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
Forthcoming

The Matthew effect as an unjust competitive advantage: Implications for competition near status boundaries

Journal of Management Inquiry
Henning Piezunka, Wonjae Lee, Richard Haynes, Matthew S. Bothner
Abstract:
Keyword(s): Status, competition, tournaments

Merton often envisioned status growth as a process of stepping across a boundary between one status grade and another more elite status grade. Such boundaries include the border between graduate school and a top academic department that young researchers try to traverse, or the frontier between scientists outside the French Academy and scientists inside the French Academy. As it is now common to measure status continuously using network data, the behavioral ramifications of status boundaries have been understudied in recent research. In this essay, we focus on competitive behaviors that emerge near a status boundary because of the desirability - as well as the “double injustice” - of the Matthew effect. Offering insights for future research, we discuss how these competitive behaviors are likely to delay, or even derail, status growth for those who are near a status boundary.

With permission of SAGE Publishing

ISSN 15526542 (Online) 10564926 (Print)

Journal Article
Forthcoming

The risky side of inspirational appeals in personal selling: When do customers infer ulterior salesperson motives?

Journal of Personal Selling & Sales Management (JPSSM)
Sascha Alavi, Johannes Habel, Christian Schmitz, Bianca Richter, Jan Wieseke
Abstract:
Subject(s): Marketing
Keyword(s): inspirational appeals, personal selling, customer emotions, influence tactics
JEL Code(s): M310

In personal selling, the inspirational appeal (IA) is a widely promoted tactic that aims at stimulating customers’ values and ideals, thereby evoking emotions and arousing their enthusiasm for a product. However, whether IAs in fact improve or undermine salespeople’s success in sales talks remains controversial. Therefore, the present study examines consequences and key contingencies of IAs in customer–salesperson interactions in a retailing context, using multi-source data from several retailing industries for three quantitative studies, comprising a total sample of 590 customer and 174 salesperson responses. Drawing on the Multiple Inferences Model (MIM), the authors show that an IA is likely to drive the customer’s inference that the salesperson holds ulterior motives. IAs seem to be particularly detrimental for salespeople with a lack of customer orientation. Beyond expanding research on influence tactics and the ambivalent role of IAs in retailing interactions, these findings can guide practitioners about when to refrain from using an IA.

ISSN 1557–7813 (Online) 0885–3134 (Print)

Journal Article
Forthcoming

The role of leadership in salespeople's price negotiation behavior

Journal of the Academy of Marketing Science
Sascha Alavi, Johannes Habel, Paolo Guenzi, Jan Wieseke
Abstract:
Subject(s): Human resources management/organizational behavior, Marketing
Keyword(s): Sales, leadership, price negotiations, salesperson–customer interaction, transformational leadership, social learning
JEL Code(s): M310

Journal Article
Forthcoming

Will German banks earn their cost of capital?

Contemporary Economic Policy
Andreas Dombret, Yalin Gündüz, Jörg Rocholl
Abstract:
Subject(s): Economics, politics and business environment, Finance, accounting and corporate governance
Keyword(s): German banking sector, low interest period, profitability, hidden and open reserves
JEL Code(s): G21, G28

In recent years, the German banking sector has overcome major challenges such as the global financial crisis and the European debt crisis. This paper analyses a recent development as a particular determinant of the future outlook for the German banking sector. Interest rates are at historically low levels and may remain at these levels for a considerable period of time. Such levels pose a specific challenge to banks which are heavily dependent on interest income, as is the case for most German banks. We consider different interest rate scenarios and analyse the extent to which they cause a further narrowing of the interest rate margin. Our
results indicate that a projected decline in this margin will result in no more than 20% of German banks earning a cost of capital of 8% by the end of this decade. This decline is somewhat alleviated by the fact that German banks can apply a special feature of German accounting standards by using hidden and open reserves.

© 2017 John Wiley & Sons, Ltd.

ISSN 1465-7287 (Online) 1074-3529 (Print)

Journal Article
New

What data on Formula One crashes suggests about workplace rivalries

Harvard Business Review
Henning Piezunka, Wonjae Lee, Richard Haynes, Matthew S. Bothner (2018)
Abstract:
Subject(s): Human resources management/organizational behavior, Management sciences, decision sciences and quantitative methods
Keyword(s): Competition, conflict, social networks, status, tournaments
JEL Code(s): D74, J28

