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Although the search for promising business models (BMs) is crucial for every profit-oriented venture, searching for those challenges in particular entrepreneurs. Limited resources, missing expertise and absolute uncertainty call entrepreneurs to strongly rely on their cognition in searching for a promising BM. However, as prior studies have examined cognitive search activities in isolation and neglected cognitive differences, explanations of how cognitive factors affect the BM process and outcomes are thus far insufficient.
Addressing the overall question of how BMs emerge, the dissertation contributes to the cognitive perspective in entrepreneurship and BM research. Building on the dual-process theory from cognitive psychology, the micro-foundations of managerial decision-making and insights from framing literature, this dissertation explicitly investigates the impacts of different cognitive dispositions, search activities and visual framing effects. The core assumption is that cognitive dispositions and entrepreneurs’ searches for information determine their BM decision-making. Furthermore, BM visualisations have become popular instruments with which to explain and manage today’s complex business interactions. As they abstract from reality, they can also unfold impacts on the cognitive processes.
This dissertation offers new explanations to these aspects and consists of three studies and one reflective article. The first study explores the impacts of differences in search activities and cognitive dispositions in a qualitative study with 70 entrepreneurship students. The second qualitative study explores the cognitive impacts of 103 BM visualisations. Third, a quantitative PLS-SEM experiment with 197 entrepreneurs illuminates the link between BM visualisations and cognition. The reflective article expresses the results’ meaning for the teaching of BMs.
In sum, the studies have resulted in a new theory of stabilising factors explaining how cognitive dispositions, search activities and visual framing determine entrepreneurs’ decisions to imitate or deviate from existing BMs. It indicates that the decision depends on the context-dependent strategic orientation and cognitive disposition-dependent cognitive safety, that is the correspondence between characteristics of cognitive dispositions and search activities. Moreover, the studies identified five visual framing effects that are independent of cognitive dispositions and prior experiences. This provides fertile contributions to the literature on BM methods and how BM visualisations affect decisions. Most importantly, BM visualisations provide an emotionally stabilising function to rational entrepreneurs, a cognitively stabilising function to experiential participants and do not affect indifferent participants in general.
The business model has emerged as a construct to understand how firms drive innovation through emerging technologies. It is defined as the ‘architecture of the firm’s value creation, delivery and appropriation mechanisms’ (Foss & Saebi, 2018, p. 5). The architecture is characterized by complex functional interrelations between activities that are conducted by various actors, some within and some outside of the firm. In other words, a firm’s value architecture is embedded within a wider system of actors that all contribute to the output of the value architecture.
The question of what drives innovation within this system and how the firm can shape and navigate this innovation is an essential question within innova- tion management research. This dissertation is a compendium of four individual research articles that examine how the design of a firm’s value architecture can fa- cilitate system-wide innovation in the context of Artificial Intelligence and Block- chain Technology. The first article studies how firms use Blockchain Technology to design a governance infrastructure that enables innovation within a platform ecosystem. The findings propose a framework for blockchain-enabled platform ecosystems that address the essential problem of opening the platform to allow for innovation while also ensuring that all actors get to capture their share of the value. The second article analyzes how German Artificial Intelligence startups design their business models. It identifies three distinct types of startup with dif- ferent underlying business models. The third article aims to understand the role of a firm’s value architecture during the socio-technical transition process of Arti- ficial Intelligence. It identifies three distinct ways in which Artificial Intelligence startups create a shared understanding of the technology. The last article exam- ines how corporate venture capital units configure value-adding services for their venture portfolios. It derives a taxonomy of different corporate venture capital types, driven by different strategic motivations.
Ultimately, this dissertation provides novel empirical insights into how a firm’s value architecture determines it’s role within a wider system of actors and how that role enables the firm to facilitate innovation. In that way, it contributes to both business model and innovation management literature.
This thesis offers new insights on the effects of Start-Up Subsidies (SUS) for unemployed individuals as a special kind of active labor market program (ALMP) that aims to re-integrate individuals into the labor market via the route of self-employment. Moreover, this thesis contributes to the literature on methods for causal inference when the treatment variable is continuous rather than binary. For example, this is the case when individuals differ in their degree of exposure to a common treatment.
