Harbir Singh - Faculty Research in Knowledge@Wharton

The Problem with Financial Incentives -- and What to Do About It

Wed, 30 Mar 2011 14:25:28 EST

Bonuses and stock options often improve performance. But they can also lead to unethical behavior, fuel turnover and foster envy and discontent. In this opinion piece, Wharton management professors Adam Grant and Jitendra Singh argue that it is time to cut back on money as a chief motivational force in business. Instead, they say, employers should pay greater attention to intrinsic motivation. That means designing jobs that provide opportunities to make choices, develop skills, do work that matters and build meaningful interpersonal connections.

Playing on a Global Stage: Asian Firms See a New Strategy in Acquisitions Abroad and at Home

Wed, 28 Apr 2010 14:56:07 EST

Asia has become the world's hottest arena for mergers and acquisitions. European and American companies are seeking a larger presence in the world's fastest-growing economies even as Asian companies with strong local currencies and ample credit are pushing to enter new markets or consolidate existing ones at home. Indeed, during the first quarter, Asian M&A activity more than doubled from a year earlier while activity in the United States and Europe declined. Yet the growth of Asian M&A is likely to have its rough patches, too, including legal barriers and foreign ownership restrictions, according to Wharton faculty and others.

The Road to China: Fresh Insights into the World's Fastest-growing Economy

Wed, 09 Dec 2009 17:18:52 EST

Earlier this year, Harbir Singh, Wharton’s vice-dean for Global Initiatives, launched a series of trips to foreign countries as a way for faculty to gain a deeper understanding of international economies and then use this knowledge in their teaching and research. Six professors recently visited the Chinese cities of Beijing, Shanghai and Shenzhen, and met with executives from Lenovo, Haier and Huawei, among other companies. Knowledge@Wharton asked three of the participants – Singh, management professor Saikat Chaudhuri and health care management professor Rob Burns – to share insights from their trip.

Innovation: Sometimes It Takes a Village

Wed, 24 Jun 2009 16:27:19 EST

Companies have formed alliances and strategic partnerships for hundreds of years, but experts gathered for a recent conference at Wharton's Mack Center for Technological Innovation said such connections are more important than ever in a fast-changing business environment. Still, because more innovation networks fail than succeed, companies may have to alter their culture to make these critical alliances work.

Big Deal(s): What's Driving the M&A Frenzy?

Wed, 24 Jan 2007 15:35:11 EST

2006 set a record for mergers and acquisitions worldwide. Deals totaled $3.79 trillion, 38% higher than in 2005, and 55 of the transactions were valued at more than $10 billion each, according to data from Thomson Financial. Private equity firms were major movers in this trend, responsible for 20% of global M&A activity and 27% of activity in the U.S., according to Thomson. How long will this M&A binge continue, and when it does come to an end, what will be the factors behind the retreat? Knowledge@Wharton asked management professor Harbir Singh, an expert on corporate acquisitions and restructuring, to offer his views on the M&A landscape.

Is Indian Business Ready for a Brave New World of Tough Corporate Governance?

Wed, 14 Dec 2005 16:41:41 EST

Demands have long been heard for greater transparency in the way Indian companies do business. Now, matters are about to come to a head. Ready or not, India's public companies must meet a January 1, 2006, deadline to comply with sweeping new corporate governance standards inspired by the Sarbanes-Oxley Act in the U.S. Are Indian companies ready? According to experts at Wharton and Egon Zehnder, the international executive search firm, the rewards for companies that implement sound corporate governance practices can be large.

R&D in India: The Curtain Rises, The Play Has Begun...

Mon, 21 Nov 2005 14:55:50 EST

Motorola, Microsoft, Intel and other high-tech firms are launching ambitious R&D programs in India. Many of these projects complement research being conducted in other parts of the world and deal with products meant for the world market. What forces are driving the migration of high-tech R&D into India? Experts say it has a lot to do with the fact that companies expect some of the fastest growth in the future to come from the Asian giants -- India and China.

Free Advice from Wharton: Here's What Hewlett-Packard's New CEO Should Do

Tue, 10 May 2005 15:57:04 EST

When it was announced on March 29 that the board of Hewlett-Packard had tapped Mark V. Hurd to be the company's new CEO and president, the most notable part of the deal was Hurd's relative obscurity. But in the weeks and months to come, Hurd will be front and center. His personality may be lower key than that of the flashy Fiorina, but Wharton faculty members say he faces tough strategic decisions that will raise his visibility at a company whose stock has plummeted in value in the last five years. Chief among the decisions facing Hurd: Should H-P, which acquired Compaq Computer in a controversial move by Fiorina in September 2001, be broken up?

Why Do So Many Mergers Fail?

Wed, 30 Mar 2005 10:14:25 EST

With the recently announced mergers involving Procter & Gamble and Gillette, and SBC and AT&T, it's time to ask one of the most common questions about mergers: What does it take for a company to be successful, post merger? After all, many mergers ultimately fail to add value to companies, and even end up causing serious damage. Wharton faculty and other experts discuss the unique challenges that mergers pose, and offer suggestions on how to minimize the potential downside.

