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

The dynamics of CIO derailment: How CIOs come undone and how to avoid it

Business Horizons 59 (1): 61–70
Anthony B. Gerth, Joe Peppard (2016)
Abstract:
Subject(s): Human resources management/organizational behavior, Information technology and systems, Technology, R&D management
Keyword(s): Chief information officer, chief digital officer, digitization, executive derailment, CIO turnover, CIO success, digital leadership, digital transformation

With information technology (IT) becoming ever more ubiquitous and pervasive, the resulting deluge of data is driving a wave of digital disruption. No industry, it seems, is immune, and business performance is increasingly dependent on the effective use of IT and investments in technology that generate real business benefits. Yet research continues to report that most of these investments don’t pay off as expected. Blame for such scenarios is normally placed at the feet of the Chief Information Officer (CIO). Some commentators have even suggested that it is now time to replace the CIO role with that of CDO (Chief Digital Officer). This line of thinking ignores the inherent organizational dynamics that lead to the derailment of the executive in charge of IT; merely changing the job title won’t fix the problem. This article uses research conducted over the course of 8 years to illuminate reasons why CIO leaders are derailed, and what they and the CEO can do to avoid this outcome. Causes of derailment are presented in detail, and prescriptive advice is given for CIOs and CEOs alike regarding how to address causes of executive failure in leading the digital transformation of organizations.

With permission of Elsevier

Volume 59
Issue 1
Pages 61–70

Journal Article

Efficiencies defence in telecom mergers and other investment intensive industries

European Competition Law Review 37 (1): 7–13
Rainer Nitsche, Lars Wiethaus (2016)
Abstract:
Subject(s): Economics, politics and business environment
Volume 37
Issue 1
Pages 7–13

Journal Article

Statistik: Einfluss auf das Ergebnis [Statistics: Influence on results]

Harvard Business Manager 1
Abstract:
Subject(s): Marketing
Keyword(s): Market research, customer satisfaction, statistics
JEL Code(s): M310

Journal Article

Warm glow or extra charge? The ambivalent effect of corporate social responsibility activities on customers' perceived price fairness

Journal of Marketing 80 (1): 84–105
Johannes Habel, Laura Marie Schons, Sascha Alavi, Jan Wieseke (2016)
Abstract:
Subject(s): Marketing
Keyword(s): Corporate social responsibility, price fairness, cost perceptions, behavioral pricing
JEL Code(s): M310

Prior research has firmly established that consumers draw benefits from a firm’s engagement in corporate social responsibility (CSR), especially the feeling of a “warm glow.” These benefits positively affect several desirable outcomes, such as willingness to pay and customer loyalty. The authors propose that consumers do not blindly perceive benefits from a firm’s CSR engagement but tend to suspect that a firm’s prices include a markup to finance the CSR engagement. Taking customers’ benefit perceptions and price markup inferences into account, the authors suggest that CSR engagement has mixed effects on consumers’ evaluation of price fairness and, thus, on subsequent outcomes such as customer loyalty. The authors conduct one qualitative study and four quantitative studies leveraging longitudinal field and experimental data from more than 4,000 customers and show that customers indeed infer CSR price markups, entailing mixed effects of firms’ CSR engagement on price fairness. The authors find that perception critically depends on customers’ CSR attributions, and they explore the underlying psychological mechanisms. They propose communication strategies to optimize the effect of CSR engagement on perceived price fairness.

