This is a picture of ESMT books and working papers

Publications

ESMT Berlin publishes in international academic journals, which are first-class in their respective fields. Research also provides cutting-edge and profound insights for the business community as well as the classroom through managerial publications and case studies. This rare integration of research and practice makes ESMT Berlin an outstanding location for generating relevant and ground-breaking knowledge.

Journal Article

Corporate social responsibility: A corporate marketing perspective

European Journal of Marketing 45 (9/10): 1353–1364
Diogo Hildebrand, Sankar Sen, CB Bhattacharya (2011)
Abstract:
Subject(s): Marketing
Keyword(s): CSR, marketing, corporate identity, consumer-company identification, identity alignment, marketing strategy

The paper integrates and builds on extant thinking in corporate marketing and CSR to provide an identity-based conceptualization of CSR. Based on this, it positions CSR as an optimal managerial tool for promoting alignment between multiple corporate identities (e.g., internal, external), which ultimately leads to key benefits for the company.

With permission of Emerald

Volume 45
Issue 9/10
Pages 1353–1364

Journal Article

Modeling the loss distribution

Management Science 57 (7): 1267–1287
Sudheer Chava, Catalina Stefanescu, Stuart Turnbull (2011)
Abstract:
Subject(s): Finance, accounting and corporate governance
Keyword(s): default prediction, expected loss, recovery rate

In this paper we focus on modeling and predicting the loss distribution for credit risky assets such as bonds and loans. We model the probability of default and the recovery rate given default based on shared covariates. We develop a new class of default models that explicitly account for sector specific and regime dependent unobservable heterogeneity in firm characteristics. Based on the analysis of a large default and recovery data set over the horizon 1980-2008, we document that the specification of the default model has a major impact on the predicted loss distribution, while the specification of the recovery model is less important. In particular, we find evidence that industry factors and regime dynamics affect the performance of default models, implying that the appropriate choice of default models for loss prediction will depend on the credit cycle and on portfolio characteristics. Finally, we show that default probabilities and recovery rates predicted out-of-sample are negatively correlated, and that the magnitude of the correlation varies with seniority class, industry, and credit cycle.

© 2011 INFORMS

Volume 57
Issue 7
Pages 1267–1287

Journal Article

Progressing to the center: Coordinating project work

Organization Science 22 (4): 961–979
Linus Dahlander, Siobhan O'Mahony (2011)
Abstract:
Subject(s): Strategy and general management
Keyword(s): coordination, project work, knowledge work, technical work, open source software, lateral authority, communities of practice, community project, technical community, community forms

Project forms of organizing are theorized to rely upon horizontal as opposed to vertical lines of authority, but few have examined how this shift affects progression-how people advance in an organization. We argue that progression without hierarchy unfolds when people assume lateral authority over project tasks without managing people. With a longitudinal study of a mature, collectively managed open source software project, we predict the individual behaviors that enable progression to lateral authority roles at two different stages. Although technical contributions are initially important, coordination work is more critical at a subsequent stage. We then explore how lateral authority roles affect subsequent behavior-after gaining authority, individuals spend significantly more time coordinating project work. Our research shows how people progress to the center as opposed to up a hierarchy, and how progression differs by stage and specifies the theoretical relationship between lateral authority roles and the coordination of project work.

© 2011 INFORMS

Volume 22
Issue 4
Pages 961–979

Journal Article

The price of liquidity: The effects of market conditions and bank characteristics

Journal of Financial Economics 102 (2): 344–362
Falko Fecht, Kjell G. Nyborg, Jörg Rocholl (2011)
Abstract:
Subject(s): Finance, accounting and corporate governance
Keyword(s): banks, liquidity, money markets, repos, imbalance, short squeezing, financial health, liquidity networks, state guarantees
JEL Code(s): G12, G21, E43, E58, D44

We study the prices individual banks pay for liquidity (captured by borrowing rates in repos with the central bank and benchmarked by the overnight index swap) as a function of market conditions and bank characteristics. These prices depend in particular on the distribution of liquidity across banks, which is calculated over time using individual bank level data on reserve requirements and actual holdings. Banks pay more for liquidity when positions are more imbalanced across banks, consistent with the existence of short squeezing. We also document that small banks pay more for liquidity and are more vulnerable to squeezes. Healthier banks pay less, but contrary to what one might expect, banks in formal liquidity networks do not. State guarantees reduce the price of liquidity, but do not protect against squeezes.

