R&D Annual Report 2012

Faculty & Research R&D Annual Report 2012 ESMT European School of Management and Technology

Citation Grajek, M., J. Eggert, and C. Xitco (2012). R&D Annual Report 2012. ESMT European School of Management and Technology. Copyright 2012 by ESMT European School of Management and Technology, Berlin, Germany, www.esmt.org. 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, photocopying, recording, or otherwise - without the permission of ESMT.

1 Foreword In accordance with the School s mission, the role of research at ESMT is to develop and disseminate new knowledge, to foster sustainable economic growth, and to help business leaders succeed globally and act responsibly. In particular, ESMT s research aims at having a significant impact at the highest academic level. In 2012 ESMT faculty members published 28 peer reviewed articles (of which 14 are forthcoming) in the most influential academic journals. The School s mission is also reflected in the numerous research events organized at ESMT. Throughout the year, 55 research seminars took place at ESMT with scholars from some of the most prestigious international institutions. The Center for Leadership Development Research (CLDR) under the directorship of Associate Professor Konstantin Korotov held its 4 th Coaching Colloquium, co-organized the 4 th International Coaching Research Forum, and played a crucial role in organizing the ESMT s Annual Forum. ESMT also hosted the 12 th Annual Revenue Management & Pricing Section Conference in June, 2012. Michał Grajek, Associate Professor and Director of Research One of the highlights of the year was the inauguration of the Karl-Heinz Kipp Chair in Research. This chair for a junior professor was funded by Karl-Heinz Kipp to support young academics and exceptional research. Assistant Professor Sascha Steffen, who also joined ESMT in January 2012, is the current chairholder. Associate Professor Sumitro Banerjee is the new holder of the Ferrero Chair in International Marketing. ESMT research continues to attract grants from various funding sources. From the European Commission, Professor Paul Heidhues (project leader: Professor Botond Kőszegi of Central European University) received a European Research Council Starting Grant and Professor CB Bhattacharya together with postdoctoral research fellow Katja H. Brunk received a Marie Curie Intra-European Fellowship. Associate Professor Rajshri Jayaraman was generously supported by the International Growth Center and the Research Training Group, and Assistant Professor Sascha Steffen received a new grant from the Peter Curtius-Stiftung. ESMT is continuing its involvement in the Berlin Doctoral Program in Economics & Management Science (BDPEMS) under the coordination of Professor Paul Heidhues, director of PhD studies. Within this program ESMT closely collaborates with faculty members and researchers from other Berlin universities and institutions to provide an internationally competitive PhD education. This report details the ESMT research output in 2012. I hope you enjoy reading it! Michał Grajek

2 R&D Annual Report 2012 Contents 1. Faculty... 4 1.1 New hires... 4 1.2 Faculty and their research interests... 4 2. Publications... 8 2.1 Peer reviewed articles... 8 2.2 Non-peer reviewed articles... 11 2.3 Working papers... 12 2.4 Books... 14 2.5 Book chapters... 16 2.6 Case studies... 17 2.7 White papers and business briefs... 18 2.8 Other publications... 18 3. Editorial activities... 19 4. Events... 20 4.1 Research seminars and academic presentations... 20 4.2 Conferences, workshops, roundtables, and forums... 23 4.3 ESMT Open Lecture... 25 5. Grants... 26 5.1 New grants... 26 5.2 Continuing grants... 28 6. Chairs... 29 6.1 Chairs filled in 2012... 29 6.2 Continuing chairholders... 30 7. Center for Leadership Development Research (CLDR)... 31 7.1 Members currently associated with the CLDR... 31 7.2 Events... 32

3 8. PhD program... 34 8.1 ESMT and the Berlin Doctoral Program in Economics & Management Science (BDPEMS)... 34 8.2 ESMT PhD fellows and their research interests... 36 9. Research visitors... 37 10. Research seminars and conference presentations... 39 11. Research assistants... 44 About ESMT... 45

4 R&D Annual Report 2012 1. Faculty ESMT recruits, develops, and promotes a diverse and international world-class faculty. The school strives to build a productive environment that supports rigorous, deep, and original research aimed at top academic publications. Industry backing provides further opportunities to generate ideas with a strong practical impact that also feed substantial insights into creative teaching approaches. ESMT faculty is further enriched with a number of faculty professionals who combine strong business experience with academic credentials. 1.1 New hires Sascha Steffen Assistant Professor and Karl-Heinz Kipp Chair in Research Sascha Steffen, Assistant Professor Sascha Steffen joined ESMT in January 2012 and is the first holder of the Karl-Heinz Kipp Chair in Research. Previously he was an assistant professor at the Universität Mannheim in the department of Banking and Finance. From 2008 to 2009 Sascha was a visiting scholar at Stern School of Business at NYU and ESMT. He received his doctorate degree in finance with honors (summa cum laude) from the Goethe Universität Frankfurt in 2007. 1.2 Faculty and their research interests Full-time professors ESMT faculty: 32 professors and professionals 19 nations 6 female Zoltán Antal-Mokos (Hungary) Professor and Dean of Degree Programs Corporate strategy, strategic rationale for mergers and acquisitions, post-merger integration, and privatization Sumitro Banerjee (India) Associate Professor and Ferrero Chair in International Marketing Timing of launch, R&D investments, introduction strategies for successive new products, and multinational marketing Guillermo Baquero (Ecuador) Associate Professor Hedge and mutual funds, the behavior of hedge fund investors, behavioral finance, and experimental economics Özlem Bedre-Defolie (Turkey) Assistant Professor Applied microeconomics, industrial organization, and competition economics

Faculty 5 CB Bhattacharya (USA) Professor, E.ON Chair in Corporate Responsibility, and Dean of International Relations Business strategy innovation, CSR, sustainability, stakeholder engagement, marketing strategy, corporate identity and reputation Francis Bidault (France) Professor Technology strategy, new product development, technology alliances, and partnerships Matthew S. Bothner (USA) Professor and Deutsche Telekom Chair in Leadership and HR Development Measurement and consequences of social status in venture capital, professional sports, and higher education Linus Dahlander (Sweden) Assistant Professor Network dynamics, communities, and open and distributed innovation Francine Espinoza Petersen (Brazil) Associate Professor Consumer affect (emotions, moods, subjective experiences), consumer psychology and behavior, and luxury marketing Michał Grajek (Poland) Associate Professor and Director of Research Applied econometrics, industrial organization, international economics, law and economics, economics of networks, competition policy, and ICT Laura Guillén (Spain) Assistant Professor Leadership development, motivation to lead, emotional intelligence, gender diversity, and performance evaluation Paul Heidhues (Germany/USA) Professor, Lufthansa Chair in Competition and Regulation, and Director of PhD Studies Behavioral industrial organization, competition policy, consumer protection, behavioral economics, and applied game theory Peter Jarnebrant (Sweden) Assistant Professor Judgment and decision making, consumer behavior, marketing research, and pricing policy Rajshri Jayaraman (Canada) Associate Professor Development economics and the effect of incentives on individual and firm behavior

6 R&D Annual Report 2012 Konstantin Korotov (Russia) Associate Professor and Director of the Center for Leadership Development Research (CLDR) Psychological burdens of modern leadership, leadership development, career dynamics, and executive coaching Zhike Lei (China) Associate Professor Organizational behavior, safety and reliability in complex, time-pressured situations, and team dynamics Kristian Ove R. Myrseth (Norway) Assistant Professor Psychology of decision making and judgment, basic psychology of self-control, and perceptions of risk and uncertainty Mario Rese (Germany) Professor Solution selling, marketing accountability, and business models Jörg Rocholl (Germany) President, Professor, and Ernst & Young Chair in Governance and Compliance Corporate finance, impact of political connections on firm value, and functioning of the interbank lending market Catalina Stefanescu-Cuntze (UK/Romania) Associate Professor and Dean of Faculty Credit and financial risk, managerial decision making, revenue management, forecasting, statistics, and operations research Sascha Steffen (Germany) Assistant Professor and Karl-Heinz Kipp Chair in Research Financial intermediation (loan contract design, relationships monitoring) and banking (liquidity, crises, systemic risk, regulation) Stefan Wagner (Germany) Assistant Professor Economics of technology and innovation, intellectual property rights (patent protection), and innovation management Simon Wakeman (UK/New Zealand) Associate Professor Firm strategy for commercializing innovation, especially protecting against imitation and capturing value in the supply chain Faculty professionals Christoph Burger (Germany) Faculty Professional, ESMT and Managing Director, ESMT CS Energy supply industry, long-term industry development (consolidation and innovation), and decision making/negotiation

