The risk of adverse selection and its management in the process of venture capital investment (The experience of Hungarian investors)

Venture capitalists can be regarded as financers of young, high-risk enterprises, seeking investments with a high growth potential and offering professional support above and beyond their capital investment. The aim of this study is to analyse the occurrence of information asymmetry between venture capital investors and entrepreneurs, with special regard to the problem of adverse selection. In the course of my empirical research, I conducted in-depth interviews with 10 venture capital investors. The aim of the research was to elicit their opinions about the situation regarding information asymmetry, how they deal with problems arising from adverse selection, and what measures they take to manage these within the investment process. In the interviews we also touched upon how investors evaluate state intervention, and how much they believe company managers are influenced by state support.

EU-s források a vállalkozások tőkeellátottságának javítására - A JEREMIE Kockázati Tőkeprogram (EU funds to improve the capitalization of the companies – JEREMIE Venture Capital Program)

A hazai kis- és középvállalkozások (kkv-k) tőkeellátottságának javítása meghatározó szerepet játszik fejlődésük előmozdításában. Jelen tanulmány az Új Széchenyi Terv (ÚSZT) keretében a vállalkozások rendelkezésére álló pénzügyi eszközök közül a kockázati tőke működését mutatja be. A fejlődésük növekedési ciklusában járó cégek mellett a korai életszakaszukban járó, innovatív tevékenységet folytató, gyors növekedésre képes, de forráshiányos vállalkozások finanszírozásában nyújthat segítséget Magyarországon a 2010-ben elindult JEREMIE Kockázati Tőkeprogram. Az állami és a privát tulajdonban levő piaci szereplők hazánkban újnak mondható együttműködése révén megvalósuló program a magyar kockázatitőke-piac kínálati oldalának bővítését szolgálja, abban az alsó (döntően az 1-1,5 millió EUR/tranzakció alatti) szegmensben, ahol a tisztán piaci alapon működő befektetők korlátozottabb szerepvállalása figyelhető meg, és így a piacon hiány jelentkezik. Az EU-s támogatások ezen új típusú felhasználási formája színesíti és kibővíti a vállalkozások számára elérhető pénzügyi eszközök körét és volumenét, fokozottabb mértékben érvényesül a piaci szemlélet, hiszen verseny van a forrásokért, és verseny van a források kihelyezését végző pénzügyi közvetítő szervezetek között is, mindezek mellett további magánforrások bevonását biztosítja, ösztönzőleg hat a cégek működésére, és a visszaforgó rendszer biztosítja a fenntarthatóságot, a források későbbi újbóli felhasználását is. _______ To improve the capitalization of the domestic small and medium-sized enterprises (SMEs) has a decisive role in promoting development. This study presents the operation of venture capital from the available business financial instruments of the New Széchenyi Plan. In Hungary the JEREMIE Venture Capital Program, which launched in 2010, can help in financing of the rapidly growth, innovative, early life stage companies besides the development cycle of growth companies. This program with new cooperation between the stateowned and private companies enlarge the supply-side of the Hungarian venture capital market, at that the bottom (mostly in the 1 to 1.5 million EUR / transaction below) segment, where can be observed the limited role of the purely market-based investors, and thus there is a shortage in the market. These new type application form of the EU supports enriches and expands the scope and volume of the available financial instruments for the enterprises, the market orientation prevails more broadly, because there is a competition for resources and there is a competition between the resources allocation financial intermediaries,in addition ensures further private resources.

Formalization of the informal venture capital market - Business angel networks and syndicates

Business angels are natural persons who provide equity financing for young enterprises and gain ownership in them. They are usually anonym investors and they operate in the background of the companies. Their important feature is that over the funding of the enterprises based on their business experiences they can contribute to the success of the companies with their special expertise and with strategic support. As a result of the asymmetric information between the angels and the companies their matching is difficult (Becsky-Nagy – Fazekas 2015), and the fact, that angel investors prefer anonymity makes it harder for entrepreneurs to obtain informal venture capital. The primary aim of the different type of business angel organizations and networks is to alleviate this matching process with intermediation between the two parties. The role of these organizations is increasing in the informal venture capital market compared to the individually operating angels. The recognition of their economic importance led many governments to support them. There were also public initiations that aimed the establishment of these intermediary organizations that led to the institutionalization of business angels. This study via the characterization of business angels focuses on the progress of these informational intermediaries and their ways of development with regards to the international trends and the current situation of Hungarian business angels and angel networks.

