Managers face the challenge of balancing resources needed to support value creation and value appropriation. In this study the authors analyze the impacts of innovation…
Managers face the challenge of balancing resources needed to support value creation and value appropriation. In this study the authors analyze the impacts of innovation investments (i.e. value creation: VC) on advertising expenditures (i.e. value appropriation: VA), and vice versa, and verify the effects of these options on short- and long-term performance.
The effects of these two activities on short- and long-term performance were analyzed observing a panel of 4,090 companies of Standard and Poor's Compustat database from a 40-year period. The authors adopted the panel vector autoregressive (VAR) approach, using the generalized method of moments (GMM).
Although there is a trade-off between the strategic emphases on creating and appropriating value, there is also a synergy between them. The results from the impulse response functions support the argument for a virtuous business circle: companies that choose to intensify their investments in R&D tend to increase advertising expenditures, and vice versa.
Managers, rather than having to deal with a trade-off between allocating resources either on VC or VA activities, can capitalize on synergetic benefits resulting from the interaction among them.
The relationship between the VC and VA activities transcends the trade-off imposed by resource restrictions, since the interaction between them creates additional benefits afforded by the synergy of these activities.
The relevance of regional security has increased in the wake of decolonization and the end of the Cold War. In a globalized and intertwined world, security can no longer…
The relevance of regional security has increased in the wake of decolonization and the end of the Cold War. In a globalized and intertwined world, security can no longer be conceived as having the state as its sole object or subject. Regional clusters of security have become a new paradigm in international relations, and a new wave of regionalist scholarship has arisen in response. However, although this body of work has devoted considerable attention to defining the elements that constitute each regional cluster, less attention has been given ascertaining how such clusters are formed. This exploratory chapter provides an extensive review of the relevant literature and draws two conclusions. First, it suggests that, as postulated by a large portion of the regional security literature, regions of security are a natural consequence of proximity, as threats travel more easily over short distances than over longer ones. Second, it extends that argument by arguing that security also clusters at the regional level when regions are targets of extra-regional threats (regions as objects), and when they gain ‘actorness’ and operate as agents of peace and security (regions as subjects).