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

Time-based competition with benchmark effects

Manufacturing and Service Operations Management 16 (1): 119–132
Liu Yang, Francis de Véricourt, Peng Sun (2014)
Abstract:
Subject(s): Product and operations management
Keyword(s): Waiting time competition; benchmark effect; loss aversion; queues; game theory

We consider a duopoly where firms compete on waiting times in the presence of an industry benchmark. The demand captured by a firm depends on the gap between the firm's offer and the benchmark. We refer to the benchmark effect as the impact of this gap on demand. The formation of the benchmark is endogenous and depends on both firms' choices. When the benchmark is equal to the shorter of the two offered delays, we characterize the unique Pareto optimal Nash equilibrium. Our analysis reveals a stickiness effect in which firms equate their delays at the equilibrium when the benchmark effect is sufficiently strong. When the benchmark corresponds to a weighted average of the two offered delays, we show the existence of a pure Nash equilibrium. In this case, we reveal a reversal effect, in which the market leader, i.e., the firm that offers a shorter delay, becomes the follower when the benchmark effect is sufficiently strong. In both cases, we show that customers' equilibrium waiting times are shorter with the benchmark effect than without it. Our models also capture customers' loss aversion, which, in our setting, states that demand is more sensitive to the gap between the delay and the benchmark when the delay is longer than the benchmark (loss) than when it is shorter (gain). We characterize the impact of this loss aversion on the equilibrium in both settings. Finally, we show numerically that the stickiness and reversal effects still exist when firms also compete on price.

© 2014 INFORMS

Volume 16
Issue 1
Pages 119–132

Journal Article

Incidence and growth of patent thickets: The impact of technological opportunities and complexity

Journal of Industrial Economics 61 (3): 521–563
Georg von Graevenitz, Stefan Wagner, Dietmar Harhoff (2013)
Abstract:
Subject(s): Technology, R&D management
Keyword(s): patenting, patent thickets, patent portfolio races, complexity, technological opportunities
JEL Code(s): L13, L20, O34

We analyze incidence and evolution of patent thickets. The paper provides a modeling framework showing how competition for patent portfolios, complementarity of patented technologies and hold-up affect patenting. Predictions are that technological opportunity reduces patenting in complex technologies, while increasing patenting in discrete technologies. Competition has the opposite effects. The predictions are tested using European patent data in a panel with 2,074 patenting firms in thirty technology areas over fifteen years. A new measure of technological complexity is applied. GMM estimation results confirm the predictions of our preferred model. Patent thickets are found in nine out of thirty technology areas.

© 2013 The Editorial Board of The Journal of Industrial Economics and John Wiley & Sons Ltd

Volume 61
Issue 3
Pages 521–563

Journal Article

Correcting for unconscious experiential processing

Advances in Consumer Research 40: 403–407
Abstract:
Subject(s): Marketing
Keyword(s): consumption, emotional conditioning
Volume 40
Pages 403–407

Journal Article

Expanding the theoretical boundaries of consumer acculturation: Investigating the role of institutional forces and nostalgia

Advances in Consumer Research 41: 94–99
Katja H. Brunk, Luca M. Visconti, Ela Veresiu (2013)
Abstract:
Subject(s): Marketing
Keyword(s): Acculturation, nostalgia, consumer culture
Volume 41
Pages 94–99

Journal Article

Information exposure, opportunity evaluation and entrepreneurial action: An investigation of an online user community

Academy of Management Journal 56 (5): 1348–1371
Erkko Autio, Linus Dahlander, Lars Frederiksen (2013)
Abstract:
Subject(s): Entrepreneurship, Technology, R&D management
Keyword(s): entrepreneurial action, information exposure, opportunity recognition, opportunity evaluation, user entrepreneurship

We study how an individual's exposure to external information regulates the evaluation of entrepreneurial opportunities and entrepreneurial action. Combining data from interviews, a survey, and a comprehensive web log of an online user community spanning eight years, we find that technical information shaped opportunity evaluation and that social information about user needs drove individuals to entrepreneurial action. Our empirical findings suggest that reducing demand uncertainty is a central factor regulating entrepreneurial action, an insight that received theories of entrepreneurial action have so far overlooked.

With permission of the Academy of Management

Volume 56
Issue 5
Pages 1348–1371

Journal Article

Geben und nehmen [Give and take]

Harvard Business Manager 10: 12–13
Linus Dahlander, Henning Piezunka (2013)
Abstract:
Subject(s): Entrepreneurship
Issue 10
Pages 12–13

Journal Article

Migration, sustainable development and the role of business

UN Chronicle L (3): 22–25
CB Bhattacharya, Ursula Moffitt (2013)
Abstract:
Subject(s): Economics, politics and business environment, Entrepreneurship, Ethics and social responsibility
Keyword(s): migration, sustainable development, business, corporate responsibility, remittances
Volume L
Issue 3
Pages 22–25

Journal Article

Politically connected boards of directors and the allocation of procurement contracts

Review of Finance 17 (5): 1617–1648
Eitan Goldman, Jörg Rocholl, Jongil So (2013)
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): politics, corporate governance, boards, procurement contracts
JEL Code(s): G32, G34, G38
Volume 17
Issue 5
Pages 1617–1648

Journal Article

Product development capability and marketing strategy for new durable products

International Journal of Research in Marketing 30 (3): 276–291
Sumitro Banerjee, David A. Soberman (2013)
Abstract:
Subject(s): Marketing
Keyword(s): product development, marketing strategy, durable goods, quality, signaling game

