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

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

Journal Article

Learning distributed teamwork by creating webinars

Training and Management Development Methods 27: 6.11–6.17
Abstract:
Subject(s): Human resources management/organizational behavior
Keyword(s): distributed teamwork, webinar, executive education

With permission of Emerald

Volume 27
Pages 6.11–6.17

Journal Article

Loyalty program types as drivers of customer retention: A comparison of stand-alone programs and multi-vendor loyalty programs through the lens of transaction cost economics

International Review of Retail, Distribution and Consumer Research 23 (3): 305–323
Mario Rese, Annika Hundertmark, Heiko Schimmelpfennig, Laura M. Schons (2013)
Abstract:
Subject(s): Marketing
Keyword(s): loyalty programs, multi-vendor loyalty program, stand-alone programs, customer retention, relationship marketing, switching barriers, transaction cost economics
Volume 23
Issue 3
Pages 305–323

Journal Article

When do consumers indulge in luxury? Emotional certainty signals when to indulge to regulate emotions

Marketing ZFP - Journal of Research and Management 35 (2): 79–90
Francine Espinoza Petersen, Klaus Heine (2013)
Abstract:
Subject(s): Marketing
Volume 35
Issue 2
Pages 79–90

Journal Article

So Lernen Sie, Daten zu Lieben [Why IT fumbles analytics]

Harvard Business Manager 35 (3): 70–79
Reprint of: Why IT fumbles analytics. Harvard Business Review 91 (1): 104–111.
Donald A. Marchand, Joe Peppard (2013)
Abstract:
Subject(s): Information technology and systems
Volume 35
Issue 3
Pages 70–79

Journal Article

Por que a TI se atrapalha com a analítica? [Why IT fumbles analytics]

Harvard Business Review Brasil
Reprint of: Why IT fumbles analytics. Harvard Business Review 91 (1): 104–111.
Joe Peppard, Donald A. Marchand (2013)
Abstract:
Subject(s): Information technology and systems

Na tentativa de extrair informação da imensidão de dados hoje colhidos de fontes internas e externas, muitas empresas estão investindo pesado em ferramentas de TI e contratando cientistas de dados. A maioria, contudo, pena para conseguir um retorno digno do esforço. Isso porque estão abordando projetos de “big data” e analítica da mesma forma que abordam qualquer outro projeto de TI, sem perceber que são dois bichos completamente distintos.


Journal Article

Patent examination at the State Intellectual Property Office in China

Research Policy 42 (2): 552–563
Johannes Liegsalz, Stefan Wagner (2013)
Abstract:
Subject(s): Economics, politics and business environment, Technology, R&D management
Keyword(s): patent system, patent examination, State Intellectual Property Office China, duration analysis

The number of patent applications filed at the Chinese State Intellectual Property Office SIPO grew tremendously over the last decades and the SIPO has become the world's third largest patent office by 2009. In this paper, we provide an overview of the institutional background of patent examination in China. Moreover, we empirically analyze the determinants of the grant lags applicants have to expect at the SIPO. The multivariate duration analysis is based on the population of 443,533 patent applications filed at the SIPO between 1990 and 2002. The average grant lag is 4.71 years with considerable variation across 30 different technology areas. Interestingly, we find that Chinese applicants are able to achieve faster patent grants than their non-Chinese counterparts (even after controlling for various other determinants of grant lags). This might be an indication of a differential treatment of Chinese applicants which would be in violation of Art. 3 (National Treatment) and Art. 4 (Most-favored Nation Treatment) of TRIPS that has been signed by China in 2001.

With permission of Elsevier

Volume 42
Issue 2
Pages 552–563

Journal Article

A theory of self-control and naïveté: The blights of willpower and blessings of temptation

Journal of Economic Psychology 34 (1): 8–19
Kristian Ove R. Myrseth, Conny Wollbrant (2013)
Abstract:
Subject(s): Ethics and social responsibility, Human resources management/organizational behavior, Management sciences, decision sciences and quantitative methods
Keyword(s): inter-temporal choice, pre-commitment, temptation, self-control
JEL Code(s): D01, D03, D69, D90

We model self-control conflict as a stochastic struggle of an agent against a visceral influence, which impels the agent to act sub-optimally. The agent holds costly pre-commitment technology to avoid the conflict altogether and may decide whether to procure pre-commitment or to confront the visceral influence. We examine naïve expectations for the strength of the visceral influence; underestimating the visceral influence may lead the agent to exaggerate the expected utility of resisting temptation, and so mistakenly forego pre-commitment. Our analysis reveals conditions under which higher willpower – and lower visceral influence – reduces welfare. We further demonstrate that lowering risk aversion could reduce welfare. The aforementioned results call into question certain policy measures aimed at helping people improve their own behavior.

With permission of Elsevier

Volume 34
Issue 1
Pages 8–19

Journal Article

Ties that last: Tie formation and persistence in research collaborations over time

Administrative Science Quarterly 58 (1): 69–110
Linus Dahlander, Daniel A. McFarland (2013)
Abstract:
Subject(s): Technology, R&D management
Keyword(s): research collaborations, network ties, tie formation, tie persistence, long-term ties, task relationships

Using a longitudinal dataset of research collaborations over 15 years at Stanford University, we build a theory of intraorganizational task relationships that distinguishes the different factors associated with the formation and persistence of network ties. We highlight six factors: shared organizational foci, shared traits and interests, tie advantages from popularity, tie reinforcement from third parties, tie strength and multiplexity, and the instrumental returns from the products of ties. Findings suggest that ties form when unfamiliar people identify desirable and matching traits in potential partners. By contrast, ties persist when familiar people reflect on the quality of their relationship and shared experiences. The former calls for shallow, short-term strategies for assessing a broad array of potential ties; the latter calls for long-term strategies and substantive assessments of a relationship’s worth so as to draw extended rewards from the association. This suggests that organizational activities geared toward sustaining persistent intraorganizational task relationships need to be different from activities aimed at forging new ones.

With permission of Sage

Volume 58
Issue 1
Pages 69–110

Pages