The analysis of the effects of SUS focuses on the main current German program called “Gründungszuschuss” (New Start-Up Subsidy, NSUS) after its reform in 2011. Average Effects on participants' labor market outcomes - as measured by employment and earnings - as well as subjective well-being are estimated mainly based on propensity score matching (PSM) techniques. PSM aims to achieve balance in terms of observed characteristics by matching participants with at least one comparable non-participant in terms of their probability to receive the treatment. This estimation strategy is valid as long as all relevant characteristics that explain selection patterns into treatment are observed and included in the estimation of the propensity score. To make our analysis as credible as possible, we control for a large vector of characteristics as observed through the combination of rich administrative data from the Federal Employment Agency as well as through survey data.
Chapters two to four of this thesis puts special emphasis on aspects regarding (the evaluation of) SUS programs that have received no or only limited attention thus far. The first aspect relates to the interplay of institutional details of the program and its effectiveness. So far, relatively little is known about the importance of SUS program features such as the duration of support. Second, there is no experimental benchmark evaluation of SUS available and thus, the reliability of non-experimental estimation techniques such as PSM is of crucial importance as estimates are biased when relevant confounders are omitted from the analysis. Third, there may be potentially detrimental effects of transitioning into (relatively risky) self-employment on subjective well-being among subsidized founders out of unemployment. These were to remain undetected if the analysis would focus exclusively on labor market outcomes of participants. The results indicate positive long-term effects of SUS participation on employment and earnings among participants. These effects are substantially larger than what estimated before the reform, indicating room for improvement in program design via changes in institutional details. Moreover, non-experimental estimates of treatment effects are remarkably robust to hidden confounding. Regarding subjective well-being, this thesis finds a positive long-run impact on job satisfaction and a detrimental effect on satisfaction with social security. The latter appears to be driven by adverse effects on social insurance contributions.
In chapter five, a novel automated covariate balancing technique for the estimation of causal effects in the context of continuous treatments is derived and assessed regarding its performance compared to other (automated) balancing techniques. Although binary research designs that only differentiate between participants and non-participants of some treatment remain the most-common case in empirical practice, many applications can be adapted to include continuous treatments as well. Often, this will allow for more meaningful estimates of causal effects in order to further improve the design of programs. In the context of SUS, one may further investigate the effects of the size of monetary support or its duration on participants' labor market outcomes. Both Monte-Carlo investigations and analysis of two well-known datasets suggests superior performance of the proposed Entropy Balancing for continuous treatments (EBCT) compared to other existing estimation strategies.
Information as an envirommental policy instrument : a case study for the economics of Eco-Labeling
(2007)
Companies have a keen interest in developing skilled negotiators in order to improve their negotiation outcome. A crucial determinant of the negotiation outcome are negotiation styles that represent the negotiator’s actual behavior during the negotiation process. In this context, the author examines the variation in negotiation styles throughout the negotiation process, points out the relevance of the negotiator’s characteristics and situational context as determinants of negotiation styles, and emphasizes the importance not only of actual but also of perceived negotiation behavior. As a result, existing negotiation research is advanced as new perspectives on negotiation styles are offered to improve a negotiator’s performance.
The present dissertation investigates profit-maximizing behavior in different phases of the negotiation process. Over the last decades, research dealt in detail with behavior of negotiation actors with the aim of identifying performance enhancing factors. The majority of those studies focused on behavior within the main negotiation phase. This work, however, considers phases which are, so far, underrepresented in research but show an impact on the negotiation process and outcome. Those phases are the pre-negotiation, the first offer, and the main negotiation phase which is further divided by breaks into several rounds. Within these phases, traits of behavior are analyzed that can be used strategically in order to impact the negotiation outcome. The dissertation contains three papers, each one dealing with a specific strategy within one phase. The first paper investigates communication behavior in the pre-negotiation phase. Content analysis of a negotiation experiment shows that the employment of positive communication elements such as the generation of enthusiasm for an upcoming project results in an increase of agreements on entering a negotiation and also leads to a higher willingness to make concessions. The second paper explores the impact of a semantic first anchor, which does not contain a specific number but only gives a numerical direction, on the opponent’s concession behavior and the final outcome. By means of two scenario-based questionnaires and a negotiation experiment it is demonstrated that semantic offers reveal an anchoring effect and lead to better negotiation outcomes. The third paper deals with the introduction of breaks and their effect on the following negotiation process. Therefore, content and outcome of another negotiation experiment are investigated. The analysis shows that breaks evoke a dominant impression but can negatively impact the atmosphere and thereby also the outcome. Finally, the gathered insights are brought together and discussed. The dissertation closes with implications for practice, limitations of the work, and ideas for future research.
