INSEAD Knowledge

“In search funds, we get similar or better returns at a fraction of the risk we take on in VC portfolios,” says José Martín Cabiedes, a seasoned VC and search fund investor. “We buy healthy businesses with leverage. The beauty is that even if enterprise value remains flat, strong cash flow can double equity in just a few years. Try doing that in VC.”Put another way, search funds buy profitability and stable cash flows whereas VC trades in the…

Generative AI is reshaping society much like Gutenberg’s printing press once did. The printing press democratised knowledge, shifting power from the literate few – primarily monks and the elite – to the masses. Today, GenAI is democratising capability, enabling people and organisations to accomplish tasks previously reserved for experts. Yet, as with every technological revolution, the benefits won't be distributed evenly.The history of technological advancement reveals a consistent pattern: Raw…

Not long ago, I was invited to a “brainstorming session” at a high-tech company. The major investor, who had just taken over, wanted my view on what exactly he’d walked into.I expected an intimate, strategic meeting. Instead, I observed a full-scale corporate production. Every senior executive and mid-level manager had been summoned to the company auditorium.The CEO stood on the podium. We were here, he said, to save the company…

Sustainability is facing increasing resistance. In the United States, President Donald Trump and other political figures have criticised environmental, social and governance (ESG) standards as distractions from economic growth. Similar pushback is surfacing elsewhere, as firms face scrutiny over greenwashing, shifting regulations and the perceived costs of ESG compliance.Despite this climate, many companies are proving that sustainability can drive – instead of dilute – business value. Take the case studies…

Amazon, Netflix, Spotify and TikTok – three global platforms that harness recommendation algorithms to keep giving consumers more of what they want. Their success is a testament to the incredible potential of this technology to enhance the consumer experience. The value of being recommended a new film, your next book, a great song or even a funny cat video, selected to perfectly match your mood and tastes, seems unquestionable.However, in…

Beneath the market turmoil, companies with strong defensive strategies significantly outperformed companies that are strong in other factors since the tariff announcement. Regardless of their industries, companies with the lowest risk profiles delivered cumulative returns of approximately 20 percent by the end of March. In other words, the most defensive companies within the technology sector outperformed those in the least defensive technology companies, and the same pattern is repeated across consumer…

This setup wasn’t a fluke. Open-source AI models are becoming more powerful and accessible, thanks to innovations from companies like DeepSeek. Their recent releases, documented and accessible at Introducing DeepSeek-V3 and DeepSeek-V3 Release demonstrated that high-quality AI models can be developed with relatively low computational resources, significantly lower energy consumption and a modest budget. It turned the assumption that only industry titans can afford to build AI on its head. The…

Motor sports enthusiasts and thrill-seekers would be familiar with the Formula One races held around the world. But beyond fast cars, a legendary test of endurance, innovation and speed has been taking place annually in the town of Le Mans in France, capturing the world’s imagination since 1923. The 24-hour motor race sees drivers, teams and engineering capabilities stretched to their limits to win. The 24 Hours of Le Mans is…

I asked our panelists which blind spot concerned them most. Veloso zeroed in on workforce transformation, drawing a parallel to the Industrial Revolution: “We're going to be replacing routine cognitive tasks with intelligent systems,” he said. Just as mechanisation reshaped work through Taylorism and assembly lines, AI will fundamentally change “the skill set, the organisation of firms, the fabric of what it means to be a worker”. This isn’t just about…

Business headlines are often dominated by technology, e-commerce and other trending sectors of the day. But away from the limelight, insurance – traditionally seen as stable and predictable – has quietly undergone its own radical transformation, as digitisation erases traditional industry boundaries.Insurers no longer compete solely on products but on their ability to integrate prevention, assistance and hyper-personalised services. The key is creating “ecosystems”— interconnected networks of services that fulfill…

Xavier couldn’t remember the last time he had fun. His marriage was strained, his children distant and work had become a drag. He had spent so much of his time and energy being serious that he’d forgotten what it was like to feel joy.But a conversation with an old friend jolted him into action. As he listened to his friend recount moments spent with his grandchildren, friends and enjoying various…

When we think of creativity, we imagine artists staring at a blank canvas, or businesses with unlimited budgets, dreaming up the next big thing. But sometimes the most innovative ideas arise when we’re pushed to work within limits. In fact, many art forms, from monochromatic art to Japanese haiku, build on the idea of doing more with less. Chef Alain Passard is a master of such “bounded creativity,” one of the…

In a conference room at its leafy campus in Seattle, Microsoft's board members engage in what might appear to onlookers as intellectual combat. Directors challenge assumptions, disagree openly with the CEO and occasionally upend conventional wisdom. Beneath this seeming friction lies something revolutionary: carefully cultivated psychological safety that transformed Microsoft from a tech giant losing its edge into a trillion-dollar innovator. Under the stewardship of CEO and board chair Satya Nadella, Microsoft’s board abandoned…

