research report 2014 2 HHL RESEARCH REPORT 2014 HHL RESEARCH REPORT 2014 3 Content Dear reader, innovate125 – HHL Targeting Top 10 in Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 Scientific Advisory Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05 Center for Advanced Studies in Management (CASiM) . . . . . . . . . . . . . . . . . . . . 06 Strategic and international Management Dr. Ing. h.c. F. Porsche AG Chair of Strategic Management and Family Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Center for Strategy and Scenario Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ICCR Chair of Corporate Responsibility and Governance . . . . . . . . . . . . . . . . . Alfried Krupp von Bohlen und Halbach Junior Professorship in International Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08 10 11 14 Finance, Accounting and CorpORATE Governance Chair of Financial Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chair of Accounting and Auditing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Center for Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sparkassen-Finanzgruppe Junior Professorship in M&A of Small- and Midsized Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 18 22 24 ECONOMICS AND REGULATION Chair of Economic and Information Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Chair of Microeconomics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Center for Health Care Management and Regulation . . . . . . . . . . . . . . . . . . . . . 28 SUSTAINABILITY AND COMPETITIVENESS SVI-Endowed Chair of Marketing, esp. E-Commerce and Cross-Media Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Heinz Nixdorf Chair of IT-based Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sparkassen-Finanzgruppe Chair of Macroeconomics . . . . . . . . . . . . . . . . . . . . Dr. Werner Jackstädt Chair of Economic and Business Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 33 36 In line with its innovate125 Future Concept, HHL has dedicated itself to educating and training responsible, entrepreneurially-minded leaders for the global economy. Excellence in research, teaching and knowledge transfer represent crucial prerequisites for our work. HHL continues to expand its faculty and the international visibility of its research efforts. To be able to meet the urgent societal challenges in the fields of healthcare, energy, sustainability and demography even more effectively, the faculty counters the ongoing trend of isolated research in the various sub-disciplines of business administration with an increased exchange amongst these sub-disciplines as well as tighter inter- and transdisciplinary crosslinking. For this purpose, the faculty chose a topic-based group structure targeting effective, responsible and entrepreneurial decisions in companies and founded an overall cross-group Center for Advanced Studies in Management (CASiM) to conduct its research in the fields of business administration and economics in a holistic environment. As reflected in the industry structure of the alumni network, HHL is closely connected with the core areas of business administration – strategy, finance and accounting as well as innovation and entrepreneurship. Consequently, the school is continuing to develop into an ideal research partner for society’s central fields of the future – healthcare, energy, mobility, resource efficiency, societal and demographic change – through its topical focal points sustainability and competitiveness as well as economics and regulation. With this significant expansion of the faculty, HHL is also increasing its critical research mass in the sub-disciplines as well as for the comprehensive topics while strengthening its connection to excellent research partners in regional and international research associations at the same time. In doing so, the schools uses the opportunities of internationalization, diversity and interdisciplinarity arising from the work of the faculty in a goal-oriented manner. The new recruits in the fields of business psychology, healthcare and law of business administration attest to this fact just like the growing number of professors and junior researchers with an international background. 39 INNOVATION AND ENTREPRENEURSHIP Stiftungsfonds Deutsche Bank Chair of Innovation Management and Entrepreneurship . . . . . . . . . . . . . . . . . . . . . . . 42 Schumpeter Junior Professorship for Entrepreneurship and Technology Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Center for Leading Innovation & Cooperation (Clic) . . . . . . . . . . . . . . . . . . . . . 48 Publications and Conference Presentations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Imprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 In light of the dynamic development of HHL’s research activities related human resources as well as organization, expertise and topics, the Research Report offers an overview of results achieved during the period under report as well as new and planned research projects. It therefore also represents an invitation to our distinguished readers to join us in open and trusting cooperation. With this aim in view, I hope you will find the read an enjoyable and inspiring experience. Yours, Prof. Dr. Andreas Pinkwart Dean of HHL Leipzig Graduate School of Management “In line with its innovate125 Future Concept, HHL has dedicated itself to educating and training responsible, entrepreneurially-minded leaders for the global economy. Excellence in research, teaching and knowledge transfer represent crucial prerequisites for our work.” 4 HHL RESEARCH REPORT 2014 HHL RESEARCH REPORT 2014 5 innovate125 – HHL Targeting Top 10 in Europe Since its foundation in 1898, HHL has proven to be a driving force for innovation: 1898, and it was the first business school in the German speaking world to pave the way for the academic training of merchants. Upon its re-establishment in 1992, the international o rientation of business administration within the globalization of the German economy was the focus of its attention. HHL is one of the pioneers in Germany, teaching all programs in English since the mid-1990s. Long before the financial crisis, HHL was one of the first business schools to focus on the conditions for responsible sustainable leader­ship. HHL now responds to the growing complexity of leadership through its concept for the future, increasing awareness for the whole issue and expanding the dimensions of effectiveness and responsibility, aided by the perspectives of innovation and entrepreneurial leadership. With our Future Concept innovate 125 we are taking a glimpse at the year 2023, when HHL will celebrate its 125th anni­ versary. By then, HHL wants to have moved up into the league of the top 10 graduate schools in Europe with its significant M.Sc., MBA and Executive programs as well as its well-structured doctoral program. To achieve this, great effort are made to realign the content and structure of this university. HHL organizes its research and teaching activities in topic-related groups to consolidate its strengths and be able to profile new focal points. In relation to the pressing issues of modern leadership, the faculty is composed of the following fields: Strategic & International Management; Finance, Accounting & Corporate Gov­er­nance; Economics & Regulation; Sus­ tainability & Competitiveness as well as Innovation & Entrepreneurship. The cross-faculty center established at HHL to ensure the cross-linking and profiling of research, teaching and knowledge transfer. Firstly, HHL’s new Center for Advanced Studies in Manage­ ment (CASiM) deals with basic questions of business administration in the 21st century in close cooperation with the five research groups and HHL’s doctoral program. The research program focuses i.e. on the role of trust within and between companies as well as the trust in innovation. The planned Center for Entrepreneurial and Innovative Manage­ment (CEIM) will bundle the individual groups’ expertise in innovative entrepreneurship in existing companies, companies established by merger or start-up businesses. With this, HHL seeks to establish itself as one of the leading entrepreneurial universities in Europe. The content-related advanced development and expansion is accompanied by a further growth of the faculty and a quality-oriented increase in the number of students. New programs are to roughly double the number of students and faculty members in the following five years. This will allow HHL to obtain additional international accreditations and to be included in further rankings. This growth is to involve a further inter­ nationalization of the faculty as well as an increase in the number of women in the faculty, the student community and the HHL bodies. In the past years, the proportion of international faculty members rose from 10 to over 25 percent. HHL wants to fund its growth by strengthening its self-financing power from tuition fees, third-party research funding, the systematic expansion of endowment chairs and the capital increase of the Kramer-Foundation, which is one of HHL’s three non-profit associations. HHL organizes its research and teaching activi­­ties in topic-related groups to consolidate its strengths and be able to profile new focal points. From left to right: Prof. Dr. Andreas Pinkwart, Prof. Dr. Robert G. Hansen, Prof. Dr. Holger Burckhart, Prof. Dr. Michael Czinkota “The strategy of more in-depth research through lateral structures correlates with HHL’s size and represents an appropriate response to the complexity of contemporary and future issues.” Prof. Dr. Holger Burckhart “HHL’s Scientific Strategy is Equally Innovative and Pragmatic” How do external scientists see HHL’s research strategy and activities? The first meeting of the Scientific Advisory Board took place in summer 2011. The body is to recommend procedures for the strategic orientation of HHL on a regular basis. Renowned experts such as Professor Holger Burckhart (Rector of the University of Siegen), Professor Michael Czinkota (Associate Professor of International Business and Marketing at Georgetown McDonough School of Business, Washington D.C., and Professor Emeritus of the University of Birmingham) and Professor Robert G. Hansen (Senior Associate Dean of Tuck School of Business at Dartmouth) comment. How would you evaluate the progress of the scientific strategy as well as the Future Concept innovate125 of HHL? idea and will contribute to further scholarly progress, especially in collaborations that might not have otherwise occurred. Prof. Dr. Holger Burckhart: Both the strategy and concept are equally innovative and pragmatic. The strategy of more in-depth research through lateral structures correlates with HHL’s size and represents an appropriate response to the complexity of contemporary and future issues. The innovate125 Future Concept will continue to distinguish HHL’s position in the competition for the best people and places in a significant manner, i.e. give the school a clear profile in research, teaching and social commitment. Prof. Dr. Michael Czinkota: The progress in the scientific strategy has been substantial. The faculty team as well as the student body realize that research and its dissemination in strong outlets is crucial to both the learning process and the public positioning of HHL. Prof. Dr. Robert G. Hansen: The progress of HHL’s strategy is quite spectacular. Prestige of a school will to a great extent follow the success of its faculty, and HHL under Dean Pinkwart the faculty is getting even better than it was before. The reorganization of the faculty was a very good What do you consider the most innovative aspects of HHL’s research activities? Prof. Dr. Holger Burckhart: In order to meet the highest standards established by the competence of the colleagues and the administration as well as the diversity among the students, the departments will surely stand out in the community with the interlinking of the topics they choose to examine. Prof. Dr. Michael Czinkota: The most innovative aspects of HHL’s research activities is the breaking out of silos and crossing of established academic area boxes. The resulting interdisciplinary work lets researchers and users of research feel comfortable with the scope of the issues addressed. Rather than expecting problems to manifest themselves in a narrowly defined case study format, those exposed to HHL research are able to understand the linkage between issues and the simultaneity of analysis and change. Prof. Dr. Robert G. Hansen: I believe that CASIM, the Center for Advanced Studies in Management, is very exciting. The work on trust in firms and markets could be pathbreaking and builds on HHLs excellence in the area of business ethics. Marketing is also an area that HHL is known for. Considering HHL’s mission statement: What in your opinion should be further strengthened regarding HHL’s academic work? Prof. Dr. Holger Burckhart: I consider responsibility to be the overriding theme to all elements of the mission statement. This includes inspiring, evolving and developing equally the sensibilities, strategies and problem areas. Prof. Dr. Michael Czinkota: HHL has reflected early on in its work the need for ethics, responsibility and integrity. It needs to continue this building of bridges between academia and practice, letting participants know that indeed, all business decisions are personal and local – no matter how distant the implementation appears. By recognizing and sponsoring a lifelong support network, HHL also ensures that its graduates keep in touch and are kept in close proximity to further improvements, innovations and insights, thus assisting the ongoing future leadership of the HHL team. Prof. Dr. Robert G. Hansen: The best educational experience is to have a professor who is on the frontier of their scholarly field and who also loves to communicate their ideas to students. HHL will do well by continuing to make that kind of experience an every day one for its students. Center for Advanced Studies in Management 7 6 HHL RESEARCH REPORT 2014 Executive Board of CASiM: Prof. Dr. Heribert Meffert, Prof. Dr. Ralf Reichwald, Prof. Dr. Andreas Pinkwart, Prof. Dr. Horst Albach (from left to right) Doctoral Projects at CASiM Graduate School “Two decades of Diversity Mana­ gement and Inclusion in South African firms and its effects on decision-making processes by Transformation Managers.” by Fundiswa Ndaba Center for Advanced Studies in Management (CASiM) CASiM Establishes Graduate School and Strengthens its Network The socio-economic systems of today are subject to substantial changes, primarily driven by globalization, technological advancement, and demographic transition. These changes are expected to offer numerous opportunities but also to pose great challenges for the societies and economies of developing and developed countries. The Center for Advanced Studies in Management (CASiM) is an interdisciplinary research center established at HHL Leipzig Graduate School of Management to investigate the opportunities and economic challenges of the 21st century. Its research program embraces four intersecting areas: the role of trust in business economics, change management, health care economics and management, and urban dynamics (see graphic). The research mission of CASiM is based on a holistic approach in which all branches of business economics represented at HHL and partner institutions are bundled. Since its foundation in summer 2012, the research center – led by outstanding scholars Prof. Dr. Horst Albach, Prof. Dr. Heribert Meffert, Prof. Dr. Andreas Pinkwart, and Prof. Dr. Ralf Reichwald – has been enjoying steady growth. In addition to its research on pressing economic issues, CASiM organizes conferences and prepares scientific publications. 2014 is titled “Boundaryless Hospital” and will be devoted to health care management and the hospital of the future. In contrast, the conference planned for year 2015 – when Leipzig will be celebrating the 1000th anniversary of its endowment with city and market privileges – will deal with urban dynamics and focus on cities and firms in global competition. The annual CASiM conferences serve as a platform for a trans-disciplinary dialog between academic community and practitioners about the challenges of business economics of today. After the successful conference on The Role of Trust in Business Economics in 2012, the second annual conference was held in 2013; it was devoted to an academic dialog about change management in firms and markets and attracted numerous distinguished scholars and practitioners. The CASiM Conference In connection with its conferences, CASiM initiated several publication projects with the objective of making the research results available to the general public and facilitating knowledge transfer between academia and business practice. In the pipeline are publications on the role of trust in economic change (with Schmalenbach Business Review) and an anthology on change management in firms and markets (with Springer Gabler). In April 2013, the CASiM Graduate School started its activity with the enrollment of the first doctoral students, Ms. Fundiswa Ndaba from South Africa and Ms. Linh Nguyen from Vietnam. The doctoral students at CASiM enjoy two privileges: First, they have the unique opportunity to do research with the members of the Executive Board of CASiM and the outstanding HHL faculty. Second, every doctoral candidate at CASiM receives a three-year scholarship sponsored by the Friede Springer Foundation. On a visit to HHL in June 2013, Friede Springer was impressed by the research activities at CASiM on fundamental issues such as trust in business or change management. This visit reinforced her opinion that investment in academic excellence at HHL pays off. Role of Trust in Firms and with their Stakeholders Change Management in Firms and Markets Urban Dynamics: Cities and Firms in Global Competition Health Care Economics and Management of Health Care Institutions Research focus of CASiM: Business Administration for the 21st Century South Africa has changed dramatically over the last two decades. During this transition, equal rights for all citizens replaced the discriminatory laws and practices of the old Apartheid government. New laws and regulations enabled more citizens to freely part take in economic activities and firms to (re-)enter a global marketplace. Effective change management became imperative for survival and growth. Ms. Ndaba’s doctoral project is devoted to the study of change processes and their management in South African firms in the last two decades. In particular, she will investigate the transformation of the workplace, diversity and inclusion management, and the decision-making processes. June 25, 2013: Friede Springer (center) met the two research associates, Fundiswa Ndaba (left), a 29-year-old native of South Africa and Linh Nguyen (right), a 26-yearold from Vietnam. “The Dynamics and Performance Implications of Trust in Strategic Alliances.” by Linh Nguyen Ms. Nguyen’s doctoral project is devoted to the study of the role of trust in inter-organizational relationships. She will investigate the emergence and embodiment of trust in an international alliances and its performance implications in the cross-cultural context. The project aims to advance both theoretical and empirical knowledge bases on trust and to inform companies about their roles in aligning trust and expectations with their counterparts in creating a sustainable cooperative relationship. Interdisciplinary and International Board of CASiM The Executive Board of CASiM is advised by a group of fourteen outstanding researchers and business practitioners who take an active part in shaping the research agenda of the center and who also facilitate its effective realization. CASiM’s claim to interdisciplinarity and internationality finds its reflection in the constellation of the scientific board. Almost half of its members represent disciplines outside economics and management sciences. Moreover, half of its members hold positions at international research institutions or in leading multinational corporations. Besides its strong business economics core, the CASiM Board’s expertise also includes medicine, law and mathematics. CASiM Conference 2014 “Boundaryless Hospital” Demographic transition poses great challenges for health care systems in industrialized nations. The growing demand for medical care by aging populations, faulty diagnoses and inappropriate medical treatments caused by overworked and undertrained personnel combine to increase health care costs substantially. Pharmaceutical companies competing in international markets are subject to diverse legal frameworks and are increasingly confronted with complex ethical issues. On the other hand, technological advancements provide great opportunities for efficiency improvements in health care systems. CASiM will devote its next annual conference, “Boundaryless Hospital – Rethink and Redefine Health Care Management”, to academic exchange on the challenges and opportunities facing health care systems, and to conceivable contributions by business economics to addressing them. The academic conference will take a management perspective on the hospital and the pharmaceutical company of the future. The focus will be on novel chains of value creation, efficiency and quality management as well as electronic health care. The conference will take place on June 11-12, 2014 in Leipzig. For more information visit hhl.de/casim-conference-2014 Advisory Board Dr. Jürgen Behrend CEO at Hella KGaA Hueck & Co. Prof. Dr. Christian Berger Chair for Civil Law and Copyright Law, Dean of the Law Faculty at Leipzig University Prof. John Bessant Ph.D. Director of Research and Professor of Entrepreneurship and Innovation at the University of Exeter Business School, AIM Senior Fellow, UK Prof. Dr. med. Frank Emmrich Director of the Institute for Clinical Immunology at Leipzig University Prof. Thomas P. Gehrig Ph.D. Vice-Dean of the Faculty of Business, Econonomics and Statistics, Department of Finance, University of Vienna, Austria Prof. Dr. Dietmar Harhoff Director of the Institute for Innovation Research, Technology Management and Entrepreneurship, Ludwig-MaximiliansUniversität München Prof. Dr. Jürgen Jost Director of the Max Planck Institute for Mathematics in the Sciences, Leipzig Prof. Pierfrancesco La Mura Ph.D. Chair of Economics and Information Systems, HHL Leipzig Graduate School of Management, Leipzig Prof. Dr. Peter Letmathe Chair for Management Accounting, RWTH Aachen University Prof. Peter McKiernan Ph.D. Professor of Management, University of Strathclyde, Glasgow, UK Edouardo Montes Chairman of Asociación Española de la Industria Eléctrica (UNESA), Madrid, Spain Prof. Dr. Karl-Heinz Paqué former Minister of Finance in SaxonyAnhalt, Dean of the Faculty of Economics and Management, Chair of International Economics, Otto-von-Guericke-University Magdeburg Dr. Andreas Penk President Oncology Europe and CEO of Pfizer Germany Prof. Anne Sigismund Huff Ph.D. Academic Director of the Center for Leading Innovation and Communication (CLIC) at HHL Leipzig Graduate School of Management, Leipzig Center supporter Friede Springer Foundation Executive Board _Prof. Dr. Dr. h.c. mult. Horst Albach, Professor Emeritus, Humboldt Universität of Berlin _Prof. Dr. Dr. h.c. mult. Heribert Meffert, Professor Emeritus and Director Emeritus of the Marketing Center Münster at the University of Münster _Prof. Dr. Andreas Pinkwart, Dean of HHL and Chair Holder of the Stiftungs fonds Deutsche Bank Chair of Innovation Management and Entrepreneurship at HHL _Prof. Dr. Prof. h.c. Dr. h.c. Ralf Reich wald, Professor Emeritus of Excellence, Technische Universität München, and Academic Director of the research center CLIC at HHL Contact hhl.de/casim casim@hhl.de 8 HHL RESEARCH REPORT 2014 Strategic and international Management 9 Dr. Ing. h.c. F. Porsche AG Chair of Strategic Management and Family Business The Family Firm as a Focus of Research “Buyouts in Family Firms” How can private equity companies successfully manage acquired family firms? This question is the basis of an article addressing family firm succession via sale to a private equity company. During the investment period, private equity companies typically try to increase the value of their portfolio company through active involvement in its management. The results of this study are of great practical importance: They show that, based on the resource-based view and family systems theory, such a behavior will be unsuccessful if the portfolio company is a former family-owned firm. The study empirically tests our hypotheses on a sample of 118 European family firm buyouts and find support for our argumentation. It adds to family firm succession research by highlighting that acquirers unable to utilize the specific resources and competencies of a family firm will not be able to have a positive impact on its performance. It also adds to literature on private equity as it shows that private equity companies need to take a differentiated approach with their value-adding activities when they invest in a family firm. Transfer of Research Activities into Practice Ph.D. Colloquium on Family Firm Research The Porsche AG Chair of Strategic Management and Family Business mentors a “Family Business Network” (FBN). Targeting HHL students with a family business background, the FBN aims to facilitate experience exchange and provide a platform for discussing current topics and challenges. At the beginning of September, the first EURAM-sponsored “HHL-Uni Marburg Early Ph.D Colloquium on Family Firm Research” took place at HHL, jointly organized by the Dr. Ing. h.c. F. Porsche AG Chair of Strategic Management and Family Business (HHL) and the Chair of Strategic and International Management (University of Marburg). The research colloquium (see picture below) addressed doctoral students at an early stage of their dissertation. It was designed to provide both a basic theoretical introduction to academic writing and a discussion of the participants’ own research projects, which they outlined in individual presentations. Students received concrete and constructive feedback on their current research project from both professors and their fellow doctoral students. Hence, this highly interactive format not only enabled the doctoral students to improve their research skills but also to network with other researchers. With the “Venture Capital Club”, over 20 students have shown their interest in the assessment of business models and on the dynamics of early-stage financing. The first sessions included an introduction into the venture capital model from the Chair and the discussion of real-life investment proposals from different start-up companies. Workshops with investors and company visits together with the “mother initiative” accelerate@hhl will follow. In cooperation with the Friends of HHL e.V., the chair actively engages in the building up of a HHL alumni business angel network. “Examining the familiness construct: Antecedents and performance effects of employee orientation” Prof. Dr. Stephan Stubner “As Family-owned firms are a corner­ stone of every economy research in this field is important.” Prof. Dr. Stephan Stubner The phenomena surrounding familyowned firms are one of the research priorities of the Porsche AG Chair of Strategic Management and Family Business. The research includes questions about distinctive success factors and differences from non-family-owned firms but also discipline-spanning topics like private equity in family firms and system theoretical considerations about leadership and organizational identity. Although family-owned firms are one of the cornerstones of every economy and many of them have existed for decades or even centuries, academics have only very recently started to closer consider them as research objects. Family firms are often secretive, data availability is scarce, and many questions can only be answered through the integration of different research streams. Also, family firms are different due to the interaction of two seemingly distinct systems – the family and the business system – which is held to be at the root of the uniqueness of family firms. Nevertheless, since the late 1970s, a growing community of researchers has taken on the quest of generating a better understanding on family firms. In Germany this led, for example, to the establishment of a network of German-speaking family firm researchers only a few years ago. Prof. Dr. Stephan Stubner, the holder of the Porsche AG Chair, has actively been publishing on family firms since 2008. Among his recent publications is a paper on private equity buyouts in family firms and a paper on familiness which was presented at a leading family firm conference. This paper, presented at the 13th Annual IFERA World Family Business Research Conference, contributes to the clarification and examination of the “familiness” construct by focusing on the antecedents and performance effects of employee orientation in family firms. We suggest that the intention for trans-generational control motivates family firms to adopt particularly strong employee orientation, leading to an enhancement of human capital resources. We further argue that this stronger employee orientation does not automatically contribute to performance advantages in family firms. Rather, positive performance effects results only if human capital resources are also managed more effectively, i.e. if they are directed toward enhancing the customer orientation of the firm. An empirical investigation involving 270 German family-owned firms supports our hypotheses. “Building up and deploying human capital resources strengthen transgenerational sustainability in family firms.” Prof. Dr. Stephan Stubner Dr. Ing. h.c. F. Porsche AG Chair of Strategic Mana­ge­­ ment and Family Business CHAIR DONOR Dr. Ing. h.c. F. Porsche AG Chair Holder Prof. Dr. Stephan Stubner Core Competencies / Research Interests _The role and impact of strategy and (scenario-)planning in organizations _The role of boards in family firms and start-ups _Familiness in family firms _Private equity in family firms Contact hhl.de/strategy 10 HHL RESEARCH REPORT 2014 Strategic and international Management 11 HHL CENTER FOR STRATEGY AND SCENARIO PLANNING “Scenario-based Strategic Planning – Developing Strategies in an Uncertain World” Acadamic Directors: Prof. Dr. Torsten Wulf (left) and Prof. Dr. Burkhard Schwenker (right) In a world characterized by increasing complexity and volatility, managers must be able to adapt their strategies to changing environments. Traditional methods of strategic management often fail in this context. Therefore, the HHL Center for Strategy and Scenario Planning and Roland Berger Strategy Consultants have developed and presented an innovative concept of scenario planning which is designed to serve as a framework for strategic management in this age of uncertainty. “Scenario planning makes it easier to manage a business and is therefore a key tool for decision makers,” explains Prof. Dr. Burkhard Schwenker, CEO of Roland Berger Strategy Consultants. He is publishing the book together with Prof. Dr. Torsten Wulf from HHL’s Center for Strategy and Scenario Planning. Wulf says: “Working with scenarios makes a new quality of strategy possible, expands horizons in strategy development framework and increases room for strategic action.” Previous methods for scenario planning were complicated and very time-consuming. The new concept, however, is embedded in strategic planning and provides ideal tools for reducing complexity and making projects more efficient. 1. Managers need to understand the impact of uncertainty on planning and decision-making, as well as its consequences for strategic management in general. The authors take a closer look at core challenges facing strategic management in the 21st century. They identify uncertainty as a major issue and analyze its main determinants: volatility, complexity and ambiguity. The authors show how much more uncertain the world has become for managers today and point out the advantages as well as the limitations of traditional planning tools. Finally, they discuss different forecasting methodologies that help reduce uncertainty and assess the impact of potential changes. 2. Scenario-based planning provides a powerful methodological framework to account for uncertainty, volatility and complexity in the strategic management process. The book describes the HHL-Roland Berger approach to scenario-based strategic planning and its underlying concepts and ideas. The authors present the overall methodology and its benefits for the strategic management process, and also provide a blueprint for integrating it into existing planning processes. Managers are also provided with a set of six hands-on tools. The authors demonstrate how each tool is applied in practice, using a case study from the European airline industry. 