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States, in their conflicts with militant groups embedded in civilian populations, often resort to policies of collective punishment to erode civilian support for the militants. We attempt to evaluate the efficacy of such policies in the context of the Gaza Strip, where Israel's blockade and military interventions, purportedly intended to erode support for Hamas, have inflicted hardship on the civilian population.
We combine Palestinian public opinion data, Palestinian labor force surveys, and Palestinian fatalities data, to understand the relationship between exposure to Israeli policies and Palestinian support for militant factions.
Our baseline strategy is a difference-in-differences specification that compares the gap in public opinion between the Gaza Strip and the West Bank during periods of intense punishment with the gap during periods when punishment is eased. Consistent with previous research, we find that Palestinian fatalities are associated with Palestinian support for more militant political factions. The effect is short-lived, however, dissipating after merely one quarter.
Moreover, the blockade of Gaza itself appears to be only weakly associated with support for militant factions. Overall, we find little evidence to suggest that Israeli security policies toward the Gaza Strip have any substantial lasting effect on Gazan support for militant factions, neither deterring nor provoking them relative to their West Bank counterparts.
Our findings therefore call into question the logic of Israel's continued security policies toward Gaza, while prompting a wider re-examination of the efficacy of deterrence strategies in other asymmetric conflicts.
Do internships pay off?
(2022)
We study the causal effect of student internship experience in firms on earnings later in life. We use mandatory firm internships at German universities as an instrument for doing a firm internship while attending university. Employing longitudinal data from graduate surveys, we find positive and significant earnings returns of about 6 percent in both ordinary least squares (OLS) and instrumental variables (IV) regressions. The positive returns are particularly pronounced for individuals and areas of study that are characterized by a weak labor market orientation. The empirical findings show that graduates who completed a firm internship face a lower risk of unemployment during the first year of their careers, suggesting a smoother transition to the labor market.
Childhood obesity is one of the most serious public health challenges of the twenty-first century. While small-scale experiments change behaviors among adults in the short run, we know little about the effectiveness of large-scale policies or the longer-run impacts. To nudge primary school children into a long-term habit of exercising, the German state of Saxony distributed sports club membership vouchers among all 33,000 third graders in 2009. In 2018, we carried out a register-based survey to evaluate the policy. Even after a decade, awareness of the voucher program was significantly higher in the treatment group. We also find that youth received and redeemed the vouchers. However, we do not find significant short- or long-term effects on sports club membership, physical activity, overweightness, or motor skills. Apparently, membership vouchers for children are not a strong enough policy tool to overcome barriers to exercise regularly.
We examine the relationship between different types of power investments and regional economic dynamics. We construct a novel panel dataset combining data on regional GDP and power capacity additions for different technologies between 1960 and 2015, which covers 65% of the global power capacity that has been installed in this period. We use an event study design to identify the effect of power capacity addition on GDP per capita, exploiting the fact that the exact amount of power capacity coming online each year is determined by random construction delays. We find evidence that GDP per capita increases by 0.2% in the 6 years around the coming online of 100 MW coal-fired power capacity. We find similar effects for hydropower capacity, but not for any other type of power capacity. The positive effects are regionally bounded and stronger for projects on new sites (green-field). The magnitude of this effect might not be comparable to the total external costs of building new coal-fired power capacity, yet our results help to explain why policymakers favor coal investments for spurring regional growth.
We examine the determinants of the disclosure of value-based (VB) performance measures in Germany. We argue that firms are more likely to disclose VB performance measures when information asymmetry is greater, as greater information asymmetry means firms have a greater need to credibly signal a shareholder value orientation. Using a hand-collected dataset of German listed firms covering 1,528 firm-years from 2004 to 2011, we demonstrate that firms are more likely to disclose a VB performance measure if the free float is larger than the blocking minority and also, when firms are large, if they have high foreign sales to total sales ratios and are not cross-listed internationally. Our results indicate that German firms use VB performance measures to improve investor communication and to substantiate their shareholder value orientation. Our results should be interpreted against a background of increased shareholder value orientation and sophisticated cost accounting in German firms.
Coming back for more
(2022)
Recent spikes in social networking site (SNS) usage times have launched investigations into reasons for excessive SNS usage. Extending research on social factors (i.e., fear of missing out), this study considers the News Feed setup. More specifically, we suggest that the order of the News Feed (chronological vs. algorithmically assembled posts) affects usage behaviors. Against the background of the variable reward schedule, this study hypothesizes that the different orders exert serendipity differently. Serendipity, termed as unexpected lucky encounters with information, resembles variable rewards. Studies have evidenced a relation between variable rewards and excessive behaviors. Similarly, we hypothesize that order-induced serendipitous encounters affect SNS usage times and explore this link in a two-wave survey with an experimental setup (users using either chronological or algorithmic News Feeds). While theoretically extending explanations for increased SNS usage times by considering the News Feed order, practically the study will offer recommendations for relevant stakeholders.
Active use of social networking sites (SNSs) has long been assumed to benefit users' well-being. However, this established hypothesis is increasingly being challenged, with scholars criticizing its lack of empirical support and the imprecise conceptualization of active use. Nevertheless, with considerable heterogeneity among existing studies on the hypothesis and causal evidence still limited, a final verdict on its robustness is still pending. To contribute to this ongoing debate, we conducted a week-long randomized control trial with N = 381 adult Instagram users recruited via Prolific. Specifically, we tested how active SNS use, operationalized as picture postings on Instagram, affects different dimensions of well-being. The results depicted a positive effect on users' positive affect but null findings for other well-being outcomes. The findings broadly align with the recent criticism against the active use hypothesis and support the call for a more nuanced view on the impact of SNSs. <br /> Lay Summary Active use of social networking sites (SNSs) has long been assumed to benefit users' well-being. However, this established assumption is increasingly being challenged, with scholars criticizing its lack of empirical support and the imprecise conceptualization of active use. Nevertheless, with great diversity among conducted studies on the hypothesis and a lack of causal evidence, a final verdict on its viability is still pending. To contribute to this ongoing debate, we conducted a week-long experimental investigation with 381 adult Instagram users. Specifically, we tested how posting pictures on Instagram affects different aspects of well-being. The results of this study depicted a positive effect of posting Instagram pictures on users' experienced positive emotions but no effects on other aspects of well-being. The findings broadly align with the recent criticism against the active use hypothesis and support the call for a more nuanced view on the impact of SNSs on users.
