Publications

Articles

Advancing strategy and organization research in concert: Towards an integrated model?

R. DURAND

Strategic Organization

August 2012, vol. 10, n°3, pp.297-303

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: BOUNDED rationality *RATIONAL choice theory *STRATEGIC planning *ORGANIZATIONAL research *ORGANIZATIONAL sociology


The article discusses the impact of combining institutional and strategic research. The two type of research share common assumptions, which is the locally bounded rationality of agents. Despite the development seen in strategy research over the years, it still suffers from two shortcomings which include difficulties working with macro-dynamics. The author concludes that commonalities seen in both research types could find a resolution in other paradigm

An Empirical Investigation of Interorganizational Opportunism and Contracting Mechanisms

F. Lumineau, B. QUÉLIN

Strategic Organization

February 2012, vol. 10, n°1, pp.55-84

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Formal contract, Legal fees, Opportunism, Relational contract, Vertical relationship

http://ssrn.com/abstract=1977832


This study investigates contracting mechanisms in situations of opportunistic disputes between organizations. The authors specifically explore the relationships between the formal versus informal nature of opportunism and the formal versus informal nature of contractual governance. They use a unique data set of 102 buyer–supplier disputes to explore in depth different types of opportunism – that is, strong form versus weak form opportunism – and different types of contracting mechanisms – that is, the controlling and coordinating functions of formal contracts and the cooperative and competitive sides of relational contracts. The authors’ detailed empirical analysis suggests distinct relationships between the different contracting mechanisms, the different types of opportunism, and the level of legal fees necessary to deal with the dispute. From these findings the authors derive implications for research on the role of contractual mechanisms in dealing with interorganizational opportunism

Cognitive Absorption and Trust for Workplace Collaboration in Virtual Worlds: An Information Processing Decision Making Perspective

S. C. SRIVASTAVA, S. Chandra, Y-L. Theng

Journal of the Association for Information Systems (JAIS)

October 2012, vol. 13, n°10, pp.797-835

Departments: Informations Systems and Operations Management, GREGHEC (CNRS)


Virtual worlds (VWs) are media-rich cognitively engaging technologies that geographically dispersed organizations can use as a cost effective workplace collaboration tool. Using an information processing decision making perspective and building on unique characteristics of VWs, this paper proposes a nomological net for adaptive use intention (AUI) of VWs for workplace collaborations. AUI implies intention to use a technology in a setting different from the one for which it was initially designed. We study the AUI of VWs as a workplace collaboration tool which were originally conceived as recreational gaming platforms. Decision-making literature directs us to reduction of perceived cognitive burden and minimization of risk as the two key motivations for VWs' AUI. Building on these motivations, the paper identifies cognitive absorption and user trust in VWs as the mechanisms leading to individual-level AUI decision. Drawing on social cognitive theory and literature on trust, the proposed model not only re-specifies the concept of cognitive absorption in the context of VWs but also relates it to the level of trust and usage intention for VWs. We empirically tested the proposed model via data collected from 197 VW users in Singapore. Results demonstrate the significant roles that cognitive absorption' and user trust play in VW's usage as a collaboration tool. Further, through a series of post-hoc analyses, we demonstrate the imperative need for considering both cognitive absorption and user trust together in the proposed research model for theoretical parsimony. We also discuss implications for research and practice emerging out of this study.

Contract Performance in Offshore Systems Development: Role of Control Mechanisms

S. C. SRIVASTAVA, T. S. H. Teo

Journal of Management Information Systems

Summer 2012, vol. 29, n°1, pp.115-158

Departments: Informations Systems and Operations Management, GREGHEC (CNRS)

Keywords: Contract performance, Control mechanisms, Control modes, Control theory, Interaction effects, Offshoring, Outsourcing, Project governance, Softwaredevelopment