Elastic limit: The role of university-focused venture capital firms in extending knowledge and technology transfer

This paper has two main objectives. Firstly, to identify the role of the university-focused intermediaries, specifically UVCs, in order to explain how they interact at the early stage of USO creation, particularly regarding knowledge sharing. Secondly, to analyse whether they change their position once the USO is developed. This gives rise to two Research Questions: How does knowledge sharing occur in the dynamics of a university-based entrepreneurial ecosystem? And Do particular participants, such as UTTOs or UVCs, always occupy the same role and position within the university-based entrepreneurial ecosystem?

Venture Capital for University Spin-Outs Companies in the context of University-based Entrepreneurial Ecosystems: an International Comparison

The objectives are, firstly, to identify the role of the university-focused intermediaries, specifically University-focused Venture Capital Firms (UVCs), in order to explain how they interact at the early stage of University Spin-out Companies (USOs) creation, particularly regarding knowledge sharing. Secondly, to analyse whether they change their position once the USO is developed, in the context of the dynamics of a university-based entrepreneurial ecosystem.

Ownership Structure, Board Composition and Entrepreneurship : Evidence from Family Firms and Venture-Capital Backed Firms

The purpose of this article is to investigate how ownership structure, especially family and/or venture-capital involvement, as well as entrepreneurial activities, defined as strategic change and renewal, help explain the involvement of independent members on boards of directors. The CEOs of 2,455 small and medium-sized, private enterprises from practically all industries were contacted in a telephone survey, resulting in an exceptionally high response rate. The findings reveal that family firms are more reluctant to involve independent directors on their boards than non-family firms that presence of venture capitalists increases the frequency of independent board members and that ownership has an impact on board roles. The results do not support the hypothesised relationship that independent directors enhance entrepreneurial activities. One implication of our study is that the often-argued-for strategic contribution of outsiders to the boards in family firms may be overemphasised. Another implication is that family firms that choose to acquire additional capital should be aware that this could result in a change in the board composition and the loss of control of the business. However, new and external owners’ inclusion on the board seems to be negotiable since there are also venture capitalists that do not insist on board representation.

