Kelley School of Business, INDIANAPOLIS, Ind.—The Strategic Management Society (SMS, StrategicManagement.net) recently elected as
president Marjorie Lyles, professor of international strategic management at the Kelley School of Business and OneAmerica Chair in Business Administration. Lyles will be the first female president in the society’s 33-year history.
“It was an election of the membership, which is quite an honor,” said Lyles, of the 3,000-member international society, with members from more than 80 countries and which publishes the highly influential Strategic Management Journal (SMJ), as well as numerous other publications. “I am looking forward to proudly representing the Kelley School of Business in this leadership role.”
The first female management professor at the Kelley School of Business, Lyles has authored more than 100 articles and chapters. Sun Yat-sen University in China recently nominated Lyles for the prestigious Chang Jiang Scholar Award, the Chinese government’s highest award to scholars. In 2011, she received from Indiana University the John W. Ryan Award for her distinguished contributions to international programs, teaching and research.
“Professor Lyles has built her career on in-depth knowledge of business in countries across the globe,” said Idalene Kesner, interim dean of the Kelley School and the Frank P. Popoff Chair of Strategic Management. “Her extensive contributions to strategic management and international business have furthered the Kelley brand. As a member of the Strategic Management Society, I am particularly enthusiastic about the fact that the first female president is from the Kelley School of Business.”..
Strategic Management Journal research article
Issue Volume 33, Issue 10, pages 1115–1134, October 2012
Luis Diestre (IE Business School) Nandini Rajagopalan (USC Marshall press release)
We examine how new biotechnology firms (NBFs) select pharmaceutical firms as R&D allies as a function of value creation and value appropriation considerations. We develop a theoretical framework to understand partnering decisions accounting for both, a potential partner's ability as well as incentives to appropriate and create value within an R&D alliance. Our empirical findings show that NBFs are more likely to ally with pharmaceutical firms with the ability to create value, as long as these firms have the incentives to use their skills to create rather than appropriate value. Our study highlights the double-edged sword nature of value creation skills and provides a deeper understanding into the contextual factors that determine when potential R&D partners will perceive such skills as increasing appropriation risks.
Copyright © 2012 John Wiley & Sons, Ltd.
www.e-award.org/web/2012_Kathleen_M_Eisenhardt
Presentation Article.pdf(134 kB) Biography.pdf (36 kB) Prize lecture ppt.pdf (50 kB)Kathleen Eisenhardt is widely known for her work on strategy, strategic decision making, and innovation in rapidly changing and highly competitive markets. She has also pioneered in building theories from case study research. Even though only a portion of Eisenhardt’s work can be directly and explicitly labeled as ‘entrepreneurship’ research, she has made significant contributions to this relatively new and rapidly evolving field. Her main contribution to the entrepreneurship field is her work on ‘corporate entrepreneurship’ – how existing organizations can remain innovative, including through new venture creation.
Eisenhardt’s work links the domain of entrepreneurship research to the fields of dynamic capabilities, strategy and decision making processes, and organization theory and design. She has examined how established organizations can introduce a continuous stream of novel products and services through better new product development processes as well as more efficient ways of organizing their activities. She has also looked at how ‘strategic decisions’ are taken, especially with respect to how new ventures are formed and how they forge linkages with competitors, how they grow and survive through innovation as well as by shaping the rules of competition.
In sum, Kathleen Eisenhardt has made substantial, original and influential contributions both theoretically and empirically that establish entrepreneurship research more solidly in both the management and the economics literature.
See a short summary from the 2012 Award Ceremony.
Richard A. D’Aveni is the Bakala Professor of Strategy at the Tuck School of Business at Dartmouth College and author of Strategic Capitalism: The New Economic Strategy for Winning the Capitalist Cold War (McGraw-Hill; 1 edition (July 31, 2012), 304 pages)
With the rise of China as an economy, a question hangs in the air: Can America beat state capitalism? The evidence is not encouraging. The U.S. has lost millions of jobs to the Chinese. It will lose millions more if China, as it proposes, turns itself into a high-tech giant in critical industries ranging from telecommunications to aviation.
The rise of state capitalism has put the U.S. at a competitive disadvantage. State capitalism operates with zero-sum rules, in which one country gains as another loses. This is hardball competition, dog eat dog. And the Chinese dog is eating the American one in products ranging from cell phones to steel.
Zero-sum capitalism is not the form of capitalism U.S. policymakers see as the challenge in global markets. U.S. policymakers are guided instead by the idea of a win-win world. When everyone trades freely, business expands across the board. Every country wins. This free-market, open-trade approach is enshrined in the World Trade Organization...
