R&D ANNUAL REPORT 

2017

FACULTY AND RESEARCH

ESMT Berlin published 19 peer-reviewed articles in the most influential academic journals including Academy of Management Journal, American Economic Review, Management Science, and Organization Science. ESMT authors received 2 publication-related awards.

The Hidden Champions Institute (HCI) was founded by ESMT to fill gaps in the management of hidden champions and especially family-owned businesses via excellent teaching, interdisciplinary research, and an international network.

ESMT was re-accredited by AACSB and commended for having a well-developed academic culture focused on excellent faculty and research.  2

Contents

Preface ...... 1

Faculty and their research interests ...... 2 New hires and promotions ...... 2 Full-time academic faculty ...... 3 Full-time managerial faculty ...... 4 Affiliate and emeriti professors ...... 4

Publications ...... 5 Peer-reviewed articles ...... 5 Non peer-reviewed articles ...... 7 Working papers ...... 7 Books ...... 7 Book chapters ...... 8 ESMT Case Studies Series ...... 8 ESMT White Paper Series ...... 8 DSI Industrial & Policy Recommendations (IPR) Series ...... 8 Other publications ...... 9

Editorial activities ...... 10

Chairs ...... 11

Grants ...... 12

External presentations at research conferences and seminars ...... 17

Centers and institutes ...... 20 Center for Financial Reporting and Auditing (CFRA) ...... 20 Center for Leadership Development Research (CLDR) ...... 21 Center for Sustainable Business (CSB) ...... 22 Digital Society Institute (DSI) ...... 24 Hidden Champions Institute (HCI) ...... 26

Events ...... 28 Research seminars and academic presentations ...... 28 Conferences, workshops, and roundtables ...... 29 ESMT Open Lectures ...... 30 Centers and institute events ...... 31

PhD program ...... 39

Research lab and assistants ...... 41

Research visitors ...... 42 1 

Preface

In accordance with the mission of the the first holder of the POK Pühringer PS school, the role of research at ESMT Chair in Entrepreneurship. As well, Özlem Berlin is to develop and disseminate new Bedre-Defolie and Johannes Habel were knowledge, to foster sustainable economic promoted to the faculty rank of associate growth, and to help business leaders professor and Gianluca Carnabuci was succeed globally and act responsibly. awarded tenure. Research at ESMT aims at having a In 2017, the centers and institutes significant impact at the highest academic proceeded to develop by adding: 3 new level. In 2017, ESMT published 19 peer- co-directors, 2 researchers, and 2 staff Tamer Boyaci reviewed journal articles of which 7 were members and altogether the three centers Professor of Management Science, published in the most influential A/A+ and one institute held a total of 29 events. Michael Diekmann Chair in Management journals such as Academy of Management For an overview of these events, please see Science, and Director of Research Journal, American Economic Review, page 28. Management Science, and Organization This report further details the ESMT Science. The mission of the school is also research output and achievements in 2017. reflected in the numerous organized I hope you enjoy reading it! research events, which help to stimulate intellectual exchange: 6 conferences and 28 research seminars, where scholars from some of the most prestigious schools presented their research, and 10 open lectures with opinion leaders from both academia and industry. Further events were organized by the centers and an institute. 2017 saw ESMT hire a new professor in addition to three internal faculty promotions, strengthening its faculty members to 38 from 19 different countries. Henry Sauermann, formerly an associate professor of strategy and innovation at the Scheller College of Business at the Georgia Institute of Technology, joined ESMT as an associate professor of strategy. He is also  2

38 faculty members (as of 12/31/17)

19 nations

5 females

Faculty and their research interests

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. The following list reflects the titles and positions as of December 31, 2017.

New hires and promotions

Özlem Bedre-Defolie Associate Professor of Economics In 2017, Özlem was awarded tenure and promoted to the faculty rank of associate professor of economics. Özlem joined ESMT in January 2010 as an assistant professor. Her research interests are mainly theoretical and applied microeconomics, and industrial organization.

Gianluca Carnabuci Associate Professor of Organizational Behavior Gianluca was awarded tenure in 2017. He joined ESMT in 2016 as an associate professor of organizational behavior. Previously, he was an associate professor of organization and management at the University of Lugano and an assistant professor at Bocconi University.

Johannes Habel Associate Professor, Program Director, and Co-director of the Hidden Champions Institute (HCI) Johannes was promoted to the faculty rank of associate professor in 2017. He joined ESMT in 2014 developing and teaching in executive education. In his research and teaching, he focuses on sales and marketing strategies of so-called hidden champions, that is, highly successful SMEs with a low level of public awareness.

Henry Sauermann Associate Professor of Strategy and POK Pühringer PS Chair in Entrepreneurship Henry is an associate professor of strategy (with tenure), who joined ESMT in May 2017. He is the first holder of the POK Pühringer PS Chair in Entrepreneurship. Previously, he was an associate professor of strategy and innovation and the PhD coordinator at the Scheller College of Business at the Georgia Institute of Technology. 3 

Full-time academic faculty

Zoltán Antal-Mokos (Hungary) Francis de Véricourt (France) Per Olsson (Sweden) Professor of Strategy and Dean of Degree Professor of Management Science Professor of Accounting and Academic Programs Managerial decision making, operations Director of the Center for Financial Corporate strategy, strategic rationale research, sustainability, and health care Reporting and Auditing (CFRA) for mergers and acquisitions, post- Financial reporting, capital markets merger integration, and privatization research, valuation research, corporate Hans W. Friederiszick (Germany) governance, and international accounting Research Fellow, ESMT Berlin, and differences Özlem Bedre-Defolie (Turkey) Managing Director, E.CA Economics Associate Professor of Economics Applied microeconomics and industrial Francine Petersen (Brazil/Poland) Applied microeconomics, industrial organization (competition economics) organization, and competition economics Associate Professor of Marketing Consumer affect (emotions, mood, Michał Grajek (Poland) subjective experiences), consumer CB Bhattacharya (India/USA), on leave Associate Professor of Economics psychology and behavior, and luxury Professor of Marketing and Founding Applied econometrics, industrial marketing Director of the Center for Sustainable organization, international economics, Business (CSB) law and economics, economics of Jörg Rocholl (Germany) Business strategy innovation, CSR, networks, competition policy, and ICT sustainability, stakeholder engagement, President, Professor of Finance, and EY marketing strategy, and corporate Chair in Governance and Compliance identity and reputation Laura Guillén (Spain) Corporate finance, corporate governance, Assistant Professor of Organizational financial intermediation, central banks, Behavior financial regulation Matthew S. Bothner (USA) Leadership and leader identity, Professor of Strategy, Deutsche Telekom motivation to lead, gender, diversity, Henry Sauermann (Germany) Chair in Leadership and HR Development authenticity, dark side of leadership, Measurement and consequences of social social perceptions at work, and coaching Associate Professor of Strategy and POK status in venture capital, professional practices Pühringer PS Chair in Entrepreneurship sports, and higher education Science and innovation, entrepreneurial strategy, human capital Rajshri Jayaraman (Canada/India) Tamer Boyaci (Canada/Turkey) Associate Professor of Economics, Faculty Professor of Management Science, Lead of the Full-time MBA Program Martin Schweinsberg (Germany) Michael Diekmann Chair in Management Development economics, labor economics Assistant Professor of Organizational Science, and Director of Research Behavior Supply chain management, sustainable Negotiation, organizational behavior operations, remanufacturing, retail Konstantin Korotov (Germany) operations, marketing operations Associate Professor of Organizational inter-face, pricing, and assortment Behavior and Director of the Center for Catalina Stefanescu-Cuntze (Romania/ optimization Leadership Development Research (CLDR) UK) Psychological burdens of modern Professor of Management Science, Deutsche Post DHL Chair, and Dean of Gianluca Carnabuci (Italy) leadership, leadership development, career dynamics, and executive coaching Faculty Associate Professor of Organizational Credit and financial risk, managerial Behavior decision making, revenue management, Leadership, networks, organizational Xu Li (China) forecasting, statistics, and operations behavior, organizational design, strategy, Assistant Professor of Strategy research social capital Business strategy, organizational theory, and innovation Stefan Wagner (Germany) Linus Dahlander (Sweden) Associate Professor of Strategy and Associate Professor of Strategy Rainer Nitsche (Germany) Director of PhD Studies Network dynamics, communities, and Research Fellow, ESMT Berlin, and Economics of technology and innovation, open and distributed innovation Managing Director, E.CA Economics intellectual property rights (patent Industrial organization, competition protection), and innovation management economics, digital strategy, M&A  4

