changes in CEO compensation to examine how spinoffs affect managerial incentive compensation and whether the changes in managerial compensation can explain the value enhancement and operating performance improvements that occur following spinoffs. Analyzing a sample of 124 non-taxable spinoffs during 1990–1997, we find that changes in incentive compensation are a significant motive for spinoffs. Changes in managerial incentives alone are consistent with the post-spinoff changes in operating performance, while changes in business focus are not. Spinoffs that are not accompanied by enhanced pay-performance relationship do not improve operating performance even with increased business focus. (JELG34, J33)     

The legitimacy of corporate entrepreneurship: a structured literature review

Management Review Quarterly - Corporate entrepreneurship (CE) is essential for today’s firms and currently a topic of considerable interest within the business community. Although the...     

创投企业财务管理探讨

科技是第一生产力,由科技直接带动的知识经济将成为本世纪经济发展的主流,作为知识经济的支柱产业,以高新技术为代表的创投产业正以前所未有的速度发展,但与此同时,创投企业的财务管理工作却相对落后,不能为创投企业的投融资作出科学的决策。研究目的在于充分认识创投企业财务管理工作特殊性,并结合其高收益和高风险的财务经营特征,研究创投企业如何在财务管理工作的各个阶段做好财务决策。     

Five decades of corporate entrepreneurship research: measuring and mapping the field

International Entrepreneurship and Management Journal - Research on corporate entrepreneurship—venturing activities by established corporations—has received increasing scholarly...     

CEO ownership, corporate control, and bank performance

This study examines the relation between CEO ownership and bank performance. In contrast to Pi and Timme (1993), we find that, when economic measures of performance are used, the relation between ownership and the performance of commerical banks is nonlinear. Additionally, in contrast to previous studies, we find the question of whether or not the CEO also holds the title of chairman of the board has an insignificant impact on bank performance. We conclude that, in commercial banks, management entrenchment may offset the effects predicted by Jensen and Meckling's (1976) convergence-of-interest hypothesis.     

Environmental influences on corporate entrepreneurship: executive perspectives on the internet

This paper focuses on the likelihood of firms adopting corporate entrepreneurship in response to the challenges and opportunities presented by a change in their business environment shaped by the growth of the Internet. We further examined if firms are willing to modify their existing systems in response to such a change. We also investigated the paths or modes of entrepreneurship that firms would adopt when they perceive being entrepreneurial to be a viable response in light of a specific change in their business environment. Finally, we identified the impediments that firms may need to overcome when adopting corporate entrepreneurship. Results based on the data from senior executives lend support to our hypotheses. Managerial implications of the results are discussed.     

CEO compensation, shareholder rights, and corporate governance: An empirical investigation

We investigate whether CEO compensation is influenced by the strength of shareholder rights. Our evidence reveals that CEOs of firms where shareholder rights are weak obtain more favorable compensation. It is also found that higher CEO pay is associated with a higher degree of potential managerial entrenchment. Additionally, CEOs of firms with governance provisions that offer them protection from takeovers enjoy more generous pay. We also examine the change in CEO compensation relative to the change in shareholders' wealth. The evidence shows that when there is an increase in shareholders' wealth, the CEO is able to obtain higher incremental compensation when shareholder rights are weak. On the contrary, when shareholders' wealth falls, there is no corresponding decline in CEO compensation when shareholder rights are weak. Given the empirical evidence, we argue that CEO compensation practices reflect rent expropriation rather than optimal contracting.     

