Silvia Ayuso - Miguel A . Rodríguez - Joan

In this paper we attempt to gain a deeper understanding of the firm’s ability to integrate stakeholder insights into the process of organisational innovation within the context of sustainable development. Given the early stage of empirical research on the topic, we used an exploratory case study of two Spanish companies that have successfully learned from stakeholder dialogue and have generated innovations that are beneficial both to the company and to sustainable development in general. The evidence from the two case studies suggests that there are two simple capabilities –stakeholder dialogue and stakeholder knowledge integration– for generating innovations in accordance with stakeholder needs. Whereas stakeholder dialogue leverages organisational resources that promote two-way communication, transparency and appropriate feedback to stakeholders, stakeholder knowledge integration relies on non-hierarchical structures, flexibility and openness to change. The paper sheds some light on the under-researched issue of linking stakeholder dialogue and sustainable innovation, and contributes to opening the ‘black box’ of dynamic capabilities and advancing in the understanding of this fundamental organisational concept. Toni Dávila Fernando Peñalva “Governance structure and the weighting of performance measures in CEO compensation”, Review of Accounting Studies, Vol. 11, No 4, December 2006, pages 463-493. Abstract: We empirically examine how governance structure affects the design of executive compensation contracts and, in particular, the implicit weights of firm performance measures in CEO compensation. We find that compensation contracts in firms with higher takeover protection and where the CEO has more influence on governance decisions put more weight on accounting-based measures of performance (return on assets) than on stockbased performance measures (market returns). In additional tests, we find that CEO compensation in these firms has lower variance and a higher proportion of cash (as opposed to stock-based) compensation. We further find that CEO incentives (measured as changes in CEO annual wealth, which includes changes in the value of CEOs’ equity holdings in addition to yearly compensation) do not vary across governance structures. These findings are consistent with the hypothesis that CEOs who work in firms with high takeover protection and who have more influence on governance negotiate different contracts. We empirically examine how governance structure affects the design of executive compensation contracts and, in particular, the implicit weights of firm performance measures in CEO compensation. We find that compensation contracts in firms with higher takeover protection and where the CEO has more influence on governance decisions put more weight on accounting-based measures of performance (return on assets) than on stockbased performance measures (market returns). In additional tests, we find that CEO compensation in these firms has lower variance and a higher proportion of cash (as opposed to stock-based) compensation. We further find that CEO incentives (measured as changes in CEO annual wealth, which includes changes in the value of CEOs’ equity holdings in addition to yearly compensation) do not vary across governance structures. These findings are consistent with the hypothesis that CEOs who work in firms with high takeover protection and who have more influence on governance negotiate different contracts. Johanna Mair Christian Seelos “Digital democracy”, European Business Forum, No 26, Autumn 2006, pages 59-61. Abstract: In December 2003 Rodrigo Baggio, founder and Executive Director of CDI, was reading a book about the history of Vila Isabel, a district of Rio de Janeiro. For Baggio this book had a special significance because it had been written by students of a school founded by CDI in Morro dos Macacos, a favela located in Vila Isabel. Rodrigo was very proud to see this. His dream –to create schools to teach computer skills to low-income communities– was now a reality. In fact, Rodrigo’s idea had been so successful that he and his team were wondering how CDI could grow and broaden its scope without sacrificing quality or losing sight of its original objective. In December 2003 Rodrigo Baggio, founder and Executive Director of CDI, was reading a book about the history of Vila Isabel, a district of Rio de Janeiro. For Baggio this book had a special significance because it had been written by students of a school founded by CDI in Morro dos Macacos, a favela located in Vila Isabel. Rodrigo was very proud to see this. His dream –to create schools to teach computer skills to low-income communities– was now a reality. In fact, Rodrigo’s idea had been so successful that he and his team were wondering how CDI could grow and broaden its scope without sacrificing quality or losing sight of its original objective. Francesc Prats Mónica Sánchez Núria Agell Gaizka Ormazabal “An evaluation method with imprecise information for multi-attribute decision Page