Marketing Seminar - Dr Simone Wies
Seminar Room 10.039, Level 10 the SpotMap
PRESENTER: Dr Simone Wies (Goethe University Frankfurt)
TOPIC: “Beating the Going-Public Effect in Firm Innovation: An Innovation Strategy Framework”
Previous research shows that after going public, firms introduce fewer breakthrough innovations. This effect is ascribed to the short-term pressures the stock market exerts on firms. However, not all firms succumb to this “going-public effect” in firm innovation. Analyzing the innovation patterns of IPO firms in the consumer-packaged goods sector, we document that in 34% of observations, firms are able to maintain or beat their levels of breakthrough innovations after going public. We theorize and find a set of innovation strategy factors that reflect choices in how firms manage their innovation strategy before the IPO that buffer them from the tendency to take less innovation risk post-IPO. These findings challenge the view that the stock market, per se, causes firms to behave in a short-term manner and offer a more optimistic and agentic view of how firms can maintain their innovativeness after accessing the stock market.
Simone Wies holds the SAFE Junior Professorship for Marketing and Finance at Goethe University Frankfurt. Prior to joining Goethe University, she was a Post-Doctoral Researcher in Marketing at the Fuqua School of Business at Duke University. She received her M.S. in Finance and Marketing and Ph.D. in Finance from Maastricht University. In her research, Simone investigates the investment character of firm-level marketing strategies with a particular focus on firm innovation assets. Specifically, she examines the dynamics between firm financing choices and marketing strategies, such as how the stock market values marketing activities and how these valuations, in turn, influence the marketing calculus firms follow. Her work has been published in journals such as Marketing Science, the Journal of Marketing Research, and the Journal of Business Research. Simone teaches in the Marketing Analytics M.S. program, and serves as Academic Director of the Marketing Specialization in the B.S. program.
RSVPs are not necessary.