Dada la escasez de datos en el debate sobre la #independencia, donde hay mucho en juego, actualizo mapas de comercio: ow.ly/eIV9Y
— Pankaj Ghemawat (@PankajGhemawat) October 24, 2012
Ghemawat Catalonia maps
Professor of Ocean Physics, and Head of the Polar Ocean Physics Group in the Department of Applied Mathematics and Theoretical Physics, University of Cambridge.
The Guardian, 17 September 2012
Prof Peter Wadhams calls for “urgent” consideration of new ideas to reduce global temperatures.
As sea ice shrinks to record lows, Prof Peter Wadhams warns a 'global disaster' is now unfolding in northern latitudes
The Arctic ice cap is melting - and with it goes our future - The Irish Times, September 12, 2012
Winston Churchill: "The truth is incontrovertible, malice may attack it, ignorance may deride it, but in the end; there it is"
“The extra radiation that’s absorbed is, from our calculations, the equivalent of about 20 years of additional CO2 being added by man,” Prof Wadhams said.Let’s hope Hollande was lying to get elected
by INSEAD Finance Professor Theo Vermaelen
François Hollande has promised to promote growth by increasing government spending such as hiring 60,000 more “fonctionnaires” and creating 150,000 government subsided jobs for young people. He will increase the minimum wage, shorten the retirement age and increase taxes, including essentially confiscating salaries above 1 million euros and punishing the “enemy” (increase taxes on the financial sector). He also will not sign the European fiscal treaty without a commitment to spend more European tax payers’ money. In my opinion this spells disaster for France as well as for Europe. France and Europe need the opposite strategy: reducing government spending and encouraging growth through the private sector by lowering taxes and social charges, as well as introducing labour market reforms to introduce labour market flexibility including the possibility to fire government bureaucrats.
The election also sends a disturbing message to politicians all over Europe: if you endorse fiscal responsibility and attack the European Social Model, you are likely to lose your job. Restructuring government finances, which essentially means creating short-term pain in order to promote long-term gain, is not obvious in a democracy. Too many people are addicted to the “free” lunches handed out by the massive growth of government witnessed during the last 50 years.
Financial Market Impact
If the much-hated financial market believes that Hollande is serious, French interest rates will rise, and the deficit will increase. Ambitious people will refrain from investing and working in a country hostile to income inequality (inevitable consequence and driver of economic success) and as a result unemployment will rise as well. It is unlikely that Europe and the euro can survive another economic basket case after the PIGS (economies of Portugal, Italy, Greece and Spain). Some of my more optimistic colleagues argue that when Hollande witnesses the failures of his policies, he will make a U-turn as Mitterrand did in the early 1980s. But I am afraid this will be too little too late. In 1980 the French government debt was 20 percent of GDP, while today it is 80 percent. What is more likely is that economic chaos will encourage the growth and influence of more extremist political parties, both on the right and the left, with unpredictable consequences.
Of course my pessimism is based on the assumption that Hollande will do what he said he will do. I am still hoping that he was simply lying to get elected.
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Plus Ca Change…
by INSEAD Economics Professor Antonio Fatas
From an economic point of view, the French election will probably not create much change. Some of François Hollande’s economic ideas are different from those of Sarkozy but not that different.
It is true that his election will add to the strength of the argument that austerity is not the way out for Europe (or the world). But he is not alone. The European Commission just admitted that they will be lenient when judging budget deficits given economic conditions; the IMF is advocating for being more pro-growth given the circumstances... so Hollande will be one more voice in that direction. As an economist, I think this is good for Europe and the world economy that we question the model that says that coordinated austerity is the solution - it is not!
Budgets and Taxes
Regarding the budget, Hollande has promised increased spending in some areas (education) and higher taxes for those with very high incomes. While some of his ideas might seem radical to many, we need to put them in perspective. His proposal to tax income above 1 million euros at a rate of 75 percent might sound completely out of touch with reality - but we have seen similar or even higher marginal tax rates in other countries before (Sweden or even the U.S. during the 1960s) with limited impact on growth. France today has a significantly lower marginal tax rate than a country like the U.K. (that recently raised the top marginal tax rate by about 10 percentage points). Having said that, he will face strong opposition and resistance and it is likely that he will not go as fast as he said he would. The reality of government budgets is one of continuous negotiation and juggling among the pressures of so many different groups.
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A Matter of Degree
by INSEAD Political Science Professor Douglas Webber
Don’t expect any fundamental changes in the nature and direction of French government policy, including European policy; instead, look for some differences of emphasis and degree.
