Risks in new product development: devising a reference tool

This paper describes the development and applicability of a risk reference framework (RRF) for diagnosing risks in technological breakthrough projects. In contrast to existing risk identification strategies, the RRF centers on an integral perspective on risk (i.e. business, technological and organizational) and the assessment of risks in ongoing projects. The resulting RRF consists of 12 main risk categories and 142 connected critical innovation issues and has been developed for a globally operating company in the fast-moving consumer goods industry. Our analyses show that to some extent different project members identified the same risks and that saturation occurred in the number of new risk-issues brought to light. We conclude that the success of breakthrough innovation projects improves through formal risk-assessment.     

A risk-neutral equilibrium leading to uncertain volatility pricing

We study the formation of derivative prices in an equilibrium between risk-neutral agents with heterogeneous beliefs about the dynamics of the underlying. Under the condition that short-selling is limited, we prove the existence of a unique equilibrium price and show that it incorporates the speculative value of possibly reselling the derivative. This value typically leads to a bubble; that is, the price exceeds the autonomous valuation of any given agent. Mathematically, the equilibrium price operator is of the same nonlinear form that is obtained in single-agent settings with worst-case aversion against model uncertainty. Thus, our equilibrium leads to a novel interpretation of this price.     

Investments,Credit, and Corporate Financial Distress: Evidence from Central and Eastern Europe

Although they are instrumental for economic development, productivity-enhancing corporate investments may increase the financial vulnerability of companies, especially in an economic and financial crisis. We employ an instrumental probit model with the aim of finding evidence for the investment and credit patterns that led companies into financial distress during the global financial crisis 2009–2010. The company-level micro-data for our study on three Central and East European countries—Hungary, Bulgaria, Romania and two Baltic countries, Latvia and Lithuania—originates from two independent surveys, the Business Environment and Enterprise Performance Survey conducted in 2008 and the Financial Crisis Survey conducted in 2009/2010. Both were carried out jointly by the EBRD and the World Bank. Our results emphasize a substantial adverse impact from investment intensity and debt financing on company financial soundness during a crisis. On top of that, we discover a strong non-linear pattern in the sensitivity of company distress to its investment-financing nexus.     

Strategic Leadership Communication for Crisis Network Coordination

In large-scale societal crises, organizations involved in saving lives and protecting the public need to collaborate and coordinate their crisis communication to minimize damage and increase resilience. This study analyzed strategic leadership communication fostering such coordination in a network consisting of 24 members representing a variety of authorities, organizations and units established during a large forest fire in Sweden. As the crisis unfolded over a two-week period, 10 network meetings were observed and audio recorded. Discourse analysis was employed to analyze network leaders’ and members’ communication during the meetings. Findings illustrate that leadership communication strategies that fostered networked coordination of organizations’ crisis communication differ in significant ways from leadership communication in noncrisis and team contexts. Salient leadership communication strategies of directing/structuring and encouraging/facilitating were employed during crisis network meetings and functioned to coordinate involved organizations’ crisis communication efforts during time pressure. The study contributes with new knowledge of strategic leadership communication for crisis network coordination, which is important to crisis management and can be used in crisis preparation to enhance resilience.     

How do different background variables predict learning outcomes?

This article is a part of a research project aimed to find out how different background variables are related to learning outcomes in school subject Sloyd as found in the national evaluation of the Finnish National Board of Education. Results from this larger research project were previously published in this journal, where pupils’ readiness for Self-Regulated Learning were reported. Since then, pupils’ experiences of classroom techniques, attitudes towards the subject, leisure time interests and learning within the two domains of the subject (Technical Domain and Textile Domain, as the subject is usually divided in Finland) have been studied and results have been published in different journals. In this article, a new Structural Equation Model concludes the previous results. The new model highlights two paths of how the use of different learning orientations can predict successful learning outcomes. These paths can be followed using two pedagogical models: the Exploratory Production Approach and the Domain Specific Approach. Experiencing Learner-Centred Learning predicts positive attitudes and success in Exploratory Production activities. Experiencing Collaborative Learning predicts success in domain specific learning outcomes. Success in Exploratory Production predicts successful learning outcomes in both domains. The conclusion is that regulatory knowledge, “why”, is related to production activities and it is processed prior to domain specific knowledge, “what” and “how”. To develop the subject and pedagogy for schools and teacher training, it is not important to follow an approach defined by the domains (technical or textile). It is more important to teach pupils how to manage in the modern technological world and to understand why they need to be able to improve their life-world through Exploratory Production activities.