research@hec - Issue #7 - (Page II)

why Collaborate? Business and Research: AVANT-GARDE SUBJECT MATTER Wolfgang Ulaga works closely with the heads of B2B enterprises for two reasons: 1) Topic relevance: studies should focus on subjects that will not only have an impact in the world of research but also in the world of business and management. “Managers participating in an executive education program said that the challenges of B2B sales were keeping them up at night,” Ulaga relates. “We realized there was little academic research available on the topic and therefore launched a study. We have already written an article on it for the HBR, and we are currently preparing another one for an academic journal.” 2) Data quality: given the very real competition among researchers for publication in leading academic journals, high quality data is a minimum requirement. Working with companies gives you access to valuable information, which, combined with data garnered from other research and monitoring initiatives, provides you with a solid foundation for first-rate, internationally valid research. Researchers from a wide range of backgrounds share this perspective. Ulrich Hege, for instance, studies corporate finance. While some of his research has been highly theoretical and involved complex notions like game theory and intertemportal optimization, others have depended on direct interaction with business leaders, like his studies on capital risk, private equity, and share transfer. research COLLABORATION IS ESSENTIAL, BUT EXPECTATIONS HAVE TO BE MET Although the question would appear to be a little surprising, we decided to put it to several HEC Paris researchers, to enlighten anyone who’s ever wondered how management research is conducted. Do academic researchers truly need to collaborate with business organizations? And if so, why? hec According to Marco Tortoriello, studies of organizational behavior, decision-making methods, and strategy development are fundamentally dependent on communication with business leaders. Otherwise, research will inevitably suffer from a lack of critical insight. There is, in fact, every reason to collaborate on a research project with a company, provided everyone’s expectations are taken into account. Researchers’ needs have to be met and company members’ concerns addressed. For example, while a research project should not be confused with a consulting mission, constructive feedback from researchers is always welcome! As far as François Derrien is concerned, collaboration between business and science brings obvious advantages, but there are also inherent drawbacks to the relationship. “French companies are generally skeptical about the academic world’s ability to generate practical knowledge about management,” he says. “When they accept to collaborate (more precisely, when collaboration is financed by a grant, for instance), companies expect researchers to provide them with low-cost advice. These are potentially dangerous expectations, because this is not the type of value that we can contribute.” REMEMBER THE END CUSTOMER The researchers “Management research is ultimately intended for business people; they are our principal ‘end customers’,” Hege comments. “On the other hand, most of our articles are written for academic journals and read by our peers rather than business leaders. This is why knowledge generated by research only becomes genuinely valuable when it is also diffused through learning programs, non-academic journals, and the influence of subsequent research projects… It is also important to remember that companies are not our only target; management research is also intended to reach legislators and the general public.” I • Wolfgang ULAGA is associate professor of Marketing • François DERRIEN is associate professor of Finance and Economy • Marco TORTORIELLO is assistant professor of Strategy and Business Policy • Ulrich HEGE is assistant professor of Finance II research@hec • February - March 2009

Table of Contents for the Digital Edition of research@hec - Issue #7

Cover & Table of contents
Business and Research: why Collaborate?
Are Biotechs Profitable?
An Initial Evaluation of the Better Regulation Initiative
The Impact of Religions on Risk-Taking in United States

research@hec - Issue #7