Full-time managerial faculty

Guillermo Baquero (Ecuador) Jan U. Hagen (Germany) Joe Peppard (Ireland) Associate Professor and Faculty Lead of Associate Professor Professor and Head of Information and the Master’s in Management Program Error management, crisis management, Communications Technologies Hedge and mutual funds, the behavior of impact of leadership styles, and Digital strategy, digital transformation, hedge fund investors, behavioral finance, communication patterns on performance change management, IT leadership, and experimental economics of flight crews innovation, IT strategy and management strategy, management education, and information systems Christoph Burger (Germany) Ulrich Linnhoff (Germany) Senior Lecturer and Senior Associate Lecturer and Head of USW Netzwerk Dean of Executive Education Programs Olaf Plötner (Germany) Energy sector, innovation, blockchain, Accounting, performance measurement, Professor and Dean of Executive and decision making/negotiation controlling, private equity, and business Education simulations Strategic management, B2B marketing, and international sales management in Johannes Habel (Germany) technology-based B2B markets Associate Professor, Co-director of the Urs Müller (Germany/Switzerland) Hidden Champions Institute (HCI), and Lecturer and Head of the Practice Group Program Director Consumer Goods and Retail Brand strategy, consumer behavior, Business ethics, case study method, customer relationship management, change management, consumer goods, incentives, marketing, negotiation, corporate responsibility, corruption, sales force management (in industrial intercultural management, pricing policy, markets), strategic marketing, retail sector, stakeholder management, technology-based industries sustainability

Affiliate and emeriti professors

Derek F. Abell (UK) Paul Heidhues (Germany/USA) Wulff Plinke (Germany) Professor Emeritus and Founding Distinguished Affiliate Professor Professor Emeritus and Founding Dean President Behavioral industrial organization, Business strategy in industrial markets, Strategic marketing, general competition policy, consumer protection, market-oriented management, management, and leadership in behavioral economics, and applied game relationship marketing, pricing in technology-based industries theory industrial markets, and market-based accounting Stanley Baiman (USA) Manfred F. R. Kets de Vries (The Distinguished Affiliate Professor Netherlands) David T. Robinson (USA) Accounting, auditing, capital budgeting, Distinguished Affiliate Professor Distinguished Affiliate Professor incentive contracts, managerial Leadership and the dynamics of Corporate responsibility, entre­preneur­ accounting, and organizational design individual and organizational change ship, finance, innovation (incl. strategic innovation, technology-enabled innovation), private equity, venture Francis Bidault (France) Kai Konrad (Germany) capital Professor Emeritus Distinguished Affiliate Professor Technology strategy, new product European finance constitution, European development, and technology sovereign debt crisis, German finance partnerships constitution, and international taxation 5 

19 published peer reviewed articles

7 A/A+ articles

16 forthcoming peer reviewed articles

10 A/A+ articles

6 non-peer reviewed articles

7 working papers

2 books

10 book chapters

2 cases

1 white paper Publications 7 DSI IPR series 21 other publications

As a research-led international business school, ESMT publishes in international academic journals, which are first-class in their respective fields. Research also provides 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.

Peer-reviewed articles

Forthcoming Francine Petersen, Heather Dretsch, Gianluca Carnabuci, Cécile Emery, David Yuliya Komarova Brinberg Who needs a reason to indulge? Emergent leadership structures in Michael Schaerer, Martin Schweinsberg, Happiness following reason-based informal groups: A dynamic, cognitively Roderick Swaab indulgent consumption informed network model Imaginary alternatives: The effects International Journal of Research in Organization Science of mental simulation on powerless Marketing negotiators Laura Guillén, Margarita Mayo, Natalia Journal of Personality and Social Andreas Dombret, Yalin Gündüz, Jörg Karelaia Psychology Rocholl Appearing self-confident and getting Will German banks earn their cost of credit for it: Why it may be easier for men Henry Sauermann capital? than women to gain influence at work Fire in the belly? Employee motives and Contemporary Economic Policy Human Resource Management innovative performance in startups versus established firms Tian Chan, Francis de Véricourt, Omar André Casajus, Frank Hüttner Strategic Entrepreneurship Journal Besbes Decomposition of solutions and the Contracting in medical equipment Shapley value Henning Piezunka, Wonjae Lee, Richard maintenance services: An empirical Games and Economic Behavior Haynes, Matthew S. Bothner investigation The Matthew Effect as an unjust Management Science competitive advantage: Implications for Guillermo Baquero, Malika Hamadi, competition near status boundaries Andréas Heinen Francis de Véricourt, Denis Gromb Journal of Management Inquiry Competition, loan rates and information Financing capacity investment under dispersion in microcredit markets demand uncertainty: An optimal Journal of Money, Credit and Banking Sascha Alavi, Johannes Habel, Paolo contracting approach Guenzi, Jan Wieseke Manufacturing and Service Operations The role of leadership in salespeople’s Management Tamer Boyaci, Yalçın Akçay price negotiation behavior Pricing when customers have limited Journal of the Academy of Marketing attention Science Management Science  6

Jörg Rocholl, Alexander Popov Michael Roach, Henry Sauermann Alexei Alexandrov, Özlem Bedre-Defolie Do credit shocks affect labor demand? The declining interest in an academic LeChatelier-Samuelson principle in games Evidence for employment and wages career and pass-through of shocks during the financial crisis PLoS ONE 12(9) Journal of Economic Theory 168(March): Journal of Financial Intermediation 44–54 Urs Müller, Johannes Habel, Marcel Stierl Francis Bidault, José de la Torre, Stelios Exerting pressure or leveraging power? Thomas Hildebrand, Manju Puri, Jörg Zanakis, Peter Smith Ring The extended chain of CSR enforcement Rocholl Willingness to rely on trust in global in B2B supply chains Adverse incentives in crowdfunding business collaborations: Context vs. Journal of Public Policy and Marketing Management Science 63(3): 587–608 demography 36(2): 331–347 Journal of World Business Marcel Bogers, Ann-Kristin Zobel, Jeremy Yip, Martin Schweinsberg Allan Afuah, Esteve Almirall, Sabine Joe Peppard Infuriating impasses: Angry expressions Brunswicker, Linus Dahlander, Lars Rethinking the concept of the IS increase exiting behavior in negotiations Frederiksen et. al. organization Social Psychological and Personality The open innovation research landscape: Information Systems Journal Science 8(6): 706–714 Established perspectives and emerging themes across different levels of analysis Industry and Innovation 24(1): 8–40 Published Özlem Bedre-Defolie, Gary Biglaiser Contracts as a barrier to entry in markets with non-pivotal buyers CB Bhattacharya, Paul Polman Johannes Habel, Sascha Alavi, Doreén American Economic Review 107(7): Sustainability lessons from the front lines Pick 2041–2071 Sloan Management Review 58(2): 71–78 When serving customers includes correcting them: Understanding the Manju Puri, Jörg Rocholl, Sascha Steffen Pawel Swierczynski, Georg T. Becker, ambivalent effects of enforcing service Amir Moradi, Christof Paar rules What do a million observations have to say about loan defaults? Opening the Bitstream Fault Injections (BiFI) – International Journal of Research in black box of relationships Automated fault attacks against SRAM- Marketing 34(4): 919–941 Journal of Financial Intermediation based FPGAs 31(July): 1–15 IEEE Transactions on Computers PP(99): Henry Sauermann, Carolin Haeussler 1–13 Authorship and contribution disclosures John-Paul Ferguson, Gianluca Carnabuci Science Advances 3(11) Risky recombinations: Institutional Eric Quintane, Gianluca Carnabuci gatekeeping in the innovation process How do brokers broker? Tertius gaudens, Shuili Du, Kun Yu, CB Bhattacharya, Organization Science 28(1): 133–151 tertius iungens, and the temporality of Sankar Sen structural holes Organization Science 27(6): 1343–1360 The business case for sustainability Paola Criscuolo, Linus Dahlander, reporting: Evidence from stock market Thorsten Grohsjean, Ammon Salter reactions Evaluating novelty: The role of panels in Journal of Public Policy and Marketing the selection of R&D projects 36(2): 313–330 Academy of Management Journal 60(2): 433–460 Georg T. Becker Robust fuzzy extractors and helper data 2016 Jürgen Hauschildt Award, manipulation attacks revisited: Theory vs Wissenschaftliche Kommission practice für Technologie, Innovation und Entrepreneurship im VHB IEEE Transactions on Dependable and Secure Computing PP(99): 1–14 Best-Paper-Award “Innovation Management” 2016, EBS Universität für Wirtschaft und Recht Xiaofeng Nie, Tamer Boyaci, Saibal Ray, Mehmet Gumus, Dan Zhang Kurt DeSoto, Martin Schweinsberg Joint procurement and demand-side Replication data collection highlights bidding strategies under price volatility value in diversity of replication attempts Annals of Operations Research 257(1–2): Scientific Data 4(170028) 121–165 7 