Our objective is to understand how a firm’s product development capability (PDC) affects the launch strategy for a durable product that is sequentially improved over time in a market where consumers have heterogeneous valuations for quality. We show that the launch strategy of firms is affected by the degree to which consumers think ahead. However, only the strategy of firms with high PDC is affected by the observability of quality. When consumers are myopic and quality is observable, both high and low PDC firms use price skimming and restrict sales of the first generation to consumers with high willingness to pay (WTP). A high PDC firm, however, sells the second generation broadly while a low PDC firm only sells the second generation to consumers with low WTP. When consumers are myopic and quality is unobservable, a firm with high PDC signals its quality by offering a low price for the first generation, which results in broad selling. The price of the second generation is set such that only high WTP consumers buy. A firm with low PDC will not mimic this strategy. If a low PDC firm sells the first generation broadly, it cannot discriminate between the high and low WTP consumers. When consumers are forward looking, a firm with high PDC sells the first generation broadly. This mitigates the “Coase problem” created by consumers thinking ahead. It then sells the second generation product only to the high WTP consumers. In contrast, a firm with low PDC does the opposite. It only sells the first generation to high WTP consumers and the second generation broadly.

With permission of Elsevier

Volume 30
Issue 3
Pages 276–291

Journal Article

Thickening case discussions through enactments

Training and Management Development Methods 27 (1): 3.15–3.26
Nora Grasselli, Thomas North Gilmore (2013)
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): executive development, case studies, leadership styles, learning methods
JEL Code(s): M00

Argues that the developmental edge in leadership development is working towards bridging the “knowing-doing” gap through the use of enactments to thicken the learning from existing cases to surface differences between espoused theories and actual behaviors in order to get feedback from fellow learners and faculty.
Multiple enactments of difficult encounters in a case, like sports drills, build resilience, skills and repertoires for engaging with the increased levels of ambiguity and uncertainty in current business contexts. This practical method builds on an existing vast resource of cases to visceralize learning via enactments of tactics of effective and ineffective influence—in essence addressing the “knowing-doing gap.”

With permission of Emerald

Volume 27
Issue 1
Pages 3.15–3.26

Journal Article

Do higher costs spur process innovations and managerial incentives? Evidence from a natural experiment

Journal of Economics and Management Strategy 22 (3): 529–550
Benoit Dostie, Rajshri Jayaraman (2013)
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): Process innovation, managerial incentives, x-efficiency
JEL Code(s): D22, O31, J33

This paper asks whether firms respond to cost shocks by introducing process innovations and increasing the use of managerial incentives. Using a large panel data set of workplaces in Canada, our identification strategy relies on exogenous variation in costs arising from increased border security along the 49th parallel fol- lowing 9/11. Our longitudinal difference-in-differences estimates indicate that firms responded to the cost shock by introducing new or improved processes, but did not change their use of managerial incentives. These results suggest that the threat of bankruptcy may provide impetus for improving efficiency.

© 2013 Wiley Periodicals, Inc.

Volume 22
Issue 3
Pages 529–550

Journal Article

Pricing payment cards

American Economic Journal: Microeconomics 5 (3): 206–231
Özlem Bedre-Defolie, Emilio Calvano (2013)
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): payment card networks, interchange fees, merchant fees
JEL Code(s): G21, L11, L42, L31, L51, K21

Payment card networks, such as Visa, require merchants' banks to pay substantial "interchange" fees to cardholders' banks, on a per transaction basis. This paper shows that a network's profit-maximizing fee induces an inefficient price structure, over-subsidizing card usage and over-taxing merchants. In contrast to the literature we show that this distortion is systematic and arises from the fact that consumers make two distinct decisions (membership and usage) whereas merchants make only one (membership). These findings are robust to competition for cardholders and/or for merchants, network competition, and strategic card acceptance to attract consumers.

Copyright © 2013 by the American Economic Association.

Volume 5
Issue 3
Pages 206–231

Journal Article

Collaborative benefits and coordination costs: Learning and capability development in science

Strategic Entrepreneurship Journal 7 (2): 122–137
Onal Vural, Linus Dahlander, Gerard George (2013)
Abstract:
Subject(s): Entrepreneurship
Keyword(s): scientific teams, collaboration, university, invention, knowledge

We examine the effects of team structure and experience on the impact of inventions produced by scientific teams. Whereas multidisciplinary, collaborative teams have become the norm in scientific production, there are coordination costs commensurate with managing such teams. We use patent citation analysis to examine the effect of prior collaboration and patenting experience on invention impact of 282 patents granted in Human Embryonic Stem Cell (hESC) research between 1998 and 2010. Our results reveal that team experience outside the domain may be detrimental to project performance in a setting where the underlying knowledge changes. In stem cell science, we show that interdepartmental collaboration has a negative effect on invention impact. Scientific proximity between members of the team has a curvilinear relationship, suggesting that teams consisting of members with moderate proximity get the highest impact. We elaborate on these findings for theories of collaboration and coordination, and its implications for radical scientific discoveries.

© 2013 Strategic Management Society

Volume 7
Issue 2
Pages 122–137

Journal Article

Behind the closed doors of a coaching session: The issues that keep an executive coach up at night

Training and Management Development Methods 27: 2.13–2.17
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): executive coaching

With permission of Emerald

Volume 27
Pages 2.13–2.17

Journal Article

Do information rents in loan spreads persist over the business cycles?

Journal of Financial Services Research 43 (2): 175–195
Julian Mattes, Sascha Steffen, Mark Wahrenburg (2013)
Abstract:
Subject(s): Finance, accounting and corporate governance
Keyword(s): syndicated loans, hold-up, lending relationships, business cycle
JEL Code(s): G14, G21, G22, G23, G24
Volume 43
Issue 2
Pages 175–195

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