François Hollande is bound by his election promises to push hard for changes (or additions to) the EU fiscal treaty. Over the last few weeks and months, an ever wider consensus has begun to develop to the effect that a fiscal policy of austerity alone will not solve the euro crisis. Most of the governments in southern Europe will welcome a stronger “growth” component in the treaty (or, for example, in a protocol attached to the treaty). Similar noises have been made in the last few days and weeks by the chairman of the ECB and the European Commissioner in charge of economic and monetary affairs. The German Social Democrats, who are likely to join the federal government after elections in September 2013, are pretty much on the same wave-length. I therefore expect Hollande and Merkel to reach some kind of compromise on this issue. Otherwise, as both leaders – and, for the most part, their respective parties - are basically pro-European, they are likely, despite likely initial frictions, to work together closely and quite well. They may actually reach a modus vivendi more quickly than Sarkozy and Merkel did. Their initial relations were very difficult and they never got on very well at a personal level.
Hollande vs Sarkozy
Hollande’s election platform in respect of fiscal policy differed from Sarkozy’s only by proposing that the French budget be balanced over a period of five rather than four years, that the deficit be reduced more by increasing taxation than public spending, and increasing taxation on very high income-earners. His biggest challenge will arise if and when economic growth is slower than anticipated and his government is forced either to increase taxation or cut spending more radically than his platform proposed. Given the renaissance of the radical Left in France (as shown by the quite high vote for Jean-Luc Mélenchon in the first round of the elections), he and his government may then find themselves torn in diametrically opposed directions by the international financial markets, on the one hand, and an important segment of his majority and the trade union movement, on the other. “Structural” reforms, such as those aimed at liberalising the labour market and making it easier for firms to hire and fire employees, will be politically well-nigh impossible.
First of all, of course, Hollande has to ensure that the Socialist Party and its allies win a majority in the Parliamentary elections in June. He will take some popular, largely “symbolic” decisions (such as cutting his and government ministers’ salaries) in the next few days and weeks to maximise the likelihood of this outcome. The Left would then control not only the presidency and both chambers of parliament, but also most French regions and most large cities, making it stronger in terms of the occupation of public office than it has been at any other point in French political history.
However, if the Eurozone crisis continues or, worse, deepens, Hollande’s honeymoon as president is likely to prove very short and the Left’s stranglehold on French politics ephemeral. If, after Sarkozy and the traditional Right, Hollande and the Socialists should also fail, the extreme right-wing National Front and its leader Marine Le Pen may emerge a lot stronger from elections in 2017 than they are already today. Then yesterday’s and next month’s elections will look in retrospect like a curtain-raiser to the main event, which would involve a fundamental transformation of the French – and with it, the European - political landscape.
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Antonio Fatas is Professor of Economics and the Portuguese Council Chaired Professor of European Studies. Theo Vermaelen is Professor of Finance and the Schroders Chaired Professor of International Finance and Asset Management. He is the Programme Director for Corporate Financial Strategy in Global Markets and Co-Director for Global Investors Workshop, part of INSEAD’s portfolio of executive education programmes. Douglas Webber is Professor of Political Science.
Webcasts: including "The Future of Globalisation" February 2012, Oxford Martin School, University of Oxford
IEDP article of 18 Apr 2012, "Financial Crisis - A World of Opportunity"
VIEWPOINT: Professor Ignacio de la Torre – Academic Director, Master in Finance Programs (blog), IE Business School.
Professor Ignacio de la Torre is bullish with optimism in spite of - even because of - the latest financial crises: “This provides us with a world of once-in-a-lifetime opportunities,” he says.
Speaking before a talk entitled Financial History: What Can We Learn from Our Mistakes? – the Director of IE’s Master in Finance Programs outlined the less well-documented ‘glass-half-full’ view of the on-going global financial turbulence.
Financial crises give rise to positive change: “Look at the US - in the 6 years after the banking crisis of the early 1980s the US economy went from being made up of 20% markets and 80% banks – to vice versa.” That was a big, positive change in just six years – brought about by a financial crash. “I’m optimistic about Europe today because countries will finally take on reforms they haven’t looked at in 60 years.”
A big opportunity for positive change for de la Torre is the chance to educate a new generation of socially responsible financiers – something that, in his role at IE Business School, he feels both duty-bound and well-positioned to do. Deciding what and what-not to teach young, soon-to-be influential financiers is a big responsibility and one of the big decisions he has made at IE is to take certain ‘long-term view’ modules – and make them compulsory for every finance student...
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