Faculty 7 Hans W. Friederiszick (Germany) Faculty Professional, ESMT and Managing Director, E.CA Economics Applied microeconomics and industrial organization with a specialization in competition economics Jan U. Hagen (Germany) Faculty Professional, ESMT and Head of the Practice Group Financial Services, ESMT CS Error management, crisis management, impact of leadership styles, and communication patterns on performance of flight crews Ulrich Linnhoff (Germany) Faculty Professional and Head of USW Netzwerk Programs, ESMT Accounting, performance measurement, controlling, private equity, and business simulations Olaf Plötner (Germany) Professor of Practice and Dean of Executive Education, ESMT and Managing Director, ESMT CS Strategic management, B2B marketing, and international sales management in technology-based B2B markets Affiliate professors Manfred F. R. Kets de Vries Distinguished Affiliate Professor Leadership and the dynamics of individual and organizational change Stefan J. Reichelstein Distinguished Affiliate Professor Cost and profitability analysis, decentralization, internal pricing and performance measurement Emeriti professors Derek F. Abell Professor Emeritus and Founding President Strategic marketing, general management, leadership in technology-based industries Wulff Plinke Professor Emeritus and Founding Dean Business strategy in industrial markets, market-oriented management, relationship marketing, pricing in industrial markets, and market-based accounting

8 R&D Annual Report 2012 2. Publications ESMT publishes in international academic journals, which are first-class in their respective fields. These research findings also provide cutting-edge and profound insights for the business community as well as the classroom through managerial publications and case studies. This rare integration of research and practice makes ESMT an outstanding location for generating relevant and ground-breaking knowledge. 2.1 Peer reviewed articles Forthcoming Linus Dahlander, Daniel McFarland Ties that last: Tie formation and persistence in research collaborations over time Administrative Science Quarterly ESMT publications: 28 peer reviewed articles of which: 14 are forthcoming 8 are A/A+ articles 17 non-peer reviewed articles 16 working papers 4 books of which: 1 is forthcoming 12 book chapters of which: 7 are forthcoming 10 cases, white papers, and business briefs 3 other publications Erkko Autio, Linus Dahlander, Lars Frederiksen Information exposure, opportunity evaluation and entrepreneurial action: An empirical investigation of an online user community Academy of Management Journal Johannes Liegsalz, Stefan Wagner Patent examination at the State Intellectual Property Office in China Research Policy Georg von Graevenitz, Stefan Wagner, Dietmar Harhoff Incidence and growth of patent thickets: The impact of technological opportunities and complexity Journal of Industrial Economics Benoit Dostie, Rajshri Jayaraman Do higher costs spur process innovations and managerial incentives? Evidence from a natural experiment Journal of Economics & Management Strategy Eitan Goldman, Jörg Rocholl, Jongil So Politically connected boards of directors and the allocation of procurement contracts Review of Finance Julian Mattes, Sascha Steffen, Mark Wahrenburg Do information rents in loan spreads persist over the business cycles? Journal of Financial Services Research Özlem Bedre-Defolie, Emilio Calvano Pricing payment cards American Economic Journal: Microeconomics

Publications 9 Onal Vural, Linus Dahlander, Gerry George Collaborative benefits and coordination costs: Learning and capability development in science Strategic Entrepreneurship Journal Kristian Myrseth, Conny Wollbrant A theory of self-control and naïveté: The blights of willpower and blessings of temptation Journal of Economic Psychology Laura Guillén, Willem Saris Competencies, personality traits, and job performance outcomes of middle managers: A motive-based approach Human Performance Hans Friederiszick, Nicola Tosini State aid modernization and its implications for the assessment of large investment projects: The relevance of screens in the regional aid guidelines European State Aid Law Quarterly Olaf Plötner, Jan Lakotta, Frank Jacob Differentiating market offerings using complexity and co-creation: Implications for customer decision-making uncertainty European Business Review Nora Grasselli, Thomas Gilmore Thickening case discussions through enactments Training and Management Development Methods Published Michał Grajek, Tobias Kretschmer Identifying critical mass in the global cellular telephony market International Journal of Industrial Organization 30(6): 496 507 Özlem Bedre-Defolie Vertical coordination through renegotiation International Journal of Industrial Organization 30(6): 553 563 Linus Dahlander, Lars Frederiksen The core and cosmopolitans: A relational view of innovation in user communities Organization Science 23(4): 988 1007 Paul Heidhues, Nicolas Melissas Rational exuberance European Economic Review 56(6): 1220 1240 Matthew Bothner, Young-Kyu Kim, Edward Bishop Smith How does status affect performance? Status as an asset vs. status as a liability in the PGA and NASCAR Organization Science 23(2): 416 433

10 R&D Annual Report 2012 Jérôme Massiani, Jens Weinmann Estimating electric cars emissions in Germany: An analysis through a pivotal marginal method and comparison with other methods Economics and Policy of Energy and the Environment 2: 131 155 Nale Lehmann-Willenbrock, Zhike Lei, Simone Kauffeld Appreciating age diversity and German nurse well-being and commitment: Coworker trust as the mediator Nursing and Health Sciences 14(2): 213 220 Peter Martinsson, Kristian Myrseth, Conny Wollbrant Reconciling pro-social vs. selfish behavior: On the role of self-control Judgment and Decision Making 7(3): 304 315 Bernd Süssmuth, Stefan Wagner A market's reward scheme, media attention, and the transitory success of managerial change Jahrbücher für Nationalökonomie und Statistik (Journal of Economics and Statistics) 232(3): 258 278 Benoit Dostie, Rajshri Jayaraman Organizational redesign, information technologies and workplace productivity B.E. Journal of Economic Analysis & Policy 12(1): 1 39 Michał Grajek, Lars-Hendrik Röller Regulation and investment in network industries: Evidence from European telecoms Journal of Law and Economics 55(1): 189 216 Jörg Rocholl The true significance of the EFSF downgrade Intereconomics 47(1): 2 3 Urs Müller Corruption by design? L ArtiMarche s struggles in Russia Emerging Markets Case Studies Collection 2(1): 1 10 Katja Brunk Un/ethical company and brand perceptions: Conceptualizing and operationalizing consumer meanings Journal of Business Ethics 111(4): 551 565

Publications 11 2.2 Non-peer reviewed articles English CB Bhattacharya Teaching sustainability to tomorrow s leaders EFMD Global Focus 6(3): 50 53 Deepak Somaya, David Teece, Simon Wakeman Business models and patent strate gies in multi-invention contexts Ivey Business Journal 76(5): 9 11 Michał Grajek ICT for growth: A targeted approach Bruegel Policy Contribution 10: 1 11 Best article award 2012: California Management Review Best Article Award 2012 Simon Wakeman Olaf Plötner Fighting back Euroasia Industry 3: 6 9 CB Bhattacharya The triple bottom line not a zero sum game HR Director 87: 48 49 CB Bhattacharya Engaging with stakeholders to create value Ernst &Young T Magazine 6: 48 49 CB Bhattacharya, Daniel Korschun, Sankar Sen What really drives value in corporate responsibility? McKinsey Quarterly 1: 14 16 Shuili Du, CB Bhattacharya, Sankar Sen Using corporate social responsibility to motivate and retain female employees CGO Insights Briefing Notes 31: 1 4 Non-English Jörg Rocholl Corporate Governance von Banken Zeitschrift für Bankrecht und Bankwirtschaft (ZBB) 5: 388 392 Konstantin Korotov Esli sotrudniki poimut, chto rukovoditel otnositsya k nim nespravedlivo, oni nachnut soznatelno delat gadosti [If employees realize that the manager is treating them unfairly, they will consciously do nasty things] Sekret Firmy 9(323): 97 102

12 R&D Annual Report 2012 Sascha Steffen, Markus Fischer, Christa Hainz, Jörg Rocholl Wie wirkt sich der Wegfall staatlicher Garantien auf die Risikoübernahme von Banken aus? ifo Schnelldienst 65(18): 17 21 Hans-Peter Burghof, Bernhard Speyer, Michael Kemmer, Jörg Rocholl, Georg Fahrenschon, Jörg Asmussen, Clemens Fuest Bankenunion: Ist eine gemeinsame europäische Bankenaufsicht ein neues Instrument der Bankenrettung? [Bank union: Does common European bank supervision constitute a new bank bail-out instrument?] ifo Schnelldienst 65(14): 3 25 Konstantin Korotov Nelzya obraschatsya s sotrudnikami, prodayuschimi nedvizhimost za neskolko millionov dollarov, kar s gruzchikami v magazine [You can t treat employees who sell multi-million dollar real estate as if they were handymen in a grocery store] Sekret Firmy 8(322): 87 88 Jan Hagen, Zhike Lei Am liebsten unter vier Augen Harvard Business Manager 6: 8 11 Konstantin Korotov Businessman platit partner pensiyu, realizuya svoyu potrebnost vyglyadet v chuzhikh glazakh khoroshim chelovekom [Here the businessman pays rent to his partner in order to satisfy his need to look good in the eyes of other people] Sekret Firmy 4(318): 109 112 Nora Grasselli, Adam Kotsis Creating people advantage: HR trends in the light of 2011 BCG study results Human Resources Magazin 4(1): 58 60 Konstantin Korotov Zhelanie dumat, chto my vedem dostoynuyu zhizn, sovershaya pri etom neblagovidnye postupki, ochen veliko [Our desire to think that we live a decent life while committing questionable acts is very big] Sekret Firmy 1/2(316): 75 76 2.3 Working papers ESMT series Francis Bidault, Thomas Hildebrand The distribution of partnerships benefits: Evidence from co-authorships in economics journals ESMT No. 12-08 Francis Bidault The dynamics of relational quality in co-development alliances ESMT No. 12-07