Alexander Rhode investigates performance-oriented measures of Contracting Authorities in public tenders conducted within the EU. He finds that Contracting Authorities can improve their performance and attract more suppliers by publishing (as precise as possible) starting prices in the beginning of a tender. First, he reports that compared with private-sector negotiations, starting prices do not create entry barriers in public procurement. Second, he finds that increased numerical precision of starting prices is linearly correlated with better performance and a higher number of bids. In public procurement, suppliers tend to attribute increased credibility to precise starting prices which reduces their (perceived) entry risks.
Social networking site use and well-being - a nuanced understanding of a complex relationship
(2022)
Social Networking Sites (SNSs) are ubiquitous and attract an enormous chair of the digital population. Their functionalities allow users to connect and interact with others and weave complex social networks in which social information is continuously disseminated between users. Besides the social value SNSs are generating, they likewise attract companies and allow for new forms of marketing, thereby creating considerable economic value alike. However, as SNSs grew in popularity, so did concerns about the impact of their use on social interactions in general and the well-being of individual users in particular. While existing scientific evidence points to both risk as well as benefits of SNS use, research still lacks a profound understanding of which aspects of SNSs enable an impact on well-being and which psychological processes on the part of the users underly and explain this relationship. Therefore, this thesis is dedicated to an in-depth exploration of the relationship between SNS use and well-being and aims to answer how SNS use can impact well-being. Primarily, it focuses on the unique technological features that characterize SNSs and enable potential well- being alterations and on specific psychological processes on the part of the users, underlying and explaining the relationship. For this purpose, the thesis first introduces the concept of well- being. It continues by presenting SNSs’ unique technological features, divided into specifics of the content disseminated on SNSs and the network structure of SNSs. Further, the thesis introduces three classes of psychological processes assumed most relevant for the relationship between SNSs and well-being: other-focused, self-focused, and contrastive processes.. It is assumed that the course and quality of these common processes change in the SNS context and that a complex interplay between the unique features of SNSs and these processes determines how SNSs may ultimately affect users' well-being - both in positive and negative ways. The dissertation comprises seven research articles, each of which focusses on a particular set of SNS characteristics, their interplay with one or more of the proposed psychological processes, and ultimately the resulting effects on user well-being or its key resilience and risk factors. The seven articles investigate this relationship using different methodological approaches. Three articles are based on either systematic or narrative literature reviews, one applies an empirical cross-sectional research design, and three articles present an experimental investigation. Thematically, two articles revolve around SNS use’s effect on self-esteem. Three articles examine the specific role of the emotion of envy and its potential to establish and perpetuate a well-being-damaging social climate on SNSs. The two last articles of this thesis revolve around the established assumption that active and passive SNS use, as different modalities of SNS use, cause differential effects on users’ well-being due to the involvement of different psychological processes. The results of this thesis illustrate different ways how SNSs can affect users’ well-being. The results suggest that especially contrastive processes play a decisive role in explaining potential well-being risks for SNS users. Their interplay with certain SNS features seems to foster upward social comparisons and feelings of envy, potentially leading to a complex set of deleterious effects on users’ well-being. At the same time, the findings illuminate ways in which SNSs can benefit users and their self-esteem – especially when SNS use promotes self- focused and social-feedback-based other-focused processes. The thesis and their findings illustrate that the relationship between SNSs and well-being is complex. Therefore, a nuanced perspective, taking into consideration both the technological uniqueness of SNSs and the psychological processes they are enabling, is crucial to understand how these technologies affect their users in good and potentially harmful ways. On the one hand, the gathered insights contribute to research, providing novel insights into the complex relationship between SNS use and well-being. On the other hand, the results enable a focused and action-oriented derivation of recommendations for stakeholders such as individual users, policymakers, and platform providers. The findings of this thesis can help them to better combat SNS-related risks and ultimately ensure a healthy and sustainable environment for users - and thus also the economic values of SNSs - in the long term.