3. Scenario planning can increase the quality of strategic decisions in an uncertain environment and lead to flexible strategies that counteract volatility. The book also shows how the approach affects decision-making quality and strategic flexibility. Scenario planning can help managers quickly reduce the negative effects of cognitive biases and cope with new developments. And thanks to its positive influence on the quality of decisions, scenario planning is also likely to improve overall business performance. Disruptive Scenario Planning: Center Publishes Article in Harvard Business Manager The Center for Strategy and Scenario Planning has published an article on the benefits of planning based on disruptive scenarios for decision making in the July issue of “Harvard Business Manager”. The article, entitled “Mit Katastrophen planen” and co-authored by Prof. Dr. Torsten Wulf, Dr. Philip Meissner and Sabine Busse, presents how a disruptive scenario planning approach is applied at Alstom, the power and transportation company. The paper shows the detailed steps of the approach and highlights the method’s benefits. The article also takes a cognitive perspective on decision making and presents how disruptive scenario planning can help overcome biased judgment and improve decisions. The results suggest that the reduction of biases based on effective planning can improve ROI by up to seven percent. HHL Center for Strategy and Scenario Planning CENTER SUPPORTER Roland Berger Strategy Consultants Academic Directors Prof. Dr. Torsten Wulf Prof. Dr. Burkhard Schwenker Core Competencies / Research Interests _ Strategic Decision Making and Strategic Planning _ Scenario-based Planning _ Strategic Communication Contact scenarioplanning.eu ICCR Chair of Corporate Responsibility and Governance Can Leaders be Effective Without Emotional Intelligence? During uncertainity and paradigm shift, EI competencies are essential for leaders to emotionally connect, inspire a shared vision and take people along towards the mission. A leader is expected to emotionally connect with people through communication articulating a sense of purpose, generating positive energy and providing a positive direction. The global economy was jolted by winds of economic turbulence in 2008 resulting in global meltdown impacting economies, organizations, tasks and people, and bringing to light multiple facets of unprecedented change. This coupled with major environmental changes, paradigm shifts in industry, shifts in HR trends, product lifecycles and technological innovations has changed the landscape in which organizations operate. This has called for organizational transformation and innovation steered by a leader. But the challenge to leaders is how to be effective in the face of discomfort, dissatisfaction and increased stress among people, when there is need to challenge a status quo which is no longer relevant, and to search for options and opportunities to innovate, grow and improve. This is where emotional intelligence (EI) competencies are needed to inspire a shared vision to take people along towards realizing the mission. EI competencies are a set of skills, traits and behaviour which lead to greater effectiveness at workplace. A leadership model would be incomplete without emotional intelligence competencies. My empirical research on Indian leaders from manufacturing Role of IQ & EQ in professional success Prof. Radha R. Sharma, Ph.D. and service industry engaged in organizational transformation validates the above and confirms that certain EI competencies are essential for transformational leadership. It can also be said that EI competencies can predict transformational leadership styles; the possibility of identification of talent for leadership roles. This implies that people with specific EI competencies could be selected for a leadership role particularly when an organisation needs to go through change. There are emerging leadership typologies based on EI competencies, and some of my Ph.D. scholars are working on these. The evolution of emotional intelligence can be traced back to ancient Indian literature, the Vedas (Goparaj & Sharma, 2009). In the seventeenth century, Tom­ kins (1962) opined, “Reason without affect (emotion) would be impotent, affect without reason would be blind”. In the light of growing dissatisfaction with viewing intelligence as a purely cognitive construct, a move began to explore non-cognitive factors, which, to a large extent, accounted for explaining as well as predicting performance (Sharma, 1977, 79, 81). Various approaches were adopted by researchers in the West (Mayer & Salovey, Bar On, Goleman & Boyatzis) to study the nature of EI. Recent research reveals that emotional intelligence is a prerequisite for successful leadership (Goleman, Boyatzis as it contributes to the effectiveness of a leader in developing collective goals, creating optimism and generating enthusiasm, trust, and in encouraging flexibility in decision-making and change processes. In a climate of uncertainty, fear and anxiety, EI-based leadership assumes great significance for the effectiveness of the organization. The industrial situation in some countries reveals that when leaders are not sensitive to the needs of customers, employees and other stakeholders, the business and the organisation suffer. Another advantage of EI is that it acts as a mediator, prevents executive burnout and promotes well-being (Sharma, 2006). This observation is based on my empirical research on executives from manufacturing and service industry supported by the World Health Organization (WHO) and the Indian Ministry of Health. The phenomenon of burnout is garnering the attention of researchers. I (Sharma, 2011) have studied the role of EI in mental well-being and have found significant results. Thus EI competencis are panacea for leaders. emeraldinsight.com/1352-7606.htm mdi.ac.in/faculty/detail/58-radha-rsharma/ 12 HHL RESEARCH REPORT 2014 HHL RESEARCH REPORT 2014 13 Indian Ethos as Humanistic Management Principles: A Case Study The case study was undertaken by Prof. Radha R. Sharma and Shallini Taneja at Management Development Institute, India as a part of a global project on ‘World Humanism’ published as an edited volume as Humanism in Business Series by Palgrave Macmillan, USA, 2013, pp. 178-193. Indian ethos in management draws heavily from Vedantic wisdom. Rigveda (the ancient Indian text) posits that new ideas can be generated through interaction, assimilation and transformation processes. As Indian culture has evolved through confluence of various cultures due to the historical developments during its long history; there has been a process of ‘integrative Indigenization’ (Sinha, 1992). Indian tradition adopts a holistic view of life following certain principles which have been well documented in the ancient texts. These principles are adopted to enhance the quality of life. One principle applied to business is called ‘Vanijya ethics’ (business ethics). According to this business in India is not considered purely an economic activity but it also includes ‘loksangraha’ (social welfare, society’s benefit and development). Similarly there are other principles which are supposed to be adhered to. The case study critically analyses application of some of these principles in a family business organisation, the Shreyans Paper Mills, one of the largest agro-based paper mills in North India. It comes to the conclusion that the company has built its brand and has achieved sustainable business growth by following Indian ethos and principles of humanistic management. us.macmillan.com/worldhumanism/ShibanKhan palgrave.com/PDFs/9780230300552.pdf Study: Building the Women Directorship Pipeline in India Prof. Vasanthi Srinivasan , Ph.D. During her stay at HHL (2012-2013), Professor Vasanthi Srinivasan was involved in completing the research that had been initiated at the Indian Institute of Manage­ment Bangalore (IIMB). The study “Building the Women Direc­ torship Pipeline in India” by Vasanthi Srinivasan and Rejie George was a part of the NSE-IIMB corporate governance initiative. Women constitute 48 percent of the population of India, yet their presence on boards of companies has not been substantial. This paper attempts to define the pathways available to women on Indian Boards. A qualitative research methodology with 15 in-depth interviews with directors was adopted to study the phenomena. The findings indicate that while the identification of women directors is largely a non-structured idiosyncratic process, social capital which includes the individual’s network ties and reputation is a critical aspect aiding director identification. We also find the role of the chairperson to be critical in facilitating participation of women directors on boards and that organizational characteristics and co-directors credibility are important considerations in the decision to join the board. The policy implications include the need for more structured approaches to identification, effective director assessment processes, and for multi-stakeholder intervention to build the pipeline of women directors for the future. nse-india.com/research/content/ res_iimb_2.pdf (2) Awareness on Good Manufacturing Practices (GMP) was found to be high among firms, but compliance with relevant regulation was rather weak. (3) Gaining attention of their senior management and bringing environmental issues in the board-room discussions was critical for creating long term support to environmental issues by the companies. The three key issues pertaining to environment in the private healthcare were: (1) Awareness on Bio-Medical Waste (BMW) regulation was high among hospitals but reporting on BMW was very weak. (2) Different states adopted different models for treatment disposal of BMW. (3) State pollution control boards are expected to play several roles – enforcement, training, monitoring and these roles create conflict in execution. Some of the key issues pertaining to marketing and distribution in the Pharma sector were as follows: (1) There is a widespread prevalence of sponsorship of events for doctors. It appears that this practice is endemic to the industry. While the conflict of interest is apparent, the extent to which the practice has direct bearing on the doctors’ willingness to prescribe the drug, requires further investigation. If all the companies are engaged in the practice, then the criteria used by the doctor to recommend a particular brand are unclear? (2) Awareness and adherence to the voluntary codes like the Uniform Code of Pharmaceuticals Marketing Practices (UCPMP) 2011 is low across the states. Rethinking Business Responsibility in India A Review of Pharmaceutical & Private Healthcare Sectors Vikas Bantham, Rijit Sengupta & Vasanthi Srinivasan This study on the interplay between business regulation and responsible business conduct is an attempt to understand the roles the various stakeholders need to play in promotion of responsible business practices in the pharmaceutical and private healthcare sectors in India. Business regulation is often understood in the narrow sense as public regulation only. However, for the purpose of the study a more holistic understanding of business regulation comprising of self-regulation by firms and co-regulation by industry associations was used. The study focused on two aspects of business conduct namely environmental impact and marketing and distribution of products in the sectors. The multi method field study was carried out in four states in India which had distinctly differently institutional structures and regulatory capacity. In the case of the pharmaceutical sector, three key findings that emerged were: (1) There exists a high variation across states in terms of the infrastructure available at the firm- level and the state level to manage and enforce the environmental regulations “While reforms in the regulatory environment are vital and urgent, other conditions for creating a culture of responsible business behaviour are equally important.” Prof. Vasanthi Srinivasan, Ph.D. (3) The regulatory gaps and the co-ordination across different enforcement agencies both at the state and the centre is a challenge in fostering business conduct. The three key issues that emerged in the marketing and distribution for the Health care sector analysis are: (1) The awareness of the Medical Council of India (MCI) guidelines is quite high, Masters Theses Daniel Zinner Global mobility is an emerging field in the context of global business. While what constitutes global mobility is being shaped at the practice level, the academic literature in the field is still nascent. In this thesis, Zinner examines the requirements and competencies for professionals in this field. The multi-disciplinary field of Global Mobility cuts across the disciplines of law, finance, human resources and logistics and therefore requires unique professional development. The need of the hour is for supra-national and nonprofit organizations to cooperate with academic institutions to build a practical global mobility master program that meets the need of a globalized world. Aparna Kumar Multinational corporations are increasingly seeking to leverage human resource management models that allow for adaptation at the subsidiary level, and also provide a source of competitive advantage for organizations in the global and local markets. In her master thesis, Aparna Kumar addresses this issue by exploring the mechanism through which a corporate headquarters interacts with and transfers talent management practices to its foreign subsidiaries. Adopting the single case study method, the research reveals that overall corporate HR is motivated to reduce complexity through globalizing and standardizing TM practices; however, it still needs to hybridize to accommodate to foreign contexts. Thus, crossvergence is the favored manner of practice transfer because it allows the MNCs to be responsive to both the pressure for internal consistency and the demand for isomorphism with the local environment. but there is a lack of systematic and consistent in-house mechanisms to track adherence to these guidelines. (2) Understanding and application of principles of Rational use of Drugs (RuD) was weak. (3) Regulatory arrangement is ill-developed in case of marketing and distribution aspects. The findings of the study clearly show that while reforms in the regulatory environment of the two sectors are vital and urgent, other conditions for creating a culture of responsible business behaviour are equally important. It is evident that the pharmaceutical and healthcare sectors are complex and deeply embedded in the social systems with far reaching impact on the health of the people of India. There are several systems in these sectors interacting with each other – the Ministries (Centre and State), the Judiciary (laws and regulations), enforcement agencies (Central and State), the private and public sector pharma firms and hospitals, the diagnostic clinics and device providers, the drug manufacturers, the pharmacists, the drug distributors/traders, the BMW disposal agencies, the quality certification agencies, the global buyers in pharma and finally the consumer. Effective healthcare delivery requires both the private healthcare and pharmaceutical sectors to engage in a collaborative and mutually reinforcing manner. ICCR Chair of Corporate Responsibility and Governance Chair DONOR Indian Council for Cultural Relation Chair holder Prof. Radha R. Sharma, Ph.D. (from October 2013 onwards), Prof. Vasanthi Srinivasan, Ph.D. (from October 2012 until October 2013) Core Competencies / Research Interests _ Primal leadership _Change management and organizational transformation _Stress, executive burnout and well-being _Humanistic management _Gender diversity _Cross-cultural management _Diversity _Human resource management Contact hhl.de/corporate-responsibility 14 HHL RESEARCH REPORT 2014 Finance, Accounting and CorpORATE Governance 15 Alfried Krupp von Bohlen und Halbach Junior professorship CHAIR OF FINANCIAL MANAGEMENT Do International Top Managers Make a Difference? Inorganic Growth Strategies in Private Equity: Empirical Evidence on Add-On Acquisitions In current research projects, we investigate the impact of top management diversity and internationalization on company-level outcomes. A second major research area comprises the internationalization of German and Polish small and medium-sized enterprises. A recent study focuses on the link between top management internationalization and accounting quality. We explore the relationship between top management internationalization and earnings management, combining upper echelons perspectives with accounting research. Our objective is to see in how far top management internationalization mitigates the level of earnings management. By decomposing the top management team, our analysis is also designed to reveal whether and to what degree earnings management is attributable to the internationalization of two prominent members of the board – the CEO and the CFO. Using the four components of an internationalization index (nationality, international education, international work experience, and foreign mandates), we are also in search of the importance of different explanatory factors which can affect earnings management, and thus accounting quality. By addressing the above mentioned areas, our work shall advance existing research in several ways. First, our study takes an interdisciplinary stance and combines upper echelon perspectives, human capital theory and accounting research. Thus, it contributes to a growing body of literature on the managerial role in financial reporting processes. Second, our analysis wants to add empirical evidence with respect to the financial decision-making capabilities of two main decision makers in a top management team – the CEO and the CFO. In this, we are following scholars who highlight the importance of analyzing the role of top management subgroups and individual top managers within a company. Third, we provide a comprehensive view on the internationalization of top managers by drawing on four important dimensions to measure the overall internationalization profile of an individual. Internationalization of German and Polish SMEs The collapse of the Eastern European trading bloc and the breakup of the Soviet Union resulted in political and structural change in Central Eastern European countries. Poland’s accession to the European Union in 2004 created a new opportunity for Polish firms to expand on the internal EU market, but it also meant opening the domestic market to foreign competitors. The management of Polish firms had to face international competition and consequently, Polish top managers had to transform into managers with international skills. In our research, we investigate the internationalization motives, market entry modes, and competitive strategies of Polish firms. Furthermore, we shed light on the question, “What are the benefits of top management internationalization for Polish firms?” These research gaps need to be addressed, as empirical analyses highlight the crucial role of top managers and their international experience in firms’ internationalization processes and competitive strategies. The Alfried Krupp von Bohlen und Halbach Junior Professorship in International Management was founded in 2013 and focuses on maintaining and expanding German-Polish academic relations. The Junior Professorship also fosters regional and international partnerships. We collaborate with the Leipzigbased Fraunhofer MOEZ (Center for Central and Eastern Europe) to establish a network with stakeholders in the Central and Eastern European growth markets. “Our research highlights the crucial role of top managers and their interna­ tionalization experience.” Jun.-Prof. Dr. Tobias Dauth Alfried Krupp von Bohlen und Halbach Junior Professorship in International Management German academic network Polish academic network The Chair’s network Chair holder Alfried Krupp von Bohlen und Halbach Foundation Jun.-Prof. Dr. Tobias Dauth Research Interests _ Top Management Teams _German-Polish Relations _Corporate Governance _Internationalization of Small and Medium-Sized Firms Contact hhl.de/international-management Prof. Dr. Bernhard Schwetzler In a novel study, PhD students Benjamin Hammer, Alexander Knauer, Magnus Pflücke, in collaboration with Professor Bernhard Schwetzler, investigate inorganic growth strategies (by means of add-on acquisitions) of Private Equity (PE) firms. Until now, very few academic studies have focused on such inorganic growth strategies of PE-owned portfolio firms. Furthermore, existing studies were limited to single countries and entry-channels, or use relatively small data sets. Consequently, the study by HHL’s Chair of Financial Management aims to fill this gap. It represents the initial result of a longstanding research project and is the first systematic examination of inorganic growth strategies as a competitive factor in the PE industry. The study is based on one of the world’s largest PE databases comprising more than 9500 realized and unrealized PE investments and over 4900 add-on transactions conducted between 1997 and 2012. In contrast to other PE databases, the sample includes transcations made during the global financial crisis. “The study by the Chair of Financial Management not only turns the spotlight on the issue of addon acquisitions by PE portfolio companies, but also sets new standards in PE “As traditional value creation levers have lost their effectiveness, we expect inorganic growth in PE to become more relevant in the future.“ Prof. Dr. Bernhard Schwetzler research with regard to its data comprehensiveness,” says Alexander Knauer. Fierce competition and the fact that many corporations have already adopted mechanisms to reduce the agency costs of equity have led to a “commo­ ditization” of the business model: Today, traditional value creation levers, such as the financing of acquisitions with “cheap” debt as well as favorable entry and exit conditions, no longer suffice to generate attractive returns to investors. Since internal growth is also hard to achieve in times of saturated markets, external growth strategies become increasingly important as a possible lever for value creation. Against this background, the study provides several novel and thoughtprovo­king findings. First, it shows that add-on acquisitions have increased in importance over time and are highly concentrated among a few PE sponsors: only 12% of the PE sponsors in the sample realize 80% of the add-on transactions. Additionally, industry and timing matters: “Our study indicates that synergies are to be regarded as the central motive for these transactions. In 8 out of 10 deals, add-ons are conducted in the same industry as the PE portfolio company operates in,” says Magnus Pflücke. Also, these transactions are carried out towards the beginning of the holding period; some even take place directly after the buyout. “This indicates that PE sponsors attempt to realize the synergies already during the holding period,” Pflücke adds. Furthermore, the characteristics of deals and PE sponsor influence the probability of add-on transactions. Public-to-private and financial buyouts (e.g. secondary buyouts) as well as buyouts backed by large and successful PE 16 HHL RESEARCH REPORT 2014 sponsors systematically lead to more add-on transactions. The researchers also found that add-on transactions are generally subject to the same market cycles as underlying buyout transactions, although the number of add-on transactions dropped less during the global financial crisis. Finally, industry concentration plays a crucial role in determining the probability of add-on transactions. The study reveals that add-on strategies are not only significantly more prevalent in industries with lower concentration, but also in more concentrated industries, thus refuting the widespread assumption that so-called buy and build strategies tend to occur only in fragmented industries as a form of industry consolidation. Finance, Accounting and CorpORATE Governance 17 Take a Second Look at Secondaries Due to a tense IPO environment, a decline in public-to-private deal volume and a high return pressure, secondary buyouts are becoming increasingly important in the private equity (PE) market. However, transactions between two PE firms are viewed critically by commentators, who declare that all value creation levers will have already been realized by the first investor. In close cooperation with The Boston Consulting Group (BCG), the HHL Chair of Financial Management has reviewed this widely held opinion. Using one of the largest existing data sets of consecutive primary and secondary buyouts, the researchers find that secondary buyouts carry a comparably high value creation potential while being less volatile. Deal returns and operational improvements are comparable to the previously conducted primary buyouts. Mergers and acquisitions (M&A) especially seem to play a key role in value creation. Secondary buyouts that conduct intermediate add-on acquisitions outperform those which do not in terms of deal return and EBITDA growth. The researchers explain the higher returns of these “buy-and-build” secondaries as a consequence of the synergies and operational improvements that the M&A events generated. However, the research team of HHL and BCG points out that less than 30% of the PE companies in the sample engaged in intermediate M&A activities. While M&A regularly led to a rising EBITDAto-assets ratio, the sales-to-assets ratio declined. “We believe that data indicate that sales at those secondaries could have grown more strongly if their owners had more fully deployed the sales improvement levers available to them,” say authors Dr. Jens Kengelbach (BCG) and Prof. Bernhard Schwetzler (HHL). Finally, the HHL/BCG research project indicates that, contrary to the widely held opinion, not only secondary but also tertiary buyouts are a viable exit strategy for PE investors. HHL and BCG look back on many years of successful cooperation. BCG allows HHL students to gain valuable insights into practice in the context of guest speeches and seminars. The current study is the result of a deepening of the research cooperation between the HHL Chair of Financial Management and the Boston Consulting Group. “We are convinced that this first global and systematic overview of inorganic growth in PE bcgperspectives.com/content/articles/ transactions is of private_equity_value_creation_strategy_ extraordinary reletake_second_look_at_secondaries/ vance as it enhances the decision-making Influence of MAC Clauses on Offer Premia abilities of both the and the Cumulative Abnormal Return general and the The master thesis of MBA student “I was excited limited partners” Susanne Knoll (28) received the 2012 about the Leonardo says author Benjamin Hammer. “Our study helps explaining inorganic growth as an evidentially important driver of returns generated by PE firms, thus improving investors’, actors’ and the public’s understanding of the PE business model.” Author Prof. Bernhard Schwetzler concludes: “This study is the first step towards exploiting this unique and rich PE dataset. As data on PE are very scarce, the sample allows analysis of important research topics thus far untapped by academia; we believe this will allow the Chair to publish cutting edge research results in the next few years.” ssrn.com/abstract=2338115 Leonardo & Co. Award in the field of Mergers & Acquisitions (M&A). In her thesis, Ms. Knoll investigated the influence of so-called ‘Material Adverse Change’ clauses on the takeover premium and the cumulative abnormal return of the acquired company. Award because it showed me that my questions and findings are rele­ vant to people and practice.” Susanne Knoll Both on a national and an international level, MAC clauses are included in company takeover or acquisition contracts with increasing regularity. These agreements allow the acquirer of a company to withdraw from his offer without any compensation in the event of a welldefined scenario (loss of an important customer, drop in sales). Examining a data set of all German M&A transactions between 2002 and 2010, Ms. Knoll found a significant impact of MAC clauses on the cumulative abnormal return of the target company. Since her graduation from HHL in 2012 with a focus on Finance, Entrepreneur­ ship and Strategy, she has been focusing on the topic of M&A in her dissertation. In this field, her work is centering on contingencies in M&A contracts, especially MAC clauses, offers premia and cumulative abnormal returns. Additionally, she is concentrating on the valuation of pharmaceutical patents. Since 2004, Ms. Knoll has been employed by Daimler AG, where she currently works in the strategy department. CHAIR OF FINANCIAL MANAGEMENT Reviewing the Drivers of the socalled ‘Conglomerate Discount’ Does corporate diversification create or destroy shareholder wealth? This question, crucial for both academic research and practice, has been the subject of a long-lasting debate. Various studies show that, on average, conglomerates trade at a discount compared to standalone firms. Inefficient capital allocation due to agency conflicts between corporate managers and shareholders is generally considered the main driver behind this so-called “conglomerate discount”. However, recent research by the Chair of Financial Management comes to a different conclusion. Ph.D. students Christin Rudolph and Markus Brendel, in cooperation with Professor Schwetzler, wanted to assess in-depth the drivers behind the conglomerate discount. They were mainly reviewing agency conflicts as causes of the phenomenon. In his dissertation, Markus Brendel focuses on corporate governance; in detail, he examines the impact of ownership structures on corporate performance. This focus created the idea of starting a joint research project. “An intense cooperation allows us to study the sources of the conglomerate discount through an enriching combination of our research interests,” says Christin Rudolph, who focuses on the development of corporate diversification in her dissertation. Whereas diversified firms offer several benefits compared to standalone firms, including a higher debt capacity and internal capital markets, corporate managers tend to make inefficient capital allocation decisions. While following the traditional view that agency theory can be used to explain this phenomenon, Ms. Rudolph and Mr. Brendel also challenge the established assumption that only the manager vs. owner conflict needs to be taken into account. While a controlling shareholder can effectively monitor corporate managers and thus reduce opportunistic behavior, he can also use his position to extract private benefits at the expense of minority shareholders. “We therefore consider the extraction of private benefits and thus the conflict between majority and minority shareholders to constitute the key conflict of interests,” explains Markus Brendel. Accordingly, the two researchers wanted to determine – the conflict between outside shareholders and management, or the conflict between controlling and minority shareholders – is mainly responsible for the conglomerate discount. Using an innovative econometric method, the so-called OaxacaBlinder Decomposition, Christin Rudolph and Markus Brendel find that the conflict between controlling and minority shareholders can indeed be seen as the main driver of the conglomerate discount. “We explain this as the result of a lack of transparency due to a conglomerate’s high complexity which allows controlling shareholders to extract private benefits which can result in an inefficient allocation of resources,” says Christin Rudolph. The study adds to the highly relevant contributions to the understanding of the conglomerate discount made by the Chair of Financial Management. In another study, Christin Rudolph and Bernhard Schwetzler helped uncover measurement biases in the conglomerate discount and detected the impact of regulatory settings and market conditions on the valuation gap between diversified firms and stand-alones. ssrn.com/abstract=2202050 - XX % Business segment 3 Business segment 2 Imputed value of business segment 3 Imputed value of business segment 2 Business segment 1 Imputed value of business segment 1 Conglomerate firm value Standalone-based imputed firm value What is the so-called “conglomerate discount”? _“Conglomerate discount“ refers to the undervaluation of diversified firms caused by the perception that corporate diversification destroys shareholder wealth. _In academic literature, the discount is commonly derived by comparing a firm’s actual corporate value with the value of a matched portfolio of standalone firms. CHAIR OF FINANCIAL MANAGEMENT Chair Supporters _The Boston Consulting Group GmbH _Henkel AG & Co. KGaA _ValueTrust Chair holder Prof. Dr. Bernhard Schwetzler Core Competencies / Research Interests _ corporate valuation and corporate finance _ fairness opinions _ material adverse change (MAC) clauses in corporate transactions _ transaction currency and performance _ effects of debt financing in corporate valuation Contact hhl.de/finance Finance, Accounting and CorpORATE Governance 19 18 HHL RESEARCH REPORT 2014 CHAIR OF ACCOUNTING AND AUDITING Good Company Ranking 2013 – Sustainable Strategies Need a Sustainable Financial Basis “The financial performance of a firm is not the only goal, but without a solid financial basis all other goals are unlikely to be achieved.” Prof. Dr. Henning Zülch Following on from the previous Good Company Ranking conducted by Kirchhoff Consult AG, which was published in 2009, this year’s ranking has the goal of shedding light on