This is a picture of ESMT books and working papers


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

LeChatelier-Samuelson principle in games and pass-through of shocks

Journal of Economic Theory 168 (March): 44–54
Alexei Alexandrov, Özlem Bedre-Defolie (2017)
Subject(s): Economics, politics and business environment
Keyword(s): LeChatelier principle, cost passthrough, multiproduct oligopoly
JEL Code(s): C72, D43, D11

The LeChatelier-Samuelson principle states that, as a reaction to a shock, an agent's short-run adjustment of an affected action is smaller than its long-run adjustment (when the agent can also adjust other related actions). We extend the principle to strategic environments where the long-run adjustment also accounts for other players adjusting their strategies. We show that the principle holds for supermodular games (strategic complements) satisfying monotone comparative statics and provide sufficient conditions for the principle to hold in games of strategic substitutes/heterogeneity. We discuss the principle's implications for cost pass-through of multiproduct firms.

Volume 168
Issue March
Pages 44–54

Journal Article

What every business leader should know and do about digital

Cutter Business Technology Journal 30 (1): 6–13
Joe Peppard, John Thorp (2017)
Subject(s): Information technology and systems
Volume 30
Issue 1
Pages 6–13

Journal Article

The open innovation research landscape: Established perspectives and emerging themes across different levels of analysis

Industry and Innovation 24 (1): 8–40
Marcel Bogers, Ann-Kristin Zobel, Allan Afuah, Esteve Almirall, Sabine Brunswicker, Linus Dahlander, Lars Frederiksen et al. (2017)
Subject(s): Information technology and systems, Technology, R&D management
Keyword(s): open innovation, review, research, theory, contingencies, knowledge, collaboration
JEL Code(s): D83, O30

This paper provides an overview of the main perspectives and themes emerging in research on open innovation (OI). The paper is the result of a collaborative process among several OI scholars – having a common basis in the recurrent Professional Development Workshop on “Researching Open Innovatio” at the Annual Meeting of the Academy of Management. In this paper, we present opportunities for future research on OI, organised at different levels of analysis. We discuss some of the contingencies at these different levels, and argue that future research needs to study OI – originally an organisational-level phenomenon – across multiple levels of analysis. While our integrative framework allows comparing, contrasting and integrating various perspectives at different levels of analysis, further theorising will be needed to advance OI research. On this basis, we propose some new research categories as well as questions for future research – particularly those that span across research domains that have so far developed in isolation.

Volume 24
Issue 1
Pages 8–40

Journal Article

Bitstream Fault Injections (BiFI) – Automated fault attacks against SRAM-based FPGAs

IEEE Transactions on Computers PP (99): 1–13
Pawel Swierczynski, Georg T. Becker, Amir Moradi, Christof Paar (2017)
Subject(s): Information technology and systems, Technology, R&D management
Keyword(s): Bitstream encryption vulnerability, FPGA security, bitstream fault injection, automated key recovery, AES
Volume PP
Issue 99
Pages 1–13

Journal Article

Sustainability lessons from the front lines

Sloan Management Review 58 (2): 71–78
CB Bhattacharya, Paul Polman (2017)
Subject(s): Ethics and social responsibility
Keyword(s): Business models, leading change, sustainability initiatives, sustainability strategy
Volume 58
Issue 2
Pages 71–78

Journal Article

How do brokers broker? Tertius gaudens, tertius iungens, and the temporality of structural holes

Organization Science 27 (6): 1343–1360
Eric Quintane, Gianluca Carnabuci (2017)
Subject(s): Human resources management/organizational behavior
Keyword(s): Brokerage process, unembedded interactions, tertius gaudens and tertius iungens, relational event model