As the world's sustainability concerns increasingly become corporate concerns, boards are often left wondering where their responsibility begins and how far it should extend. While we may not be personally responsible for the climate crisis, we are all part of the system that created it. Anyone advising boards and sitting on them has contributed to the machinery that got us here.Regulations that hold companies accountable for climate change, like the…

These days, companies pour significant resources into crafting culture statements, viewing a strong corporate culture as critical to business success. Yet what truly matters is often overlooked: human behaviour. At its heart, human behaviour is about people, that is, how they act, interact and make decisions. While a well-crafted culture statement can act as a guiding vision, it’s only as effective as the people who embody it. Without the right people,…

Global risks are rising, and many companies are struggling with how to adapt. The World Economic Forum’s 2025 Global Risks Report makes it clear that challenges like escalating global tensions and conflicts, climate change, economic instability and supply chain disruptions are interconnected and build on one another. And they’re here to stay.Meanwhile, US president Donald Trump’s tariff threats are creating more unpredictability in global trade.Companies have no choice but to constantly adjust their strategies. For many…

Anyone who’s had a hand in hiring and recruiting knows that finding the right person for the job is often difficult and expensive. Typically, organisations assess candidates using a combination of interviews and static tests, such as those that evaluate logical and verbal reasoning or behavioural traits. This process takes up significant time and resources. Moreover, studies suggest that without careful structuring and design, these hiring methods can suffer from low validity and fail…

The report highlights four steps directors can take to ensure that their governance approach meets these challenges. Enhance horizon scanning and risk management Our report reveals that only a minority of board members fully understand how sustainability (35 percent), GenAI (12 percent) and trade and geopolitics (22 percent) can affect a company’s value, and an even smaller proportion (12, 8 and 10 percent respectively) actively scan the horizon for weak signals that indicate…

To quote an analogy developed by Professor John Sterman at MIT, we are adding too much water to a bathtub that is already nearly full. The tub is in danger of overflowing if we don’t find a way to remove at least as much water as we add. According to estimates, even if firms and governments met their current targets, we still need to remove 7–9 billion tonnes of carbon dioxide per year from…

Once again, US President Donald Trump has caught Europe with its pants down. On 13 February, he announced that the United States would negotiate directly with Russia to end the Ukraine War, without European or Ukrainian participation. A day later, his Vice-President told the world’s security elite that a lack of Trump-style “democracy” in Europe was a bigger security threat to the continent than China or Russia. Europeans were left…

This month, we feature four papers that challenge assumptions with real-world evidence. Regulatory restrictions can either stifle or spark innovation depending on specific circumstances; seeking customer feedback creates dramatic spillover benefits that boost profits; and activist pressure can decrease corporate compliance with sustainability regulations. Finally, our professors found that the conventional advice "if you want it done right, do it yourself" is quite true, but they also show that “if you…

My answer: Homo sapiens’s most impressive accomplishments, from building the pyramids to developing Covid-19 vaccines, are not individual achievements. They were possible only because many people worked together effectively. “How to organise groups to attain goals” is our oldest general-purpose technology (GPT!). But there is more. To humans, organisations don't just help accomplish goals. We are a species that has evolved to survive and thrive in groups, and organisations (i.e. groups…

A nail-biting penalty shootout. A sprint title decided by mere milliseconds. A championship that comes down to the wire. From baseball to badminton, sport has a remarkable ability to unite millions of people around the world and leave them on the edge of their seats, whether they’re watching the action unfold in person or tuning in from afar.Behind the scenes, the business of sports is much more intricate than many…

Companies like WeWork have experienced this shift. During periods of rapid growth and expansion, the board likely took a more passive approach, trusting former CEO Adam Neumann’s vision and strategies. However, as the company faced challenges and scrutiny, the board became more active, intervening in decision-making and even replacing the CEO.Likewise, during the Covid-19 pandemic, we found that passive engagement mode decreased from nearly 50 percent to around 35 percent. Passive boards…

In early 2024, the door panel blowout from a Boeing 737 MAX aircraft in mid-air shocked the world, less than five years since that model was grounded worldwide following two crashes that claimed 346 lives. The urgent question then was: How did that happen? But the more important question really is: Could these disasters have been prevented?   From the apex of the aerospace industry, the American aircraft manufacturer landed itself…

The global political landscape has transformed dramatically over the past year. Donald Trump’s reelection as US President aside, in Japan, Prime Minister Shigeru Ishiba leads a fragile minority government after an electoral setback; South Korea faces an unprecedented crisis with the impeachment of President Yoon Suk Yeol; tensions between Taiwan and China have heightened since the election of pro-independence Lai Ching-te; and in Indonesia, nationalism is set to grow under the…