Although control theory has often been invoked to explain the coordination between client and vendor for information systems development ISD, insights into its moderating effects for explicating ISD contract performance, especially in the offshore context, is rather limited. Such insights would enable better understanding of variables that have complementary or substitutive effects on performance. Further, the control literature talks about different control modes e.g., formal and informal control modes classified as behavior, outcome, clan, and self-control modes without adequately distinguishing among the different control mechanisms enacting each of the control modes. In this research, by explicitly classifying the distinctions that exist within each of the control modes, we uncover the key role played by mechanistic governance in outsourced ISD. Grounding our arguments in the information requirement for performance evaluation, the study theorizes the moderating influence of mechanistic governance on the relationships of contract specificity and relational governance with ISD quality and cost performance. We test the theorized model in a field study comprising 160 offshore ISD projects executed by Indian vendors. Our results establish the significant complementary role of mechanistic governance on the relationships of contract specificity with both cost and quality performance variables. Further, mechanistic governance substitutes the impact of relational governance on cost performance. Thus, the study theoretically as well as empirically establishes the need for conceptualizing mechanistic governance as a viable and significant governance mechanism for offshore ISD contracts. The study also teases out the distinctions between the two prime contract types in vogue for managing offshore ISD contracts, namely, fixed price and time and materials contracts. The study thus contributes not only to control theory but also to the stream of literature examining offshore ISD contracts. Further, the study provides insights to managers on having well-specified contracts and acknowledging the role of mechanistic governance for better performance.

Creating and Capturing Value in Public-Private Ties: A Private Actor's Perspective

I. KIVLENIECE, B. QUÉLIN

Academy of Management Review

April 2012, vol. 37, n°2, pp.272-299

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Public-private interorganizational relations, Governance, Public opportunism, Social activism, Value creation, Value distribution

http://ssrn.com/abstract=1932047


Intersecting the boundaries of public and private economic activity, public-private ties carry important organizational strategy, management, and policy implications. We identify the value creation and capture mechanisms embedded in these ties through a theoretical framework of two conceptual public-private structural alternatives, each associated with different value-creating capacities, rationales, and outcomes. Two important restraints on private value capture-public partner opportunism and external stakeholder activism-arise asymmetrically under each form, carrying a critical effect on partnership outcomes

How to connect strategy research with broader issues that matter?

E. Vaara, R. DURAND

Strategic Organization

August 2012, vol. 10, n°3, pp.248-255

Departments: Strategy & Business Policy, GREGHEC (CNRS)


Incentive life-cycles: Learning and division of value within firms

T. OBLOJ, M. Sengul

Administrative Science Quarterly

June 2012, vol. 57, n°2, pp.305-347

Departments: Strategy & Business Policy, GREGHEC (CNRS)


accepté le 30 mai 2012In this paper, we study the individual and organizational learning mechanisms leading to the evolution of the division of value between economic actors under a given contractual arrangement. Focusing on the division of value between a firm and its employees, we theorize that following a change in the organizational incentive structure, employees learn, over time and with experience, how to be more productive under the implied objectives of the incentive regime, as well as how to game or exploit it. Results, based on outlet-level data from a Polish commercial bank over a 13-month period, show that the bank outlets' value creation (sales revenue from primary loans) and value appropriation (the sum of outlet employees' monthly bonus) both increased, at a decreasing rate, over time as outlet employees gained experience under the new incentive regime. In parallel, the bank's share (the percentage of value created by outlets retained by the bank) increased at first, then, after reaching a plateau, decreased continuously, indicating that the ability of the incentive regime to induce the intended results evolved, giving rise to an incentive life-cycle. In exploring the underlying micromechanisms, we found strong quantitative and qualitative evidence for the presence and relative paces of productive and adverse learning in bank outlets, as well as for the role of prior experience. This is the first empirical study to show that individual and organizational learning processes can influence the evolution of the division of value between economic actors.Author-Supplied Keywords: adverse learning division of value incentive life-cycles Incentives learning

