Managerial incentives for process innovation

Overvest, Bastiaan; Veldman, Jasper

doi:10.1002/mde.1416

Cited by 17 publications

(27 citation statements)

References 12 publications

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“…He derives the structure of (profits and sales) contracts and shows that, dependent on the strength of R&D spillovers, a managerial firm may have a strong strategic advantage when competing with an owner operated firm. Overvest and Veldman (2008) study how an observable and verifiable contract that provides direct monetary incentives for cost reductions can overcome the problem that cost-reducing investments may not be publicly observable and thus cannot be used as strategic commitments. My model is complementary to the above studies.…”

Section: Related Literaturementioning

confidence: 99%

Managerial optimism and investment choice

Englmaier¹

2010

Manage Decis Econ

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This paper analyzes whether it might be desirable for a firm to hire an overoptimistic manager to commit to a certain R&D strategy. I consider a Cournot model with an ex-ante R&D stage where firms can invest in cost reduction before product market competition takes place. I show that firms want to hire overoptimistic managers and argue that a manager's type may serve as a substitute for strategic delegation via contracts. Copyright © 2010 John Wiley & Sons, Ltd.

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Section: Related Literaturementioning

confidence: 99%

Managerial optimism and investment choice

Englmaier¹

2010

Manage Decis Econ

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“…Incentives. Building an economic model of innovation that does justice to the various aspects is, quite obviously, an impossible task (Overvest and Veldman, 2008), and incentives are a highly debated area, where research shows both positive and negative effects on motivation for innovation. Incentives include both financial compensation and nonfinancial intrinsic and extrinsic incentives, but they have different effects on innovation , where the structure of a firm's human resource management HRM system itself functions as a nonfinancial motivation, and compensation may help to shape employee behaviors (Chadwick and Dabu, 2009).…”

Section: Team Perspectivementioning

confidence: 99%

Innovation Enablers for Innovation Teams - A Review

Johnsson

2017

jim

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This review consolidates research on innovation enablers for innovation teams, defined within this research as factors that enable a cross-functional team within an organization to conduct innovation work, to provide a deeper understanding of what factors enable innovation teams to conduct innovation work, which means that this research involves three areas to provide a holistic picture: the organizational context, the team itself, and the individuals within the innovation team. A systematic database search was conducted in which 208 relevant articles were identified and analyzed thematically way. Twenty innovation enablers related to innovation teams were identified: awareness, capabilities, climate, collaboration, culture, dedication, economy, education, empowerment, entre- / intrapreneurship, human resources, incentives, knowledge, knowledge management, management, mind-set, need, processes, strategy, and time. This review contributes to prior research a deeper understanding of what key factors enable innovative work for innovation teams. Suggestions of both academic and practical use for the identified innovation enablers are included in this review, and direction for future research is suggested.

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“…Hence, the optimal quality targets must be achieved by the supplier to obtain optimal profit sharing. Research on the provision of incentives in improving process performance is also done by Overvest and Veldman (2008). They proposed a managerial incentives model to managers who can deliver the innovation or improvement in process performance using Cournot competition scheme.…”

Section: Introductionmentioning

confidence: 99%

Product quality improvement model considering quality investment in rework policies and supply chain profit sharing

2019

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The aim of this paper is to develop an optimization model for quality improvement by considering quality investment in rework policies and supply chain profit sharing. To improve product's quality, the decision of process target and its tolerance is important since it directly affects the defective rate, manufacturing cost, and loss to customer due to the deviation of product from its specification. In this research, two rework policies are considered. In the first policy, the rework is done by using the same manufacturing facility, while in the second policy a new process facility was added for rework. Quality improvement in the supply chain environment is also necessary. Hence, profit sharing system is added in the model to strengthen the commitment of the suppliers in improving component quality. In the system, the manufacturer shares the profits to the supplier if the supplier can meet or exceed the quality target specified by the manufacturer. A comparison is given to determine the best quality improvement policy between those two policies considering profit sharing system. From the results of the optimization, the managers can make economic investment decision economically to correct a defective product through cost optimization model and to choose the best option toward the goal of least unit production cost. By using this model, the decision-maker can evaluate any quality investment in order to achieve significant financial return.

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Managerial incentives for process innovation

Cited by 17 publications

References 12 publications

Managerial optimism and investment choice

Managerial optimism and investment choice

Innovation Enablers for Innovation Teams - A Review

Product quality improvement model considering quality investment in rework policies and supply chain profit sharing

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