Subject category:
Entrepreneurship
Published by:
Senate Hall Academic Publishing
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Abstract
Many service organisations over the last few years have attempted to migrate, sometimes reluctantly and experimentally, from their traditional modus operandi (fee-for-service) to various forms of equity-for-service arrangements. The conversion to an equity-incentivised model could be both defensive (to retain human capital and/or slow down defections to start-up companies) and offensive (to generate new business from cash-poor, prospect-rich companies and leverage the firm''s core competencies). This case is designed for students to address the strategic, financial, and organisational issues of such equity-enabled arrangements, and to gain a better understanding of the underlying risks and benefits of such innovative service models. It also offers managerial guidance for effective implementation of equity-for-service arrangements. This case study has been peer reviewed by the editorial board of the International Journal of Entrepreneurship Education (IJEE).
About
Abstract
Many service organisations over the last few years have attempted to migrate, sometimes reluctantly and experimentally, from their traditional modus operandi (fee-for-service) to various forms of equity-for-service arrangements. The conversion to an equity-incentivised model could be both defensive (to retain human capital and/or slow down defections to start-up companies) and offensive (to generate new business from cash-poor, prospect-rich companies and leverage the firm''s core competencies). This case is designed for students to address the strategic, financial, and organisational issues of such equity-enabled arrangements, and to gain a better understanding of the underlying risks and benefits of such innovative service models. It also offers managerial guidance for effective implementation of equity-for-service arrangements. This case study has been peer reviewed by the editorial board of the International Journal of Entrepreneurship Education (IJEE).