Institutional Change in the Making - The Case of Socially Responsible Investment

D.-L. ARJALIES

Journal of Accounting and Organizational Change

2012, vol. 8, n°3

Departments: Accounting & Management Control

Keywords: Asset Management, Epistemic Object, Equity Investment, Fixed-Income Investment, France, Institutional Change, Mainstreaming, Practices, Social Movement, Socially Responsible Investment (SRI)

http://ssrn.com/abstract=1932295


This dissertation explores the mechanisms of institutional change in practice. The institutional change under study relates to the progressive penetration of Socially Responsible Investment (SRI) criteria into conventional investment funds, a phenomenon which appeared during the 2000s, known as SRI Mainstreaming. The dissertation aims to explain why SRI Mainstreaming has expanded into France and to identify its impacts on the practices of the French asset management sector. It mobilizes a three-year (2006-2009) longitudinal case study of a French asset management company, conducted as an SRI analyst. Research methods rely on the pragmatist concept of inquiry and combine participative observation, semi-structured interviews and documentary evidence. The dissertation comprises three articles that should be considered together. They explore 1) the origins of the SRI Mainstreaming phenomenon, 2) how asset management companies have transformed their practices in response to SRI Mainstreaming and 3) why practices have been transformed in a different way in fixed-income investment, compared to equity investment, respectively.

Is accountability a double-edged sword? Experimental evidence on the effectiveness of internal controls to prevent fraud

F. HOOS, G. Bollmann

Journal of Management Control

November 2012, vol. 23, n°2, pp.115-132

Departments: Accounting & Management Control, GREGHEC (CNRS)


Jules or Jim: Alternative conformity to minority logics

R. DURAND, J. JOURDAN

Academy of Management Journal

December 2012, vol. 55, n°6, pp.1295-1315

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Conformity, Resource dependence, Institutional logics, Minority logic, Soft control strategy

http://ssrn.com/abstract=1978906


To what extent do organizations respond favorably to minority participation, i.e. conform to demands from minority resource suppliers that hold an unconventional logic? A favorable response to minority participation (i.e. 'alternative conformity') contributes to decrease the influence of dominant players, alter the resource suppliers' social structure, and promote new logics, which makes alternative conformity a soft control strategy for organizations. We expect a positive relationship between minority participation and alternative conformity and that relationship to be attenuated by organizations' adherence to the dominant logic, centrality of minority logic holders, and minority logic's institutional credit. We test and find strong support for our hypotheses using original data on investment funds in the French film industry (1994-2008)

Knowledge, innovation and social norms in creative industries

G. DI STEFANO

Economia & Management

2012, n°3, pp.36-40

Departments: Strategy & Business Policy, GREGHEC (CNRS)


Les outils de gestion : producteurs ou régulateurs de la violence psychique au travail ?

P. Gilbert, E. CHIAPELLO

Le Travail Humain

January 2012, vol. 75, n°1

Departments: Accounting & Management Control


Les pénalités de pauvreté en France : comment le marché aggrave la situation des populations pauvres

F. DALSACE, F. Dalens, J. Berger, C-E. Vincent

Facts Reports (Field ACTions Science Reports)

2012, n°4

Departments: Marketing

Keywords: Pauvreté dans les pays développés, Pénalités de pauvreté, double peine, Social Business


More than just novelty: conceptual blending and causality

D. Cornelissen, R. DURAND

Academy of Management Review

January 2012, vol. 37, n°1, pp.152-154

Departments: Strategy & Business Policy, GREGHEC (CNRS)


No territory, no profit: The pirate organization and capitalism in the making

J.-P. VERGNE, R. DURAND

M@n@gement

2012, vol. 15, n°3, pp.265-272

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: capitalism, industry evolution, legitimacy monopoly, norm, piracy