how responsibly companies act in terms of their human resource policy, societal and ecological involvement and also with reference to their financial performance. The ranking can be regarded as a Corporate Social Responsibility (CSR) beauty contest involving the 70 largest European enterprises. These are assessed by a jury comprising academic researchers from four German universities, including HHL Leipzig Graduate School of Management, which joined the jury team this year. Firms are assessed via their annual reports, corporate websites and other types of disclosure. From now on, the Chair of Accounting and Auditing will be in charge of analyzing the financial strength and performance of firms. In the context of its research pillar focusing on performance reporting, the Chair investigates how responsibly firms deal with the capital supplied to them. Do financial ratios such as the Total Shareholder Return reflect investors’ trust, or are there indications of a discrepancy between what the management has promised and what was achieved? Prof. Dr. Henning Zülch Klaus Rainer Kirchhoff, CEO of Kirch­ hoff Consult AG, points out: “When publishing the results of a ranking, you may have two or three friends that are happy about their results. In contrast to that, numerous firms will exist that are not amused about the position they achieved in the ranking. Certainly a ranking always involves some degree of professional judgment. However, all parts of the assessment are based on academic research and evidence and are conducted in a transparent manner.” New books Weighting of Dimensions ■ 40% Performance (HHL) ■ 20% Society ■ 20% Human Resources ■ 20% Environment The assessment process is three-fold: First, firms are analyzed under the aspects of environment, human resources and society. Each aspect can contribute a maximum share of 20% to the total score. However, if firms do not achieve a minimum of half of the awardable points, they are sanctioned. Subsequently, the results of the financial performance perspective assessed by the team of Prof. Dr. Henning Zülch are added, contributing a maximum of 40%. harmonizing with a sustainable strategy entailing e.g. voluntary ecological contributions. The method of analyzing financial performance, i.e. the firm’s health and stability, combines elements from the areas of credit and investment analysis, subjects that students who choose “Financial Analysis” classes will be familiar with. The approach is again three-fold, comprising analyses of profitability, solvency and risk as well as growth and business outlook. In the course of extensive debates on the question “How to measure CSR?”, concerns have been raised about whether to include financial ratios into an overall assessment or not. These concerns reflect the opinion that a firm’s performance and its involvement in CSR activities are not linked but rather separate constructs. The reason that a weighting of 40% is placed on financial performance is straight-forward: It is a firm’s primary responsibility to ensure it has a solid financial basis. Only firms which are constantly able to pay back their debt and comply with the financial requirements set by their capital providers will – in the long run – be able to safeguard employment, make sustainable investments and care for the environment. Consequently, the corporate aim of realizing shareholder goals should not be seen as conflicting with but instead as The relevance of the nexus between business ethics and financial analyses is also highlighted in HHL working paper #112 “The Impact of Corporate Social Responsibility (CSR) and Financial Reporting Quality”, Zülch/Salewski (2012): The paper investigates the impact of Corporate Social Responsibility (CSR) on Financial Reporting Quality by examining the association between CSR and the degree of earnings management, among other things. The findings are somewhat surprising: Firms with good CSR are more likely to engage in earnings management and to report bad news in a less timely fashion. Consequently, the results are in contrast to parts of previous research on that topic and may thereby influence the overall perception of CSR, as the increasing trend toward CSR does not necessarily lead to real changes in corporations. Financial Performance Non-Financial Firms Profitability Financial Firms Return Analysis Margin Analysis Solvency and Risk Growth and Business Outlook Short Term Liquidity Asset Quality Long Term Solvency Capital and Funding 1-year Growth 5-year Growth Zülch/Hendler, Bilanzierung nach IFRS, 2nd edition Throughout the European Union, capital marketoriented firms are obliged to prepare their financial statements according to International Financial Reporting Standards (IFRS). Additionally, many other firms need to prepare their reports under IFRS as banks and busi­ness partners often require IFRS reporting. Since the IFRS regulations are fairly complex, not composed according to didactical requirements and - originally - only available in English, they provide a challenge for the day-to-day life of auditors, con­sultants, accounting students and other accountants. The textbook enables the reader to more easily comprehend IFRS since they are presented in a sound didactical manner. Apart from a basic introduction to IFRS in the context of the European Union and an overview of the aims and basic principles of IFRS reporting, the textbook focuses on the main positions included in IFRS financial statements. Also, special regulations, like those for deferred taxation, leasing, construction contracts and financial instruments are discussed. Moreover, each chapter begins with a summary of its core messages which provides the reader with a helpful overview. Practical examples enhance the understandability of the regulations. The second edition has been extended by adding a comprehensive chapter on group accounting according to IFRS. CHAIR OF ACCOUNTING AND AUDITING Chair Donor Leipzig Chamber of Industry and Commerce Chair Holder Prof. Dr. Henning Zülch Core competencies/ Research interest _consolidation _performance reporting _accounting in private firms _standard setting and enforcement Contact hhl.de/accounting 20 HHL RESEARCH REPORT 2014 Finance, Accounting and CorpORATE Governance 21 CHAIR OF ACCOUNTING AND AUDITING “Companies within a social market economy have to assume responsibility” Klaus Rainer Kirchhoff The Good Company Ranking (GCR) has been redesigned since its last publication in 2009. What are the major changes compared to the previous ranking? ranking criteria chosen include “hard financial” facts as well as “soft social responsibility” aspects. In addition to that, no other ranking on the market covers more than 70 of Europe’s most important enterprises. Klaus Rainer Kirchhoff: Compared to its previous edition, the Good Company Ranking 2013 is based on improved criteria. Additionally, this year’s jury included four independent experts and myself. Therefore each field of corporate responsibility we surveyed is represented by one expert. The fields included responsibility for employees, the environment and natural resources, for social concerns. Each of these fields contributed 20 per cent to the final result. The financial performance is given greater weighting and contributes 40 per cent. This is due to the fact that the members of the jury consider maintaining sustainable financial performance as the foremost duty of a company, as it lays the foundations for secure employment, allows capital expenditure and enables investors to receive an appropriate return. To what extent is the GCR different from other rankings? Klaus Rainer Kirchhoff: The Good Company Ranking is and always has been the only CSR ranking which is based on thorough scientific methods. In this context, the work of the expert members on the jury is crucial and I am glad that they are all established researchers from the best universities in the country. Furthermore, the Klaus Rainer Kirchhoff CEO of Kirchhoff Consult AG Why is HHL and the Chair of Accounting and Auditing an important strategic partner for Kirchhoff Consult AG? Klaus Rainer Kirchhoff: HHL Leipzig Graduate School of Management is not only Germany’s oldest business school, it also engages in CSR research itself. From a capital market perspective, Prof. Dr. Henning Zülch contributes to the global CSR discussion by doing research on how to make CSR measurable and how international financial reporting and CSR are linked. That’s unique in Europe. Together with Prof. Dr. Rüdiger Hahn (University of Kassel), Prof. Dr. Christian Scholz (Saarland University) and Prof. Dr. Edeltraud Günther (Technical Univer­ sity of Dresden), Prof. Dr. Henning Zülch and HHL contribute to the excellent reputation of the Good Company Ranking 2013. At first glance, this year’s results may appear shocking because only two non-German firms can be found among the overall Top 10. Why is that? While the transparency of German firms has increased steadily over the past couple of years, their financial performance has also overtaken several other European competitors. Summarizing, the conclusion can be drawn that German firms in particular have recognized the importance of CSR; not solely in their public relations but also as a key part of their corporate strategy. Rank Firm 1 BAYER AG 2 BMW AG 3 BASF SE 4 ADIDAS AG 5 HENKEL AG & CO. KGAA 6 SANOFI S.A. 7 DAIMLER AG 8 SAP AG 9 GLAXOSMITHKLINE PLC 10 MERCK KGAA The Chair is continuously engaged in research on the interrelation of financial and social performance of global firms. It is the Chair’s aim to bridge the gaps between quantitative methods (as traditionally employed in accounting and finance) and soft-fact oriented CSR research so that a more comprehensive understanding of CSR can be achieved. kirchhoff.de/fileadmin/20_ Download/2013-Highlights/Studie_ Good_Company_Ranking_2013.pdf In this context an emphasis is placed on financial communication against the background of information processing in capital markets which might also be incorporated in a future beauty contest of firms. Corporate decision makers employ various strategies to inform current or potential investors and other stakeholders about a firm’s news. However, this flow of information is not necessarily neutral but often times affected by the management’s discretion with regard to implicit and explicit accounting choice. Consequently, the chair analyzes methods of how to measure “real” CSR objectively in cooperation with the Werner Jackstädt Chair of Economic and Business Ethics. A current research project examines the question whether it might be more reliable to measure a firm’s effort to minimize Corporate Social Irresponsibility rather than quantifying Corporate Social Responsibility. How History and Politics Shape Accounting Regulation Accounting regulation comprises the whole set of rules, norms and principles which a society has implemented in order to coordinate and harmonize reporting duties among a company’s principles (owners), its agents (managers) and other interested parties (stakeholders). As societies, their politics and environmental conditions change over time, accounting regulation is also subject to a continuous process of transformation. Within the Chair’s research pillar on standard setting and enforcement, Dr. Sebastian Hoffmann (left) is responsible for research activities on accounting regulation. Dr. Sebastian Hoffmann The longitudinal study on the regulation of asset valuation in Germany provides historical evidence for the influence of socio-economic developments on changes in accounting regulation. Together with Dr. Dominic Detzen (right), former research associate at the Chair of Accounting and Auditing and now Assistant Professor at Vrije Universiteit Amsterdam, Dr. Sebastian Hoffmann recently published research results in this field under the title “The Regulation of Asset Valuation in Germany” in the leading journal “Accounting History”. The article examines the regulatory history of asset valuation in Germany from the fifteenth century to the implementation of the European Economic Community’s Fourth Directive in 1986. Dr. Hoffmann and Dr. Detzen find that regulatory changes are often induced by reference to preceding socio-economic and political developments. As a consequence, accounting requirements have often become more restrictive in the aftermath of economic crises when regulation was perceived to have been inadequate. In the nineteenth century, big corporations emerged in course of industrialization. To facilitate further growth, these firms needed additional capital which had to be raised through increasingly professional stock markets. In order to appear more attractive to potential investors, firms urged the government to change accounting regulation and introduce market prices as a measurement base for assets instead of the historical cost, which had been common practice before. Following a severe economic crisis in the 1870s, the government identified weak accounting regulation as a major reason for the crisis, and historical costs were reintroduced as an upper valuation boundary for assets of Aktiengesellschaften (stock companies). However, the valuation requirements were unspecific and discretionary, and stock companies continued to exploit regulatory weaknesses to their benefit. However, due to the socioeconomic well-being at the end of the nineteenth century, the government ceased to pay much attention. Only after 1900, along with the introduction of the Handelsgesetzbuch (HGB) did a lively debate on principles-based accounting begin. In the following years, HHL alumnus Eugen Schmalenbach and his dynamic theory of accounting became famous and were to be the government’s first choice among the competing theoretical bases for accounting. In consequence of the interwar years, the Great Depression and their devastating effects on German society and economy, the government eventually implemented historical cost also as a lower boundary to asset valuation and Dr. Dominic Detzen tightened regulation this way. Regulatory change following the Second World War followed a different logic. Although the socio-economic conditions were favorable, the strict valuation principle introduced after the Great Depression was extended to all companies. This development was mainly driven by the government’s political agenda of aiming for more stability and continuous growth which, in the absence of notable corporate opposition, was also accepted by companies. This longitudinal study on the regulation of asset valuation in Germany provides historical evidence for the influence of socio-economic developments on changes in accounting regulation. Based on this article, in-depth research may be conducted on shorter episodes of transformation, such as the Gründerkrise in the 1870s, hyperinflation in 1923 or the aftermath of the Great Depression in the early 1930s, examining the socio-economic context in more detail. For preparers of financial statements, the study allows the conclusion that accounting regulation is likely to remain rather strict. As witnessed during the latest reform of German accounting regulation in course of the 2010, Bilanzrechtsmodernisierungsgesetz (BilMoG, Accounting Modernization Act), substantial change permitting more discretion and flexibility is quite unlikely. Regulators are advised to pay attention to the socio-economic climate when proposing regulatory changes or new regulation in order to anticipate possible unintended consequences of regulatory acts. ach.sagepub.com/content/18/3/367 22 HHL RESEARCH REPORT 2014 Finance, Accounting and CorpORATE Governance 23 Cross-Border Voting and the Securities Law Directive Center for Corporate Governance The Quest for Good “Corporate Governance” From left to right: Prof. Dr. Marc Steffen Rapp, Christian Strenger, Prof. Dr. Michael Wolff – the academic directors of the Center Why do institutional investors so often not exercise their voting rights? European Business Register (s)/ EDGAR etc. Compliance with the German Corporate Governance Code Share Register Investors Research at the Center for Corporate Governance deals with the role governance mechanisms play within the context of the corporation. Beyond the study of best practice rules as found in the German Corporate Governance Code, the Center also aims to identify and address issues that are not yet in the headlines. Key facts about the CCG The center was founded in November 2010 to establish “corporate governance” as a distinct research focus within HHL. In addition to Christian Strenger, Co-Directors of the center are Prof. Dr. Marc Steffen Rapp (Philipps-Universität Marburg) and Prof. Dr. Michael Wolff (Georg-August Universität Göttingen) – both of whom are HHL alumni. Since its foundation, the center has been supported by its Transparency Monitoring/Control Incenves sponsors DWS Investment, Bertelsmann and KPMG in stimulating excellence in research and Adidas AG Allianz SE Volkswagen AG 100% teaching. Support for studies in governBASF SE ThyssenKrupp AG ance for emerging markets is provided 90% Siemens AG by the Fritz Thyssen Foundation. 80% The CCG is well connected inSAP AG ternationally and co-operates 70% with highly respected instiRWE AG 60% tutions such as the Global Corporate Governance 50% Münchner Forum of the IFC. RückversicherungsGesellschaft AG 40% The further development of the Center for 30% Merck KGaA Corporate Governance 20% is supported by an Advisory Board of reLinde AG nowned leaders in research, industry and Lanxess AG politics. The center is also involved in HHL’s K+S AG curriculum. Corporate Governance courses are offered within the MBA - and Infineon Technologies AG MSc Programs as well as the Henkel AG & Co. KGaA PhD Program. Deutsche Börse AG Deutsche Lufthansa AG Transparency Deutsche Post AG Deutsche Telekom AG HeidelbergCement AG Fresenius SE & Co. KGaA E.ON SE Fresenius Medical Care AG & Co. KGaA Fresenius Medical Care AG & Co. KGaA Monitoring/Control Incentives Diversity Issuer 2 Issuer N Share Register Share Register voting Entitlement (registered shares) voting Platform Proxy Advisers In June 2012 the tenth version of the German Corporate Governance Code was published in the Federal Gazette. To evaluate the acceptance level of this updated code in German listed firms, the CCG systematically examined their annual compliance statements according to §161 AktG (Stock Corporation Act). To shed light on the most important recommendations in terms of “good governance”, we translated the firms’ compliance levels into four specially constructed indices to obtain a measure of the individual governance quality of German firms in the areas of transparency, monitoring/control, incentives and diversity. As an illustration of the index’s construction, diversity considers, for example, the code’s recommendations on diversity in terms of internationality and gender among management board members and also age and independence among supervisory board members. Differentiating along the four indices reveals that almost all DAX firms show compliance with high standards Diversity regarding transparency and monitoring/control. In contrast, we observe a higher degree of heterogeneity for code recommendations Bayer AG covering incentives and diversity issues. For diBeiersdorf AG versity specifically, the picture is twofold; BMW AG while 77 percent of the DAX firms Commerzbank AG end up with an index value of 100 percent, 23 Continental AG percent are below the 90 percent threshold, Daimler AG with the lowest result being 67 Deutsche Bank AG percent. Issuer 1 Issuers’ Statements Custodians voting Entitlement (omnibus / bearer shares) 1st Level Sub-Custodians Custodian/ Depositary 2 2nd Level Sub-Custodians Custodian/ Depositary 1 Custodian/ Depositary 3 Interface structure of a Voting Platform We show that current regulatory initiatives have created a difficult situation for institutional investors that are mandated to vote but are unable to do so. In a cross-border comparison involving more than 20 countries, we find that the recently enhanced regulation imposes an implicit duty to vote on institutional investors. This implicit duty reflects the regulators’ expectation that institutional investors will exercise their voting rights in order to comply with good corporate governance standards. The duty-to-vote concept puts institutional investors in a difficult situation because they face significant barriers to cross-border voting that are mainly due to the public good structure of corporate governance and conflicts of interests of issuers, intermediaries and other stakeholders, and which regulators have not been able to remove due to inefficiencies in the regulatory process and limited regional jurisdiction. Analyzing the Market Standards for General Meetings as well as the proposals for the Securities Law Directive framework, we show that a cooperative solution is the best method for overcoming the disincentives to invest in cross-border voting. Establishing a global Voting Platform (VP) promises to be the most efficient way of facilitating cross-border voting. A well-structured Voting Platform can overcome the barriers caused by inefficiencies in the regulatory process and conflicts of interests for issuers, intermediaries and other stakeholders. In order to achieve this goal, the VP needs at least five interfaces: _Connection to existing registra tion and voting systems on the issuer level _Direct links to the investors’ depositaries _Provision of information on the General Meeting of share holders for each issuer from publicly administered data bases such as the European Business Register and EDGAR _Connection to the investor’s voting facility _Access to proxy advisers that provide investors with infor mation whether to vote yes or no, or to abstain (the ‘Voting Content’) Drawing on network effects and the economics of standardization in software markets, we are developing a suitable framework, including the functions and the ownership structure of such a Voting Platform and how legislators and regulators can support the Voting Platform to enable investors to exercise their voting rights efficiently, fulfilling their duty to vote. CENTER FOR CORPORATE GOVERNANCE CENTER SUPPORTERS _ DWS Investment GmbH _ Bertelsmann Business Consulting GmbH _KPMG Wirtschaftprüfungs gesellschaft AG _Fritz Thyssen Foundation ACADEMIC DIRECTORS Prof. Dr. Marc Steffen Rapp Christian Strenger Prof. Dr. Michael Wolff Core competencies/ Research interest _performance relevance of good governance _governance ratings and scoring systems _diversity-related questions _development of corporate governance in emerging markets Contact hhl.de/ccg ECONOMICS AND REGULATION 25 24 HHL RESEARCH REPORT 2014 Sparkassen-Finanzgruppe Junior Professorship in M&A of Small- and Midsized Entities Growth Options for Small- and Midsized Enterprises Dr. Lahmann: Identify­ing possible growth options is a typically discussed problem in strategic management decisions which is closely related with financial economics. The idea behind this interrelation is How can Earnings Figures be Modeled? The short-sighted valuation setting for the application of various pricing techniques, such as the discounted cash flow method, demands several requirements from analytical models. Without these, they are in fact not applicable in practice. For example, without these requirements, it is not possible to define constant and deterministic cost of capital via equilibrium models such as CAPM, which are in turn necessary for calculating the price of a company. One of the most result-influencing assumptions in asset pricing is mo­ deling the uncertainties of the underlying earnings or cash flow figure via a stochastic process. In the paper “The applicability of the additive process assumption in DCF,” Dr. Lahmann analyzed these requirements and showed under which conditions a simple and manageable solution can be provided without losing generality and applicability. Indeed, some of the recently discussed possibilities for how to model earnings figures give mathemati­cally elegant solutions but cannot be applied in real valuation settings. Therefore, it is important to analyze the underlying assumptions of an analytical model with great care. In 2013, the Chair of Economics and In­­ formation Systems successfully com­ pleted a 3-year project under the EU’s Seventh Framework Program for Re­ search (FP7). The project, codenamed EmPower, was funded by the FP7 In­ telligent Energy Europe program, which focuses on environmental topics with particular reference to the role of SMEs. that only techniques which originate in asset pricing are able to tell you if the growth options under consideration create value and how much. Without these techniques, the management of a firm is not able to make a well-founded decision. Why are acquisitions important in this context? Dr. Lahmann: Besides typical growth options such as investment in new production facilities, the acquisition of firms upand downstream along the value chain as well as the acquisition of competitors are important alternatives. Especially for creating entities in the SME sector which can play an important role on international markets, this is an often underestimated growth option. Why the special focus on SMEs? Dr. Lahmann: In contrast to large enter- prises, which usually have publicly traded stocks, SMEs are completely different in their structure (i.e. not publicly traded, management = owner, etc.) and therefore most financial techniques such as the capital asset pricing model fail. Partially this is due to the fact that the availability of data on non-public firms is limited. In addition, most of the basic assumptions of those standard models just do not fit the real conditions of SMEs. Of course, it is useful to make some simplifications in order to build a practicable and general approach for valuing SMEs. So far we have talked about theoretical concepts, but what is about the actual application? Dr. Lahmann: The limiting factor lies not only within the conceptual basis of analytical models. As already discussed, the fact that most models fail is due to EmPower – Promoting Energy Innovation Within the EU Innovation in the energy sector is a topic of high importance both in Germany and abroad. With the courageous but controversial decision to phase out nuclear energy production in favor of renewable sources (the Energiewende), Germany has committed itself to sourcing 80% of its electricity production from renewables by 2050. Since August 1, 2013, Dr. Alexander D. F. Lahmann (right) has been the Junior Professor for Mergers & Acquisitions in Small- and Midsized Enterprises (SME) at HHL. This junior professorship is kindly sponsored by the Ostdeutscher Sparkassenverband and the Sparkasse Leipzig. Dr. Lahmann will strengthen HHL’s profile as a business school offering excellent financial education and as an incubator of growth options for SMEs in the Neue Bundesländer. His research focus is on asset pricing, i.e. techniques for valuing enterprises that are essential for uncovering growth options. He is currently working on several combined research projects with the University of Leipzig and Sachsen Bank. Why are valuation techniques important for exercising growth options? CHAIR OF ECONOMICs AND INFORMATION SYSTEMS Jun.-Prof. Dr. Alexander Lahmann the lack of data availability. In our cooperation with Sachsen Bank, we are aiming overcome this problem by building up a unique transaction database that gives detailed insights into the valuation and the impact of growth options on the value of SMEs in general. In addition, it is possible to show the value differences between SMEs and listed firms. Junior Professorship for Mergers & Acquisitions in Small- and Midsized Enterprises Chair Donor Ostdeutscher Sparkassenverband / Sparkasse Leipzig Chair Holder Jun.-Prof. Dr. Alexander Lahmann Research interest _Asset Pricing _Corporate Valuation _Capital Structure _Corporate Transactions Contact hhl.de/ma-sme The main goal of the EmPower project, which spanned four EU regions (Saxony, West Macedonia, Aragon, and Tartu), was to increase the visibility of innovative energy solutions across partner regions, in order to promote their adoption among key decision-makers and ultimately shorten their time to market. As part of the EmPower effort, the Chair organized a regular series of application courses, hosted at HHL, which targeted engineering companies, architects, installers, and local institutional actors. The events included talks by institutional and commercial experts, and Prof. Pierfrancesco La Mura, Ph.D. The topic of each event ranged from emobility to smart metering, intelligent building materials, and bioenergy, with some events attracting up to 130 participants. The yearly schedule included six events hosted at HHL, including a special startup workshop which targeted entrepreneurs in the field of new energy solutions, with the aim of providing them with the tools needed to transform a novel technological idea into a successful business model. “As a regular participant at EmPower events, I can say that it was always exciting to attend the high quality presentations and fruitful as well as critical discussions. Furthermore, the events enabled me to extend my network and establish new business contacts.” empower-eu.net Dipl.-Inf. Lars Quiring, GET AG provided participants with the opportunity to network with key members of the local energy community. Focusing on current trends and opportunities in the renewable energy sector, the expert presentations demonstrated the advantages of novel intelligent energy solutions to key decision makers, enabling them to transmit those advantages to their clientele. 