With the permission of the American Marketing Association

Volume 80
Issue 1
Pages 84–105

Journal Article

Fatale Fehlerkultur – warum Skandale viel mit Führung zu tun haben

Wirtschaftspsychologie aktuell 4
Jan U. Hagen (2015)
Abstract:
Subject(s): Human resources management/organizational behavior, Strategy and general management

Journal Article

Efficient extensions of the Myerson value

Social Choice and Welfare 45 (5): 819–827
Sylvain Béal, André Casajus, Frank Huettner (2015)
Abstract:
Subject(s): Management sciences, decision sciences and quantitative methods
JEL Code(s): C71, D60
Volume 45
Issue 5
Pages 819–827

Journal Article

Funktionsweise und Einschätzung des Comprehensive Assessment [Operation and assessment of comprehensive assessment]

Zeitschrift für betriebswirtschaftliche Forschung (ZfbF) 12: 418–443
Sascha Steffen, Lea Steinruecke (2015)
Abstract:
Subject(s): Finance, accounting and corporate governance
Issue 12
Pages 418–443

Journal Article

What is public relations to society? Toward an economically informed understanding of public relations

Public Relations Review 41 (5): 719–725
Gregor Halff, Anne Gregory (2015)
Abstract:
Subject(s): Marketing
Keyword(s): Public relations, society, economic theory, information asymmetry

The notion of public relations contributing to the fabric of society is heavily contested in the public sphere and under-researched by the academy. The authors of this paper propose that the study of the relevance of public relations to society can be enlightened by turning to economics. Using information asymmetry as a framework, the argument is that public relations can be analyzed as a social institution that both helps to mitigate market imperfections and consequently increases the efficiency with which society’s resources are allocated as well as the chances for more market participants to derive value out of economic transactions.

With permission of Elsevier

Volume 41
Issue 5
Pages 719–725

Journal Article

Stakeholder-centricity a precondition to managing sustainability successfully

Global Policy 6 (4): 483–485
Abstract:
Subject(s): Ethics and social responsibility
Volume 6
Issue 4
Pages 483–485

Journal Article

Customer reactions to downsizing: When and how is satisfaction affected?

Journal of the Academy of Marketing Science 43 (6): 768–789
Johannes Habel, Martin Klarmann (2015)
Abstract:
Subject(s): Marketing, Strategy and general management
Keyword(s): Customer satisfaction, organizational downsizing, layoffs, firm performance, organizational slack, panel data analysis
JEL Code(s): M310

Organizational downsizing to cut costs frequently creates new, “hidden costs” that neutralize potential increases in productivity. Customer dissatisfaction is such an overlooked downsizing outcome. Using longitudinal data from the American Customer Satisfaction Index (ACSI), Compustat, and a consumer survey this study analyzes satisfaction outcomes of downsizing. It extends research in this domain to B2C markets and explicitly addresses environmental influences on the downsizing–satisfaction link. Results indicate that there is a negative effect of downsizing on customer satisfaction. It is particularly pronounced for companies (1) with little organizational slack, (2) with high labor productivity, or (3) in industries with high R&D intensity. Moreover, downsizing has a stronger negative impact on customer satisfaction in product categories with (4) high risk importance and (5) low probability for consumer errors as well as (6) low level of brand consciousness. Furthermore, customer satisfaction mediates the effect of downsizing on financial performance. The results provide an explanation for why so many downsizing projects fail and what managers can do to prevent adverse effects of downsizing on customer satisfaction and financial performance.

© Academy of Marketing Science 2014. With permission of Springer

Volume 43
Issue 6
Pages 768–789

Journal Article

Corporate social responsibility, multi-faceted job-products, and employee outcomes

Journal of Business Ethics 131 (2): 319–335
Shuili Du, CB Bhattacharya, Sankar Sen (2015)
Abstract:
Subject(s): Human resources management/organizational behavior, Marketing
Keyword(s): Corporate social responsibility, job product, employee job performance, cluster analysis, internal marketing, ideological job needs, developmental job needs, employee satisfaction, employee turnover intention

