Vested: A Brave New World
- 2k Downloads
When we think of the great innovations that come our way, we might instinctively think of them as the product of a sudden brainstorm from an individual—a light bulb moment, if you will. But, in reality, good ideas can come from anywhere. Leading companies find that innovation is often produced over time with a lot of collective sweat equity. And that includes perspiring suppliers.
KeywordsNash Equilibrium Business Model Price Model Governance Structure Business Manager
Unable to display preview. Download preview PDF.
- 1.A. G. Lafley and Ram Charan, The Game-Changer: How You Can Drive Revenue and Profit Growth with Innovation (New York: Random House, 2008), pp. 13–36.Google Scholar
- 6.Chester L. Karrass, In Business as in Life, You Don’t Get What You Deserve, You Get What You Negotiate (Santa Monica, CA: Stanford Street Press, 1996), p. 1.Google Scholar
- 7.Kate Vitasek, Mike Ledyard, and Karl B. Manrodt, Vested Outsourcing: Five Rules That Will Transform Outsourcing (New York: Palgrave Macmillan, 2010), pp. 10–11.Google Scholar
- 9.Behavioral economics is the study of the quantified impact of individual behavior or of the decision makers within an organization. The study of behavioral economics is evolving more broadly into the concept of relational economics, which proposes that economic value can be expanded through positive relationships with mutual advantage (win-win) thinking rather than adversarial relationships (win-lose or lose-lose). Shared value thinking involves entities working together to bring innovations that benefit the parties—with a conscious effort that the parties gain (or share) in the rewards. Two advocates are Harvard Business School’s Michael E. Porter and Mark R. Kramer, who profiled their “big idea” in “Creating Shared Value,” Harvard Business Review (January–February 2011); https://hbr.org/2011/01/the-big-idea-creating-shared-value/ar/1; accessed January 28, 2015. The article states that shared value creation will drive the next wave of innovation and productivity growth in the global economy. Porter is renowned for his Five Forces model of competitive advantage. Due to his prominence, it is likely that his take on shared value, although focused on society, will cause practitioners to embrace shared value approaches.Google Scholar
- 10.John von Neumann and Oskar Morgenstern, Theory of Games and Economic Behavior (Princeton, NJ: Princeton University Press; 60th Anniversary Commemorative ed., 2007).Google Scholar
- 11.R. Axelrod and R. Dawkins, The Evolution of Cooperation, rev. ed. (New York: Basic Books, 2006).Google Scholar
- 14.This case study is an excerpt from Kate Vitasek, Karl Manrodt, and Jeanne Kling, Vested: How P&G, McDonald’s, and Microsoft Are Redefining Winning in Business Relationships (New York: Palgrave Macmillan, 2012), pp. 13–37.Google Scholar