IMD business school for management and leadership courses
The “tragedy of the horizon” captures the gap between long-horizon climate damages and the shorter horizons of corporate decision-making. We provide a contracting account of this idea using a deliberately standard CARA-normal moral-hazard model. Under full commitment, the optimal linear contract can condition on long-horizon outcomes; horizon mi…
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Business model innovation (BMI) is critical for firms’ long-term survival under environmental dynamism and depends heavily on CEOs’ cognition. While Socioemotional Wealth (SEW) explains why family CEOs may resist or engage in BMI, it largely assumes homogeneous responses under similar environmental conditions. Upper echelons theory (UET), in tur…
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Over the past years profound changes in the public sentiment and policy environment suggest the beginning of a new era with reversal attitudes towards globalization. Deglobalization which is commonly defined as the process of decreasing interdependence among nations has recently become the focus of scholarly attention with particular interest on…
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