Strategy

- November 2024
- Case
Helium: Crowdsourcing a National Telecom Network

By: Jorge Tamayo and Mahesh Ramakrishnan

In 2024, Helium is running a pilot to test pricing models for their innovative crowdsourcing approach to building out a national telecom network.
- November 2024
- Case
Helium: Crowdsourcing a National Telecom Network

By: Jorge Tamayo and Mahesh Ramakrishnan

In 2024, Helium is running a pilot to test pricing models for their innovative crowdsourcing approach to building out a national telecom network.
- November 5, 2024
- Article
The International Empirics of Management

By: Daniela Scur, Scott Ohlmacher, John Van Reenen, Morten Bennedsen, Nick Bloom, Ali Choudhary, Lucia Foster, Jesse Groenewegen, Arti Grover, Sjoerd Hardeman, Leonardo Iacovone, Ryo Kambayashi, Marie-Christine Laible, Renata Lemos, Hongbin Li, Andrea Linarello, Mika Maliranta, Denis Medvedev, Charlotte Meng, John Miles Touya, Natalia Mandirola, Roope Ohlsbom, Atsushi Ohyama, Megha Patnaik, Mariana Pereira-López, Raffaella Sadun, Tatsuro Senga, Franklin Qian and Florian Zimmermann

A country’s national income broadly depends on the quantity and quality of workers and capital. But how well these factors are managed within and between firms may be a key determinant of a country’s productivity and its GDP. Although social scientists have long studied the role of management practices in shaping business performance, their primary tool has been individual case studies. While useful for theory-building, such qualitative work is hard to scale and quantify. We present a large, scalable dataset measuring structured management practices at the business level across multiple countries. We measure practices related to performance monitoring, target-setting, and human resources. We document a set of key stylized facts, which we label “the international empirics of management”. In all countries, firms with more structured practices tend to also have superior economic performance: they are larger in scale, are more profitable, have higher labor productivity and are more likely to export. This consistency was not obvious ex-ante, and being able to quantify these relationships is valuable. We also document significant variation in practices across and within countries, which is important in explaining differences in the wealth of nations. The positive relationship between firm size and structured management practices is stronger in countries with more open and free markets, suggesting that stronger competition may allow firms with more structured management practices to grow larger, thereby potentially raising aggregate national income.
- November 5, 2024
- Article
The International Empirics of Management

By: Daniela Scur, Scott Ohlmacher, John Van Reenen, Morten Bennedsen, Nick Bloom, Ali Choudhary, Lucia Foster, Jesse Groenewegen, Arti Grover, Sjoerd Hardeman, Leonardo Iacovone, Ryo Kambayashi, Marie-Christine Laible, Renata Lemos, Hongbin Li, Andrea Linarello, Mika Maliranta, Denis Medvedev, Charlotte Meng, John Miles Touya, Natalia Mandirola, Roope Ohlsbom, Atsushi Ohyama, Megha Patnaik, Mariana Pereira-López, Raffaella Sadun, Tatsuro Senga, Franklin Qian and Florian Zimmermann

A country’s national income broadly depends on the quantity and quality of workers and capital. But how well these factors are managed within and between firms may be a key determinant of a country’s productivity and its GDP. Although social scientists have long studied the role of management practices in shaping business performance, their...
- October 2024
- Case
Tonik

By: Andy Wu, Maliha Malek Quadir and Aticus Peterson

This case study examines Tonik, the first digital bank in the Philippines, as it navigates the challenges of scaling its lending operations and achieving profitability in an evolving fintech landscape. It explores Tonik's journey from its launch in 2018 to early 2024, highlighting the company's innovative approach to digital banking, its rapid deposit growth, and its struggles to fine-tune its lending products. Key themes include the tension between growth and profitability, regulatory challenges, and the strategic decisions faced by founder Gregory Krasnov in balancing investor expectations with market realities. The case provides insights into the complexities of digital banking in emerging markets and the broader fintech funding environment.
- October 2024
- Case
Tonik

By: Andy Wu, Maliha Malek Quadir and Aticus Peterson

This case study examines Tonik, the first digital bank in the Philippines, as it navigates the challenges of scaling its lending operations and achieving profitability in an evolving fintech landscape. It explores Tonik's journey from its launch in 2018 to early 2024, highlighting the company's innovative approach to digital banking, its rapid...

About the Unit

The Strategy unit studies firms as competitors in an economic landscape. Key issues include: the development and effectiveness of firm strategy at both a business and corporate level; the analysis of the competitive environment; and the sustainability of strategy over time.

Our research, course development, and teaching draws on multiple disciplines, including economics, sociology, and political science, and focuses on both domestic and global competition. The objective of the work is to generate findings and develop concepts that will help managers improve their strategic decisions while advancing the state of knowledge in the academic study of strategy and related disciplines.

Recent Publications

Helium: Crowdsourcing a National Telecom Network

By: Jorge Tamayo and Mahesh Ramakrishnan

November 2024 |
Case |
Faculty Research

In 2024, Helium is running a pilot to test pricing models for their innovative crowdsourcing approach to building out a national telecom network.