Non peer-reviewed articles

English Joe Peppard, John Thorp Martin Schallbruch What every business leader should know IT-Sicherheitsrecht – Schutz kritischer and do about digital Infrastrukturen und staatlicher IT- Joanna Radeke Cutter Business Technology Journal 30(1): Systeme Sustainability managers could lead the 6–13 Computer und Recht 33(10): 648–656 fourth industrial revolution Stanford Social Innovation Review Non-English Jan U. Hagen Fehlermanagement – warum Johannes Habel, Olaf Plötner Schuldzuweisungen nicht helfen From products to solutions: Mastering Martin Schallbruch UnternehmerBrief Bauwirtschaft 40(5): sales force incentives IT-Sicherheitsrecht – Schutz 3–8 European Business Review 2017 digitaler Dienste, Datenschutz und (September–October): 33–35 Datensicherheit Computer und Recht 33(12): 798–804

Working papers

ESMT series Michał Grajek, Klaus Gugler, Tobias Andreas Dombret, Yalin Gündüz, Jörg Kretschmer, Ion Mişcişin Rocholl Static or dynamic efficiency: Horizontal Will German banks earn their cost of Arcan Nalca, Tamer Boyaci, Saibal Ray merger effects in the wireless capital? Brand positioning and consumer taste telecommunications industry Deutsche Bundesbank Research Centre information ESMT No. 17-04 Discussion Paper 01/2017 ESMT No. 17-01 (R1) Non-ESMT series Henning Piezunka, Wonjae Lee, Richard Wolfgang Briglauer, Carlo Cambini, Haynes, Matthew Bothner Michał Grajek The Matthew effect as an unjust Speeding up the Internet: Regulation Alexei Alexandrov, Özlem Bedre-Defolie, competitive advantage: Implications for and investment in European fiber optic Daniel Grodzicki competition near status boundaries INSEAD No. 2017/68/EFE infrastructure Consumer demand for credit card services ESMT No. 17-02 CEPR Discussion Paper DP12506

Francis de Véricourt, Jeffrey Hales, Gilles Hilary, Jordan Samet Can capital constraints restrain creativity? The spillover effect of budget constraints on employee creativity ESMT No. 17-03

Books

Forthcoming Published Non-English

Jan U. Hagen (ed.) Maurizio Martellini, Stanislav Abaimov, Jan U. Hagen How could this happen? Managing errors Sandro Gaycken, Clay Wilson Fatale Fehler: Oder warum in organizations Information security of highly critical Organisationen ein Fehlermanagement Basingstoke: Palgrave Macmillan wireless networks brauchen, 2nd ed*. Cham: Springer International Publishing Heidelberg: Springer Gabler

* Denotes not included in summary count on page 5  8

Book chapters

Forthcoming Joe Peppard Elizabeth Florent-Treacy, Konstantin Digital capability: Scaffolding for rewiring Korotov, Caroline Rook a company for digital Manfred F. R. Kets de Vries: Playing the Jan U. Hagen In The Routledge companion to morosophe CRM revisited management information systems, In The Palgrave handbook of In How could this happen? Managing Robert D. Galliers, Mari-Klara Stein. organizational change thinkers, David errors in organizations, ed. J. U. Hagen. Oxfordshire: Taylor&Francis. B. Szabla, William A. Pasmore, Mary Basingstoke: Palgrave Macmillan A. Barnes, Asha N. Gipson, 679–699. Basingstoke: Palgrave Macmillan. Caner Canyakmaz, Fikri Karaesmen, Paul Cornish, Sandro Gaycken Süleyman Özekici Minimum variance hedging for managing Georg T. Becker, Marc Fyrbiak, Christian Cyberweapons Kison In Oxford Handbook on Cybersecurity, price risks Paul Cornish. Oxford University Press. In 11th Conference on Stochastic Models Hardware obfuscation: Techniques and of Manufacturing and Service Operations, open challenges 155–160. Institute of Industrial In Foundations of hardware IP protection, Martin Schallbruch Technologies and Automation (ITIA) of Lilian Bossuet, Lionel Torres, 105–123. The European network and information the National Research Council of Italy. New York, NY: Springer International security directive: A cornerstone of the Publishing. digital single market Sezen Aksin-Sivrikaya, CB Bhattacharya In Digital marketplaces unleashed, Claudia Linnhoff-Popien, Ralf Schneider, Where digitalization meets Michael Zaddach, 287–295. Heidelberg: sustainability: Opportunities and Springer-Verlag. challenges In Sustainability in a digital world, Thomas Osburg, Christa Lohrmann, 37–49. Cham: Springer International Published Publishing.

Caner Canyakmaz, Süleyman Özekici, Konstantin Korotov Fikri Karaesmen A quick guide to your leadership self- Minimum-variance hedging for managing development risks in inventory models with price In Advanced leadership insights: How fluctuations to lead people and organizations to In Integrated Risk Management in ultimate success, Wolfgang Amann, Supply Chains, 107-123. Foundations and Katja Kruckeberg, 3–10. Charlotte, NC: Trends in Technology, Information and Information Age Publishers. Operations Management.

ESMT Case Studies Series ESMT White Paper Series

Jan U. Hagen, L. Marquet Francis de Véricourt Dietrich Matthes, Jörg Rocholl Turn the ship around! (A-B) Ebola: The onset of a deadly outbreak Breaking the doom loop: The eurozone ESMT-317-0175-1 ESMT-317-0177-1 basket ESMT No. WP-17-01 ESMT-317-0176-1

DSI Industrial & Policy Recommendations (IPR) Series

Sandro Gaycken Martin Schallbruch Martin Schallbruch Vulnerabilities in IT-security products Requirements for data protection and Crypto-debate: Strategies for responsible ESMT No. 2017(1) IT security law regarding technology behavior of law enforcement and development intelligence agencies on matters of ESMT No. 2017(2) cryptography, vulnerabilities and tools ESMT No. 2017(3) 9 

Sandro Gaycken, Martin Schallbruch, Isabel Skierka Georg T. Becker Recommendations for safety and IT Recommendations for safety, security security in medical systems and data policy in automotive IT ESMT No. 2017(6) ESMT No. 2017(4) Sandro Gaycken Martin Schallbruch Recommendations for the development Security record of open source and free of vulnerability equities processes software ESMT No. 2017(7) ESMT No. 2017(5)

Other publications

Theon van Dijk, Hans Friederiszick, Ela Alexander Wild, Georg T. Becker, Tim Martin Schallbruch Głowicka Güneysu The EU now regulates Internet services. Price comparison websites and selective A fair and comprehensive large-scale But what does that mean, exactly? distribution systems: An effects-based analysis of oscillation-based PUFs for The European Business Review approach FPGAs Complaw-blog IEEE International Conference on Field Programmable Logic and Applications - Jan U. Hagen FPL 2017 How to hide bad news Christoph Burger, Jens Weinmann Forbes India Blockchain and smart contracts: Pioneers of the energy frontier Martin Schallbruch International Business Times IT-Sicherheit: Bundestag verabschiedet Linus Dahlander, Henning Piezunka NIS-Umsetzungsgesetz Why some crowdsourcing efforts work CRonline and others don’t Christoph Burger, Jens Weinmann Harvard Business Review The 3 stages of a country embracing renewable energy Sandro Gaycken, Georg T. Becker Harvard Business Review The security of components – An Sandro Gaycken, Clay Wilson, Maurizio evaluation of physical and logical attacks Martellini NXP Recurring questions pertaining to the Omar Rodriguez Vila, Ricardo Caceres, possible military dimensions of cyber Sundar Bharadwaj, CB Bhattacharya warfare The practice of purpose Martin Schallbruch Proceedings of the Tenth International Practice of Purpose Report Die Sicherheit Deutschlands wird auch im Forum ICANN/Lomonossow Internet verteidigt Internationale Politik und Gesellschaft Jan U. Hagen 2017(4) Francoise Collet, Gianluca Carnabuci Vertuschen oder veröffentlichen? Ideological boundaries of advantageous Harvard Business Manager 9(98) network positions in the United States Francine Petersen Congress 7 ‘must do’s’ for successful luxury goods Academy of Management Proceedings Linus Dahlander, Siobhan O’Mahony marketing A study shows how to find new ideas Forbes India inside and outside the company Kourosh Shafi, Henry Sauermann Harvard Business Review Investor decision making in equity Paola Criscuolo, Linus Dahlander, crowdfunding Thorsten Grohsjean, Ammon Salter Academy of Management Proceedings Sandro Gaycken The biases that keep good R&D projects On cyber attacks and the accidental war from getting funded Forbes India Harvard Business Review Julian Runge, Stefan Wagner, Daniel Klapper, Jörg Claussen Freemium pricing: Evidence from a large- Stefan Wagner, Martin Goossen scale field experiment Inventor mobility and the formation of Academy of Management Proceedings technology oriented alliances Academy of Management Proceedings  10