With permission of Elsevier

Volume 102
Issue 2
Pages 344–362

Journal Article

Made in heaven - produced on earth: Creative leadership as art of projection

Journal of Business Strategy 32 (4): 12–24
Jörg Reckhenrich, Martin Kupp, Jamie Anderson (2011)
Abstract:
Subject(s): Strategy and general management
Keyword(s): arts, leadership, leadership projection, story telling

Purpose - The paper "Made in heaven - produced on earth: creative leadership as art of projection" is about the concept of projection in the context of leadership.

Design/methodology/approach - This article takes a close look at Jeff Koons, a successful and highly controversial contemporary artist. The paper explores the way in which storytelling linked to his artwork has been the key element of the way he has projected himself as a credible leader in the world of contemporary art.

Findings - This article examines how the artist Koons is using the three universal story lines used by leaders to excite and gain buy-in from an audience as described by the sociologist Howard Gardner: (1) who am I - How life experience has shaped my individuality and character; (2) who are we - Demonstrate the values and behaviors of a group; and (3) where are we going - Explains what is new, and creates a sense of excitement about direction. The authors find that throughout his career and his various artistic production cycles like the inflatables, the New, Equilibrium, Luxury Degradation, Statuary, Kiepenkerl, Banality, Made in Heaven, Puppy, Celebration, Easyfun, Popeye, and Hulk Elvis, Jeff Koons is using key elements of the art of projection by linking his art work to the three universal story lines who am I, who are we, and where are we going. A closer analysis of Koons' work reveals how he has leveraged each of these dimensions of effective storytelling as a broad narrative to link his various series together as a consistent whole.

Practical implications - The authors suggest that Koons' use of storytelling, and the manner in which he has come to embody the themes and concepts that he seeks to communicate through his artworks, present powerful lessons for managers as to how they can manage their own leadership projection. By looking at Koons, managers can better understand not only how to establish credibility and drive buy-in, but also how to project themselves as leaders in their respective fields of business endeavor.

Originality/value - While there is literature on the art of storytelling there has been less focus on the sphere of art and how artists use storytelling and projection to take their audience with them. This new perspective not only creates new insights on the concept of storytelling and potential future research but has implications for managers and leaders and the way they want to drive change in organizations and take people on their managerial journey.

With permission of Emerald Insight

Volume 32
Issue 4
Pages 12–24

Journal Article

Eine psychologisch sichere Atmosphäre schaffen

Wirtschaft und Weiterbildung 7–8: 56–57
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): coaching, psychological safety, leadership development
Volume 7–8
Pages 56–57

Journal Article

Umgang mit Emotionen in Verhandlungen (Teil 2) [Dealing with emotions in negotiations]

Zeitschrift für Konfliktmanagement 3: 68–71
K.P. Berger, M. Bernhardt, Andreas Bernhardt (2011)
Abstract:
Subject(s): Strategy and general management
Volume 3
Pages 68–71

Journal Article

Global retail lending in the aftermath of the US financial crisis: Distinguishing between supply and demand effects

Journal of Financial Economics 100 (3): 556–578
Manju Puri, Jörg Rocholl, Sascha Steffen (2011)
Abstract:
Subject(s): Finance, accounting and corporate governance
Keyword(s): bank lending channel, loan supply, consumer lending, credit rationing, relationships
JEL Code(s): G01, G21, F34

This paper examines the broader effects of the U.S. financial crisis on global lending to retail
customers. In particular we examine retail bank lending in Germany using a unique dataset of
German savings banks during the period 2006 through 2008 for which we have the universe of
loan applications and loans granted. Our experimental setting allows us to distinguish between
savings banks affected by the U.S. financial crisis through their holdings in Landesbanken with
substantial subprime exposure and unaffected savings banks. The data enable us to distinguish
between demand and supply side effects of bank lending and find that the U.S. financial crisis
induced a contraction in the supply of retail lending in Germany. While demand for loans goes
down, it is not substantially different for the affected and non-affected banks. More importantly,
we find evidence of a significant supply side effect in that the affected banks reject substantially
more loan applications than non-affected banks. This result is particularly strong for smaller and
more liquidity-constrained banks as well as for mortgage as compared to consumer loans. We
also find that bank-depositor relationships help mitigate these supply side effects.

