Research Interests - Leandro Nardi PDF

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In the past decades, a large body of research has investigated the processes through which for-profit firms create and appropriate economic value (Brandenburger and Stuart, 1996; Lepak et al., 2007; Garcia-Castro and Aguilera, 2015). The dominant approach in this literature has been strongly focused on firms ’ private value capture strategies (Gans et al., 2017; Lieberman et al., 2017), and thus seemingly disconnected from the recent efforts expended by management scholars in understanding the social and public benefits accruing from private firms’ actions (Mahoney et al., 2009; Cabral et al., 2013; Quélin et. al, 2017; Kaul and Luo, 2017). The main objective of my research project lies precisely in the intersection between these distinct agendas. In a nutshell, we advance an empirical framework integrating the social and public dimensions to existing models of private value creation and appropriation. This approach allows us to explicitly model the trade-offs between private value appropriation and social impact, and therefore provides valuable insights into the mechanisms used by private organizations to reconcile these conflicting dimensions. Our framework is developed in the context of a Brazilian microcredit enterprise, a social enterprise (Battilana and Lee, 2014) that provides microloans and other financial products and services (such as electronic payment devices) for microentrepreneurs. Using modern econometric tools, we model the firm’s potential for generating social impact as a function of the impacts it generates on its clients’ businesses (Banerjee et al., 2015). Our measure consists of the percentage changes observed in the microbusinesses’ profits after they receive microcredit. To operationalize this approach, we combine matching techniques with difference-in-differences regressions, using microbusinesses that did not receive credit as counterfactuals for those that were effectively funded by the microcredit firm. As a result, we obtain a percentage rate that proxies the social impact generated by the microfinance company. This output provides the company’s management with powerful information, useful in helping guiding the firm towards an equilibrium between value appropriation and social impact. REFERENCES Banerjee, A., Karlan, D., & Zinman, J. 2015. Six Randomized Evaluations of Microcredit: Introduction and Further Steps. American Economic Journal: Applied Economics, 7(1): 1–21.

Battilana, J., & Lee, M. 2014. Advancing Research on Hybrid Organizing - Insights from the Study of Social Enterprises. Academy of Management Annals, 8(1): 397–441. Brandenburger, A. M., & Stuart, H. W. 1996. Value-Based Business Strategy. Journal of Economics & Management Strategy, 5(1): 5–24. Cabral, S., Lazzarini, S. G., & Azevedo, P. F. de. 2013. Private Entrepreneurs in Public services: A Longitudinal Examination of Outsourcing and Statization of Prisons. Strategic Entrepreneurship Journal, 7: 6–25. Gans, J., & Ryall, M. 2017. Value Capture Theory: A Strategic Management Review. Strategic Management Journal, 38(1): 17–41. Garcia-Castro, R., & Aguilera, R. V. 2015. Incremental Value Creation and Appropriation in a World with Multiple Stakeholders. Strategic Management Journal, 36(1): 137–147. Kaul, A., & Luo, J. 2017. An Economic Case for CSR: The Comparative Efficiency of For-Profit Firms in Meeting Consumer Demand for Social Goods. Strategic Management Journal, 804–828. Lepak, D. P., Smith, K. G., & Taylor, M. S. 2007. Value Creation and Value Capture: A Multilevel Perspective. Academy of Management Review, 32(1): 180–194. Lieberman, M. B., Garcia-Castro, R., & Balasubramanian, N. 2017. Measuring Value Creation and Appropriation in Firms: The VCA Model. Strategic Management Journal, 38(6): 1193–1211. Mahoney, J. T., McGahan, A. M., & Pitelis, C. N. 2009. The Interdependence of Private and Public Interests. Organization Science, 20(6): 1034–1052. Quélin, B. V., Kivleniece, I., & Lazzarini, S. 2017. Public-Private Collaboration, Hybridity and Social Value: Towards New Theoretical Perspectives. Journal of Management Studies, 54(6): 763–792....