Publications 13 Peter Martinsson, Kristian Myrseth, Conny Wollbrant Cooperation in social dilemmas: The necessity of seeing self-control conflict ESMT No. 10 004 (R1) Francine Espinoza Petersen When do consumers indulge in luxury? Emotional certainty signals when to indulge to regulate affect ESMT No. 12 06 Hans Friederiszick, Nicola Tosini State aid modernization and its implications for the assessment of large investment projects: The relevance of market screens in the regional aid guidelines ESMT No. 12 05 Dietmar Harhoff, Georg von Graevenitz, Stefan Wagner Conflict resolution, public goods and patent thickets ESMT No. 12 04 Laura Guillén, Natalia Karelaia When opposites hurt: Similarity in getting ahead in leader-follower dyads as a predictor of job performance evaluations ESMT No. 11 12 (R1) Laura Guillén, Konstantin Korotov, Margarita Mayo Is leadership a part of me? An identity approach to understanding the motivation to lead ESMT No. 11 04 (R1) Simon Wakeman How does obtaining intellectual property rights impact technology commercialization strategy for start-up innovators? Reconciling the effects on licensing vs. financing ESMT No. 12 03 (R1) J.P. Eggers, Michał Grajek, Tobias Kretschmer Performance implications of core and complementary pre-entry experience: The role of consumer heterogeneity in mobile telephony ESMT No. 11 03 (R2) David Hsu, Simon Wakeman Costs and benefits of learning through alliances for entrepreneurial firms ESMT No. 11 02 (R2) Guillermo Baquero, Malika Hamadi, Andréas Heinen Competition, loan rates and information dispersion in microcredit markets ESMT No. 12 02 Martin Kocher, Peter Martinsson, Kristian Myrseth, Conny Wollbrant Strong, bold, and kind: Self-control and cooperation in social dilemmas ESMT No. 12 01

14 R&D Annual Report 2012 Non-ESMT series Paul Heidhues, Sven Rady, Philipp Strack Strategic experimentation with private payoffs GESY No. 387 Felix Freudenberg, Bjoern Imbierowicz, Anthony Saunders, Sascha Steffen Covenant violations, loan contracting, and default risk of bank borrowers NYU No. FIN-11-042 Joseph Clougherty, Michał Grajek International standards and international trade: Empirical evidence from ISO 9000 diffusion NBER No. 18132 2.4 Books Forthcoming Jan Hagen Confronting mistakes: Lessons from the aviation industry when dealing with errors Basingstoke: Palgrave Macmillan Published Christoph Burger, Jens Weinmann The decentralized energy revolution: Business strategies for a new paradigm Basingstoke: Palgrave Macmillan Francis Bidault Managing joint innovation: How to balance trust and control in strategic alliances Basingstoke: Palgrave Macmillan Non-English Olaf Plötner Counter Strategies im globalen Wettbewerb [Counter strategies in global markets] Berlin: Springer Gabler

Publications 15 An interview with Professor Francis Bidault about his new book Managing joint innovation: How to balance trust and control in strategic alliances Your book is entitled Managing joint innovation. What is joint innovation? These are partnerships between two or more firms that want to develop new capabilities (i.e., new products, services, technologies, processes) they plan to exploit either separately or together. The cooperation between Toyota and Tesla - the Californian company known for its innovative electric sports car - to develop an electric version of the RAV4 is one example. There we had two partners who needed each other s competences and assets to create this new product. Francis Bidault, Professor You say that there is an increasing number of this form of strategic alliance. Why are they emerging now? Many factors push companies to combine their resources in order to develop innovative capabilities, such as the growing cost of R&D for the next technology generations, the shortening of product life cycles, the need to combine different technologies. Today, developing a car requires a broad range of expertise no company can master on its own. Carmakers have therefore become adept at forming alliances to confront the challenge of innovation. As needed as they are, co-development alliances are difficult to manage. What are the main dangers they confront and how should partners cope with them? These alliances are indeed typically unstable, and many simply fail to grant any return on the partners investment. Those who survive often do so after drastic restructuring and require that the partners learn to pull together and work around unexpected difficulties. My book focuses on the critical task of managing relationships and communication in co-development alliances. However, good relational quality management will certainly not compensate for bad business strategies and poor execution of initiatives. Also, outstanding relationships will not survive when there is a lack of trust between partners and a desire for tighter control over one another. I suggest a specific approach for managing the relationship between organizations involved in co-development alliances. My recommendations are based on many cases that I have researched and an extensive review of recent management literature.

16 R&D Annual Report 2012 2.5 Book chapters Forthcoming Manfred Kets de Vries, Elizabeth Florent-Treacy, Konstantin Korotov Psychodynamic issues in organizational leadership In The Wiley Blackwell handbook of the psychology of leadership, change and organizational development, ed. H. Skipton Leonard, R. Lewis, A. Freedman, J. Passmore. Hoboken: John Wiley & Sons. Sascha Steffen, Viral Acharya Analyzing systemic risk of the European banking sector In Handbook on systemic risk, ed. J.-P. Fouque, J. Langsam. Cambridge: Cambridge University Press. CB Bhattacharya The importance of marketing for social innovation In Social innovation, ed. T. Osburg. Heidelberg: Springer. Daniel Korschun, CB Bhattacharya, Sankar Sen Stakeholder-centricity: Managing sustainability successfully In Sustainability Management: Nachhaltige und stakeholderorientierte Wertsteigerung, ed. F. Keuper, F. Neumann. Berlin: Logos. Hans Friederiszick Der Begriff der Wettbewerbsverzerrung unter Artikel 107 1TFEU [Distortion of Competition under Art 107 1 TFEU] Die Abwägungsprüfung unter Art 107 3c TFEU [The balancing test under Art 107 3c TFEU] In Europäisches Beihilfenrecht, ed. A. Birnstiel, M. Bungenberg, H. Heinrich. Baden-Baden: Nomos. Linus Dahlander, O. Alexy Managing open innovation In Handbook of innovation management, ed. M. Dodgson, D. Gann, N. Phillips. Oxford: Oxford University Press. Published Konstantin Korotov, Sheila Puffer, Daniel McCarthy, Vlad Vaiman Global careers: The Russian experience In Careers without borders: Critical perspectives, ed. C. Reis, Y. Baruch, 185 204. London: Routledge. Guillermo Gallego, Catalina Stefanescu Services engineering: Design and pricing of service features In The Oxford handbook of pricing management, ed. Ö. Özer, R. Phillips, 713 737. Oxford: Oxford University Press.

Publications 17 Paul Heidhues, Botond Kőszegi, Takeshi Murooka Deception and consumer protection in competitive markets In The pros and cons of consumer protection, ed. D. Sjöblom, 44 76. Stockholm: Swedish Competition Authority. Non-English Konstantin Korotov Coaching in MBA und EMBA Programmen [Coaching in MBA and EMBA programs] In Durch Coaching Führungsqualitäten entwickeln, ed. T. Eberle, S. Spoun, P. Kipfelsberger, 203 212. Zürich: Versus. Michael Holtermann, Jens Weinmann Rahmenbedingungen für ein Future Energy Grid [Regulatory framework for a future energy grid] In Future Energy Grid: Migrationspfade ins Internet der Energie, ed. H.-J. Appelrath, H. Kagermann, C. Mayer. München: Springer. 2.6 Case studies ESMT series Martin Kupp, Katharina Lange Medneo: Radiology as a service ESMT 812 0133 1 Case, ESMT 812 0133 3 Video, ESMT 812 0133 8 Teaching Note Katharina Lange Pina Bausch: Leadership as collective genius ESMT 412 0132 1 Case, ESMT 412 0132 8 Teaching Note Veit Etzold An old bank in a new country: Restructuring Nile Commercial Bank of South Sudan ESMT 212 0131 1 Case, ESMT 212 0131 8 Teaching Note, ESMT 212 0131 9 Martin Kupp Global product development strategy at Bosch: Selecting a development site for the new low-cost ABS platform ESMT 312 0130 1 Case, ESMT 312 0130 8 Teaching Note Sven Petersen, Francine Espinoza, Luc Wathieu Tchibo Ideas: Leveraging the creativity of customers ESMT 512 0129 1 Case, ESMT 512 0129 8 Teaching Note Case awards 2012: The case study: Waltraud Ziervogel at Konnopke's Imbiss: Re-inventing a Berlin icon won the Family Business Award in the EFMD Case Writing Competition organized by the European Foundation for Management Development The case study: An old bank in a new country: Restructuring Nile Commercial Bank of South Sudan placed Second Best in the 2012 CEEMAN/Emerald Case Writing Competition organized by the Central and East European Management Development Association. Francis Bidault, Ghim Meng Low Mobile operators in 2010: The smartphone challenge (A) ESMT 312 0127 1 Case A, ESMT 312 0127 8 Teaching Note

