How Entrepreneurs Solve the Big Fish vs. Big Pond Dilemma

by Henning Piezunka, INSEAD Assistant Professor of Entrepreneurship and Family Enterprise

Collaboration with a partner is not strictly a two-way affair; instead, prospective partners take the entire competitive landscape into account when forming ties.

In the movie Jerry Maguire, a sports agent played by Tom Cruise is fired from his top agency after openly criticising its impersonal approach. He is forced to go it alone, but all his clients desert him, preferring to continue to be represented by a large, established organisation. That is, all except American footballer Rod Tidwell (played by Cuba Gooding Jr), who feels his career could use more personalised attention.

While movie-goers know that, indeed, things end well for Tidwell, an important question remains: When striking a partnership, is it better to be a big fish in a small pond, or a small fish in a big pond? In a paper published in the Academy of Management Journal, my co-authors* and I looked at the particular case of developers and publishers of PlayStation2 (PS2) video games, at a time when self-publishing of titles was not yet an option and developer-publisher ties were necessary to commercialise a game. We found that the level of experience of developers and the relative uncertainty they faced in terms of getting personalised attention from a publisher were driving much of their decision to seek a certain “pond” size.

Two conflicting goals requiring a trade-off

Akin to the book industry with its authors and publishing houses, the video game industry involves developers that propose game concepts and initial development, and publishers that provide late-stage development and access to markets. Out of the 163 PS2 games which have sold more than 1 million units, only 30 were published directly by Sony, the manufacturer of the console.

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How to embrace the new world of hybrid work

By: Julie Cook Ramirez

|Even as concerns over the Delta COVID variant continue to rise, many organizations are confident the worst of the pandemic is behind us and are rapidly planning for the long-awaited “return to work.” While some CEOs are expecting that to mean a return to the traditional office setting, it’s becoming increasingly obvious that many companies are going to be adapting to a “more flexible, forgiving work environment,” according to a new report by the Josh Bersin Academy.

“CEOs and their very top executive teams are accustomed to having face-to-face interactions with people, so their expectation is that the recovery from the pandemic will be a big reentry into the offices,” says Josh Bersin, founder and dean of the Josh Bersin Academy and a keynoter at the upcoming HR Technology Conference who will explore the future of hybrid work in a free webinar on July 21. “Employees are saying, ‘Wait a minute, I was very productive during the last year-and-a-half and I’d like to keep doing what I’m doing,’ so there’s a bit of a tug of war going on.”

Once considered code for “not working,” Bersin says, the pandemic broke the stigma of working from home and taught employers that it can work. As the job market grows more competitive, employers are having to reevaluate their attitude toward remote work. Already, points out Bersin, the second-most-common “location” for job postings on LinkedIn is “remote.”

Yet, not all organizations are sold on the idea of an entirely remote workforce. Consequently, many are looking to a hybrid work environment where employees work in the office on certain days and remotely on others. In the Hybrid Work Playbook, researchers write that there’s no clear model for this new world of hybrid work. However, simply “repurposing legacy policies on remote work” is unlikely to be sufficient.

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Overcoming the class ceiling at work

By Adi Gaskell

A couple of years ago I wrote about the value of having a workforce with a high degree of class diversity. The article focused on what are referred to as “social class transitioners,” who are people that have managed to progress between socioeconomic classes during their life, and it emerged that those who were able to do that brought particular value to the workplace.

“People who transition between classes can learn to relate to people in a more skilled way, and they are incredibly helpful in groups, as they can understand people from all walks of life,” argue researchers from the University of Virginia Darden School of Business. “However, it can also be an exhausting and even isolating experience for that person.”

Emerging early
This is far from easy to achieve, however, not least as Yale research shows that class bias can emerge as soon as we open our mouths. The study examined job interview scenarios and found that someone’s class and socioeconomic status can be discerned within the first few seconds of them opening their mouth. What’s more, the study shows that these snap judgments then impact the candidates that hiring managers prefer, with those from higher social classes picked more frequently than their working-class peers.

“Our study shows that even during the briefest interactions, a person’s speech patterns shape the way people perceive them, including assessing their competence and fitness for a job,” the researchers explain. “While most hiring managers would deny that a job candidate’s social class matters, in reality, the socioeconomic position of an applicant or their parents is being assessed within the first seconds they speak — a circumstance that limits economic mobility and perpetuates inequality.”

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Safeguards Employers, Don’t Bring the Wrong Things Back to Work

By Paul Block

Here’s what you should be doing as you plan your office reopening or develop a hybrid workplace if you want to keep your employees happy.

Mixing Business and Pleasure for Competitive Advantage

by Ella Miron-Spektor, INSEAD Associate Professor of Organisational Behaviour, and Moran Lazar, PhD candidate at Technion – Israel Institute of Technology

A recent study shows how entrepreneurial team formation can be improved by combining two established strategies.

Entrepreneurship is a major driver for economic and technological advancement. However, we also know that about 90 percent of start-ups fail early. If this staggering percentage of initiatives fail before they get off the ground, we may have missed the next Amazon, the next Google or the next Facebook. Many opportunities fail prematurely because the start-up team cannot perform properly. Yet there hasn’t been much research about the initial phase of entrepreneurial development.

Our work focuses on this initial stage when entrepreneurial teams are formed. Existing literature examines teams that already exist and perform, like most teams in organisations that are assembled by either the team leader or the HR business partners. Unlike entrepreneurial teams, they are usually not self-formed.

From our previous research, we know that the team makeup is the magic bullet in entrepreneurship. But why does a particular team formation strategy result in more successful start-ups? Building a team around not only skill sets but also personal affinity creates a special kind of team. Most entrepreneurial teams are either created from an interpersonal attraction based on a dense (and closed) social network or bound by the search for specific resources, i.e. to fill knowledge gaps. Combining these two strategies into a dual strategy is both difficult and rare. Yet we and our co-authors* found in our recent work, forthcoming in the Academy of Management Journal, that applying this dual strategy to an entrepreneurial team formation yields considerable competitive advantage at the initial stages of a firm. Continue reading