Browsing Department of Innovation and Organizational Economics (INO) by Year Published
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Essays on Turnover, Entrepreneurship and Location Choice in the Danish Maritime IndustryIsakson, Christine D. (Frederiksberg, 2013)[More information][Less information]
Abstract: It is critically important to understand the connection between social interaction and individual economic choice (Granovetter 2005). This thesis asks the overall question; How do social relations, specifically coworkers, in the organizational context, influence individual economic choice? The three economic outcomes being examined are turnover, entrepreneurship (the choice to start a business or firm) and location choice (the choice of where to live). These three economic choices are linked to social relations in the organizational context by examining different facets of coworker or peer influence. Common to all papers are mechanisms pertaining to communication, knowledge transfer and coworker influence. URI: http://hdl.handle.net/10398/8654 Files in this item: 1
Christine_Isakson_NEW.pdf (1.634Mb) -
Studied in the context of medical device activities at the pharmaceutical company Novo Nordisk A/S in the period 1980-2008Stjernholm Madsen, Arne (Frederiksberg, 2012)[More information][Less information]
Abstract: Increased globalization in business competition makes the ability to innovate and to redefine strategy crucial to a company. An interesting question however is if a management team can control innovation and strategic renewal of the company at all; or do such changes emerge, driven by external events or by bottom-up processes in the organization? The present research project addresses some of these issues through the overall research question “How does innovation strategy evolve?” The research question is examined in a specific empirical context. Since 2001, I have worked as an internal innovation consultant at Novo Nordisk A/S; a pharmaceutical firm founded in 1923 operating in a well established industry (insulin for diabetes treatment), characterized by intensive investments in Research and Development. I took advantage of this unique access to the internal life of an organization and consequently set up my research project as a longitudinal in-depth case study of the medical device innovation activities at Novo Nordisk A/S covering the period 1980-2008. The study specifically analyzes the relationship between the classic core product of the firm (insulin) and complementary products (medical devices, such as insulin ‘pens’), which hold the potential to either enhance the value of the core product, or to become a distinct business of its own. Burgelman’s evolutionary theory of strategy making, especially his ‘internal ecology model’ (Burgelman 1991, 2002), has been chosen as the basic theoretical framework for the project. Some expansions of this framework, however, were needed. First, the present study puts greater emphasis on analyzing the external environment and its influence on internal strategy processes. Second, the analysis includes the role of management cognition, especially the notion of the corporate dominant logic (Prahalad & Bettis, 1986; Bettis & Prahalad, 1995), understood as an enduring top management worldview or mindset based on reinforcement of experiences from the past. With regard to results, the present study identifies a more entrepreneurial role of the top management driven induced strategy process than traditionally described in evolutionary theory. In this case study, strategic variation and trial-and-error learning is not restricted to the autonomous initiatives in the ‘internal ecology’; on the contrary, top management cognition creates strategic visions or hypotheses, which are enacted as experiments in the market, for example in the form of new product categories. External feedback determines the destiny of these strategic experiments. Thereby innovation strategy (in case, for medical devices) serves as a strategic laboratory at corporate level, so to speak. The device-based strategic experiments face the challenge of escaping the gravity of the dominant logic, which repeatedly pulls the strategy back towards the well-known success formula, centered on the drug itself (i.e. the insulin). Thus, the induced strategy process mediates core assets (pharmaceutical drugs) and complementary assets (medical devices), by swinging the pendulum between cycles of innovation strategy which define the devices as core or complementary respectively. Hence, the balance between what is defined as core and what is defined as complementary in the corporate innovation strategy seems to be dynamic and negotiable. As a consequence of the cycles of strategic experimentation, the corporate induced strategy process acts as a force of strategic entrepreneurship, seen over extended time. The implications for research point towards a new paradigm of strategic research in the ‘middle ground’ between rational choice theory and evolutionary theory, as proposed by Gavetti & Levinthal (2004). The present research project suggests that a firm’s ability for strategic adaptation depends both