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

Crowdfunding scientific research: Descriptive insights and correlates of funding success

PLoS ONE 14 (1)
Henry Sauermann, Chiara Franzoni, Kourosh Shafi (2019)
Abstract:
Subject(s): Entrepreneurship, Finance, accounting and corporate governance, Technology, R&D management
Keyword(s): Crowdfunding, funding of science, organizational theory, citizen science, R&D

Crowdfunding has gained traction as a mechanism to raise resources for entrepreneurial and artistic projects, yet there is little systematic evidence on the potential of crowdfunding for scientific research. We first briefly review prior research on crowdfunding and give an overview of dedicated platforms for crowdfunding research. We then analyze data from over 700 campaigns on the largest dedicated platform, Experiment.com. Our descriptive analysis provides insights regarding the creators seeking funding, the projects they are seeking funding for, and the campaigns themselves. We then examine how these characteristics relate to fundraising success. The findings highlight important differences between crowdfunding and traditional funding mechanisms for research, including high use by students and other junior investigators but also relatively small project size. Students and junior investigators are more likely to succeed than senior scientists, and women have higher success rates than men. Conventional signals of quality–including scientists’ prior publications–have little relationship with funding success, suggesting that the crowd may apply different decision criteria than traditional funding agencies. Our results highlight significant opportunities for crowdfunding in the context of science while also pointing towards unique challenges. We relate our findings to research on the economics of science and on crowdfunding, and we discuss connections with other emerging mechanisms to involve the public in scientific research.

© 2019 Sauermann et al.

Volume 14
Issue 1
ISSN 1932-6203 (Online)

Journal Article
New

Will German banks earn their cost of capital?

Contemporary Economic Policy 37 (1): 156–169
Andreas Dombret, Yalin Gündüz, Jörg Rocholl (2019)
Abstract:
Subject(s): Economics, politics and business environment, Finance, accounting and corporate governance
Keyword(s): German banking sector, low interest period, profitability, hidden and open reserves
JEL Code(s): G21, G28

In recent years, the German banking sector has overcome major challenges such as the global financial crisis and the European debt crisis. This paper analyses a recent development as a particular determinant of the future outlook for the German banking sector. Interest rates are at historically low levels and may remain at these levels for a considerable period of time. Such levels pose a specific challenge to banks which are heavily dependent on interest income, as is the case for most German banks. We consider different interest rate scenarios and analyse the extent to which they cause a further narrowing of the interest rate margin. Our
results indicate that a projected decline in this margin will result in no more than 20% of German banks earning a cost of capital of 8% by the end of this decade. This decline is somewhat alleviated by the fact that German banks can apply a special feature of German accounting standards by using hidden and open reserves.

© 2017 Western Economic Association International

Volume 37
Issue 1
Pages 156–169
ISSN 1465-7287 (Online) 1074-3529 (Print)

Journal Article
New

The risky side of inspirational appeals in personal selling: When do customers infer ulterior salesperson motives?

Journal of Personal Selling & Sales Management (JPSSM) 38 (3): 323–343
Sascha Alavi, Johannes Habel, Christian Schmitz, Bianca Richter, Jan Wieseke (2018)
Abstract:
Subject(s): Marketing
Keyword(s): inspirational appeals, personal selling, customer emotions, influence tactics
JEL Code(s): M310

In personal selling, the inspirational appeal (IA) is a widely promoted tactic that aims at stimulating customers’ values and ideals, thereby evoking emotions and arousing their enthusiasm for a product. However, whether IAs in fact improve or undermine salespeople’s success in sales talks remains controversial. Therefore, the present study examines consequences and key contingencies of IAs in customer–salesperson interactions in a retailing context, using multi-source data from several retailing industries for three quantitative studies, comprising a total sample of 590 customer and 174 salesperson responses. Drawing on the Multiple Inferences Model (MIM), the authors show that an IA is likely to drive the customer’s inference that the salesperson holds ulterior motives. IAs seem to be particularly detrimental for salespeople with a lack of customer orientation. Beyond expanding research on influence tactics and the ambivalent role of IAs in retailing interactions, these findings can guide practitioners about when to refrain from using an IA.

