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

Efficient feed-in-tariff policies for renewable energy technologies

Operations Research 64 (1): 52–66
Saed Alizamir, Francis de Véricourt, Peng Sun (2016)
Abstract:
Subject(s): Management sciences, decision sciences and quantitative methods, Product and operations management
Keyword(s): Technology diffusion, government incentive policies, renewable energy technology, feed-in tariff, learning-by-doing, dynamic programming

Feed-in-tariff (FIT) policies aim at driving down the cost of renewable energies by fostering learning and accelerating the diffusion of green technologies. Under FIT mechanisms, governments purchase green energy at tariffs that are set above market price. The success or failure of FIT policies, in turn, critically depend on how these tariffs are determined and adjusted over time. This paper provides insights into designing cost-efficient and socially-optimal FIT programs. Our modeling framework captures key market dynamics as well as investors' strategic behavior. In this framework, we establish that the current practice of maintaining constant profitability is theoretically rarely optimal. By contrast, we characterize a no-delay region in the problem's parameters, such that profitability should strictly decrease over time if the diffusion and learning rates belong to this region. In this case, investors never strategically postpone their investment to a later period. When the diffusion and learning rates fall outside the region, profitability should increase at least temporarily over some time periods and strategic delays occur. The presence of strategic delays, however, makes the practical problem of computing optimal FIT schedules very difficult. To address this issue, the regulator may focus on policies that disincentivize investors to postpone their investment. With this additional constraint, a constant profitability policy is optimal if and only if the diffusion and learning rates fall outside the no-delay region. This provides partial justifications for current FIT implementations.

© 2015 INFORMS

Volume 64
Issue 1
Pages 52–66

Journal Article

How the ‘Big Beyond' will change business models of utilities

Oxford Energy Forum 26 (104): 8–11
Abstract:
Subject(s): Technology, R&D management
Volume 26
Issue 104
Pages 8–11

Journal Article

Effects of upstream and downstream mergers on supply chain profitability

European Journal of Operational Research 249 (1): 131–143
Jing Zhu, Tamer Boyaci, Saibal Ray (2016)
Abstract:
Subject(s): Product and operations management
Keyword(s): Mergers, supply chain, differentiated products, market power, operational synergy

This paper studies the implications of upstream and/or downstream horizontal mergers on suppliers, retailers and consumers, in a bilateral oligopolistic system. We especially focus on market power and operational synergy benefits that such mergers engender. Starting with a benchmark pre-merger scenario in which firms compete on prices at each level, we find that the above two consequences individually almost have opposite effects on the merging and non-merging firms’ optimal decisions/profits after a merger. Furthermore, even though the effects of upstream and downstream mergers are different, the vertical supply chain partners will always try to reduce their losses if the market power effect dominates, but will take actions that improve their profits if the synergy effect is stronger. The above results are robust enough to hold even when taking into account intra-brand competition among retailers.

With permission of Elsevier

Volume 249
Issue 1
Pages 131–143

Journal Article

Corporate social responsibility: A consumer psychology perspective

Current Opinion in Psychology 10: 70–75
Sankar Sen, Shuili Du, CB Bhattacharya (2016)
Abstract:
Subject(s): Ethics and social responsibility, Marketing

This paper reviews the substantial body of work on corporate social responsibility (CSR), including the synonymous domains of cause-related marketing and ethical consumption, to synthesizes the diverse findings on consumer responses to CSR. CSR is capable of engendering a range of company-favoring perceptions and behaviors, driven by both consumers’ CSR-related motivations (e.g., consumer-company identification, affective motives) and their CSR-guided product perceptions. As well, the paper documents the plethora of CSR initiative-, company-, and consumer-specific factors that modulate consumers’ reactions to CSR initiatives, and ends with a discussion of some key future research directions.

With permission of Elsevier

Volume 10
Pages 70–75

Journal Article

Exploitative innovation

American Economic Journal: Microeconomics 8 (1): 1–23
Paul Heidhues, Botond Köszegi, Takeshi Murooka (2016)
Abstract:
Subject(s): Economics, politics and business environment
Keyword(s): Consumer naivete, innovation, exploitative contracting, consumer protection, retail finance
JEL Code(s): D21, G21, L11, L25, O31

We analyze innovation incentives when firms can invest either in increasing the product's value (value-increasing innovation) or in increasing the hidden prices they collect from naive consumers (exploitative innovation). We show that if firms cannot return all profits from hidden prices by lowering transparent prices, innovation incentives are often stronger for exploitative than for value-increasing innovations, and are strong even for non-appropriable innovations. These results help explain why firms in the financial industry (e.g. credit-card issuers) have been willing to make innovations others could easily copy, and why these innovations often seem to have included exploitative features.

Copyright © 2015 by the American Economic Association.

Volume 8
Issue 1
Pages 1–23

Journal Article

Servitized manufacturing firms competing through remote monitoring technology: An exploratory research

Journal of Manufacturing Technology Management 27 (2): 154–184
Tonci Grubic, Joe Peppard (2016)
Abstract:
Subject(s): Technology, R&D management
Keyword(s): Servitization, smart technology, manufacturing, services, service operations

Remote monitoring technology (RMT) is widely acknowledged as an important enabler of servitization however, there is a dearth of understanding about how RMT is used by manufacturing firms to support servitized strategies. This paper aims to contribute to this important yet somewhat ignored topic in servitization research. It attempts to address the following questions: What has constrained, and what has enabled the exploitation of RMT in the context of servitized strategies?
The research adopts an exploratory multiple-case study design. Four in-depth descriptive case studies of companies operating in aerospace, industrial equipment, marine, and transport sectors were conducted. The collected data was analysed and synthesised, drawing out conclusions.