on strategic context determination of autonomous initiatives in the ‘internal ecology’ and on ability to enact induced strategic experiments with alternating innovation strategies in the market. This theory of ‘inbound’ and ‘outbound’ strategic search establishes a dynamic understanding of the corporate induced strategy process. In this understanding, innovation strategies act as hypotheses, which create strategic dissonance between vision and reality and thereby drive strategic learning. The implications for management practice are first recognition of how fortunate it has been for Novo Nordisk to sustain the core business strategy, protected by the dominant logic. This fact relates to a background where the core market proved to hold immense growth potential, and the industry was relatively stable compared to for instance the IT industry. On the other hand, Novo Nordisk’s success is partly due to cycles of strategic experiments with complementary assets for innovation, in case medical devices. Top management initiated these explorative experiments and the learning was utilized for expansion of the position within the core business. Hence, one can conclude that a company should explore and utilize the value of complementary assets, since these are perfect tools for strategic experimentation without risking the core business. URI: http://hdl.handle.net/10398/8453 Files in this item: 1
Arne_Stjernholm_Madsen.pdf (5.387Mb) -
The Contingent Value of Networked CollaborationVaarst Andersen, Kristina (Frederiksberg, 2011)[More information][Less information]
Abstract: Co-location of industry professionals often leads to development of collaboration networks, and multiple studies have emphasized the benefits of embedded collaboration. Due to higher levels of trust, embedded collaboration reduces transaction costs and facilitates ready knowledge exchanged. Other studies have pointed to dangers of over-embeddedness. The argument is that too high levels of embeddedness lead to habitual thinking, preferential treatment, and thereby mitigate performance. However, research on the conditions under which embeddedness in different types of collaboration networks primarily yields costs or benefits still leaves much to be investigated.... URI: http://hdl.handle.net/10398/8352 Files in this item: 1
Kristina_Vaarst_Andersen.pdf (2.825Mb) -
Stern, Alexander Brian (Frederiksberg, 2010)[More information][Less information]
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Does it make sense?Bille, Trine (Frederiksberg, 2010)[More information][Less information]
Abstract: This paper discusses the concept of the experience economy in a Nordic context and shows how the Nordic version of the concept has come about from a mix of three different approaches and theories. Besides, the Nordic definition links the experience economy closely with cultural activities. In the Nordic countries the experience economy has been developed in a political context and it is apparently a popular development policy for local government authorities and regions. This paper discusses the Nordic definition of experience economy and questions if it makes any sense. The definition of experiences is not clear, and the definition of the word “economy” has different interpretations as well. In a narrow interpretation the term economy is related to market economic value, which is used in the political terminology. The paper shows that the experience economy can follow three different routes to market value creation, and how the growth opportunities for the different experience areas will depend on three different trends. Therefore, it can be shown that only some experience areas are growing, and the market value creation occurs in very different ways and to very different extents within, and in relation to, the different experience areas. The greatest growth potential resides probably in the broad value creation in association with the experience areas. But the experience economy does not lend itself to any consistent definition. URI: http://hdl.handle.net/10398/8012 Files in this item: 1
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Final Project ReportCastellacci, Fulvio; Karpaty, Patrik; Laursen, Keld; Tingvall, Patrick G. (Oslo, 2010)[More information][Less information]
URI: http://hdl.handle.net/10398/8190 Files in this item: 1
ICONS Report-Castellaci et al-1.pdf (1.209Mb) -
Connectivity and Catch-up in Emerging Market EconomiesLorenzen, Mark; Mudambi, Ram (Frederiksberg, 2010)[More information][Less information]
URI: http://hdl.handle.net/10398/8006 Files in this item: 1
41_ML_Bangalore_vs._Bollywood_Final.pdf (225.6Kb) -
Family Ties and Embeddedness in the Indian Film Industry in BollywoodLorenzen, Mark; Taeube, Florian A. (Frederiksberg, 2010)[More information][Less information]