Three essays in control, entrepreneurship and innovation

One of the key emphases of these three essays is to provide practical managerial insight. However, good practical insight, can only be created by grounding it firmly on theoretical and empirical research. Practical experience-based understanding without theoretical grounding remains tacit and cannot be easily disseminated. Theoretical understanding without links to real life remains sterile. My studies aim to increase the understanding of how radical innovation could be generated at large established firms and how it can have an impact on business performance as most businesses pursue innovation with one prime objective: value creation. My studies focus on large established firms with sales revenue exceeding USD $ 1 billion. Usually large established firms cannot rely on informal ways of management, as these firms tend to be multinational businesses operating with subsidiaries, offices, or production facilities in more than one country. I. Internal and External Determinants of Corporate Venture Capital Investment The goal of this chapter is to focus on CVC as one of the mechanisms available for established firms to source new ideas that can be exploited. We explore the internal and external determinants under which established firms engage in CVC to source new knowledge through investment in startups. We attempt to make scholars and managers aware of the forces that influence CVC activity by providing findings and insights to facilitate the strategic management of CVC. There are research opportunities to further understand the CVC phenomenon. Why do companies engage in CVC? What motivates them to continue "playing the game" and keep their active CVC investment status. The study examines CVC investment activity, and the importance of understanding the influential factors that make a firm decide to engage in CVC. The main question is: How do established firms' CVC programs adapt to changing internal conditions and external environments. Adaptation typically involves learning from exploratory endeavors, which enable companies to transform the ways they compete (Guth & Ginsberg, 1990). Our study extends the current stream of research on CVC. It aims to contribute to the literature by providing an extensive comparison of internal and external determinants leading to CVC investment activity. To our knowledge, this is the first study to examine the influence of internal and external determinants on CVC activity throughout specific expansion and contraction periods determined by structural breaks occurring between 1985 to 2008. Our econometric analysis indicates a strong and significant positive association between CVC activity and R&D, cash flow availability and environmental financial market conditions, as well as a significant negative association between sales growth and the decision to engage into CVC. The analysis of this study reveals that CVC investment is highly volatile, as demonstrated by dramatic fluctuations in CVC investment activity over the past decades. When analyzing the overall cyclical CVC period from 1985 to 2008 the results of our study suggest that CVC activity has a pattern influenced by financial factors such as the level of R&D, free cash flow, lack of sales growth, and external conditions of the economy, with the NASDAQ price index as the most significant variable influencing CVC during this period. II. Contribution of CVC and its Interaction with R&D to Value Creation The second essay takes into account the demands of corporate executives and shareholders regarding business performance and value creation justifications for investments in innovation. Billions of dollars are invested in CVC and R&D. However there is little evidence that CVC and its interaction with R&D create value. Firms operating in dynamic business sectors seek to innovate to create the value demanded by changing market conditions, consumer preferences, and competitive offerings. Consequently, firms operating in such business sectors put a premium on finding new, sustainable and competitive value propositions. CVC and R&D can help them in this challenge. Dushnitsky and Lenox (2006) presented evidence that CVC investment is associated with value creation. However, studies have shown that the most innovative firms do not necessarily benefit from innovation. For instance Oyon (2007) indicated that between 1995 and 2005 the most innovative automotive companies did not obtain adequate rewards for shareholders. The interaction between CVC and R&D has generated much debate in the CVC literature. Some researchers see them as substitutes suggesting that firms have to choose between CVC and R&D (Hellmann, 2002), while others expect them to be complementary (Chesbrough & Tucci, 2004). This study explores the interaction that CVC and R&D have on value creation. This essay examines the impact of CVC and R&D on value creation over sixteen years across six business sectors and different geographical regions. Our findings suggest that the effect of CVC and its interaction with R&D on value creation is positive and significant. In dynamic business sectors technologies rapidly relinquish obsolete, consequently firms operating in such business sectors need to continuously develop new sources of value creation (Eisenhardt & Martin, 2000; Qualls, Olshavsky, & Michaels, 1981). We conclude that in order to impact value creation, firms operating in business sectors such as Engineering & Business Services, and Information Communication & Technology ought to consider CVC as a vital element of their innovation strategy. Moreover, regarding the CVC and R&D interaction effect, our findings suggest that R&D and CVC are complementary to value creation hence firms in certain business sectors can be better off supporting both R&D and CVC simultaneously to increase the probability of generating value creation. III. MCS and Organizational Structures for Radical Innovation Incremental innovation is necessary for continuous improvement but it does not provide a sustainable permanent source of competitiveness (Cooper, 2003). On the other hand, radical innovation pursuing new technologies and new market frontiers can generate new platforms for growth providing firms with competitive advantages and high economic margin rents (Duchesneau et al., 1979; Markides & Geroski, 2005; O'Connor & DeMartino, 2006; Utterback, 1994). Interestingly, not all companies distinguish between incremental and radical innovation, and more importantly firms that manage innovation through a one-sizefits- all process can almost guarantee a sub-optimization of certain systems and resources (Davila et al., 2006). Moreover, we conducted research on the utilization of MCS along with radical innovation and flexible organizational structures as these have been associated with firm growth (Cooper, 2003; Davila & Foster, 2005, 2007; Markides & Geroski, 2005; O'Connor & DeMartino, 2006). Davila et al. (2009) identified research opportunities for innovation management and provided a list of pending issues: How do companies manage the process of radical and incremental innovation? What are the performance measures companies use to manage radical ideas and how do they select them? The fundamental objective of this paper is to address the following research question: What are the processes, MCS, and organizational structures for generating radical innovation? Moreover, in recent years, research on innovation management has been conducted mainly at either the firm level (Birkinshaw, Hamel, & Mol, 2008a) or at the project level examining appropriate management techniques associated with high levels of uncertainty (Burgelman & Sayles, 1988; Dougherty & Heller, 1994; Jelinek & Schoonhoven, 1993; Kanter, North, Bernstein, & Williamson, 1990; Leifer et al., 2000). Therefore, we embarked on a novel process-related research framework to observe the process stages, MCS, and organizational structures that can generate radical innovation. This article is based on a case study at Alcan Engineered Products, a division of a multinational company provider of lightweight material solutions. Our observations suggest that incremental and radical innovation should be managed through different processes, MCS and organizational structures that ought to be activated and adapted contingent to the type of innovation that is being pursued (i.e. incremental or radical innovation). More importantly, we conclude that radical can be generated in a systematic way through enablers such as processes, MCS, and organizational structures. This is in line with the findings of Jelinek and Schoonhoven (1993) and Davila et al. (2006; 2007) who show that innovative firms have institutionalized mechanisms, arguing that radical innovation cannot occur in an organic environment where flexibility and consensus are the main managerial mechanisms. They rather argue that radical innovation requires a clear organizational structure and formal MCS.

