nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2017‒04‒02
five papers chosen by
Arvi Kuura
Tartu Ülikool

  1. The wisdom of the crowd in funding: : Information heterogeneity and social networks of crowdfunder By F.H.J. Polzin; H.S. Toxopeus; F.C. Stam
  2. Prizes versus Contracts as Incentives for Innovation By Che, Yeon-Koo; Iossa, Elisabetta; Rey, Patrick
  3. I love my work but how do I make sense of it? The role of emotions in hybrid organizations By Virginie Svenningsen; Eva Boxenbaum
  5. Entrepreneurial Ecosystems By F.C. Stam; Ben Spigel

  1. By: F.H.J. Polzin; H.S. Toxopeus; F.C. Stam
    Abstract: Crowdfunding has enabled large crowds to fund innovative projects. This type of funding might tap into the wisdom of crowds who were previously disconnected from the funding process. We distinguish between in-crowd and out-crowd funders (with and without ties to project creators) in order to test for heterogeneity in their information use. Based on the analysis of a large-scale survey amongst project funders, this paper shows that in-crowd investors rely more on information about the project creator than out-crowd investors. Out-crowd investors do not seem to attach more importance to information about the project itself than in-crowd investors, except in the case of donation-based crowdfunding. For financial-return crowdfunding, financial information becomes less important once a strong relationship with the project creator is established. Our study allows project creators to target information to specific audiences based on their relationship strength across different types of crowdfunding projects
    Keywords: Crowdfunding, social networks, new ventures, entrepreneurial finance, information asymmetries
    Date: 2016–12
  2. By: Che, Yeon-Koo; Iossa, Elisabetta; Rey, Patrick
    Abstract: Procuring an innovation involves motivating a research effort to generate a new idea and then implementing that idea effciently. If research efforts are unverifiable and implementation costs are private information, a trade-ooff arises between the two objectives. The optimal mechanism resolves the tradeoff via two instruments: a monetary prize and a contract to implement the project. The optimal mechanism favors the innovator in contract allocation when the value of innovation is above a certain threshold, and handicaps the innovator in contract allocation when the value of innovation is below that threshold. A monetary prize is employed as an additional incentive but only when the value of innovation is suffciently high.
    Keywords: Contract rights; Inducement Prizes; innovation; Procurement and R&D.
    JEL: D44 D82 H57 O31 O38 O39
    Date: 2017–03
  3. By: Virginie Svenningsen (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Eva Boxenbaum (Copenhagen Business School - CBS - Copenhagen Business School [Copenhagen], CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Despite the growing literature on hybrid organizations, little attention has been paid to the micro-processes that sustain their functionality, especially the role of emotions in individuals' efforts to cope with hybrid complexity. We empirically examine, through a case study in the renewable energy sector, how individuals relate emotionally to potentially divergent components of hybrid organizations. Drawing on the literature on psychological bonds and the findings from our case study, we develop a framework that specifies how individuals engage emotionally with the challenges of working in a hybrid organization. Based on this study, we argue that individuals are more likely to succeed in combining or integrating multiple demands when they establish psychological bonds of a medium level intensity to multiple components of a hybrid organization. In contrast, psychological bonds of low or high level intensity tend to undermine their capacity and/or motivation to cope emotionally with hybrid organizations. This framework sheds light on the affective engagement that, in combination with cognitive sensemaking, enables individuals to cope with, and navigate, the inherent paradoxes of working in a hybrid organization.
    Keywords: Hybrid organizations,institutions 2,emotions
    Date: 2015–07–02
  4. By: Saad Al Jandal
    Abstract: Kuwait Institute for Scientific Research (KISR) has commissioned a number of research projects to carry out techno-economic assessments of clean energy power generation options, including efficient fossil fuel (ff) thermal and renewable energy (RE) plants. The objective of the assessments is to explore the potential capabilities and ranks of different clean technologies in meeting future energy demand in Kuwait. KISR, in close collaboration with the Kuwait National Nuclear Energy Committee (KNNEC), Ministry of Electricity & Water (MEW) and Kuwait Petroleum Corporation (KPC), completed the development of a TIMES-VEDA Kuwait Power and Water model (KPW). The multi-sector model was used to investigate future scenarios for power generation involving cost effect fossil fuel switching and RE energy technology options. The KPW model was constructed to represent the projected demands; the existing and planned power generation, and water desalination plants within the energy system of Kuwait. The representation included; the expected retirement of existing plants, future ff prices and availability. This was extended to include parameters for comparing assumed lower demand growth, lower oil and gas prices, higher RE costs or lower availability, RE capacity credit and higher plant investment costs under a levelized cost of electricity (LCOE) optimization approach. The TIMES-VEDA KPW model time horizon covers the period from 2008 (the base year) and extending out to 2050, with emphasis focusing on the period of 2010 to 2030. The model identifies least-cost energy system configurations that satisfy all of the system constraints. The analysis shows that RE technologies provide complimentary fuel saving and emission reductions to fossil technology. The 2030 cost-effective electrical power generation share is 10%, given the projected costs for RE technologies. Increasing the RE target share to 20%, increases the 2030 costs by US8.3 billion. Higher capacity credit for solar PV and CSP technologies with storage increases the cost-effective RE shares to more than 9% and results in slightly higher investment in those technologies. RE, thus, contributes to fuel and emissions savings without necessarily compromising the reliability of the power system, seeing that the excess capacity already in place by the time it comes in. This paper presents the overview concept of establishing the KPW model and its construction approach. It discusses details of the methodology for conducting policy analysis, and a summary of the case study results related scenario analysis conducted during the modeling process. see above see above
    Keywords: Kuwait, Energy and environmental policy, Modeling: new developments
    Date: 2015–07–01
  5. By: F.C. Stam; Ben Spigel
    Abstract: This paper reviews and discusses the emergent entrepreneurial ecosystem approach. Entrepreneurial ecosystems are defined as a set of interdependent actors and factors coordinated in such a way that they enable productive entrepreneurship within a particular territory. The purpose of this paper is to critically investigate the emerging literature on entrepreneurial ecosystems. Current work on ecosystems is underdeveloped, focusing more on superficial generalizations based on successful case studies such as Silicon Valley or Boulder, Colorado rather than on rigorous social science research. The paper provides a review of the multiple definitions of ecosystems found within the literature, and discusses the relationships between ecosystems and allied concepts such as industrial districts, clusters, and innovation systems. The paper concludes by discussing an integrative model that connects the functional attributes of entrepreneurial ecosystems (including framework conditions and systemic conditions) with entrepreneurial outputs and welfare outcomes. The framework conditions consist of the social (informal and formal institutions) and physical conditions enabling or constraining human interaction. Systemic conditions are the heart of the ecosystem and include networks of entrepreneurs, leadership, finance, talent, knowledge, and support services.
    Date: 2016–11

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