Long-term value creation is expected not only to be concerned with maximizing shareholder value but also includes the impact on other stakeholders and the environment. Environmental, social, and governance (ESG) issues are therefore gaining increasing importance, in line with the growing demand for corporate sustainability. ESG ratings foster the comparison of companies with respect to their sustainable practices. This study aims to investigate how ESG ratings impact financial performance in the European food industry. Ordinary least squares regression is applied to analyze the relation between ESG ratings and financial performance over a 4-year period from 2017 to 2020. The profitability measures Return on Assets (ROA) and Return on Equity (ROE) are employed as financial performance measures, while ESG ratings are obtained from the database CSRHub. Results show that higher ESG ratings are associated with better financial performance. Although the effect is modest in the present study, the findings support previous results that ESG ratings are positively related to financial performance. Nonetheless, they also highlight that ESG ratings strongly converge to the mean, which depicts the need to reassess whether ESG ratings are able to measure actual ESG behavior.
In this study, we contribute to the scholarly conversation on firm-level business model changes following a neoconfigurational approach. By exploring configurations of business model changes over time, we add the direction of business model changes-namely business model convergence or divergence-as a vital avenue to the business model innovation literature. We identify necessary business model convergence and divergence recipes in a sample of N = 217 strategic dyadic alliances. Firstly, technological proximity emerges as a single precondition to both converging and diverging business models. Secondly, business models between competitors either converge through complementarities or tend not to change relative to each other. Thirdly, equity participation enables business model divergence through co-specialization. We conclude with a discussion of business model trajectories and future research directions.
Findings in the extant literature are mixed concerning when and how gender diversity benefits team performance. We develop and test a model that posits that gender-diverse teams outperform gender-homogeneous teams when perceived time pressure is low, whereas the opposite is the case when perceived time pressure is high. Drawing on the categorization-elaboration model (CEM; van Knippenberg, De Dreu, & Homan, 2004), we begin with the assumption that information elaboration is the process whereby gender diversity fosters positive effects on team performance. However, also in line with the CEM, we argue that this process can be disrupted by adverse team dynamics. Specifically, we argue that as time pressure increases, higher gender diversity leads to more team withdrawal, which, in turn, moderates the positive indirect effect of gender diversity on team performance via information elaboration such that this effect becomes weaker as team withdrawal increases. In an experimental study of 142 four-person teams, we found support for this model that explains why perceived time pressure affects the performance of gender-diverse teams more negatively than that of gender-homogeneous teams. Our study sheds new light on when and how gender diversity can become either an asset or a liability for team performance.
Time for change?
(2022)
Purpose:
This study aims to provide probable future developments in the form of holistic scenarios for business negotiations. In recent years, negotiation research did not put a lot of emphasis on external changes. Consequently, current challenges and trends are scarcely integrated, making it difficult to support negotiation practice perspectively.
Design/methodology/approach:
This paper applies the structured, multi-method approach of scenario analysis. To examine the future space of negotiations, this combines qualitative and quantitative measures to base our analysis on negotiation experts’ assessments, estimations and visions of the negotiation future.
Findings:
The results comprise an overview of five negotiation scenarios in the year 2030 and of their individual drivers. The five revealed scenarios are: digital intelligence, business as usual, powerful network – the route to collaboration, powerful network – the route to predominance and system crash.
Originality/value:
The scenario analysis is a suitable approach that enables to relate various factors of the negotiation environment to negotiations themselves and allows an examination of future changes in buyer–seller negotiations and the creation of possible future scenarios. The identified scenarios provide an orientation for business decisions in the field of negotiation.
Purpose Paradoxical leadership (PL) is an emerging perspective to understand how leaders help followers deal with paradoxical demands. Recently, the positive relationship between PL and follower performance was established. This paper builds on and extends this research by interpreting PL as sensegiving and developing theory about mediation in the relationship between PL and adaptive and proactive performance. Design/methodology/approach The paper develops a new measure for PL as sensegiving and provides a test of the mediation model with data from two different sources and two measurement times in a German company. Findings Multilevel mediation analysis (N = 154) supports the mediation model. Originality/value The paper presents sensegiving about paradox as a core element of PL, which informs the choice of change-readiness as mediator. This study also develops and validates a scale to measure PL in future research.
This study seeks to explain the major drivers of trading activity in commodity futures markets and gage the effect of trading activity on commodity prices. Rather than concentrating on a specific commodity subgroup or a particular type of commodity traders, we provide an extensive overview of the behavior across all market participants and their influence on commodity prices by using a broad set of commodity futures contracts. Although commodity futures returns show co-movement with financial fundamentals (U.S. dollar index, equity, and bond markets), based on the Disaggregated Commitment of Traders Report (DCOT), this relationship cannot be attributed to trading activity. Pricing in commodity markets can be predominantly attributed to hedgers and influential speculators (money managers), whereas small speculators (nonreportable traders) are crucial to some soft commodity futures similar to dealers in metals commodity futures. Furthermore, we find limited cases where inventory changes exert a sizable influence on position changes of DCOT traders.