What’s behind the United Kingdom’s slow productivity growth since 2007? How can more flexibly designed clinical trials deliver greater value? And why do firms need to treat data as a strategic asset? Two recently published papers and a case study explore these questions and yield surprising insights.

This month’s picks also include two working papers. The first explores how a certain type of investment can encourage suppliers to adopt decarbonisation practices, while the other proposes a “fitness scale” to help firms assess their readiness for organisational change.

Slow productivity growth in the UK and beyond

The UK's slow economic growth has attracted considerable attention in recent years, with a particular focus on the role of slow productivity growth since 2007. The latter has been labelled a “puzzle”, as if it were a country-specific problem. In a research paper published in the Oxford Bulletin of Economics and Statistics, INSEAD’s John Fernald and University of Groningen’s Robert Inklaar highlight how the United States and northern Europe have experienced very similar slowdowns. 

The researchers found that in all three regions, slower growth in total factor productivity (a measure of an economy's ability to generate income from input) and output led to slower capital formation. They offer suggestions for UK policymakers to reverse the slowdown in total factor productivity, including creating the right conditions to stimulate investments in local innovation. 

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Getting more value from publicly funded clinical trials

Can clinical trials be reshaped to deliver greater value? INSEAD’s Stephen E. Chick and his co-authors* say "yes". They propose applying value-adaptive design – which allows for changes to be made to trials according to criteria such as trial costs and benefits to patients – to publicly funded clinical trials.

In their research paper published in BMC Medical Research Methodology, the researchers argue that such trial designs can help balance the costs and benefits of adaptive clinical trials against the health economic gains expected for populations affected by any subsequent adoption of health technology. They may also improve the value of what’s learnt from the budget that’s spent within a trial.

*Laura Flight, Alan Brennan and Steven Julious, University of Sheffield; Martin Forster, University of Bologna; and Puvan Tharmanathan, University of York.

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How to secure buy-in for decarbonisation initiatives

Many firms are attempting to reduce greenhouse gas emissions across their value chain. However, this requires convincing suppliers to adopt relevant decarbonisation practices, which is challenging when suppliers perceive such changes as risky or detrimental for their economic well-being.

In their working paper, INSEAD’s Jasjit Singh and Singapore Management University’s Sukti Ghosh examine relational investments (i.e. investments intended to promote mutual benefit) as a tool for overcoming this challenge. In collaboration with a global firm attempting to decarbonise its agricultural supply chain in India, they investigate the effectiveness of training their supplier farmers on climate-friendly agricultural practices and providing them with customised agricultural services intended to demonstrate the firm’s commitment to their economic well-being. 

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Applying a “fitness scale” to organisational change

Managing organisational innovation and change isn’t easy. Many initiatives fail due to a lack of understanding of organisational readiness. A working paper by INSEAD’s Michael Jarrett and co-author Lee C. White proposes a novel, psychometrically sound “fitness scale” of sorts to diagnose organisational change readiness.

The scale, which is grounded in the dynamic capabilities framework, looks at five factors: strategic scanning, leadership insights, coordinating structures, dysfunctional defensive routines and organisation openness. The research explicitly integrates managerial attention and emotional dynamics with change readiness. For practitioners, the scale offers a critical diagnostic tool to assess and improve an organisation’s capacity for successful change.

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The importance of data quality management

Despite the growing reliance on AI and advanced analytics, poor data quality – riddled with errors, inconsistencies and fragmentation – poses significant risks to efficiency, safety and decision-making. This case study by INSEAD’s Ville Satopää, alongside co-authors Nikki Chang and Seb Murray, explores the critical role of data quality management in large-scale industrial operations, using multinational energy corporation Chevron’s drilling and completion (preparing the well for production) functions as a focal point. 

The case study highlights the economic and operational impact of data quality, the complexities of driving organisational change, and the strategies needed to secure leadership buy-in for long-term improvements. It also stresses the importance of ensuring that data is treated as a strategic asset rather than an afterthought.

Read the case study