Editorial activities

CB Bhattacharya Michał Grajek Joe Peppard Editorial Review Board Member: Associate Editor: Information Economics Associate Editor: International Journal on Corporate Reputation Review, Business and Policy IT/Business Alignment and Governance Ethics Quarterly, Business and Society, Editorial Board Member: European International Journal of Research in Laura Guillén Management Journal, Journal of Strategic Marketing, Journal of Public Policy and Editorial Board Member: Academy of Information Systems, MIS Quarterly Marketing, Journal of the Academy of Executive Marketing Science Management Learning and Education Henry Sauermann Francis Bidault Johannes Habel Advisory Editor: Research Policy Editorial Board Member: Hi-tech Editorial Review Board Member: Journal Marketing Review, Business Management of the Academy of Marketing Science Associate Editor: Strategic Review, Société Française de Entrepreneurship Journal Management Konstantin Korotov Editor at Large: Citizen Science Today Book Editor: Marketing & Management Editorial Board Member: Research Policy, Matthew S. Bothner Collection, Henry Stewart Talks Online Strategic Management Journal Editorial Board Member: Administrative Collections Science Quarterly Editorial Board Member: Journal of Martin Schallbruch Leadership and Organizational Studies, Book Editor: Kommentar Tamer Boyaci Revista de Gestao (REGE) „Verwaltungsverfahrensgesetz und E-Government“ Associate Editor: Decision Sciences Editorial Review Board Member: Management and Organization Review Senior Editor: Production and Operations Management Martin Schweinsberg Urs Müller Topical Editor: Wiley Encyclopedia of Editorial Board Member: Nature: Scientific Operations Research and Management Editorial Board Member: Case Folio, The Data Science (EORMS) (Energy and IUP Journal of Management Case Studies Environment) Catalina Stefanescu-Cuntze Per Olsson Editorial Board Member: Journal of Francis de Véricourt Associate Editor: Accounting and Revenue and Pricing Management Associate Editor: Manufacturing & Service Business Research Operations Management, Operations Editorial Board Member: Accounting in Michael Wolgast Research Europe, European Accounting Review, Editorial Board Member: The Geneva Journal of Business Finance and Papers on Risk and Insurance – Issues Sandro Gaycken Accounting, The Accounting Review, The and Practice (The Geneva Association) Review of Accounting Studies Editor-in-Chief: SpringerBriefs on Cybersecurity 11 

Chairs

New chair While shaping ESMT into a world-class research institution, we have focused intensely on attracting top international academic talent. One way in which we have been able to do POK Pühringer PS Chair in this has been through the creation of prestigious chairs. Since 2008, we have established Entrepreneurship a number of chairs in collaboration with individuals, organizations, and corporations, Henry Sauermann, Associate Professor of as noted below. The establishment of these chairs is a resounding endorsement of the Strategy May 2017–present quality of the faculty we have brought to ESMT, and at the same time it reflects the high level of esteem in which their research is held.

Continuing and ending chairs

Karl-Heinz Kipp Chair in Research Rajshri Jayaraman, Associate Professor of Economics, Faculty Lead of the Full-time Deutsche Post DHL Chair MBA Program Catalina Stefanescu-Cuntze, Professor January 2016–August 2017 of Management Science, and Dean of Faculty July 2013–present

Lufthansa Chair in Competitions and Regulation N.N. Deutsche Telekom Chair in Leadership and HR Development Michael Diekmann Chair in Management Matthew S. Bothner, Professor of Science Strategy July 2011–present Tamer Boyaci, Professor of Management Science, and Director of Research June 2016–present

EY Chair in Governance and Compliance Pietro Ferrero Chair in Sustainability Jörg Rocholl, President, Professor of CB Bhattacharya, Professor of Marketing Finance and Founding Director of the Center for July 2013–present Sustainable Business (CSB) November 2014–October 2017  12

Grants

Research at ESMT continues to attract grants from various funding sources. New research and event grants as well as continuing grants are listed below. To read more about other third-party funded areas at ESMT, see page 11 for funded chairs.

New research grants

Deutsche Forschungsgemeinschaft (DFG)

Collaborative Research Center/Transregio Project leaders: Rajshri Jayaraman, Florian Englmaier (LMU) Project title: Rationality and competition: The economic performance of individuals and firms €273,280

The Collaborative Research Center/Transregio “Rationality and Competition” combines the research programs of behavioral and neoclassical economists to study applied economic questions that are of high policy relevance. The focus CRC TRR 190 is on the economic behavior and performance of individuals and firms. Thus, the CRC “Rationality and Competition” will analyze the allocative consequences and the economic policy implications of different aspects of rationality and deviations from rationality in competitive environments. The project by Englmaier and Jayaraman focuses on the human resource management practices in firms. It will examine the effects of diverse human resource management (HRM) practices - such as incentive pay, screening for traits, or team based work organization - on worker productivity, and thereby firm competitiveness, while accounting for the possibility that workers are motivated not only by financial considerations but also by social preferences. The cooperating institutions of this CRC along with ESMT are Ludwig Maximilian University of Munich (project lead), Humboldt University of Berlin, German Institute for Economic Research (DIW), ifo Institute – Leibniz Institute for Economic Research at the University of Munich, Max Planck Institute for Innovation and Competition, Technical University, Berlin, and the Berlin Social Science Center (WZB). 13 

Research Grant Project leader: Francis de Véricourt Project title: Audit schedules in the presence of concealing effort in supply chains €173,700

This project aims at advancing the theory of operations management on how to uncover issues in supply chains, when suppliers have the capability to evade detection, that is, the ability to exert effort so as to reduce the efficacy of potential audits. Despite the prevalence and practical importance of these evasion capabilities, very few theoretical results exist in the operations and supply chain management literature on this issue. The researchers intend to fill this gap by developing and analyzing a comprehensive theoretical framework, based on stochastic optimization control problems, that captures the essential features of a supplier’s evasion capability, as well as the dynamic nature of audit schedules. The results of this study should provide insights into designing efficient remediation and audit strategies for supply chains that have the ability to evade detection. These strategies will be described mathematically in closed form, which should facilitate their implementation. This project should also reveal how the nature of an evasion capability (such as its cost or efficacy) affects the structure of efficient audit schedules.

German Academic Exchange Service (DAAD)

Project leaders: Nick Barniville, Wulff Plinke Project title: AIMS–ESMT Industry Immersion Program €393,968

ESMT and the African Institute of Mathematical Sciences (AIMS) have launched the Industry Immersion Program (IIP) to prepare African graduates for transition from an academic environment to an applied industry setting. The six-month IIP includes two academic modules to build business readiness skills as well as a 12-week internship with industry partners across Africa. Professors from ESMT faculty are teaching pro bono, covering areas such as organizational behavior, corporate strategy, finance, and accounting. The pilot program has received funding support until 2020 from the German Academic Exchange Service (DAAD) with funds from the German Federal Ministry for Economic Cooperation and Development (BMZ). The program started with 30 master’s graduates. The launch of the IIP coincided with the “G20 Africa Partnership – Investing in a Common Future” hosted by the German Federal Ministry of Finance, the German Federal Ministry for Economic Cooperation and Development, and the Deutsche Bundesbank. The initiators of the IIP, ESMT Founding Dean Wulff Plinke and Associate Dean Nick Barniville, presented the program during the G20 Africa Partnership conference.

Peter Curtius-Stiftung

Project leaders: Catalina Stefanescu-Cuntze, Francis de Véricourt, Stefan Wagner Project title: Data-driven business models in Internet 4.0 €15,000

Digitalization has a tremendous impact on the conduct of business, as it has the power to transform virtually every step in the value chain of almost every industry. Perhaps  14

one of the most striking effects of Internet 4.0 is the emergence of new data-driven business models that are innovatively disrupting existing markets. In this project, the researchers use extensive modelling and artificial intelligence tools to understand the drivers of this new industrial revolution. The researchers explore large consumer data sets from different industries in order to build predictive tools of user behavior under innovative digital business models. The project will generate breakthrough insights on optimal pricing marketing, and service design strategies for firms competing with data-driven business models, and on decision making and operational processes that organizations should put in place to dynamically retain their strategic advantage in the age of Internet 4.0.

Event grants

Auswärtiges Amt

DSI: Interdisciplinary conference Project leaders: Sandro Gaycken, Martin Schallbruch Project title: Reliability reloaded Auswärtiges Amt €12,000

This grant were used to fund a two-day interdisciplinary conference on how to reintroduce technical, legal, political, and military reliability in an age of digital insecurities and uncertainties. For a description of the conference, see the DSI’s events on page 38.

