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
New

Too precise to pursue: How precise first offers create barriers-to-entry in negotiations and markets

Organizational Behavior and Human Decision Processes 148 (September): 87–100
Alice J. Lee, David D. Loschelder, Martin Schweinsberg, Malia F. Mason, Adam D. Galinsky (2018)
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): Anchor precision, negotiation entry, barriers-to-entry, first offers, social attribution, decision making

Precise first offers strongly anchor negotiation outcomes. This precision advantage has been previously documented only when the parties were already engaged in a negotiation. We introduce the concept of negotiation entry, i.e., the decision to enter a negotiation with a particular party. We predict that precise prices create barriers-to-entry, reducing a counterpart’s likelihood of entering a negotiation. Six studies (N=1,580) and one archival analysis of real estate sector data (N=11,214) support our barrier-to-entry prediction: Potential negotiators were less likely to enter a negotiation with precise versus round first offers. Using both statistical mediation and experimental-causal-chain analyses, we establish that perceptions of offer maker inflexibility underlie the precision barrier. Furthermore, we demonstrate that this inflexibility mechanism of precision is distinct from the mechanism (being offended) that creates barriers-to-entry for extreme first offers. The discussion theoretically integrates research on first-offer precision and extremity by offering the Precision-Extremity Model of First Offers.

With permission of Elsevier

Volume 148
Issue September
Pages 87–100

Journal Article
New

Appearing self-confident and getting credit for it: Why it may be easier for men than women to gain influence at work

Human Resource Management 57 (4): 839–854
Special Issue: Women's Career Equality and Leadership in Organizations: Creating an Evidence‐based Positive Change July/August 2018
Laura Guillén, Margarita Mayo, Natalia Karelaia (2018)
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): Self-confidence appearance, gender, job performance, prosocial orientation, organizational influence

Appearing self-confident is instrumental for progressing at work. However, little is known about what makes individuals appear self-confident at work. We draw on attribution and social perceptions literatures to theorize about both antecedents and consequences of appearing self-confident for men and women in male-dominated professions. We suggest that performance is one determinant of whether individuals are seen as confident at work, and that this effect is moderated by gender. We further propose that self-confidence appearance increases the extent to which individuals exert influence in their organizations. However, for women, appearing self-confident is not enough to gain influence. In contrast to men, women in addition are “required” to be prosocially oriented. Multisource, time-lag data from a technological company showed that performance had a positive effect on self-confidence appearance for both men and women. However, the effect of self-confidence appearance on organizational influence was moderated by gender and prosocial orientation, as predicted. Our results show that through self-confidence appearance, job performance directly enables men to exert influence in their organizations. In contrast, high performing women gain influence only when self-confidence appearance is coupled with prosocial orientation. We discuss the implications of our results for gender equality, leadership, and social perceptions.

© 2017 Wiley Periodicals, Inc.

Volume 57
Issue 4
Pages 839–854

Journal Article
New

Competition, loan rates and information dispersion in nonprofit and for-profit microcredit markets

Journal of Money, Credit and Banking 50 (5): 893–937
Guillermo Baquero, Malika Hamadi, Andréas Heinen (2018)
Abstract:
Subject(s): Finance, accounting and corporate governance
Keyword(s): Bank competition, microfinance, microcredit, microbank, loan rates, information dispersion, PAR, portfolio quality
JEL Code(s): D4, G21, L1, O1

We study the effects of competition on loan rates and portfolio-at-risk in microcredit markets using a new database from rating agencies, covering 379 microbanks located in 67 countries between 2002 and 2008. Our study reveals different competitive effects in nonprofit and for-profit microbanks. We find that for-profit microbanks charge significantly lower rates and exhibit improved portfolio-at-risk in less concentrated markets. In particular, the effect of concentration on loan rates is nearly three times the one reported in previous studies in banking. In contrast, nonprofit microbanks are relatively insensitive to changes in concentration. We control for interest rate ceilings, which very significantly reduce rates in for-profit microbanks. However, our study also uncovers a competitive interplay between for-profit and nonprofit microbanks. In particular, the PAR of nonprofit microbanks deteriorates when the proportion of profit-oriented microbanks increases. Finally, we find evidence consistent with dispersion of borrower-specific information among competing microbanks in the for-profit sector, even after controlling for the presence of credit registries.