18 R&D Annual Report 2012 Francis Bidault, Ghim Meng Low Mobile operators in 2010: The smartphone challenge (B) ESMT 312 0128 1 Case B, ESMT 312 0127 8 Teaching Note Urs Müller, Veit Etzold Waltraud Ziervogel at Konnopke's Imbiss: Re-inventing a Berlin icon ESMT 512 0126 1 Case, ESMT 512 0126 8 Teaching Note 2.7 White papers and business briefs Hans Friederiszick, Linda Gratz Dominant and efficient: On the relevance of efficiencies in abuse of dominance cases ESMT No. WP 12 01 Christoph Burger, Jens Weinmann ESMT innovation index 2010: Electricity supply industry ESMT No. BB 12 01 2.8 Other publications Linus Dahlander, David Gann, Gerard George Taxonomy-analytical study for the project on open collaborative projects and IPbased models (recommendation 36) WIPO Report CDIP/8/INF/7 REV CB Bhattacharya Book excerpt: Leveraging corporate responsibility: The stakeholder route to maximizing business and social value Stanford Social Innovation Review Katja Brunk What is ethical? Conceptualizing consumer meanings 41st EMAC Annual Conference Proceedings

Editorial activities 19 3. Editorial activities CB Bhattacharya Editorial Review Board Member, Corporate Reputation Review Editorial Review Board Member, Business Ethics Quarterly Editorial Review Board Member, Journal of the Academy of Marketing Science Francis Bidault Editorial Board Member, Hi-tech Marketing Review Editorial Board Member, Business Management Review Editorial Board Member, Société Française de Management Linus Dahlander Editorial Board Member, European Management Review Michał Grajek Associate Editor, Information Economics and Policy Paul Heidhues Associate Editor, European Economic Review Associate Editor, The BE Journals in Theoretical Economics Konstantin Korotov Editorial Board Member, Emerald Emerging Markets Case-Studies Editorial Board Member, Journal of Leadership and Organizational Studies Editorial Board Member, Revista de Gestao (REGE) Mario Rese Journal Editor, International Journal of Revenue Management (IJRM) Editorial Board Member, Die Betriebswirtschaft (DBW) Catalina Stefanescu Editorial Board Member, Journal of Revenue and Pricing Management

20 R&D Annual Report 2012 4. Events In 2012 ESMT organized 55 research seminars and hosted seven conferences, workshops, roundtables, forums, and open lectures. 4.1 Research seminars and academic presentations ESMT research seminars: 60 2 The list includes the following seminar types: Faculty Research Seminars (FRS), Brown Bag Seminars (BBS), Berlin Behavioral Economics Seminar Series (BBE), Berlin Finance Seminar Series (FSS) as well as the two internal seminars The Work in Progress Seminar (TWIPS), and the Revise and Resubmit Seminar (R&R). Total of research seminars in 2012 50 40 30 20 12 2 5 2 13 Other FSS R&R BBE TWIPS BBS FRS Tobias Adrian (Capital Markets Function Research Group, New York Federal Reserve Bank) Financial intermediaries and the cross section of asset returns Thomas B. Astebro (HEC Paris) Business partners, financing, and the commercialization of inventions Tobias Berg (Institute of Corporate Finance, Humboldt-Universität zu Berlin) The term structure of risk premia: New evidence from the financial crisis Francis Bidault (ESMT) The benefits of co-authorship: Competencies vs. networking Sudheer Chava (College of Management, Georgia Institute of Technology) Are credit ratings still relevant? 10 19 Markus Christen (INSEAD) Estimating the effect of strategic variables with limited within-cross-section variance 0 Hans B. Christensen (Booth School of Business, University of Chicago) Mandatory IFRS reporting and changes in enforcement Joseph A. Clougherty (College of Business, University of Illinois) The determinants of value for non-merging rival firms Victor DeMiguel (London Business School) Practical portfolio optimization Hans Degryse (Hogenheuvelcollege, Katholieke Universiteit Leuven) On the non-exclusivity of loan contracts: An empirical investigation Adam Duhachek (Kelley School of Business, Indiana University, Marketing Department) Are princes always stingy and paupers always generous?: The role of power distance belief in charitable giving Rüdiger Fahlenbrach (Swiss Finance Institute, École Polytechnique de Lausanne) The dark side of outside directors: Do they quit ahead of trouble?

Events 21 Lapo Filistrucchi (Tilburg School of Economics and Management, Tilburg University) Price wars in two-sided markets: The case of the UK quality newspapers Clemens Fuest (Saïd Business School, University of Oxford) Fiscal union in Europe? Redistributive and stabilizing effects of an EU tax-benefit system Bernhard Ganglmair (Naveen Jindal School of Management, The University of Texas at Dallas) Product diffusion, substitution, and differentiation Martin Gargiulo (INSEAD) Does homophily affect performance? Gaston Gelos (International Monetary Fund) Country transparency and the global transmission of financial shocks Gerard George (Imperial College London) Optimism, vulnerability, and entrepreneurial intent: Occupation change intentions in rural East Africa Marco Giarratana (Bocconi University Milan) Product proliferation strategies and firm performance in a complex product space Daniel Gottlieb (Business Economics and Public Policy Department, The Wharton School, University of Pennsylvania) Narrow framing and life insurance Marc Gruber (EPFL Ecole Polytechnique Fédérale de Lausanne) The effects of opportunities and founder experience on new firm performance Jean Helwege (Finance Department, University of South Carolina) Financial firm bankruptcy and contagion Gilles Hilary (INSEAD) Ambiguity aversion, group heterogeneity and corporate investment Thomas Hildebrand (E.CA Economics) Flight to where? Evidence from bank investments during the financial crisis Lars Bo Jeppesen (Bocconi University) Competing with a crowd: Informally organized individuals as platform complementors Ron Kaniel (Fuqua School of Business, Duke University) The delegated Lucas tree Georg Kirchsteiger (European Center of Advanced Research in Economics and Statistics (ECARES), Université Libre de Bruxelles) Good rankings are bad: Why reliable rankings can hurt consumers

22 R&D Annual Report 2012 Christoffer Koch (Federal Reserve Bank of Dallas) Quantifying the effects of deposit deregulation on monetary policy transmission to credit: Bank level evidence from half a century Lars-Alexander Kuehn (Tepper School of Business, Carnegie Mellon University) A labor capital asset pricing model Nandini Lahiri (Kenan-Flagler Business School, University of North Carolina) Vertical integration, innovation and alliance portfolio: Implications for firm performance Zhike Lei (ESMT) Error management in teams: A team learning-based approach André Lucas (VU University Amsterdam) Conditional probabilities for Euro area sovereign default risk Paola Manzini (School of Economics and Finance, University of St. Andrews) Moody choice Jens Martin (Amsterdam Business School, University of Amsterdam) Secondary buyouts Leslie Marx (The Fuqua School of Business, Duke University) Buyer resistance for cartel versus merger Daniel Metzger (Department of Finance, Stockholm School of Economics) Financial expert CEOs: Corporate policies, CEO choice, and the firm life cycle Konstantin Milbradt (Sloan School of Management, MIT) Maturity rationing Wieland Mueller (Department of Economics, Universität Wien) Naked exclusion in the lab: The case of sequential contracting Özgür Özlük (College of Business, San Francisco State University) Optimal keyword bidding in search-based advertising with target exposure levels Francine Espinoza Petersen (ESMT) Indulging and proud of it: Positive emotional responses to reason-based luxury consumption Joshua D. Rauh (Hoover Institution, Stanford University) Linking benefits to investment performance in US public pension systems Andreas Roider (Universität Regensburg) The role of salience in performance schemes: Evidence from a field experiment Stefan Ruenzi (Fakultät für Betriebswirtschaftslehre, Universität Mannheim) Sex matters - gender and prejudice in the mutual fund industry Michael Ryall (Rotman Business School, University of Toronto) Full knowledge to ambiguity: How experience affects alliance contracts

Events 23 Markus Schmid (Universität Mannheim) The value of director industry experience Dora Simroth (ESMT) Does cultural diversity help or hinder entrepreneurs? Evidence from Eastern Europe and Central Asia Vinod Singhal (College of Management, Georgia Institute of Technology) Supply chain risks and financial performance: Evidence from demand-supply mismatches Daniel Streitz (School of Business and Economics, Humboldt Universität zu Berlin) Relationship lending and the use of performance-sensitive debt (with Daniel Streitz (Humboldt University)) Devanathan Sudharshan (Gatton College of Business and Economics, University of Kentucky) Fuzzy front end, choice making, NPD metrics - what do they have in common? Alex P. Thevaranjan (Martin J. Whitman School of Management, Joseph I. Lubin School of Accounting, Syracuse University) The mitigation of performance measure manipulation: The role of moral sensitivity Ana Valenzuela (Zicklin School of Business, Baruch College) Pleasurable surprises: A cross-cultural study of consumer responses to unexpected incentives Joachim Vosgerau (Tepper School of Business, Carnegie Mellon University) Lottery tickets versus uncertain gift certificates: The influence of framing on willingness to pay as an explanation of the uncertainty effect Stefan Wagner (ESMT) Indirect knowledge transfer - the bridging role of professional service firms Andrew Winton (Carlson School of Management, University of Minnesota) Competition and corporate fraud waves Mary Zellmer-Bruhn (Carlson School of Management, University of Minnesota) Are we who I thought we were? Examining how individuals perceptions of similarity to their team change over time. 4.2 Conferences, workshops, roundtables, and forums 12th Annual Revenue Management & Pricing Section Conference June 29 30 The INFORMS Revenue Management Conference was founded in 2001 and hosted at Columbia University during its first three years. Since then, the conference has grown considerably in attendance, quality, and reputation. 2012 was the second time the conference took place outside North America. The participants came from