Deutsche Forschungsgemeinschaft (DFG)

International scientific conference Project leader: Guillermo Baquero Project title: Asset Management Conference: “Recent advances in mutual fund and hedge fund research” €11,000

Following the successes of the previous three conferences, ESMT and the School of Business and Economics of Humboldt University of Berlin co-hosted the Fourth Conference on Recent Advances in Mutual Fund and Hedge Fund Research held in Berlin on August 21–22, 2017. The scientific goal of the conference was to bring together leading academics interested in asset management in an environment, which facilitates networking and in-depth discussions of the latest research on mutual funds and hedge funds, on a wide range of empirical, theoretical and policy issues. 15 

CFRA: International scientific conference Project leader: Per Olsson Project title: Annual Accounting Conference 2018: “Accounting Research: Diversity within Unity” €30,500

The Annual Accounting Conference 2018 will be hosted at ESMT and is jointly organized by ESMT, the Accounting Section of the German Academic Association for Business Research (AS-VHB), and the International Association for Accounting Education and Research (IAAER). This is the third issue of the Annual Accounting Conference in this format. The conference aims to promote scientific international exchange in the field of accounting with a special focus on the newest developments in accounting research and policy making, and to discuss the future role of accounting and accounting research in an economy that is increasingly characterized by shifting business models and globalization. The scientific goal of the conference is to promote excellence in accounting research on a worldwide basis, with specific emphasis on bringing together leading experts from around the world with researchers that are based in Germany and from other European countries. Researchers from various academic institutions will present and discuss their research in formal sessions with discussants and audience participation.

Stiftung Geld und Währung

Project leaders: Jörg Rocholl, Kai Konrad Project title: The cost of a break-up of the European Monetary Union €20,000

The last couple of years have seen the economic tensions of the eurozone ease, in particular because of measures such as quantitative easing and ECB President Draghi’s announcement back in the summer of 2012 to do “whatever it takes” to hold the monetary union together. However, many experts would agree that the structural issues that caused the crisis in the eurozone have not been comprehensively addressed. The crisis may thus come back, and Europe may then suddenly be confronted with the disintegration of the euro system. Economic developments and shocks as well as political events and electoral outcomes may trigger such a situation with some positive probability. Thus, it is important to better understand the possible options and assess the consequences of such a worst-case scenario. In conjunction with a discussion forum directed at the public, this conference aims to facilitate a thorough analysis of the problem as well as an examination of possible answers to such a worst-case scenario.  16

Continuing and ending grants

Innovation Growth Lab/NESTA Peter Curtius-Stiftung Deutsche Forschungsgemeinschaft Project leaders: Linus Dahlander, Rajshri Project leader: Sascha Steffen (DFG) Jayaraman Project title: Central bank interventions Project leader: Frank Hüttner Project title: Choosing team members and short-term liquidity provision Project title: Solidarität und versus ideas: Evidence from a field €17,500 Leistungsgerechtigkeit in der experiment in entrepreneurial team Kooperativen Spieltheorie [Solidarity, performance Project leaders: Linus Dahlander, Rajshri monotonicity, and externalities in £50,000 Jayaraman cooperative game theory] Project title: A randomized control trial €263,500 of endogenous team formation and topic Leibniz Network choice among potential entrepreneurs Project leaders: Jörg Rocholl, Tobias Berg Supporting partners: Paul Heidhues, €12,500 Project title: The role of incentives within Özlem Bedre-Defolie, Rajshri Jayaraman banks €134,022 Project title: Berlin Economics Research Stiftung Geld und Währung Associates (BERA) €731,153 Project leaders: Jörg Rocholl, Kai Konrad Project title: The price-stability-target in the eurozone and the European debt Leibniz ScienceCampus crisis Supporting partners: Özlem Bedre- €20,000 Defolie, Sascha Steffen, Michał Grajek Project title: Berlin Centre for Consumer Policies (BCCP) €30,000 17 

44 research conferences

23 Germany

11 Europe

10 international

39 seminar presentations

8 Germany

21 Europe

10 international External presentations at research conferences and seminars 18 workshops 6 others

Özlem Bedre-Defolie Andreas Bernhardt Christoph Burger Conferences Workshop Conferences 18th CEPR-JIE Conference on Applied Society of Consulting Psychology Annual Bertelsmann University - Finance Summit Industrial Organization, CEPR and JIE, Conference, APA SCP, Seattle, WA, USA 2017, Bertelsmann SE & Co. KGaA, Berlin, Jerusalem, Israel Germany Annual Conference of the Leibniz CB Bhattacharya Blockchain-Tag für die Energiewelt 2017, ScienceCampus, MaCCI Mannheim Conference Solarpraxis Neue Energiewelt AG, Berlin, Centre for Competition and Innovation, Germany SDSN Leadership Council Meeting, University of Mannheim, Mannheim, Digital Utilities Europe 2017, Active Germany Sustainable Development Solutions Network, Berlin, Germany Communications Europe Ltd (ACI), Bergen Competition Policy Conference London, UK Seminars 2017, BECCLE Bergen Center for Global Summit on Blockchain Technology Competition Law and Economics, Bergen, Responsible Leadership, JCB, Delhi, India in the Energy Sector, Event Horizon, Norway WBCSD Leadership Program, WBCSD, Vienna, Austria The 9th conference on Economics of Berlin, Germany Praxisforum Energie 2017, Kisters AG, Bad Information and Communications Neuenahr, Germany Technologies, Telecom ParisTech, Paris, Matthew Bothner France Workshops Seminars Seminar Business and the Human Prospect, Research Seminar, Cass Business School, Energy Futures, IMD, Lausanne, Research Seminar, CREST Centre de London, UK Switzerland Recherche en Economie et Statistique, Paris, France Research Seminar, Columbia University, 10th OMIE International Workshop New York, NY, USA Tackling disruptive trends in power Workshops markets, OMIE, Madrid, Spain DFG ANR Competition and Bargaining in Tamer Boyaci Great Next Meetup: Blockchain in Vertical Chains workshop, University of the energy transition and more ft. Dusseldorf, DICE, Dusseldorf, Germany Conference GreenBuzz, Deutsche Energie-Agentur, IO Workshop, University of Bristol, Bristol, Operations Research Society of Israel - Berlin, Germany UK ORSIS 2017 Conference, Israel Institute Electricity reform and technological MaCCI Summer Institute in Competition of Technology & Operations Research disruption: What options for Saudi Policy 2017, University of Mannheim, Society of Israel, Haifa, Israel Arabia, KAPSARC and SEC, Riyadh, Saudi Mannheim, Germany Seminars Arabia Workshop with Economic Experts, Research Seminar at HEC Paris, HEC Paris, Other European Commission, Directorate Paris, France Blockchain – neue Möglichkeiten für den General for Competition, Brussels, Research Seminar at Scheller College of Energiemarkt, Deutsche Energie-Agentur, Belgium Business, Georgia Institute of Technology, Berlin, Germany Atlanta, GA, USA Customer Care Center Management in der SCM Research Seminar, Rotterdam School Energiewirtschaft, User Group, Leipzig, of Management Erasmus University, Germany Rotterdam, The Netherlands  18

