B2B: How Much Should You Focus on Existing Buyers?
Managers of supplier firms often dedicate substantial resources and attention towards maximizing the level of the business they capture from their existing buyers. But can there be downsides to deepening these B2B relationships? In related prior research on client-led diversification, John Mawdsley, assistant professor of Strategy at HEC Paris, explained how deeper relationships with existing clients lead to law firms following their clients’ expansion into new lines of business. Now, in a study with Deepak Somaya of the University of Illinois, Professor Mawdsley asks whether the strength of the relationships between a supplier and its existing buyers influences the rate at which the supplier can grow its business. In this interview, Mawdsley reveals an important trade off of deepening existing B2B relationships.
How to Manage Innovators for the Public Good
Today’s major societal challenges – such as climate change, migration and inequality - urgently call for new ideas and approaches that can create both economic growth and social value. Recent years have seen a surge of support programs targeted specifically at nascent social entrepreneurs - new actors on the innovation scene -, widely thought to be invaluable for bringing forth and inspiring such ideas. It is essential, now more than ever, for organizations to understand how they can motivate and manage teams or nascent entrepreneurs to innovate for the public good. An interview with one of the scholars at the forefront of research on innovations for the public good, HEC Paris Professor Marieke Huysentruyt, Academic Director of the Inclusive Economy Center at the Society & Organizations Institute (S&O), on her experimental approaches and results.
How Tech Firms Influence the US Supreme Court to Shape Innovation Policies
Building on the long tradition of innovation research that examines changes in firms’ rate and direction of innovation, the research by HEC Paris Professor Elie Sung aims to help further our understanding of firms’ innovation strategy by examining their actions in nonmarket arenas along with their market strategies. Elie Sung has examined how firms and the courts jointly shape patent policy and how in turn those policies shape firms’ innovative activities. This research participates to a long-lasting debate on the relationship between patents and innovation, and strongly contributes to the economics of innovation and to the nonmarket strategy academic literature.
Why Private Equity Firms Should Include More Women
At the senior level, men outnumber women by a 10 to 1 ratio in the private equity sector. Considerations about gender equality notwithstanding, such a testosterone-only environment is not good for... the bottom line. A large-scale study of investment deals by HEC Paris professor of strategy and business policy proves that teams with at least one female member dramatically outperform male-only teams. An interview with Oliver Gottschalg.
Cliques or Cosmopolitans? How Do Social Networks Shape Innovators Fame
What makes innovators famous? Creativity is commonly assumed to be a driver of fame. Another common, albeit more cynical view, is that being connected to powerful people helps people become famous. Mitali Banerjee of HEC Paris and Paul L. Ingram of Columbia Business School provide a more nuanced view. They find that innovators’ fame cannot be explained by their creativity but by having a diverse community of peers. Learn more in this interview with Mitali Banerjee.
Why Activist Hedge Funds Target Socially Responsible Firms, and How Executives and Investors Can Counteract Them
Increasingly powerful and influential, activist hedge funds are forces to be reckoned with. With their controversial tactics aimed at maximizing shareholder profit, they undermine sustainability practices, which they consider wasteful. Indeed, not only do they tend to suppress the corporate social responsibility (CSR) activities of the companies they target, they also target companies with stronger CSR records in the first place, as a new study reveals. But its authors Mark DesJardine, Rodolphe Durand, and Emilio Marti also show that these companies can divert the attention of activist hedge funds, and that policymakers and socially minded investors can intervene, too.
3 Objectives to Create Intelligence in the Face of Uncertainty
Uncertainty is an invisible trap, set to blind our capacity to avoid nonsense and create actual intelligence. Why invisible? Because uncertainty is powered by what we do not know, which is particularly difficult to become aware of. Anne-Sophie Chaxel, HEC Paris Associate Professor of Marketing and expert in cognitive biases, gives three objectives to keep in mind to embrace uncertainty, along with practice tool boxes to create intelligence.
What Approach and What Future for Companies Hit by COVID-19? Managing Contradictions in the Affected Companies
What we are experiencing is similar to an earthquake of strong magnitude. Everyone agrees that there will be a before and after Covid-19. Whilst this earthquake assails us all, we do have control of the choices and decisions to be made. These will determine how crippled or strengthened we will be by the end... As always in times of crisis there are losers and winners, the cards are redealt.
How to Reinvent Your Business Model
Today's coronavirus crisis has driven down our economy. Such a pause has a negative impact on world trade and economic growth; its social implications (loss of income and employment, increased inequality…) will have explosive consequences. In this context, there are many calls for a model change: let's not just press the "pause" button to restart the existing model, let's use this opportunity to reinvent it!