Un modelo de relación entre los programas de innovación abierta y la creación de valor

En un mundo donde el cambio es constante y cada vez más vertiginoso, la innovación es el combustible que utilizan las empresas que permite su renovación constante y, como consecuencia, su supervivencia en el largo plazo. La innovación es sin dudas un elemento fundamental para determinar la capacidad de las empresas en crear valor a lo largo del tiempo, y por ello, las empresas suelen dedicar esfuerzos considerables y recursos de todo tipo para identificar nuevas alternativas de innovación que se adapten a su estrategia, cultura, objetivos y ambiciones corporativas. Una forma específica para llevar a cabo la innovación es la innovación abierta. Esta se entiende como la innovación que se realiza de manera conjunta con otras empresas o participantes del ecosistema. Cabe la aclaración que en este documento se toma la definición de ecosistema referida al conjunto de clientes, proveedores, competidores y otros participantes que interactúan en un mismo entorno donde existen posiciones de liderazgo que pueden cambiar a lo largo del tiempo (Moore 1996). El termino de innovación abierta fue acuñado por Henry Chesbrough hace algo mas de una década para referirse a esta forma particular de organizar la innovación corporativa. Como se observa en el presente trabajo la innovación abierta es un nuevo paradigma que ha capturado el interés académico y empresarial desde algo más de una década. Se verán varios casos de innovación abierta que se están llevando a cabo en diversos países y sectores de la economía. El objetivo principal de este trabajo de investigación es el de desarrollar y explicar un modelo de relación entre la innovación abierta y la creación de valor en las empresas. Para ello, y como objetivos secundarios, se ha investigado los elementos de un Programa de Innovación Abierta, los impulsores 1 de creación de valor, el proceso de creación de valor y, finalmente, la interacción entre estos tres elementos. Como producto final de la investigación se ha desarrollado un marco teórico general para establecer la conexión entre la innovación abierta y la creación de valor que facilita la explicación de la interacción entre ambos elementos. Se observa a partir de los casos de estudio que la innovación abierta puede abarcar todos los sectores de la economía, múltiples geografías y empresas de distintos tamaños (grandes empresas, pequeñas y medianas empresas, incluso empresas de reciente creación) cada una de ellas con distinta relevancia dentro del ecosistema en el que participan. Elementos de un Programa de Innovación Abierta La presente investigación comienza con la enumeración de los distintos elementos que se encuentran presentes en los Programas de Innovación Abierta. De esta manera, se describen los diversos elementos que se han identificado a través de la revisión de la literatura académica que se ha llevado a cabo. En función de una serie de características comunes, los distintos elementos se agrupan en cuatro niveles diferentes para lograr un mejor entendimiento de los Programas de Innovación Abierta. A continuación se detallan estos elementos § Organización del Programa. En primer lugar se menciona la existencia de una estructura organizativa capaz de cumplir una serie de objetivos establecidos previamente. Por su naturaleza de innovación abierta deberá existir cierto grado de interacción entre los distintos miembros que participen en el proceso de innovación. § Talento Interno. El talento interno asociado a los programas de innovación abierta juega un rol fundamental en la ejecución y éxito del programa. Bajo este nivel se asocian elementos como la cultura de innovación abierta y el liderazgo como mecanismo para entender uno de los elementos que explica el grado de adopción de innovación en una empresa. Estrechamente ligados al liderazgo se encuentran los comportamientos organizacionales como elementos diferenciadores para aumentar las posibilidades de creación de innovación abierta. § Infraestructura. En este nivel se agrupan los elementos relacionados con la infraestructura tecnológica necesaria para llevar a cabo el programa incluyendo los procesos productivos y las herramientas necesarias para la gestión cotidiana. § Instrumentos. Por último, se mencionan los instrumentos o vehículos que se utilizan en el entorno corporativo para implementar innovación abierta. Hay varios instrumentos disponibles como las incubadoras corporativas, los acuerdos de licenciamiento o las áreas de capital de riesgo corporativo. Para este último caso se hará una mención especial por el creciente y renovado interés que ha despertado tanto en el entorno académico como empresarial. Se ha identificado al capital de riesgo corporativo como un de los elementos diferenciales en el desarrollo de la estrategia de innovación abierta de las empresas ya que suele aportar credibilidad, capacidad y soporte tecnológico. Estos cuatro elementos, interactuando de manera conjunta y coordinada, tienen la capacidad de crear, potenciar e incluso desarrollar impulsores de creación de valor que impactan en la estrategia y organización de la empresa y partir de aquí en su desempeño financiero a lo largo del tiempo. Los Impulsores de Creación de Valor Luego de identificar, ordenar y describir los distintos elementos presentes en un Programa de Innovación Abierta se ha avanzado en la investigación con los impulsores de creación de valor. Estos pueden definirse como elementos que potencian o determinan la capacidad de crear valor dentro del entorno empresarial. Como se puede observar, se detallan estos impulsores como punto de interacción entre los elementos del programa y el proceso de creación de valor corporativo. A lo largo de la presente investigación se han identificado 6 impulsores de creación de valor presentes en un Programa de Innovación Abierta. § Nuevos Productos y Servicios. El impulsor de creación de valor más directo y evidente en un Programa de Innovación Abierta es la capacidad de crear nuevos productos y servicios dado que se relacionan directamente con el proceso de innovación de la empresa § Acceso a Mercados Adyacentes. El proceso de innovación también puede ser una fuente de valor al permitir que la empresa acceda a mercados