Organizational and management research focuses extensively on topics of legitimacy and competition. At center-stage lie for-profit organizations, which are often assumed to operate in economically turbulent environments embedded in stable sovereign institutions. Our goal in this short essay is to envisage a broader picture that takes seriously other types of organization that gravitate at the periphery of capitalism's territories and redefine the norms of competition and legitimate profit. Rehearsing the punch line of our recent book (Durand & Vergne, 2010, 2013), we advocate for a line of research that explores the boundaries of capitalistic expansion by examining the interactions between three types of actors: sovereign states and their monopolies, which map and impose norms upon the new territories of capitalism (a process we call "normalization"); legitimate for-profit corporations, which generate a profit in the wake of sovereign normalization (we call them "organizations-of-the-milieu"); and pirate organizations, operating from the fringes of capitalism to contest the sovereign's norms in the name of a "public cause". We are especially attentive to the convergent patterns of interactions we observed across time and space on the high seas (17th century), on the airwaves (early 20th century), in cyberspace (since the 1980s) and at the heart of living species in the form of DNA research (since the 1990s). This leads us to assert that sea pirates, pirate radio stations, cyberpirates and biopirates have a lot more in common than prior research on piracy typically assumed.capitalismindustry evolutionlegitimacymonopolynormpiracy

Qu'est-ce que l'investissement Socialement Responsable ?

D.-L. ARJALIES

La Revue du Financier

January 2012

Departments: Accounting & Management Control

Keywords: Développement, Durable, Fonds éthiques, Investissement Socialement Responsable (ISR), Responsabilité Sociale de l'Entreprise (RSE)

http://ssrn.com/abstract=1926928


Sell-off or shut-down? Alliance portfolio diversity and two types of high tech firms' exit

O. Bruyaka, R. DURAND

Strategic Organization

February 2012, vol. 10, n°1, pp.7-30

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: alliance portfolio diversity biotechnology exit high tech firms sell-off shut-down


Alliance portfolio diversity (APD) ' defined as differences between firms' types of alliance partners (i.e. horizontal, upstream, and downstream) ' is a strategic determinant of firm survival. This article analyzes APD in the context of high tech firms who rely on various partners to access complementary resources and secure their business survival, and argues that APD has different impacts on two main types of exit ' sell-off and shut-down ' which have been combined in previous research. Findings from a comprehensive study of French biotech firms from 1994 to 2002 show that the relationship between APD and shut-down is positive and linear whereas that between APD and sell-off is an inverted U-shaped. The article also finds evidence that the association between APD and firm exit mode is contingent on a firm's resources and capabilities. The implications for research and managerial practice are discussed.

Technology Push and Demand Pull Perspectives in Innovation Studies: Current Findings and Future Research Directions

G. DI STEFANO, A. Gambardella, G. Verona

Research Policy

October 2012, vol. 41, n°8, pp.1283-1295

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Technology push, Demand pull, Innovation, Bibliometrics, Co-citation analysis

http://ssrn.com/abstract=1155050


This study updates the debate on the sources of innovation. Using techniques like factor analysis, multidimensional scaling, and pathfinder analysis, we examine the most influential articles that have dealt with the topic. Our analysis provides three main findings. The first more precisely highlights the role of demand as a source of innovation. The second illustrates how competences enable firms to match technology with demand and capitalize on technology and demand as sources of innovation. The third unveils a distinction between external and internal sources of innovations. The sources of innovation can be purely external or internally generated competences that enable the firm to integrate external knowledge within its boundaries. Our work contributes to the classic debate by providing a more granular understanding of how technology and demand interact. In discussing our findings, we link our framework to strategy, innovation and entrepreneurship studies that expressly call for a better understanding of technology and demand factors in value creation and capture

The Development of New Products: The Role of Firm Context and Managerial Cognition

N. PLAMBECK

Journal of Business Venturing

November 2012, vol. 27, n°6, pp.607-621

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Managerial cognition, Corporate entrepreneurship, Firms' strategy and resourcest, Mediating relationship