With permission of Emerald

Volume 27
Issue 2
Pages 154–184

Journal Article

One foot in, one foot out: How does individuals' external search breadth affect innovation outcomes?

Strategic Management Journal 37 (2): 280–302
An abridged version of this article was earlier published in the AOM Best Paper Proceedings
Linus Dahlander, Siobhan O'Mahony, David Gann (2016)
Abstract:
Subject(s): Entrepreneurship, Technology, R&D management
Keyword(s): Search, innovation, individuals, attention, scientists, boundary-spanning

The “variance hypothesis” predicts that external search breadth leads to innovation outcomes, but people have limited attention for search and cultivating breadth consumes attention. How does individuals' search breadth affect innovation outcomes? How does individuals' allocation of attention affect the efficacy of search breadth? We matched survey data with complete patent records, to examine the search behaviors of elite boundary spanners at IBM. Surprisingly, individuals who allocated attention to people inside the firm were more innovative. Individuals with high external search breadth were more innovative only when they allocated more attention to those sources. Our research identifies limits to the “variance hypothesis” and reveals two successful approaches to innovation search: “cosmopolitans” who cultivate and attend to external people and “locals” who draw upon internal people.

© 2014 The Authors. Strategic Management Journal published by John Wiley & Sons Ltd.

Volume 37
Issue 2
Pages 280–302

Journal Article

The dynamics of CIO derailment: How CIOs come undone and how to avoid it

Business Horizons 59 (1): 61–70
Anthony B. Gerth, Joe Peppard (2016)
Abstract:
Subject(s): Human resources management/organizational behavior, Information technology and systems, Technology, R&D management
Keyword(s): Chief information officer, chief digital officer, digitization, executive derailment, CIO turnover, CIO success, digital leadership, digital transformation

With information technology (IT) becoming ever more ubiquitous and pervasive, the resulting deluge of data is driving a wave of digital disruption. No industry, it seems, is immune, and business performance is increasingly dependent on the effective use of IT and investments in technology that generate real business benefits. Yet research continues to report that most of these investments don’t pay off as expected. Blame for such scenarios is normally placed at the feet of the Chief Information Officer (CIO). Some commentators have even suggested that it is now time to replace the CIO role with that of CDO (Chief Digital Officer). This line of thinking ignores the inherent organizational dynamics that lead to the derailment of the executive in charge of IT; merely changing the job title won’t fix the problem. This article uses research conducted over the course of 8 years to illuminate reasons why CIO leaders are derailed, and what they and the CEO can do to avoid this outcome. Causes of derailment are presented in detail, and prescriptive advice is given for CIOs and CEOs alike regarding how to address causes of executive failure in leading the digital transformation of organizations.

With permission of Elsevier

Volume 59
Issue 1
Pages 61–70

Journal Article

Efficiencies defence in telecom mergers and other investment intensive industries

European Competition Law Review 37 (1): 7–13
Rainer Nitsche, Lars Wiethaus (2016)
Abstract:
Subject(s): Economics, politics and business environment
Volume 37
Issue 1
Pages 7–13

Journal Article

Statistik: Einfluss auf das Ergebnis [Statistics: Influence on results]

Harvard Business Manager January
Abstract:
Subject(s): Marketing
Keyword(s): Market research, customer satisfaction, statistics
JEL Code(s): M310

Journal Article

Warm glow or extra charge? The ambivalent effect of corporate social responsibility activities on customers' perceived price fairness

Journal of Marketing 80 (1): 84–105
Johannes Habel, Laura Marie Schons, Sascha Alavi, Jan Wieseke (2016)
Abstract:
Subject(s): Marketing
Keyword(s): Corporate social responsibility, price fairness, cost perceptions, behavioral pricing
JEL Code(s): M310

Prior research has firmly established that consumers draw benefits from a firm’s engagement in corporate social responsibility (CSR), especially the feeling of a “warm glow.” These benefits positively affect several desirable outcomes, such as willingness to pay and customer loyalty. The authors propose that consumers do not blindly perceive benefits from a firm’s CSR engagement but tend to suspect that a firm’s prices include a markup to finance the CSR engagement. Taking customers’ benefit perceptions and price markup inferences into account, the authors suggest that CSR engagement has mixed effects on consumers’ evaluation of price fairness and, thus, on subsequent outcomes such as customer loyalty. The authors conduct one qualitative study and four quantitative studies leveraging longitudinal field and experimental data from more than 4,000 customers and show that customers indeed infer CSR price markups, entailing mixed effects of firms’ CSR engagement on price fairness. The authors find that perception critically depends on customers’ CSR attributions, and they explore the underlying psychological mechanisms. They propose communication strategies to optimize the effect of CSR engagement on perceived price fairness.

With the permission of the American Marketing Association

Volume 80
Issue 1
Pages 84–105

Journal Article

Fatale Fehlerkultur – warum Skandale viel mit Führung zu tun haben

Wirtschaftspsychologie aktuell 4
Jan U. Hagen (2015)
Abstract:
Subject(s): Human resources management/organizational behavior, Strategy and general management

Journal Article

Efficient extensions of the Myerson value

Social Choice and Welfare 45 (5): 819–827
Sylvain Béal, André Casajus, Frank Huettner (2015)
Abstract:
Subject(s): Management sciences, decision sciences and quantitative methods
JEL Code(s): C71, D60
Volume 45
Issue 5
Pages 819–827

Journal Article

Funktionsweise und Einschätzung des Comprehensive Assessment [Operation and assessment of comprehensive assessment]

Zeitschrift für betriebswirtschaftliche Forschung (ZfbF) 12: 418–443
Sascha Steffen, Lea Steinruecke (2015)
Abstract:
Subject(s): Finance, accounting and corporate governance
Issue 12
Pages 418–443

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

Pages