cercanos a su negocio tradicional, es decir satisfaciendo nuevas necesidades de sus clientes existentes o de nuevos clientes en otro mercado. § Disponibilidad de Tecnologías. La disponibilidad de tecnologías es un impulsor en si mismo de la creación de valor. Estas pueden ser tanto complementarias como de apalancamiento de tecnologías ya existentes dentro de la empresa y que tengan la función de transformar parte de los componentes de la estrategia de la empresa. § Atracción del Talento Externo. La introducción de un Programa de Innovación Abierta en una empresa ofrece la oportunidad de interactuar con otras organizaciones del ecosistema y, por tanto, de atraer el talento externo. La movilidad del talento es una característica singular de la innovación abierta. § Participación en un Ecosistema Virtuoso. Se ha observado que las acciones realizadas en el entorno por cualquiera de los participantes también tendrán un claro impacto en la creación de valor para el resto de participantes por lo tanto la participación en un ecosistema virtuoso es un impulsor de creación de valor presente en la innovación abierta. § Tecnología “Dentro--‐Fuera”. Como último impulsor de valor es necesario comentar que la dirección que puede seguir la tecnología puede ser desde la empresa hacia el resto del ecosistema generando valor a partir de disponibilizar tecnologías que no son de utilidad interna para la empresa. Estos seis impulsores de creación de valor, presentes en los procesos de innovación corporativos, tienen la capacidad de influir en la estrategia y organización de la empresa aumentando su habilidad de crear valor. El Proceso de Creación de Valor en las Empresas Luego se ha investigado la práctica de la gestión basada en valor que sostiene la necesidad de alinear la estrategia corporativa y el diseño de la organización con el fin de obtener retornos financieros superiores al resto de los competidores de manera sostenida, y finalmente crear valor a lo largo del tiempo. Se describe como los impulsores de creación de valor influyen en la creación y fortalecimiento de las ventajas competitivas de la empresa impactando y alineando su estrategia y organización. Durante la investigación se ha identificado que las opciones reales pueden utilizarse como una herramienta para gestionar entornos de innovación abierta que, por definición, tienen altos niveles de incertidumbre. Las opciones reales aportan una capacidad para la toma de decisiones de forma modular y flexible que pueden aplicarse al entorno corporativo. Las opciones reales han sido particularmente diseñadas para entender, estructurar y gestionar entornos de múltiples incertidumbres y por ello tienen una amplia aplicación en los entornos de innovación. Se analizan los usos potenciales de las opciones reales como complemento a los distintos instrumentos identificados en los Programas de Innovación Abierta. La Interacción Entre los Programas de Innovación Abierta, los Impulsores de Creación de Valor y el Proceso de Creación de Valor A modo de conclusión del presente trabajo se puede mencionar que se ha desarrollado un marco general de creación de valor en el entorno de los Programas de Innovación Abierta. Este marco general incluye tres elementos fundamentales. En primer lugar describe los elementos que se encuentran presentes en los Programas de Innovación Abierta, en segundo lugar como estos programas colaboran en la creación de los seis impulsores de creación de valor que se han identificado y finalmente en tercer lugar como estos impulsores impactan sobre la estrategia y la organización de la empresa para dar lugar a la creación de valor de forma sostenida. A través de un Programa de Innovación Abierta, se pueden desarrollar los impulsores de valor para fortalecer la posición estratégica de la empresa y su capacidad de crear de valor. Es lo que denominamos el marco de referencia para la creación de valor en un Programa de Innovación Abierta. Se presentará la idea que los impulsores de creación de valor pueden colaborar en generar una estrategia óptima que permita alcanzar un desempeño financiero superior y lograr creación de valor de la empresa. En resumen, se ha desarrollado un modelo de relación que describe el proceso de creación de valor en la empresa a partir de los Programas de Innovación Abierta. Para ello, se han identificado los impulsores de creación de valor y se ha descripto la interacción entre los distintos elementos del modelo. ABSTRACT In a world of constant, accelerating change innovation is fuel for business. Year after year, innovation allows firms to renew and, therefore, advance their long--‐term survival. Undoubtedly, innovation is a key element for the firms’ ability to create value over time. Companies often devote considerable effort and diverse resources to identify innovation alternatives that could fit into their strategy, culture, corporate goals and ambitions. Open innovation refers to a specific approach to innovate by collaborating with other firms operating within the same business ecosystem.2 The term open innovation was pioneered by Henry Chesbrough more than a decade ago to refer to this particular mode of driving corporate innovation. Open innovation is a new paradigm that has attracted academic and business interest for over a decade. Several cases of open innovation from different countries and from different economic sectors are included and reviewed in this document. The main objective of this study is to explain and develop a relationship model between open innovation and value creation. To this end, and as secondary objectives, we have explored the elements of an Open Innovation Program, the drivers of value creation, the process of value creation and, finally, the interaction between these three elements. As a final product of the research we have developed a general theoretical framework for establishing the connection between open innovation and value creation that facilitates the explanation of the interaction between the two. From the case studies we see that open innovation can encompass all sectors of the economy, multiple geographies and varying businesses – large companies, SMEs, including (even) start--‐ups – each with a different relevance within the ecosystem in which they participate. Elements