Gianluca Carnabuci Seminars Seminar Conference Cyberkrieg um Wählerstimmen? Wie Anästhesiologisches Kolloquium, Annual Meeting of the Academy of werden Wahlen durch das Internet Städtisches Klinikum Karlsruhe, Karlsruhe, Management, Academy of Management, beeinflusst?, Konrad-Adenauer-Stiftung, Germany Atlanta, GA, USA Potsdam, Germany Other Seminars GOFAC Lecture at the NATO Defense Unternehmer-Dialog, Die Familien- College, NATO Defense College, Rome, Unternehmer, Saarbrücken, Germany Antwerp Center of Evolutionary Italy Demography Seminars, University of Antwerp, Antwerp, Belgium Industrieclub Hannover Event, Rajshri Jayaraman Industrieclub Hannover, Hanover, Research Seminar, Aarhus University, Germany Conference Aarhus, Denmark Industrial cyber security in Germany, Second CRC Retreat, CRC Rationality and Research Seminar, Imperial College Lecture, MIT, Boston, USA Competition, Tutzing, Germany London, London, UK Munich Re Management Meeting, Munich Seminars Other re Management, Munich, Germany BEDR (Behavioral Economics & Decision HRD Summit Europe, Contentive, Workshops Research) Workshop, Cornell University, Amsterdam, The Netherlands Ithaca, NY, USA Hensoldt task force workshop, Hensoldt, Ulm, Germany Research Seminar, Friedrich Schiller Linus Dahlander University Jena (FSU), Jena, Germany Task Force Cybersicherheit, BDLI, Berlin, Workshop Germany Research Seminar, HEC Montreal, Workshop, University of Bath, Bath, UK Montreal, Canada Michał Grajek Research Seminar, University of Göttingen, Göttingen, Germany Francis de Véricourt Workshop Conferences Business and Public Policy workshop, Katja Kisseleva-Scherenberger International Conference on Operations INSEAD, Fontainebleau, France Research, Free University Berlin, Berlin, Other Germany Laura Guillén XIII International Accounting Symposium, Ramón Areces Foundation, Madrid, Spain MSOM Conference, University of North Conferences Carolina, UNC Kenan-Flagler Business School, Chapel Hill, NC, USA 2nd Interdisciplinary Perspectives Konstantin Korotov on Leadership Symposium, Durham Seminars University Business School (UK), Conferences OITM Seminar, University of California, Mykonos, Greece Academy of Management Conference, Berkeley, Berkeley, CA, USA New Directions in Leadership Academy of Management, Atlanta, GA, Research Seminar, Georgetown Research Conference (NDLR), INSEAD, USA University, McDonough School of Fontainebleau, France Coaching in Leadership and Healthcare Business, Washington, DC, USA Seminar Conference, Institute of Coaching at Harvard Medical School, Boston, MA, USA Research Seminar, John Hopkins Carey Research Seminar, Vlerick Business Business School, Baltimore, MD, USA School, Gent, Belgium Seminar Research Seminar, Université catholique Research Seminar, Vrije Universiteit de Louvain, Louvain-la-Neuve, Belgium Johannes Habel Amsterdam, Amsterdam, The Netherlands Conferences Sandro Gaycken EMAC 2017, EMAC, Groningen, The Xu Li Conferences Netherlands Conferences AGCS RisikoDialog, AGCS, Berlin, Germany Thought Leadership on the Sales CEBIT Hannover, CEBIT Hannover, Hanover, Profession Conference, HEC Paris, Paris, DRUID17 Conference, NYU Stern School of Gerrmany France Business, New York, NY, USA Cyber-Security und Bedrohungen aus dem INSEAD Doriot Entrepreneurship Netz: Ein Einblick in die digitale Welt und Jan U. Hagen Conference, INSEAD, Fontainebleau, ihre Gefahren, Konrad-Adenauer-Stiftung, France Conferences Berlin, Germany 15. Deutsches Flight Safety Forum, East Forum, AXICA, Berlin, Germany Per Olsson Vereinigung Cockpit, Bundesstelle für Event Series “Digital Lunch”, rheinland- Flugunfalluntersuchung, Deutsche Conference pfälzische Landesvertretung together Flugsicherung, Luftfahrtamt der Ausschuss Unternehmensrechnung with Landeszentrale für Medien und Bundeswehr, Hamburg, Germany im Verein für Socialpolitik, Verein Kommunikation and Verbraucherzentrale 21st Fab Management Forum, SEMICON für Socialpolitik at the University of Rheinland-Pfalz, Berlin, Germany Europe, Munich, Germany Konstanz, Konstanz, Germany HiPEAC conference/cybersecurity, HiPEAC, Stockholm, Sweden 19 

Seminars Seminars Seminars Accounting Seminar, University of Exeter, INO Seminar, Copenhagen Business NISlecture, Norwegian Technical Exeter, UK School, Copenhagen, Denmark University, Gjøvik, Norway Accounting and Finance Seminar, Research Seminar, Duke University, Ringvorlesung der Graduate Academy University of Bristol, Bristol, UK Durham, NC, USA SERIOR, Center for Security and Society Research Seminar Series at the Free Research Seminar, Polytechnic University der Universität Freiburg, Freiburg im University of Bozen-Bolzano, Bolzano, of Milan, Milan, Italy Breisgau, Germany Italy Workshops Workshop DZHW/RISIS Summer School, German Langer Abend des IT-Rechts, Karlsruhe Francine Petersen Centre for Higher Education Research and Institute of Technology, Karlsruhe, Conference Science Studies, Berlin, Germany Germany Thought Leaders in Consumer-Based Forum Citizen Science, Natural History Strategy Conference, Vrije Universiteit Museum Berlin, Berlin, Germany Martin Schweinsberg Amsterdam , Amsterdam, The Resource Competition, Research Conference Netherlands Assessment and Institutional Affiliations International Association of Conflict Seminars in Academia, Technical University of Management 30th Annual Conference, INSEAD Marketing Seminars 2017-2018, Munich, Munich, Germany International Association of Conflict INSEAD, Fontainebleau, France Symposium/Workshop, Knowledge and Management, Berlin, Germany Research Seminar (BEE Behavioral technology transfer in beyond, Research Engineering Group), KU Leuven, Leuven, Group Knowledge and Technology Stefan Wagner Belgium Transfer (TU Dresden), Fraunhofer Center for Responsible Research and Innovation Conferences Research Seminar, University of Berlin, Dresden, Germany 2017 Annual Meeting of the Academy of Lausanne, HEC Lausanne, Lausanne, Management, AOM, Atlanta, GA, USA Switzerland Martin Schallbruch 7th ZEW/MaCCI Conference, Mannheim St.Gallen Seminar Series on Marketing, Centre for Competition and Innovation, University of St.Gallen (HSG), Department Conferences Mannheim, Germany of Marketing, St.Gallen, Switzerland Die janusköpfige Digitalisierung, Other Akademie Tutzing, Tutzing, Germany 5th Cologne Symposium, University of Henry Sauermann IT-Fachtagung der Cologne, Cologne, Germany Conferences Versicherungswirtschaft, GDV, Köln, Germany 6th Annual Presidential Career Symposium, Texas Medical Center, Legal Transformation Days, Handelsblatt, Houston, TX, USA Berlin, Germany DRUID17 Conference 2017, NYU Stern Strategisches IT-Management, School of Business, New York, NY, USA Handelsblatt, Munich, Germany Munich Summer Institute, Bavarian re:publica 2017, re:publica, Berlin, Academy of Sciences and Humanities, Germany Munich, Germany  20

Centers and institutes

Center for Financial Reporting and Auditing (CFRA)

As a consequence of the financial turmoil over the last decade, financial reporting and auditing face enhanced regulatory and political scrutiny on both the national and international levels. In recent years, research has become increasingly important for capital market activities and financial reporting and auditing are no exceptions. At the same time, academic research is getting more specialized and many feel that the gap between academic research and practice has widened. CFRA sees it as its purpose to narrow this gap. For information about events organized by the CFRA, see page 31.

Team

Per Olsson Michael Wolgast Katja Kisseleva-Scherenberger Professor of Accounting and Academic Senior Research Fellow Research Associate Director of the CFRA Financial system monetary policy Entrepreneurial financial management, Financial reporting, capital markets implications, Credit Rating Agencies venture capital markets research, valuation research, corporate (CRAs), Macro-prudential supervision, governance, and international accounting corporate governance, financial stability differences Florian Mair Research Associate Sascha Czerwenka Michael Gewehr Alternative investments, asset Research Associate management, economics, emerging Managing Director Economics, finance, hedge funds, markets, portfolio management, wealth portfolio management management

Tijana Ristic Kern Coordinator

External affiliate researchers

Stanley Baiman Ulf Brüggemann Joachim Gassen Distinguished Affiliate Professor, ESMT Affiliate Researcher, CFRA, ESMT Berlin, Affiliate Researcher, CFRA and Visiting Berlin and William H. Lawrence Professor and Assistant Professor of Accounting, Faculty, ESMT Berlin, and Professor of Emeritus of Accounting, The Wharton Humboldt University of Berlin Accounting, Humboldt University of School, University of Pennsylvania Berlin 21 

Academic advisory council

Stanley Baiman Joachim Gassen Katherine Schipper Distinguished Affiliate Professor, ESMT Affiliate Researcher, CFRA and Visiting Thomas F. Keller Professor of Accounting, Berlin, William H. Lawrence Professor Faculty, ESMT Berlin, and Professor of Fuqua School of Business, Duke University Emeritus of Accounting, The Wharton Accounting, Humboldt University of School, University of Pennsylvania Berlin Laurence van Lent Professor of Empirical Accounting Tim Baldenius Annette Köhler Research, Tilburg School of Economics Vincent C. Ross Professor of Accounting, Professor of Accounting and Auditing, and Management, Tilburg University Leonard N. Stern School of Business, New Mercator School of Management, York University University of Duisburg-Essen

Center for Leadership Development Research (CLDR)

The CLDR continued to explore modern leadership challenges, consequences for leadership development efforts, and methods supporting managers in harnessing their leadership identities and competencies. Deep involvement of the people associated with the CLDR in the ESMT Executive Education and Degree Program allowed them to test their ideas with both seasoned and aspiring leaders. The Center’s own academic work and thought leadership pieces culminated in academic and practitioner articles, academic board supervision and the scholarly contribution to the new groundbreaking coaching book (The Sage Handbook of Coaching), scholarly and managerial conference presentations (Academy of Management, International Leadership Association, American Psychological Association, etc.), multiple events involving the CLDR collaborators, as well as membership in the academic advisory board of the Moscow School of Management Skolkovo. For information about events organized by the CLDR, see page 32.