This paper examines how employees react to their organizations’ corporate social responsibility (CSR) initiatives. Drawing upon research in internal marketing and psychological contract theories, we argue that employees have multi-faceted job needs (i.e., economic, developmental, and ideological needs) and that CSR programs comprise an important means to fulfill developmental and ideological job needs. Based on cluster analysis, we identify three heterogeneous employee segments, Idealists, Enthusiasts, and Indifferents, who vary in their multi-faceted job needs and, consequently, their demand for organizational CSR. We further find that an organization’s CSR programs generate favorable employee-related outcomes, such as job satisfaction and reduction in turnover intention, by fulfilling employees’ ideological and developmental job needs. Finally, we find that CSR proximity strengthens the positive impact of CSR on employee-related outcomes. This research reveals significant employee heterogeneity in their demand for organizational CSR and sheds new light on the underlying mechanisms linking CSR to employee-related outcomes

© Springer Science+Business Media Dordrecht 2014. With permission of Springer

Volume 131
Issue 2
Pages 319–335

Journal Article

Innovation performance of the US American and European electricity supply industry

Energy Policy 86: 351–359
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): Innovation, research, collaboration, performance, electricity, energy

Using a production function approach based on Cobb–Douglas, this analysis relates R&D efforts of 32 electric utilities on both sides of the Atlantic to their performance in terms of labour productivity. We find that higher R&D levels generally have a positive impact on revenues. However, only in the sub-sample of 16 electricity suppliers in Europe this effect is significant. Knowledge spill-over effects can be estimated for the US American sub-sample, since US utilities have bundled their R&D efforts in a centralized research institution and have to report that data. Our analysis reveals, though, that collaborative research efforts do not lead to positive spill-overs at the assumption of a time delay of one year.

Copyright © 2015 Elsevier Ltd. All rights reserved

Volume 86
Pages 351–359

Journal Article

Hidden efficiencies: The relevance of business justifications in abuse of dominance cases

Journal of Competition Law and Economics 11 (3): 671–700
Hans W. Friederiszick, Linda Gratz (2015)
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): European competition policy, abuse of dominance, efficiency defense
JEL Code(s): K21, L21, L40
Volume 11
Issue 3
Pages 671–700

Journal Article

Is leadership a part of me? A leader identity approach to understanding the motivation to lead

Leadership Quarterly 26 (5): 802–820
Laura Guillén, Margarita Mayo, Konstantin Korotov (2015)
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): Motivation to lead, self-to-leader comparisons, self-efficacy perceptions, leader identity

Drawing on social comparison and identity literature, we suggest that individuals' comparisons of themselves to their own standards of leadership relate to their leadership motivation. We propose and test a model of motivation to lead (MTL) based on two types of self-to-leader comparisons: self-to-exemplar and self-to-prototype comparisons with respect to affiliation. In our main study, using data from a sample of 180 executives, we apply structural equation models to test our predictions. We find that self-comparisons with concrete, influential leaders of the past or present (self-to-exemplar comparisons) relate positively to MTL. We also find that self-comparisons with more general representations of leaders (self-to-prototype comparisons in affiliation) relate to MTL. Whereas the effect of self-to-exemplar comparisons is mediated through individuals' leadership self-efficacy perceptions, the effect of self-to-prototype comparisons is not. We replicate these findings in three follow-up studies using different research designs. We derive implications for theory and practice.

With permission of Elsevier

Volume 26
Issue 5
Pages 802–820

Journal Article

On the welfare costs of naiveté in the US credit-card market

Review of Industrial Organization 47 (3): 341–354
Paul Heidhues, Botond Köszegi (2015)
Abstract:
Subject(s): Economics, politics and business environment, Finance, accounting and corporate governance
Keyword(s): Sophistication, naiveté, credit market, consumer exploitation

In the presence of naive consumers, a participation distortion arises in competitive markets because the additional profits from naive consumers lead competitive firms to lower transparent prices below cost. Using a simple calibration, we argue that the participation distortion in the US credit-card market may be large. Our results call for a redirection of some of the large amount of empirical research on the quantification of the welfare losses from market power, to the quantification of welfare losses that are due to the firms’ reactions to consumer misunderstandings.

© Springer Science+Business Media New York 2015. With permission of Springer

Volume 47
Issue 3
Pages 341–354

Pages