of an Open Innovation Program We begin by listing and describing below the items that can be found in an Open Innovation Program. Many of such items have been identified through the review of relevant academic literature. Furthermore, in order to achieve a better understanding of Open Innovation, we have classified those aspects into four different categories according to the features they share. § Program Organization. An organizational structure must exist with a degree of interaction between the different members involved in the innovation process. This structure must be able to meet a number of previously established objectives. § Internal Talent. Internal talent plays a key role in the implementation and success of any Open Innovation program. An open innovation culture and leadership skills are essential for adopting either radical or incremental innovation. In fact, leadership is closely linked to organizational behavior and it is essential to promote open innovation. § Infrastructure. This category groups the elements related to the technological infrastructure required to carry out the program, including production processes and daily management tools. § Instruments. Finally, we list the instruments or vehicles used in the corporate environment to implement open innovation. Several instruments are available, such as corporate incubators, licensing agreements or venture capital. There has been a growing and renewed interest in the latter, both in academia and business circles. The use of corporate venture capital to sustain the development of the open innovation strategy brings ability, credibility, and technological support to the process. The combination of elements from these four categories, interacting in a coordinated way, makes it possible to create, enhance and develop value creation drivers that may impact the company’s strategy and organization and affect its financial performance over time. The Drivers of Value Creation After identifying describing and categorizing the different elements present in an Open Innovation Program our research examines the drivers of value creation. These can be defined as elements that enhance or determine the ability to create value in the business environment. As can be seen, these drivers can act as interacting points between the elements of the program and the process of value creation. The study identifies six drivers of value creation that might be found in an Open Innovation Program. § New Products and Services. The more direct and obvious driver of value creation in any Open Innovation Program is the ability to create new products and services. This is directly related to the company’s innovation process. § Access to Adjacent Markets. The innovation process can also serve as a source of value by granting access to adjacent markets through satisfying new needs for existing customers or attracting new customers from other markets. § Availability of Technologies. The availability of technology is in itself a driver for value creation. New technologies can either be complementary and/or can leverage existing technologies within the firm. They can partly transform certain elements of the company’s strategy. § External Talent Strategy. Incorporating an Open Innovation Program offers the opportunity to interact with other organizations operating in the same ecosystem and can therefore attract external skilled resources. Talent mobility is a unique feature of open innovation. § Becoming Part of a Virtuous Circle. The actions carried out in the environment by any of its members will also have a clear impact on value creation for the other participants. Participation in a virtuous ecosystem is thus a driver for value creation in an open innovation strategy. § Inside--‐out Technology. Value creation may also evolve by allowing other firms in the ecosystem to incorporate internally developed under--‐utilized technologies into their own innovation processes. These six drivers that are present in the innovation process can influence the strategy and the organization of the company, increasing its ability to create value. The Value Creation Process Value--‐based management is the management approach that requires aligning the corporate strategy and the organizational design to create value and obtain sustained financial returns (at least, higher returns than its competitors). We describe how the drivers of value creation can enhance corporate advantages by aligning its strategy and organization. During this study, we were able to determine that real options can be used as managing tools in open innovation environments which, by definition, have high uncertainty levels. Real options provide capability for flexible and modular decision--‐making in the business environment. In particular, real options have been designed for uncertainty management and, therefore, they may be widely applied in innovation environments. We analyze potential uses of real options to supplement the various instruments identified in the Open Innovation programs. The Interaction Between Open Innovation Programs, Value Creation drivers and Value Creation Process As a result of this study, we have developed a general framework for value creation in Open Innovation Programs. This framework includes three key elements. We first described the elements that are present in Open Innovation Programs. Next, we showed how these programs can boost six drivers of value creation that have been identified. Finally, we analyzed how the drivers impact on the strategy and organization of the company in order to lead to the creation of sustainable value. Through an Open Innovation Program, value drivers can be developed to strengthen a company’s strategic position and its ability to create value. That is what we call the framework for value creation in the Open Innovation Program. Value drivers can collaborate in generating an optimal strategy that helps foster a superior financial performance and a sustained value creation process. In sum, we have developed a relationship model that describes the process of creating value in a firm with an Open Innovation Program. We have identified the drivers of value creation and described how the different elements of the model interact with each other.