Volume 38
Issue 3
Pages 323–343
ISSN 1557–7813 (Online) 0885–3134 (Print)

Journal Article
New

Fire in the belly? Employee motives and innovative performance in startups versus established firms

Strategic Entrepreneurship Journal 12 (4): 423–454
Abstract:
Subject(s): Entrepreneurship
Keyword(s): Entrepreneurial firms, human capital, innovative performance, motives, start-up joiners

We examine whether start-ups attract employees with different pecuniary and non-pecuniary motives than small or large established firms. We then explore whether such differences in employee motives may lead to differences in innovative performance across firm types. Using data on more than 10,000 U.S. R&D employees, we find that start-up employees (“joiners”) place lower importance on job security and salary but greater importance on independence and responsibility. Start-up employees have higher patent output than employees in small and large established firms, and this difference is partly mediated by employee motives - especially joiners’ greater willingness to bear risk. We discuss implications for research as well as for managers and policy makers concerned with the supply of human capital to entrepreneurship and innovation.

Copyright © 2017 Strategic Management Society

Volume 12
Issue 4
Pages 423–454

Journal Article
New

Knowing me, knowing you: Inventor mobility and the formation of technology-oriented alliances

Academy of Management Journal 61 (6): 2026–2052
2018 VHB Jürgen Hauschildt Award 2018 For the best empirical research publication in Innovation Management
Stefan Wagner, Martin C. Goossen (2018)
Abstract:
Subject(s): Strategy and general management, Technology, R&D management
Keyword(s): Inventor mobility, alliance formation, interfirm collaboration, technological capabilities, pharmaceuticals

We link the hiring of R&D scientists from industry competitors to the subsequent formation of collaborative agreements, namely technology-oriented alliances. By transferring technological knowledge as well as cognitive elements to the hiring firm, mobile inventors foster the alignment of decision frames applied by potential alliance partners in the process of alliance formation thereby making collaboration more likely. Using data on inventor mobility and alliance formation amongst 42 global pharmaceutical firms over 16 years, we show that inventor mobility is positively associated with the likelihood of alliance formation in periods following inventor movements. This relationship becomes more pronounced if these employees bring additional knowledge about their prior firm’s technological capabilities and for alliances aimed at technology development rather than for agreements related to technology transfer. It is weakened, however, if the focal firm is already familiar with the competitor’s technological capabilities. By revealing these relationships, our study contributes to research on alliance formation, employee mobility, and organizational frames.

With permission of the Academy of Management

Volume 61
Issue 6
Pages 2026–2052

Journal Article
New

Speeding up the Internet: Regulation and investment in the European fiber optic infrastructure

International Journal of Industrial Organization 61 (November): 613–652
Wolfgang Briglauer, Carlo Cambini, Michał Grajek (2018)
Abstract:
Subject(s): Economics, politics and business environment, Information technology and systems, Technology, R&D management
Keyword(s): Internet access market, access regulation, investment, infrastructure, Next Generation Networks, broadband, telecom, cable operators and EU regulatory framework
JEL Code(s): L96, L51

In this paper, we study how the coexistence of access regulations for legacy (copper) and fiber networks shapes the incentives to invest in fiber-based network infrastructures. To this end, we first develop a theoretical model that extends the existing literature by, among other things, considering alternative firms with proprietary legacy network (e.g., cable operators) and the presence of asymmetric mandated access to networks. In the empirical part, we test the theoretical predictions using a novel panel data from 27 EU member states pertaining to the last decade. Our main finding is that, in line with the theoretical results, stricter access regulations (i.e., a decrease in access price to legacy network and the adoption of fiber regulation) decrease the incumbent operators’ fiber investments. The estimated magnitude of these effects is economically significant. On the other hand, cable operators, who are responsible for the largest share of investments in fiber, are not affected by access regulation. Our paper thus provides policy insights for the on-going revision of the EU regulation framework for the electronic communications industry.

