Home > Awards > 2015 Awards – Winners > Innovation Accounting: A Holistic View on the Concept’s Application in Practice and Implications for Scholarly Discipline Coller Institute of Venture 2015 Research Grant, awarded to Prof. Christoph Hienerth and Monika Hauck of WHU – Otto Beisheim School of Management

Innovation Accounting: A Holistic View on the Concept’s Application in Practice and Implications for Scholarly Discipline Coller Institute of Venture 2015 Research Grant, awarded to Prof. Christoph Hienerth and Monika Hauck of WHU – Otto Beisheim School of Management

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Prof. Dr. Cristoph Hienerth

Prof. Dr. Christoph Hienerth was appointed to the Chair of Entrepreneurship and New Business Development at WHU – Otto Beisheim School of Management in June 2012. He holds a doctoral degree (equivalent to a PhD) from WU Vienna, where he also completed his post-doctoral degree (Habilitation) as an assistant professor at the Department for Entrepreneurship and Innovation. From 2006 to 2012 he held a tenured position as Associate Professor at Copenhagen Business School, Department for Innovation and Organizational Economics. Prof. Hienerth had various research visits and fellowships at Massachusetts Institute of Technology (MIT), Harvard Business School (HBS), McGill University, and George Washington University. Prof. Hienrerth’s research has been published in leading international and national refereed journals such as Research Policy, IEEE Transactions on Engineering Management, Journal of Product Innovation Management, Long Range Planning, Journal of Organizational Design, Family Business Review, Zeitschrift für Betriebswirtschaft (ZfB). His work, both in research as well as in teaching has won several awards. Prof. Hienerth has gained expertise in corporate entrepreneurship through several industry projects with international companies such as Schindler, Deutsche Telekom, Palfinger, Bayer, MAN, LEGO, Fujitsu, Siemens VDO, SAS, Grundfos and Coloplast. He has given keynotes and was scientific advisor for governmental institutions in several countries such as Sweden, Denmark, Finland, UK, Czech Republic.

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Monika Hauck, M.Sc.

Monika Hauck joined WHU – Otto Beishem School of Management in September 2013 as a Research Assistant and a Doctoral Candidate in Entrepreneurship and New Business Development. She received her Master of Science degree in Management from European Business School in Oestrich-Winkel, Germany and EDHEC Business School in Nice, France where she specialized in Strategy and Corporate Finance and wrote her Master Thesis on the topic “Berlin Venture Capital Scene – Analysis of Cluster Formation”. Monika gathered practical experience at HSBC Trinkaus Alternative Investments Department and at Deloitte and PricewaterhouseCoopers Transaction Advisory Departments specializing in both financial and commercial due diligence processes. During her bachelor’s studies in San Diego, California, she accomplished internships at Sony Electronics Treasury and Business Development Department and at Girard Securities Corporate Finance Department. Following her passion for alternative investments Monika has completed certification in Art Valuation, Real Estate, Venture Capital, and Social Innovation. Her current research interests lie in the fields of entrepreneurship ecosystems, innovation accounting, corporate venturing and open and user innovation in the creative industries.

About the Project:

With governments and corporations acknowledging that startups are the driving engine of innovation and economic prosperity of regions, fostering of startup ecosystems is becoming a mainstream agenda not only in the Silicon Valley but also in many developed regions around the world. Startups according to Ries (2011) are newly founded organizations that are “designed to deliver a new product or service under conditions of extreme uncertainty”.  While requiring high capital investment, they can provide negative cash flows for extended period of time and thus lead to high risks for their founders and financiers. And although media articles are abundant with stories about heroic internet entrepreneurs and their industry disruptive business ideas, the reality according to Forbes (Patel, 2015) is that 90% of startups are actually discontinued. But can some of the startup failures be predicted beforehand or at all avoided? Are there early signals that startup founders and their financiers overlooked, miscalculated, or did not account for? There are diverse frictions which often arise between startup founders and financing providers such as asymmetric information before contracting and adverse selection and moral hazard after contracting (Eisenhardt, 1989). Moreover, scholars have shown that agency problems are particularly prominent in small, non-public companies where the level of publicly available data is low and is highly dependent on the information gathering practice and disclose of the founders (Wright & Robbie, 1996; Landstroem, 1992). To facilitate a better functioning of the startup ecosystems, in this research project we look at the measurement and control practices used by startups and the accounting requirements by their financiers: angel investors, venture capitalist, and newly emerging organizations such as startup incubators and accelerators, and corporate entrepreneurship programs.