With permission of Elsevier

Volume 100
Issue 3
Pages 556–578

Journal Article

Return on Marketing - Unternehmenswert im Fokus

Marketing Review St. Gallen 28 (3): 8–12
Mario Rese, Daniel Weber, Ulrich Linnhoff (2011)
Abstract:
Subject(s): Marketing
Keyword(s): return on marketing
Volume 28
Issue 3
Pages 8–12

Journal Article

Estimating level effects in diffusion of a new technology: Barcode scanning at the checkout counter

Applied Economics 43 (14): 1737–1748
Jonathan Beck, Michał Grajek, Christian Wey (2011)
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): diffusion, information technology, retail competition
JEL Code(s): L5, L81, O33
Volume 43
Issue 14
Pages 1737–1748

Journal Article

Umgang mit Emotionen in Verhandlungen (Teil 1) [Dealing with emotions in negotiations]

Zeitschrift für Konfliktmanagement 2: 40–44
K.P. Berger, M. Bernhardt, Andreas Bernhardt (2011)
Abstract:
Subject(s): Strategy and general management
Volume 2
Pages 40–44

Journal Article

Die Organisation als Kunstwerk

Personalwirtschaft 4: 34–36
Jörg Reckhenrich, Martin Kupp (2011)
Abstract:
Subject(s): Strategy and general management
Volume 4
Pages 34–36

Journal Article

Career entrepreneurship

Organizational Dynamics 40 (2): 127–135
Konstantin Korotov, Svetlana Khapova, Michael B. Arthur (2011)
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): careers, career entrepreneurship, career coaching, career management

This article introduces "career entrepreneurship," a rapidly spreading phenomenon in the global knowledge-driven economy. Career entrepreneurship involves taking an entrepreneurial approach to managing our careers. It means doing things that seem "illegitimate" to other people and contradict socially-recognized and accepted sequences of work experiences in terms of age, education, or socio-economic progression. This kind of behavior challenges established norms about typical career development. The evidence presented in this article suggests new possibilities for thinking about the way individuals invest in their careers, new insights for organizations interested in capturing the potential of career entrepreneurship, and new ideas for career and life coaches to support people embracing the phenomenon. The article offers a primer on career entrepreneurship to all three groups of readers, calling for more effective collaborative relationships and more effective leveraging of individuals' career investments.

With permission of Elsevier

Volume 40
Issue 2
Pages 127–135

Journal Article

How to measure patent thickets: A novel approach

Economics Letters 111 (1): 6–9
Georg von Graevenitz, Dietmar Harhoff, Stefan Wagner (2011)
Abstract:
Subject(s): Technology, R&D management
Keyword(s): patenting, patent thickets, patent portfolio races, complexity
JEL Code(s): L13, L20, O34

The existing literature identifies patent thickets indirectly. In this paper we propose a novel measure based on patent citations which allows us to measure the density of patent thickets directly. We discuss the algorithm which generates the measure and present descriptive results validating it. Moreover, we identify technology areas which are particularly impacted by patent thickets.

With permission of Elsevier

Volume 111
Issue 1
Pages 6–9

Journal Article

Other-regarding preferences in general equilibrium

Review of Economic Studies 78 (2): 613–639
Martin Dufwenberg, Paul Heidhues, Georg Kirchsteiger, Frank Riedel, Joel Sobel (2011)
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): markets, other-regarding preferences, self-interest, welfare theorems
JEL Code(s): D50, D62, D64

We study competitive market outcomes in economies where agents have other-regarding preferences (ORPs). We identify a separability condition on monotone preferences that is necessary and sufficient for one's own demand to be independent of the allocations and characteristics of other agents in the economy. Given separability, it is impossible to identify ORPs from market behaviour: agents behave as if they had classical preferences that depend only on own consumption in competitive equilibrium. If preferences, in addition, depend only on the final allocation of consumption in society, the Second Welfare Theorem holds as long as any increase in resources can be distributed in a way that makes all agents better off. The First Welfare Theorem generally does not hold. Allowing agents to care about their own consumption and the distribution of consumption possibilities in the economy, the competitive equilibria are efficient given prices if and only if there is no Pareto-improving redistribution of income.

© The Author 2011. Published by Oxford University Press on behalf of The Review of Economic Studies Limited.

Volume 78
Issue 2
Pages 613–639

Pages