24 R&D Annual Report 2012 All participants agreed that this event was a fantastic success, one of the best in the line of such events so far. In making this event a success, ESMT has steeply increased its visibility and has put the School on the radar screen of the research community. Conference participant over 15 different countries, reflecting the breadth of the global revenue management research network. Hosting the INFORMS Revenue Management and Pricing Conference is an expression of ESMT s commitment to high standards of academic research and to knowledge dissemination. Research at ESMT follows a truly interdisciplinary approach and fosters collaboration across subject boundaries. Similarly, the conference program included presentations at the interface of fields as diverse as economics, marketing, statistics, and operations research. The 12th INFORMS Revenue Management and Pricing Conference featured a similar mix of academic and practitioner presentations as in the previous years. During the two conference days, more than 60 researchers presented their work and shared their findings, methods, and theories. Undoubtedly they generated stimulating discussions and provided thought-provoking new approaches. The conference provided an excellent forum for this exchange of knowledge and ideas. ESMT/Humboldt Workshop on Organizational Behavior, Corporate Social Responsibility, and Responsible Leadership June 6 7 This workshop was a joint effort between ESMT and the Humboldt-Universität zu Berlin with the aim of giving PhD and Master's students the opportunity to present and discuss their original research with junior and senior faculty members in the area of Organizational Behavior (OB), Corporate Social Responsibility (CSR), and Responsible Leadership. The workshop was jointly organized by Zhike Lei (ESMT) and Joachim Schwalbach (Humboldt-Universität zu Berlin). Berlin Workshop on Innovation, Entrepreneurship, and Strategy November 5 The overall goal of this half-day workshop was to provide an opportunity for an open and informal exchange between Berlin-based researchers interested in the fields of innovation, entrepreneurship and strategy. The workshop brought together researchers mainly from Freie Universität, Technische Universität, and ESMT. It allowed participants to briefly present either an on-going research project or to give a short summary of their current work. The workshop contributed to a better integration of those in Berlin s research community who are interested in innovation, entrepreneurship and strategy and allowed the participants to get a better knowledge of the work that is being pursued by their peers in Berlin. Sustainable Business Roundtable Integrating sustainability into branding and marketing strategy April 26 27 In the 3rd meeting of the ESMT SBRT, participants of 16 companies discussed the role of sustainability in shaping the brand and marketing strategy. Most of the participating companies were represented by a corporate responsibility/ sustainability manager as well as by a colleague from the marketing and communications department. The SBRT meeting focused on the opportunities and

Events 25 challenges of integrating sustainability into a company's branding and marketing strategy. The keynote address was given by Gail Klintworth (Unilever) who introduced participants to sustainability and marketing at Unilever. The academic perspective was provided by Professor N. Craig Smith (INSEAD). He familiarized attendees with the halo effect. BASF s sustainability, eco-efficiency, and traceability (S.E.T.) initiative was the topic of Dr. Christoph Günther s (BASF) presentation. Sustainable Business Roundtable Integrating sustainability into innovation strategy November 13 14 The 4th meeting of the ESMT SBRT focused on the opportunities and challenges of integrating sustainability into innovation strategy. For one-and-a-half days, representatives of the 15 companies delved into the topic of innovation and sustainability. A workshop on the successful integration of sustainability into innovation led by Faculty Professional Christoph Burger and Professor CB Bhattacharya brought new insights right from the beginning. The following day, Martin Hintz (Allianz) introduced participants to microinsurance at Allianz. A second best practice example was provided by Anne Roulin (Nestlé) who focused on environmental sustainability in the context of the food value chain. ESMT/E.CA Economics Expert Forum on Pricing Strategies and Competition Law & Economics October 12 Pricing strategies are one of the most hotly debated areas of competition law and economics. With firms being faced with tighter financial constraints and policy makers shifting focus to end consumer goods, pricing related dominance cases are in their heyday. But in which circumstances is a low price strategy pro-competitive; where is it anti-competitive? Do margin squeeze provisions offer an easy way to catch offenders? Do we need excessive pricing cases for collectively dominant firms as a complement to cartel investigations? And what is the Commission s policy regarding vertical price restraints such as retail price maintenance or most favored nation clauses? These questions will be discussed with a high-level panel of policy stakeholders and economists. 4.3 ESMT Open Lecture Donald M. Berwick Former Administrator of the Centers for Medicare and Medicaid Services, U.S. Dept. of Health and Human Services What health care reform should mean

26 R&D Annual Report 2012 5. Grants ESMT continued to develop its research grant area in 2012 receiving funds from the European Commission for a European Research Council Starting Grant and a Marie Curie Intra-European Fellowship. ESMT also secured an International Growth Center Grant, and an RTG 1659 Database Grant as well as new funding for a research project from its trust provider the Peter Curtius-Stiftung. 5.1 New grants European Research Council Starting Grant Project leader(s): Botond Kőszegi Supporting partner(s): Paul Heidhues Project title: Behavioral theory and economic applications 375,000 The European Research Council (ERC) has bestowed a team of researchers including ESMT Professor and Lufthansa Chair in Competition and Regulation Paul Heidhues a starting grant for five years. The team, led by Professor Botond Köszegi of Central European University and Berkeley, will research Behavioral theory and economic applications. In particular, Professor Heidhues will explore the implications for market outcomes, welfare, and policy when consumers misperceive certain aspects of products or contracts. Established by the European Commission, the ERC encourages the highest quality research in Europe through competitive funding and supports frontier research across all fields on the basis of scientific excellence. In this year s Starting Grant competition, the ERC received 4741 applications, from which only 11.3 per cent early-career top researchers have been granted funding for their research projects. Marie Curie Intra-European Fellowship (IEF) Project leader(s): Katja Brunk, CB Bhattacharya Project title: Researching consumer perceived ethicality (CPE) of companies and brands 174,475 Issues such as corporate social responsibility (CSR) and business ethics have increasingly taken center stage in today s society. While researchers agree that consumers react negatively/positively to companies they perceive as un/ethical, the actual question of what evokes such a negative or positive perception has not been investigated. To this day, little is known about how moral equity is generated and emerges in the consumer s mind. This research shall redress this research imbalance. In order to better understand the link between un/ethical corporate

Grants 27 conduct and consumer responses, the question of how ethical perceptions are formed and affected by corporate behavior is of utmost importance. The planned research hopes to facilitate much-needed theory building and deeper insight into consumer reactions to corporate ethics, CSR, or corporate reputation efforts. Any subsequent research investigating notions of company and brand misconduct, scandal spillover effects, or, more generally, any facets of ethical consumption will benefit from this conceptualization. International Growth Center Project leader(s): Debraj Ray Supporting partner(s): Rajshri Jayaraman, Shing-Yi Wang Project title: Gender differences in health investment: Evidence from health care providers in India 15,977 In developed countries, males outnumber females at birth, but that imbalance begins to redress itself soon after. The combined effect is (or should be) a roughly equal proportion of men and women in the population as a whole. That is not the case in large parts of Asia: in India and China, the overall ratio of males to females is around 1.06. Much attention has been placed on skewed sex ratios at birth and early childhood. Recent research by Anderson and Ray (2010) implies however, that in India age and disease are prominent factors in cases of missing women. This project is devoted to investigating one particular pathway for why this might be, namely, whether and why there may exist gender differentials in the seeking of medical care. The International Growth Center (IGC) grant finances the collection and recording of patient records from the Aravind Eye Hospital in South India. The data, covering over 60,000 patients, contain various measures of disease intensity, which allows us to evaluate the extent to which eye health deteriorates before men and women seek care. Peter Curtius-Stiftung Sascha Steffen An inquiry into the Eurozone financial sector distress 16,000 The goal of this study is to investigate the bank behavior that can explain how the Eurozone financial sector entered such severe distress as it did during 2010 11. In particular, we will examine the hypotheses concerning extensive government support in 2008 and the induced moral hazard, the inter-connectedness of banks, and the lack of recapitalization incentives due to debt overhang once the sovereign debt problems materialized in 2009. The study will draw on a large number of datasets to examine the cross-sectional variation in bank behavior so as to trace the impact of differential government guarantee packages in 2008 on bank

28 R&D Annual Report 2012 portfolios, in terms of overall lending, inter-bank lending as well as holdings of sovereign bonds; on discretionary write-downs taken by banks; and on the extent of capital raised by banks. RTG 1659 Database Grant Project leader(s): Rajshri Jayaraman Project title: Gender differences in health investment: Evidence from health care providers in India 6,950 The RTG funding is earmarked for a pilot household survey, in which a subsample of patient households are administered a household survey. This will enable us to understand not just whether, but why there may exist gender differentials in the seeking of medical care in India. In particular, we wish to gather economically relevant household data which enables us to analyze how the costs faced by households affect the decisions of men and women to seek health care. 5.2 Continuing grants Peter Curtius-Stiftung Mario Rese, Martin Kupp, Vincent Onyemah Investigation into why organizations lose outstanding salespeople through promotions to sales leadership positions 33,100 Rajshri Jayaraman, Jörg Rocholl Promoting entrepreneurship through microcredit 20,000 Zhike Lei Affective ingenuity: Linking emotional contagion and team creativity 17,000 Francine Espinoza Gilt or guilt? Indulgent consumption and emotions 10,000 Linus Dahlander Evaluating ideas: When do firms listen to ideas by users? 8,000 Marie Curie Initial Training Network (ITN) Project leader(s): Francine Espinoza Petersen Project title: The CONsumer COmpetence Research Training (CONCORT)

