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

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

Journal Article

The impact of school lunches on primary school enrollment: Evidence from India's midday meal scheme

Scandinavian Journal of Economics 117 (4): 1176–1203
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): Primary school enrollment, school lunches, natural experiment, ITT

At the end of 2001, the Indian Supreme Court issued a directive ordering states to institute school lunches – known locally as "midday meals" – in government primary schools. This paper provides a large-scale assessment of the enrollment effects of India's midday meal scheme, which offers warm lunches, free of cost, to 120 million primary school children across India and is the largest school feeding program in the world. To isolate the causal effect of the policy, we make use of staggered implementation across Indian states in government but not private schools. Using a panel data set of almost 500,000 schools observed annually from 2002 to 2004, we find that midday meals result in substantial increases in primary school enrollment, driven by early primary school responses to the program. Our results are robust to a wide range of specification tests.

© The editors of The Scandinavian Journal of Economics 2015

Volume 117
Issue 4
Pages 1176–1203

Journal Article

Darf's etwas mehr sein? [Anything else?]

Acquisa 9: 62–65
Jan Wieseke, Johannes Habel, Sascha Alavi, Christopher Kock, Melanie Leitloff (2015)
Abstract:
Subject(s): Marketing
Keyword(s): Cross-selling, personal selling
JEL Code(s): M310
Issue 9
Pages 62–65

Journal Article

The decentralized energy revolution in Germany

Power & Energy Solutions 27 (September): 85–88
Abstract:
Subject(s): Economics, politics and business environment, Health and environment, Strategy and general management, Technology, R&D management
Keyword(s): Decentralized, energy, Germany, Energiewende
JEL Code(s): O31, Q420, Q480

Germany has embarked on a journey to fundamentally transform its energy supply system: the energy turnaround, or “Energiewende” as it is known. But the country that kick-started the PV movement around a decade ago has since been superseded by even more ambitious nations. So can Germany become a game-changer once more?

http://www.pes.eu.com/assets/misc_dec/country-focus-germanypdf-006316769851.pdf

Volume 27
Issue September
Pages 85–88

Journal Article

The role of the spouse in managers' family-related career sensemaking

Career Development International 20 (5): 503–524
2016 Emerald Literati Best Paper Award
Evgenia Lysova, Konstantin Korotov, Svetlana N. Khapova, Paul Jansen (2015)
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): Sensemaking, spousal support, career decision making, family identity

This paper contributes to a growing body of literature on the role of family in managers’ career decision making. Specifically, we offer an empirical elaboration on a recently proposed concept of the “family-relatedness of work decisions” (FRWD) by illuminating the role of the spouse in managers’ career sensemaking. Eighty-eight managers who were in the final stage of their EMBA program took part in the study. The data were gathered through a personal career inventory. The findings revealed that next to family-career salience and parent role identification, spouses also play an important role in shaping managers’ family-related career sensemaking. Future research should examine the supportive role of spouses in contexts other than that of an international EMBA. Moreover, researchers should examine the role of managers’ boundary management styles in shaping the degree of their family-related career sensemaking. Our paper suggests that when designing and implementing developmental initiatives, organizations should consider that managers’ decisions about their next career steps may be guided by family-related concerns, and the spouse may play a specific role. This paper offers the first empirical exploration and a refinement of the nascent theory of the “family-relatedness of work decisions”. It also introduces a new construct into the theory – spousal career support – that opens new avenues for future research.

With permission of Emerald

Volume 20
Issue 5
Pages 503–524

Journal Article

Strategic experimentation with private payoffs

Journal of Economic Theory 159 (5): 531–551
Paul Heidhues, Sven Rady, Philipp Strack (2015)
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): Strategic experimentation, Bayesian learning, cheap talk, two-armed bandit, information externality
JEL Code(s): C73, D83

We consider two players facing identical discrete-time bandit problems with a safe and a risky arm. In any period, the risky arm yields either a success or a failure, and the first success reveals the risky arm to dominate the safe one. When payoffs are public information, the ensuing free-rider problem is so severe that the equilibrium number of experiments is at most one plus the number of experiments that a single agent would perform. When payoffs are private information and players can communicate via cheap talk, the socially optimal symmetric experimentation profile can be supported as a perfect Bayesian equilibrium for sufficiently optimistic prior beliefs. These results generalize to more than two players whenever the success probability per period is not too high. In particular, this is the case when successes occur at the jump times of a Poisson process and the period length is sufficiently small.

With permission of Elsevier

Volume 159
Issue 5
Pages 531–551

Journal Article

Potential, value, and the multilinear extension

Economics Letters 135: 28–30
André Casajus, Frank Huettner (2015)
Abstract:
Subject(s): Management sciences, decision sciences and quantitative methods
Keyword(s): Shapley value, potential, random partition, concentration of power
JEL Code(s): C71

We provide new formulae for the potential of the Shapley value that use the multilinear extension of coalitional games with transferable utility.

With permission of Elsevier

Volume 135
Pages 28–30

Journal Article

Firms need a blueprint for building their IT systems

Harvard Business Review
Donald A. Marchand, Joe Peppard (2015)
Abstract:
Subject(s): Information technology and systems, Technology, R&D management

Winchester House in San Jose, California, was once the residence of Sarah Winchester, the widow of gun magnate William Winchester. This mansion is renowned for its size, its architectural curiosities, and its lack of any master building plan. It is, unfortunately, also a great analogy for how many organizations have constructed their IT systems.

ISSN 0017-8012 (Print)

Pages