Social networking sites
(2023)
The ability of a company to innovate and to launch innovation is a critical competitive edge to remain competitive in the 21st century. Large organizations therefore increasingly recognize employees as a significant factor and critical source of innovation. Several studies assert the fact that every employee has to offer certain skills and knowledge and can contribute to innovation. Hence, every employee has a certain ‘entrepreneurial potential’. This potential can be expressed in the form of entrepreneurial behaviour and can occur in many ways, from monopersonal innovation championing to several small scale contributions, where several individuals team up for innovation. To support entrepreneurial behaviour of their employees, large organizations increasingly rely on Corporate Entrepreneurship. They set up organizational structures and venturing units, offer vehicles and tools to their employees to be more entrepreneurial. The evolvement of new tools and technologies thereby allow for new ways of employee involvement, also allowing for more radical innovation to be developed collaboratively. Yet, many of such offerings fail to achieve the desired outcome. While some employees immediately opt-in for innovation, others do not and their entrepreneurial potential remains untapped. This research explores how large organizations can better support their employees to express their entrepreneurial potential, thus moving from non-entrepreneurial behaviour or not wanting to be involved, to actually expressing entrepreneurial behaviour. The underlying research therefore is two-fold. While focusing on the individual level and the entrepreneurial behaviour of employees, this research also takes the organizational perspective into account in order to identify how non-entrepreneurial behaviour can be stimulated towards entrepreneurial behaviour. Using an empirical qualitative research design based on pragmatism and abduction, data is collected by means of qualitative interviews as well as a longitudinal use case setting. Grounded theory is then applied for analysis and sense making. The main outcome is a theoretical model of why employees are expressing or not expressing their entrepreneurial potential and how non-expression can potentially be triggered towards entrepreneurial behaviour. The results indicate that there is no one-size-fits all model of Corporate Entrepreneurship. This research therefore argues that organizations can achieve higher levels of entrepreneurial behaviour when addressing employees differently. By developing a theoretical model as well as suggestions of how this model can be applied in practice, this research contributes to theory and practice alike. This document closes suggesting future research areas around supporting employees to express their entrepreneurial potential.
The Dynamics of M&A Strategy
(2010)
A new model that links visionary leadership with team performance is
postulated. It is proposed that leader prototypicality will negatively
moderate the effect of visionary leadership on team goal monitoring and performance. This model underlines that teams will compensate for the less prototypicality of a visionary leader by engaging in more goal monitoring, which is a process that is conducive to team performance. A field study included 60 teams, 180 individuals, and 60 team leaders was conducted in Egypt. Parameters were collected on the individual level.
Aggregation measures (rwg, ICC1 & ICC2) were acceptable and the averages were calculated for each team. The proposed three-factor model exhibited a reasonable fit to the data, χ2(130) = 259.93, p-value0.01; CFI = 0.90; and RMSEA = 0.13). The hypothesized negative moderation effect of leader prototypicality on the relationship between visionary leadership and team goal monitoring was statistically significant (-0.16; s.e.= 0.06; t = -3.13; p <0.01; 95% CI: -0.31, -0.07). Results showed a significant index of moderated mediation (-0.07; s.e.= 0.05; 95% CI: -0.20, -0.01). As predicted, the indirect effect of visionary leadership on team performance mediated by team goal monitoring was more strongly positive when leader prototypicality was low (b = 0.27; s.e.= 0.16; 95% CI: 0.04, 0.68), rather than high (b = 0.13; s.e.= 0.10; 95% CI: 0.01, 0.45). A proposal for extending the dimensions of identity-based leadership is discussed. This dissertation makes four significant contributions to theory and research on leadership. First, the main contribution of this research lies in showing that visionary leadership is more strongly positively related to team performance when leader prototypicality is low, rather than high. Second, this dissertation provides a contribution toward overcoming the fragmentation in the leadership literature by desegregating the literature on visionary leadership and leader-team prototypicality. Third, team goal monitoring as a mechanism that explains the interactive effects of visionary leadership and leader prototypicality on team performance was identified. Fourth, this study tests the postulated research model in Egypt, a culture that has in the past received scant attention.