Chairs 29 6. Chairs 6.1 Chairs filled in 2012 Sascha Steffen Assistant Professor Karl-Heinz Kipp Chair in Research This chair for a junior professor was funded by Karl-Heinz Kipp to support young academics and exceptional research. It was awarded to Assistant Professor Sascha Steffen who joined ESMT in January 2012 and received his doctorate degree in finance with the highest honors from Goethe University in Frankfurt. From 2008 to 2009 Sascha was a visiting scholar at Stern School of Business at NYU and ESMT. His research has been published in leading finance journals such as the Journal of Financial Economics, Review of Financial Studies and the Journal of Banking and Finance and has received several Best Paper Awards. His research has been supported by the FDIC and the Deutsche Forschungsgemeinschaft (DFG). In 2010 Sascha was awarded the Lamfalussy Fellowship from the European Central Bank. Sumitro Banerjee Associate Professor Ferrero Chair in International Marketing The Ferrero Chair in International Marketing was established at ESMT in 2009 with the generous support of Ferrero Deutschland GmbH. The aim of the Ferrero Chair in International Marketing is to foster excellent research in the area of marketing with a focus on innovation. Professor Luc Wathieu was the holder of this chair until August 2010. In July 2012, this chair was awarded to Associate Professor Sumitro Banerjee. Sumitro joined ESMT in 2009 and previously held the position of assistant professor of marketing at the Martin J. Whitman School of Management, Syracuse University. He received his PhD in Management with specialization in Marketing from INSEAD in 2004. He holds a Master of International Business from the Indian Institute of Foreign Trade and a Bachelor of Technology from the Indian School of Mines. Sumitro is a quantitative researcher specializing in game theoretic models of interesting market phenomena. He also makes use of advanced techniques of optimization and econometrics for his research which is focused on innovations, R&D, and market entry decisions. His research aims to deepen our insights in the area of marketing new products where the vast majority of firm decisions continue to be taken based on gut feel and more than 90 percent of new product initiatives are failures. In particular, his research focuses on the timing of launch, R&D investments, introduction strategies for successive new products, and multinational marketing.

30 R&D Annual Report 2012 6.2 Continuing chairholders CB Bhattacharya Professor and Dean of International Relations E.ON Chair in Corporate Responsibility Matthew S. Bothner Professor Deutsche Telekom Chair in Leadership and HR Development Paul Heidhues Professor and Director of PhD Studies Lufthansa Chair in Competition and Regulation Jörg Rocholl Professor and President Ernst & Young Chair in Governance and Compliance

Center for Leadership Development Research (CLDR) 31 7. Center for Leadership Development Research (CLDR) ESMT s CLDR continues to function as a flexible umbrella arrangement for various types of collaboration between academics and practitioners with learning and development and HR backgrounds, as well as individual executives collaborating on a particular practice-based question, academically defined theoretical problem, or methodology issue related to the development of leadership and leaders in today s organizations, particularly those in the field of business. The Center is well-suited for dealing with the complex questions of leadership development, as its theoretical exploration endeavors go hand in hand with teaching and coaching practicing managers. The CLDR is a platform for collaboration between professors, faculty professionals, practitioners, and executive coaches interested in promoting a better understanding of leadership development and in experimenting with leadership development methods and tools. The following lists of current members and events held reflect the character of the CLDR and the expertise of both its academics and practitioners. The research output of the individual members who belong to ESMT is listed in chapters 1. Publications and 10. Research seminars and conference presentations. Konstantin Korotov, Associate Professor and Director of the Center for Leadership Development Research (CLDR) 7.1 Members currently associated with the CLDR Andreas Bernhardt Program Director and Executive Coach, ESMT CS Elizabeth Florent-Treacy Research Director, INSEAD Global Leadership Center Laura Guillén Assistant Professor Bülent Gögdün Program Director, ESMT CS Manfred Kets de Vries Distinguished Affiliate Professor, ESMT and The Raoul de Vitry d'avaucourt Chaired Clinical Professor of Leadership Development, INSEAD Svetlana Khapova ESMT Visiting Faculty, Associate Professor of Career Studies and Director of Doctoral Education, Faculty of Economics and Business Administration, Vrieje Universiteit, Amsterdam, The Netherlands

32 R&D Annual Report 2012 Konstantin Korotov Associate Professor and Director of the Center for Leadership Development Research (CLDR) Zhike Lei Associate Professor Ulf Schäfer Program Director, ESMT CS 7.2 Events The 4th International Coaching Research Forum Defining moments in coaching: Shaping the future February 8-9 For the second time ESMT s CLDR ran an important event in the field of coaching research and practice together with the Institute of Coaching at McLean Hospital, a Harvard Medical School Affiliate, and Cathay Pacific airlines. The previous conference, the 3rd International Coaching Research Forum, took place in December 2010 at the ESMT Campus in Berlin. Acknowledging the growth of coaching worldwide, it was decided to conduct this meeting in the Asia Pacific region, namely, Hong Kong. 4th ESMT/KDVI Coaching Colloquium Different! Coaching across dissimilarities November 30 December 1 ESMT s CLDR ran its 4th ESMT Coaching Colloquium. This event built on the success of the previous ESMT Coaching Colloquia held in 2009, 2010, and 2011. It was organized together with the Kets de Vries Institute (KDVI), London, UK. The Colloquium served as a further opportunity for academics, practicing leadership coaches, human resources professionals, and management consultants to enhance their knowledge, skills, and networks through two days of intensive collaboration and peer consultation. The Colloquium also served as an opportunity to gather data for research on coaching new generations of employees. Academic speakers included: Tatiana Bachkirova (Oxford Brookes University), Elizabeth Florent-Treacy (INSEAD Global Leadership Center), Susan David (Institute of Coaching at McLean Hospital), Manfred Kets de Vries (ESMT and INSEAD), and Julia Millards, a former ESMT MBA student, who presented a paper based on her MBA thesis.

Center for Leadership Development Research (CLDR) 33 ESMT Annual Forum 2012 Leading across generations Workforce challenges and opportunities June 13 15 The forum brought together a unique mix of corporate, academic, and public policy leaders. Coming from three continents, the cutting-edge presentations in this truly international program were on inter-generational communication, skills transfer, organizational change, commitment and motivation, learning and changing workplace structures. Presenting institutions included Accenture, Axel Springer, Harvard University, Stanford University, McKinsey & Company, Moscow State University, PepsiCo Russia, and more. The 3rd Annual ESMT Responsible Leadership Award was awarded to Mario Monti, President of the Council of Ministers and Minister of Economy and Finance of the Republic of Italy, on June 13 of the forum. The award honors extraordinary leadership in promoting responsible business practices and is bestowed annually to an outstanding business figure who has demonstrated a deep commitment to the principles of sustainability and whose actions have inspired others. German Federal Minister of Finance, Wolfgang Schäuble, presented Mario Monti with the award and held the laudatory speech. ESMT Professor Konstantin Korotov acted as program chair for this event organized in cooperation with the International Leadership Association (ILA). Andreas Bernhardt organized and chaired a session GSG 9: Leading across generations in a high-performance public sector organization with the founder and current commander of the German elite police forces participating. Ulf Schäfer presented an experiential learning session Handling difficult questions about leading across generations. Among noticeable contributions to the Annual Forum there were presentations, panel discussions, and workshops by ESMT professors Matthew Bothner and CB Bhattacharya, as well as presentations from faculty from Stanford and Harvard Universities.