26 HHL RESEARCH REPORT 2014 ECONOMICS AND REGULATION 27 Future Building with VakuTex: A new Generation of Energy-Efficient Building Materials As part of its long-standing interest in the field of energy innovation, the Chair of Economics and Information Systems supervised several field projects in the area of new energy solutions. DFG funded: New Research Fellows In fall 2013 two new Research Fellows joined the Chair of Economics and Information Systems: PD Dr. André Casajus (left) and Dr. Frank Huettner (right). Dr. André Casajus, whose main research focus is in the areas of microeconomics and game theory, has already gained an impressive publication record as well as international recognition for his research. He holds degrees from the Universities of Leipzig, Berlin, and Hagen. Dr. Frank Huettner, whose research interests also span microeconomics and game theory, joined the Chair after half a year spent as postdoctoral fellow at the Université de Franche-Comté. Dr. Huettner is a recognized young researcher, and his position at HHL is fully funded for the next two years by the prestigious German Research Foundation (DFG). The recent research of Dr. Casajus and Dr. Huettner is focused on cooperative game theory. Broadly speaking, cooperative game theory deals with the fair distribution of gains of cooperation. Potential applications include the measurement of power within shareholders’ meetings and arbitration in distributional disputes. Research Cooperation with NYU Stern In 2014, Prof. La Mura will continue his long-term research cooperation with Prof. Adam Brandenburger, who is Associate Dean at the New York University Stern School of Business. Both have already been working on quantum cognition and on the foundations of decision and information theory, for several years. In 2014, as part of his upcoming sabbatical, Prof. La Mura will join NYU Stern for a semester as a visiting researcher, in order to further the scientific cooperation with Prof. Brandenburger. Previous projects at the Chair included an “Analysis of Possible Business Models and Marketing Strategies” (with Suncoal Industries GmbH), “Development of a business concept for an energy-positive house” (with EnergieCity Leipzig GmbH), “Models for citizen participation in establishing alternative energy plants in Central Germany” (with Sakosta GmbH, the Thuringian Ministry of Agriculture and Environment, and Volksbank eG), and “Evaluation of the auction design for gas transmission rights in Germany” (with ONTRAS GmbH, a company in the VNG group). The most recent corporate partner was VakuTex, a start-up in the field of high performance composite materials for buildings founded by Prof. Frank Hülsmeier, Head of the Energy Design group at the Leipzig University of Applied Sciences (HTWK). The project focused on performing a market analysis and formulating an entry strategy for VakuTex’ innovative facade element. Compared to state-of-the-art insulation materials, the VakuTex composite facade module provides better insulation against cold and heat, while dramatically reducing overall wall thickness and weight through its very thin profile (just 11 cm). Not only did the HHL student team in charge of the project successfully perform the required tasks, but it also brought significant additional value to VakuTex by identifying concrete opportunities for strategic alliances and contacts to private and institutional investors. Models of decision and cognition Quantum cognition is an emerging field which applies the mathematical formalism of quantum theory to model cognitive phenomena such as information processing by the human brain, decision making, human memory, concepts and conceptual reasoning, human judgment, and perception. In 2009, The Journal of Mathematical Psychology published a special issue on Quantum Cognition and Decision (2009, vol 53.), which was instrumental in the establishment of the new area as an independent field of research. One of the contributions in the special issue was by Prof. La Mura, who has been active in shaping the development of this new field since its earliest phase (P. La Mura, 2009, Projective expected utility. Journal of Mathematical Psychology, 53:5, 408-414.). In 2013, a new special issue on quantum cognition will appeared in TopiCS, the journal of the Cognitive Science Society. Prof. La Mura is also contributing a paper, this time on the role of regret in consumer decisions (P. La Mura, 2013, A double-slit experiment for non-classical interference effects in decision-making. Topics in Cognitive Science 5:4). Prof. Dr. Arnis Vilks CHAIR OF MICROECONOMICS Electronic Trading: Blessing or Curse? Information technology has already disruptively reshaped a variety of important business sectors, including many types of consumer services, entertainment, and the news industry. Recently, the financial services and intermediation sector has also been going through profound changes, prompted by the availability of novel IT solutions and infrastructure. One example of such changes is the growing importance of high frequency trading, which presently accounts for more than 50% by value of all equity trades in the US. Highfrequency traders implement strategies which aim to exploit, through statistical arbitrage, the slight short-term price differences which typically occur on separate financial markets. This new phenomenon affects the very infrastructure of financial markets: for instance, in 2010 a new dedicated data line was built (at a cost in excess of 300 million USD) between NYSE and the Chicago Mercantile Exchange in order to make communication faster by 0.8 milliseconds. According to many, high-frequency trading has already hit the physical limits of communication, and it is now more appropriate to describe it as “lightspeed” trading. Another important example of disruptive change in the financial sector prompted by recent advances in IT is the increasing credibility and impact of electronic, peer-to-peer currency. The most popular form of electronic currency, Bitcoin, is a type of peer-to-peer crypto-currency that is independent of any central authority. Bitcoins can be stored in an electronic wallet, and traded through any connected device such as a computer or smartphone. Since 2009, when the Bitcoin experiment started, the exchange rate with the US dollar has climbed from less than 1 USD per Bitcoin to the current 190 USD/Bitcoin (at the time of writing). Current research at the Chair focuses on the design of peer-to-peer electronic exchanges and of the infrastructure required by the new generation of high frequency trading, as well as on the general economic and social consequences of electronic trading. CHAIR OF ECONOMICS AND INFORMATION SYSTEMS Chair Holder Prof. Pierfrancesco La Mura, Ph.D. Core competencies/ Research interest Market Design and Regulation _Electronic markets _Energy markets _Mechanism design Foundations of Game and Decision Theory _Representations _Solutions _Algorithms Information Theory _Preference estimation _Quantum information _Artificial Intelligence Cooperative Game Theory _TU games, solidarity, and taxation _Group and network formation _Applications to statistics Contact hhl.de/information-systems Entrepreneurship in Ethiopia With a population of over 80 million, a reasonably stable political environment, and GDP growth rates between 7 % and 10 % in the last decade, Ethiopia is one of the most rapidly growing economies in the world. In terms of per-capita income, though, it is still one of the poorest, relying to a large extent on agriculture, which still accounts for 85% of employment. However, where change has occurred, business opportunities abound, and it is small wonder that the Ethiopian government is doing everything to support entrepreneurship – be it by Ethiopians or by foreigners. For example, the northern province of Tigray has published a long list of investment opportunities with a number of indicators such as required capital and IRR (mekellecity. com/investment.asp). The government is being supported in its efforts by international organizations such as UNDP which recently established an Entrepreneurship Development Center in Addis, and provides training and comprehensive business advisory services to micro- and small enterprises all over the country. The ambitious aim is to develop enterprises set up by over 200,000 entrepreneurs. One of the successful enterprises was founded by HHL graduates and deals in Ethiopia’s best-known product: gourmet coffee (coffeecircle.com). Prof. Dr. Arnis Vilks is currently on leave from HHL and serving as Tandem Dean of the College of Business and Economics at Mekelle University in Northern Ethiopia. 28 HHL RESEARCH REPORT 2014 ECONOMICS AND REGULATION 29 Center for Health Care Management and Regulation How to Achieve Medical Quality and Affordable Costs Simultaneously Prof. Dr. Dr. Wilfried von Eiff Prof. Dr. Dr. Wilfried von Eiff Prof. Dr. Dr. von Eiff has been the Academic Director at HHL’s Cen­ ter for Health Care Management and Regulation since December 1, 2013. In addition, he holds an extraordinary professorship for Health Care Management and is integrated into the business school’s academic group of Economics and Regulation. Born in Gießen, Germany, he has been the head of the Center for Hospital Management in Munster (CKM) since 1994. His key activities include health care research and health technology assessment, ethics and econo­mics in health care, purchasing and logistics management, as well as quality and risk management. Furthermore, Prof. Dr. Dr. von Eiff acts as an advisor for health economics at the International Institute for Health Economics. The health care systems in most of the western industrial nations are facing big problems due to higher life expectancy, and an increasing percentage of a nonworking population, increasing costs in their health care systems, higher premiums for health insurance funds, as well as misdiagnoses and medical malpractice due to exhausted or inadequately trained personnel. The pharmaceutical industry encounters harsh competition on the global market and faces substantial differences in legal conditions in different countries. Both the public health sector and medical research as well as marketing in the pharmaceutical industry are increasingly faced with complex ethical questions, for example, welfare economic evaluation and the rationing of health care services. Challenges in Health Economics and the Pharmaceutical Industry At the same time, innovative and intelligent information and communication technologies (smart systems) as well as more effective processes to use large pools of data offer new possibilities to fundamentally reorganize health care systems. New types of cooperation between health care providers and the trend towards individualization in the medical sector change the value-added processes and, consequently, the fundamental organizational form as well as As a part of his responsibilities at HHL, Prof. Dr. Dr. von Eiff will participate in the strategic management program as well as offering a course within the framework of HHL’s Executive Education program in Phoenix/USA and other locations. This program will be integrated into the part-time MBA at HHL in the medium term. In addition, Prof. Dr. Dr. von Eiff is involved in the organization and execution of the CASiM Conference 2014 on the topic “Boundaryless Hospital”. wilfried.von.eiff@hhl.de logistics in health care systems of the future. This confronts health economics and hospital business administrations as well as the management of pharmaceutical companies involved with research with new challenges. The same issues apply to state regulation which is essential for the development of the health care system. Prof. Dr. Dr. Wilfried von Eiff, the new Academic Director at HHL’s Center for Health Care Management and Regu­ lation, says, “hospitals and the pharmaceutical industry will be organized in completely new forms of integrative health care networks. Their development, regulation and optimization will require considerable research and transfer activities as well as significantly improved offers in further education for executives in the health care sector, and for different kinds of medical and health care professionals.” The research program at the new Center for Health Care Management and Regulation, which is currently being organized in close coordination with the activities of the cross-group center CASiM, will, amongst others, deal with the issues below. For the cross-group center CASiM, health care is one of four future core issues of business administration for the 21st century. In preparation for an international research conference in Leipzig in summer 2014, CASiM has already organized several inter-disciplinary events with experts in medicine and economics, and developed a research agenda. In addition, the Center for Health Care Management and Regulation will cooperate closely with the Chair of Business Ethics and through that with the Wittenberg-Center for Global Ethics: Innovation and Entrepreneurship division, as well as the Chair of Strategy, Finance, Marketing and Logistics, and last but not least with the new Arendt Oetker Center for Business Psychology and Leadership. The idea is to establish practice-oriented health care management research through the BMBF and EU-programs as well as applicable projects. Hereby scientists from the medical faculty of the University of Leipzig will be included as much as possible. Other University hospitals and pharmaceutical companies are also targeted for inclusion in the research and transfer activities in connection with certain diseases. HHL sees a broad field in the health care sector for the development of new business models, the establishment of new health care companies, and the development of already existing companies by integrating new business concepts in form of spin-in activities. As a result of these considerations, the Center CEIM that is currently being established will The Research Program at the new Center for Health Care Management and Regulation _ Patient control: possibilities and limits of pay-for-performance in the health care sector _ Ethics and economics in the medical sector: Does the medical sector need protection from economics? _ Medicine logistics in hospitals: safety and cost effectiveness of pharmaceutical supplies _ Personalized medical care: ethical, economic, medical and industrial strategic aspects be linked with the new center to utilize the potential for spin-offs and spin-ins in the Leipzig region as well as in western Germany. HHL pursues close research cooperation in the field of health care management with scientists from the scientific and health care fields in the Leipzig region as well as the Hochschule Fresenius – University of Applied Sciences. This is to include the strengths in the field of medical research and hospital management on the one hand and the academic qualifications of medical and health care professions for the development of a holistic approach in new supply networks both in research and in teaching as well as in the transfer. Center for Health Care Management and Regulation Center Donor COGNOS AG Academic Directors Prof. Dr. Dr. Wilfried von Eiff n.n. Core Competencies / Research Interests _ Health care research, health technology assessment, ethics and economics in health care, purchasing and logistics management, as well as quality and risk management Contact hhl.de/chcmr 30 HHL RESEARCH REPORT 2014 SUSTAINABILITY AND COMPETITIVENESS 31 Prof. Dr. Manfred Kirchgeorg How to boost sustainable consumption behavior? The Chair’s research in the area of Sustainability Marketing focused on the following four main projects in 2013: _ _ _ _ Communication of sustainability hot spots Scale development for consumers’ sustainability consciousness Consumers’ acceptance of electric mobility concepts BioEconomy strategies. In the first project it was analyzed how “Sustainability Hot Spots” can be effectively communicated, e.g. at the pointof-sale. Nowadays, manufacturer and retailers conduct Hot Spot analyses for their products and private labels to identify the Hot Spots with the greatest impact on the ecological footprint along the product lifecycle. The research question was how consumers may be informed about critical Hot Spots in order to promote sustainable consumption behavior. Therefore, an online experiment was developed and an eyetracking study to test consumers’ reactions on Hot Spot communication was conducted. Consciousness for Sustainable Consumption (CSC) _Recycling/disposal _ Use of resources/ energy _Local/regional production _ Climate impact Environmental _ Human rights _ Social standards _ Child labor _Mistreatment _ Fair compensation Economic Voluntary Simplicity Collaborative Consumption Social Debt-free Consumption Multidimensional model of consumers’ sustainability consciousness understanding of the economic dimension was achieved, which was modeled as a multi-faceted construct. As illustrated in the figure above, economically sustainable consumption can be seen from three different angles: voluntary simple, collaborative and debt-free consumption. In practice, this means living a low-key, non-consumption oriented lifestyle or to prefer sharing concepts such as car sharing instead of owning and to avoid financial overspending. The largely driven by consumers’ brand love, i. e. their strong emotional attachment to the brand. Even though theories commonly propose that consumers’ behavior is guided by their pro-environmental values, ecological values did not significantly contribute to explain consumers’ preferences. Furthermore, the SVI-Endowed Chair of Marketing is a member of a Research Consortium of the SVI-Endowed Chair of Marketing, esp. E-Commerce and Cross-Media Management Digital Disruption and Sustainability as Game Changer in Marketing Thanks to the foundation commitment of the Siegfried Vögele Institute, Prof. Dr. Manfred Kirchgeorg holds the SVI-Endowed Chair of Marketing, esp. E-Commerce and Cross-Media Management since November 2013. The research areas E-Commerce and Cross-Media Management will be added to the Chair’s previous research portfolio consisting of Sustainability Marketing and Holistic Branding. Sustainability Because of new sales and communication channels provided by digital media, Marketing radical changes in developing relations to customers and stakeholders occur throughout all industries. Over the course of the next years, the SVI-Endowed Chair of Marketing will be dealing with these challenges in both research and teaching more intensely. Especially in times of change, the Chair’s longterm competence in the field of theory-driven empirical research provides Holistic an excellent precondition to explain altered empirical phenomena Branding by new theoretical models. Individual research questions are being considered as part of the overall concept of Holistic Branding and Cross-Media Sustainability Management. With this background the research E-Commerce Management team led by Professor Kirchgeorg has been able to establish an outstanding research profile in both, national and international context. By systematically extending networks to other scientists and companies, exceptional research results have been Research competencies at the gained in interdisciplinary cooperation projects. SVI-Endowed Chair of Marketing Sustainability flyer & eyetracking heat mp showing destinations of attention Second, the SVI-Endowed Chair of Marketing proceeded with its fundamental research to consolidate existing measurement approaches for consumers’ sustainability perceptions. The “Consciousness for Sustainable Consumption” (CSC) scale encompasses items for measuring the ecological, social and economic dimensions of sustainable consumption. In collaboration with the Chairs of Marketing of the Leibniz University Hanover (Prof. KlausPeter Wiedmann) and the University of Potsdam (Prof. Ingo Balderjahn), the CSC scale was validated in several independent studies. In particular, a better scale was jointly developed with market- “Spitzencluster BioEconomy”. The viing research experts from the GfK Verein sion of the top cluster BioEconomy is who are going to test the scale’s predic- to be an example for the realization of a tive validity within a representative con- BioEconomy concept in a whole region. sumer sample. To that end the strategy of the cluster is to drive the economic development A third research project was centered of the region forward and to create around consumers’ acceptance of eco- impulses for sustainable growth. The friendly product innovations. In the de- SVI-Endowed Chair of Marketing will velopment of alternative drive concepts accompany the process from an acaon the way to emission-free mobility, the demic perspective and consult the clusBMW Group developed the MINI E as an ter management as well as companies urban electric car and handed a fleet of of the cluster, in particular by analyzing test cars to customers. According to the market entry and branding strategies results of this research project, the ac- for new Bio-Tech products. ceptance of electric mobility concepts is 32 HHL RESEARCH REPORT 2014 SUSTAINABILITY AND COMPETITIVENESS 33 In order to transfer the research insights the Chair gained from these projects, workshops with practitioners were conducted, e.g. at the Fifth Annual Conference of the Akademische Partnerschaft ECR Deutschland. More­ over, the research results were discussed with the scientific community at several international conferences (AMA Winter Conference, Las Vegas; AMS Summer Conference, Melbourne; CRR Conference, Graz) and were published in several articles in marketing journals such as the Swiss Journal of Business Research and Practice and AMS Review. How to create strong Brands for Customers and Employers? Several projects within the framework of the competence field “Holistic Branding” are dealing with profiling concepts of company brands in view of their future employees and customers. Due to the growing problem of companies to acquire qualified personnel, the SVI-Endowed Chair of Marketing has addressed research on Employer Branding intensively over the last decade. The relevance of brand architecture for the Employer Branding was studied in a recent project. With respect to the influence of brand hierarchies on stakeholder perception, hypotheses can be put forward on the basis of theoretical reflection. For the first time, these hypotheses were tested by means of an experimental design. An online survey was carried out for this purpose asking the subjects to rate different brand architectures. This project provided interesting insights on the image of employers. Hence, companies that are active in various business areas should also make an effort to represent this diversity in Employer Branding processes appropriately. In case of complex brand architectures a close connection between the promised value of the brand and the corporate brand is essential. Furthermore, a research project dealing with the brand-identity-based composition of Live Communication has been completed. By using eye tracking technologies and surveys the multi-sensual perception of a trade show booth was analyzed in cooperation with an energy service provider. The results yield evidence on the importance of various booth elements to convey the brand identity to the target group optimally. A purposeful combination of branding issues and problems of Live Communication was the basis of this project. Future of Retail: From E-Commerce to M-Commerce? Considering the rapid change of customer buying behavior because of the new mobile and stationary channels for communication and sales, the SVIEndowed Chair of Marketing was involved in analyzing the determinants of multi-channel buying behavior. In this regard a cooperation project with McKinsey & Company concerning the “Determinants of channel choice behavior in the multi-channel context” was conducted between 2007 and 2011. Research results demonstrated a clear dominance of interactive channels over one-directional communication channels. The relations between attributes of sales channel quality which are noticed by customers and their resulting usage of channels were examined with the help of multi-nomial logit models and nested logit models. As a result, it could be shown across sectors “The retail sector will change completely until 2020. But the customer is always at the center of the business models. Customer-centricity will revitalize the role of Marketing in a changing world.“ Prof. Dr. Manfred Kirchgeorg that the quality of supply and the channel convenience have a significant influence on the usage of sales channels. Especially issues of channel convenience were embraced by the Chair systematically and, thus, projects to study the shopping atmosphere in stationary shops were launched. A further study was conducted to investigate the possible applications of Mobile Commerce as an instrument of both customer and channel loyalty. On the basis of a theory-driven empirical analysis, the influence of various instruments of mobile marketing on the trading companies’ customer loyalty was studied. This was accomplished by analyzing the use of locally based services, from coupons through to bonus programs, which are supported by the use of mobile phones. It will be possible to present important results of this project in 2014. SVI-Endowed Chair of Marketing Chair DONOR Siegfried Vögele Institute Chair Holder Prof. Dr. Manfred Kirchgeorg Core competencies/ Research interestS _ E-Commerce _ Cross-Media Management _ Holistic Branding _ Sustainability Marketing Contact hhl.de/marketing Sustainability considerations in logistics and supply chain management (SCM) have been become an increasingly attractive field of investigation among researchers in the last few years. Awareness of environmental protection and green technology in particular has grown in industrialized countries. Contrariwise, information technologies are developing faster and faster, at the same time as lifecycles are shortening and product innovation is increasing. This situation raises the question of how these emerging information technologies can efficiently contribute to sustainable logistics and supply chain management. One possible answer to this question was proposed in a research paper written by Prof. Dr. Iris Hausladen, Alexander Haas and Andrej Lichtenberg and presented at the 10th International Conference on Logistics & Sustainable Transport in Celje, Slovenia. Prof. Dr. Iris Hausladen HEINZ NIXDORF CHAIR OF IT-BASED LOGISTICS “Enhancing sustainable logistics through the con­tribution of emerging IT” Prof. Dr. Hausladen, emerging information technologies (IT) could mean many things. What do you understand by the phrase? Prof. Dr. Iris Hausladen: We see emerging IT in contrast to so-called established IT solutions and established IT support. Established IT can be understood as logistics information systems which have already been widely adopted in practice, so that the transition process from research and development to practical use is more or less complete. Two examples are ERP and warehouse management systems. In contrast, emerging IT solutions in logistics and SCM can be seen as the next layer of IT support. We have clustered them into three areas. First, architecture concepts such as service-oriented architecture try to set up a basis for designing the whole IT landscape of logistics and SCM applications. Second, overarching technology paradigms attempt to map all previously used applications into one single platform. Cloud computing solutions represent a good example of this category. The third cluster summarizes efforts to design strong analytical systems within logistics and SCM, and focuses on the efficient use of the large chunks of data produced as material flows through the supply chain. This is currently reflected by big data analyses and business intelligence solutions. Using these emerging IT solutions as a foundation, how did you proceed during the analysis, and what was the methodological approach? Prof. Dr. Iris Hausladen: The general aim of the research paper was to develop an overarching framework interlinking sustainable logistics and SCM on the one hand with the contribution of emerging IT on the other. First, we extracted sustainability requirements from literature and categorized them using the triple bottom line approach, i.e. we allocated the requirements either to the ecological component, the economic component or the social component. Subsequently, we constructed the selection procedure 34 HHL RESEARCH REPORT 2014 Did you create an example to familiarize the reader with the suggested concept? Prof. Dr. Iris Hausladen: Yes, we show a fictitious example derived from the wood industry and check the sub process “Reserve inventory and determine delivery date” in the deliver process using a cloud computing solution. During your analysis, you focused only on emerging IT solutions. Is it also possible to apply the proposed framework for the established IT? Prof. Dr. Iris Hausladen: We deliberately constructed the analysis framework in a more generic matter. This gave us the option of a broader application scope. That means that it is definitely possible to use the framework for established IT. Nevertheless, if new technologies are implemented, all opportunities for making improvements should still be examined, and we hope our framework can serve as one brick in the wall of improvement possibilities. Considering the research focus of the Heinz Nixdorf Chair of IT-based Logistics, how would you embed this topic, and what are the next steps concerning the framework? Prof. Dr. Iris Hausladen: Our aim was to create an analysis framework that integrates the holistic approach of the triple bottom line for logistics and supply chain processes and pairs it with the contribution made by emerging IT solutions to sustainability. One possible next step is to quantify the proposed measures in order to capture all components of sustainability in an operational manner. Furthermore, we are looking for some practical application, potentially in the sector of bioeconomy. In terms of the research focus, the paper definitely touches on our three focal topics, i.e. assessment, management and inherent business processes in IT-based logistics, but it is obviously more closely linked with the assessment of solutions in IT-based logistics and supply chain management. Connecting Humanitarian Logistics and Sustainability The need for well-executed humanitarian operations and logistics is bigger than ever in the face of multiple catastrophes and the long-term activities that ensue in different areas, different environments, and different political and ecological contexts. As a result, the membership of the second BVL working group Humanitarian Logistics, which closed in fall 2013 and became a BVL topic group, came together to create a collected edition gathering the knowledge developed and discussed in the regular meetings of the working group. Prof. Dr. Iris Hausladen and Alexander Haas contributed a paper considering sustainability in the context of humanitarian logistics. Here, the core concept is the enhancement of the previously developed integrated logistics system for humanitarian logistics by using the sustainability component. The collected edition, edited by Prof. Dr. Bernd Hellingrath from Münster University, was published in October 2013. 4th meeting of the working group at Leipzig/Halle Airport on January 22, 2013 Second Edition of the Textbook on IT-based Logistics The rapid development of new information technologies and growing market demand for up-to-date knowledge in the area of IT and logistics led to the actualization and revision of Prof. Dr. Hausladen’s textbook “IT-based Logistics”. During the revision process, every chapter was brought up to date. For instance, the area of emerging information technologies which are applicable in logistics and supply chain management is now covered by a separate subchapter which deals with, among others, service oriented architecture, cloud computing and analytics. The second edition is available since January 2014. Network “metaStream” The Heinz Nixdorf Chair of IT-based Logistics participates actively in the „metaStream“ network, which is concerned with the development and implementation of innovative concepts for a sustainable, robust, competitive and ensured energy supply. The contribution of the chair is to analyze the energy and material flow logistics. Here, all the logistics processes for the different kinds of energy and material flows have to be considered holistically with regard to their sustainability, robustness, performance, effectiveness, improvement, costs, etc., in order to identify the best solution. At the moment, the initiation of research and development projects with the network partner is focused. The Chair is also involved in network meetings, workshops and expert discussions where it contributes its academic expertise. After defining the research topic and identifying partners, the active work phase will start with the goal of initiating investigation of the logistics process management for the different kinds of energy and material flows. metastream-netzwerk.de Logistics and SCM Concept for BioEconomy Since July 2012, the Heinz Nixdorf Chair of IT-based Logistics with Prof. Dr. Iris Hausladen and research associate Andrej Lichtenberg has been part of the Leading-Edge Cluster BioEconomy. The cluster comprises more than 50 companies from a variety of sectors, e.g. sawmill, paper, and chemical industries in Central Germany. The goal of the threeyear cluster project is to ensure sustainable and – whenever possible – cascade use of beech wood. This implies the re-use of the same material for different purposes, e.g. through recycling or processing. To support the realization of this objective, several research institutions are working on an interdisciplinary basis in close cooperation with the business partners to provide scientific concepts and methods. Logistics and supply chain management (SCM) play a crucial role as “umbrella functions” in the developing BioEconomy sector. Whereas business partners in the project usually already have a logistics system, a concept for SCM in bioeconomic supply chains has yet to be developed. The reason for this is that in the emerging BioEconomy sector, new links are being created between industries which have no history of cooperation. In addition, these industries are characterized by very diverse product portfolios and processes, as can be seen in the figure below. A good example is the connection between the sawmill and the chemical industries. For biobased production of chemical materials in so-called biorefineries, the logistics processes must be defined at the interface between the two organizations, and partly redefined within them. Wood Production Material flow Timber industry Material flow Biorefinery Material flow Cascade use whereby we chose a two-step portfolio method in order to select a relevant logistics and supply chain process (LSCP) for further analysis. It should be noted that the analysis of the LSCP requires a certain standardization, and so we decided to use the SCOR model first in order to standardize the set of processes to be selected. We suggest that if the LSCP meets more than 50% of the requirements in the portfolio analysis, further investigation can take place and be executed by means of individually checking the above-mentioned requirements for a chosen emerging IT solution. SUSTAINABILITY AND COMPETITIVENESS 35 Bioenergy production Example of cascade use in BioEconomy The work package “Logistics and SCM” within the cluster project takes a crossindustry approach which aims to look at the as-is logistics processes along the complete supply chain and then to define to-be processes. A holistic, integrative logistics concept will be developed according to the specific needs and requirements of the industries involved. In addition, a SCM concept will be formulated to improve communication and cooperation in bioeconomic supply chains. Another specific aspect to take into account is related to the assessment of methods and solutions from IT-based logistics, as these represent an essential success factor for SCM. The above-mentioned differences in the characteristics of the industries involved imply diverse requirements for logistics processes. This factor poses a considerable challenge for the integration of supply chain partners. Nevertheless, the work package “Logistics and SCM” has the potential to contribute significantly to the development of a spacious BioEconomy region in Central Germany. For Prof. Dr. Hausladen, the project also offers an opportunity to further expand the research portfolio at the chair. bioeconomy.de “The German research strategy ‘BioEconomy 2030’ calls for innovative concepts to face the challenges of modern life, i.e. scarce resources, a growing world population and the need to preserve a health natural environment. A biobased economy anchoring