Recent Submissions

  • Academic fashion and crowdfunding: How to explain the craze for crowdfunding as a research topic

    Le Pendeven, Benjamin; Bardon, Thibaut; Manigart, Sophie (2019)
    Since Dushnitsky and Klueter’s paper on “an e-Bay for ideas” (2011), academic research on crowdfunding as a research topic in entrepreneurial finance has witnessed an exponential growth. Currently, about 28% of all papers in entrepreneurial finance are about crowdfunding (Wattelgroth et al. 2018). The academic interest in crowdfunding as a research topic largely exceeds the economic significance of crowdfunding as a mode of financing since only a tiny fraction of new business ventures’ funding has been raised though crowdfunding worldwide. For example, equity crowdfunding represented only 1.6% of the venture capital industry (Massolution, 2016; EY 2016). Hence the question we want to investigate in our current project is “How can we explain the ‘craze’ for crowdfunding as an academic research topic in entrepreneurial finance?”
  • Are you part of the crowd? The role of socio-demographic and contextual characteristics for crowdfunding awareness

    Vaznyte, Egle; Andries, Petra; Manigart, Sophie (2019)
    Crowdfunding has become an alternative source of financing for entrepreneurial new ventures and social projects. While several studies have analysed the success factors of crowdfunding campaigns, and identifying and “tapping the right crowd” has been shown crucial in this respect, we still lack a basic understanding of the individuals who are in the crowd. This study aims to increase our understanding of the supply side of crowdfunding by focussing on individuals’ crowdfunding awareness. Integrating information processing theory with insights from financial literacy and institutional theory, and using a sample of 1,042 individuals in Flanders (Belgium), we find that individuals’ awareness of specific crowdfunding initiatives is very low. A favourable normative environment and a conducive environment increases an individual’s awareness of crowdfunding in general, and women tend to derive their crowdfunding awareness to a larger extent from these environmental characteristics than men.
  • Investment timing and the return on VC backed IPOs

    Manigart, Sophie; Mulier, Klaas; Verplancke, Frederik (2019)
    In this study we explain the returns obtained on venture capital (VC) investments in US companies that go public. Using a unique dataset of 1,921 investor-IPO returns, representing 564 IPOs, we show that later investments result in a higher return. This holds after controlling for observed and unobserved IPO company and VC investor characteristics. This is counterintuitive, as later investments should be less risky compared to early investments. We show that the positive relationship between investment timing and return can be explained by the VC’s reputation and the risk and uncertainty related to the IPO. The higher returns for late investments are obtained by high reputation VCs and on investments in more risky and uncertain IPOs. We exclude other possible explanations, such as IPO ratchets for late investors, exit pressure because of the relatively short VC fund lifespan cycle or by unexpected funding needs before IPO that expropriate early investors.
  • Examining the service engagement process in value co-creation in healthcare service delivery: A multi-level perspective

    Osei-Frimpong, K.; Wilson, A.; Lemke, Fred; Mclean, G. (2018)
    This study furthers our understanding of value co-creation, which has received little attention in the doctor-patient encounter relationship. We employed a quantitative survey method to shed light on factors driving this fundamental service aspect, followed up with a multilevel data analysis. These factors (assurance, social skills, doctor-patient orientation) from the doctor significantly strengthen the effects of the patient-level factors (trust, perceptual beliefs, interactions) on the service engagement and outcomes of the focal doctorpatient dyad. We establish the cross-level interactive effects at the group level of the focal dyad on service engagement. The findings suggest service engagement at the group level had no significant effect on patients’ perceived value. We provide new empirical insights to understand and operationalize these fundamental influencing factors of the value co-creation concept in a healthcare setting, and contribute to the value co-creation literature.
  • Experience 2.0 in Services

    Lemke, Fred; Qusay, Hamdan (2019)
  • Unveiling the whys and wherefores of customer helpful behaviours

    Katsaridou, Iliana; Lemke, Fred (2019)
    Customers may step out of their expected ‘role behavior’ to engage in ‘citizenship behaviours’. This role- change provides emotional and instrumental benefits to service employees (SEs). Although past research has acknowledged the veracity of this interesting phenomenon, the customers’ motivations and expectations for performing supportive actions that explicitly benefit service personnel remain unclear. This paper investigates both fundamental sources of such customer behaviours.
  • When supplier development initiatives fail: Exploring the causes of opportunism and unexpected outcomes