We explore the effect of organizational factors and managerial cognition on firms' entrepreneurial actions and investigate the relationship between these antecedents by drawing from prior work on corporate entrepreneurship, managerial cognition, and the attention-based view of the firm. The analysis of data from 84 firms shows that firm strategy and resources influence the degree of negativity with which managers interpret events that lead to the development of new products. Our results also suggest that more negative evaluations of the triggering event lead to less innovative new products. While the strategy and the resources of a firm also have an effect on a new product's degree of innovativeness, at least part of this effect is mediated by executives' evaluation of the triggering event. The theoretical elaboration and our results contribute to a better understanding of the drivers of corporate entrepreneurial activities and point to the importance of considering both managerial and organizational factors for advancing our knowledge on firms' entrepreneurial actions

The impact of behavioural factors in the renewable energy investment decision making process: Conceptual framework and empirical findings

A. MASINI, E. Menichetti

Energy Policy

January 2012, vol. 40, n°1, pp.28-38

Departments: Informations Systems and Operations Management, GREGHEC (CNRS)

Keywords: Adaptive conjoint analysis, Behavioral finance, Investments, Renewable energy policy, Multivariate regression


Investments in renewable energy (RE) technologies are regarded with increasing interest as an effective means to stimulate growth and accelerate the recovery from the recent financial crisis. Yet, despite their appeal, and the numerous policies implemented to promote these technologies, the diffusion of RE projects remains somehow below expectations. This limited penetration is also due to a lack of appropriate financing and to a certain reluctance to invest in these technologies. In order to shed light on this phenomenon, in this paper we examine the decision making process underlying investments in RE technologies. We propose and test a conceptual model that examines the structural and behavioral factors affecting the investors decisions as well as the relationship between RE investments and portfolio performance. Applying econometric techniques on primary data collected from a sample of European investors, we study how the investors a-priori beliefs, their preferences over policy instruments and their attitude toward technological risk affect the likelihood of investing in RE projects. We also demonstrate that portfolio performance increases with an increase of the RE share in the portfolio. Implications for scholars, investors, technology managers and policy makers are derived and discussed

The Logics of Budgeting: Accounting, Theorization And Diffusion In The Educational Field

M. EZZAMEL, K. ROBSON, P. STAPLETON

Accounting Organizations and Society

July 2012, vol. 37, n°5, pp.281-303

Departments: Accounting & Management Control, GREGHEC (CNRS)


Welche Faktoren beeinflussen Unabhängigkeit und Objektivität der Internen Revision? Ergebnisse einer Umfrage. Zeitschrift Interne Revision

F. HOOS, A. d'Arcy

Zeitschrift Interne Revision

2012, pp.124-131

Departments: Accounting & Management Control, GREGHEC (CNRS)


Books

China’s Development: Capitalism and Empire

M. AGLIETTA, G. BAI

Routledge, London

2012



Les nouvelles fondations des sciences de gestion - éléments d'épistémologie de la recherche en management (A. David, A. Hatchuel, R. Laufer Eds)

translated in French from Les nouvelles fondations des sciences de gestion - éléments d'épistémologie de la recherche en management (A. David, A. Hatchuel, R. Laufer Eds), Presses des Mines, Collection Économie et Gestion, 2001

A. DAVID, A. HATCHUEL, R. LAUFER

Presses des Mines, Collection Économie et Gestion

3e ed.th ed., 2012



Case studies

ANTALIS-MAP (A) : Fusionner et faire face aux turbulences

Bertrand QUELIN

2012

La société Antalis est un acteur important de la distribution B-to-B en Europe. En 2007, elle prend le contrôle de la société MAP pour devenir n° 1 de l'industrie. Ce mouvement stratégique majeur lui permet d'étendre sa couverture géographique, de rationnaliser ses entrepôts et de bénéficier d'économies d'échelle. Dans une industrie arrivée à maturité, et connaissant une décroissance régulière de la demande, cette acquisition illustre le bénéfice d'une stratégie focalisée sur la taille et la complémentarité des activités. Elle prépare la société Antalis mieux que ses concurrents directs aux turbulences que l'industrie connaît depuis.