Corporate governance kasvuyritysten rahoituskelpoisuuden nostamisen välineenä

Tutkimuksen tavoitteena oli selvittää, mitä corporate governance on nuorten yritysten kohdalla ja miten he sillä voivat parantaa omia tulevaisuuden kasvumahdollisuuksia. Tutkimuksessa haastateltiin Lappeenrantalaisia kasvuyrityksiä ja pääomasijoittajien edustajia, minkä avulla saatiin tietoa siitä, mikä on tämän hetken tilanne hyvän hallintotavan suhteen. Tutkielmassa tutkittiin eri osa-alueita, jotka tämänhetkisessä tilanteessa on yhdistetty yritysten hyvän hallintotavan mukaiseen toimintaan. Näistä asioista nostetaan esille ne peruslinjaukset, joita nuorten yritysten tulisi noudattaa, jottaheidän toimintansa noudattaisi hyvää hallintotapaa. Tämän lisäksi tutkitaan pääomasijoittamista. Tutkimuksessa käydään läpi Suomessa toimivat erityyppiset pääomasijoittajat, heidän käyttämänsä sijoitusprosessit ja - kriteerit sekä arvonmääritys. Tutkimuksessa myös käsitellään pääomasijoittamisen merkitystä nuorille yrityksille ja sitä, mitä kohdeyrityksen hyvä hallintotapa voi pääomasijoittajillemerkitä. Corporate governance mielletään vielä suurten yritysten asiaksi, muttase on myös selkeästi käännettävissä pienille yrityksille sopivaksi. Mitään yksiselitteistä suositusten listaa ei voida antaa, mutta tärkeämpää olisi saada nuoret yritykset miettimään ja panostamaan oman yrityksen hyvän hallintotavan mukaiseen toimintaan. Tämän avulla on mahdollista parantaa yrityksen toimintaedellytyksiä ja torjua uhkia.

The Role and Measurement of Social Capital in New Technology-Based Start-up Context

Tämän Pro gradu-tutkielman tavoitteena olirakentaa esiymmärrys sosiaalisen pääoman roolista ja mittaamisesta uuden teknologian start-up yrityksissä. Pääasiallisena tarkoituksena tässä tutkimuksessa olilöytää sosiaalisen pääoman ja start-up yrityksen tuloksellisuuden välille yhdistävä tekijä. Tutkimuksen empiirinen aineisto kerättiin pääasiallisesti kuuden OKO Venture Capitalin sijoitusportfolioon sisältyvien case-yritysten kvalitatiivisten teemahaastatteluiden sekä kvantitatiivisten kyselylomakkeiden avulla. Kvalitatiivisten haastatteluiden tulosten perusteella sosiaalisen pääoman ja tuloksellisuuden välille löytyi yhdistävä tekijä, jota käytettiin myöhemmin hyväksi kvantitatiivisessa kyselylomakkeessa. Tämän tutkielman tulokset osoittivat, että startegisen päätöksenteon kautta sosiaalinen pääoma vaikuttaa osittain start-up yritysten tuloksellisuuteen. Manageriaalisesti tärkempi löydös tässä tutkimuksessa oli kuitenkin se, että sosiaalista pääomaa voidaan käyttää hyväksi ennustettaessa uuden teknologian start-up yritysten tulevaisuuden kassavirtoja.

Research Ethics and Commercial Drug Development: When Integrity Threatens Profitability

Étude de cas / Case study

salud financiera y riesgo en los estados financieros de la empresa avianca del sector aeronautico

La globalización y la competitividad como realidad de las empresas, implica que los gerentes preparen a sus empresas de la mejor manera para sobrevivir en este mundo tan inestable y cambiante. El primer paso consta de investigar y medir como se encuentra la empresa en cada uno de sus componentes, tales como recurso humano, mercadeo, logística, operación y por último y más importante las finanzas. El conocimiento de salud financiera y de los riesgos asociados a la actividad de las empresas, les permitirá a los gerentes tomar las decisiones correctas para ser rentables y perdurables en el mundo de los negocios inmerso en la globalización y competitividad. Esta apreciación es pertinente en Avianca S.A. esto teniendo en cuenta su progreso y evolución desde su primer vuelo el 5 de diciembre de 1919 comercial, hasta hoy cuando cotiza en la bolsa de Nueva York. Se realizó un análisis de tipo descriptivo, acompañado de la aplicación de ratios y nomenclaturas, dando lugar a establecer la salud financiera y los riesgos, no solo de Avianca sino también del sector aeronáutico. Como resultado se obtuvo que el sector aeronáutico sea financieramente saludable en el corto plazo, pero en el largo plazo su salud financiera se ve comprometida por los riegos asociados al sector y a la actividad desarrollada.

