Oliver M. Dürr, Markus Nisch, Anna Rohlfing-Bastian
{"title":"Incentive Provision and Optimal Team Size for Managing Innovation","authors":"Oliver M. Dürr, Markus Nisch, Anna Rohlfing-Bastian","doi":"10.2139/ssrn.2823108","DOIUrl":"https://doi.org/10.2139/ssrn.2823108","url":null,"abstract":"This paper analyzes a principal-agent-model with a principal, a manager, and a team of workers to investigate the incentive provision and optimal team size in a setting with uncertain productivity and team synergy effects which is typical for innovation environments. Workers are responsible for providing productive effort, whereas the manager performs monitoring and productivity risk-reducing efforts. We find that the incentive provision for productive and monitoring effort take the uncertain productivity into account, whereas the incentive provision for the productivity risk-reducing effort is independent of the risk level and the productivity. Furthermore, we find that the optimal team size depends on environmental factors and team effects, specifically, that increasing productivity risk requires smaller teams. Consequently, increasing project risk should be countervailed by downsizing the project instead of managing the risk. The interdependence between team size and incentive provision implies that organizational design and incentive design need to be optimized simultaneously.","PeriodicalId":163702,"journal":{"name":"2.3. Accounting and Corporate Decisions","volume":"96 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121720266","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Selective Information Sharing of a Multi-Product Manufacturer","authors":"Clemens Löffler","doi":"10.2139/ssrn.2815554","DOIUrl":"https://doi.org/10.2139/ssrn.2815554","url":null,"abstract":"This paper identifies strategic reasons for a multi-product manufacturer to selectively share information with its different suppliers. The traditional result in strategic ex-post disclosure settings is that a manufacturer wants to withhold good news from its suppliers, so that the suppliers will not increase their input prices, implementing the seminal \"unraveling\" result leading to full disclosure. In contrast, on account of the interdependencies arising from the multi-supplier-multi-product structure, we find that the manufacturer always discloses its information to one supplier but may concurrently withhold the same information from a second supplier, engaging in selective information sharing. Selective information sharing in this setting arises because a price change of a supplier affects multiple products that require the same input and affects the pricing decision the other supplier that delivers a complementary input, creating trade-offs in the manufacturer's disclosure preferences. Selective information sharing can arise even when the suppliers can exchange information among themselves.","PeriodicalId":163702,"journal":{"name":"2.3. Accounting and Corporate Decisions","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124260491","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}