Seizing long-term growth opportunities is both a key goal of and a challenge for companies at the same time. Saturated markets and shorter product lifecycles have changed market dynamics over the past decades, in such a way that competition on price or quality leadership has receded into the background. Instead, firms increasingly depend on the successful development of new business fields and strong brands to retain customers and spur growth. Thus, the two pillars of business development and brand management have become core strategic functions.
By focusing on innovation – a key dimension of business development – this book analyzes the interrelations between innovation and brand management and the ways in which both functions can benefit from each other. Innovations are considered crucial for building brand equity and revitalizing brand images in the long term, while vice versa, branding could facilitate consumer adoption of a newly launched innovative product or service. Since a brand is a first quality signal, it could act as a vehicle for consumers to reduce the risks and uncertainty associated with a novel product from a consumer's perspective and encourage product trial.
This book empirically investigates whether such interdependencies exist and how managers can make use of them to best leverage their company’s innovation and branding efforts. In particular, the author examines the interplay between innovation and brand management by analyzing (1) how innovations impact consumer attitudes towards the (parent) brand and its brand images, (2) how branding an innovation facilitates its market success, and (3) how building brand equity can serve as a buffer against impacts from adverse events such as a product scandal.
Its findings are highly relevant from a managerial and a theoretical perspective. They provide managers with guidance on two key aspects of business development and innovation management: One, how is innovation employed in order to best enhance a brand's equity (e.g., to revitalize its brand image)? Two, how to choose whether to leverage an existing brand or to develop a new brand in order to facilitate consumer adoption of a new innovation?
This thesis puts the citizen-state interaction at its center. Building on a comprehensive model incorporating various perspectives on this interaction, I derive selected research gaps. The three articles, comprising this thesis, tackle these gaps. A focal role plays the citizens’ administrative literacy, the relevant competences and knowledge necessary to successfully interact with public organizations. The first article elaborates on the different dimensions of administrative literacy and develops a survey instrument to assess these. The second study shows that public employees change their behavior according to the competences that citizens display during public encounters. They treat citizens preferentially that are well prepared and able to persuade them of their application’s potential. Thereby, they signal a higher success potential for bureaucratic success criteria which leads to the employees’ cream-skimming behavior. The third article examines the dynamics of employees’ communication strategies when recovering from a service failure. The study finds that different explanation strategies yield different effects on the client’s frustration. While accepting the responsibility and explaining the reasons for a failure alleviates the frustration and anger, refusing the responsibility leads to no or even reinforcing effects on the client’s frustration. The results emphasize the different dynamics that characterize the nature of citizen-state interactions and how they establish their short- and long-term outcomes.
Buyer-seller negotiations have significant impact on a company’s profitability, which makes practitioners aim at maximizing their performance. One lever for increasing bargaining performance is to pursue a clearly defined aspiration, i.e. one’s most desired outcome. In this context, the author explores the role of such aspirations in the three negotiation phases: preparation, bargaining, and striking a deal. She investigates determinants of aspirations, unintended consequences such as unethical bargaining behavior, and the consequences of overly ambitious aspirations. As a result, she does not only close existing gaps in negotiation research, but also derives valuable implications for practitioners
Over the past decade, society has witnessed an increasing expansion of service economies as manufacturing (i.e., product-oriented) companies break free from their product-based business model and move toward more service-oriented value creation as a result of several economic, technological, and social changes. As they shift from products to (service) solutions, manufacturing companies pursue new strategic direction, inter alia, by extensively employing service business development activities.