Although we are often drawn to colleagues with whom we have much common, when we are too similar to someone - especially in terms of status - that common ground becomes turf we feel compelled to defend. Status-similarity threatens our uniqueness, fostering an urge to compete with and out-perform a would-be workplace "twin." Our study of collisions among Formula One drivers, from which we offer leadership insights in this article, shows that when two drivers are very similar in terms of status, they are especially likely to engage in dangerous competition that escalates into a collision. In the workplace, if you feel a twin is sizing you up and trying to usher you into a "game of chicken" on the corporate racetrack, remember that crashing will take you both out of the race, so take steps to steer clear of escalating the conflict. For instance, ahead of a meeting with a workplace twin, you can practice anticipatory self-discipline: prior to your encounter, make a deliberate choice to stay aligned with your core values. Then, stay aware of your antagonist, but without being obsessed with them. This way, you won’t get seduced into a boardroom "car wreck." Protect your lane, while keeping your eyes on the finish line.

ISSN 0017-8012 (Print)

Journal Article
New

Research: When you don't have an alternative in a negotiation, try imagining one

Harvard Business Review
Michael Schaerer, Martin Schweinsberg, Roderick I. Swaab (2018)
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): Negotiation, alternatives, social power, first offer, mental simulation
ISSN 0017-8012 (Print)

Journal Article
New

The escalation of competition into conflict in competitive networks of Formula One drivers

Proceedings of the National Academy of Sciences 115 (15): E3361–E3367
Henning Piezunka, Wonjae Lee, Richard Haynes, Matthew S. Bothner (2018)
Abstract:
Subject(s): Human resources management/organizational behavior, Management sciences, decision sciences and quantitative methods
Keyword(s): Competition, conflict, social networks, status, tournaments
JEL Code(s): D74, J28
Volume 115
Issue 15
Pages E3361–E3367

Journal Article
New

Superstars in the making? The broad effects of interdisciplinary centers

Research Policy 47 (3): 543–557
Susan Biancani, Linus Dahlander, Daniel A. McFarland, Sanne Smith (2018)
Abstract:
Subject(s): Technology, R&D management
Keyword(s): Organizations, universities, knowledge, networks, interdisciplinarity, centers

Many universities have developed large-scale interdisciplinary research centers to address societal challenges and to attract the attention of private philanthropists and federal agencies. However, prior studies have mostly shown that interdisciplinary centers relate to a narrow band of outcomes such as publishing and grants. Therefore, we shift attention to include outcomes that have been the centers mandate to influence - namely outreach to the media and private industry, as well as broader research endeavors and securing external funding. Using data covering Stanford University between 1993 and 2014, we study if being weakly and strongly affiliated with interdisciplinary centers in one year relates to and increases (1) knowledge production (publications, grants, and inventions), (2) instruction (numbers of students taught, PhDs, and postdocs advised), (3) intellectual prominence (media mentions, awards won and centrality within the larger collaboration network), and (4) the acquisition of various sources of funding in the next year. Our results indicate that interdisciplinary centers select productive faculty and increase their activity on a broad range of outcomes further, and in ways greater than departments and traditional interdisciplinary memberships, such as courtesy and joint appointments.

With permission of Elsevier

Volume 47
Issue 3
Pages 543–557

Journal Article
New

Willingness to rely on trust in global business collaborations: Context vs. demography

Journal of World Business 53 (3): 373–391
Francis Bidault, José de la Torre, Stelios H. Zanakis, Peter Smith Ring (2018)
Abstract:
Subject(s): Strategy and general management
Keyword(s): Inter-organizational trust; Propensity to trust; Willingness to rely on trust; Trustworthiness; Contextual factors in trust; Demographic factors in trust; Contractual safeguards; International joint ventures (IJVs) and collaborations
JEL Code(s): M16

We examine how 712 executives from several countries, industries and backgrounds are willing to rely on trust (WTRT) when entering a collaborative venture where both partners are at risk. Presented with a specific partnership opportunity they were asked about the level of safeguards required to enter into an agreement. We test for the impact of contextual and demographic conditions and confirmed differences in WTRT between nationalities, but find that several contextual variables mediate this impact. Different nationalities treat three dimensions of trust (integrity, reliability, and benevolence) differently as they are shown to be time dependent. We conclude that context is as important as demography in determining an executive’s WTRT.

With permission of Elsevier

Volume 53
Issue 3
Pages 373–391

Journal Article
New

Is the confidence gap between men and women a myth?