Keywords: Analyse concurrentielle , Marché à maturité , Concentration , Fusion, acquisition , Synergies et économies de coût

ANTALIS-MAP (A): Merging to Manage Market Turbulence

Bertrand QUELIN

2012

Antalis is a company working as a major player in the B-to-B distribution in Europe. In 2007, Antalis took control over its competitor MAP to become #1 in the paper distribution industry. This key strategic move allows it to expand its geographical coverage, rationalize its warehouse and distribution network, and benefit from economies of scale. In a mature industry, and knowing a steady decline in demand, this acquisition demonstrates the benefit of a strategy focused on the size and complementarity of activities. It prepares the company Antalis better than its direct competitors in the industry knowing turbulence since.

Keywords: Competitive analysis , Mature market , Consolidation , Merger &, Acquisition , Synergies , Cost cutting

ANTALIS-MAP (B) : Fusionner et réorganiser : Un management postacquisition

Bertrand QUELIN

2012

La société Antalis est un acteur important de la distribution B-to-B en Europe. En 2007, elle prend le contrôle de la société MAP pour devenir n° 1 de l'industrie. Ce mouvement stratégique majeur lui permet d'étendre sa couverture géographique, de rationnaliser ses entrepôts et de bénéficier d'économies d'échelle. Dans une industrie arrivée à maturité, et connaissant une décroissance régulière de la demande, cette acquisition illustre le bénéfice d'une stratégie focalisée sur la taille et la complémentarité des activités. Elle prépare la société Antalis mieux que ses concurrents directs aux turbulences que l'industrie connaît depuis.

Keywords: Post acquisition , Mise en œuvre , Réorganisation , Identité et culture d'entreprise

ANTALIS-MAP (B): Merging and Post-acquisition Management

Bertrand QUELIN

2012

Antalis is a company working as a major player in the B-to-B distribution in Europe. In 2007, Antalis took control over its competitor MAP to become #1 in the paper distribution industry. This key strategic move allows it to expand its geographical coverage, rationalize its warehouse and distribution network, and benefit from economies of scale. In a mature industry, and knowing a steady decline in demand, this acquisition demonstrates the benefit of a strategy focused on the size and complementarity of activities. It prepares the company Antalis better than its direct competitors in the industry knowing turbulence since.

Keywords: Post acquisition , Implementation , Restructuring , Corporate Identity and Culture

ARES et La Petite Reine... de coeur ?

Laurence LEHMANN, J. KLESZCZOWSKI

2012

Réalisant un peu plus de 7 millions d'Euros de chiffre d'affaires en 2008, Ares est une entreprise d'insertion (EI), c'est à dire une entreprise de production de biens et/ou de services, se situant dans le secteur concurrentiel marchand, mais dont la finalité est d'employer des personnes sans emploi rencontrant des difficultés sociales et professionnelles particulières (ancien détenu, SDF, jeune sorti du système scolaire, ...). Les EI sont une passerelle, un sas vers l'emploi : pour les salariés en insertion, l'EI constitue un tremplin vers l'emploi classique, grâce à un accompagnement individualisé mené en parallèle de l'activité professionnelle. Or, Ares est une EI de grande taille, avec près de 360 personnes en insertion et 70 permanents, et plutôt performante, puisque le taux de sortie vers un emploi ferme se situe aux alentours de 58%, un chiffre bien plus élevé que la moyenne du secteur. Ares est actif dans le conditionnement et la logistique, la sous-traitance industrielle (par exemple dans le tri sélectif), le débarras et déménagement ainsi que le nettoyage écologique de véhicules et est bien géré par son dirigeant, Thibaut Guilly, qui a réussi à combiner efficacité sociale et économique.
Thibaut Guilly a la volonté de faire croître Ares, et de développer de nouvelles activités. En décembre 2008, son ambition est de racheter La Petite Reine (LPR), une entreprise écologique de transport urbain « du dernier kilomètre », réalisant ses livraisons sur un cargocycle, un vélo à trois roues assisté électriquement. Cependant, LPR est une jeune petite entreprise non rentable. De plus, c'est une entreprise « classique », que Thibaut ambitionne de transformer en entreprise d'insertion, une mutation qui ne s'est jamais vue dans le secteur habituellement très hermétique de l'insertion.
Les membres du conseil d'administration d'Ares doivent se prononcer rapidement sur l'opportunité de ce rachat. Les synergies présentées par Thibaut et son équipe, très volontaristes, sont-elles bien réalistes ? La mission sociale d'Ares, pour qui l'activité économique n'est qu'un moyen et non une fin, n'est-elle pas mise à mal à travers une telle acquisition ? Les dirigeants n'oublient-ils pas leur « cœur », leur mission sociale ? Faut-il réellement privilégier la croissance externe, alors que tant de choses restent à faire sur les activités actuelles d'Ares ? Les membres du conseil d'administration s'interrogent et se demandent s'ils doivent accepter ce rachat ou non.