With permission of Elsevier

Volume 61
Issue November
Pages 613–652

Journal Article
New

Building sustainability into real estate

The European Business Review November/December: 85–88
Joanna Radeke, Alexander Boether, Alexandre Bezzera (2018)
Abstract:
Subject(s): Ethics and social responsibility
Keyword(s): Sustainability, real estate, environment, stakeholder theory
Issue November/December
Pages 85–88

Journal Article
New

Seeing the light

The European Business Review November-December: 81–84
Christoph Burger, Jens Weinmann, Antony Froggatt, Catherine Mitchell (2018)
Abstract:
Subject(s): Ethics and social responsibility
Keyword(s): Energy industry, entrepreneurship, innovation
Issue November-December
Pages 81–84

Journal Article

Do credit shocks affect labor demand? Evidence for employment and wages during the financial crisis

Journal of Financial Intermediation 36 (October 2018): 16–27
Alexander Popov, Jörg Rocholl (2018)
Abstract:
Subject(s): Economics, politics and business environment, Finance, accounting and corporate governance
Keyword(s): Credit shocks, financial crisis, labor demand, employment, wages
JEL Code(s): D92, G01, G21, J23, J31

We study the impact of exogenous funding shocks to German savings banks during the U.S. subprime mortgage crisis on the labor decisions of 30,000+ private and public firms in Germany. We find that firms with credit relationships with affected banks experience a significant decline in labor demand relative to firms with credit relationships with healthy banks, manifested in a simultaneous reduction in firm‐level employment and average wages. The employment effect is more pronounced in larger firms, while the wage effect is stronger in smaller firms. Both employment and wages go back to pre‐shock levels three years after the shock.

With permission of Elsevier

Volume 36
Issue October 2018
Pages 16–27

Journal Article

The Matthew effect as an unjust competitive advantage: Implications for competition near status boundaries

Journal of Management Inquiry 27 (4): 378–381
Henning Piezunka, Wonjae Lee, Richard Haynes, Matthew S. Bothner (2018)
Abstract:
Keyword(s): Status, competition, tournaments

Merton often envisioned status growth as a process of stepping across a boundary between one status grade and another more elite status grade. Such boundaries include the border between graduate school and a top academic department that young researchers try to traverse, or the frontier between scientists outside the French Academy and scientists inside the French Academy. As it is now common to measure status continuously using network data, the behavioral ramifications of status boundaries have been understudied in recent research. In this essay, we focus on competitive behaviors that emerge near a status boundary because of the desirability - as well as the “double injustice” - of the Matthew effect. Offering insights for future research, we discuss how these competitive behaviors are likely to delay, or even derail, status growth for those who are near a status boundary.

With permission of SAGE Publishing

Volume 27
Issue 4
Pages 378–381
ISSN 15526542 (Online) 10564926 (Print)

Journal Article

Nothing is free: Data-driven optimisation unlocks freemium business models' real potential

The European Business Review September/October: 47–50
Stefan Wagner, Julian Runge (2018)
Abstract:
Subject(s): Information technology and systems, Management sciences, decision sciences and quantitative methods, Marketing, Strategy and general management
Keyword(s): Innovation, pricing, freemium, business model
Issue September/October
Pages 47–50

Journal Article

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

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

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

Making prepublication independent replication mainstream

Behavioral and Brain Sciences 41
Warren Tierney, Martin Schweinsberg, Eric Luis Uhlmann (2018)
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): Crowdsourcing science, reproducibility

The widespread replication of research findings in independent laboratories prior to publication is suggested as a complement to traditional replication approaches. The pre-publication independent replication approach further addresses three key concerns from replication skeptics by systematically taking context into account, reducing reputational costs for original authors and replicators, and increasing the theoretical value of failed replications.

© Cambridge University Press 2018

Volume 41
ISSN 1469-1825 (Online) 0140-525X (Print)

Pages