Abstract: Theoretical and empirical research on entrepreneurial networks is largely outcome-oriented and little integrated with family firm research. In this paper, we draw on social network and entrepreneurship literatures in order to investigate how family businesses build and make use of a variety of embedded and arm’s-length ties. We present novel data self-collected in qualitative, inductive fieldwork from more than 50 interviews in mainstream film production in Bollywood. Our findings contrast with extant research by showing that in the socio-cultural context of India the use of embedded ties is higher than predictions in the Page 3 / 55 Creative Encounters Working Paper #40 theoretical literature and empirical findings in cross-country studies suggest. Moreover, we show that the ‘Indian’ family is an institution that dominates embedded ties. The Banyan tree symbolizes this interconnectedness of the different branches of an Indian family compared to the plain structure of a birch tree describing Hollywood, where embedded ties can be different from familial ties. URI: http://hdl.handle.net/10398/8005 Files in this item: 1
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Gobbi, Chiara; Hsuan, Juliana (Porto, 2010)[More information][Less information]
Abstract: The paper represents an exploratory study aimed at developing a theoretical framework that supports the elaboration of efficient collaborative purchasing (CP) strategies in the healthcare system. We identify prerequisites for developing an efficient CP approach in the healthcare system. A case study of Danish National Healthcare system is presented. The case indicates that trust and stakeholders’ commitment are key elements for successful CP initiatives. Moreover, simplifying procedures for collaborative sourcing and service management is crucial in sourcing of complex medical equipment. URI: http://hdl.handle.net/10398/8542 Files in this item: 1
Gobbi__Hsuan__2010.pdf (146.8Kb) -
Co-existence of institutional logics in the recorded music industrySigurdardottir, Margrét Sigrún (Frederiksberg, 2010)[More information][Less information]
Abstract: The concept of institutional logics, notably a choice between multiple logics, has been offered as a foundation to theoretically explain heterogeneity of organisation. The thesis focuses on how this heterogeneity of organisation is possible through a study of how decision makers deal with conflicting yet coexisting logics in their every day work. The field chosen for the empirical study is the recorded music industry, where two opposing logics, the artistic and the commercial, necessarily co‐exist. Through semi‐structured interviews, decision makers in the recorded music industry in the UK were asked about their work processes. Their descriptions revealed two very different ways of acting based on either the artistic logic or the commercial logic. The study further shows that even if there were some attempts to take both logics into account, all the respondents emphasised one logic over the other, but not the same logic, leading to the established major/independent duality in the structure of the field. URI: http://hdl.handle.net/10398/7992 Files in this item: 1
Margrét_Sigrún_Sigurdardottir.pdf (4.133Mb) -
Bilagsmateriale fra "ophavsret i den danske oplevelsesøkonomi: Tal og tendenser"Singal, Kunal; Lorenzen, Mark (Frederiksberg, 2009)[More information][Less information]
URI: http://hdl.handle.net/10398/8217 Files in this item: 1
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Lando, Henrik (København, 2008)[More information][Less information]
Abstract: When a court sets standards of due care in a tort or contract case with a view to how the standards will affect future behavior of parties similar to the litigants, it should sometimes realize that only one of the two future parties is likely to become informed of the standards. The standards can then only have a direct effect on the behavior of the informed party, and it may be thought that the court should hold the informed party strictly liable, which maximizes this effect. However, this ignores that the informed party may, although strictly liable, lower her level of care in order to induce the uninformed party to take greater care. In this situation, the negligence rule may do better than strict liability, since the discontinuity of the negligence rule can prevent the informed party from strategically lowering her level of care. Under the negligence rule, optimal standards are sensitive to whether the informed party acts first and to whether she is the injurer or the victim. For both the informed and the uninformed, there are circumstances in which the standard should be higher than first best and other circumstances where it should be lower. URI: http://hdl.handle.net/10398/7221 Files in this item: 1
wp01-2008.pdf (121.8Kb) -
Sanchez, Ron (København, 2008)[More information][Less information]