the sustainability paradigm in every human and organizational decision manifests an important pathway for various sectors and fields of activity to achieve the ambitious targets. Logistics and SCM act thereby as success factors and enabler by integrating resource flows and people in complex and global value creation networks.” Prof. Dr. Iris Hausladen HEINZ NIXDORF CHAIR OF ITBASED LOGISTICS Chair Holder Prof. Dr. Iris Hausladen Core competencies/ Research interest _BioEconomy _Energy and material flow logistics _Business models for IT-based logistics/ IT-based logistics applications _Evaluation of IT-based logistics applications _Business Process Management (BPM) in the field of (IT-based) logistics _Emerging IT solutions in logistics _E-Supply Chain Management _Sustainable logistics systems and networks Contact hhl.de/logistics 36 HHL RESEARCH REPORT 2014 SUSTAINABILITY AND COMPETITIVENESS 37 SPARKASSEN-FINANZGRUPPE CHAIR OF MACROECONOMICS Environmental Policy and Competitiveness: Measuring the Stringency of Policy Competitiveness considerations have an important impact on the design of policy. But competitiveness is a relative concept – to conclude that a country losses competitiveness due to policy requires to compare the stringency of regulation across countries. Due to lack of data, this is a challenge for empirical research. We offer a solution to this problem. Prof. Dr. Althammer, one of your research interests is the relationship between trade and environmental policy. What is the effect of this link? Prof. Dr. Althammer: A stricter environmental policy should be beneficial for a country by reducing the negative consequences of environmental degradation. But it also might imply higher costs for companies, which is usually interpreted as a decrease in competitiveness. Policy has an impact on production structures – they change, and less polluting and more clean goods are produced. This is an intended consequence of regulation. But policy may also result in a relocation of industries which move to countries with less stringent regulation. This “pollution haven effect” is the link to trade policy; it can cause additional costs, e.g. loss of employment. Does policy react to this linkage? Prof. Dr. Wilhelm Althammer Prof. Dr. Althammer: Competitiveness considerations have become an important aspect of environmental policy. Take energy policy in Germany as an example. The ambitious targets of the “energy revolution” entail high costs in order to subsidize renewable energies. But industry has been exempted from paying higher prices, and these exemptions were widely granted. Now there is a conflict with the European Commission, which thinks that these tax exemptions are in effect illegal subsidies, and so the companies face the possibility of huge penalties. Or take the European Union Emission Trading System for carbon emissions. The European Union intends to move to an auction system over the next years, but to prevent disadvantages for energy-intensive industries, a complicated procedure has been started to identify those industries that might lose competitiveness and international market shares. But something must be done to protect our industries. Prof. Dr. Althammer: This is a huge problem, especially in climate policy. The European Union is acting as a pioneer, as a role model for other countries. But if unilateral policy harms competitiveness too much and industries move to other countries with no regulation, carbon emissions will not be reduced as a consequence of policy, they might even increase. To evaluate the effectiveness of policy, estimating this so-called carbon leakage is a challenge for empirical research. Is this just a problem of empirical research which can be solved easily? Prof. Dr. Althammer: Measuring the stringency of regulation is a tricky task. The first idea is to measure the costs that arise for firms from complying with environmental regulation – unfortunately, cost data is only available for the USA and some European countries, but not for developing countries and emerging markets which may serve as pollution havens. Interpreting regulations to evaluate their stringency or just counting regulatory action is also not a good idea: As the graph shows, the USA has an exceptional number of policies and Wouldn’t it be easier to use tariffs and measures for reducing greenhouse gas trade restrictions for products coming emissions, but nobody would say that from these countries? the USA is a forerunner in climate policy – many of these policies do not include Prof. Dr. Althammer: This is a very pop- any regulatory instruments. ular idea – punish those that use less What is your approach to resolve this strict policy to undercut your standards problem? and regulations. But environmental policy and climate policy have many facets. These range from emissions trading, Prof. Dr. Althammer: We use an aptaxes, energy efficiency standards and proach from microeconomic theory subsidies for energy related investments which assumes that one can infer the through to voluntary agreements among prices that firms are faced with from industries. Due to this multi-facetted na- their behavior. Firms try to minimize ture of policy, it is not easy to determine costs, and they react to prices by changwhether the regulation in one country is ing their behavior. Therefore, we start less strict than the regulation in others. with the energy input that is used by different industries, and then try to deduce the energy prices these industries are faced with. By comparing these prices with world market prices for the different energy sources, you can estimate the wedge that policy drives between the market price and the price faced by firms. This is our estimator for regulatory stringency. This sounds very theoretical – what can you do with the results? Prof. Dr. Althammer: The advantage of our approach is that we now have an internationally comparable sector-specific measure of multidimensional climate policy stringency. We cover 33 sectors and 28 countries over a time horizon of 15 years. But it is only the first step these stringency indicators can be used in further research about the effects of climate policy on trade flows and foreign direct investments. With this information, we want to be able to better predict the effects of policy on company behavior, and the effectiveness of policy concerning carbon leakage. The graph uses data from the International Energy Agency and shows the energy-related policies and measures to reduce greenhouse gas emissions implemented in a selected set of 28 countries in June 2013. The USA has the highest number of policies and measures, but many of these do not include any regulatory instruments. 38 HHL RESEARCH REPORT 2014 SUSTAINABILITY AND COMPETITIVENESS 39 DR. WERNER JACKSTÄDT CHAIR OF ECONOMIC AND BUSINESS ETHICS Dissertation Some politicians worry that strict climate policy harms a country’s competitiveness and does not necessarily reduce greenhouse gas emissions, because it gives energy intensive industries an incentive to relocate to other countries. “Resource wealth and sustainable development: A comparative analysis of the GCC countries” by Martin Schneider In his work, Martin Schneider analyzes whether the Gulf Cooperation Countries were able to use their revenues from selling oil and gas to establish a sustainable development process which would allow future generations to participate in the wealth created today. He addresses three basic research questions: First, are natural resources a blessing or a curse for the Gulf states? By analyzing different transmission channels between resource dependence and economic growth, Schneider shows that the Gulf states are an example par excellence of resources being both a blessing and a curse. Therefore, more important is the question of whether development has been weakly sustainable, i.e. whether the Gulf states have been able to transform their decreasing natural resource wealth into other forms of wealth such as produced or intangible capital. His analysis reveals a growth-wealth paradox. Despite positive growth rates in real GDP, the Gulf states performed poorly over the 1980-2005 period. In terms of sustainable wealth, they lost capital stocks at the expense of future generations. The third research question addresses the sustainability problem from a different view point: Did the structural change in the economies increase the competitiveness of these countries? Martin Schneider demonstrates that the answer depends on whether the measure used for competitiveness takes sustainability into account or not. Countries that initially record a good performance in existing competitiveness rankings lose significant ground when accounting for measures of sustainability like the political environment, social cohesion and intergenerational fairness. Good Ethics is Good Business. Or is it? CliPoN – a Research Project Funded by the BMBF For this reason, the Chair of Macro­economics has developed an internationally comparable sector-specific measure of climate policy stringency to test whether certain sectors are subject to this so-called carbon leakage. This analysis encompasses not only developed countries but also emerging as well as developing economies, and is intended to assist policy makers. Climate Policy and the Growth Patterns of Nations The Chair’s research is part of the CliPoN joint project, which is funded by the Federal Ministry of Education and Research (BMBF). Working together with the Potsdam Institute for Climate Impact Research (PIK), the Centre for European Economic Research (ZEW) in Mannheim, and the University of Bielefeld, the relationship between climate policy and the regional pattern of economic growth is investigated from a theoretical, empirical, and numerical perspective. In the process, the research project addresses the inclusion of the climate change challenge in the broader context of international trade, development and the environment. It highlights the importance of research on technical progress, innovation, and industrial structural change, and of assessing the risks and opportunities for growth and development in a decarbonizing world. “The aim of CliPoN is to contribute to a better qualitative and quantitative understanding of the interconnected mechanisms of climate policy, trade, endogenous international technology diffusion, economic development, crosscountry convergence and carbon leakage.” Prof. Dr. Andreas Suchanek To equate good ethics with good business is something you expect from an ethicist, and the claim is often repeated in public speeches or written in articles on Corporate Responsibility. Regrettably, the claim is not necessarily true. Some business people have been quite successful without acting responsibly and, vice versa, some have displayed a deep sense of integrity yet have failed in their attempts to remain competitive. Actually, this should not come as a surprise. Effectiveness and ethicality are two distinctly different management capabilities and the integration of both, which is at the center of the work of the Dr. Werner Jackstädt Chair of Economic and Business Ethics, is far from trivial. The following matrix may help to clarify this point. SPARKASSEN-FINANZGRUPPE CHAIR OF MACROECONOMICS Chair Donor Sparkasse Leipzig Chair Holder Prof. Dr. Wilhelm Althammer Core competencies/ Research interest _ Linkages between trade, trade policy and environmental policy _ International aspects of environmental policy _ Regional and national competitiveness, sustainable competitivenessg Contact hhl.de/macroeconomics These categories can be explained based on the fictional example of a convenience store owner. Unethical and ineffective management would be blatantly short changing customers and insisting that the correct change had been given. This strategy is likely to work here and there, but once word spreads because too many customers leave the store irritated, business is likely to suffer. Unethical but effective management would be to weight the scales on which goods are weighed to a degree which is so small that no customer is ever likely to detect that they, for example, have paid for 200 grams of a product but only received 197.5 grams. Ethical but ineffective management would be to sell to customers in financial difficulty at cost price so as not to profit from those less well off. Depending on the financial health and ethical beliefs of the customers, this strategy may in fact not be terribly ineffective. However, there are likely to be unethical customers who abuse the privilege and claim to be in financial difficulty although they are not. Likewise, if too many customers are indeed in financial difficulty, the store owner may eventually find himself (or herself) in financial difficulties. Ethical and effective management would be to price all products fairly and offer those customers with payment difficulties fair credit terms, occasionally verifying that these customers deserve trust. This is likely to be a highly effective strategy as word of mouth is likely to increase loyalty to the store across the whole customer base, but the strategy is nonetheless safeguarded against abuse. This analogy is over-simplified. In the complexity of a real business environment, it is likely to be difficult for a manager to detect which quadrant of our matrix a particular strategy is in. The Deepwater Horizon accident at BP is an example of unethical and ineffective management. Nonetheless, this is only truly evident ex-post facto. The strategy of ‘minimizing spending on safety and maintenance’ is an example of ethical and effective management if stakeholders are sufficiently protected from harm. (Maximizing spending on safety and maintenance is likely to be an example of ethical but inefficient management.) Alternatively, so long as compensation 40 HHL RESEARCH REPORT 2014 payments and fines remain below the amount of cost savings or profits made on an unethical strategy, unethical but effective management practices can run indefinitely before (if ever) moving into the ‘ineffective’ category. Assessing the likelihood that a strategy will be effective or ineffective requires specific capabilities and the use of various tools and instruments. In a sense, the whole discipline of business administration is dedicated to fostering these capabilities which help to organize (literally) a corporation’s actions in a way that is effective. Marketers measure brand loyalty, human resource officers monitor employee satisfaction, and finance officers weigh the costs against the returns of investments. All corporate employees rely on their soft skills to ensure that decisions made based on these models are effectively implemented. “Nobody wants to work together with a person or corporation that they do not trust.” Prof. Dr. Andreas Suchanek It may seem less intuitive to argue that ethical behavior also requires the development of specific capabilities, as all people are instilled with a conception of what ethical behavior is. Nonetheless, as a teacher of business ethics, attempting to simply promulgate the belief that ‘good ethics is good business’ would be an example of acting ethically but ineffectively. Most managers can probably think of an unethical but effective management practice going on in their company as well as a project which was ethical but ineffective. The Dr. Werner Jackstädt Chair of Economic and Business Ethics focuses on a deeper understanding and the development of concepts, theories and instruments to support the capability of future managers to exercise moral discernment. SUSTAINABILITY AND COMPETITIVENESS 41 Publications and Presentations Klaus Kerscher: Homo Economicus and the Idea of Human Nature The thesis details the arguments of both the advocates and the critics of the Homo Economicus concept. The arguments are structured to exemplify that contradictions are unavoidable, whereby singular scientific descriptions of human nature are, by definition, a ‘reduced’ form of the phenomenon which they are trying to depict. The dangers of this ‘reduction’ are made evident – as are the remarkable opportunities which the concept holds. Paradoxically, a wellinformed interpretation of the Homo Economicus enables societal phenomena which human beings collectively consider themselves to have created, but in the face of which any given individual is powerless, to be analyzed and understood. Christian Schiel: Moralisches Risikomanagement –Strategien für das risikoorientierte Management von Konflikten zwischen Gewinn und Moral (Ethical Risk Management – Strategies for Managing Risks Associated with Conflicts between Profits and Morals) Christian Schiel identified ethical risks as a class of risk which is neglected in traditional risk management frameworks. Given the importance of trust as an asset, the need to manage ethical risks stemming from conflicts between profits and morals is evident as these risks pose a threat to trust in an organization. Christian Schiel therefore shows how the COSO risk management process can be applied to ethical risks. Martin Modes: Ethics Education: Current Trends in Ethics Education in Business Schools In the wake of the financial crisis, a significant amount of criticism has been targeted at business schools and their teaching methods. In particular, the focus on quantitative skills and the neglect of qualitative skills, and in particular of ethics education, has been condemned. On this basis, Martin Modes surveyed leading business schools in Europe and North America to assess commitment to ethics teaching and, in particular, whether the financial crisis has influenced teaching. He concludes that there are a number of shining examples but that the majority of survey respondents, despite recognizing the importance of ethics education, could not exemplify concrete measures targeted at sensitizing MBA students to ethical issues. Felix Werdecker: Interessenkonflikte im Investment-Banking durch eine Clearingpflicht für standardisierbare OTC-Derivate (Conflicts of Interest in the Investment Banking Industry – Bringing Over-The-Counter Derivative Products on Exchange) Felix Werdecker recognized that, despite the common interest in stable and efficient financial markets shared by regulators and investment banks alike, regulators are primarily responsible for stability and investment banks are primarily concerned with their own efficiency. This can lead to a conflict of interests with regard to specific regulatory measures such as in the current debate on mandatory clearing for derivative products which are currently traded ‘over-the-counter’. Felix Werdecker shows that, given that the ongoing conflict and uncertainty is negative for all parties, analyzing the conflict from an ethical perspective (in terms of understanding the role of financial markets in society) could exemplify the most appropriate compromise and contribute to resolving the conflict. Christina Kleinau & Prof. Dr. Nick Lin-Hi: The (broken) link between ag- ricultural commodity speculation and sustainable development: A litmus test for the finance industry (forthcoming) Traditionally, speculators in agricultural commodities aimed to profit from buying (selling) a commodity at a certain price today and selling (buying) the asset at a higher (lower) price at a future date. In their attempts to predict future price changes, these speculators have an incentive to uncover new information on demand and supply. This information is important for producers and consumers of commodities, and hence speculation is socially valuable. However, a new kind of speculator has come to dominate the market for agricultural commodities: index speculators. These speculators aim to profit passively from long term price trends and hence, have no incentive to search for new information. The paper argues that the presence of these speculators in commodity futures markets has had a distorting effect on prices. On November 22, 2013 the project “V Faktor: Verantwortungsvoll Wirtschaften für Mitteldeutschland” (R Factor: Responsible Business in Central Germany) was presented to the public. The picture shows its initiators, Jörn-Heinrich Tobaben from the Industrial Initiative for Central Germany, as well as Jörg Müller, director of IdeenQuartier, on the left and Prof. Suchanek together with his research associate Anne Labahn on the right. The Dr. Werner Jackstädt Chair of Economic and Business Ethics supervised a student council project for the V Faktor initiative which provided the theoretical foundation for the V Faktor Initiative. Sport is Fun Sport is good for health and well-being and can contribute to building a sense of community. And it is a big industry. This final fact may affect the prevailing understanding of the game: unlike amateurs, professional players are offered an extrinsic source of motivation for partaking in sports and this may contribute to specific conflicts between self-interest and morals. In her dissertation “The Golden Rule in Sports,” Alicia Bockel investigates this issue from an ethical point of view, analyzing the reasons for conflict between self-interest and morals in professional sport as well as offering a normative orientation as to how to behave in situations of conflict. A basic cause of such conflicts is competition, which is itself a crucial prerequisite for the “sweet tension” which fascinates fans and (paying) spectators. “Invest in the con­ ditions of social cooperation for mutual advantage.” Golden Rule Alicia thus argues that competition can be seen as a means for a deeper rooted common interest among all involved, namely the interest that the game takes place. To make this happen, credible rules are indispensable - but rules alone do not suffice. A further pre-requisite is the understanding on behalf of the athletes (and others) that it makes sense to adhere to the rules, so that the game is maintained. These inter-relationships can be nicely summarized, as Alicia shows, in the Golden Rule “Invest in the conditions of social cooperation for mutual advantage,” where the concept of “conditions” is tantamount to a system of fair competition. DR. WERNER JACKSTÄDT CHAIR OF ECONOMIC AND BUSINESS ETHICS Chair DONOR Dr. Werner Jackstädt Foundation Chair Supporter Stifterverband für die Deutsche Wissenschaft Chair Holder Prof. Dr. Andreas Suchanek Core competencies/ Research interest _corporate responsibility _economic and business ethics _management of trust and integrity _methodology of social sciences _theory of sustainability Contact hhl.de/ethics 42 HHL RESEARCH REPORT 2014 INNOVATION AND ENTREPRENEURSHIP 43 Prof. Dr. Andreas Pinkwart The Support of Human Capital in Start-Ups Through Coaching and Advisory Boards As we know from literature, startups face challenges in the form of newness, youth and smallness, while managerial and environmental complexity, dynamism and uncertainty are usually very high. Furthermore, entrepreneurs may lack sufficient competencies and resources during the early stages. These problems may be especially important in high-technology environments of high complexity, which demand very specialized knowledge and capabilities as well as high resource input. To survive despite those disadvantages, efficient utilization of external resources is critical during early and later stages of entrepreneurial development. Our research focuses on two different alternatives for overcoming those obstacles, namely founders-coaching and an advisory board, which have the potential, among other things, to compensate for some of the above-mentioned shortcomings. STIFTUNGSFONDS DEUTSCHE BANK CHAIR OF INNOVATION MANAGEMENT AND ENTREPRENEURSHIP Research on High-Tech Start-Ups and Open Innovation This research project examines innovative financing methods such as crowd funding and crowd investing, which coordinate the supply and demand of small monetary amounts for the start and growth of new ventures. Platforms like Seedmatch or Innovestment are mediators between investors and young startups and have the aim of closing the financing gap in early stages through supplying high-risk shares to the peer group. This means it can help startups to avoid one of the biggest founding constraints, namely the lack of starting capital. The pluralism of crowd investment offers founders several new possibilities to finance a business in the early stages. Crowd investing could become a promising instrument alongside other classical start-up financing methods like bank loans, money from family and friends, scholarships or venture capital. Especially for new ventures with financial needs below the upper investment limits and a preference for equity resources, the method can offer a new, easy obtainable and reliable way to source capital. In an ongoing series of papers, we define crowd investing, distinguish it from crowd funding and other methods, and analyze it with special regard to its methods, advantages and disadvantages. Furthermore, we take a closer look at the different stakeholder groups like we do in a special analysis on the investor motivations, expectations and needs. The German market provides manifold possibilities to support young entrepreneurs, supplied by different experts like business angels and business consultants, etc., who support founders in dealing with problems. Professional titles like “Unternehmensberater” (“consultant”) or “Gründercoach” (“founders coach”) are not legally protected, and neither requirements nor professional qualifications are defined. As a consequence, we face an non-transparent market structure with widely varying methods, which reduces the comparability. At the same time, the founders obtaining support in terms of coaching or consulting are also a very heterogeneous group, with different life histories and consequently different capabilities and needs. On the other hand, academic literature on foundercoaching as a core part of entrepreneurship education in Germany is scarce. Therefore, the research project addresses questions regarding the impact of the coaching-process with respect to the different needs of a founder on the practical side, and to the relevant existing literature on the theoretical side. In addition to coaches and consultants, institutionalized boards can contribute to overcoming entrepreneurial disadvantages. Theory focuses mainly on boards of directors in (mature) familyowned businesses and empirical investigations often use Anglo-Saxon data. There are reasonable considerations to adapting those findings to two-tier corporate governance systems as in Germany, in entrepreneurial contexts and for voluntary advisory boards. We want to close this research gap, since the-se boards have many advantages and first estimates suggest that 10 to 20 percent of startups use it. Therefore, we explore the experiences and opinions of founders with qualitative as well as quantitative methods. Among other topics, the inductive research process focuses, mainly on reasons for or against advisory boards, their roles and functions, the process of introduction. The research project will support founders and venture capitalists in the decision to introduce (or not) advisory boards and how to organize them. Leading-Edge Cluster BioEconomy The Excellence Cluster BioEconomy is a construct of several clusters located mainly in the state of SaxonyAnhalt. It is one of five Excellence Clusters throughout Germany which is funded by the Ministry of Educa­ tion and Research (BMBF). The BioEconomy Cluster in central Germany focuses on the integrated material and energy use of non-food biomass for the production of materials, chemicals, fuels and products from new materials. Cross-cluster material flow management as well as the development, scaling and implementation of production procedures by the industry allow the optimization of the value adding process in bio mass production. With its Stiftungsfonds Deutsche Bank Chair of Innovation Manage­ ment and Entrepreneurship, the Chair for Marketing Management and the Heinz Nixdorf Chair of ITbased Logistics, HHL is responsible for the accompanying research within the cluster focusing on the development of competitive strategies and control tools. The Stiftungsfonds Deutsche Bank Chair of Innovation Management and Entrepreneurship is supporting the leading edge-cluster in the process by giving advice on optimizing the innovation management process, creating innovative ideas, analyzing its innovation potential and implementing the outcome by supporting the business modeling process and founding new ventures. Strategic Management in the Early-Stage Financing of German High-Tech SMEs: a Longitudinal Empirical Study In a joint research project run together with the TU Dresden, we are attempting to find out more about early-stage financing of German high-tech SMEs. We therefore took two points of view: on the one hand, we want to analyze how a venture capital fund can be managed more successfully and on the other hand, we look for success factors in German hightech SMEs. The lack of research in the area of hightech SMEs is pointed out many times in literature. A holistic view of the founding process and the interfaces between the different success variables is missing. For this reason, we have taken a broad view and structured our research project into the following six areas: internationalization, personal characteristics, management support, risk management, networks and technology. This allows us to interconnect the findings of the different areas. A weakness of previous studies was that they focused only on one point in time and mostly used the same ready available data base, VentureXpert, which mainly consists of US ventures. A comprehensive European data set was missing. Therefore, we conducted a longitudinal study in Germany. We collected data from 124 high-tech startups financed by 8 venture capital firms. “Venture financing is key for the success of high-tech start-ups.” Prof. Dr. Andreas Pinkwart 44 HHL RESEARCH REPORT 2014 The data was derived from the original deal documents (e.g. business plans, investor decision files and CVs of the founders) and so we attained highly reliable data. Having in-depth data enabled us to not only test our hypotheses quantitatively but also to come up with new ideas from the qualitative perspective. First results led to national and international publications and conference presentations. We also presented INNOVATION AND ENTREPRENEURSHIP 45 preliminary results to the participating venture capital fund and received positive feedback. A presentation at the BVK Fachgruppensitzung “Venture Capital- und Mittelstands-Finanzierer” will follow soon. The Bun­ desverband Deutscher Kapitalbetei­ligungsgesell­ schaf­ ten (BVK) is the biggest private equity association in Germany. The invitation to present at its specialized meeting shows the importance of the research not only for academia but also for practice. At HHL we put a great emphasis on internationalization. We are particularly interested in why the internationalization rate of German high-tech SMEs is low compared to other countries like the US even though Germany is known for its strong global position in both innovation and export. We hope to come up with new findings in the next year. The project received external funding from the Savings Banks Finance Group (Sparkassen-Finanzgruppe) to support the research activites. Open Innovation: the Exploration and Exploitation of Knowledge The landscape for innovation management has shifted dramatically, especially during the past ten years. This change has been driven by a variety of technological and social forces which have moved the emphasis from knowledge production to knowledge transaction and flow. Innovation was traditionally viewed as taking place mostly within a single company, and was mainly carried out through a single department, namely Research and Development (R&D). In the wake of the changes witnessed, the concept of open innovation has emerged, with processes that are characterized as crossing company boundaries. Open innovation is defined as ‘the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and to expand the markets for external use of innovation, respectively’ (Chesbrough et al., 2006; 1). Open innovation is a broad concept encompassing different dimensions. However, most research distinguishes between two main dimensions of open innovation practice: technology exploitation (i.e. profiting from internal organizational knowledge) and technology exploration (i.e. profiting from external sources of knowledge). Our research at-tempts to answer questions related to both dimensions as follows: - Exploration: Bringing in knowledge from suppliers, clusters, strategic alliances and universities. In practice, organizations need to learn to manage a ‘knowledge supply chain’ in which partners are increasingly selected for their knowledge contribution in an act of co-creation of innovation. They need to find new partners as well as develop deeper links with existing ones, and they need to be able to construct high trust relationships which allow extensive information sharing. Our research focuses especially on the role of trust in a modern and open ecosystem with multiple stakeholders. This role starts from the very basic level of trust required to initiate a shared project between any of these stakeholders, includes conducting research or business together through trusted knowledge