Volume 50
Issue 5
Pages 893–937

Journal Article
New

Brand positioning and consumer taste information

European Journal of Operational Research 268 (2): 555–568
Arcan Nalca, Tamer Boyaci, Saibal Ray (2018)
Abstract:
Subject(s): Product and operations management
Keyword(s): Supply chain management, uncertain consumer taste, product introduction, product positioning, store brands, national brands, information acquisition, information sharing, vertical differentiation, horizontal differentiation

In this paper, we study how a retailer can benefit from acquiring consumer taste information in the presence of competition between the retailers store brand (SB) and a manufacturers national brand (NB). In our model, there is ex-ante uncertainty about consumer preferences for distinct product features, and the retailer has an advantage in resolving this uncertainty because of his close proximity to consumers. Our focus is on the impact of the retailers information acquisition and disclosure strategy on the positioning of the brands. Our analysis reveals that acquiring taste information allows the retailer to make better SB positioning decisions. Information disclosure, however, enables the manufacturer to make better NB positioning decisions – which in return may benefit or hurt the retailer. For instance, if a particular product feature is quite popular, then it is beneficial for the retailer to incorporate that feature into the SB, and inform the manufacturer so that the NB also includes this feature. Information sharing, in these circumstances, benefits both the retailer and the manufacturer, even though it increases the intensity of competition between the brands. But, there are situations in which the retailer refrains from information sharing so that a potentially poor positioning decision by the NB makes the SB the only provider of the popular feature. The retailer always benefits from acquiring information. However, it is beneficial to the manufacturer only if the retailer does not introduce an SB due to the associated high fixed cost.

With permission of Elsevier

Volume 268
Issue 2
Pages 555–568

Journal Article
New

The barriers to recruiting and employing digital talent

Harvard Business Review
Linus Dahlander, Martin Wallin (2018)
Abstract:
Subject(s): Human resources management/organizational behavior, Strategy and general management
ISSN 0017-8012 (Print)

Journal Article
New

Imaginary alternatives: The effects of mental simulation on powerless negotiators

Journal of Personality and Social Psychology 115 (1): 96–117
Michael Schaerer, Martin Schweinsberg, Roderick I. Swaab (2018)
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): Negotiation, alternatives, power, first offer, mental simulation

The present research demonstrates that negotiators can act powerfully without having power. Researchers and practitioners advise people to obtain strong alternatives prior to negotiating to enhance their power. However, alternatives are not always readily available, often forcing negotiators to negotiate without much, or any, power. Building on research suggesting that subjective feelings of power and objective outcomes are disconnected and that mental simulation can increase individuals' aspirations, we hypothesized that the mental imagery of a strong alternative could provide similar psychological benefits to having an actual alternative. Our studies demonstrate that imagining strong alternatives causes individuals to negotiate more ambitiously and provides them with a distributive advantage: negotiators reached more profitable agreements when they either had a strong tendency to think about better alternatives (Study 1) or when they were instructed to mentally simulate an attractive alternative (Studies 3-4). Mediation analyses suggest that mental simulation boosts performance because it increases negotiators' aspirations which translate into more ambitious first offers (Studies 2-4), but only when the simulated alternative is attractive (Study 2b). Our findings further show that mental simulations are only beneficial when there is sufficient room in the negotiation to reach a profitable agreement, but backfire in settings where negotiators' positions are difficult to reconcile (Study 5). An internal meta-analysis of the file-drawer produces effect size estimates free of publication bias and demonstrates the robustness of the effect. Our findings contribute to research on social power, negotiations, and mental simulation.

Copyright © 2018 American Psychological Association.

Reproduced with permission.

Volume 115
Issue 1
Pages 96–117
ISSN 1939-1315 (Online) 0022-3514 (Print)

Journal Article
New

Pricing when customers have limited attention

Management Science 64 (7): 2995–3014
Tamer Boyaci, Yalçın Akçay (2018)
Abstract:
Subject(s): Product and operations management
Keyword(s): Pricing, choice behavior, rational inattention, information acquisition, signaling game

We study the optimal pricing problem of a monopolistic firm facing customers with limited attention and capability to process information about the value (quality) of a single offered product. We model customer choice based on the theory of rational inattention in the economics literature, which enables us to capture not only the impact of true quality and price, but also the intricate effects of customer’s prior beliefs and cost of information acquisition and processing. We formulate the firm’s price optimization problem assuming that the firm can also use the price to signal the quality of the product to customers. To delineate the economic incentives of the firm, we first characterize the pricing and revenue implications of customer’s limited attention without signaling, and then use these results to explore Perfect Bayesian Equilbiria (PBE) of the strategic pricing signaling game. As an extension, we consider heterogeneous customers with different information costs as well as prior beliefs. We discuss the managerial implications of our key findings and prescribe insights regarding information provision and product positioning.

© 2017, INFORMS

Volume 64
Issue 7
Pages 2995–3014

Journal Article
New

The role of leadership in salespeople's price negotiation behavior

Journal of the Academy of Marketing Science 46 (4): 703–724
Sascha Alavi, Johannes Habel, Paolo Guenzi, Jan Wieseke (2018)
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
Volume 46
Issue 4
Pages 703–724

Journal Article

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

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

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

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

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

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

Pages