Problemas de agência no relacionamento fundo de capital de risco - empreendedor no Brasil : um estudo de caso

Por meio de entrevistas com adnúnistradores de fundos de capital de risco e advogados com experiência em transação de investimentos em empresas, esta dissertação busca levantar os instrumentos/ações utilizados pelos fundos de capital de risco brasileiros para gerir os problemas de agência que surgem do seu relacionamento com os empreendedores da empresa investida. Elaborou-se, também, um estudo de caso de uma empresa brasileira, que recebeu investimentos de um fundo de capital de risco e chegou a uma situação pré-falimentar após duas etapas de investimento. A abordagem ao estudo de caso é feita à luz dos instrumentos/ações identificados na literatura e das entrevistas realizadas com os profissionais do mercado. O presente trabalho tenta explicar se algum dos instrumentos/ações estão relacionados a particularidades encontradas no ambiente de negócios brasileiro, e se os problemas de agência levantados na elaboração deste documento são barreiras ao desenvolvimento da indústria de private equity I venture capital no Brasil

Governança corporativa em pequenas e médias empresas brasileiras

A governança corporativa define um conjunto de regras que busca alinhar ação do agente em relação às decisões estratégicas da empresa, assim maximizando os benefícios gerados aos seus stakeholders, em especial aos acionistas. Para pequena média empresa demandante de recursos, tal ferramental extremamente importante para aumentar sua capacidade de captação dos recursos necessários ao seu crescimento desenvolvimento, uma vez que reduz assimetria informacional entre esta seus principais agentes financiadores: credores novos investidores. Esta dissertação visou compreender quais as principais questões de governança corporativa de pequenas médias empresas brasileiras, especialmente aquelas em expansão, buscando definir partir destas algumas contribuições das boas práticas de governança corporativa para esse segmento. Na revisão bibliográfica foram levantados, segundo teoria da agência e teorias complementares, os principais conceitos ligados governança corporativa. Também realizada uma análise destes conceitos segundo captação de recursos estrutura de capital da companhia, dado que pressupõe entrada de novos investidores credores. Para validação desse referencial foram realizadas entrevistas em profundidade com técnicos gestores das relacionados as atividades de venture private equity realizadas pela BNDESPAR. Por meio deste, foi possível definir, segundo os problemas suas causas, algumas diretrizes de melhores práticas de governança para pequenas médias empresas brasileiras.

Desenho de mecanismos para estratégia de inovação corporativa

As empresas que optam pela inovação como estratégia de crescimento desenvolvem projetos para a exploração de oportunidades em novos produtos, serviços e mercados. Tais projetos lidam com situações de alta assimetria de informação e, consequentemente, riscos de conflitos de interesses entre agente e principal. Para viabilizar a alocação de recursos em tal situação, a gestão de projetos dentro das organizações busca minimizar os custos de agência atuando diretamente na causa raiz. Ao financiar o empreendedorismo, o venture capital (VC) e sua versão corporativa, o corporate venturing (CV), lida com a assimetria de informação de uma forma diferente. Ao invés de diminuí-la diretamente, os VCs e os CVs implementam mecanismos que os permitem explorar situações de alta assimetria de informação, e ao mesmo tempo, controlar os custos de agência decorrentes desta. Quando comparado às práticas de gestão de projetos nas organizações, as práticas de seleção, financiamento, contratos, organização e incentivos empregadas na gestão de projetos de VCs e CVs constituem um desenho de mecanismo mais eficiente para o desenvolvimento do empreendedorismo. Ainda que cada um desses cinco componentes do mecanismo empregado pelos VCs e CVs possa ser identificado na gestão de projetos corporativos, nas organizações pesquisadas, não foi possível identificar a integração desses componentes promovendo um mecanismo coeso. A prática de financiamento de projetos é a que apresentou a maior diferença. O entendimento de como as práticas de gestão de projetos podem ser configuradas num desenho de mecanismo que viabiliza o trato da assimetria de informação, ao mesmo tempo em que minimiza seus efeitos indesejáveis em termos de custos de agência, oferece às organizações uma forma gerenciável de promover um ambiente corporativo onde o empreendedorismo possa florescer. Condição necessária para inovações de maior impacto.