Keywords: Acquisition, entreprise d'insertion.

GRAMEEN DANONE FOOD LIMITED (A): Creating a social business in Bangladesh

Frederic DALSACE, B. GARRETTE, J.-L. ARDOIN, B. FAIVRE TAVIGNOT

2012

The cases examine how Danone, the leading French food company, and Grameen, Mohammed Yunus' organization, built Grameen Danone Food Limited (GDFL), the first "Social Business" ever co-developed according to the 2006 Nobel Prize winner principles
During an informal lunch with Mohammed Yunus, Danone CEO's Franck Riboud agreed to form a Social Business (SB) in order to fight children's malnutrition in Bangladesh. This hand-shake resulted in the construction of a small plant in Bogra, designed to produce "shokti-doi", yoghurt specifically developed for Bangladesh. The development of such a new organizational form is far from being smooth, however, raising legitimate questions about its true potential as a way to alleviate poverty. Although no definitive answer can be provided at this stage, the case series provide instructors with enough details to illustrate the pros and cons of social businesses. More fundamentally, the series examine the use of market-based solutions to fight poverty and illustrate how firms exercise their Corporate Social Responsibility (CSR).
Case A is positioned in December 2008, at a time when GDFL's model is clearly not performing. It gives an historical perspective on the joint-venture, and underlines the tension between the business' social and the economic aspects.
Cases B and C are short follow-up cases designed to be distributed in class.

Keywords: Food company, poverty, nutritious food, social business, ethics, corporate social responsibility, marketing, corporate alliance, Bangladesh.

GRAMEEN DANONE FOOD LIMITED (B): New Directions

Jean-Loup ARDOIN, F. DALSACE, B. GARRETTE, B. FAIVRE TAVIGNOT

2012

The cases examine how Danone, the leading French food company, and Grameen, Mohammed Yunus' organization, built Grameen Danone Food Limited (GDFL), the first "Social Business" ever co-developed according to the 2006 Nobel Prize winner principles.
During an informal lunch with Mohammed Yunus, Danone CEO's Franck Riboud agreed to form a Social Business (SB) in order to fight children's malnutrition in Bangladesh. This hand-shake resulted in the construction of a small plant in Bogra, designed to produce "shokti-doi", yoghurt specifically developed for Bangladesh. The development of such a new organizational form is far from being smooth, however, raising legitimate questions about its true potential as a way to alleviate poverty. Although no definitive answer can be provided at this stage, the case series provide instructors with enough details to illustrate the pros and cons of social businesses. More fundamentally, the series examine the use of market-based solutions to fight poverty and illustrate how firms exercise their Corporate Social Responsibility (CSR).
Case A is positioned in December 2008, at a time when GDFL's model is clearly not performing. It gives an historical perspective on the joint-venture, and underlines the tension between the business' social and the economic aspects.
Cases B and C are short follow-up cases designed to be distributed in class.

Keywords: Food company, poverty, nutritious food, social business, ethics, corporate social responsibility, marketing, corporate alliance, Bangladesh.

