A persistent theme in the academic literature on technological innovation is that incumbent enterprises have great difficulty crossing the abyss created by a radical technological innovation. It is argued that incumbents go into decline, while new entrants rise to market dominance by exploiting...

We develop a two-sided multidimensional matching model of the market for CEOs that allows for both pecuniary and non-pecuniary (amenity) compensation. The model is estimated by maximum likelihood estimation using matched CEO-firm data from Denmark. We show that CEOs have preferences for building...

Small- and medium-sized enterprises (SMEs) sometimes introduce different types of innovation simultaneously. However, the performance implications of simultaneous innovation practices remain under-researched in the literature. Therefore, this paper explores the combined use of six types of...

This paper uses panel data to assess the relative importance of social networks and geographic proximity to micro, small, and medium enterprises in Viet Nam. The results suggest that a larger social network, and hiring employees mainly through social networks, are both correlated with higher...

Economic sociologists have concluded that social embeddedness, characterized by trust and reciprocity, is widespread in organization-to-organization exchange. There remains, however, a tension between theorists who pose trust as an alternative logic to asocial price negotiations or contractual...

We organized business associations for the owner-managers of young Chinese firms to study the effect of business networks on firm performance. We randomized 2,820 firms into small groups whose managers held monthly meetings for one year, and into a “no-meetings” control group. We find the...

This paper examines whether patenting increases the private incentives to innovate in manufacturing. To study this issue, we build a model in which the value of an innovation depends both on the type of innovation implemented (product, process) and on the existence of a patent protection or not....

This paper is an attempt to understand the effects of leaders on organizational performance. We argue for an expert leader model of leadership. We differentiate between four kinds of leaders according to their level of inherent knowledge and industry experience. After controlling for confounding...

This paper explores the effect of bargaining in vertical relationships on the profitability of suppliers’ R&D investments. Studies on the relationship between R&D and firm profitability mostly concentrate on the impact of horizontal market structure and neglect vertical interac-tions. Building...

This paper is an attempt to understand the effects of leaders on organizational performance. We argue for an "expert leader" model of leadership. We differentiate between four kinds of leaders according to their level of inherent knowledge and industry experience. After controlling for...