• A dynamic theory of the use of management control systems in achieving alignment of strategic investment decisions with strategy

      Slagmulder, Regine (1995)
      This research explores how management control systems are designed and used in an organization to help align strategic investment decisions with the firm's strategy. It contributes to the stream of accounting research whose purpose is to shed light on the relationship between management control and strategy. The focus of this research is on the strategic investments in manufacturing plant and equipment because the capital investment in this area constitutes an important business activity over which effective control must be exercised to ensure the best possible quality of the firm's investment programmes.
    • Fair process perspectives on strategy creation

      Tackx, Koen (2015)
      In this dissertation, more efficient and effective methodologies of formulating and implementing strategy are elaborated, relying on the foundations of procedural justice theory, which states that when a decision-making process is considered “fair”, people to whom the process is applied demonstrate higher levels of trust and commitment.
    • On the effect of strategic industry factor innovation on incumbent reaction, survival, and performance

      Devoldere, Bart (2013)
      An industry is in constant evolution. Competitors, innovators, or other industry stakeholders can introduce new (hitherto ‘unknown’) resources or capabilities that increase the basis of competition in an industry. Resources and capabilities that form the basis of industry competition and that drive company performance are called ‘strategic industry factors’. The introduction of new resources or capabilities as strategic industry factors is called ‘strategic industry factor innovation’. However, there are also strategic industry factor innovations associated with ‘known’ resources and capabilities. When considering new business models like Netflix, Zara, Dell, iPod/iTunes, amongst many others, the innovation is not necessarily applying ‘new’ resources or capabilities to the industry. Instead, these examples show that new combinations of existing, ‘known’ resources and capabilities can also be difficult for incumbents to respond to.
    • Performance consequences of financial conglomeration with an empirical analysis in Belgium and the Netherlands

      Verweire, Kurt (1999)
      One of the most striking developments in the financial services industry over the past years has been the increasing convergence of banking and insurance. It is expected that this trend will still gain in importance all over the world. Given the new scope of competition, it has become extremely important for financial intermediaries to reassess their overall business strategies. This book presents some empirical evidence regarding the performance consequences of this new strategic direction. It concentrates on two main questions. Do financial conglomerates outperform specialized banks and specialized insurance companies? Are there significant differences in diversification approach of financial conglomerates and to what extent do these differences influence performance? These questions are theoretically answered and empirically illustrated in the book. For the empirical research, we have examined the Belgian and the Dutch financial services industry.
    • Three essays on competition policy and innovation incentives

      Kleer, Robin (2009)
      This thesis deals with the economics of innovation. In a general introduction we illustrate how several aspects of competition policy are linked to firms’ innovation incentives. In three individual essays we analyze more specific issues. The first essay deals with interdependencies of mergers and innovation incentives. This is particularly relevant as both topics are central elements of a firm’s competitive strategy. The essay focuses on the impact of mergers on innovative activity and competition in the product market. Possible inefficiencies due to organizational problems of mergers are accounted for. We show that optimal investment strategies depend on the resulting market structure and differ significantly from insider to outsider. In our linear model mergers turn out to increase social surplus. The second essay analyzes the different competitive advantages of large and small firms in innovation competition. While large firms typically have a better access to product markets, small firms often have a superior R&D efficiency. These distinct advantages immediately lead to the question of cooperations between firms. In our model we allow large firms to acquire small firms. In a pre-contest acquisition game large firms bid sequentially for small firms in order to combine respective advantages. Innovation competition is modeled as a patent contest. Sequential bidding allows the first large firms to bid strategically to induce a reaction of its competitor. For high efficiencies large firms prefer to acquire immediately, leading to a symmetric market structure. For low efficiencies strategic waiting of the first large firm leads to an asymmetric market structure even though the initial situation is symmetric. Furthermore, acquisitions increase the chances for successful innovation. The third essay deals with government subsidies to innovation. Government subsidies for R&D are intended to promote projects with high returns to society but too little private returns to be beneficial for private investors. Apart from the direct funding of these projects, government grants may serve as a signal of good investments for private investors. We use a simple signaling model to capture this phenomenon and allow for two types of risk classes. The agency has a preference for high risk projects as they promise high expected social returns, whereas banks prefer low risk projects with high private returns. In a setup where the subsidy can only be used to distinguish between high and low risk projects, government agency’s signal is not very helpful for banks’ investment decision. However, if the subsidy is accompanied by a quality signal, it may lead to increased or better selected private investments. The last chapter summarizes the main findings and presents some concluding remarks on the results of the essays