GRAMEEN DANONE FOOD LIMITED (C): Update

Jean-Loup ARDOIN, F. DALSACE, B. GARRETTE, B. FAIVRE TAVIGNOT

2012

The cases examine how Danone, the leading French food company, and Grameen, Mohammed Yunus' organization, built Grameen Danone Food Limited (GDFL), the first "Social Business" ever co-developed according to the 2006 Nobel Prize winner principles.
During an informal lunch with Mohammed Yunus, Danone CEO's Franck Riboud agreed to form a Social Business (SB) in order to fight children's malnutrition in Bangladesh. This hand-shake resulted in the construction of a small plant in Bogra, designed to produce "shokti-doi", yoghurt specifically developed for Bangladesh. The development of such a new organizational form is far from being smooth, however, raising legitimate questions about its true potential as a way to alleviate poverty. Although no definitive answer can be provided at this stage, the case series provide instructors with enough details to illustrate the pros and cons of social businesses. More fundamentally, the series examine the use of market-based solutions to fight poverty and illustrate how firms exercise their Corporate Social Responsibility (CSR).
Case A is positioned in December 2008, at a time when GDFL's model is clearly not performing. It gives an historical perspective on the joint-venture, and underlines the tension between the business' social and the economic aspects.
Cases B and C are short follow-up cases designed to be distributed in class.

Keywords: Food company, poverty, nutritious food, social business, ethics, corporate social responsibility, marketing, corporate alliance, Bangladesh.

Is the LYDEC experience replicable?

R. DURAND, A. JACQUEMINET, S. TOUBOUL

2012

This case describes how a services’ provider, LYDEC, entered the BoP market of Casablanca shanty towns step-by-step. First LYDEC entered as a sole player from 1997, which due to ill-adapted services and unreliable processes revealed to be an extremely costly initiative; then with government and local authorities support from 2005. In the second period, the strong public-private partnership enabled a better adaptation to customers’ need, a higher operational efficiency and limited investment costs. While GDF-Suez is nowadays envisaging replicating the initiative in other developing countries, students are asked to reflect on key success factors of the Moroccan initiative, ones that could be replicated, and issues that could arise in other institutional frameworks.

Keywords: Bottom of the Pyramid, Essential Services, Public Private Partnerships, Scalability, Replicability

Michelin Fleet Solutions. De la vente de pneumatiques à la vente de kilomètres

F. DALSACE, W. ULAGA, C. RENAULT

2012

Solutions; Transition from product to service; Service excellence; Business model change; Fleet management; Channel relationships; Sales force management; Service economy; Customer value; Environmental, friendly business models

Keywords: Solutions; Transition du produit au service; Excellence de service; Changement de modèle économique; Gestion de flotte; Gestion des forces de vente; Economie de service; Valeur client; Modèles économiques respectueux de l'environnement

Michelin Fleet Solutions: From selling tires to selling kilometers

F. DALSACE, W. ULAGA, C. RENAULT

2012

Michelin, a worldwide leader in the tyre industry, launched in 2000 a comprehensive tyre-management solution offer for large European transportation companies, called Michelin Fleet Solutions (MFS). With this new business model, the company ventured into selling kilometers - instead of selling tyres. This decision moves the strongly product-driven firm into the new world of services and solutions. The shift is intuitively appealing, and it provides Michelin with an opportunity to differentiate itself in the tyre business. After 3 years, however, expansion is far below expectations and profitability is terrible - despite the outside help of a strategy consulting firm. The case presents the decision point in 2003, whereby MFS's future has to be decided. Should Michelin seek to further develop this solution offer, and try to repackage the offer yet another time? Or was it just a passing fad that should be abandoned? This case investigates the difficulties that industrial groups face when they transition from selling products to providing service. It enables participants to reflect on the following issues: What's industrial groups' rationale for moving towards solutions? What kind of business model reconfiguration does it imply? How does moving to solutions raise multiple challenges throughout the organization (eg in terms of sales force management, risk management, channel relationships etc)?

Keywords: Solutions; Transition from product to service; Service excellence; Business model change; Fleet management; Channel relationships; Sales force management; Service economy; Customer value; Environmental, friendly business models

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