    Tran, P.; Lemke, Fred; Gorton, M. (2019)
    Buyers often seek to enhance the capabilities of their suppliers through supplier development initiatives. However, these initiatives are not always successful and may have unintended consequences. This study investigates a ‘dark-side’ of supplier-buyer relationships, specifically the link between supplier development initiatives and supplier opportunism. Agri-food supply chains in Vietnam is the context for the study. We employ an explorative, qualitative methodology, analysing data from 30 interviews with fruit and vegetable buyers. The findings identify different supplier development initiatives and the specific forms of opportunism that may arise from each. Attention is paid to strategies to curb opportunism.
  • The relationship between growth and profitability revisited - Exploring different modes of growth

    Weiss, Martin; Khoury, Theodore Andrew; Kreutzer, Markus (2019)
    Growth represents an essential element to the entrepreneurial journey as it reflects the recognition and pursuit of opportunities. However, despite prior research, the relationship between growth and profitability still remains illusive. With an attempt to inform a new understanding of this relationship, we examine its non-linear character through decomposing growth into organic and acquisitive modes and theorize the way in which these modes shape profitability. Further, we propose that these modes can affect profitability through their interaction with each other. We study these relationships with a panel of established German companies over 13 years to uncover an inverted U-shaped relation between growth and profitability, mainly driven by acquisitive growth, but organic growth has a declining positive effect. The interaction of both growth modes shows a negative impact of acquisitive growth on the positive performance effect of organic growth. Furthermore, we conduct post-hoc tests that reveal a contrast to how younger and smaller firms realize different trajectories of profitability depending on their mode of growth.
  • Excellence in management research: How universities support or destroy intellectual virtues

    Erden, Zeynep; Haefliger, S.; Wallin, M.; von Krogh, G.; Spaeth, S. (2019)
  • Informal leader emergence in self-managing teams

    Desmet, Lien; De Stobbeleir, Katleen (2018)
  • Targeted by an activist hedge fund, do the lenders care?

    Matthys, Thomas; Dahiya, Sandeep; Hallak, Issam (2018)
    Do banks worry about expropriation when an activist hedge fund targets their borrowers or are they reassured that their borrowers will perform better after such targeting? We study 1,435 events from 1996-2013 in which an activist targeted a US corporation to examine what happens to loan contract terms post-targeting. We find that banks charge a higher interest rate for loans made after the activist involvement compared to a matched sample of borrowers that were not targeted. However, we find that the initial stock price reaction to the announcement of an activist intervention is a strong predictor of post-target loan rates. Banks increase the loan rates for those targets that experience a strong positive stock price reaction. These findings suggest that banks adjust their loan pricing to reflect their concerns about wealth expropriation.
  • Targeted by an activist hedge fund, do the lenders care?

    Matthys, Thomas; Dahiya, Sandeep; Hallak, Issam (2018)
    Do banks worry about expropriation when an activist hedge fund targets their borrowers or are they reassured that their borrowers will perform better after such targeting? We study 1,435 events from 1996-2013 in which an activist targeted a US corporation to examine what happens to loan contract terms post-targeting. We find that banks charge a higher interest rate for loans made after the activist involvement compared to a matched sample of borrowers that were not targeted. However, we find that the initial stock price reaction to the announcement of an activist intervention is a strong predictor of post-target loan rates. Banks increase the loan rates for those targets that experience a strong positive stock price reaction. These findings suggest that banks adjust their loan pricing to reflect their concerns about wealth expropriation.
  • Targeted by an activist hedge fund, do the lenders care?

    Matthys, Thomas; Dahiya, Sandeep; Hallak, Issam (2018)
    Do banks worry about expropriation when an activist hedge fund targets their borrowers or are they reassured that their borrowers will perform better after such targeting? We study 1,435 events from 1996-2013 in which an activist targeted a US corporation to examine what happens to loan contract terms post-targeting. We find that banks charge a higher interest rate for loans made after the activist involvement compared to a matched sample of borrowers that were not targeted. However, we find that the initial stock price reaction to the announcement of an activist intervention is a strong predictor of post-target loan rates. Banks increase the loan rates for those targets that experience a strong positive stock price reaction. These findings suggest that banks adjust their loan pricing to reflect their concerns about wealth expropriation.
  • Greenhouse gas reduction and fair gain sharing in trusted collaborative networks

    Oussoren, Biance; Inghels, Dirk; Dullaert, Wout; Van Steendam, Tom; Boute, Robert (2018)

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