Organizational network research has demonstrated that multiple benefits accrue to people occupying brokerage positions. However, the extant literature offers scant evidence of the process postulated to drive such benefits (information brokerage) and therefore leaves unaddressed the question of how brokers broker. We address this gap by examining the information-brokerage interactions in which actors engage. We argue that the information-brokerage strategies of brokers differ in three critical ways from those of actors embedded in denser network positions. First, brokers more often broker information via short-term interactions with colleagues outside their network of long-term relationships, a process we label “unembedded brokerage.” Second, when they engage in unembedded brokerage, brokers are more likely than are actors in dense network positions to intermediate the flow of information between the brokered parties, consistent with a tertius gaudens strategy. Conversely, and third, when they broker information via their network of long-term ties (embedded brokerage), brokers are more likely than are densely connected actors to facilitate a direct information exchange between the brokered parties, consistent with a tertius iungens strategy. Using a relational event model, we find support for our arguments in an empirical analysis of email communications among employees in a medium-sized, knowledge-intensive organization, as well as in a replication study. The theory and evidence we present advance a novel, temporal perspective on how brokers broker, which reconciles structural and process views of network brokerage. Our findings substantiate the notion of brokers as a dynamic force driving change in organizational networks, and they help to integrate within a unitary explanatory framework tertius iungens and tertius gaudens views of brokerage.

© 2016, INFORMS

Volume 27
Issue 6
Pages 1343–1360

Journal Article

Inferior products and profitable deception

Review of Economic Studies 84 (1): 323–356
Paul Heidhues, Botond Kőszegi, Takeshi Murooka (2017)
Subject(s): Economics, politics and business environment
JEL Code(s): D14, D18, D21

We analyze conditions facilitating profitable deception in a simple model of a competitive retail market. Firms selling homogenous products set anticipated prices that consumers understand and additional prices that naive consumers ignore unless revealed to them by a firm, where we assume that there is a binding floor on the anticipated prices. Our main results establish that “bad" products (those with lower social surplus than an alternative) tend to be more reliably profitable than “good" products. Specifically, (1) in a market with a single socially valuable product and sufficiently many firms, a deceptive equilibrium - in which firms hide additional prices - does not exist and firms make zero profits. But perversely, (2) if the product is socially wasteful, then a profitable deceptive equilibrium always exists. Furthermore, (3) in a market with multiple products, since a superior product both diverts sophisticated consumers and renders an inferior product socially wasteful in comparison, it guarantees that firms can profitably sell the inferior product by deceiving consumers. We apply our framework to the mutual-fund and credit-card markets, arguing that it explains a number of empirical findings regarding these industries.

This is an open access article.

Volume 84
Issue 1
Pages 323–356

Journal Article

The impact of blockchain on the energy sector – expectations from German energy executives

European Business Review November–December: 41–44
Christoph Burger, Andreas Kuhlmann, Philipp Richard, Jens Weinmann (2016)
Subject(s): Economics, politics and business environment
Keyword(s): Technology, big data & analytics, Internet of Things
Issue November–December
Pages 41–44

Journal Article

When do customers get what they expect? Understanding the ambivalent effects of customers' service expectations on satisfaction

Journal of Service Research 19 (4): 361–379
Johannes Habel, Sascha Alavi, Christian Schmitz, Janina-Vanessa Schneider, Jan Wieseke (2016)
Subject(s): Marketing
Keyword(s): Service expectations, customer satisfaction, information processing, ability to evaluate, motivation to evaluate
JEL Code(s): M310

Extant research established that customers’ expectations play an ambivalent role in the satisfaction formation process: while higher expectations are more difficult to meet and thus cause dissatisfaction, they simultaneously increase satisfaction via customers’ perceived performance owing to a placebo effect. However, to date, knowledge is scarce on the question under which conditions either the positive or negative effect of expectations on satisfaction prevails. Building on information processing theory, the authors hypothesize that an essential contingency of the indirect, placebo-based effect is the degree to which customers are able and motivated to process a service experience. Three studies with a total of over 4,000 customers in different service contexts provide strong evidence for this hypothesis. Thus, managers are well advised to provide a realistic or even understated prospect if the service context favors customers’ ability or motivation to evaluate. Conversely, if customers are neither able nor motivated to evaluate the service, increasing customer expectations represents a viable strategy to enhance satisfaction. Relatedly, if customers hold low service expectations, managers should foster customers’ ability and motivation to evaluate the service. In contrast, if service expectations are high, managers may benefit from reducing the likelihood that customers overly focus on the service performance.