Abstract: Part I of this paper applies the principles of the philosophy of science and the derived scientific method to analyze the foundational concepts and core proposition of the Resource-Based View (RBV) as popularized by Barney (1986, 1991, 1997). This analysis identifies seven fundamental conceptual deficiencies and logic problems in Barney’s conceptualization of "strategically valuable resources” and in Barney’s VRIO framework for identifying strategically valuable resources that can be sources of sustained competitive advantage. Three problems -- the Value Conundrum, the Tautology Problem in the Identification of Resources, and the Absence of a Chain of Causality -- relate to the RBV’s and VRIO’s failure to provide an adequate conceptual basis for identifying strategically valuable resources. The Uniqueness Dilemma, the Cognitive Impossibility Dilemma, and an Asymmetry in Assumptions about Resource Factor Markets result in an inability of the VRIO framework to support identification of resources that can be sources of sustained competitive advantage. More fundamentally, the core proposition of the RBV – that resources that are strategically valuable, rare, inimitable, and organizationally embedded are sources of sustainable competitive advantage – is argued to result directly in the Epistemological Impossibility Problem that precludes use of the scientific method in RBV research. This paper argues that until these conceptual deficiencies and logic problems are recognized and remedied, the RBV – in spite of its current popularity -- is and will remain theoretically sterile and incapable of contributing in any systematic way to the development of strategy theory. Part II of this paper then suggests how foundational concepts developed within the competence perspective on strategy provide essential remedies for the identified deficiencies and problems in the RBV -- and thereby provide a more conceptually adequate basis for representing the nature of firms in the scientific study of their interactions and competitive outcomes. URI: http://hdl.handle.net/10398/7231 Files in this item: 1
wp02-2008.pdf (629.3Kb) -
Some descriptive results from DenmarkBille, Trine (, 2008)[More information][Less information]
Abstract: The purpose of this paper is to analyze the labor market for artists and in the creative industries more broadly: How important is a formal education for jobs in the creative industries? How are the careers of people with a creative education? Do they work in the creative industries or outside the creative industries? How is the profile of the jobs within the creative industries? Alper and Wassall (2006) present an overview of the economic, mainly empirical research concerning the labor market of artists. Different types of studies can be distinguished: theoretical models of artistic career processes, qualitative interviews and data, retrospective surveys and panel data based on surveys (either true panel studies or quasi panel studies). Some of the most extended studies on artists’ earnings are done by Alper and Wassall on American census data, where data comes from peoples selfreporting in surveys, and peoples’ occupation is based on time spent at work during a single reference week. This do obvious have some drawbacks. Register data from Statistics Denmark representing true panel data, makes it possible to overcome some of these problems and gain new knowledge on the career patterns of artists, their income, the importance of education, multiple jobholding etc. The register data used in this paper includes a lot of variables on socio-economy, income, employment etc. for the Danish population in the period 1994-2003. The paper includes a discussion and delimitation of artist and the creative industries, and presents new empirical results on the labor market for artists and in the creative industries URI: http://hdl.handle.net/10398/7750 Files in this item: 1
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Lando, Henrik (København, 2007)[More information][Less information]
Abstract: This article suggests a rationale for statutes of limitations in sales law, i.e. for the practice of cutting off buyers’ remedies after the expiration of a limitation period. The rationale is based on the notion of wear and tear, which carries two implications: First, a good that breaks down after several periods of use is likely to be of nearly optimal quality, and in this case little is gained by allowing a claim. Second, the number of dysfunctions is likely to increase over time, which implies that the pool of potential claims, and in particular the pool of unjustified claims, is likely to increase over time. It will be shown theoretically that these implications can provide a rationale for cutting off claims. The rationale will be supported with empirical evidence stemming from a recent extension of the limitation period from one to two years in Denmark. URI: http://hdl.handle.net/10398/7237 Files in this item: 1
wp06-2007.pdf (237.2Kb) -
'Being Infringed' as a Normatively Induced Innovation Exploitation StrategyReitzig, Markus; Henkel, Joachim; Heath, Christopher (, 2006)[More information][Less information]
Abstract: Patent trolls (or sharks) are small patent holding individuals or firms who trap R&D intense manufacturers in patent infringement situations in order to receive damage awards for the illegitimate use of their technology. While of great concern to management, their existence and impact for both corporate decision makers and policy makers remains to be fully analyzed from an academic standpoint. In this paper we show why patent sharks can operate profitably, why they are of growing concern, how manufacturers can forearm themselves against them, and which issues policy makers need to address. To do so, we map international indemnification rules with strategic rationales of small patent-holding firms within a game-theoretical model. Our central finding is that the courts’ unrealistic consideration of the trade-offs faced by inadvertent infringers is a central condition for sharks to operate profitably. Keywords: Patent, patent shark, patent troll, damage award, infringement JEL Classifications: M00, M11, M21, K00, K11, K33 URI: http://hdl.handle.net/10398/7249 Files in this item: 1