The objective of this dissertation is to investigate the considerable (re-)emerging stream of service business development by providing vital insights for academia and management into important focus areas that have hardly, if at all, been (empirically) investigated in the existing literature before. Therefore, these findings can be vital to informing a differentiation in current and future marketing strategies in business practice.
First of all, this dissertation focuses on the extent to which service business development is transposed into business practice. Because scarce empirical-quantitative research has studied the current state of service business development across various industry and market sectors, this study analyzes a unique, manually collected dataset of 266 (product and service) business development activities. In so doing, this investigation contributes to literature by presenting a comprehensive, industry-wide status quo and trend report of service business development in practice.
Furthermore, given the surprisingly limited scientific attention paid to the question of how service business development is strategically configured and further applied to different environmental circumstances, this dissertation provides comprehensive theoretical and practical implications by analyzing in detail a sample of 137 service business developments of 66 product-oriented companies.
Lastly, manufacturers are recognizing that service-oriented value creation is moving toward a more collaborative process of co-creation as a promising measure to achieve competitive advantage, and even more as an appropriate response to complex business environments. Thus, an increasing number of companies around the world have recently introduced business models related to access-based services such as car-, scooter-, and bike-sharing systems. But despite the considerable advantages of access-based services as an alternative to ownership, these companies are now seeing that consumer adoption and (re-)usage rates remain insufficient. Owing to the lack of general and cross-national scientific knowledge, the purpose of this dissertation continues to explore which factors impede diffusion of related service business development activities from a consumer perspective and what kind of differences can be established between countries. Consequently, with a total of 1,443 participants, a cross-national survey was carried out in three countries, i.e., the United States, Germany, and China, to measure a vast number of different adoption barriers derived from a developed integrated framework that combines established theories within innovation and adoption behavior research.
Wie hängen Vertrauen, Konsumeinstellungen und Verhalten bezüglich Fairtrade zusammen?
Dies ist die grundlegende Frage, mit der sich diese Arbeit beschäftigt. Lea Dirkwinkel analysiert die Fragestellung am Beispiel des Fairtrade-Labels, das als Symbol für das Produktzertifizierungssystem von Fairtrade International steht und das bekannteste Beispiel der Fairtrade-Bewegung darstellt.
Die Forschungsfrage wird einerseits zurückgeführt auf die Tatsache, dass die Qualität von Fairtrade-Gütern durch Konsumenten nicht erfasst werden kann, und andererseits durch die sogenannte Einstellungs-Verhaltens-Lücke begründet. Die Einstellungs-Verhaltens-Lücke beschreibt die kognitive Dissonanz zwischen positiven ethischen Einstellungen und Kaufintentionen sowie dem tatsächlichen Kaufverhalten und widerspricht traditionellen Einstellungs-Verhaltens-Modellen, die besagen, dass die Einstellung das Verhalten von Menschen bestimmt. Beide zuvor genannten Aspekte begründen in der Marketingtheorie die Relevanz von Vertrauen für den Konsum von Fairtrade-Produkten, aber auch anderen nachhaltigen Gütern.
Die Analyse basiert auf einer Online-Datenerhebung und erfolgte anhand der Kombination aus Conjoint Analyse und Strukturgleichungsanalyse. Die innovative methodische Vorgehensweise lieferte sowohl für die Marketingforschung als auch für die Praxis relevante Ergebnisse. Zum einem wird die wichtige Rolle von Vertrauen für den Fairtrade-Konsum bestätigt; zum anderen erklärt die Arbeit, wie sich Fairtrade-Vertrauen auswirkt. Das Vertrauen in das Fairtrade-Label stellt den Ausgangspunkt für Vertrauensbeziehungen zwischen Fairtrade und den Konsumenten dar und wird auf die zertifizierten Produkte übertragen.
Empfehlungen, die sich daraus ergeben, konzentrieren sich auf Maßnahmen, die das Vertrauen in Fairtrade-Labels stärken, z.B. durch die Reduzierung der Anzahl verschiedener Labels oder die verstärkte Kommunikation der Unabhängigkeit von Zertifizierungsorganisationen.