Conditioning factors for corporate entrepreneurship: an in(ex)ternal approach

In the last years, the business creation and management literature has paid increasing attention to the entrepreneurship that occurs within organizations. Most empirical studies show a positive relationship between corporate entrepreneurship and performance. The objective of this article is to identify which internal and external factors condition corporate entrepreneurship. The study uses two different theoretical perspectives: Resource-Based Theory (for internal factors) and Institutional Economics (for external or environmental factors). Both theories have been widely used in the strategic management and entrepreneurship literature, however, very few studies in the corporate entrepreneurship field are grounded on them together. The research applies negative binomial regression and uses data from the Global Entrepreneurship Monitor (GEM) for the period 2004–2008. Overall the sample has 339.071 observations and it provides information for 9 different European countries (Greece, Spain, Italy, Ireland, the Netherlands, France, the United Kingdom, Denmark and Finland). Results reinforce the importance of internal factors (knowledge, personal networks and being able to identify business opportunities) compared to external (having fear of failure, media impact and the number of procedures to create a company). Contributions of the study are both theoretical and practical. On the one hand, it contributes to the development of the literature in the corporate entrepreneurship field. On the other hand, it provides useful insights for those companies that are interested in entrepreneurship within the organizations.     

Incorporating morale into a classical agency model: implications for incentives, effort, and organization

This paper incorporates morale into a standard principal-agent model. When morale is observable, the worker’s effort level, the optimal piece rate, and the firm’s expected profits are all generally increasing in the worker’s level of morale. Furthermore, under reasonable conditions, higher-morale individuals are more responsive to incentives. Finally, when considering morale interdependence, conditions are derived which determine optimal organization strategies in terms of pooling or separating workers, and corresponding staffing policies are discussed.      

Strategic entrepreneurship and competitive advantage of established firms: evidence from the digital TV industry

Although strategic entrepreneurship in established firms is recognized as a vital source of sustainable competitive advantage, this field has no clearly developed research paradigm. This study proposes a conceptual framework to investigate dimensions of strategic entrepreneurship and its function in sustainable competitive advantage of established firms in a modern volatile environment, through the lens of the dynamic capability view. By conducting a systematic literature review of previous research documents and considering conceptual interrelationships between strategic entrepreneurship and dynamic capabilities, we propose categories that comprise dimensions of a firm’s strategic entrepreneurship: environmental sensing, opportunity seizing, strategic flexibility, entrepreneurial orientation and organizational learning. We establish a conceptual framework of strategic entrepreneurship in which entrepreneurs’ managerial capabilities of environmental sensing, opportunity seizing, strategic flexibility and entrepreneurial orientation closely interact with organizational learning, thereby facilitating sustainable performance of established firms. Following empirical studies of established firms in the digital TV manufacturing industry, the proposed conceptual framework suggests that each dimension of strategic entrepreneurship plays a critical role in competitive advantage of firms. In addition, case study results indicate that a firm’s position and evolutionary path form antecedent factors influencing entrepreneurs’ managerial capabilities and organizational learning of established firms.     

Strategic human resource management and inertia in the corporate entrepreneurship of a multinational enterprise

Abstract

Corporate entrepreneurship (CE) supports sustained competitive advantage through the continuous exploration and exploitation of new sources of knowledge. With an emphasis on combining knowledge in new configurations, strategic human resource management (HRM) activities are core to these entrepreneurial endeavours. We explore how strategic HRM activities may facilitate and impede CE through a rich, qualitative case study of three local entities within a business unit of a large multinational enterprise facing business stagnation and low levels of corporate entrepreneurship. Responding to a call for more empirical research that probes the subtle and complex interactions between HRM activities and other organisational factors affecting CE, we identify a configuration of inter-dependent factors that mutually reinforce each other and sustain inertia in corporate entrepreneurship. We also make two novel contributions to theory by (1) elaborating the links between organisational process-orientation, strategic HRM and CE; and (2) refining to our current understanding of human competencies for CE.     

The market for corporate control in professional football: is there an agency problem?

This paper identifies the nature of agency problems in professional football in the UK. Conflicting elements within director-owners'objective functions combined with highly concentrated ownership rights are sources of agency problems, manifest by the poor financial performance of many clubs. Arguably, a club's supporters influence its output implying that supporters may be considered as an input.
Given this, theory suggests that efficiency may be enhanced if supporters possess more property rights in their respective clubs.     

The effect of competitive intensity on the relationship between strategic entrepreneurship and organizational results

International Entrepreneurship and Management Journal - Although the field of strategic entrepreneurship has received much attention in recent years, the relationship of strategic entrepreneurship...