intermediaries, and goes up to the collaborative level of trust in a direct long-term strategic alliance. Trust is gaining more and more value and is even replacing contracts as a governance mechanism in some contexts. Furthermore, our research focuses on the role of 21st-century universities as innovation engines and entrepreneurial hubs. We track the current developments in research institutes, as they come closer in working with industry. - Exploitation: Acceleration of high involvement innovation through new technologies We explore the current context of involving employees in innovation as an exploitative open innovation strategy for harnessing internal innovations. Whilst long-term strategic benefits could flow from organizing enough participation across the workforce, creating structures that sustain such a culture is a highly complex process. The introduction of new technologies seems to create a new momentum for disseminating high involvement, yet evokes a multitude of new challenges. Reacting to these requires a conscious adjustment of established routines and cultural habits, and our current and future empirical research looks at this aspect as well. - Involvement from the Periphery: the untapped knowledge of temporary and contract employees – how flexible are organizations? In recent years, there has been a special interest and much controversy about the flexibility of organizations. Organizational flexibility refers to the degree of responsiveness of firms to determine and undertake necessary changes in their products, processes, activities, business models, and different organizational arrangements to ensure their their survival and their success in competition with other firms. This stand of research sheds light on two interrelated key trends that help organizations attain flexibility, although from different standpoints: open innovation (as illustrated earlier) and labor market flexibility, which is achieved by the adoption of flexible forms of employment, such as temporary work and contract employees. Our research aims to explore the nature of temporary employees’ involvement in innovation within an open innovation culture; a culture in which employees on the organization’s periphery are also recognized as valuable sources of innovation. STIFTUNGSFONDS DEUTSCHE BANK CHAIR OF INNOVATION MANAGEMENT AND ENTREPRENEURSHIP Chair Donor Stiftungsfonds Deutsche Bank Chair Holder Prof. Dr. Andreas Pinkwart Core competencies _Venture capital and crowd financing of high-tech start-ups – Risk manage ment, trust & new instruments _Internationalization strategies of high-tech startups _Open innovation: the role of trust - employee involvement in inno vation - & knowledge intermediaries _Management capital support for start-ups Contact hhl.de/innovation Leipzig Entrepreneurship Lecture A Bridge Between Entrepreneurship Research & Practice The Leipzig Entrepreneurship Lecture Series was established in 2011 by Prof. Dr. Andreas Pinkwart, chairholder of the Stiftungsfonds Deutsche Bank Chair of Innovation Management and Entrepre­ neurship. Within this series HHL Leipzig Graduate School of Management invites distinguished speakers in entrepreneurship once a year to interact with students, faculty members and business leaders to talk about their latest research projects. The aim of the series is to foster the dialogue between entrepreneurship theory and practice. For our 1st Leipzig Entrepreneurship Lecture in 2011 we welcomed Prof. Dr. Friederike Welter from the University Siegen with the topic “Women as Entrepreneurs – Insights from Research”. In 2012 we discussed “Female Founders and Success?” at our 2nd Leipzig Entrepreneurship Lecture with Prof. Dr. Christine Volkmann from the University of Wuppertal. The 3rd Leipzig Entrepreneurship Lecture took place on May 31, 2013 and was organized together with HHL’s Accelerate@HHL student initiative as a part of the 2013 Accelerate Conference taking place on the same day. Under the topic “Venture Capital for New HighTechnology Firms” the latest trends of high-tech startup financing were presented and discussed among an expert panel, whilst the Accelerate Conference dealt with the operational implementation of sustainable business models. The starting points for the discussion were the results of a current research project in the field of venture capital financing conducted by Prof. Dr. Michael Schefczyk (TU Dresden) and Prof. Dr. Andreas Pinkwart (HHL). In his introduction Prof. Schefczyk emphasized the importance of the venture capital market for the German economy, albeit only being a segment representing a small (currently 9%) portion of the transaction volume of private equity firms. By contrast, large buyout transactions monopolize the private equity market. While Mr. Christian Vogel (Süd Beteili­ gungen GmbH) stated the German industry in general needs more entrepreneurs and financial resources in order to raise the amount of marketed inventions, Dr. Martin Pfister, who brought in his experience as Senior Investment Manager at High-Tech Gründerfonds GmbH, highlighted the importance of choosing the right investor: one that fits to the needs of the start-up and shares the same language and worldview. Following his own example Mr. Jozsef Bugovics (Blue Corporate Finance AG) encouraged the audience to try and realize their ideas themselves no matter what barriers there might be. Considering this, Mr. Roland Oetker (ROI Verwaltungsgesellschaft mbH), active as business angel, advised to use the window of opportunity as long as it exists. To overcome those barriers the representative of the founder’s perspective, Prof. Dr. Sylvia Roth (Co-Founder of Roth &Rau AG), encouraged entrepreneurs to use every support available by convincing other people of their products. Panelists of the 3rd Leipzig Entrepreneurship Lecture at HHL: A. Pinkwart; M. Schefczyk; M. Pfister; S. Roth; C. Vogel, J. Bugovicz, R. Oetker Self-Management Initiative Leipzig As one of five cooperating institutions in the region of Leipzig, HHL Leipzig Graduate School of Management hosts an office of the SMILE project at the Stiftungsfonds Deutsche Bank Chair of Innovation Management and Entrepreneurship. SMILE stands for the “Self-Management Initiative Leipzig” and supports academic founders in the science and innovation region of Leipzig. Students, alumni and academic staff from Saxonian universities who are interested in starting their own business can attend various seminars, workshops and coachings around the topic entrepreneurship. The research associates Nagwan Abu El-Ella, Dorian Proksch and Eric Weber organize and implement these trainings, workshops and coachings bringing in their academic expertise of their research topics. Hence, Nagwan Abu El-Ella offers innovation management courses, while Dorian Proksch focuses on venture capital financing. Also Eric Weber provides, amongst others, courses related to management support. By this current academic knowledge can be transferred into practice and furthermore it guarantees high practical relevance of research. Like in previous years founders coached at the HHL’s SMILE office were granted again the popular EXIST founder scholarship and reached very good positions at entrepreneurial competitions. SMILE is a cooperation of the University of Leipzig, HHL Leipzig Graduate School of Management, Leipzig University of Applied Sciences, Helmholtz Centre for Environmental Research - UFZ and AKAD. SMILE is financed by the European Social Fund, the Saxon State Ministry for Economic Affairs, Labour & Transport and the Saxon State Ministry for Science and Arts. 46 HHL RESEARCH REPORT 2014 INNOVATION AND ENTREPRENEURSHIP 47 Schumpeter Junior Professorship for Entrepreneurship and Technology Transfer Creating an Incubator for new Business Ideas Research The chair is part of the academic group “Innovation and Entrepreneurship” at HHL. The chair’s current research focus is on business models and business model innovation (BM/BMI) in the context of changing technological and social environments. Three students –Andrew German, Christian Comberg, and James Downs– are currently pursuing their doctoral training at the chair, studying business models/business model innovation in three overlapping but different contexts. Andrew German is investigating BM/BMI in the context of Internet-based firms. Christian Comberg is studying BM/BMI in a diverse range of industries and markets. James Downs is working on understanding the role of BM/BMI in the context of the modern biopharmaceutical industry. In addition, 8 out of 16 master’s theses written in calendar year 2013 focused on the phenomenon of BM/BMI. For example, Gregor Viet, a graduate in the MSc 5 class, wrote a master’s thesis entitled “Business Model Innovation in the Retail Industry: Growth by Serving the Silver Generation.” Other BM/BMI-focused master’s theses also studied the phenomenon in a variety of industries and contexts. The chair also has research interests in hybrid value creation (i.e. the process of generating additional value by innovatively combining products and services) and open innovation (i.e. a paradigm that postulates the integration of external sources into the innovation process). “The Schumpeter Junior Professorship strengthens HHL’s profile as an international business school and as an incubator for new business ideas and start-ups in the Leipzig innovation region.“ Transfer Jun.-Prof. Dr. Vivek K. Velamuri The Schumpeter Junior Professorship in Entrepreneurship and Technology Transfer was founded in March 2012, and is sponsored by the Leipzig Foundation for Innovation and Technology Transfer. The overriding goal of the professorship is to promote entrepreneurship in the region of Leipzig. The philosophy of the professorship has three distinct goals: Teaching: Provide interactive and dynamic lectures where the necessary tools are presented so students can further develop their interests in the areas of entrepreneurship and innovation Research: Conduct and publish research on topics that are relevant to industry Transfer: Act as an enabler and promoter of entrepreneurship and technology transfer in the region The chair is actively involved with the transfer of knowledge from within HHL to various external partners through consulting projects. The transfer activities aim to directly benefit both research institutions and companies based in the region. We either consult for external organizations in solving current business challenges faced by them or help develop business plans for entrepreneurial ventures. Some transfer projects that the chair has been involved in 2013 are listed in the table. In addition, all teams that develop their business plans under the chair’s guidance are provided with opportunities to interact with potential investors. Network with Research Institutions Based in the Region Deutsches Biomasseforschungszentrum (DBFZ) Consulted the German Biomass Research Institute on creating a bioenergy inno­ vation hub in Leipzig Leibniz Institute of Surface Modification (IOM) Consulted IOM to develop a strategy for the founding of a technology center on “Ultra Precision Surfaces” in Leipzig Translational Centre for Regenerative Medicine (TRM Leipzig) Developed a business plan for a prospective startup from TRM that has developed a revolutionary approach for treating progressive myopia Network with Companies Based in the Region Delta-Vir GmbH HiperScan GmbH Melodicus GmbH i.Gr Nextbike GmbH Teaching Potential Investors Invited to Class in 2013: Sören Schuster, Managing Director, Technologiegründerfonds Sachsen (TGFS) | Carsten Petzold, Co-Founder & CEO, RockPetz Ventures | Pawel Chudzinski, Co-Founder and Managing Partner, Point Nine Capital | Thomas Rappold, Founder and Board of Director, Numbrs AG | Janek Weigl, Head of FORUM MEDIA Ventures | Ralph Riecke, Investment Manager, hub:raum, Incubator of Deutsche Telekom AG Entrepreneurs and Intrapreneurs Invited to Class in 2013: Christian Hetke, Founder, Futalis | Dirk Masurat, Founder, Ringekaufen.com | Fabian Schaaf, Founder, Bestattungen. de | Gebhard Ottacher, COO, Teach for Austria | James Downs, Independent Consultant, Biotech Developed a business plan for a biopharmaceutical startup that is currently working on a novel cancer treatment Consulted the young spin-off from the Fraunhofer Institute for Photonic Microsystems IPMS on their European market expansion strategy The chair is currently consulting the online music-teaching startup on its business model to enter both the b2b and b2c segments The chair is currently consulting the Leipzig based bike-sharing company on a implementing a new service offering Program Chair at EURAM Jun.-Prof. Dr. Velamuri was appointed to the Program Chair for the Innovation Special Interest Group (SIG) at the European Academy of Management (EURAM). SCHUMPETER JUNIOR PROFESSORSHIP in ENTREPRENEURSHIP AND TECHNOLOGY TRANSFER Chair Donor Leipzig Foundation for Innovation and Technology Transfer Chair holder Jun.-Prof. Dr. Vivek K. Velamuri Core competencies/ Research interest _Business models/Business model innovation _Hybrid value creation _Open innovation _Business plans Contact hhl.de/entrepreneurship 48 HHL RESEARCH REPORT 2014 INNOVATION AND ENTREPRENEURSHIP 49 Dr. Hagen Habicht, Executive Director, CLIC Entrepreneurial Open Innovation Inspired by the open source world of software development, open innovation is seen as an emerging phenomenon of largely self-organized, self-motivated, internet-based, dispersed, but collaborative actors – this is called emergent open innovation. Research and practice focus on independent participants and emphasize their open interactive collaboration. User innovators, such as the inventors of kiteboarding or innovating patients, are described by Eric von Hippel (1986) as “those who innovate to use, whereas producer innovators (companies) innovate to sell”. To date, examples of user innovations have been collected by researchers from many different industries in order to show the omnipresence of this phenomenon and its outstanding relevance. However, to date research has been unable to explain why users actually innovate in the first place, and how their innovations impact on society. CENTER FOR LEADING INNOVATION & COOPERATION (CLIC) Passionate researchers for Leading (Open) Innovation vinka bravo The Center for Leading Innovation & Cooperation (CLIC) is a research facility committed to leading edge research in the fields of open & service innovation. It is headed by academic directors Prof. Dr. Kathrin M. Möslein (Friedrich-AlexanderUniversity Erlangen-Nuremberg & HHL Leipzig Graduate School of Management), Prof. Anne Sigismund Huff, PhD (National University of Ireland Maynooth), and Prof. Dr. Prof. h.c. Dr. h.c. Ralf Reichwald (HHL Leipzig Graduate School of Management & Technische Universität München). As executive director, Dr. Hagen Habicht leads the team of CLIC researchers. He is pursuing his academic career in the field of stakeholder innovation. Currently, CLIC conducts research in several large collaborative research projects funded by the German Federal Ministry of Research and Education and by the European Union, and hosts the Peter Pribilla Foundation (TUM). In addition, CLIC runs joint initiatives with more than 60 corporate partners and an international academic network. The deep commitment of young scholars and focus on innovation make CLIC a melting pot for creative ideas, international collaboration within academia, practice and teaching across international boundaries. Leading Open Innovation Kiteboarding is a trendsetting sport that grew out the entrepreneurial spirit of users: Sports enthusiasts combined surfing and sailing. The kiteboarding industry has matured quickly and has been steadily growing since its beginnings in the early 2000s. Likewise, many corporations practice open innovation: Airbus recently initiated a fruitful and innovative network of suppliers, customers and other stakeholders to build the new A380. In sum, practice provides sound evidence of successful open innovation. There are many different approaches to open innovation; each follows different paradigms, uses different toolsets and is thus quite distinct. Two fundamentally different perspectives can be distinguished; the first is entrepreneurially self-organized and self-motivated collaborative activity to achieve a common goal. The second is an organizational strategy to strengthen innovative capabilities by embedding innovation activities in stakeholder networks. Example of successful Open Innovation CLIC has started to answer this question by exploring a very unique and important field of user innovation: the healthcare sector. In a first framing study, Dr. Habicht and his co-authors built on cases of patients (users) who invented medical devices and treatments in order to help themselves in the first place. In a second step, these patients often moved on to produce their solutions for a broader market and took on the role of user entrepreneurs. When the given situation failed to provide answers, the studied patients developed four innovation strategies (exploitation of personal professional expertise, motivation with basic ideas, in-depth user experience, exceptional individual risk-taking) to help themselves and thus many others (Habicht, Oliveira, & Shcherbatiuk, 2013). How can companies benefit from open innovation e.g. by sustainably boosting their own innovation performance? In contrast to individual actors and user entrepreneurs, companies strive to strategically broaden their resource base for innovation well beyond their organizational boundaries – often while retaining internal R&D capabilities. This is how Airbus developed the A380: It kept its innovativeness by deliberately driving its partners to innovate. We name this corporate approach strategic open innovation. Strategic Open Innovation The strategic open innovation paradigm is based on the observation that creative and valuable ideas frequently originate not from R&D teams, but from people outside R&D departments. Current literature distinguishes three broad groups of innovators: core-innovators within the organization (R&D people), peripheral inside innovators (all other employees), and outside innovators, such as suppliers and (lead) users (Zerfass & Möslein, 2009). “The web is a fundamental facilitator: It enables Open Innovation tools for high collaboration, vast distinction, high-speed inter­ connection, and a global memory.” Prof. Dr. Kathrin M. Möslein Academic Director, CLIC However valuable, directly affected employees may refuse ideas from third parties, because they depart from common practices. Literature refers to this as the Not Invented Here syndrome (NIH). Therefore it is the task of decision makers to leverage in- and outflows of knowledge in organizations in order to improve innovativeness. Particularly when facing NIH, “sensegiving” is an important managerial practice. For executives managing complex corporate landscapes, it is important to give close attention to the context of leadership systems. Rather than focusing on influencing strategies that can be easily understood by a system’s members, leaders must engage in “sensegiving” (Neyer, Mckiernan, & Moeslein, 2013) to strengthen open innovation initiatives. Further research findings suggest that strategically initiating open innovation contributes to corporate performance and has a strengthening impact on social capital, which in return positively impacts company performance (Rass, Dumbach, Danzinger, Bullinger, & Moeslein, 2013). 2013 Award of the Strategic Management for Anne Sigismund Huff The Strategic Management Journal Best Paper prize, recently renamed “The Dan and Mary Lou Schendel Best Paper Prize”, is an annual award that honors substantial work published in the SMJ. This year’s award went to Anne Sigismund Huff, professor at NUIM, co-director of the Center for Leading Innovation and Cooperation (CLIC) and visiting professor at Institute for Innovation & Value Creation at the University of Erlangen-Nuremberg, and her co-authors Pamela S. Barr, Georgia State University, and J. L. Stimpert, Colorado College, for the paper entitled “Cognitive Change, Strategic Action, and Organizational Renewal” in Volume 13, Special Issue Summer 1992. Previous award winners include Oliver Williamson, Rebecca Henderson, Sidney Winter, Andy Van de Ven, Kathy Eisenhardt, Robert Grant, JC Spender, Henry Mintzberg, Gabriel Szulanski, David Teece, and James March. New Book on Open Innovation Leading Open Innovation edited by Anne Sigismund Huff, Kathrin M. Möslein and Ralf Reichwald. This volume describes the ways that OI expands the space for innovation, describing a range of OI practices, participants, and trends. The contributors come from practice and academia, and reflect international, cross-sector, and transdisciplinary perspectives. They report on a variety of OI initiatives, offer theoretical frameworks, and consider new arenas for OI from manufacturing to education. leadingopeninnovation.com 50 HHL RESEARCH REPORT 2014 HHL RESEARCH REPORT 2014 51 “Among others, toolkits provide a costeffective approach to finding and developing new ideas that are often emotionally engerizing for those involved.” Today, companies practicing open innovation can employ a range of five basic tools (Möslein, 2013): (1) innovation contests, (2) innovation markets, (3) innovation communities, (4) innovation toolkits, and (5) innovation technologies. In particular innovation communities are of high relevance for recent research projects at CLIC. Innovation communities are open groups of people who voluntarily engage in a common field of interest and create new solutions collaboratively (e.g. Franke & Shah, 2003). Frequently cited success stories are the open source community of Linux and the app developer communities of Apple and Android. Current research recognizes communities as a viable means of coordinating even complex innovation tasks. Prof. Anne Huff, PhD Roger Green Academic Director, CLIC However, research falls short in explai­ ning how knowledge flow within innovation communities can be improved using modern technology. The research project ‘BRIDGE - Vocation and Education in Tunisia via Remote Service’ suggests that modern colla­ boration technology enables innovation team members to improve their boundary-spanning skills, i.e. to communicate more effectively. More particularly, it is expected that (virtual) collaborative work will be shown to support the strength of innovation communities in organizations. To achieve this, know­ ledge barriers have been identified and a software has been designed which will be used as a shared boundary object. The impact of this software on lowering particular knowledge boundaries will be investigated in upcoming studies. We expect to find that collaboration in an IT environment enables innovation communities to further exchange and capture knowledge and overcome know­ ledge boundaries. “Collaboration tools are essential to innovation, because interconnecting widely spread people means to overcome knowledge boundaries.” Prof. Dr. Ralf Reichwald Academic Director, CLIC Leadership for Innovation: “Visualizing the Invisible” 2013 Peter Pribilla Conference Example of successful Open Innovation Researching communities is not only very inspiring, it is also necessary for understanding how value creation in this new area is performed and how firms can purposefully leverage Open Innovation. One central challenge for companies in Germany today is demographic change. Besides consequences for our society it is also nurturing tensions within companies. Increasing pressure for innovation is to be met by an aging workforce. Corporate innovation communities seem to be a rewarding however underresearched approach: How can companies make use of the innovation potential of all employees, be they younger, middle-aged, or older? How should innovation communities be managed to support the participation of employees of all age groups to enhance exchange of knowledge and experience? The research project ‘TANDEM - Ex­ change of Innovation and Experience in Demographic Transition’ focuses on these central questions. Researchers at CLIC analyze the cooperation of age-diverse TANDEMs (teams of two or more employees) within innovation communities. First results show that factors on the individual level (e.g. recognition), the project level (e.g. diversity of skills) as well as the organizational level (e.g. corporate culture) influence the exchange of knowledge and experience within these TANDEMs. As an approach to improve cooperation within TANDEMs, CLIC evaluates software- and workshop-based methods. Our results support the management of age-diverse innovation communities within companies by increasing transparency regarding influencing factors and adapted methods. Whereas such innovation communities remain largely emergent with respect to topics and solutions, innovation toolkits restrain the innovation space to a predefined area. Today, customers can individualize anything - from simple goods such as apparel (e.g. T-Shirts, suits, accessories) or more intricate creations (e.g. fragrances, novels) to highly complex products such as cars. Literature consistently claims interpersonal feedback (either from friends and peers, or from professionals) during the design process to reduce complexity of decisions as well as to increase hedonic value. So far, it is unclear how practice responds to this need and how relevant interpersonal feedback really is with respect to customer value. The research project KUMAC focuses on understanding “customer co-design”, a process in which customers actively create individualized products. Whether this process is realized in-store or entirely via the internet, efficient systems for customer co-design are the linchpin to leverage customer value from individualized products. In a recent study, CLIC has established a comprehensive overview about how providers of product individualization facilitate interpersonal feedback on preliminary designs. CLIC has analyzed 115 online offers of product individualization who support interpersonal feedback by different means. Our findings suggest three primary criteria for distinguishing individualization offers: shareability of design, social presence and type of feedback. Shareability of design captures the degree to which a preliminary design can be made available for discussion and collaborative rework. Social presence describes the intensity of interpersonal interaction within the co-design process. The type of feedback refers to the primarily addressed feedback partner: Social customer co-design focuses on giving customers the opportunity to share their designs with peers, friends, or their personal online community for individual feedback. Professional customer co-design primarily addresses the interaction between a single customer and sales representatives of the provider. Open Innovation Tools for Firm’s Success The current landscape of open innovation tools provides numerous means to be entrepreneurial and strategically successful. However, many questions concerning the management of open innovation remain unanswered. Given the considerable attention that open innovation is attracting in research and practice, it is no surprise that expectations of innovation managers are increasing. Open innovation research at CLIC focuses on the core issues of open innovation management, from the proper design of open innovation activities, through performance measurement schemes to competence development models. It investigates the micro foundations of this phenomenon along with its meso and macro effects for companies and our society at large. In April 2013, the conference of the Peter Pribilla Foundation at the TUM Institute for Advanced Study in Garching took place. The conference, hosted by the Peter Pribilla Foundation together with Technische Universität München (TUM) and HHL Leipzig Graduate School of Management, invited leaders and innovators from academia, business and consulting practice, policy making, and public management to discuss current research conversations on leadership for innovation. CLIC received funding for a new project starting in 2014: S-CPS – Social-Cyber Physical Systems The research focus is to shed light on the collaboration of cyber physical systems and people. New S-CPS are developed to facilitate and support services which accompany industrial production, e.g. repair or maintenance work, but which affect or interrupt regular production. The project aims to identify and analyze productivity-relevant factors for service operations to allow effective and efficient service operations, by respecting local and technical conditions, e.g. in the wind-energy production industry. The project is part of the overall initiative “Industry 4.0” financed by the Federal Ministry of Education and Research. S-CPS Furthermore, the conference highlighted the impressive research of the winners of the Peter Pribilla Foundation’s most outstanding bi-annual award winner, the TUM Research Excellence Award in Innovation and Leadership: _Prof. Karim Lakhani, PhD, Harvard Business School (2008) _Prof. Dr. Jan Marco Leimeister, University of St. Gallen (2010) _Prof. Dr. Marc Gruber, EPFL Lausanne (2012) For the first time, the conference with more than 150 international participants also presented in one forum the creative and fascinating results of 15 research projects run by 50 young scholars who have received funding from the Peter Pribilla Foundation within its research framework “Leadership for Innovation: Visualizing the Invisible”- a great success of the foundation. clicresearch.org // pribilla-stiftung.de CENTER FOR LEADING INNOVATION & COOPERATION Academic Directors Prof. Anne Sigismund Huff, Ph.D. Prof. Dr. Kathrin M. Möslein Prof. Dr. Ralf Reichwald Executive Director Dr. Hagen Habicht Core competencies/ Research interest _think tank and exploration lab for researchers and practitioners _current and future key challenges in the fields of leadership, innovation and cooperation _‘hot spot’ for exploring possible futures, designing innovations and learning across boundaries Contact clicresearch.org 52 HHL RESEARCH REPORT 2014 Publications and Conference Presentations 2012–2014 For further publications, see also: hhl.de/publications Publications 53 Dr. Ing. h.c. F. Porsche AG Chair of Strategic Management and Family Business Zülch, Henning; Wünsch, Martin; Detzen, Dominic; Wulf, Torsten; Meissner, Philip Book Chapters and Journal Articles Wulf, Torsten; Stubner, Stephan Wulf, Torsten; Stubner, Stephan In: Controlling, 24 (2012) 10, 523-528 Position-specific knowledge, new CEO learning and firm performance The Effect of a Pre-Deal Purchase Price Allocation on the Quality of Acquisition Decisions In: Problems and Perspectives in Management, 11 (2013) 1, 52-61 Strategische Planung und strategisches Controlling mit Szenarien Working Papers Stubner, Stephan; Wulf, Torsten; Landau, Christian; Gietl, Robert Wulf, Torsten; Hoffmann, Christian; Renner, Desirée In: Zeitschrift für KMU und Entrepreneurship: ZFKE, 61 (2013) 1-2, 115-136 Wulf, Torsten; Stubner, Stephan Strategische Planung und strategisches Controlling mit Szenarien Zukunftsfähigkeit deutscher Familienunternehmen Ergebnisbericht, 2013 HHL Center for Strategy and Scenario Planning, HHL Leipzig Graduate School of Management; Philipps Universität Marburg Conference Presentations In: Controlling, 24 (2012) 10, 523-528 Conference Presentations Christian Hoffmann; Torsten Wulf; Stephan Stubner Examining the Familiness Construct: Antecedents and Performance Effects of an Employee Orientation 13th Annual IFERA World Family Business Conference St. Gallen, Switzerland, July 2-5, 2013 1st HHL-Uni Marburg Early Ph.D. Colloquium on Family Firm Research Leipzig, Germany, September 3-4, 2013 CENTER FOR STRATEGY AND SCENARIO PLANNING Books Schwenker, Burkhard; Wulf, Torsten (eds.) Scenario-based Strategic Planning - Developing Strategies in an Uncertain World Wiesbaden: Springer-Gabler, 2013 ISBN: 978-3658028749 Sharma, Radha R. Sharma, Radha, R.; Mukherji, S. Executive Burnout: Prediction and prevention through HR interventions In: Pestonjee, D. M.; Pandey, S. eds. Stress and Work Los Angeles, London, New Delhi: SAGE Publications Response, 2013, 76-100 ISSN: 978-8132110880 Debiasing Illusion of Control: The Effect of Internal and External Advice Seeking 73rd Annual Meeting of the Academy of Management Orlando, USA, August 10-13, 2013 Prof. Dr. Torsten Wulf; Dr. Christian Brands Strategic Planning and Family Firm Performance 73rd Annual Meeting of the Academy of Management Indian Ethos as humanistic management principles: A case study of a family business organization In: World Humanism: Cross-cultural perspectives on ethical practices in organizations Palgrave Macmillan UK & USA, 2013, 178-193 ISBN: 978-0230300552 Succi, Chiara; Quaglia, R.; Sharma, Radha R. Strategy execution emergency: A focus on leadership and people alignment In: Srivastava, B. K.; Mahapatra, M. eds. Capability building for cutting edge organizations in new business order New Delhi: Excel books, 2013 ISBN: 978-93-5062-312-1 Meissner, Philip; Wulf, Torsten Antecedents and effects of decision comprehensiveness: The role of decision quality and perceived uncertainty In: European Management Journal (forthcoming) Wulf, Torsten; Meissner, Philip; Busse, Sabine Mit