Keywords: Networks; Telecommunications Industry; United States

Citation

Educators

Epic Games: Nineteen Eighty-Fortnite (B)

By: Andy Wu and Ronald Wang

November 2024 |
Supplement |
Faculty Research

In a significant ruling on April 24, 2023, the U.S. Court of Appeals for the Ninth Circuit upheld portions of the district court’s decision against Epic Games back in September 2021. However, Apple’s anti-steering provisions, which restricted app developers from including links that directed users to external payment platforms, were ruled unfair under the Sherman Antitrust Act and California’s Competition Law.1 Both Epic and Apple sought to appeal this decision,2 but the Supreme Court declined to take the case.3 Apple changed its App Store policies to comply with the ruling: it now permits developers to link to external payment sites while charging a reduced general fee of 27% or 12% for developers in the App Store Small Business Program, compared to the previous 30%.4 Epic claimed that Apple’s new payment structure still violated the court order.

Citation

The International Empirics of Management

By: Daniela Scur, Scott Ohlmacher, John Van Reenen, Morten Bennedsen, Nick Bloom, Ali Choudhary, Lucia Foster, Jesse Groenewegen, Arti Grover, Sjoerd Hardeman, Leonardo Iacovone, Ryo Kambayashi, Marie-Christine Laible, Renata Lemos, Hongbin Li, Andrea Linarello, Mika Maliranta, Denis Medvedev, Charlotte Meng, John Miles Touya, Natalia Mandirola, Roope Ohlsbom, Atsushi Ohyama, Megha Patnaik, Mariana Pereira-López, Raffaella Sadun, Tatsuro Senga, Franklin Qian and Florian Zimmermann

November 5, 2024 |
Article |
Proceedings of the National Academy of Sciences

A country’s national income broadly depends on the quantity and quality of workers and capital. But how well these factors are managed within and between firms may be a key determinant of a country’s productivity and its GDP. Although social scientists have long studied the role of management practices in shaping business performance, their primary tool has been individual case studies. While useful for theory-building, such qualitative work is hard to scale and quantify. We present a large, scalable dataset measuring structured management practices at the business level across multiple countries. We measure practices related to performance monitoring, target-setting, and human resources. We document a set of key stylized facts, which we label “the international empirics of management”. In all countries, firms with more structured practices tend to also have superior economic performance: they are larger in scale, are more profitable, have higher labor productivity and are more likely to export. This consistency was not obvious ex-ante, and being able to quantify these relationships is valuable. We also document significant variation in practices across and within countries, which is important in explaining differences in the wealth of nations. The positive relationship between firm size and structured management practices is stronger in countries with more open and free markets, suggesting that stronger competition may allow firms with more structured management practices to grow larger, thereby potentially raising aggregate national income.

Keywords: Performance Productivity; Economy; Management Practices and Processes

Citation

Find at Harvard

Tonik

By: Andy Wu, Maliha Malek Quadir and Aticus Peterson

October 2024 |
Case |
Faculty Research

This case study examines Tonik, the first digital bank in the Philippines, as it navigates the challenges of scaling its lending operations and achieving profitability in an evolving fintech landscape. It explores Tonik's journey from its launch in 2018 to early 2024, highlighting the company's innovative approach to digital banking, its rapid deposit growth, and its struggles to fine-tune its lending products. Key themes include the tension between growth and profitability, regulatory challenges, and the strategic decisions faced by founder Gregory Krasnov in balancing investor expectations with market realities. The case provides insights into the complexities of digital banking in emerging markets and the broader fintech funding environment.

Keywords: Banking Industry; Financial Services Industry; Technology Industry; Philippines

Citation

Educators

Generative AI and the Nature of Work

By: Manuel Hoffmann, Sam Boysel, Frank Nagle, Sida Peng and Kevin Xu

2024 |
Working Paper |
Faculty Research

Recent advances in artificial intelligence (AI) technology demonstrate considerable potential to complement human capital intensive activities. While an emerging literature documents wide-ranging productivity effects of AI, relatively little attention has been paid to how AI might change the nature of work itself. How do individuals, especially those in the knowledge economy, adjust how they work when they start using AI? Using the setting of open source software, we study individual level effects that AI has on task allocation. We exploit a natural experiment arising from the deployment of GitHub Copilot, a generative AI code completion tool for software developers. Leveraging millions of work activities over a two year period, we use a program eligibility threshold to investigate the impact of AI technology on the task allocation of software developers within a quasi-experimental regression discontinuity design. We find that having access to Copilot induces such individuals to shift task allocation towards their core work of coding activities and away from non-core project management activities. We identify two underlying mechanisms driving this shift - an increase in autonomous rather than collaborative work, and an increase in exploration activities rather than exploitation. The main effects are greater for individuals with relatively lower ability. Overall, our estimates point towards a large potential for AI to transform work processes and to potentially flatten organizational hierarchies in the knowledge economy.

Keywords: Generative Ai; Digital Work; Open Source Software; Knowledge Economy; AI and Machine Learning; Open Source Distribution; Organizational Structure; Performance Productivity; Labor

Citation

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Edizione

By: Cynthia A. Montgomery, Dante Roscini, Elena Corsi and Hugo Etchegoyhen

October 2024 |
Case |
Faculty Research

This case study examines the diversification and transformation of Edizione, the Benetton family's holding company originally established to reinvest dividends from the Benetton clothing brand. Edizione expanded significantly in the late 1990s and early 2000s, particularly through the acquisition of public assets, including Italy's highway network. The company faced a major crisis when a bridge under its management collapsed, resulting in the deaths of 43 people. Under the leadership of Alessandro Benetton, the second generation of the family took control and steered the company through the crisis. They sold the highway business to the Italian government, successfully resisted a hostile takeover, and implemented new governance structures to guide the company's future. The case study asks students what is left of the family legacy and how should the holding manage its assets in the future, in particular if it should sell the loss-making Benetton fashion brand.