The H-P Compaq Merger Two Years Out: Still Waiting for the Upside

Wed, 20 Oct 2004 15:58:19 EST

Two years after Hewlett Packard's merger with Compaq, people are still asking some hard questions about the company's prospects. The reason, say experts at Wharton and elsewhere, is that the reconfigured H-P remains a work in progress. Chairman and CEO Carleton (Carly) Fiorina has made strides in integrating the operations and cultures of the two companies. But if H-P's stock price is any indication of the company's future, investors still harbor concerns about whether the merger will ultimately strengthen the Palo Alto, Calif.-based company against its two chief competitors, Dell and IBM.

Oracle and PeopleSoft: In Dubious Battle?

Wed, 06 Oct 2004 15:59:56 EST

Fifteen months after launching its hostile takeover bid for PeopleSoft, Oracle has moved closer to victory by winning a Department of Justice lawsuit that sought to block the merger. While the fight is far from over, will the victory - if it arrives - be a Pyrrhic one for Oracle? Experts at Wharton and elsewhere weigh in on the prospects.

AT&T Wireless: Will Cingular's Big Bet Pay Off?

Wed, 10 Mar 2004 16:03:36 EST

Last week Cingular, the second-largest wireless telephone firm in the U.S., beat Britain's Vodafone in a bidding battle for AT&T Wireless with a $41 billion bid. If regulators approve, the merger will create the country's largest wireless telephone company. But will Cingular be able to build real value from the deal? Experts at Wharton and elsewhere give the merger a thumbs up in terms of strategy, but warn that it is still too early to say whether the acquisition will be good for Cingular. One key problem: the whole wireless industry is in a flux.

M&A Activity: Back with a Whimper

Wed, 17 Dec 2003 14:49:23 EST

In recent months

U.S.

companies have announced a slew of merger and acquisition (M&A) deals. Among them: The St. Paul Companies' decision to merge with Travelers Property Casualty to form the second-largest insurer in the U.S., Bank of America's proposed merger with FleetBoston, and GE's intended acquisition of Amersham, a Britain-based life sciences and medical diagnostics company. To some market watchers, these transactions signal a comeback for the M&A market, which has been in a slump for the past few years. But Wharton faculty and other professionals say the M&A frenzy of the 1990s is unlikely to be repeated this time. Instead, they suggest, valuations and expectations that reflect reality, not desire, will drive this round of activity.

Does Sun, Burned by Competition, Need a New Business Model?

Wed, 22 Oct 2003 13:48:09 EST

The clouds over Sun Microsystems are thickening as the company continues to struggle against competition from cheap, open systems offered by Dell, and from IBM and Hewlett-Packard in high-end business systems. While many tech companies have felt the pain of the drought in information technology spending, Sun � a manufacturer of servers and proprietary networking software based in Santa Clara, Cal. � seems to be suffering more than most. What should Sun do, and is CEO Scott McNealy the one to do it?

What's Behind Oracle's Unwelcome Bid for PeopleSoft?

Tue, 17 Jun 2003 00:00:00 EST

Oracle�s Larry Ellison, a chief executive not known for being timid, has thrown a big boulder into a small pond with his company�s hostile takeover bid for PeopleSoft. The ripples will be rocking companies in the business software industry for some time to come. What are the reasons for Ellison�s move, what does he expect to accomplish and how likely is it that his strategy will fail? Wharton faculty look at the players in this clubby, and highly competitive, industry.

Learning from Tyco�s Meltdown

Wed, 05 Jun 2002 00:00:00 EST

L. Dennis Kozlowski, who stepped down this week as the CEO of Tyco International, has been indicted in New York for evading sales tax on his art purchases. This development comes at a time when the $36 billion conglomerate � which has lost more than $80 billion in market value this year � already faces a shaky future. Experts at Wharton point out that Tyco�s predicament offers lessons about the need for better corporate governance as well as the weakness of conglomeration as a growth strategy.

Will Mergers & Acquisitions Take Off in Europe?

Wed, 27 Feb 2002 00:00:00 EST

Cross-border mergers and acquisitions in Europe have been in a slump lately � as they have in the U.S. and other parts of the world. Falling stock prices, economic uncertainty and tight credit markets led to an easing of transactions in Europe to $179 billion in 2001 compared with $526 billion a year earlier. But as industries such as automobiles, telecommunications and pharmaceuticals continue to consolidate, the pace of deals could accelerate again, according to experts at Wharton and elsewhere. Some executives expect M&A activity to pick up this year, especially if the U.S. economy revives � which now seems increasingly likely.

Family Matters: Are Fords, Hewletts and Packards Right to Exercise Their Clout?