Katastrophen planen Unshackling management education through a trishul approach In: Pathik, P.; Sharma, Radha R.; Singh, S. eds. Reinventing the society: The search for a paradigm Macmillan Publishers India, 2013, 83-101 ISBN 978-93-5062-312-1 In: Technological Forcasting and Social Change, 80 (2013) 4, 801-814 In: European Journal of International Management, 7 (2013) 1, 6-30 Stubner, Stephan; Wulf, Torsten; Landau, Christian; Gietl, Robert Buyouts in Familienunternehmen – eine Herausforderung für Private Equity In: Zeitschrift für KMU und Entrepreneurship: ZFKE, 61 (2013) 1-2, 115-136 Ubiquitous and persuasive computing in education: Using a paradigm of innovation attributes for classifying and reviewing literature In: International Journal of Convergence Computing Inderscience Journal (international) ISSN on line: 2048-9137 ISSN print: 2048-9129 Case studies Sharma, Radha R.; Gupta, N.; Pardasani, R. FragraAroma – Accord in business, concord in family Emerald Emerging Markets Case Studies Collection (2013) ISSN 2045-0621 Permanent URL: 10.1108/EEMCS-06-2013-0085 Forthcoming in 2014 Shoma, Mukherjee 13th Annual IFERA World Family Business Conference St. Gallen, Switzerland, July 2-5, 2013 3rd German Conference of Family Firm Researchers St. Gallen, Switzerland, March 4-5, 2013 Sharma, Radha R.; Pardasani, R. Integrating ethical leadership and ethical practices in management education: A conceptual model Academy of Management, Philadelphia, USA, August 1- 5, 2014 Sharma, Radha R.; Sharma, N. Role of perceived gender equity at workplace and mental well-being: An empirical study Impact of cultural intelligence and communication effectiveness on global leadership preparedness India: Gurgaon MDI Management Development Institute, 2013 Shallini, Taneja 9th Workshop on Family Firm Management Research Helsinki, Finland, May 24-25, 2013 ICCR Chair of Corporate Responsibility and Governance Prof. Radha R. Sharma, Ph.D. Books Change Management and Organisational Transformation New Delhi: McGraw-Hill Education, 2013 (1st reprint) ISBN-10: 1259026442 ISBN-13: 978-1259026447 Sharma, Radha R.; Pathak, P.; Singh, S. eds. Reinventing the Society: Search for a Paradigm New Delhi: Macmillan, 2013 ISBN 978-9350-59465-0 Pathways to board directorship among women in India: An exploratory study Accepted paper at 73 Annual Meeting of Academy of Management (AOM) Orlando, Florida, August 9-13, 2013 (forthcoming) Prof. Vasanthi Srinivasan; Chandwani, R.; Jha, M. et al. Leadership for social enterprises: Moving beyond socially responsible leadership through Indian philosophical perspective Accepted paper for 29th Colloquium of European Group for Organizational Studies (EGOS) Montreal, Canada, July 4 – 6, 2013 (forthcoming) Prof. Vasanthi Srinivasan CSR in SME’s in India Addressed students of the Centre for African Studies at University of Leipzig Germany, December 6, 2012 Prof. Vasanthi Srinivasan Women professionals in India Addressed 200 women professionals at a leadership forum at EADS Munich, Germany, December 14, 2012 Spirituo-humanistic leadership paradigm for organizational development Academy of Management, Philadelphia, USA, August 1- 5, 2014 Prof. Vasanthi Srinivasan, Ph.D. Book India: Gurgaon MDI Management Development Institute, 2013 Book Chapters and Journal Articles Srinivasan, Vasanthi; Murty, L. S.; Nakra, M. An investigation into gender diversity, perceived gender equity and work engagement Career persistence of women software professionals in India European Academy of Management, Valencia, Spain, June 4-7, 2014 In: Gender in Management: An International Journal. Vol 28(2013)4, 210-227 ISSN: 1754-2413 Sharma, Radha R.; Sharma, N. Srinivasan, Vasanthi; Chandwani, R.; Jha, M. et al. Development and standardization of a measure of perceived gender equity at workplace European Academy of Management, Valencia, Spain, June 4-7, 2014 Succi, Chiara.; Quaglia, R.; Sharma, Radha R. Strategy Execution Emergency: A focus on leadership and people alignment 42nd IFTDO World Conference, Capability Building for Cutting Edge Organizations in New Business Order, New Delhi, India, April 24-26, 2013 Sharma, Radha R.; Pardasani, R. Integrating ethical leadership and ethical practices in management education Paper for round-table discussion on Socially Responsible Management Education, Academy of Management (AOM), Orlando, Florida, August 9-13, 2013 Addressed 30 participants from German companies Berlin, Germany, April 25-26, 2013 Alfried Krupp von Bohlen und Halbach Junior Professorship IN INTERNATIONAL MANAGEMENT Academy of Management, Philadelphia, USA, August 1- 5, 2014 Sharma, Radha R.; Pardasani, R. Corporate responsibility, governance and citizenship: Insights from India Measuring corporate economic and social performance by stakeholder approach Dr. Christian Brands The impact of successor generation discount in family firms: exploring nonlinear effects on exploration and exploitation Accepted paper at 73rd Annual Meeting of Academy of Management (AOM) Orlando, Florida, August 9-13, 2013 (forthcoming) Prof. Vasanthi Srinivasan Christian Hoffmann Family managers’ long-term orientation as a determinant of their performance impact HR system for scaling up of social enterprises: A case of affordable healthcare organization Sharma, Radha R.; Gupta, N.; Jaiswal, M.P. Christian Hoffmann; Prof. Dr. Torsten Wulf; Prof. Dr. Stephan Stubner Wulf, Torsten; Stubner, Stephan Position-specific knowledge, new CEO learning and firm performance Communicated to Inderscience (International) Doctoral Theses Sharma, Radha R. Cognitive benefits of scenario planning – its impact on biases and decision quality Integrating ethical leadership and ethical practices in management education: A conceptual model Conference Presentations Examining the Familiness Construct: Antecedents and Performance Effects of an Employee Orientation Prof. Vasanthi Srinivasan; Chandwani, R.; Nagadevara, V. et al. Prof. Vasanthi Srinivasan; Konrad, A. M.; Stickney, L. Orlando, USA, August 10-13, 2013 In: Harvard Business Manager, 35 (2013) 7, 80-82 Meissner, Philip; Wulf, Torsten In: Indian Journal of Training and Development, 43(2013)3 ISSN: 0971-5592 Sharma, Radha, R.; Pardasani, R. Sharma, Radha R.; Sharma, N. Book Chapters and Journal Articles Social entrepreneurship: A case of sustainable human development of the differently able Sharma, Radha, R.; Pardasani, R. Prof. Dr. Torsten Wulf; Dr. Philip Meissner Sabina Dienemann The concept of Familiness in Family Firm Research a literature review Journal Papers Sharma, Radha R.; Taneja, S. In: European Journal of International Management, 7 (2013) 1, 6-30 Buyouts in Familienunternehmen – eine Herausforderung für Private Equity Book Chapters and Journal Articles Narayana Hrudayalaya – How the HR practices and policies enable organizational strategy implementation In: Bhatnagar, J.; Bajaj, G.; Ghosh, S. Innovations in People Management: Cases in Organizational Behaviour, HR, and Communication, Gurgaon, India: Macmillan Publishers, 2012 ISBN-13: 9789350593370 ISBN: 9350593378 Dauth, Tobias Die Internationalität von Top-Managern. Aktienkursreaktionen auf die Benennung internationaler Vorstände und Aufsichtsräte Wiesbaden: Springer-Gabler (mir-Edition), 2012 ISBN: 978-3-658-00762-1 Book Chapters and Journal Articles Schmid, Stefan; Dauth, Tobias Does internationalization make a difference? Stock market reaction to announcements of international top executive appointments In: Journal of World Business, 49. Jg. (2014), advance online publication January 2013 doi:10.1016/j. jwb.2012.11.003 Schmid, Stefan; Dauth, Tobias; Kotulla, Thomas; Schulze, Stephan Conference Papers at peer reviewed conferences and Presentations Prof. Vasanthi Srinivasan; Chandwani, R.; Jha, M. et al. Politics of social enterprises: The role of influential people in scaling up Accepted paper at 73 Annual Meeting of Academy of Management (AOM) Orlando, Florida, August 9-13, 2013 (forthcoming) Porsche Holding: Automobile für Europa aus dem Salzburger Land In: Schmid, Stefan (eds.): Strategien der Internationalisierung. Fallstudien und Fallbeispiele (3rd edition) München: Oldenbourg, 2013, S. 161-173 Schmid, Stefan; Dauth, Tobias; Kotulla, Thomas Aldi und Lidl. Zwei deutsche Discounter auf Expansionskurs In: Schmid, Stefan (Hrsg.): Strategien der Internationalisierung. Fallstudien und Fallbeispiele (3rd edition) München: Oldenbourg, 2013, S. 533-579 54 HHL RESEARCH REPORT 2014 Schmid, Stefan; Dauth, Tobias; Kotulla, Thomas; Schulze, Stephan Ruhrgas und Gazprom. Keine Sonderrechte – trotz langjähriger Importbeziehungen und existierender Minderheitsbeteiligung In: Schmid, Stefan (eds.): Strategien der Internationalisierung. Fallstudien und Fallbeispiele (3rd edition) München: Oldenbourg, 2013, 175-191 Publications 55 Schwetzler, Bernhard Conference Papers / Presentations In: CORPORATE FINANCE biz, 4 (2013) 2, I Prof. Dr. Bernhard Schwetzler; Alexander Knauer Unternehmensbewertung in dominierten Situationen: Erweiterungen und Alternativen zu IDW S1 Arnold, Sven; Lahmann, Alexander; Schwetzler, Bernhard Multiples und Beta-Faktoren für deutsche Branchen Secondary buy outs; Add-on strategies in PE investments Practice Day with Solon Management Consulting Munich, Germany, November 28-19, 2013 In: Corporate Finance biz, 3 (2012) 8, 410-413 Schmid, Stefan; Dauth, Tobias Internationale Diversität im Top-Management – Eine empirische Analyse der DAX-30-Unternehmen In: Zeitschrift für betriebswirtschaftliche Forschung, 64. Jg. (2012), Nr. 11, 772-802 Schwetzler, Bernhard Warum wir Grundsätze für die Erstellung von Fairness Opinions brauchen In: DER BETRIEB, 65 (2012) 45, M1 Conference Papers and Presentations Friedl, Gunther; Schwetzler, Bernhard Jun.-Prof. Dr. Tobias Dauth In: Petersen, Karl; Zwirner, Christian; Brösel, Gerrit (eds.): Handbuch Unternehmensbewertung. Funktionen, Moderne Verfahren, Branchen, Rechnungslegung Cologne: Bundesanzeiger Verlag, 2012, 722-740 Top Management Internationalization and Accounting Quality 4th Workshop on Top Management Teams & Business Strategy Research Copenhagen, Denmark, October 17, 2013 Wachstum und Inflation im Rahmen der Unternehmensbewertung Jun.-Prof. Dr. Tobias Dauth Working Papers 13th EURAM Annual Conference Istanbul, Turkey, June 27, 2013 Brendel, Markus; Schwetzler, Bernhard Jun.-Prof. Dr. Tobias Dauth SSRN Working Paper, 2013 Internationalization of Top Managers in Germany and the UK – Cross-national Differences or Similarities? Antecedents of Top Management Internationalization Bad matches last longer: unobserved heterogeneity across firm-owner matches 1st German-French Research Colloquium on International Management Lyon, France, June 3rd, 2013 Brendel, Markus; Schwetzler, Bernhard; Strenger, Christian Jun.-Prof. Dr. Tobias Dauth SSRN Working Paper, 2013 Top Management Team Internationalization – A Comparison between Germany and the UK 38th EIBA Annual Conference Brighton, UK, December 8th, 2012 The paradoxon of policy intervention: the case of capital gain taxation in Germany Hammer, Benjamin; Knauer, Alexander; Pfluecke, Magnus; Schwetzler, Bernhard Inorganic growth strategies in private equity: empirical evidence on add-on acquisitions SSRN Working Paper, 2013 CHAIR OF FINANCIAL MANAGEMENT Rudolph, Christin; Schwetzler, Bernhard Mountain or molehill? Downward biases in the conglomerate discount measure Books SSRN Working Paper, 2013 (revise and resubmit in: Journal of Banking and Finance) Schwetzler, Bernhard; Aders, Christian (eds.) Brendel, Markus; Rudolph, Christin; Schwetzler, Bernhard Jahrbuch der Unternehmensbewertung 2013: Fachbei­ träge, Bewertungskennzahlen, Unternehmensprofile Düsseldorf: Fachverlag der Verlagsgruppe Handelsblatt, 2013 ISBN: 978-3-942543-35-4 Book Chapters, Journal Articles and Others Knauer, Alexander; Lahmann, Alexander; Pfluecke, Magnus; Schwetzler, Bernhard Debt-related tax shields and private equity: myth or reality? In: The Journal of Applied Corporate Finance (forthcoming) Rudolph, Christin; Schwetzler, Bernhard Conglomerates on the rise again? A cross-regional study on the impact of the 2008-2009 financial crisis on the diversification discount In: Journal of Corporate Finance 22 (2013), 153-165 Hammer, Benjamin; Lahmann, Alexander; Schwetzler, Bernhard Multiples und Beta-Faktoren für deutsche Branchen In: CORPORATE FINANCE biz, 4 (2013) 6, 351-354 Hammer, Benjamin; Lahmann, Alexander; Schwetzler, Bernhard Multiples und Beta-Faktoren für deutsche Branchen A corporate finance application of the OaxacaBlinder decomposition: causes of the diversification discount SSRN Working Paper, 2013 Knauer, Alexander; Kengelbach, Jens; Brigl, Michael; Bielesch, Falk; Schwetzler, Bernhard Take a second look at secondaries: owners that raise their value-creation game can excel The Boston Consulting Group, Research Paper, 2013 Arnold, Sven; Lahmann, Alexander; Schwetzler, Bernhard The impact of credit rating and frequent refinancing on firm value SSRN Working Paper, 2012 Doctoral Theses The impact of industrial diversification on corporate transactions Leipzig: HHL Leipzig Graduate School of Management (forthcoming) In: CORPORATE FINANCE biz, 4 (2013) 2, 94-97 IACVA (International Association of Consultants, Valuators and Analysts) 2013 Annual Meeting Offenbach, Germany, October 18, 2013 Dipl.-Kfm. Markus Brendel; Dipl.-Kffr. Christin Rudolph; Prof. Dr. Bernhard Schwetzler Diversification discount revisited: An application of the Oaxaca-Blinder Decomposition 20th Annual Meeting of the German Finance Association (DGF) Wuppertal, Germany, September 27, 2013 20th Annual Conference of the Multinational Finance Society (MFS) Izmir, Turkey, June 30-July 3, 2013; Prof. Dr. Bernhard Schwetzler Inflation, Wachstum und Besteuerung (Inflation, groth and taxation) Jahresforum Unternehmensbewertung 2013 of the Fachverlag der Verlagsgruppe Handelsblatt GmbH Frankfurt on the Main, Germany, May 15-16, 2013 Zülch, Henning; Hoffmann, Sebstian Book Chapters, Journal Articles In: Steuern und Bilanzen: StuB, 31 (2013) 4, 134-139 Die Bilanzierung von Beteiligungen an assoziierten Unternehmen sowie Gemeinschaftsunternehmen auf Basis des überarbeiteten IAS 28 Bilanzpolitik im Rahmen der Entscheidung zur Erfassung einer Wertminderung gemäß IAS 36 – Empirische Analyse des Bilanzierungsverhaltens deutscher Unternehmen im Zeitraum 2004 bis 2010 Krauß, Patrick; Züch, Henning Zülch, Henning; Stork-Wersborg, Tobias In: Die Wirtschaftsprüfung, 67 (2014) 1, 34-42 Non-Audit Services and Audit Quality: Blessing or Curse? In: Journal of Applied Business Research, 29 (2013) 2, 305-326 Krauß, Patrick; Quosigk Benedikt M.; Zülch, Henning The impact of credit rating and frequent refinancing on firm value Midwest Finance Association 2013 Annual Meeting Chicago, USA, March 13-16, 2013 Prof. Dr. Bernhard Schwetzler Fremdkapital, Steuerersparnisse und Private Equity: Mythos oder Realität? Eine Analyse von Leveraged Buyouts zwischen 1997 und 2007 in Deutschland (Debt financing, tax saving and private equity: myth or reality? An analysis of leveraged buyouts in Germany between 1997 and 2007) Meeting of the sections “Venture Capital” and “SME” of the Germany Private Equity and Venture Capital Association (BVK) Berlin, Germany, March 14, 2013 Prof. Dr. Bernhard Schwetzler Inflation, Rechnungslegung und Unternehmenswert (Inflation, accounting, and firm value) Leipzig: HHL Leipzig Graduate School of Management, 2012 Theoretische Fragestellungen zur Bewertung von Unternehmen (Theoretical questions regarding the valuation of companies) Leipzig: HHL Leipzig Graduate School of Management, 2012 Werthaltigkeitsprüfung von Marken mit unbestimmter Nutzungsdauer gemäß IAS 36: Vermögenswertebene vs. CGU-Ebene In: Zeitschrift für internationale und kapitalmarktorientierte Rechnungslegung: KoR, 12 (2012) 11, 500-508 Zülch, Henning; Zimmermann, Jochen; Teuteberg, Torben; Knigge, Philipp Zülch, Henning; Höltken, Matthias In: Zeitschrift für Corporate Governance: ZCG 7 (2012) 6, 288-292 In: International Journal of Auditing, forthcoming Die „neue“ (Konzern-)Lageberichterstattung nach DRS 20 – ein Anwendungsleitfaden In: Der Betrieb, 66 (2013) 44, 2457-2465 Abbildung von Planvermögensdotierungen in der Kapitalflussrechnung nach IAS 7 Zimmermann, Jochen; Knigge, Philipp; Zülch, Henning; Teuteberg, Torben Siggelkow, Lena Analytical and empirical analyses on fixed asset write-offs Diss. HHL Leipzig Graduate School of Management, 2013 Online publication: qucosa.de/recherche/ frontdoor/?tx_slubopus4frontend[id]=11692 Güth, Simon Gläubigerschutz auf Basis des IFRS for SMEs: ökonomische Analyse und Entwicklung einer Regulierungsempfehlung zur Anwendung in Deutschland Detzen, Dominic; Hoffmann, Sebastian; Zülch, Henning Working Papers 7th Accounting History International Conference, Seville, Spain, September 25–27, 2013 In: Accounting Education, 22 (2013) 3, 282-294 Hoffmann, Sebastian; Zülch, Henning Dr. Sebastian Hoffmann HHL Working Paper 118. Leipzig: HHL Leipzig Graduate School of Management, 2013 7th Asia Pacific Interdisciplinary Research in Accounting Conference, Kobe, Japan, July 26-28, 2013 Bright Pharmaceuticals SE: accounting for a business combination under IFRS 3 Zülch, Henning; Detzen, Dominic; Wünsch, Martin; Wulf, Torsten; Meißner, Philip The benefits of a pre-deal purchase price allocation for acquisition decisions: an exploratory analysis In: Problems and Perspectives in Management, 11 (2013) 1, 59-68 Krauß, Patrick; Zülch, Henning The relation of auditor tenure to audit quality: empirical evidence from the German audit market Trust and accounting regulation: towards an interdisciplinary research agenda Lahmann, Alexander; Siggelkow, Lena; Zülch, Henning A new perspective on fixed asset write-offs: when is earnings management optimal HHL Working Paper 117. Leipzig: HHL Leipzig Graduate School of Management, 2013 In: Journal of Governance and Regulation, 2 (2013) 1, 44-56 Siggelkow, Lena; Zülch, Henning What drives companies? An analysis of fixed asset write-offs in Europe in the context of different institutional settings In: KoR: internationale und kapitalmarktorientierte Rechnungslegung, 13 (2013) 2, 6 HHL Working Paper 114. Leipzig: HHL Leipzig Graduate School of Management, 2012 Down load under http://ssrn.com/abstract=2191499 Verpflichtende und freiwillige Cashflow-Berichterstattung: empirischer Befund für den deutschen Kapitalmarkt IFRS für Banken: eine Rezension Kapitalkosten vor Steuern: das CAPM des IAS 36 Zülch, Henning; Kretzmann, Christian Prospektive Covenant-Kennzahlen: Logische Konsequenz eines vermehrt harmonisierten Rechnungswesens? Krauß, Patrick; Quosigk, Benedikt M.; Zülch, Henning Teuteberg, Torben; Zülch, Henning HHL Working Paper 113. Leipzig: HHL Leipzig Graduate School of Management, 2012 In: Der Betrieb, 66 (2013) 36, 1977-1979 Prof. Dr. Bernhard Schwetzler ED/2012/5: Klarstellungen zur Angemessenheit von Abschreibungsmethoden - ein zahnloser Tiger? Zülch, Henning; Popp, Marco Feldstudie zur Konsolidierung von Zweckgesellschaften nach IFRS 10: eine Analyse der EFRAG-Aktivitäten und ihre praktischen Implikationen In: Praxis der internationalen Rechnungslegung: PIR, (2013) 4, 109-112 Zülch, Henning; Popp, Marco Die Konsolidierungsstandards IFRS 10, IFRS 11 und IFRS 12: Implikationen der EFRAG-Feldstudien In: Praxis der Internationalen Rechnungslegung: PIR, (2013) 3, 84-89 On the ubiquity of accountability: The Handelshoch­ schule Leipzig in the claws of Nazism Lobbying on accounting standard setting in the parliamentary environment of Germany Dr. Dominic Detzen, Dr. Sebastian Hoffmann On the ubiquity of accountability: The Handelshoch­ schule Leipzig in the claws of Nazism Research Seminar Cardiff Business School, Cardiff, UK, May 1, 2013 Dr. Sebastian Hoffmann Salewski, Marcus; Siggelkow, Lena; Zülch, Henning Deutsche Bahn AG, Berlin Division Meeting Berlin, Germany, July 5, 2012 Leipzig: HHL Leipzig Graduate School of Management, 2013 Online publication: qucosa.de/recherche/ frontdoor/?tx_slubopus4frontend[id]=11937 Dr. Sebastian Hoffmann In: Accounting History, 18 (2013) 3, 367-389 Zülch, Henning Dividend Policy at Deutsche Bahn Conceptual and historical underpinnings of accounting In: Der Konzern, 11 (2012) 6/7, 328-337 The regulation of asset valuation in Germany Reformation der IFRS-Konzernrechnungslegung (Teil II): - Joint Arrangements nach IFRS 11 - HHL Working Paper 115. Leipzig: HHL Leipzig Graduate School of Management, 2013 Down load under http://ssrn.com/abstract=2198809 The Boston Consulting Group Corporate Finance Task Force Berlin, Germany, November 15, 2012 Detzen, Dominic In: Der Betrieb, 65 (2012) 44, 2469-2475 In: Internationale und kapitalmarktorientierte Rechnungslegung: KoR, 13 (2013) 1, 33-42 Research in Private Equity Diss. HHL Leipzig Graduate School of Management, 2013 Conference Papers / Presentations In: International Business and Economics Research Journal, 12 (2013) 7, 737-754 Prof. Dr. Bernhard Schwetzler Dipl.-Kfm. Alexander Knauer; Prof. Dr. Bernhard Schwetzler Audit services, non-audit services, and audit firm tenure: three perspectives on audit quality Zülch, Henning; Popp, Marco Determinants of the write-off decision under IFRS: evidence from Germany Hitz, Jörg-Markus; Teuteberg, Torben The Boston Consulting Group CDPA Meeting Berlin, Germany, November 16, 2012 Krauß, Patrick Weinheim: Wiley, 2013 ISBN 978-3-527-50737-5 Diss. HHL Leipzig Graduate School of Management, 2012 IACVA (International Association of Consultants, Valuators and Analysts) 2012 Annual Meeting Neuss, Germany, November 29, 2012 BCG and CCT/HHL. Opportunities for a successful cooperation Doctoral Theses Prinzipien für einen Ausweis von Zahlungsströmen betrieblicher Altersversorgung in der IFRS-Kapitalflussrechnung Siggelkow, Lena; Zülch, Henning In: Der Betrieb, 66 (2013) 31, 1681-1686 Aktuelle Themen in der Unternehmensbewertung (Current topics in corporate valuation) In: Corporate Finance biz, 3 (2012) 8, 383-391 Effects of Initial Audit Fee Discounts on Audit Quality: Evidence from Germany Hoffmann, Sebastian; Detzen, Dominic Dr. Sven Arnold; Dr. Alexander Lahmann; Prof. Dr. Bernhard Schwetzler Zur Angabe der Vorstandsbezüge des Alleinvorstands einer börsennotierten AG: Anmerkungen zum Beschluss des OLG Frankfurt/M. vom 31.5.2012 Zülch, Henning; Siggelkow, Lena Zülch, Henning; Popp, Marco; Teuteberg, Torben Arnold, Sven Lahmann, Alexander Multiples und Beta-Faktoren für deutsche Branchen Duration, Kreditrisiko und Tax Shield: Ein integrativer Ansatz (Duration, credit risk and tax shield: an integrative approach) Nöllgen, Bruno In: CORPORATE FINANCE biz, 4 (2013) 4, 226-230 Hammer, Benjamin; Lahmann, Alexander; Schwetzler, Bernhard Prof. Dr. Bernhard Schwetzler CHAIR OF ACCOUNTING AND AUDITING Lobbying on accounting standard setting in the parliamentary environment of Germany 2013 Alternative Accounting Conference, Toronto, Canada, April 27-28, 2013 Dr. Sebastian Hoffmann Lobbying on accounting standard setting in the parliamentary environment of Germany 2013 International Conference of Critical Accounting, New York City, USA, April 25-26, 2013 Dr. Sebastian Hoffmann Regulatory changes driven by crises? – A longitudinal analysis of asset valuation in Germany AS-VHB-IAAER Conference 2013, Eschborn, Germany, February 14-16, 2013 Harmonization in Auditing Practices – A Comparative Study on Audit Tenure Effects between Germany and the United States Dr. Dominic Detzen Salewski, Marcus; Zülch, Henning Prof. Dr. Henning Zülch HHL Working Paper 112. Leipzig: HHL Leipzig Graduate School of Management, 2012 AS-VHB-IAAER Conference 2013, Eschborn, Germany, February 14-16, 2013 The Impact of Corporate Social Responsibility (CSR) on Financial Reporting Quality – Evidence from European Blue Chips The conceptual framework’s (in-)adequacy for standard-setting AS-VHB-IAAER Conference 2013, Eschborn, Germany, February 14-16, 2013 The impact of corporate social responsibility (CSR) on financial reporting quality – evidence from European Blue Chips Dr. Sebastian Hoffmann Bedeutung und Anwendung des IFRS 13 – Fair Value Measurement Meeting of the Gesellschaft für kapitalmarktorientierte Rechnungslegung e.V., Leipzig, Germany, September 18, 2012 56 HHL RESEARCH REPORT 2014 Publications 57 CHAIR OF ECONOMICs AND INFORMATION SYSTEMS HHL Research Paper Series in Corporate Governance, 8 (2012) SPARKASSEN FINANZGRUPPE Junior Professorship IN M&A OF SMALL- AND MIDSIZED ENTITIES Conference Papers and Presentations Book Chapters and Journal Articles La Mura, Pierfrancesco Prof. Dr. Henning Zülch Strenger, Christian; Zetzsche, Dirk A. 12. Fachtagung 2013: Das Rechnungswesen im Konzern, Frankfurt a. M., Germany, November 29, 2013 Gewinn nach IFRS - Schein oder Sein? CENTER FOR CORPORATE GOVERNANCE Book Chapters, Journal Articles Strenger, Christian; Zetzsche, Dirk A. Corporate governance, cross-border voting and the Securities Law Directive – Enhancing investor engagement through standardization In: Journal of Corporate Law Studies, 2(2013), 503-522 Kohl, Christian; Rapp, Marc Steffen; Wolff, Michael Akzeptanz des Deutschen Corporate Governance Kodex: Governance-Indizes und Unternehmenseigenschaften In: Zeitschrift für Corporate Governance, 4(2013), 153-159 Lazar, Christian; Metzner, Yves; Rapp, Marc Steffen; Wolff, Michael Remuneration of Non-Executive Directors in German Listed Firms: An Empirical Analysis from a Practitioners’ Perspective In: Accounting, Economics and Law, 6(2013), 1-16 Strenger, Christian Bessere Prüferakzeptanz und bessere Prüfungsergebnisse: nicht nur eine Governance-Herausforderung In: Die Wirtschaftsprüfung, 14 (2013), 691-696 Leipzig, HHL Leipzig Graduate School of Management, 2013 Strenger, Christian Die Business Judgement Rule für Aufsichtsräte: heutige Qualitätsanforderungen für die Enthaftung bei unternehmerischen Entscheidungen im Konzern In: Der Konzern, 8 (2013), 429-433 Strenger, Christian Der Financial Expert als Berufsaufsichtsrat In: Orth/Ruter/Schichold (Hrsg.): Der unabhängige Finanzexperte im Aufsichtsrat, Stuttgart, SchäfferPoeschel, 2013, 131-135 ISBN 978-3-7910-3251-1 Corporate Governance, Cross-Border Voting and the (draft) Securities Law Directive Prof. Dr. Marc Steffen Rapp Regulation, Compensation and Risk Taking in Banks – Evidence from the Credit Crises German Finance Association (DGF) - Annual Meeting 2013 Wuppertal, Germany, September 27-28, 2013 Lazar, Christian; Metzner, Yves; Rapp, Marc Steffen; Wolff, Michael Remuneration of non-executive directors in German listed firms: An empirical note HHL Research Paper Series in Corporate Governance, 12 (2013) Debt-related tax shields and private equity: myth or reality? In: The Journal of Applied Corporate Finance (forthcoming) Christian Kohl Family Firms and Standardization of Governance: Evidence From the German Corporate Governance Code 14th Workshop on Corporate Governance and Investment Sharjah, UAE, September24-25, 2013 Prof. Dr. Marc Steffen Rapp Regulation, Compensation and Risk Taking in Banks – Evidence from the Credit Crises Accademia Italiana Di Economia Aziendale (AIDEA) - The bicentenary meeting Lecce, Italy, September 19-21, 2013 Prof. Dr. Michael Wolff Board Industry Expertise and Strategic Change: The Impact of Institutional Differences Academy of Management (AOM) - 73rd Annual Meeting Orlando, US, August 9-13, 2013 Prof. Dr. Michael Wolff Board Industry Expertise and Strategic Change: The Impact of Institutional Differences Academy of International Business (AIB) - Annual Conference Istanbul, Turkey, July 4-7, 2013 Hammer, Benjamin; Lahmann, Alexander; Schwetzler, Bernhard Multiples und Beta-Faktoren für deutsche Branchen In: CORPORATE FINANCE biz, 6 (2013), 6, 351-354 Hammer, Benjamin; Lahmann, Alexander; Schwetzler, Bernhard Multiples und Beta-Faktoren für deutsche Branchen In: CORPORATE FINANCE biz, 4 (2013), 4, 226-230 Hammer, Benjamin; Lahmann, Alexander; Schwetzler, Bernhard HHL Research Paper Series in Corporate Governance, 11 (2013) Leipzig, HHL Leipzig Graduate School of Management, 2013 Oehmichen, Jana; Rapp, Marc Steffen; Wolff, Michael Effects of personal cognition and social network embeddedness on the presence of women on boards HHL Research Paper Series in Corporate Governance, 10 (2012) Oehmichen, Jana; Rapp, Marc Steffen; Wolff, Michael Women on German management boards – how ownership structure affects management board diversity HHL Research Paper Series in Corporate Governance, 9 (2012) Casajus, André and Huettner, Frank Null, nullifying, or dummifying players: The difference between the Shapley value, the equal division value, and the equal surplus division value Casajus, André and Tutic, Andreas Nash bargaining, Shapley threats, and outside options In: Mathematical Social Sciences, 2013 (forthcoming) Casajus, André Collusion, quarrel, and the Banzhaf value In: International Journal of Game Theory, 2013 (forthcoming) Arnold, Sven; Lahmann, Alexander; Schwetzler, Bernhard In: Journal of Mathematical Economics 49, 2013, 58-61 Multiples und Beta-Faktoren für deutsche Branchen In: Corporate Finance biz, 3 (2012), 8, 410-413 Arnold, Sven; Lahmann, Alexander; Schwetzler, Bernhard Tax Shield, Insolvenzwahrscheinlichkeit und Zinsschranke - Eine empirische Analyse Null players, solidarity, and the egalitarian Shapley values Huettner, Frank and Sunder, Marco Axiomatic arguments for decomposing goodness of fit according to Shapley and Owen values In: Electronic Journal of Statististics 6, 2012, 12391250 In: Die Wirtschaftsprüfung, 6 (2012), 6, 324-337 Casajus, André Working Papers and Others In: International Journal of Game Theory 41 (3), 2012, 497-515 Amalgamating players, symmetry, and the Banzhaf value Prof. Dr. Marc Steffen Rapp Family Firms and Standardization of Governance: Evidence From the German Corporate Governance Code European Institute for Advanced Studies in Management (EIASM) - 6th International Workshop on Accounting&Regulation Siena, Italy, July 4-6, 2013 Hard or Soft Regulation of Corporate Governance Krause, Marko; Lahmann, Alexander The applicable discount rate for the valuation of tax shields A new perspective on fixed asset write-offs – When is earnings management optimal Working Paper, 2013 Dr. Thomas Schmid SSRN Working Paper, 2013 Twenty Years after Cadbury, Ten Years after Sarbanes-Oxley: Challenges of Corporate Governance Bath, UK, June 24-25, 2013 Prof. Dr. Marc Steffen Rapp Regulation, Compensation and Risk Taking in Banks – Evidence from the Credit Crises Conference on Risk Management and Reform of Bank Regulation Beijing, China, May 8-10, 2013 The arithmetic Brownian motion in corporate valuation Arnold, Sven; Gmehling, Philipp; Lahmann, Alexander The cost of debt and bankruptcy Working Paper, 2013 Arnold, Sven; Lahmann, Alexander; Schwetzler, Bernhard The impact of credit rating and frequent refinancing on firm value Fair redistribution of performance-based allocations: A case for proportional taxation HHL working paper #126, 2013. La Mura, Pierfrancesco, Brandenburger, Adam and Deutsch, Matthew Deriving the Qubit from Entropy Principles Cornell University, New York, 2013. Doctoral Thesis Demidova, Ekaterina Allocation Mechanisms: Group Bargaining and Multi-Unit Auctions Leizig, HHL Leipzig Graduate School of Management, 2013. SSRN Working Paper, 2012 Conference Papers and Presentations Christian Strenger Conference Papers and Presentations Prof. Pierfrancesco La Mura, Ph.D. University of Maastricht, Faculty of Economics and Business Administration, Maastricht, Netherlands, March 2013 Dr. Alexander Lahmann Dagstuhl Seminar on “Dependence Logic: Theory and Applications” Dagstuhl, Germany, February 11-15, 2013 Corporate Governance – The Implementation Experience and Current Issues, Leipzig: Engelsdorfer Verlag, 2013 ISBN 978-3-95488-447-6 Book Chapters and Journal Articles Vilks, Arnis; Wuttke, Martina Poverty Alleviation through CSR in the Indian Construction Industry Forthcoming in: Journal of Management Development 3, 2014 Vilks, Arnis Hempel, C.G.: Aspects of Aspects of Scientific Explanation and Other Essays In: M. Quante (ed.), Kleines Werklexikon der Philosophie Stuttgart: Kröner, 2012 ISBN 978- 3-52040-201-1 The arithmetic Brownian motion in corporate valuation European Accounting Association 2013 Annual Meeting Paris, France, May 6-8, 2013 Dr. Sven Arnold; Dr. Alexander Lahmann; Prof. Dr. Bernhard Schwetzler The impact of credit rating and frequent refinancing on firm value Midwest Finance Association 2013 Annual Meeting Chicago, USA, March 13-16, 2013 A double-slit experiment for non-classical interference effect in decision-making Dr. André Casajus On replicator dynamics derived from TU games 9th Spain-Italy-Netherlands Meeting on Game Theory (SING9) Vigo, Spain, July 8-10, 2013 9th Spain-Italy-Netherlands Meeting on Game Theory (SING9) Vigo, Spain, July 8-10, 2013 Consciousness for Sustainable Consumption: Scale Development and New Insights in the Economic Dimension of Consumers‘ Sustainability. In: AMS Review, 3 (2013), 4, 181-192 Kirchgeorg, Manfred; Weinrich, Kai Magnetwirkung auf dem Weg zur Nachhaltigkeit In: Markenartikel, 75 (2013), 4, 40-43 Kirchgeorg, Manfred; Wiedmann, Martin Symbiotischer Einsatz von Social Media und Messen im Kommunikationsportfolio In: Bruhn, M.; Hadwich, K. (Hrsg.): Dienstleistungsmanagement und Social Media. Wiesbaden: Springer Gabler, 2013, 239-256 Buerke, Anja; Weinrich, Kai; Kirchgeorg, Manfred Wenn Werte entscheiden – Ein Ansatz zur Identifizierung von Nachhaltigkeitstalenten im Employer Branding auf Basis persönlicher Werte In: Die Unternehmung – Swiss Journal of Business Research and Practice, 67 (2013), 2, 194-217 Kirchgeorg, Manfred Kritische Reflexionen zum Einfluss ökologischer Diskontinuitäten auf das Marketing. Doctoral Theses Bangura, Ibrahim Verhoog, Mart; Bruckner, Thomas; Kirchgeorg, Manfred A Critical Assessment of the Socio-Economic Reintegration Process of Ex-Combatants Ten Years after the War in Sierra Leone Leipzig: HHL Leipzig Graduate School of Management, 2013 Conference Papers and Presentations Zielgruppenspezifische Ansprache von Akteuren im Modernisierungsmarkt anhand der Lebensstilkomponente In: Koch, M. K.; Wagner, H.