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on Entrepreneurship |
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Issue of 2006‒06‒10
five papers chosen by Marcus Dejardin Facultes Universitaires Notre-Dame de la Paix |
| By: | Oded Galor; Stelios Michalopoulos |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:bro:econwp:2006-12&r=ent |
| By: | Dominique Demougin; Oliver Fabel |
| Abstract: | The current study investigates a tripartite incentive contract between an innovator supplying an intellectual asset, a professional assigned to productive tasks, and a consulting firm specializing in matching ideas and professional skills. A rather simple pure tripartite partnership implements the consultant´s expected profit maximum and maximizes the project`s expected surplus. The liquidity-constrained professional is compensated by receiving a share of one half in the new venture. The consultant´s and the innovator´s shares reflect the relative value of search. However, the consultant´s optimal search effort to find an appropriate production partner is inefficiently low. |
| Keywords: | New ventures, tripartite incentive contract, consulting contract, partnerships |
| JEL: | M13 M21 |
| Date: | 2006–06 |
| URL: | http://d.repec.org/n?u=RePEc:hum:wpaper:sfb649dp2006-047&r=ent |
| By: | H. OOGHE; S. DE PRIJCKER |
| Abstract: | This paper describes a typology of failure processes within companies. Based on case studies and considering companies’ ages and management characteristics, we discovered four types of failure processes. The first failure process describes the deterioration of unsuccessful start-up companies leaded by a management with a serious deficiency in managerial and industry- related experience. The second process reveals the collapse after a failing growth of ambitious early- stage companies. Those companies have, after a failed investment, insufficient financial means to adjust their way of doing business to the changes in the environment in order to prevent bankruptcy. Third, we describe the failure process of dazzled established companies, leaded by an overconfident management without a realistic view on the company’s financial situation. Lastly, the bankruptcy of apathetic companies, describes the gradual deterioration of an apathetic established company where management had lost touch with the changing environment. This typology gives new insight into the evolution of financial performance ratios during the years preceding bankruptcy. Furthermore, we found that there is a great difference in the presence and importance of specific causes of bankruptcy between the distinctive failure processes. Errors made by management, errors in corporate policy and changes in the gradual and immediate environments differ considerably between each of the four failure processes. |
| Date: | 2006–05 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:06/388&r=ent |
| By: | M. MEULEMAN; S. MANIGART; A. LOCKETT; M. WRIGHT |
| Abstract: | While one stream of research in partner selection has emphasized stability in a firm’s social network, another stream has emphasized the need to expand a firm’s network. In order to reconcile these two perspectives, we explore transaction, partner and macro conditions that lead firms to work with unfamiliar partners. Using a unique hand-collected dataset, results from the formation of private equity investment syndicates demonstrate that firms are more likely to select unfamiliar partners for lower levels of primary and behavioral uncertainty and higher levels of competition. Our findings provide insights in conditions that lead firms to expand their social network. |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:06/371&r=ent |
| By: | Leonardo Burlamaqui |
| Abstract: | In the 21 century globalized economy, innovation, antitrust issues and (new) intellectual property rules are in the forefront of every government, large company and policy making debates. This paper aims to be a preliminary effort to contribute for a better understanding of the interactions between Competition policies (rather than antitrust) and Intellectual Property issues under a schumpeterian perspective and, therefore, towards a more coherent framework within which the discussions of both institutional building and policy design towards development can proceed. The policy-institutions resulting from the analyses should be flexible and pragmatic, and should have creative destruction management – or the promotion and regulation of entrepreneurial success – as its main goal. The key insight of the policy prescriptions proposed to deal with the question is the need of a huge dose of “strategic state action” and a high degree of international cooperation. |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:tth:wpaper:06&r=ent |