INSEAD Knowledge

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…

Imagine having two wallets – one filled with cash, the other with airline miles or hotel points. Which would you reach for when it’s time to pay? The answer, according to our new paper, coauthored with Freddy Lim from the National University of Singapore, says a lot about you as a consumer and carries potentially lucrative implications for the multi-billion-dollar loyalty programme industry. Our study of data from a major US airline…

Then there’s "Hump Day", in which a talking camel excitedly asks office workers what day it is. No prizes for guessing what the correct answer is. The 2013 campaign, by auto insurance firm GEICO, did not just increase brand awareness and engagement. It became a cultural phenomenon. The clincher? The simplicity and relatability of the joke. Another hit campaign latches onto the fact that hunger can make us cranky. In "You're Not…

Already the world’s fastest-growing major economy, India is on track to become the third largest by 2030. However, this development comes with a significant challenge − sustainability. India ranks seventh globally for climate vulnerability, and both its consumers and companies are generally unwilling or unable to pay a ‘green premium’ for sustainable solutions. This means that Indian climate entrepreneurs must focus on cost-effective innovations that can scale without raising prices.Solutions…

Emerging technologies like big data, AI and blockchain are reshaping finance. New products, such as platform finance, peer-to-peer lending and robo-advisory services, are examples of this transformation. These developments raise important questions: How concerned should traditional financial institutions be? What strategies can fintech and “techfin” (technology companies that move into financial services) disruptors adopt to secure their place in this evolving landscape?There are two main threats to the traditional finance…

Diverse research findings by INSEAD faculty this month include a new strategy that could help improve tax collection and a way of improving the safety and reliability of AI in healthcare. Other research looks at how taking part in standard-setting organisations (SSOs) can help technology companies get better at forecasting.Another study examines why IPOs featuring at least one female director might have been underpriced. Finally, new research explores how CEOs might be…

From virtual assistants to self-driving cars to medical imaging analysis, the use of modern AI technologies based on deep-learning architectures has increased dramatically in recent years. But what makes us put our faith in such technologies to, say, get us safely to our destination without running off the road? And why do we perceive some forms of AI to be more trustworthy than others?It may depend on how much agency…

It is perhaps no coincidence that the South Korean economy is also dominated by sprawling firms or chaebols. As we found in our study, now published as a working paper by the National Bureau of Economic Research, these large firms played a pivotal part in the growth miracle of the country of 52 million people.Using detailed firm- and sector-level data, we found that the top firms weren't just big; they became…

What our model showsAs energy companies continue to install bigger wind turbines further offshore in the name of maximising energy output, our results counter the conventional wisdom that associates larger turbines with higher efficiency and profitability. The findings shed light on the inherent trade-offs in turbine size and wind farm site selection on economic viability. Our results reveal that the trend can in fact undermine the economic viability of wind farms.…

Sustainability is no longer just a buzzword – it has become critical for life on our planet. It will also be a key actor in shaping corporate strategy and success. The shift towards sustainability has been increasingly embraced, and the common way companies do this is through the ESG (environmental, social and governance) framework. But even though corporate impact on the environment and society is huge, the ESG methodology is increasingly being questioned – particularly in the United States – for its effectiveness…

Leadership happens in groups, as does most work. Without followers, who and what are we leading? As such, leaders must understand what groups need if they want to maximise performance. While most leaders should be familiar with the idea of executive coaching on an individual basis, they may know less about the benefits of group coaching.Much of individual performance is influenced by the context, and so efforts to improve performance…

Be it making deals for multimillion-dollar penthouses, corporate office suites or cosy suburban homes, negotiations often involve multiple stakeholders, long-term engagements and high stakes. This requires professionals to navigate incompatible interests in a conflict-prone environment.In the first part of our practice briefing published in the Journal of Property Investment & Finance, we elaborated on the industry’s challenges and made a case for professionals to depart from entrenched win-lose strategies and embrace more…

Nicolas, a busy senior executive, really enjoyed working in the construction industry. He knew his company had a mandatory retirement age, but he didn’t give it much thought. He figured that retirement would give him more time to perfect his golf game and travel with his wife.On the day he retired, he was delighted to see how his colleagues had gone out of their way to celebrate his achievements. Immediately…

The world is knee-deep in a housing crisis. According to the United Nations, 1.6 billion people – one in every five – lack adequate housing, and the number could rise to 3 billion by 2030. It is a problem that plagues rich and poor countries alike, from Burundi to the United States, damaging well-being, distorting economic choices and worsening inequality. The crisis impacts not only individuals but also weakens economies and…

In the digital age, social movements increasingly transcend national and cultural borders. #MeToo, for one, remains a global phenomenon seven years since it burst into the public consciousness. It has increased awareness of sexual offences and challenged traditional gender roles and stereotypes around the world. It may also have had an unexpected impact on firms. We conducted a study, now published in Management Science, that uncovered how #MeToo changed demand for identity-signalling products in 32…

Wealth inequality, long a pressing issue that was exacerbated by Covid-19, remains a significant problem to governments and policymakers around the world. Many nations including the United States, Japan and France have recorded skyrocketing income disparities in the past few years, while South Africa has claimed the unenviable title of the country with the highest wealth inequality. Economic inequality can hinder economic growth, erode social cohesion and lead to political polarisation.…

The past two decades, have seen many industries shaken to the core by a series of digital disruptions. This started with the advent of the internet, followed by the rise of social media, smartphones and now the shockwave of generative AI (GenAI). Industries such as media, advertising, mobility, tourism and telecommunications look fundamentally different today than even just five years ago. While management pulls out all the stops to stay…