Internal and external affiliates

Konstantin Korotov Bülent Gögdün Manfred F. R. Kets de Vries Associate Professor of Organizational Program Director, ESMT Berlin Distinguished Affiliate Professor, Behavior and Director of the Center Business strategy, change management, ESMT Berlin, and The Raoul de Vitry for Leadership Development Research consulting, executive coaching and d’Avaucourt Chaired Clinical Professor of (CLDR), ESMT Berlin education, management education, Leadership Development, INSEAD Psychological burdens of modern leadership development, strategy Leadership and the dynamics of leadership, leadership development, individual and organizational change career dynamics, and executive coaching Laura Guillén Assistant Professor of Organizational Svetlana Khapova Andreas Bernhardt Behavior, ESMT Berlin Visiting Faculty, ESMT Berlin, Fenna Executive Development Advisor and Lead Leadership and leader identity, Diemer-Lindeboom Chair in Careers and Coach, ESMT Berlin motivation to lead, gender, diversity, Organization Studies, Vrije Universiteit, Change management, coaching, conflict authenticity, dark side of leadership, Amsterdam and crisis management, executive social perceptions at work, and coaching coaching and education, human practices Ulf Schäfer resources management, leadership Program Director, ESMT Berlin development, negotiation, organizational behavior Jan U. Hagen Business ethics, change management, Associate Professor, ESMT Berlin entrepreneurship, leadership development, organizational behavior Elizabeth Florent-Treacy Error management, crisis management, impact of leadership styles, and Senior Lecturer, Associate Director, communication patterns on performance Research, INSEAD Executive Degree of flight crews Programme, INSEAD  22

Center for Sustainable Business (CSB)

The CSB is an international center specialized in formulating, implementing, and evaluating corporate sustainability initiatives. The CSB helps companies to increase value from their sustainability investments. The Center was founded by ESMT in February 2015. For information about events organized by the CSB, see pages 32–34.

(1) Sustainable Business Roundtable (SBRT)

The Sustainable Business Roundtable is a peer-to-peer learning network for international companies. Two leading companies joined the SBRT network in 2017 – adidas and ING. Therefore, in 2017, the SBRT members included Accenture, adidas, Aegon, AXA, BASF, Coca- Cola European Partners, Covestro, Deutsche Bank, Deutsche Telekom, E.ON, Enel, Fragomen, Fraport, IBM, ING, KBC, LafargeHolcim, McDonald’s, Osram, PricewaterhouseCoopers, Siemens, The Walt Disney Company, Unilever, and UniCredit. In 2017, the CSB hosted two Sustainable Business Roundtables for its members and invited guests.

(2) Thought leadership activities in the real estate industry

2017 saw the CSB start a collaboration with real estate company Ziegert. In the first year of this collaboration, the CSB engaged its MBA students in the Consulting Project, with the aim of proposing a set of KPIs for measuring the environmental and social and economic impact of real estate. The CSB also started a new form of dialogue within the real estate industry – the Realtors Sustainable Business Breakfast. It hopes to establish a new discussion within the real estate business on topics such as sustainability, namely how real estate companies can create shared value for business and society alike.

(3) Research project on embedding sustainability in mainstream companies

In 2017, the CSB continued disseminating the findings from a large research project investigating how sustainability is embedded in mainstream companies. The following companies participated in this research project: AEGON, Allianz, Apple, BASF, Coca Cola European Partners, Enel, Holcim/Ambuja, IBM, ING, ITC, JCB, Marks & Spencer, Nestlé, Old Mutual, Unilever, and Whirlpool. As a result, the CSB uncovered key factors that contribute towards embedding sustainability across the value chains. This year, the CSB continued writing up the findings of the research project and disseminating them among different audiences. 23 

Team

CB Bhattacharaya Joanna Radeke Professor of Marketing, Pietro Ferrero Manager Chair in Sustainability, and Founding Director of the CSB Sezen Aksin-Sivrikaya (until August Business strategy innovation, CSR, 2017) sustainability, stakeholder engagement, Research and Teaching Coordinator marketing strategy, and corporate identity and reputation

Internal affiliates

Tamer Boyaci Urs Müller Stefan Wagner Professor of Management Science, Lecturer and Head of the Practice Group Associate Professor of Strategy and Michael Diekmann Chair in Management Consumer Goods and Retail Director of PhD Studies Science, and Director of Research Business ethics, case study method, Economics of technology and innovation, Supply chain management, sustainable change management, consumer goods, intellectual property rights (patent operations, remanufacturing, retail corporate responsibility, corruption, protection), and innovation management operations, marketing operations intercultural management, pricing policy, inter-face, pricing, and assortment retail sector, stakeholder management, optimization sustainability

Rajshri Jayaraman Jörg Rocholl Associate Professor of Economics, Karl- President, Professor of Finance, and EY Heinz Kipp Chair in Research, and Faculty Chair in Governance and Compliance Lead of the Full-time MBA Program Corporate finance, corporate governance, Development economics, labor economics financial intermediation, central banks, financial regulation

External affiliates and SBRT Steering Committee

Tima Bansal Dietlind Freiberg Daniel Korschun Executive Director, Network for Business Director Corporate Responsibility, Associate Professor of Marketing, Drexel Sustainability and Professor of General McDonald’s Deutschland University Management, Ivey Business School Jennifer Howard-Grenville Sankar Sen Zeynep Gürhan Canli Associate Professor of Management, Professor of Marketing, Zicklin School of Director, Graduate School of Business University of Oregon Business, Baruch College and Migros Professor of Marketing, Koç University Ioannis Ioannou N. Craig Smith Associate Professor of Strategy and INSEAD Chaired Professor of Ethics and Shuili Du Entrepreneurship, London Business Social Responsibility, INSEAD Assistant Professor of Marketing, School University of New Hampshire Marc van Weede Andreas Kicherer Executive Vice President and Global Head Director Sustainability Strategy, BASFl of Strategy & Sustainability, Aegon N.V.  24

Digital Society Institute (DSI)

Supported by leading global companies in Germany, the DSI was founded in 2016 in order to foster the economic and societal development of digitization through strategic research and development. The institute designs effective, responsible strategies for politics, business and society in Europe’s digital future, and develops innovative technologies for novel approaches to digitization. The Institute’s main areas of expertise are digital society and strategy, digital risks and the evaluation of solutions, innovation and regulation, and high assurance technologies. In 2017, the DSI was very active in many important debates and decision making processes. It took part in senior government activities, initiated and moderated IT security roundtables for the German Bundestag, CDU, SPD, and Grüne, participated in large enterprise C-level meetings, and organized a number of internationally well-received workshops and conferences. The Cybercrime Conference C³ conducted in cooperation with the Bundeskriminalamt (Federal Criminal Police Office) and this year’s DSI conference “Reloading Reliability” deserve a special mention here. “Reloading Reliability” discussed how to reintroduce technical, legal, political and military reliability in an age of digital insecurities and was conducted in collaboration with the Cyber Innovation Hub of the German Armed Forces. Further partners were the German Federal Foreign Office, ENISA, the Blavatnik Interdisciplinary Cyber Research Center of Tel Aviv University, the Chair Castex de Cyberstrategie, the AI initiative of the Harvard Kennedy School, and the Center for Public Policy and Private Enterprise at the University of Maryland. Further important events were with NATO, MIT, and the Federal Ministry for Economic Affairs and Energy. For information about events organized by the DSI, see pages 34–38.

