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As charismatic leaders are more inclined to have personality traits predisposing them to unconventional, extreme and sometimes self- destructive behavior, there is a question of how those behaviors affect the followers, namely their acceptance of the leader and their willingness to share the leader’s vision. This study explores the interface between potential followers’ attribution of causes of positive and negative behavior of charismatic leaders, and the connection between the leader and followers through shared vision. The study proposes a measure to explore how the followers make attributions of positive or negative events for charismatic and non-charismatic leaders, and the extent to which they are likely to share the vision of a charismatic or a non-charismatic leader using a sample of real business executives. The study finds that the respondents are significantly more likely to share the vision of the charismatic leader, particularly following negative events involving the latter, and are significantly more likely to view negative behavior as less important, more acceptable and more caused by personal reasons. Charismatic leaders may be better able to ‘weather the storm’ when negative events happen compared to the non-charismatic ones. The paper concludes with a suggestion for a new maintenance model of charismatic leadership.

Organizational network research has demonstrated that multiple benefits accrue to people occupying brokerage positions. However, the extant literature offers scant evidence of the process postulated to drive such benefits (information brokerage) and therefore leaves unaddressed the question of how brokers broker. We address this gap by examining the information-brokerage interactions in which actors engage. We argue that the information-brokerage strategies of brokers differ in three critical ways from those of actors embedded in denser network positions. First, brokers more often broker information via short-term interactions with colleagues outside their network of long-term relationships, a process we label “unembedded brokerage.” Second, when they engage in unembedded brokerage, brokers are more likely than are actors in dense network positions to intermediate the flow of information between the brokered parties, consistent with a tertius gaudens strategy. Conversely, and third, when they broker information via their network of long-term ties (embedded brokerage), brokers are more likely than are densely connected actors to facilitate a direct information exchange between the brokered parties, consistent with a tertius iungens strategy. Using a relational event model, we find support for our arguments in an empirical analysis of email communications among employees in a medium-sized, knowledge-intensive organization, as well as in a replication study. The theory and evidence we present advance a novel, temporal perspective on how brokers broker, which reconciles structural and process views of network brokerage. Our findings substantiate the notion of brokers as a dynamic force driving change in organizational networks, and they help to integrate within a unitary explanatory framework tertius iungens and tertius gaudens views of brokerage.

© 2016, INFORMS

Firms commonly run field experiments to improve their freemium pricing schemes. However, they often lack a framework for analysis that goes beyond directly measurable outcomes and focuses on longer term profit. We aim to fill this gap by structuring existing knowledge on freemium pricing into a stylized framework. We apply the proposed framework in the analysis of a field experiment that contrasts three variations of a freemium pricing scheme and comprises about 300,000 users of a software application. Our findings indicate that a reduction of free product features increases conversion as well as viral activity, but reduces usage – which is in line with the framework’s predictions. Additional back-of-the-envelope profit estimations suggest that managers were overly optimistic about positive externalities from usage and viral activity in their choice of pricing scheme, leading them to give too much of their product away for free. Our framework and its exemplary application can be a remedy.

 

View all ESMT Working Papers in the ESMT Working Paper Series here. ESMT Working Papers are also available via SSRN, RePEc, EconStor, and the German National Library (DNB).

 

View all ESMT Working Papers in the ESMT Working Paper Series here. ESMT Working Papers are also available via SSRN, RePEc, EconStor, and the German National Library (DNB).

The case study describes developments at Heraeus, a successful mid-size company from Germany that markets a wide range of high-grade precious metal products worldwide. It presents the developments of the segment that is active on the market for silver pastes for photovoltaic systems. This market had experienced strong shifts in demand since 2011 – firstly from Europe and North America to Asia, particularly China, and secondly from standard products to customized product solutions. Due to these developments Heraeus had lost its market leadership and recruited Andreas Liebheit as the new head of the segment, who was to get it back on a successful track. The participants will discuss what strategic decisions Andreas Liebheit should make to counter the market developments and what implications these decisions will have in particular on marketing and sales, the global organization structure and leadership culture of the segment. Beyond the strategic aspect, the case can serve to explore what conclusions Heraeus should draw on a company-wide level from the developments of the segment.

• Analyzing situation and trends on a technology-driven, global B2B market.
• Understanding challenges and opportunities of small/medium companies (‘hidden champions’) when competing with big corporations in niche markets.
• Reflecting options of changing business strategy and reviewing their implications, in particular regarding:
• the global distribution of the internal value chain of a company
• leadership culture when shifting the business focus from the western hemisphere to Asia
• HR requirements when moving from product to solution business

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