34 R&D Annual Report 2012 8. PhD program ESMT, as an academic institution dedicated to the development and dissemination of knowledge for sustainable growth, believes high-quality PhD education is an important part of its mission. Currently, ESMT educates PhD students mainly through the active participation in the Berlin Doctoral Program in Economics and Management Science (BDPEMS). Paul Heidhues, Professor, Lufthansa Chair in Competition and Regulation, and Director of PhD Studies Within this program ESMT closely collaborates with faculty members and researchers from Freie Universität Berlin, Humboldt-Universität zu Berlin, and Technische Universität Berlin as well as Wissenschaftszentrum Berlin für Sozialforschung (WZB) and Deutsches Institut für Wirtschaftsforschung (DIW) to provide internationally competitive PhD education. In addition, doctoral students are always welcome and are common participants in many of the ESMT research seminars, workshops, and conferences. Last but not least, ESMT PhD fellows - who have offices on campus and have chosen to work together with our faculty - contribute to all facets of our academic life at ESMT. Although ESMT does not have the right to grant PhDs, the following pages highlight some of our activities to educate and promote PhD students. 8.1 ESMT and the Berlin Doctoral Program in Economics & Management Science (BDPEMS) ESMT is an active partner of the Berlin Doctoral Program in Economics and Management Science (BDPEMS), and is involved in all aspects of the program. The following ESMT faculty members are also BDPEMS faculty members: Sumitro Banerjee Associate Professor and Ferrero Chair in International Marketing Özlem Bedre-Defolie Assistant Professor Matthew S. Bothner Professor and Deutsche Telekom Chair in Leadership and HR Development Paul Heidhues Professor, Lufthansa Chair in Competition and Regulation, and Director of PhD Studies Catalina Stefanescu-Cuntze Associate Professor and Dean of Faculty Stefan Wagner Assistant Professor

PhD program 35 Spring 2012 BDPEMS classes The heart of the involvement of ESMT, however, lies in the teaching of numerous PhD-level classes. In 2012 ESMT faculty taught the following courses in the BDPEMS program: Core courses: Sumitro Banerjee Management Science II Module 1: Marketing models Paul Heidhues Microeconomic Analysis II: Part 1 Stefan Wagner Management Science II Module 2: Intellectual property rights and the market for technology Elective courses: Paul Heidhues Industrial Organization Rajshri Jayaraman Regulation and the labour market (Research Training Group Program) Anthony Saunders, NYU Stern, organized by Sascha Steffen Short course: Loan pricing and lending relationships, June 25/26 Fall 2012 BDPEMS classes Core course: Matthew S. Bothner/Linus Dahlander Management Science I: The analysis of economic and social networks Elective courses: Paul Heidhues Behavioral Economics Research class in Behavioral Economics connected to the Berlin Behavioral Economics Seminar Series jointly organized by DIW, ESMT, WZB, and TU Berlin Zhike Lei Organizational Behavior

36 R&D Annual Report 2012 8.2 ESMT PhD fellows and their research interests ESMT PhD fellowships were created in 2008 with the aim of supporting one or two outstanding students each year. These fellowships are awarded based on intellectual excellence, evidence of personal and professional achievement, as well as evidence of a strong potential to conduct independent research. Current fellows are financed either by ESMT, the Gesellschaft der Freunde und Förderer e.v., or directly through a grant from the Einstein Stiftung Berlin or CONCORT. ESMT PhD fellows have offices on campus, take part in the intellectual life on campus, and when having completed their course work either work together with or under the supervision of an ESMT faculty member on their own research. The following current students from the BDPEMS program are ESMT PhD fellows: Cara de Boer CONCORT Early Stage Researcher Consumer behaviors and decision making Ning Chen CONCORT Early Stage Researcher Consumer behaviors and decision making Benedikt Meyer-Bretschneider Einstein Stiftung Berlin Fellowship Behavioral economics and environmental economics Michael Raven Gesellschaft der Freunde und Förderer e.v. Corporate finance, innovation and entrepreneurship, especially topics with interdisciplinary aspects Dora Simroth ESMT PhD Fellow Industrial organization and network economics Axel Stahmer Einstein Stiftung Berlin Fellowship Financial markets and behavioral economics

Research visitors 37 9. Research visitors During 2012 ESMT hosted researchers from many different institutions, who visited and collaborated with ESMT faculty on different projects. This section gives details on these research visits. Noah Askin (Booth School of Business, University of Chicago) January 15 21 Tobias Berg (Humboldt Universität zu Berlin) June 25 July 06 Jillian Berry (Harvard Business School, Harvard University) January 9 July 13 Lawrence E. Blume (Department of Economics, Cornell University) June 18 December 14 21 Basak Canboy (ESADE Spain) May 29 June 22 Joseph A. Clougherty (College of Business, University of Illinois) October 10 17 Stefano DellaVigna (Department of Economics, University of California, Berkeley) August 23 30 Isaac Dinner (IE Business School) May 14 29 Lars Frederiksen (Department of Business Administration, Aarhus University) February 13 14 Andreas Grunewald (Rheinische Friedrich-Wilhelms-Universität Bonn) April 17 18 Magdalena Ignatowski (Johann Wolfgang Goethe-Universität, Frankfurt) March 5 7 May 22 24 Josef Korte (McKinsey) February 6 10 Botond Kőszegi (Central European University and University of California, Berkeley) May 25 June 4 December 10 14

38 R&D Annual Report 2012 Nale Lehmann-Willenbrock (Department of Industrial/Organizational and Social Psychology, TU Braunschweig) May 31 June 1 Ulrike M. Malmendier (Department of Economics, University of California, Berkeley) August 23 30 Daniel Metzger (Stockholm School of Economics) June 13 July 10 Özgür Özlük (College of Business, San Francisco State University) February 1 May 1 Ioana Popescu (INSEAD) June 25 30 Anthony Saunders (Leonard N. Stern School of Business, New York University) June 23 July 7 David H. Solomon (Marshall School of Business, University of Southern California) August 21 23 Alex P. Thevaranjan (Martin J. Whitman School of Management, Syracuse University) March 12 16 Marno Verbeek (Rotterdam School of Management, Erasmus University) December 6 9 Christoph Wagner (Bonn Graduate School of Economics, Universität Bonn) February 17 18 Mary E. Zellmer-Bruhn (Carlson School of Management, University of Minnesota) February 12 18 October 8 12

Research seminars and conference presentations 39 10. Research seminars and conference presentations Sumitro Banerjee 2012 Marketing Science Conference, Boston University, Boston, MA, USA 4th Workshop on Marketing Metrics, Risk and Performance Modeling, Humboldt Universität zu Berlin, Berlin, Germany International Marketing Conference - MARCON 2012, Indian Institute of Management, Calcutta, India The 3rd Conference Customer Strategies for Sustained Growth (CSSG), INSEAD, Fontainebleau, France Guillermo Baquero Annual Meeting, Financial Management Association (FMA), Atlanta, GA, USA Berlin Behavioral Economics Workshop, Deutsches Institut für Wirtschaftsforschung (DIW), Berlin, Germany Andreas Bernhardt 14th Annual ILA Global Leadership Conference, ILA International Leadership Association, Denver, CO, USA 4th International Coaching Research Forum, Institute of Coaching at McLean/Harvard University with ESMT, Hong Kong, China CoachSource Connect Keynote Webinar, CoachSource, Franklin Lakes, NJ, USA Society of Consulting Psychology Mid Winter Conference, SCP, Pasadena, CA, USA CB Bhattacharya Berlin Study Group on Corporate Responsibility, ESMT, Berlin, Germany Business, Economics & Public Policy Seminar, Georgetown Center for Business & Public Policy, McDonough School of Business, Georgetown University, Washington, DC, USA EFMD-ESMT Symposium on the Future of Management Education, ESMT European School of Management and Technology, Berlin, Germany INSEAD's 27th Sustainability Executive Roundtable, INSEAD, Fontainebleau, France Innovation Management in Asia and Europe, Days of India, Technische Universität Berlin, Berlin, Germany International Marketing Conference - MARCON 2012, Indian Institute of Management, Calcutta, India Research Seminar, Católica Lisbon School of Business and Economics, Lisbon, Portugal Research Seminar, Goizueta Business School, Emory University, Atlanta, GA, USA Research Seminar, Harvard Business School, Boston, MA, USA Research Seminar, Indian Institute of Corporate Affairs, Manesar, India Research Seminar, The Conference Board, Washington D.C., USA Research Seminar, UNICEF, Geneva, Switzerland Research Seminar, University of Groningen, Groningen, The Netherlands Research Seminar, University of North Carolina at Chapel Hill, Chapel Hill, NC, USA Research Seminar, Wharton Program for Social Impact, Philadelphia, PA, USA Best paper awards 2012: MARCON 2012 1 st Place: Sumitro Banerjee 2 nd Place: CB Bhattacharya 4th CIRP International Conference on Industrial Product-Service Systems Mario Rese EFA 39 th Annual Meeting Jörg Rocholl

40 R&D Annual Report 2012 Stakeholder Theory Conference, Olsson Center for Applied Ethics, Charlottesville, VA, USA Webinar, EABIS, Brussels, Belgium Webinar, Georgia Center for Nonprofits, Atlanta, GA, USA Webinar, International Leadership Association (ILA), Silverspring, MD, USA Matthew Bothner 28th EGOS Colloquium, European Group for Organizational Studies (EGOS), Helsinki, Finnland INFORMS Revenue Management and Pricing Section Conference, Institute for Operations Research and the Management Sciences, Berlin, Germany Christoph Burger 12th IAEE European Energy Conference, Ca' Foscari University, Venice, Italy Linus Dahlander Research Seminar, ETH Zurich, Zurich, Switzerland Research Seminar, Ludwig-Maximilians-Universität (LMU), Munich, Germany Sumantra Ghoshal Conference on Managerially Relevant Research, London Business School, London, UK Francine Espinoza Petersen Asia-Pacific Association for Consumer Research Conference, ACR, Queenstown, New Zealand European Marketing Academy Conference, EMAC, Lisbon, Portugal North American Association of Consumer Research Conference, ACR, Vancouver, Canada Hans Friederiszick 10th ACE Annual Conference, ACE, Paris, France 10th Experts' Forum on New Developments in European State Aid Law, EStAL, Brussels, Belgium Brownbag Seminar, Copenhagen Business School, Copenhagen, Denmark Competition Roundtable, OECD, Paris, France Michał Grajek 3rd Workshop on the Economics of ICTs, University of Oporto, Porto, Portugal Annual Conference of the European Association for Research in Industrial Economics, EARIE, Rome, Italy National Bureau of Economic Research Conference, NBER, Tucson, AZ, USA Research Seminar, Telecom ParisTech, Paris, France Research Seminar, University of Illinois at Urbana-Champaign, Champaign, IL, USA Laura Guillén Academy of Management Annual Meeting, AoM, Boston, MA, USA European Group for Organizational Studies Conference, EGOS, Helsinki, Finland Research Seminar, ESADE Business School, Barcelona, Spain Research Seminar, Instituto de Empresa, Madrid, Spain