ssrn-id885914.pdf (277.4Kb) -
Drewsen, Merete; Lando, Henrik; Cummins, Tim (København, 2006)[More information][Less information]
Abstract: This is not a theoretical paper but an application of existing law and economic contract theory to the issue of how to draft a specific kind of contract. It is addressed to practitioners and is intended for practical use. It will be part of a Wiki (as in Wikipedia) for contract drafting, which IACCM (International Association for Contract and Commercial Management) has initiated. The main theoretical aspect of the article concerns the application of the value maximization principle (the Coase theorem) to the drafting of confidentiality agreements. While the article is not theoretical, its prescriptions are open to theoretical dispute; this may especially be the case for the section on the size of damages. URI: http://hdl.handle.net/10398/7250 Files in this item: 1
ssrn-id917927.pdf (114.9Kb) -
Lando, Henrik (København, 2006)[More information][Less information]
Abstract: How should a court set the negligence standard in a given area of activity when future (potential) injurers or victims are unlikely to know the standard set by the court? In particular, how should the standard be set in the oft-occurring case where one of the future parties is a professional actor who is likely to know the legal standard of negligence, while the other is an amateur, who is unlikely to know it? In this case, it may be optimal for the court to set the standards at the first-best level despite the amateur's ignorance of the law. The amateur may be able to infer the standards, either from the situation itself (from his knowledge of the costs and benefits of precautions), or from the act performed by the professional party. Moreover, the amateur may take due care because he realizes that the professional party will have an incentive to live up to the standard, and that the risk of a loss will therefore be on the amateur. However, when the ignorance of the amateur is "large," involving not only the legal standards but also the risks inherent in the activity, it may well be optimal for the court to depart from first best standards. URI: http://hdl.handle.net/10398/7239 Files in this item: 1
ssrn-id906084.pdf (150.8Kb) -
Lando, Henrik (København, 2006)[More information][Less information]
Abstract: This article derives key variables in the analysis of standards of proof in criminal law from basic conditional probabilities. The variables derived are the probability of correct and wrongful conviction, the expected sanction and society's incarceration costs, while the basic conditional probabilities are the probability of observing (any given) evidence against individual i given that individual j committed the crime (for any j including j equal to i). The variables are derived from the conditional probabilities as a function of the standard of the proof using simple Bayesian updating. URI: http://hdl.handle.net/10398/7225 Files in this item: 1
ssrn-id874907.pdf (143.3Kb) -
Do Patents "Crowd Out” Prizes?Davis, Jerome; Davis, Lee (København, 2006)[More information][Less information]
Abstract: Debate over the merits of patents versus inducement prizes has tended to ignore the signaling roles of patents, and totally ignores the impact of patent signaling on prize contests. This paper asks: How does patent signaling affect the strategic choices of firms considering entering prize contests? First, we consider contests that do not allow patenting, then contests that do. If patenting is not allowed, we argue, patent-holders, both internal and external to the contest, can adversely impact prize contests by claiming prize winner violation of their patents, and suing for damages. The likelihood of such challenges being made can deter entry, particularly in contests requiring large sunk costs. Furthermore, the firm's decisionmaking process will discriminate against entering prize contests and favor R&D projects with patentable outcomes. Together, these problems may circumscribe any future wider role for prize contests, and limit their major putative welfare advantage: the ability to place prize winning solutions into the public domain. In contests where entrants may patent their inventions, entry is subject to basically the same problems as above (although such contests may carry some advantages as regards contest design). Our overall conclusion is that prize contests are liable to fail due to the lack of potential entrants, particularly as regards entry on the part of larger commercial firms. URI: http://hdl.handle.net/10398/7204 Files in this item: 1
ipr-w_12-davisdavis-mai03-1.pdf (332.8Kb)
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