Wed, 21 Nov 2001 00:00:00 EST

Now that William Clay Ford Jr. has replaced Jacques Nasser as CEO of Ford, and the Hewlett and Packard families have decided to oppose H-P�s merger with Compaq Computer, one wonders whether family members have become wrecking balls, spoiling the well-laid plans of professional managers and jeopardizing the company�s future. Not exactly, say Wharton faculty and others, who point to the importance of values, standards and personal net worth.

Hewlett-Packard and Compaq: If It Goes Through, Here�s How to Try and Make It Work

Thu, 13 Sep 2001 00:00:00 EST

Faculty members at Wharton who have studied mergers and acquisitions and industry consolidations say Wall Street�s thumbs-down on Hewlett-Packard�s proposed acquisition of Compaq comes as no surprise. Still, if H-P and Compaq proceed with the transaction and receive shareholder and regulatory approval, there still may be additional ways to try to strengthen the new company�s competitive position, say several professors.

Has Bank Consolidation Been Good for Customers, or Bad?

Wed, 01 Aug 2001 00:00:00 EST

As the once-fragmented banking industry continues the consolidation that began a decade and a half ago, what has been the impact of bank mergers on consumers? Are they finding higher fees and fewer free services, or lower interest rates and more service options? Some experts offer their opinions.

Thinking of Buying a High-Tech Start-up? Read This First

Wed, 09 May 2001 00:00:00 EST

Large companies in high-tech industries often buy small start-up firms with innovative products that supplement their existing product portfolios. The challenge in making such takeovers work, however, is that the big company should be able to integrate the upstart into its operations without losing the creativity and innovation that give the small company its value. How can managers deal with this complex challenge? Phanish Puranam and Harbir Singh of Wharton�s management department and Maurizio Zollo of INSEAD are doing research that offers some answers.

Has DaimlerChrysler Hit the Breakdown Lane or Just Stopped to Fill Up?

Wed, 20 Dec 2000 17:40:31 EST

Two years ago, the merger � or was it an acquisition � of Daimler-Benz and Chrysler made eminent sense in an industry that was experiencing worldwide consolidation. Today, DaimlerChrysler�s capitalization is about half what it was two years ago, it has been sued by shareholders, its debt has been downgraded, its leadership is depleted and auto sales in general are in the midst of a slump. Talk about a turnaround challenge.

Creating Internet Strategies for Competitive Advantage

Thu, 28 Sep 2000 08:46:48 EST

As the speculative froth around the dot-com boom subsides, companies are starting to realize that the Internet is serious business. For companies that want to approach entrepreneurial opportunities on the Internet seriously�and with a view to turning profits�a new research paper by Sendil Ethiraj, Isin Guler and Harbir Singh offers useful insights. The researchers provide a conceptual framework to analyze Internet strategies, and they also look at business models and examine their components. In addition, Ethiraj, Guler and Singh explore what makes some business models more effective than others.

Looney Times at Time Warner and Disney

Wed, 24 May 2000 14:45:31 EST

The recent clash between Time Warner�s cable division and Disney�s television networks made a lot of viewers very unhappy when they couldn�t watch ABC�s �Who Wants to Be a Millionaire?� and other network programming. Although the two mega-businesses made temporary peace the next day, the questions remain: Could this happen again? What caused it? Are these media powerhouses � and the egos that run them - simply too big? Knowledge@Wharton asked three Wharton professors--Gerald Faulhaber, Peter Fader and Harbir Singh--to preview the next installment of Bugs Bunny vs. Mickey Mouse.

Will the Glaxo-SmithKline Merger Be Good Therapy?

Thu, 20 Jan 2000 16:54:52 EST

The proposed acquisition of SmithKline Beecham by Glaxo Wellcome - in a stock swap valued at $75.7 billion � may be creating the world�s largest pharmaceuticals company, but the question remains: Is it worth the effort? Wall Street in general was clearly not enthusiastic about the deal. On Tuesday, January 18, the first business day after the announcement of the merger on Monday, both company stocks took a beating in London and the U.S. Wharton health care systems professor Patricia Danzon shares Wall Street�s lack of enthusiasm for the proposed new company. "The basic business of the drug industry is developing drugs and getting them to consumers and physicians," says Danzon, who has done extensive studies on the pharmaceutical industry. "Maybe a bigger company can do it more efficiently and faster, but whether that is a winning strategy remains to be demonstrated."

Strategic Alliances Needn�t End Up in Divorce Court

Fri, 10 Dec 1999 09:14:35 EST

More than ever before, companies today join hands in alliances. Like real-life nuptials, many of these corporate marriages tend to end in painful separation. Yet a firm that can keep its alliances off the rocks is obviously in a better position to take on its competition. Can companies actually learn to manage their alliances more effectively? Wharton professor Harbir Singh and Prashant Kale of the University of Michigan Business School argue that the use of effective and sustained knowledge management can help companies improve their alliance success by nearly 50%. Their paper, �Alliance Capability & Success: A Knowledge-Based Approach,� is based on research into 140 U.S.-based companies.