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

Don't try harder: Using customer inoculation to build resistance against service failures

Journal of the Academy of Marketing Science 43 (4): 512–527
Sven Mikolon, Benjamin Quaiser, Jan Wieseke (2015)
Abstract:
Subject(s): Marketing
Keyword(s): Customer inoculation, customer satisfaction, services marketing, service failure

Capitalizing on a large-scale field experimental dataset involving 1,254 airline customers, this study introduces customer inoculation as a new, proactive strategy for mitigating the negative consequences that service failures have on customer satisfaction. Results confirm that customer inoculation eases the decrease in satisfaction when customers experience a service failure. Additional analyses indicate that customer inoculation does not harm customer satisfaction if no service failure occurs. This finding sets inoculation apart from expectation management and underscores the potential inoculation has for marketing practice. Furthermore, contrary to traditional recovery strategies for addressing service failures, customer inoculation operates in advance of a service failure and thereby circumvents potential drawbacks of traditional strategies. In sum, customer inoculation represents a novel strategy for addressing service failures with respect to existing marketing literature and expands the scope of action for companies when they cannot avoid offering occasionally flawed services.

© Academy of Marketing Science 2014 With permission of Springer

Volume 43
Issue 4
Pages 512–527

Journal Article

Distant search, narrow attention: How crowding alters organizations' filtering of suggestions in crowdsourcing

Academy of Management Journal 58 (3): 856–880
2016 Highly cited paper (Web of Knowledge) , 2015 Darmstadt Innovation Research Best Paper Award
Henning Piezunka, Linus Dahlander (2015)
Abstract:
Subject(s): Technology, R&D management
Keyword(s): Selection, evaluation, user-based innovation, crowd sourcing

When organizations reach out to their users for ideas, users take on a considerable role in the innovation process. Including users expands the number of participants and potential ideas from which an organization can select. But how do organizations select some user suggestions while rejecting or ignoring others? We analyze the selection processes at 24,067 organizations that collectively received 702,729 suggestions. Our findings suggest that organizations filter the suggestions they receive by focusing on suggestions that inspire feedback from the user community.
Despite receiving contributions from a diverse pool of users, organizations quickly settle into a pattern of attending to only a few. To our surprise, collective user preferences only matter as a filter mechanism when crowding is high. In contrast, the debate among users about a suggestion strongly increases the likelihood of it being selected by the organization. Our illustration of the screening criteria organizations use to winnow suggestions has broad implications for the selection literature. We also bring insight to the literature on user-driven innovation processes by studying all suggestions that were considered, rather than only those organizations select and implement.

With permission of the Academy of Management


As of May/June 2016, this highly cited paper received enough citations to place it in the top 1% of the academic field of Economics & Business based on a highly cited threshold for the field and publication year. – Data from Essential Science Indicators℠

Volume 58
Issue 3
Pages 856–880

Journal Article

Primary status, complementary status, and organizational survival in the U.S. venture capital industry

Social Science Research 52 (4): 588–601
Matthew S. Bothner, Young-Kyu Kim, Wonjae Lee (2015)
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): Status, US venture capital industry

This article introduces a distinction between two kinds of status and investigates their effects empirically on the life chances of U.S. venture capital organizations. Using recent research on status-based competition as our starting point, we first describe primary status as a network-related signal of an organization’s quality in a leadership role, and measure primary status as the degree to which a focal organization leads others that are themselves well regarded as lead-organizations in the context of investment syndicates. We then introduce complementary status as an affiliation-based indicator of an organization’s quality in a supporting role, measuring complementary status as the extent to which a focal organization is invited into syndicates by well-regarded lead-organizations—that is, by organizations possessing high levels of primary status. Findings show that both kinds of status negatively affect the rate at which venture capital organizations exit the industry. In addition, consistent with the proposition that primary status and complementary status correspond to distinct market roles and different market identities, primary status and complementary status attenuate each other’s favorable main effects on survival for dedicated venture capital organizations. Theoretically and methodologically oriented scope conditions as well as implications for future research are discussed.

With permission of Elsevier

Volume 52
Issue 4
Pages 588–601

Journal Article

Identification and attachment in consumer-brand relationships

Review of Marketing Research 12: 151–174
Sankar Sen, Allison R. Johnson, CB Bhattacharya, Juan Wang (2015)
Abstract:
Subject(s): Ethics and social responsibility, Marketing
Keyword(s): Attachment, identification, social identity, consumer-brand relationships, brand loyalty

We examine two conceptualizations of consumer-brand relationships: identification, as identity-based relationships between a consumer and a brand, and the related construct of attachment as a bond based on security and personal history with the brand.Predictions emanating from the two constructs’ disparate theoretical traditions regarding the relative antecedents and outcomes of these brand relationship constructs are tested in a survey of real consumer-brand relationships, where the two are likely to co-occur. Identification is more socially motivated, wherein the brand is used for “identity building” and impression management, such as through public endorsement. In contrast, attachment is more personally motivated; it is more likely to be founded on an intimate history with the brand and feelings of security inspired by the brand. This is the first work in marketing to explicitly compare identification with attachment in contexts where they co-occur. In doing so, it underscores the validity and usefulness of these two related but distinct relationship constructs.