Volume 19
Issue 4
Pages 361–379

Journal Article

Multiple rounds in a chain store game

Theory and Decision 81 (4): 571–579
Michael Melles, Rainer Nitsche (2016)
Subject(s): Economics, politics and business environment
Keyword(s): Multimarket firms, entry, predation, reputation
Volume 81
Issue 4
Pages 571–579

Journal Article

A tool for balancing your company's digital investments

Harvard Business Review October
Joe Peppard (2016)
Subject(s): Information technology and systems, Technology, R&D management
Keyword(s): Key operational investments
JEL Code(s): D80

How does your organization manage the money it spends on digital? One surprising finding of my research is that most do not distinguish between different types of digital investments, treating all in a similar way. This situation exists because, believe it or not, a lot of organizations lack any mechanisms to help them actively manage the evaluation, selection, monitoring, and adjustment of digital investments to achieve clearly defined business results while meeting clear risk and return expectations.

Issue October
ISSN 0017-8012 (Print)

Journal Article

Data from a pre-publication independent replication initiative examining ten moral judgement effects

Scientific Data 3
Warren Tierney, Martin Schweinsberg, Jennifer Jordan, Deanna M. Kennedy, Israr Qureshi, S. Amy Sommer, Nico Thornley et al. (2016)
Subject(s): Human resources management/organizational behavior
Keyword(s): Decision making, ethics, psychology, research management

We present the data from a crowdsourced project seeking to replicate findings in independent laboratories before (rather than after) they are published. In this Pre-Publication Independent Replication (PPIR) initiative, 25 research groups attempted to replicate 10 moral judgment effects from a single laboratory’s research pipeline of unpublished findings. The 10 effects were investigated using online/lab surveys containing psychological manipulations (vignettes) followed by questionnaires. Results revealed a mix of reliable, unreliable, and culturally moderated findings. Unlike any previous replication project, this dataset includes the data from not only the replications but also from the original studies, creating a unique corpus that researchers can use to better understand reproducibility and irreproducibility in science.

Volume 3
ISSN 2052-4463 (Online)

Journal Article

Germany's RWE and E.ON splitting: Will they prosper?

EEnergy Informer 26 (10): 10–12
Subject(s): Product and operations management, Strategy and general management, Technology, R&D management
Keyword(s): decentralized energy, RWE, E.ON, Germany, power generators
JEL Code(s): Q40, Q48
Volume 26
Issue 10
Pages 10–12

Journal Article

Die EU-Richtlinie über Netz- und Informationssicherheit: Anforderungen an digitale Dienste [The EU directive on network and information security: Requirements for digital services]

Computer und Recht 2016 (10): 663–670
Subject(s): Technology, R&D management
Volume 2016
Issue 10
Pages 663–670
ISSN 2194-4172 (Online)

Journal Article

On the existence of efficient and fair extensions of communication values for connected graphs

Economics Letters 146 (9): 103–106
Sylvain Béal, André Casajus, Frank Huettner (2016)
Subject(s): Management sciences, decision sciences and quantitative methods
Keyword(s): Shapley value, potential, random partition, concentration of power, communication graph, fairness, efficiency, efficient extension, fair extension, Myerson value
JEL Code(s): C71, D60

We study values for TU games with a communication graph (CO-values). In particular, we show that CO-values for connected graphs that are fair and efficient allow for a unique efficient and fair extension to the full domain.

With permission of Elsevier

Volume 146
Issue 9
Pages 103–106