Long-distance relocation of the whole of a company’s headquarters remains rare. Long-distance relocation of the offices of members of the top management team and of core functions such as finance and R&D, on the other hand, is becoming more common. The phenomenon is most clearly seen in small but highly internationalized economies such as Finland, […]
Subject: Decision Making
Digit Ratio Predicts Men’s Product Choices
The ‘2D:4D’ ratio — the ratio of the length of the index (2D) and the ring finger (4D) — is an established biomarker for the level of testosterone to which individuals were exposed before birth. It reliably differs by sex: on average, males have a lower digit ratio than females. (Their third finger tends to […]
IT Leadership: Shifting Mindsets to Add Value
In many organizations, IT is managed via a Chief Information Officer (CIO), who is given a budget and mandate and simply left to ‘get on with it!’ This may be because CEOs and boards want to concentrate on what they would consider as their core business and IT is just viewed as another business function, like […]
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HQ Controls and the Speed of Strategic Decision-Making
The speed at which strategic decision-making takes place in an organization has been identified by many researchers as a critical factor for performance. Competitive business environments, shortened life cycles and increasingly global markets have only enhanced the importance of decision-speed. In many organizations, however, decision-making at lower levels, such as in strategic business units (SBUs), […]
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How Price, Time and Functionality Affect Customers’ Choices
Consumers often have a choice between products that are convenient or easy- to-use and products that offer greater functionality but are less convenient. When making a purchase that involves a longer time frame, consumers are likely to choose functionality. They are willing, for example, to take the time to learn the sophisticated software that will let them digitize the […]
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Mothers of Invention: Companies that ‘Spawn’ New Enterprises
Entrepreneurial spawning — whereby an existing company gives birth to another company, founded by former employees — is prevalent in many new industries. (California’s Fairchild Semiconductor, for example, is ‘mother’ to a great many Silicon Valley semiconductor firms.) It’s also been the subject of numerous research papers: everything from the rationale and triggers for spin-outs […]
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Corporate Governance from the Bottom Up
Academics and practitioners have long known that without tight monitoring, CEOs of large public companies may take actions that are against the interests of their shareholders. The consensus has been that a strong board of directors, independent from management, provides checks and balances for executive power. Academic literature confirms that board independence improves governance — […]
Top flight talent? The Value of International Assignments
International assignments are generally viewed as a positive thing to do, something to aspire to, and given today’s more globalised world, this kind of experience should hasten your progress up the corporate ladder. It may not be as simple as that, according to research from Monika Hamori of IE Business School and Burak Koyuncu of […]
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Using Adaptive Decision-Making in Customer Management
Customers are considered a firm’s most important asset, and acquiring and retaining them is a vital concern for managers. But how exactly do managers make customer management decisions? According to the University of St. Gallen’s Dr. Johannes Bauer and his fellow researchers, little is known about the decision-making processes of individual managers when they are […]
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Money for Nothing: The Truth About Investment Consultants
Survey data from 2011 suggests investment consultants are hired by more than 90 per cent of retirement plan sponsors and that they advise on institutional assets of more than $13 trillion in the US. The costs to plan sponsors are considerable: ‘transition management’ fees are incurred when they move between funds. Are they getting value […]
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