Publication records

Organizations strive to tap into the potential of crowdsourcing by asking people around the world to come up with ideas. But what makes crowdsourcing work? We conducted a large-scale research project to understand why some organizations succeed to attract crowds and others fail.

This paper provides an overview of the main perspectives and themes emerging in research on open innovation (OI). The paper is the result of a collaborative process among several OI scholars – having a common basis in the recurrent Professional Development Workshop on “Researching Open Innovatio” at the Annual Meeting of the Academy of Management. In this paper, we present opportunities for future research on OI, organised at different levels of analysis. We discuss some of the contingencies at these different levels, and argue that future research needs to study OI – originally an organisational-level phenomenon – across multiple levels of analysis. While our integrative framework allows comparing, contrasting and integrating various perspectives at different levels of analysis, further theorising will be needed to advance OI research. On this basis, we propose some new research categories as well as questions for future research – particularly those that span across research domains that have so far developed in isolation.

In October 2016, the Digital Society Institute hosted a workshop dedicated to the topic of vulnerabilities at large and in particular of vulnerabilities in security products. The workshop included talks from Thomas Dullien (former Google Project Zero), Matthias Luft (ERNW), Dr. Christoph Peylo (T-Labs) and a comment from Michael Kranawetter, (Head of Information Security Microsoft Germany).

Research Question: This paper analyses the effect of a sustained period of low interest rates on the outlook for the German banking sector. Low interest rates provide a particular challenge for German banks, which are highly dependent on interest income and exhibit relatively high cost-income ratios. It is thus an open question whether German banks will manage to earn their cost of capital in this environment. Contribution: We analyse the interest earnings from loans and the interest expenses for deposits, i.e. the core business interest margin of a bank. We consider different future interest rate scenarios and analyse the extent to which they cause a further narrowing of the core business interest margin. Finally, we test whether a special feature of German accounting standards could serve as a buffer in sustaining profitability for some time. Results: Our results indicate that a sustained period of low interest rates will increase the pressure on the core business interest margin earned by German banks. Even if interest rates stayed constant at current levels, the core business interest margin of German banks would be reduced by 16% over the next four years. Moreover, this projected decline in the core business interest margin will result in only 20% of German banks earning a cost of capital of 8% by the end of this decade. However, by applying a special feature of German accounting standards and using hidden and open reserves, German banks may alleviate this decline to a certain extent.

We study the optimal pricing problem of a monopolistic firm facing customers with limited attention and capability to process information about the value (quality) of a single offered product. We model customer choice based on the theory of rational inattention in the economics literature, which enables us to capture not only the impact of true quality and price, but also the intricate effects of customer’s prior beliefs and cost of information acquisition and processing. We formulate the firm’s price optimization problem assuming that the firm can also use the price to signal the quality of the product to customers. To delineate the economic incentives of the firm, we first characterize the pricing and revenue implications of customer’s limited attention without signalling, and then use these results to explore Perfect Bayesian Equilbiria (PBE) of the strategic pricing signalling game. As an extension, we consider heterogeneous customers with different information costs as well as prior beliefs. We discuss the managerial implications of our key findings and prescribe insights regarding information provision and product positioning.

 

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).

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.