Your customer of tomorrow may be rather unlike your customer today. And if you are not connecting with them, there is a lot of catching up to do. Wedged between heritage and changing customer behaviours, the world of luxury perhaps feels the need to remain relevant most acutely. In a recent fireside chat, we explored how, as the world’s largest luxury conglomerate, LVMH stays relevant in the face of changing demographics…

In this month’s research picks, INSEAD faculty offer insights on improving asset pricing models and sales forecasting models, as well as how the extent of differences among banks affects financial stability. On the organisational front, they examine how artificial intelligence (AI) could impact strategic decision-making processes in firms and ways to prevent relational overload in organisations where employees can easily access colleagues and information. 1. The effects of bank heterogeneity on…

A fundamental shift is occurring in digital asset markets, evident in the relentless rise of bitcoin and crypto ETFs as well as the proliferation of meme coins, most recently $TRUMP, backed by the new US President himself. The appointment of Paul Atkins, known for favouring market-driven solutions over heavy-handed enforcement, as Chair of the Securities and Exchange Commission (SEC), has fuelled optimism that crypto can finally balance innovation with regulation.But…

Start-ups: innovation-driven venturesThe traditional start-up model typically emphasises disruptive innovation and rapid scaling, often requiring significant technological advantage and financial capital in its initial phases. It appeals to founders driven by a mission to revolutionise industries and solve problems in the market. To succeed, founders must not only develop a compelling solution but also convince investors – and eventually customers. Creativity, innovation and product-market fit are crucial. Start-ups are inherently high-risk ventures. They…

“Am I too late?” This is the question that plagues traders trying to make gains from “novel” information. After all, there is always a chance that the signal that they are about to trade on has already been priced in by the market. When speculators contemplate trading based on a particular signal, can they tell if their signal is truly novel (on which it would be profitable to trade) or if…

Consider this man. He takes daily post-lunch naps and frequently dozes off in a lounge chair after dinner. He spends his afternoons at home rather than at the office, tending to his garden and golfing. He spends months away from work on vacation. He prides himself on avoiding “hustling”. “I’m here because I shirked: [I] did less work,” he reflects.Many people may look askance at such a guy, but in…

We are relatively cautious about what we buy when the stakes are high. But do we apply the same level of scrutiny to the most important investments of our lives – choosing a partner or a career path? Divorce and turnover rates suggest not. While we won’t weigh in on the complexities of marriage, as career advisors and coaches, we know that cultural misalignment is the primary reason why people leave…

India’s luxury landscape is at a crucial juncture. With a booming economy, the world’s largest population and a dynamic, youthful demographic, the country has been dubbed the next luxury hub, especially at a time when luxury consumption in China is declining as spending softens. Is the centre of the world’s luxury market shifting from China to India, as a fast-growing appetite in goods such as high-end watches suggests? And, if so, how should brands approach…

We're often warned against opening Pandora's box, a metaphor for unleashing a torrent of evils on the world. Yet, we forget an essential detail: Elpis – the spirit of hope – remained within the box. Even when the world seems consumed by chaos, hope endures.Throughout history, philosophers and leaders have celebrated hope as a powerful force. The ancient Chinese philosopher Lao Tzu observed, “As long as we have hope, we…

The year 2023 was named the hottest on record, and 2024 is on track to be even warmer. We are already feeling the impact of the climate emergency, but the problem runs deeper. Climate change is just one symptom of our planet’s health crisis. From resource depletion to social inequality, the challenges we face are interconnected and demand a comprehensive solution. Beyond the endeavours of any one company or community, sustainability…

Why do we resist trusting AI recommendations? How can we improve the pricing and approval process for new health technologies? In what ways does board risk oversight impact environmental and social performance? What effect do career transitions and frictions have on performance? And how do past negative experiences with creativity influence how creative we are? These are just some of the pressing and pertinent questions INSEAD professors have been exploring in…

Former General Electric CEO Jack Welch once said: “If the rate of change on the outside exceeds the rate of change on the inside, the end is near.” To remain competitive, companies must adapt quickly to an ever-evolving business landscape. In times of growth, they may expand rapidly and hire aggressively. But when conditions shift, so must their strategies. This often requires realigning roles, streamlining processes, or improving operational efficiency to…

It’s the conversation that’s dominating board rooms and strategy meetings. How are firms preparing for, or already harnessing, the potential of AI for their organisation? A KPMG survey found that 65 percent of executives anticipate a significant impact from generative AI (GenAI) within the next few years, even as many firms are still in the early stages of implementation. My own survey of INSEAD alumni found that 68 percent of business…

In terms of the E&S issues they “wash”, the most frequently identified claims related to firms’ impacts on climate change (30 percent of all allegations), consumer health benefits (22 percent), and waste handling (11 percent). Other allegations related to biodiversity, animal welfare, as well as employee rights and safety. Further, we found that E&S-washing occurred most on product labels or packaging (25.3 percent of allegations), advertising (23.1 percent) and public relations…