Research seminars and conference presentations 41 Jan Hagen Interdisciplinary Network for Group Research (INGRoup) Conference, INGRoup, Chicago, IL, USA Paul Heidhues Applied Micro Seminar, Bocconi University, Milan, Italy Ausschuss für Industrieökonomik, Verein für Socialpolitik, Munich, Germany CESifo Area Conference on Behavioural Economics, CESifo, Munich, Germany Departmental Seminar, University of Cyprus, Department of Economics, Nicosia, Cyprus Jahrestagung des Vereins für Socialpolitik 2012, Georg-August-Universität, Göttingen, Germany Joint IMFS & LEMF Conference, House of Finance, Goethe Universität, Frankfurt, Germany Münchener Wirtschaftswissenschaftliches Kolloquium Hans-Möller Seminar, Ludwig- Maximilians-Universität, Department of Economics, Munich, Germany Research Seminar Microeconomics, Universität Hamburg, Hamburg, Germany Research Seminar, Office of Fair Trading, London, UK Research Seminar, Telecom ParisTech, Paris, France Swiss IO Day 2012, Universität Bern, Bern, Switzerland Volkswirtschaftliches Seminar, Universität Bayreuth, Bayreuth, Germany Zurich Workshop on Economics, Universität Zürich, Lucerne, Switzerland Rajshri Jayaraman International Conference on Applied Microeconomics and Development Economics, Institute of Economic Research, Kyoto University, Kyoto, Japan Research Committee on Development Economics Conference 2012, AEL, Bonn, Germany Research Seminar, Universität Bayreuth, Bayreuth, Germany Research Seminar, Universität Heidelberg, Heidelberg, Germany Konstantin Korotov 14th Annual International Leadership Association Global Conference, ILA, Denver, CO, USA 4th International Coaching Research Forum, The Center for Leadership Development Research (ESMT)/Institute of Coaching, Hong Kong, China Academy of Management Annual Meeting, AoM, Boston, MA, USA Higher Education Research Conference, European Foundation for Management Development (EFMD), Zurich, Switzerland Seminar Series of the Psychoanalysis and Business Consulting Program, Psychology Faculty of the National Research University Higher School of Economics, Moscow, Russia Zhike Lei Academy of Management Annual Meeting, AoM, Boston, MA, USA ESMT/Humboldt Workshop on Organizational Behavior, ESMT/HU Berlin, Berlin, Germany Interdisciplinary Group Research (INGroup) Conference, INGroup, Chicago, IL, USA Research Seminar, Technische Universität Braunschweig, Braunschweig, Germany Research Seminar, Tsinghua University, China

42 R&D Annual Report 2012 Kristian Myrseth DFG Research Unit Psychoeconomics Meetings, Universität zu Köln, Cologne, Germany Marketing and Organisation Seminar, Aarhus University, Aarhus, Denmark Research Seminar, BI Norwegian Business School, Oslo, Norway Mario Rese 20th International Colloquium in Relationship Marketing, Nottingham Business School at Nottingham Trent University, Nottingham, UK 4th CIRP International Conference, The International Academy for Production Engineering, Tokyo, Japan American Marketing Association Winter Marketing Educators' Conference, AMA, St. Petersburg, FL, USA Jörg Rocholl 19th Annual Meeting, German Finance Association (DGF), Hannover, Germany 39th Annual Meeting, European Finance Association (EFA), Copenhagen, Denmark 47th Annual Conference, Western Finance Association (WFA), Las Vegas, NV, USA ASSA Annual Meeting, American Economic Association (AEA) and American Finance Association (AFA), Chicago, IL, USA Annual Conference on Liquidity, AFGAP and PRMIA, Paris, France Banking Crisis Conference, Universität Konstanz, Konstanz, Germany CESifo Area Conference on Macro, Money & International Finance, CESifo, Munich, Germany Dahlem Lectures on FACTS, Freie Universität Berlin, Berlin, Germany E.ON Ruhrgas Conference 2012, E.ON Ruhrgas scholarship program in Economics, NHH Norwegian School of Economics, Bergen, Norway Global Research Forum on International Macroeconomics and Finance, European Central Bank, Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York, Frankfurt, Germany Public Sector Conference, BNP Paribas, Berlin, Germany Research Seminar in Finance, WHU Otto Beisheim School of Management, Vallendar, Germany Research Seminar, Universität Mainz, Mainz, Germany Seminar Series of the Department of Banking and Financial Management, University of Piraeus, Piraeus, Greece Seminars of Department of Finance, Bocconi University, Milan, Italy Shaping the Fiscal Institutions of Europe Conference, German Ministry of Finance, Max Planck Institute, and WZB, Berlin, Germany The Economic Crisis in the European Union and its Effects on Turkey, Istanbul Kültür University, Istanbul, Turkey Workshop Trennbankensysteme, Deutsches Institut für Wirtschaftsforschung (DIW)/Bundesministerium für Wirtschaft und Technologie, Berlin, Germany Sascha Steffen 39th Annual Meeting, European Finance Association (EFA), Copenhagen, Denmark 4 Nations Cup, Duisenberg School of Finance, Amsterdam, The Netherlands 7th Annual Conference of the Financial Intermediation Research Society, FIRS, Minneapolis, MN, USA

Research seminars and conference presentations 43 Adam Smith Workshop for Asset Pricing and Corporate Finance, Saïd Business School, Oxford University, Oxford, UK American Economic Association Annual Meeting, AEA, Chicago, IL, USA International Banking, Economics, and Finance Association Annual Meeting, IBEFA/ASSA, Chicago, IL, USA McKinsey Innovation Platform, McKinsey, Frankfurt, Germany Research Seminar, Central Bank of Ireland, Dublin, Ireland Research Seminar, Deutsche Bundesbank, Frankfurt, Germany Research Seminar, Johannes Gutenberg-Universität Mainz, Mainz, Germany Research Seminar, University of Leeds, Leeds, UK Research Seminar, Universität Osnabrück, Osnabrück, Germany Stefan Wagner APIC 2012 - Asia Pacific Innovation Conference, Seoul National University, Seoul, South Korea Academy of Management Annual Meeting, AoM, Boston, MA, USA Conference on Patents, Entrepreneurship and Innovation, USPTO and the Marion Kauffman Foundation for Entrepreneurship, Alexandria, VA, USA Joint UNU-MERIT/School of Governance Seminars, UNU-MERIT and Maastricht Graduate School of Governance, Maastricht, The Netherlands Research Seminar Series, Yonsei University, School of Business, Seoul, South Korea Research Seminar, Institute for Empirical Research in Economics, Universität Leipzig, Leipzig, Germany Simon Wakeman 3rd Asia-Pacific Innovation Conference, Seoul National University, Seoul, South Korea Academy of Management Annual Meeting, AoM, Boston, MA, USA Darden Entrepreneurship and Innovation Research Conference, Darden School of Business, University of Virginia, Charlottesville, VA, USA Intellectual Property Policy and Innovation Workshop, 34th Annual NBER Summer Institute, Cambridge, MA, USA Intellectual Property Research Institute of Australia Seminar Series, IPRIA, Brisbane, Melbourne, Sydney, Australia Intellectual Property Research Institute of Australia lunchtime workshop, IPRIA, Melbourne, Australia Research Seminar, Department of Management and Technology, Bocconi University, Milan, Italy Jens Weinmann 12th IAEE European Energy Conference, Ca' Foscari University, Venice, Italy

44 R&D Annual Report 2012 11. Research assistants During 2012 ESMT employed the following research assistants: Andreea Firca Research Assistant for Linus Dahlander Anna Hofmann Research Assistant for CB Bhattacharya Jie Huang Research Assistant for Guillermo Baquero Jing Huang Faculty Research Assistant Taylor Johnson Faculty Research Assistant Gordon Johnston Lab Manager Laurenz Klipper Research Assistant for Sascha Steffen Lulu Rahim Faculty Research Assistant Max Richter Faculty Research Assistant Claudia Scheurig Research Assistant for Kristian Myrseth Amelie Schiprowski Research Assistant for Rajshri Jayaraman Stefanie Schulz Research Assistant for CB Bhattacharya Vid Štimac Research Assistant for Michał Grajek Joanna Wylegala Research Assistant for Francine Espinoza Petersen Jin Xuanhan Research Assistant for Guillermo Baquero

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