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Case from journal
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Reference no. IJEE1-3CS1
Subject category: Entrepreneurship
Published by: Senate Hall Academic Publishing
Published in: "International Journal of Entrepreneurship Education", 2003

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).

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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).

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