With permission of Emerald

Volume 12
Pages 151–174

Journal Article

Streams of thought: Knowledge flows and intellectual cohesion in a multidisciplinary era

Social Forces 93 (4): 1687–1722
Craig Rawlings, Daniel A. McFarland, Linus Dahlander, Dan Wang (2015)
Abstract:
Subject(s): Technology, R&D management
Keyword(s): social networks
Volume 93
Issue 4
Pages 1687–1722

Journal Article

Show me the money: Improving our understanding of how organizations generate return from technology-led marketing change

European Journal of Marketing 49 (3–4): 561–595
Stan Maklan, Joe Peppard, Philipp Klaus (2015)
Abstract:
Subject(s): Information technology and systems, Marketing
Keyword(s): ROI, CRM, benefits realization, performance improvement, social media, big data

Marketing practice is increasingly shaped through the application of new technology, including customer relationship marketing (CRM) software, social media, analytics and search, with organisations investing heavily in these technologies. Yet, surprisingly, research by marketing scholars continues to question the profitability of IT-led marketing initiatives. If this is true, why do companies continue to make such investments? To explore this question, we examined research that has looked at the return on investments in IT-led marketing change. Analysing the findings of leading studies of the impact of CRM spend on financial and market performance, we suggest that marketing scholars make untested assumptions as to how expected payoffs are realized and thus generate incommensurate conclusions. Moreover, we found that marketing scholars adopt a very limited epistemology that is unsuited to the nature of the phenomenon being studied. For comparison, we explore how similar phenomena are studied by the information systems discipline. We conclude with implications for both marketing practice and research.

With permission of Emerald

Volume 49
Issue 3–4
Pages 561–595

Journal Article

Joining forces or going it alone? On the interplay between external collaboration partner types, inter-firm governance modes and internal R&D

Journal of Product Innovation Management 32 (3): 424–440
Judith Gesing, David Antons, Erk P. Piening, Mario Rese, Torsten Oliver Salge (2015)
Abstract:
Subject(s): Marketing

© 2014 Product Development & Management Association

Volume 32
Issue 3
Pages 424–440

Journal Article

Linear social interactions models

Journal of Political Economy 123 (2): 444–496
Lawrence E. Blume, William A. Brock, Steven N. Durlauf, Rajshri Jayaraman (2015)
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): Social interactions, identification, incomplete information games
JEL Code(s): C21, C23, C31, C35, C72, Z13

This paper provides a systematic analysis of identification in linear social interactions models. This is both a theoretical and an econometric exercise as the analysis is linked to a rigorously delineated model of interdependent decisions. We develop an incomplete information game that describes individual choices in the presence of social interactions. The equilibrium strategy profiles are linear. Standard models in the empirical social interactions literature are shown to be exact or approximate special cases of our general framework, which in turn provides a basis for understanding the microeconomic foundations of those models. We consider identification of both endogenous (peer) and contextual social effects under alternative assumptions on a priori information about network structure available to an analyst, and contrast the informational content of individual-level and aggregated data. Finally, we discuss potential ramifications for identification of endogenous group selection and differences between the information sets of analysts and agents.

With permission of the University of Chicago Press

Volume 123
Issue 2
Pages 444–496

Journal Article

Two birds, one stone? Positive mood makes products seem less useful for multiple-goal pursuit

Journal of Consumer Psychology 25 (2): 296–303
Anastasiya Pocheptsova, Francine Espinoza Petersen, Jordan Etkin (2015)
Abstract:
Subject(s): Marketing
Keyword(s): Goals, product evaluation, positive mood

Negotiating the pursuit of multiple goals often requires making difficult trade-offs between goals. In these situations, consumers can benefit from using products that help them pursue several goals at the same time. But do consumers always prefer these multipurpose products? We propose that consumers’ incidental mood state alters perceptions of products in a multiple-goals context. Four studies demonstrate that being in a positive mood amplifies perceptions of differences between multiple conflicting goals. As a consequence, consumers are less likely to evaluate multipurpose products as being able to serve multiple distinct goals simultaneously. We conclude by discussing implications of these findings for marketers of multipurpose products.