-J. (Hrsg.): Wettbewerb Energieeffiziente Stadt. Band 1: Gebäude und Haushalte, Berlin, Lit-Verlag, 2013 Working Papers and Others Prof. Dr. Arnis Vilks Economic Crises – are they Inevitable? Presentation at the Annual Conference of the Ethiopian Economic Association Mekelle, Ethopia, June 29, 2013 SVI-Endowed Chair of Marketing, ESP. E-COMMERCE AND CROSS-MEDiA MANAGEMENT Books Meffert, Heribert; Kenning, Peter; Kirchgeorg, Manfred Sustainable Marketing Management: Grundlagen und Cases Wurpts, Klaus; Kirchgeorg, Manfred Mit Clustern zur BioÖkonomie: Eine internationale Bestandsaufnahme zur Einführung und Grundlage für Benchmarking und Evaluierung des Spitzencluster BioÖkonomie Mitteldeutschland HHL Working Paper 121 Leipzig: HHL Leipzig Graduate School of Management, 2013 Kirchgeorg, Manfred; Ermer, Beatrice; Wiedmann, Martin Szenarioanalyse: Messen & Live Communication 2020 Schriftenreihe Institut der deutschen Messewirtschaft, 36 Berlin: AUMA, 2012 Kirchgeorg, Manfred; Wiedmann, Martin; Ermer, Beatrice. B2C-Trendstudie: Perspektiven, Potenziale und Positionierung von Publikumsmessen Wiesbaden: Springer Gabler, 2014 ISBN: 978-3-658-02436-9 (forthcoming) Schriftenreihe Institut der deutschen Messewirtschaft, 35 Berlin: AUMA, 2012 Meffert, Heribert; Burmann, Christoph; Kirchgeorg, Manfred Doctoral Theses Marketing Arbeitsbuch: Aufgaben – Fallstudien – Lösungen. 11. überarb. und erw. Aufl. Wiesbaden: Gabler Verlag, 2013 ISBN: 978-3-8349-3447-5 Weinrich, Kai Book Chapters and Journal Articles Wiesbaden: Springer Gabler, 2014 Nachhaltigkeit im Employer Branding. Eine verhaltenstheoretische Analyse und Implikationen für die Markenführung Von Grega, Felix Koene, Merlin; Wagner, Katja; Buerke, Anja; Kirchgeorg, Manfred Nachhaltigkeitsmarketing in der Konsumgüterindustrie am Beispiel der Unilever Deutschland GmbH In: Meffert, H., Kenning, P., Kirchgeorg, M. (Hrsg.): Sustainable Marketing Management: Grundlagen und Cases. Wiesbaden, Springer Gabler, 2014 Dr. Frank Huettner On a class of solidarity values Balderjahn, Ingo; Buerke, Anja; Kirchgeorg, Manfred; Peyer, Mathias; Seegebarth, Barbara; Wiedmann, Klaus-Peter In: Corsten, H; Roth, S. (Hrsg.): Nachhaltigkeit Unternehmerisches Handeln in globaler Verantwortung. Wiesbaden: Gabler Verlag, 2012, 113-132 Casajus, André Lahmann, Alexander; Siggelkow, Lena; Zülch, Henning Lahmann, Alexander Is Soft Regulation of Corporate Governance Efficient? Working Papers and Others Meditationen über Gott und die Welt und das Geld. Versuch einer besseren Weltanschauung Working Paper, 2013 European Management Association (EURAM) - Annual Meeting 2013 Istanbul, Turkey, June 26-30, 2013 Kohl, Christian; Rapp, Marc Steffen; Wolff, Michael Kodexakzeptanz 2013: Analyse der Entsprechenserklärungen zum Deutschen Corporate Governance Kodex In: Topics in Cognitive Science, 2013 Casajus, André and Huettner, Frank Kohl, Christian; Rapp, Marc Steffen; Wolff, Michael Akzeptanz des Deutschen Corporate Governance Kodex: Governance-Indizes und Unternehmenseigenschaften A double-slit experiment for non-classical interference effect in decision-making Multiples und Beta-Faktoren für deutsche Branchen In: CORPORATE FINANCE biz, 2 (2013), 2, 94-97 Book Vilks, Arnis In: Economics Letters, 2013 (forthcoming) Prof. Dr. Marc Steffen Rapp Working Papers and Others Knauer, Alexander; Lahmann, Alexander; Pfluecke, Magnus; Schwetzler, Bernhard Journal Articles Chair of Microeconomics Wurpts, Klaus; Kirchgeorg, Manfred Clusterförderung mit der „Gemeinschaftsaufgabe“ – Eine Evaluierung von Konzept und Implementierung in Ostdeutschland. In: Raumforschung und Raumordnung, Vol. 71 (2013), 427-436 Internationalisierung des Messewesens: Auswirkungen auf öffentliche Veranstaltungsgesellschaften Wiesbaden: Springer Gabler, 2013 Roj, Manuel Die Relevanz der Markenarchitektur für das Employer Branding – Eine verhaltenstheoretisch-experimentelle Untersuchung zum Einfluss von hierarchie­ übergreifenden Markenkombinationen auf die Employer Brand Strength Wiesbaden: Springer Gabler, 2013 58 HHL RESEARCH REPORT 2014 Conference Paper / Presentations Prof. Dr. Manfred Kirchgeorg Social Media and Marketing Management Executive Circle Arthur D. Little Frankfurt, Germany, November 22, 2013 Publications 59 Prof. Dr. Manfred Kirchgeorg, Prof. Dr. Thomas Bruckner, Mart Verhoog Zielgruppenspezifische Ansprache von Akteuren im Modernisierungsmarkt 8. Internationale Energie Wirtschaftstagung Wien, Austria, February 13-15, 2013 Prof. Dr. Iris Hausladen “Pro YSITIE” Association fact-finding tour to Leipzig Metropolitan region of Central Germany Logistics at HHL Leipzig Graduate School of Management – “On the Pulse of Practice” Leipzig, Germany, April 11, 2013 Prof. Dr. Manfred Kirchgeorg, Martin Wiedmann Prof. Dr. Manfred Kirchgeorg, Beatrice Ermer, Martin Wiedmann Attraktivitätsfaktor Wohlfühlatmosphäre auf Publikumsmessen 5. Wissenschaftliche Konferenz Eventforschung Chemnitz, Germany, October 25, 2013 Prof. Dr. Manfred Kirchgeorg, Beatrice Ermer, Martin Wiedmann The Future of B2B-trade shows: Insights from a Scenario Analysis 4th EMAC CEE Regional Conference St. Petersburg, Russia, September 26-27, 2013 Prof. Dr. Manfred Kirchgeorg Erfolgreiche Marken: Eine Frage des Vertrauens? Marketing-Tagung der Oetker-Gruppe 2013 Bielefeld, Germany, September 19, 2013 Mathias Peyer, Anja Buerke, Barbara Seegebarth, Prof. Dr. Ingo Balderjahn, Prof. Dr. Manfred Kirchgeorg, Prof. Dr. Klaus-Peter Wiedmann Development of a Measurement Model for Consciousness for Sustainable Consumption Corporate Responsibility Research Conference 2013 Graz, Austria, September 11-13, 2013 Mathias Peyer, Anja Buerke, Barbara Seegebarth, Prof. Dr. Ingo Balderjahn, Prof. Dr. Manfred Kirchgeorg, Prof. Dr. Klaus-Peter Wiedmann What Does Sustainable Consumption Really Mean? A Three-Dimensional Measurement Approach AMS World Marketing Congress 2013 Melbourne, Australia, July 15-20, 2013 Das Vertrauenskonstrukt in der Marketingwissenschaft – theoretische Reflexionen und empirische Beispiele IPJ- Fachtagung: Wandel und Messbarkeit des öffentlichen Vertrauens im Zeitalter des Web 2.0. Leipzig, Germany, January 25, 2013 Prof. Dr. Manfred Kirchgeorg, Mart Verhoog Application of Social Network Analysis to assess Retrofitting Decisions 9. Application of Social Network Analysis 2012 Zürich, Suisse, September 4-7, 2012 HEINZ NIXDORF CHAIR OF IT-BASED LOGISTICS Book The Age of Atmosphere: Age-Specific Visitor Expectations on Consumer Show Atmosphere 42nd European Marketing Academy (EMAC) Conference Istanbul, Turkey, June 5-7, 2013 IT-gestützte Logistik – Systeme – Prozesse – Anwendungen Wiesbaden: Springer Gabler-Verlag (2nd edition), January 2014 ISBN: 978-3-8349-4664-5 Book Chapters, Journal Articles Considering sustainability in the context of humanitarian logistics In: Hellingrath, B./ Link, D./ Widera, A., eds. Managing Humanitarian Supply Chains Strategies, Practices and Research, Hamburg: DVV Media Group GmbH, 2013, 314-328 Hausladen, Iris Prof. Dr. Manfred Kirchgeorg, Anja Buerke Hot Spot-basierte Nachhaltigkeitskommunikation – Ausprägungsformen und Wirkungen 5. Jahrestagung der Akademischen Partnerschaft ECR Deutschland Vallendar, Germany, June 5, 2013 Working Papers Althammer, Wilhelm; Schneider, Martin Does oil and gas wealth eat up total wealth? Analyzing the resource course with measures of sustainable development HHL Working Paper 116 Leipzig: HHL Leipzig Graduate School of Management, 2013 IT-gestützte Logistik als Schrittmacher im KEP-Markt In: Gesellschaft für Verkehrsbetriebswirtschaft und Logistik (GVB) e.V., ed. GVB – Jahrbuch 2013 für die Kurier-, Express- und Postdienste. Wirtschaftliche, technische, organisatorische und rechtlich / politische Entwicklungen., München: GVB, 2013, 81-94 Measuring climate policy stringency: A shadow price approach using energy prices HHL Working Paper 123 Leipzig: HHL Leipzig Graduate School of Management, 2013 Doctoral Theses Schneider Martin Resource wealth and sustainable development: A comparative analysis of the GCC countries Hamburg: Dr. Kovac, 2013 Conference Papers and Presentations Prof. Dr. Wilhelm Althammer Does oil and gas wealth eat up total wealth? Analyzing the resource course with measures of sustainable development 20th Annual Conference of the European Association of Environmental and Resource Economists, Toulouse, France, June 26-29, 2013 Dr. Oliver Hoßfeld Shall we use panel or time series methods to estimate equilibrium real effective exchange rates? 46th Annual Conference of the Canadian Economic Association, Alberta, Canada, June 7-10, 2012 Prof. Dr. Manfred Kirchgeorg, Mart Verhoog Supplier Collaboration in the Retrofitting Decision-Making Process 33. Sunbelt Social Networks Conference of the International Network for Social Network Analysis Hamburg, Germany, May 21-26, 2013 Hausladen, Iris Spielfilm, Daily Soap & Co., Filmproduktion mal LOGISTISCH gedacht In: WiSt, 12 (2012), 633-638 Perspectives, Opportunities and Positioning of Consumer Shows Ansätze zur Geschäftsprozessoptimierung in der biomedizinischen Logistik In: Der Betriebswirt, 4/2012, 21-25 CEFA Professionals Seminar Brno, Czech Republic, April 24-26, 2013 Hausladen, Iris Mathias Peyer, Anja Buerke, Barbara Seegebarth, Prof. Dr. Ingo Balderjahn, Prof. Dr. Manfred Kirchgeorg, Prof. Dr. Klaus-Peter Wiedmann In: Netzwerk Nachrichten Magazin für Innovationstransfer der Region Leipzig, Halle, Mitteldeutschland. Branchenschwerpunkt Logistik & Dienstleistungen 1/2013, 12 Consciousness for Sustainable Consumption: Scale Development and New Insights in the Economic Dimension of Consumers’ Sustainability AMA Winter Marketing Educators’ Conference 2014 (accepted) Orlando, USA, February 21-23, 2014 Mathias Peyer, Anja Buerke, Barbara Seegebarth, Prof. Dr. Ingo Balderjahn, Prof. Dr. Manfred Kirchgeorg, Prof. Dr. Klaus-Peter Wiedmann Consciousness for Sustainable Consumption: Conceptualization, Measurement and Empirical Validation. AMA Winter Marketing Educators’ Conference 2013 Las Vegas, USA, February 15-17, 2013 Biologistikstandort stärken Conference Papers and Presentations Suchanek, Andreas Unternehmensverantwortung als Vermeidung relevanter Inkonsistenzen In: Lenel, H. O., Apolte, Th., eds. Ordo: Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, Ordo 63. Stuttgart: Lucius & Lucius, 2012, 241-261 ISSN: 0048-2129 Contribution of emerging IT solutions to sustainable logistics and supply chain management – a theoretical framework analysis 10th International Conference on Logistics & Sustainable Transport, Celje, Slovenia, June 13-15, 2013 Prof. Dr. Iris Hausladen Optimierte Geschäftsprozesse in der Biomedizini­ schen Logistik (Optimized business processes in biomedical logistics Med.Logistica Leipzig, Germany, May 15, 2013 Presentation at the conference „Unternehmen für die Region” Halle, Germany, November 22, 2013 Presentation at general meeting of entrepreneurs of Saarland Saarbrücken, Germany, October 18, 2012 Carry funding and safe haven currencies: a threshold regression analysis Wissenschaftlicher Beirat der Deutschen Bundesbank, Frankfurt, Germany, June 6-7, 2013 Professor Dr. Andreas Suchanek Professor Dr. Andreas Suchanek Presentation at CSSA-Kolloquium (foundation for social partnership of chemical industry) Bad Münster, Germany, November 14, 2013 Initial statement at the conference Uniapac/BKU “Towards Reforming the International Financial and Monetary Systems in the Context of a Global Public Authority” Frankfurt/Main, Germany, September 19, 2012 Wirtschaftsethik (Business Ethics) EBS REMI Real Estate conference, Wiesbaden, Germany, February 22, 2013 Georg Siegert Value, Survival, and Costs of EEG Biogas: A Real Options Approach Boysen-TUD-Graduiertenkolleg, International Summer School on Sustainable Energy Systems, Dresden, Germany, September 23-28, 2013 Toward the Global Common Good Professor Dr. Andreas Suchenek In: Schneider, A.; Schmidpeter, R., eds. Corporate Social Responsibility: verantwortungsvolle Unternehmensführung in Theorie und Praxis. 2nd edition, Berlin: Springer, 2012, 55-66 ISBN: 978-3-642-25398-0 Professor Dr. Andreas Suchanek Presentation at the RWE Energy Workshop at WCGE Wittenberg, Germany, September 17, 2012 Presentation at a meeting of compliance officers of Verbundnetz Gas AG (natural gas industry) Leipzig, Germany, November 5, 2013 Professor Dr. Andreas Suchanek Suchanek, Andreas Professor Dr. Andreas Suchanek Public speech in the framework of the Philosophical Salon series Abbey Lamspringe, Germany, September 10, 2012 Suchanek, Andreas Vertrauen als Grundlage nachhaltiger unternehmerischer Wertschöpfung Vertrauen als Vermögenswert: Eine konzeptionelle Annäherung an Corporate Responsibility In: Prigge, S.; Taubken, N., eds. Unternehmensverantwortung wirkt!: Geteilte Wertschöpfung durch Corporate Responsibility – mit Praxisbeispielen aus der Metropolregion Hamburg, München: oekomVerlag, 2012, 39-43 ISBN:978-3-86581-409-8 Suchanek, Andreas Unternehmensverantwortung – ein individualoder ordnungsethisches Thema? In: Schwartze, A. et al., eds. (title tba), Tübingen: Mohr Siebeck, 2014 (in press) Suchanek, Andreas Freiheit und Vertrauen. Unternehmensverantwortung in einer offenen Gesellschaft Presentation at the “Forum Diplomacy” (Ministry of Foreign Affairs) Wittenberg, Germany, November 8, 2013 Compliance, values and trust Der Mehrwert der Ethik (Added value of ethics) Presentation at the conference „Recipe for success: Good Corporate Governance” Berlin, Germany, October 17, 2013 Professor Dr. Andreas Suchanek Book Presentation at the symposium Ethics and Philosophy Munich, Germany, October 12, 2013 Messung von Vertrauenswürdigkeit – Herausforderungen aus der Sicht eines Ethikeser (Measuring trustworthiness – challenges from an ethicist’s perspective) Suchanek, Andreas Professor Dr. Andreas Suchanek In: Friesen, H.; Wolf, M., eds. Ökonomische Moral oder moralische Ökonomie? Positionen zu den Grundlagen der Wirtschaftsethik. Freiburg/ München: Verlag Karl Alber, 2014, 192-210 (in press) ISBN: 978-3-495-48635-1 Presentation delivered to a delegation of Khobara Center (Yemen) Wittenberg, Germany, September 4, 2013 Working papers and Others Suchanek, Andreas; von Brook, Martin Stakeholder-Dialoge: Investitionen in ein gemeinsames Spielverständnis Discussion Papers of the Wittenberg Center for Global Ethics 12-05 Global Ethics Wie viel Ethik kann sich ein Unternehmen leisten? (How much ethics can a corporation afford?) Presentation at the Colloquium Fundamentale of the Centre for Applied Cultural and General Studies (ZAK) at Karlsruhe Institute of Technology (KIT) Karlsruhe, Germany, May 23, 2013 Professor Dr. Andreas Suchanek Wirtschaftsethik und Zen – Impulse und Spannungen (Business ethics and Zen – impacts and conflicts) Doctoral Theses Kerscher, Klaus-Jürgen Professor Dr. Andreas Suchanek Weimar: metropolis, 2013 Presentation at the meeting of the committee „Economic sciences and Ethics“ of the Association of Social Politics Wittenberg, Germany, February 28 – March 2, 2013 Bockel, Alicia The Golden Rule and Sports Pinkwart, Andreas The New Role of Universities in the Twenty-First Century: Universities as Engines of Innovation and Entrepreneurial Hubs AICGS Policy Report 50 (2012). Washington: Johns Hopkins University, 2012 ISBN 978-1-933942-36-0 Book Chapters and Journal Articles Czinkota, Michael R; Pinkwart, Andreas Professor Dr. Andreas Suchanek Presentation at the ceremonial event on the occasion of the 25th anniversary of the program „Leben aus der Mitte“ Essen, Germany, May 5, 2013 Homo Oeconomicus und Menschenbild: Form und Wesen einer beachtenswerten Spannung Über die Alltagstauglichkeit des Konzepts Unternehmensverantwortung (CSR) (On the practicability of the CSR concept) STIFTUNGSFONDS DEUTSCHE BANK CHAIR OF INNOVATION MANAGEMENT AND ENTREPRENEURSHIP In: Hüther, M. et al., eds. Unternehmen im öffentlichen Raum. Berlin: Springer, 2014 (in press) Alltagstaugliche Unternehmensethik Einführung in die Wirtschaftsethik (Introduction to Business Ethics) Werte, Wirklichkeit und Vertrauen (Values, reality, and trust) Professor Dr Andreas Suchanek Statement at the workshop „Measuring“ of the Leitbildkreisinitiative Berlin, Germany, September 16, 2013 Steffen Sebastian; Georg Siegert Predicting the equity premium in Swiss real estate fund returns „Verantwortliches Handeln in der Wirtschaft” (Responsible acting in the economy) Professor Dr. Andreas Suchanek Unternehmensethik: Individual- oder Ordnungstehik? (Business ethics – individual or systemic ethics?) forthcoming Internationalization in Marketing – from theory to practice In: Thunderbird International Business Review. Special Issue (forthcoming) Pinkwart, Andreas; Abu El-Ella, Nagwan Open innovation - new opportunities and challenges for science-to-business collaboration In: Springer Verlag (forthcoming 2014) Pinkwart, Andreas Eugen Schmalenbach and the Leipzig School of Commerce. In: Albach, Horst; Waragai, Tomoki, eds. Proceedings of the International Conference on the Occasion of the 150th Anniversary of Cooperation between Germany and Japan, Waseda University (forthcoming 2014) Abu El-Ella, Nagwan; Pinkwart, Andreas; Bessant, John Change Management 2.0: the New Innovation Imperative In: CASIM Conference Book (forthcoming 2014) Professor Dr. Andreas Suchanek Schiel, Christian Prof. Dr. Iris Hausladen, Haas, Alexander, M.Sc.; Lichtenberg, Andrej, Dipl.-Kfm. Professor Dr. Andreas Suchanek Investing in trust Dr. Oliver Hoßfeld Hausladen, Iris; Schönherr, Michael Prof. Dr. Manfred Kirchgeorg, Martin Wiedmann Book Chapters and Journal Articles Professor Dr. Andras Suchanek Die Verantwortung von KMU: In Vertrauen investieren (The responsibility of SME: invest in trust) Althammer, Wilhelm; Hille, Erik Hausladen, Iris Hausladen, Iris; Haas, Alexander Prof. Dr. Manfred Kirchgeorg, Beatrice Ermer, Martin Wiedmann Sparkassen-Finanzgruppe CHAIR OF MaCROECONOMICS Dr. Werner Jackstaedt Chair of Economic and Business Ethics Moralisches Risikomanagement forthcoming Lebenslanges Lernen (Lifelong learning) Initial statement at the Berlin Demographic Forum 2013 Berlin, Germany, January 9, 2013 Conference Papers and Presentations Professor Dr. Andreas Suchanek Professor Dr. Andreas Suchanek Presentation at the annual meeting of the com­ mittee „Business Ethics and Business Culture“ of the German Philosophical Society Witten, Germany, December 15, 2012 Die gesellschaftliche Verantwortung von Unternehmen (The social responsibility of corporations) Presentation at Chamber of Industry and Commerce Halle (Saxon-Anhalt) Halle, Germany, November 26, 2013 Wie weiter mit der Unternehmensethik? (Business ethics – what next?) Pinkwart, Andreas; Proksch, Dorian The Internationalization Behavior of German High-Tech-Start-ups In: Thunderbird International Business Review, Vol. 56 (2014), 1, 43-53 Abu El-Ella, Nagwan; Stoetzel, Martin; Bessant, John; Pinkwart, Andreas Accelerating High Involvement: The Role of New Technologies in Enabling Employee Participation in Innovation In: International Journal of Innovation Management, 17(2013), 6, 1340020 (22 pages) 60 HHL RESEARCH REPORT 2014 Czinkota, Michael R.; Pinkwart, Andreas International business research and the new role of universities - There is sunshine above the clouds In: Thunderbird International Business Review, 54 (2012) 2, 253-261 Pinkwart, Andreas Neue Herausforderungen für den Wissens- und Technologietransfer im Wissenschaftszeitalter In: Tomaschek, N.; Hammer, E.: „University Meets Industry - Perspektiven gelebter Wissenstransferprozesse einer offenen Universität“, Münster, NewYork, 2012, 59 – 67 Pinkwart, Andreas Das gesunde Unternehmen als Ziel nachhaltiger Sanierung In: KSI, 8 (2012) 2, 5-11 Publications 61 Abu El-Ella, Nagwan Involvement from the Periphery: Exploring the Role of Temporary Employees Innovation EURAM Doctoral Colloquium Istanbul, Turkey, June 2013 Hagedorn, Anja; Pinkwart, Andreas Crowdinvesting as a Financing Instrument for Startups in Germany. A Critical Platform Analysis HHL Working Paper 120 Leipzig: HHL Leipzig Graduate School of Management, 2013 Pinkwart, Andreas; Abu El-Ella, Nagwan Business Economics as a Driver of Innovation HHL Working Paper 109 Leipzig: HHL Leipzig Graduate School of Management, 2012 Conference Papers and Presentations Hagedorn, Anja; Kortleben, Hanno Eine Analyse des Investitionsverhaltens beim Crowdinvesting: Die Rolle der Motivation und asymmetrisch verteilter Information (Analisys of the investment behavoir within crowdinvesting: The role of motivation and asymmetrically distributed information) Presentation at the G-Forum Koblenz, Germany, November 2013 The role of new technologies in enabling high involvement innovation XXIV ISPIM Conference – Innovating in Global Markets: Challenges for Sustainable Growth Helsinki, Finland, June 16-19, 2013 Pinkwart, Andreas EU-US Free Trade Initiative – Impacts on Innovation and Economic Growth. Keynote at the Joint Conference of The American Marketing Association (Global Marketing SIG) and Georgetown University “Trade Policy and International Marketing” Hagedorn, Anja Crowdinvestment als Finanzierungsform für Unter­ nehmensgründungen in Deutschland: eine kritische Analyse (Crowdinvestment as financing instrument for startups in Germany: a critical analysis) Presentation at the G-Forum University of Potsdam, Germany, November 9, 2012 Pinkwart, Andreas; Proksch, Dorian Strategic Management in Early Stage Venture Capital Funds: A Longitudinal Analysis of Success Factors in German Funds G-Forum 2012 University of Potsdam, Germany, November 9, 2012 Pinkwart, Andreas; Proksch, Dorian The internationalization behaviour of German high-tech-start-ups AMA Global Marketing Conference 2012 on International Entry in Marketing and Entrepreneurship – From Theory to Practice Cancun, Mexico, March 29 – April 1, 2012 Pinkwart, Andreas; Schefczyk, Michael Strategic management in early stage venture capital funds: A longitudinal analysis of success factors in German funds IECER – Interdisciplinary European Conference on Entrepreneurship Research Regensburg, Germany, February 16, 2012 Presentation at the G-Forum Koblenz, Germany, November 2013 Schefczyk, Michael; Pinkwart, Andreas; Fiegler, Torsten; Proksch, Dorian; Ernst, Cornelia Determinants of success in new technology-based firms within different financial stages Presentation at the G-Forum Koblenz, Germany, November 2013 Books In: Hölzle, K.; Gemünden, H. G.; Mirow, C. (eds.): Innovationsbarrieren erkennen und überwinden: Strukturen gestalten und Innovatoren fördern Gabler Verlag, Forthcoming Bessant, John; Möslein, Kathrin M.; Lehmann, Claudia Driving Service Productivity Berlin: Springer. Forthcoming Augsdörfer, Peter; Bessant, John; Möslein, Kathrin M.; von Stamm, Bettina; Piller, Frank Discontinuous innovation: Learning to manage the unexpected Schumpeter Junior Professorship for Entrepreneurship AND TECHNOLOGY TRANSFER Book Advisory Boards in Startup Businesses Presentation at the G-Forum Koblenz, Germany, November 2013 Abu El-Ella, Nagwan; Stoetzel, Martin; Bessant, John; Pinkwart, Andreas New technologies: The bliss to high involvement innovation? 14th International CINet Conference - Business Development and Co-creation Nijmegen, Netherlands, September 2013 Pinkwart, Andreas; Proksch, Dorian The Internationalization Process of German HighTech SMEs: An Empirical Analysis 8th European Conference on Innovation and Entrepreneurship (ECIE 2013) Brussels, Belgium, September 2013 Hybrid value creation Wiesbaden: Gabler Verlag, 2013 ISBN: 978-3-8349-3960-9 Journal and Newspaper Articles Velamuri, Vivek K.; Bansemir, Bastian; Neyer, Anne- Katrin; Möslein, Kathrin M. Product Service Systems as a driver for Business Model Innovation: Lessons learned from the Manufacturing Industry In: International Journal of Innovation Management, 17(2013) 01 The Changing Landscape of Involving Employees in Innovation as User Innovators 11th International Open and User Innovation Workshop Brighton, July 2013 In: Financial Times International Print Edition, November 26, 2013 Wiesbaden: Gabler Verlag, 2013 Rau, Christiane Innovation practices: Dissolving knowledge boundaries in innovation projects Nürnberg: Dissertationsschrift, Friedrich-Alexander Universität Erlangen-Nürnberg, 2012 Conference Papers and Presentations Möslein, Kathrin. M.; Trinczek, Rainer; Böhler, Dominik; Eichler, Lutz; Hallerstede, Stefan H., Krämer, Katja et al. In: Creativity and Innovation Management, 22 (2013), 2, 177-194 Working knowledge - Arbeit gestalten in der Innovationsgesellschaft Erlangen: FAU University Press, 2013 ISBN: 978-3-944057-01-9 Möslein, Kathrin M.; Reichwald, Ralf; Kölling, Marcus; Bienzeisler, Bernd (eds.) Open Innovation and firm performance: The mediating role of social capital Velamuri, Vivek K.; Bansemir, Bastian; Neyer, Anne-Katrin; Möslein, Kathrin M. Product service systems as a driver for business model innovation: Lessons learned from the manufacturing industry To Use or Not to Use? Examining the Adoption of Social Research Network Sites Nürnberg: Dissertationsschrift, Friedrich-Alexander Universität Erlangen-Nürnberg, 2013 Mark Olschewski; Dr. Uta Renken; Dr. Angelika Bullinger; Prof. Dr. Kathrin M. Möslein Are you ready to use? Assessing the meaning of social influence and technology readiness in collaboration technology adoption 46th Hawaii International Conference on System Sciences Maui, USA, January 7-10, 2013 In: International Journal of Innovation Management, 17 (2013), 1, 1-25 Christoph W. Kuenne; Temidayo Akenroye; Prof. Dr. Kathrin M. Möslein Stuttgart: Fraunhofer-Verlag, 2013 ISBN 978-3-8396-0506-6 Wendelken, Anke; Danzinger, Frank; Rau, Christiane; Möslein, Kathrin M. European Conference on Information Systems (ECIS) Utrecht, Netherlands, June 5-8, 2013 Reichwald, Ralf; Frenz Martin; Hermann, Sibylle; Schipanski, Agnes In: R&D Management Journal, Forthcoming Produktivitätsleitlinie Wissenschaftliche Basis und Service Science Zukunftsfeld Dienstleistungsarbeit: Professionali­ sierung – Wertschätzung – Interaktion Wiesbaden: Springer Gabler, 2013 ISBN: 978-3-8349-3434-5 Book Chapters and Journal Articles Innovation Contests: A Review, Classification and Outlook In: Creativity and Innovation Management, 21, (2012) 4, 335-360 Bansemir, Bastian; Neyer, Anne-Kathrin; Möslein, Kathrin M. Anchoring Corporate Innovation Communities in Organizations: A Taxonomy In: International Journal of Knowledge-Based Organizations (IJKBO), 2 (2012) 4, 1-20 Innovation without me: Why employees do (not) participate in organizational innovation communities. Working Papers and Others Grafmüller, Leontin; Habicht, Hagen; Marheineke, Marc Faktoren für den erfolgreichen Bildungsdienstleistungsexport: eine Exploration in der Automobilindustrie HHL Working Paper 127 ISSN: 1864-4562 Leipzig: 2013 Möslein, Kathrin M.; Danzinger, Frank Open Innovation – Communities zur Dienstleistungsentwicklung für Kunden und Mitarbeiter. In: ver.di Vereinte Dienstleistungsgewerkschaft (eds.): Dienstleistungsinnovationen offen, sozial, nachhaltig Berlin: 2013, 31-41 Reichwald, Ralf; Möslein, Kathrin M. Böhmann, Tilo; Leimeister, Jan M.; Möslein, Kathrin M. Service Systems Engineering: A Field for Future Information Systems Research. In: Business and Information Systems Engineering, Forthcoming Habicht, Hagen; Möslein, Kathrin M.; Reichwald, Ralf Open Innovation Maturity In: International Journal of Knowledge-Based Organizations (IJKBO), 2 (2012) 4, 92-111 Habicht, Hagen; Oliveira, Pedro; Shcherbatiuk, Viktoriia BMW’s car sharing innovation - Carmaker set up DriveNow with Sixt Managing the Lifecycle of Open Innovation Platforms Rass, Matthias; Dumbach, Martin; Danzinger, Frank; Bullinger, Angelika C.; Möslein, Kathrin M. In: Financial Times International Print Edition, July 2, 2013 Velamuri, Vivek K. Hallerstede, Stefan H. Cambridge, Massachusetts: The MIT Press, 2013 ISBN: 978-0-262-01849-4 Leading Open Innovation Velamuri, Vivek K. Abu El-Ella, Nagwan; Bessant, John Towards Patients as Innovators: Open Innovation in Health Care. Driving the Economy through Innovation and Entrepreneurship: Emerging Agenda for Technology Management Wiesbaden: Gabler Verlag, 2013 Huff, Anne Sigismund; Möslein, Kathrin M.; Reichwald, Ralf Möslein, Kathrin M.; Neyer, Anne-Kathrin (eds.): Special Issue „Open Innovation for the Greater Good“ In: Die Unternehmung, 66 (2012) EDS’s merger with AT Kearney Kuenne, Christoph. W.; Möslein, Kathrin M.; Bessant, John Open Evaluation: Integrating Users into the Selection of New Product Ideas Renken, Uta Velamuri, Vivek K. Weber, Eric; Pinkwart, Andreas Opponenten im Innovationsprozess: Eine empirisch fundierte Typologisierung. Haller, Jörg In: Mukhopadhyay, C; Akhilesh, K.B.; Srinivasan, R.; Gurtoo, A.; Ramachandran, P.; Iyer, P.; Mathirajan, M.; Bala Subrahmanya, M.H. (eds.): Driving the Economy through Innovation and Entrepreneurship: Emerging Agenda for Technology Management Springer, 2013, 315-327 Imperial College Press, 2013. ISBN: 978-1-84816-780-3 Adamczyk, Sabrina; Bullinger, Angelika C; Möslein, Kathrin M. Pinkwart, Andreas; Proksch, Dorian The impact of internationalization on the success of German new technology-based firms Kölling, Marcus; Scheler, Jessica; Neyer, Anne-Katrin; Möslein, Kathrin M. Abu El-Ella, Nagwan; Pinkwart, Andreas Washington, USA, March 15, 2013 Working Papers and Others CENTER FOR LEADING INNOVATION & COOPERATION User innovators: When patients set out to help themselves and end up helping many Dienstleistungen produktiv gestalten: Produktindividualisierung im Einzelhandel Passive integration or mutual co-creation? Exploring the role of stakeholders in service innovation QUIS 13 Karlstad, Sweden, June 10-13, 2013 PD Dr. Anne-Katrin Neyer; Prof. Peter McKiernan, PhD; Prof. Dr. Kathrin M. Möslein The contextual perspective of leader sensegiving: Understanding the role of organizational leadership systems 13th European Academy of Management Istanbul, Turkey, June 26-29, 2013 Constantin Söldner; PD Dr. Angela Roth; Dr. Frank Danzinger; Prof. Dr. Kathrin M. Möslein Towards Open Innovation in embedded systems AMCIS 2013 Chicago, USA, August 15-17, 2013 Hanna Plieth; Dr. Hagen Habicht; Prof. Dr. Kathrin M. Möslein Agents in organizational innovation communities: The wind of change. Imprint Editor: XXIV ISPIM Conference – Innovating in Global Markets: Challenges for Sustainable Growth Helsinki, Finland, June 16-19, 2013 Prof. Dr. Andreas Pinkwart, Dean of HHL Leipzig Reichwald, Ralf; Schipanski, Agnes; Haala, Felix (eds.) Prof. Peter McKiernan, PhD; PD Dr. Anne-Katrin Neyer; Prof. Dr. Kathrin M. Möslein Editorial Office: Exzellente Dienstleistungsarbeit: Wege der Professionalisierung CLIC Executive Briefing no. 025 Leipzig: 2013 Doctoral Theses Adamczyk, Sabrina Managing innovation contests. Challenges of attraction and facilitation Nürnberg: Dissertationsschrift, Friedrich-Alexander Universität Erlangen-Nürnberg, 2012 Bansemir, Bastian Huff, Anne Sigismund; Neyer, Anne-Katrin; Möslein, Kathrin M. Wiesbaden: Gabler Verlag, 2013 In Golsorkhi, D.; Rouleau, L.; Seidl, D.; Vaara, E. (eds.): Cambridge Handbook of Strategy as Practice Cambridge: University Press, 2012 Julia M. Jonas; Prof. Dr. Kathrin M. Möslein; PD Dr. Angela Roth CLIC Executive Briefing No. 026 Leipzig: Forthcoming In: Die Unternehmung, 66 (2012), 3, 277-294 Broader methods to support new insights into strategizing Open Innovation intermediaries in healthcare Organizational Innovation Communities Dumbach, Martin Establishing Corporate Innovation Communities Wiesbaden: Gabler Verlag, 2014 The contextual perspective of leader sensegiving: Understanding the role of organizational leadership systems 27th Australian and New Zealand Academy of Management (ANZAM) Conference Tasmania, December 4-6, 2013. (ANZAM 2013 Best Paper Award) PD Dr. Angela Roth; Prof. Dr. Kathrin M. Möslein; Julia M. Jonas Graduate School of Management Volker Stößel (MBA) Layout: CLAUS KOCHTM, Katrin Kirmse Printed by: Fischer druck&medien Joseph’s - The Service Manufactory. Cambridge Service Week - Academic Conference. Cambridge, October 3-4, 2013. Dr. Hagen Habicht, Stefan Thallmaier Exploring Key Challenges of Customer Co-Design. CASiM Conference 2013 “Change Management”. Leipzig, July 04, 2013. ISSN: 2195-0393 (Print) / ISSN: 2195-0407 (Online) Copyright 2014 by HHL Leipzig Graduate School of Management, Leipzig, Germany, hhl.de All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic, mechanical, photocopy, recording, or otherwise – without the permission of HHL. 62 HHL RESEARCH REPORT 2014 HHL Leipzig Graduate School of Management HHL is a university-level institution and ranks amongst the leading international business schools. The goal of the most traditional business school in Germanspeaking Europe is to educate effective, responsible and entrepreneurially-minded leaders. In addition to HHL’s international focus the combination of theory and practice plays a key role. 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