From market failures to market opportunities: managing innovation under asymmetric information

Barbaroux, Pierre

doi:10.1186/2192-5372-3-5

Cited by 32 publications

(26 citation statements)

References 51 publications

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“…Yet transparency can be in tension with the requirement of information asymmetries in commercial innovation (Blok and Lemmens 2015). In the literature on entrepreneurship and innovation, information asymmetries are regarded as one of the most important sources of market opportunities (Kirzner 1973;Shane and Venkataraman 2000;Davis 2001;Dean and McMullen 2007;Barbaroux 2014). In a perfectly competitive market where every participant has complete information, there are no opportunities for entrepreneurial profits.…”

Section: Tension Between Knowledge Sharing and Competitive Advantagementioning

confidence: 99%

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Responsible innovation in business: a critical reflection on deliberative engagement as a central governance mechanism

Brand

Blok

2019

Journal of Responsible Innovation

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One of the main contentions of the framework for Responsible Innovation (RI) is that social and ethical aspects have to be addressed by deliberative engagement with stakeholders and the wider public throughout the innovation process. The aim of this article is to reflect on the question to what extent is deliberative engagement suitable for conducting RI in business. We discuss several tensions that arise when this framework is applied in the business context. Further, we analyse the place of deliberative engagement in several theories of business ethics. We conclude that there remains a tension between the ideal of RI and the way in which the competitive market operates. Hence, RI scholars should reflect more critically on changes that are required in the market in order to make RI possible, modify the ideal of deliberative engagement for RI in business, or attempt to strike a balance between these two responses.

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Section: Tension Between Knowledge Sharing and Competitive Advantagementioning

confidence: 99%

“…This seems to be in tension with the requirement of information asymmetries for innovation (e.g. Barbaroux 2014). However, Heath prescribes this imperative in the context of the general obligation not to exploit market failures.…”

Section: Deliberative Engagement and The Market Failures Approachmentioning

confidence: 99%

Responsible innovation in business: a critical reflection on deliberative engagement as a central governance mechanism

Brand

Blok

2019

Journal of Responsible Innovation

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“…This theory is supported by Gertler and Rogoff (1990) who stated that asymmetric information is the cause for capital immobility in which capital flows may move from poor to rich markets when there exist asymmetric information in the markets. The significant role of asymmetric information has also been emphasised in numerous studies, for instance, by Barbaroux (2014), de Wet (2004) and Yaacob et al (2017). They pointed out that the asymmetric information affects capital flow in developing countries even if the capital return in those countries are high.…”

Section: Introductionmentioning

confidence: 92%

The Influence of Asymmetric Information on Foreign Capital Inflows in Asean Plus Three Countries

Nor

Janor

Yaacob³

et al. 2021

International Journal of Management Studies

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This paper examines the influence of asymmetric information on foreign capital inflows in ASEAN PLUS THREE (ASEAN+3) countries. Linking capital flows to stock market setting, it substantiates other efforts concerning the debatable issues of the effect of asymmetric information on foreign direct investment (FDI) and foreign portfolio investment (FPI). The asymmetric information is captured through the stock market microstructure perspective on the width and depth dimensions using highly frequency cross sectional data from year 2000 to 2015. Roll and Amivest models are employed to quantify the width and depth aspects of the asymmetric information. Employing the panel data technique, the results demonstrate the significant effect of market transparency on foreign capital inflows specifically the FDI as compared to the FPI. An increase in the width and depth analysis based on the Amivest model signifies a high informational transparency, thus shows a lower asymmetric information which consequently leads to the high foreign capital inflows. The results of the study provide information to the policymakers in monitoring capital inflows on the aspect of market transparency and highlight the importance of the stock market microstructure in assessing the asymmetric information for ASEAN+3 countries.

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“…Some authors argue as there are some positive effects linked to this situation, stimulating entrepreneurs to become more competitive (Milgrom and Roberts 1987;Aghion and Tirole 1994;Coricelli and Luini 2002;Barbaroux 2014).…”

Section: Asymmetric Information: Possible Source Of Competitiveness For Firmsmentioning

confidence: 99%

“…Two theoretical approaches are thus competing. The first one refers to the notion of information asymmetry as a market failure requiring specific arrangements regarding the financing of research and development activities, and the allocation of control among stakeholders (Barbaroux 2014). According to this approach, information is assimilated to a commodity that can be exchanged through market mechanisms, requiring stakeholders to negotiate for contractual arrangements that aim at minimizing transaction costs.…”

Section: Asymmetric Information: Possible Source Of Competitiveness For Firmsmentioning

confidence: 99%

Dual quality food: A negative social externality or a competitiveness opportunity?

Sisto¹,

Pellegrini²,

Sala³

2019

AGR ECON-CZECH

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In recent times, consumers and politicians from Central and Eastern Europe complain that some food products sold in their regions are of lower quality and less healthy if compared to those sold under the same brands in Western Europe. This situation, that concerns exclusively food produced and sold under even well-known multinational brands, is brought back by many food Multi-National Companies to the necessity to adapt their products to local tastes and gastronomic traditions. Many tests and studies carried out at European level prove poorer-quality products offered by Multi-National Companies to Central and Eastern Europe consumers even if with the same packaging and prices (or even more expensive) of Western countries. This is a very novel issue, and to the best of our knowledge, there is not any scientific paper yet dealing with this issue. Therefore, the aim of the study is to add new knowledge to this field and to shed light on the multiple aspects linked to dual quality food. The analysis, essentially theoretical, has pointed out that in addition to the traditional problems of market failures, there can be positive implications in terms of opportunities of competitiveness for multinational food companies.

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From market failures to market opportunities: managing innovation under asymmetric information

Cited by 32 publications

References 51 publications

Responsible innovation in business: a critical reflection on deliberative engagement as a central governance mechanism

Responsible innovation in business: a critical reflection on deliberative engagement as a central governance mechanism

The Influence of Asymmetric Information on Foreign Capital Inflows in Asean Plus Three Countries

Dual quality food: A negative social externality or a competitiveness opportunity?

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