Harvard Business Review
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): Confidence appearance, gender, influence, job performance
ISSN 0017-8012 (Print)

Journal Article

Emergent leadership structures in informal groups: A dynamic, cognitively informed network model

Organization Science 29 (1): 118–133
Gianluca Carnabuci, Cécile Emery, David Brinberg (2018)
Abstract:
Subject(s): Human resources management/organizational behavior, Strategy and general management
Keyword(s): Organizational behavior, general management

This paper advances novel theory and evidence on the emergence of informal leadership networks in groups that feature no formally designated leaders or authority hierarchies. Integrating insights from relational schema and network theory, we develop and empirically test a 3-step process model. The model’s first hypothesis is that people use a “linear-ordering schema” to process information about leadership relations. Taking this hypothesis as a premise, the second hypothesis argues that whenever an individual experiences a particular leadership attribution to be inconsistent with the linear-ordering schema, s/he will tend to reduce the ensuing cognitive inconsistency by modifying that leadership attribution. Finally, the third hypothesis builds on this inconsistency-reduction mechanism to derive implications about a set of network-structural features (asymmetry, a-cyclicity, transitivity, popularity, and inverse-popularity) that are predicted to endogenously emerge as a group’s informal
leadership network evolves. We find broad support for our proposed theoretical model using a multi-method, multi-study approach combining experimental and empirical data. Our study contributes to the organizational literature by illuminating a socio-cognitive dynamics underpinning the evolution of informal leadership structures in groups where formal authority plays a limited role.

© 2018, INFORMS

Volume 29
Issue 1
Pages 118–133

Journal Article

Who needs a reason to indulge? Happiness following reason-based indulgent consumption

International Journal of Research in Marketing 35 (1): 170–184
Francine Espinoza Petersen, Heather J. Dretsch, Yuliya Komarova (2018)
Abstract:
Subject(s): Marketing
Keyword(s): Indulgence, consumption happiness, self-control, feeling right, emotions, luxury

While consumers and marketers perpetuate the lay theory that indulging with a reason is more pleasurable and makes everyone happier, this research identifies a condition under which indulging without a reason “feels right” and produces a more positive emotional reaction. The authors show that indulging with or without a reason and consumers’ trait self-control interact to influence happiness felt following an indulgent purchase. While high self-control consumers are happier when they have a reason to buy indulgent products (e.g., when they can justify the indulgence), low self-control consumers are happier when they do not have a reason to indulge, compared to when they have a reason. That is, indulging with a reason is less pleasurable for consumers with low self-control. This effect on happiness has an impact on downstream judgments about the product and yields important implications for consumer welfare as well as marketing managers. Across four studies we show the effect on consumption happiness, examine consequences of the effect, and report evidence for the underlying process.

With permission of Elsevier

Volume 35
Issue 1
Pages 170–184

Journal Article

Financing capacity investment under demand uncertainty: An optimal contracting approach

Manufacturing and Service Operations Management 20 (1): 85–96
Francis de Véricourt, Denis Gromb (2017)
Abstract:
Subject(s): Management sciences, decision sciences and quantitative methods
Keyword(s): Capacity, optimal contracts, financial constraints, newsvendor model

We study the capacity choice problem of a firm, whose access to capital is hampered by financial frictions, i.e., moral hazard. The firm optimizes both its capacity investment under demand uncertainty and its sourcing of funds from a competitive investor. Ours is the first study of this problem to adopt an optimal contracting approach: feasible sources of funds are derived endogenously from fundamentals and include standard financial claims (debt, equity, convertible debt, etc.). Thus, in contrast to most of the literature on financing capacity investments, our results are robust to a change of financial contract. We characterize the optimal capacity level under optimal financing. First, we find conditions under which a feasible financial contract exists that achieves first-best. When no such contract exists, we find that under optimal financing, the choice of capacity sometimes exceeds strictly the efficient level. Further, the firm invests more when its cash is low, and in some cases less when the project’s unit revenue is high. These results run counter to the newsvendor logic and standard finance arguments. We also show that our main results hold in the case of a strategic monopolist investor, and such an investor may invest more than a competitive one.

© 2017, INFORMS

Volume 20
Issue 1
Pages 85–96

Journal Article

IT-Sicherheitsrecht – Schutz digitaler Dienste, Datenschutz und Datensicherheit [IT security law – Protection of digital services, data protection, and data security]

Computer und Recht 33 (12): 798–804
Abstract:
Subject(s): Economics, politics and business environment, Information technology and systems
Keyword(s): IT security, cybersecurity, cyber law, data protection, privacy, data security
Volume 33
Issue 12
Pages 798–804
ISSN 2194-4172 (Online)

Online Article

Blockchain and smart contracts: Pioneers of the energy frontier

International Business Times
Abstract:
Subject(s): Economics, politics and business environment, Entrepreneurship
Keyword(s): Blockchain, smart contracts, business models, energy transition, P2P networks

Pages