Shifting influences Perhaps more importantly, our analysis found that the strength of these stakeholder influences is actually dynamic and can be negatively impacted by external economic crises.  For a start, an economic slowdown or recession reduces the bargaining power of the labour force. This is because a tough economic environment can lead to more extreme outcomes. When faced with the risk of their company being liquidated, it is understandable that…

Back in the early 1980s, plenty was written about the decline of American business on the global stage. One of the main criticisms levelled at US firms was their over-reliance on administrator CEOs. As a famous 1980 HBR article pointed out, these experts in finance and operations were too focused on short term objectives to fully appreciate or embrace innovation’s importance to long term success. The result:  the United States was left…

In the competitive world of business, entrepreneurs have long sought novel formulas such as the Business Model Canvas and the Lean Start-Up Method in their quest for success. The most potent tool, however, might be one that's centuries old: the scientific approach.From a series of experiments involving 759 start-ups across industries in Milan, Turin and London, my colleagues* and I found that companies that embraced the practice of rigorously formulating…

The biggest sustainability challenge today is not a lack of enthusiasm. We observe many more business leaders every day who are eager to engage in sustainability efforts, driven by factors such as government regulations, societal expectations, stakeholder demands or their own aspirations.The real challenge lies in effectively harnessing this enthusiasm to create meaningful impact. This goes beyond companies monitoring their own carbon footprint; sustainability thinking in business should go beyond…

Consider this: Heathrow Airport in the United Kingdom currently uses more energy than the entire west African country of Sierra Leone. Despite Africa accounting for less than 4 percent of global greenhouse gas emissions, many of its countries face significant threats from climate change, including increased droughts, floods, heat waves and potential crop failures.According to the African Development Bank climate change costs the continent US$7 billion to US$15 billion yearly, a figure projected to…

Lately when I give lectures on leadership to various audiences, the topic of AI hardly ever fails to come up in the question-and-answer period. From what I hear, many people see AI as an ever-present and very worrisome development.It’s a paradox: On the one hand, plenty of observers are scared by how AI is rapidly revolutionising industries, influencing productivity and shaping our future. On the other, AI has grown to be so ubiquitous that some people do…

People often ask us how to better understand others to be a more effective leader. Can we decipher a frown or someone’s folded arms to better understand them? Of course, some knowledge on reading people can be helpful. However, the challenge is that humans are, well, human, and that reactions don’t always follow a predefined pattern or set formula. Consider Jill, a CEO. Having just introduced a major reorganisation in her firm…

This month’s selection of new research by INSEAD faculty investigates how AI (artificial intelligence) can both enhance and constrain the human experience; size penalties in bond-market trading; and whether new inventions benefit younger and older workers to the same degree. Other recently released studies look at how multitasking can have a negative impact on the performance of knowledge workers, as well as dissect global trends in productivity. Another paper examines…

In the pursuit of breakthrough innovation, it is easy to be dazzled by star performers, from successful CEOs and prominent lawyers to award-winning scientists. Mention electric vehicles, and Elon Musk springs to mind; radioactivity research, and Marie Curie comes to the fore. However, this fixation can overshadow the crucial role played by the constellation of collaborators – most of us mere mortals – that surround the star.In a new study published in Management…

One of the realities of today’s financial markets is the outsized shareholder voting power held by the leading mutual funds. In 2021, the top three asset management companies (BlackRock, State Street and Vanguard) owned around 23 percent of S&P 500 firms. This made them the largest shareholders in 88 percent of the leading United States-based companies. Worryingly, it seems that these mutual funds are quite happy to use that shareholder voting…

When conflicts in a team – no matter how minor – are left unresolved, it can eventually breed resentment. If unaddressed, this could lead to cynicism and distrust, as well as harm individual and team performance. How should leaders deal with this? The intuitive answer might involve orchestrating frank, albeit difficult, conversations between the discordant parties. But such conversations are unlikely to lead to the desired reconciliation without a baseline of…

Though business and politics might seem like different worlds, there are increasing commonalities between leadership in these realms. As I explain in the second edition of Los Presidentes Españoles, which explores the success and failures of Spanish leaders since the return of democracy in 1978, executives can learn a lot from the strategies employed by political leaders.After all, prime ministers and presidents are also managers. They preside over cabinets – their…

Medical criticality refers to the clinical value of a drug. Life-saving drugs should always be considered high criticality (e.g. insulin, blood thinners, antibiotics for the treatment of sepsis, etc.), while drugs that improve lifestyle tend to be low in medical criticality. Other criticality factors include the number of people dependent on the drug and whether good substitutes exist. The other dimension, supply chain risk, captures the likelihood of mismatches between supply and…

In the real estate world, permeated with high-stakes and complex transactions, negotiation is a crucial skill to achieve and sustain success. Tried and tested adversarial negotiation tactics are falling into obsolescence and giving way to a new approach. In our practice briefing* for real estate professionals, recently published in the Journal of Property Investment & Finance, my co-author Thomas Wiegelmann and I examine the forces driving this shift and propose a…

In the complex, uncertain and fast-changing world we live in, success and even survival require intensive collaboration among individuals, organisations and countries. The outcomes of such collaboration can be breathtaking – consider the growth of Netflix and Amazon, the rebirth of Microsoft and General Motors, the successful launch of the James Webb Space Telescope.Yet, most people and organisations fail to collaborate, preferring competition to cooperation. In business, up to 70…