The 80/20 rule: Corporate support for innovation by employees

Krasteva, Silvana; Sharma, Priyanka; Wagman, Liad

doi:10.1016/j.ijindorg.2014.11.002

Cited by 15 publications

(7 citation statements)

References 26 publications

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“…In this regard, our analysis more closely maps the theoretical works of Krasteva et al (2015) and Campbell et al (2015), who show that compliance costs and data regulation, respectively, can create barriers to entry and may thus hurt innovation. In particular, Campbell et al (2015) show that though privacy regulation imposes costs on all firms, it is small firms and new firms that are most adversely affected, particularly for goods where the price mechanism does not mediate the effect, such as the advertising-supported internet.…”

Section: Literature Reviewmentioning

confidence: 53%

“…In particular, Campbell et al (2015) show that though privacy regulation imposes costs on all firms, it is small firms and new firms that are most adversely affected, particularly for goods where the price mechanism does not mediate the effect, such as the advertising-supported internet. Krasteva et al (2015) show that as the costs of compliance by small firms increase, more innovations will be developed within established firms. 5 As far as health-related data regulation, using variations in state medical privacy laws, Tucker (2009, 2011) show that privacy regulations restricting a hospital's release of patient information significantly reduced the adoption of electronic medical records.…”

Section: Literature Reviewmentioning

confidence: 99%

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The Short-Run Effects of GDPR on Technology Venture Investment

Jia

Jin

Wagman

2018

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The General Data Protection Regulation (GDPR) came into effect in the European Union in May 2018. We study its short-run impact on investment in new and emerging technology firms. Our findings indicate negative post-GDPR effėcts on EU ventures, relative to their US counterparts. The negative effects manifest in the overall dollar amounts raised across funding deals, the number of deals, and the dollar amount raised per individual deal.

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Section: Literature Reviewmentioning

confidence: 53%

Section: Literature Reviewmentioning

confidence: 99%

The Short-Run Effects of GDPR on Technology Venture Investment

Jia

Jin

Wagman

2018

Self Cite

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“…Most companies account for 80% of the income coming from 20% of customers, which indicates that a group of 20% of clients generates 80% of a company's business. This 20% of clients bring four times more traffic than the other 80% [18][19][20]. This principle is known as the Pareto principle.…”

Section: Literature Overviewmentioning

confidence: 99%

Development of a Business Model by Introducing Sustainable and Tailor-Made Value Proposition for SME Clients

et al. 2019

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Due to the combination of vast technology trends brought by Industry 4.0, present-day consumers need and stiff global competition and require businesses from across many industries to constantly innovate. Clients request multifaceted support from manufacturers and service providers while the transition towards new symbiotic ecosystems disrupts traditionally established processes in some sectors. This is largely happening in the global automotive industry where in-car and around-the-car services with asset-sharing concepts are taking a dominant role rather than plain vehicles sales and car ownership. In our paper, we investigate the possibilities of new and improved business collaborations between a car retailer operating in several European countries and its SME (small and medium-sized enterprises) customers across various sectors currently owning car fleets of at least five vehicles. We test several hypotheses and conduct a systematic statistical analysis of the proposed business model’s aspects on the sample of almost 200 SMEs from five countries in Southeast Europe. By using the χ2 test and a one-tailed t-test we tested both frequency data and the continuous variables. Research indicates that SMEs look for new ways to organize their fleet management strategy more efficiently and thus more precisely plan associated costs. Regardless of the country of origin, SMEs want to explore a business model with more introduced to their fleet management and are ready to accept new technologies for fleet management operations.

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“…A unique but underemphasized feature of spinouts, especially as it relates to their formation and performance, is the importance of underlying selection processes. Spinouts start as ideas generated by employees at their parents (Bernardo et al, 2009), but these ideas can potentially also be selected by parents for internal implementation (Krasteva et al, 2015). Indeed, theories of spinout formation feature such selection (Cassiman & Ueda, 2006; Nikolowa, 2014; Pakes & Nitzan, 1983), typically modeling two stages.…”

Section: Introductionmentioning

confidence: 99%

Incidence and performance of spinouts and incumbent new establishments: Role of selection and redeployability within parent firms

Balasubramanian

Sakakibara

2023

Strategic Management Journal

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Research SummaryUsing matched employer‐employee data from 30 U.S. states covering a wide range of industries, we compare spinouts with new establishments formed by incumbents (INEs). We propose a selection‐based framework comprising idea selection by parents to internally implement ideas as INEs, entrepreneurial selection by founders to form spinouts, and exit selection to close ventures. Consistent with parents choosing better ideas in the idea selection stage, we find that INEs perform relatively better than spinouts, and more so with larger parents. Regarding the entrepreneurial selection stage, we find evidence consistent with resource requirements being a greater entry barrier to spinouts. Parents' resource redeployment opportunities are associated with lower relative survival of INEs, consistent with their being subject to greater selection pressures in the exit selection stage.Managerial SummarySpinouts, or new ventures started by employees leaving a parent firm, have received special attention because spinouts tend to outperform other types of new firms. This superior performance is typically attributed to the better knowledge and higher‐quality ideas developed by the founders at parent firms. However, parent firms can also select and implement such ideas internally, particularly if they are good quality ideas. We compare spinouts with new establishments formed within parent firms and find that consistent with such a process of selection, the latter outperform spinouts, more so in the case of larger parents. Interestingly, new establishments of parent firms tend to close at a greater rate than spinouts, consistent with parent firms being able to redeploy resources elsewhere within their firms.

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The 80/20 rule: Corporate support for innovation by employees

Cited by 15 publications

References 26 publications

The Short-Run Effects of GDPR on Technology Venture Investment

The Short-Run Effects of GDPR on Technology Venture Investment

Development of a Business Model by Introducing Sustainable and Tailor-Made Value Proposition for SME Clients

Incidence and performance of spinouts and incumbent new establishments: Role of selection and redeployability within parent firms

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