With permission of Elsevier

Volume 25
Issue 2
Pages 296–303

Journal Article

Consumer reactions to business-nonprofit alliances: Who benefits and when?

Marketing Letters 26 (1): 29–42
Caglar Irmak, Sankar Sen, CB Bhattacharya (2015)
Abstract:
Subject(s): Ethics and social responsibility, Marketing
Keyword(s): Corporate social responsibility, business–nonprofit alliance, nonprofit, Company involvement, company reputation, alliance fit

We investigate the effect of increased company involvement on consumer reactions to companies and nonprofits in business–nonprofit alliances to show that consumer reactions to the two parties in such alliances can, under certain conditions, diverge from each other. Specifically, we show that increased company involvement results in more positive consumer attitudes toward companies with low (but not high) reputation, while it leads to more positive consumer attitude toward nonprofits that partner with companies with high (but not low) reputation. Furthermore, we demonstrate that these effects are independent of the perceived fit between the company and nonprofit forming the alliance. Finally, we show that when consumers elaborate on company motives, the observed effects of increased company involvement are mitigated.

© Springer Science+Business Media New York 2013. With permission of Springer

Volume 26
Issue 1
Pages 29–42

Journal Article

Corporate crises in the age of corporate social responsibility

Business Horizons 58 (2): 183–192
Catherine Janssen, Sankar Sen, CB Bhattacharya (2015)
Abstract:
Subject(s): Ethics and social responsibility
Keyword(s): Corporate social responsibility, corporate crisis, insulation, crisis management

Many companies today believe that corporate social responsibility (CSR) acts as a reservoir of goodwill, insulating the firm from the negative impacts of a crisis. Yet, the impact of CSR on public reaction to corporate crises is more complex. Drawing on research on stakeholder reactions to CSR and—more specifically—corporate crises, we present a contingent framework for understanding the roles of CSR in corporate crises and how to manage it. This framework posits that CSR plays four important roles: it (1) increases stakeholders’ attention to crises, (2) affects blame attributions, (3) raises expectations, and (4) changes stakeholders’ evaluations of crisis situations. Several factors underlying these roles are also discussed. Overall, this article underscores that while CSR may insulate companies and mitigate stakeholders’ negative responses in some cases, in others it may actually lead to the opposite effect, amplifying the negative impact of a crisis. The article ends with a brief discussion of the implications of our framework for effective crisis management strategies in the age of CSR.

With permission of Elsevier

Volume 58
Issue 2
Pages 183–192

Journal Article

The Markov-switching jump diffusion LIBOR market model

Quantitative Finance 15 (3): 455–476
Lea Steinruecke, Rudi Zagst, Anatoliy V. Swishchuk (2015)
Abstract:
Subject(s): Finance, accounting and corporate governance
Keyword(s): LIBOR market model, jump diffusion,Markov switching, Heath-Jarrow-Morton model, pricing, parameter estimation
JEL Code(s): C02, C60, G12, G13
Volume 15
Issue 3
Pages 455–476

Journal Article

A proportional value for cooperative games with a coalition structure

Theory and Decision 78 (2): 273–287
Abstract:
Subject(s): Management sciences, decision sciences and quantitative methods
Keyword(s): Shapley value, Owen value, proportional value, consistency
Volume 78
Issue 2
Pages 273–287

Journal Article

The “greatest” carry trade ever? Understanding Eurozone bank risks

Journal of Financial Economics 115 (2): 215–236
Lead Article
2014 TCFA Best Paper Award
Viral V. Acharya, Sascha Steffen (2015)
Abstract:
Subject(s): Finance, accounting and corporate governance
Keyword(s): Sovereign debt crisis, banking crisis, risk-shifting, regulatory arbitrage, home bias, moral suasion
JEL Code(s): G01, G21, G28, G14, G15, F3

We show that eurozone bank risks during 2007-2013 can be understood as “carry trade” behavior. Bank equity returns load positively on peripheral (Greece, Italy, Ireland, Portugal, Spain, or GIIPS) bond returns and negatively on German government bond returns, which generated “carry” until the deteriorating GIIPS bond returns adversely affected bank balance sheets. We find support for risk-shifting and regulatory arbitrage motives at banks in that carry trade behavior is stronger for large banks and banks with low capital ratios and high risk-weighted assets. We also find evidence for home bias and moral suasion in the subsample of GIIPS banks.

With permission of Elsevier

Volume 115
Issue 2
Pages 215–236

Journal Article

Lessons luxury wine brands teach us about authenticity and prestige

The European Business Review January/February: 38–43
Klaus Heine, Francine Espinoza Petersen (2015)
Abstract:
Subject(s): Marketing
Keyword(s): Wine, prestige, authenticity, brand, luxury
Volume January/February
Pages 38–43

Pages