Team

Sandro Gaycken Georg T. Becker Susan Burgard Director of the DSI Senior Researcher Team Assistant Strategic digitalization, cybersecurity, IT-security, hardware security, hard­ware cyberwar Trojans, side-channel analysis, IP pro­ Alicia Lohmann tection, hardware watermark, software Student Assistant water­ mark,­ hardware obfuscation Martin Schallbruch Deputy Director Shina-Nancy Erlewein Cybersecurity, privacy, digitization strategies, digitization policy, public Scientific Coordinator sector ICT, European and international cyber law, incident management, cyber Isabel Skierka trust Researcher IT security, cyber security, Industry Alexander Bajic 4.0, critical infrastructures, global Junior Researcher governance, international security Usable security and privacy, perceived authenticity, authentication schemes, fraudulent behavior in VoIP 25 

External affiliates

Philippe Baumard Kenneth Geers James Andrew Lewis Professor of Strategic Management, École Senior Research Scientist, Comodo; Senior Director and Senior Fellow, Center for Polytechnique Fellow, Atlantic Council; Ambassador, Strategic & International Studies (CSIS) NATO Cyber Center Frédérick Douzet John Mallery Professor, Institut Français de Michael Hange Research Scientist, Massachusetts Géopolitique (IFG) Former President of the Federal Office for Institute of Technology (MIT) Information Security (BSI)

Advisory council

Thomas Bagger Melissa Hathaway Ralf Schneider Director of Foreign Policy, Office of the Senior Advisor, Belfer Center for Science Group CIO, Allianz Federal President of Germany and International Affairs, Harvard Kennedy School Brigitte Zypries Robert Blackburn Federal Minister for Economic Affairs and Former President, Information Stefan Heißner Energy, German Federal Government Technology and Supply Chain Operations, Visiting Faculty, ESMT Berlin, Partner, EY BASF Martin Hofmann Sorin Ducaru CIO, Volkswagen Former Ambassador to the USA, Romania; Senior Fellow, Hudson Institute; Special Wolfgang Ischinger Advisor, Global Commission on the Stability of Cyberspace; and Assistant Former Ambassador to the UK and the Secretary General, NATO USA, Germany; Chairperson of the Munich Security Conference  26

Hidden Champions Institute (HCI)

The Hidden Champions Institute (HCI) was founded in 2017 by ESMT. “Hidden champions” are primarily medium-sized companies that hold a leading international market position but despite their success are largely unknown to the general public. The HCI is the world’s first university institution dedicated exclusively to hidden champions, thus providing them with an academic home. Its mission is to support executives by generating and disseminating knowledge for and about hidden champions. To this end, the HCI operates on three different levels: • Research: The HCI aims to generate practical and scientifically relevant knowledge for and about hidden champions. On the one hand, it studies the success factors of hidden champions. For this purpose, it aims to build a regular survey among hidden champions and other companies – the HCI panel. On the other hand, the HCI examines current and future challenges for hidden champions to support them in even better mastering their respective tasks. Examples of such topics are international competitive strategy, innovation, marketing and sales management as well as questions of governance, leadership, corporate culture, and succession. • Education: In its open and customized executive education programs, the HCI imparts practical knowledge for and about the hidden champions. • Network: The HCI provides an independent platform for hidden champions to learn from each other and build a reliable network.

Team

Johannes Habel Sabine Rau Bianca Schmitz Associate Professor, Co-director and Co-director Co-director and Program Director Program Director Entrepreneurship, family business Innovation processes, design thinking Brand strategy, consumer behavior, customer relationship management, incentives, marketing, negotiation, sales force management (in industrial markets), strategic marketing, technology-based industries

Advisory council

Patrick Adenauer Vera-Carina Elter Peter Jaskiewicz Managing Partner, Bauwens GmbH & Co. Head Family-owned Businesses, KPMG AG Full Professor, Telfer School of KG Wirtschaftsprüfungsgesellschaft Management, University of Ottawa

Philipp Aminoff Robert Gutsche Jürgen Kluge Chairperson, Helectron Oy Ab CEO, IFA Group Chairperson of the Supervisory Board, Schmitz Cargobull AG Reinhold von Eben-Worlée Stefan Heidbreder Managing Partner, Worlée-Chemie GmbH Managing Director, Stiftung Alexander Knauf Familienunternehmer Managing and General Partner, Knauf Gips KG 27 

Hans-Jürgen Kulartz Christoph Regierer Ulrich Bertold Stoll Board Member, Berliner Sparkasse Partner, Mazars GmbH & Co. KG Vice Chairperson of the Supervisory Niederlassung der Landesbank Berlin AG Board, Festo AG & Co. KG Jörg K. Ritter Holger Lösch Partner, Egon Zehnder International Daniel Terberger Deputy Director General, Bundesverband GmbH CEO, KATAG AG der Deutschen Industrie (BDI) Jörg Rocholl Markus Voigt Andreas Maurer President, Professor of Finance, and EY President, Verein Berliner Kaufleute und Senior Partner and Managing Director, Chair in Governance and Compliance, Industrieller e.V. (VBKI) The Boston Consulting Group ESMT Berlin Friederike Welter Ingeborg Neumann Hermann Simon President and Managing Director, Institut Founder and Managing Partner, Founder and Honorary Chairperson, für Mittelstandsforschung Bonn Peppermint Holding GmbH Simon-Kucher + Partners GmbH Reinhard Zinkann Managing Partner, Miele & Cie. KG  28

ESMT research events

6 conferences

28 research seminars

10 open lectures

Centers/institute events

2 CFRA

3 CLDR

6 CSB

18 DSI Events

Research seminars and academic presentations

The list includes the following seminar types: Faculty Research Seminars (FRS), Brown Bag Seminars (BBS), and the Berlin Finance Seminar Series (FSS). The latter is held in conjunction with the Humboldt University of Berlin.

Sam Aflaki (HEC Paris) Max Bruche (Cass Business School, Christian Helmers (Leavey School of Energy efficiency contracting in supply University of London) Business, Santa Clara University) chains under asymmetric bargaining Pipeline risk in leveraged loan syndication Freemium in digital markets: Evidence power from an online game Joseph A. Clougherty (College of Selin Atalay (Frankfurt School of Finance Business at Illinois, University of Illinois) Christoph Ihl (TUHH Institute of and Management) Mergers versus acquisitions Entrepreneurship, Hamburg University Carry over effects of control of Technology) Daniel W. Elfenbein (Olin Business Copyright or copy right? How user Alexander Bajic (ESMT Berlin) School, Washington University in St. communities become market makers by infringing digital copyrights On the evaluation of network defense Louis) techniques Learning and overconfidence in entry and exit decisions of entrepreneurs Martin Kanz (The World Bank) Marco Becht (Solvay Brussels School for Status goods: Experimental evidence Economics and Management, Université Alfonso Gambardella (Department of from platinum credit cards libre de Bruxelles) Management and Technology, Bocconi Does mandatory shareholder voting University) Laurenz Klipper (Humboldt University prevent bad acquisitions? A scientific approach to entrepreneurial of Berlin) decision making: Evidence from a Mutual funds’ end-of-period trading and Georg T. Becker (ESMT Berlin) randomized control trial stock-price inflation A fair and comprehensive large-scale Mutual-fund leverage analysis of oscillation-based PUFs for Gianluigi Giustiziero (SKEMA Business FPGAs School, University of Côte d’Azur) Alper Nakkas (NOVA School of Business Quantum computer and their implications Creative construction in a Schumpeterian and Economics) to cryptography: Should we be scared? environment: The duality of learning and Heterogeneity on equilibrium prices in competition supply chain networks CB Bhattacharya (ESMT Berlin) Benjamin Grosse Rueschkamp (ESMT Business through the sustainability lens: Berlin) How to avoid corporate extinction and embrace excellence The transmission channels of central bank corporate bond purchases 29 

Özalp Özer (Jindal School of Maarten Pieter Schinkel (Faculty of Suresh Sundaresan (Columbia Business Management, The University of Texas at Economics and Business, Amsterdam School, Columbia University) Dallas) Center for Law & Economics, University An explanation of negative swap spreads: Establishing trust and trustworthiness in of Amsterdam) Demand for duration from underfunded global businesses Cartel dating pension plans

Eric Quintane (School of Management, Stephan Siegel (Foster School of Keyvan Vakili (London Business School) University of Los Andes) Business, University of Washington) Can specialization foster creativity? The production of novelty in music: A The human touch in a fintech world: Mathematics and the collapse of the relational perspective Personal communication and loan Soviet Union repayment Tanseli Savaser (Faculty of Business Marno Verbeek (Rotterdam School of Administration, Bilkent University) Axel Stahmer (ESMT Berlin) Management, Erasmus University) Differential risk taking implications of An examination of tail risk taking by Trading is hazardous to your wealth: performance incentives from stock and active mutual funds Evidence from mutual funds around the stock option holdings world

Conferences, workshops, and roundtables

8th and 9th Berlin IO Day March 10 and October 6 The Berlin IO Day is a biannual, all-day workshop sponsored by the Berlin Centre for Consumer Policies (BCCP) and supported by Berlin’s leading academic institutions, including DIW Berlin, ESMT, Humboldt University of Berlin, Technical University, Berlin, and WZB.

Economics of Platforms Workshop April 7–8 The markets where platforms create value by connecting two (or more) distinct groups of customers and facilitating interactions between them by lowering transaction costs and search costs are called two-sided markets or platform markets. Examples include many important industries, e.g., online market places such as eBay or Amazon.com, software platforms like Apple or Microsoft, and payment card networks like Visa. Economics of platforms analyze platforms’ business models, profitable strategies, as well as antitrust and regulation issues related to platforms’ business practices. The Economics of Platforms workshop aimed to provide a venue where leading scholars around the world presented and discussed their latest research in this fascinating and fast-growing area of research.

Asset Management Conference August 21–22 The conference focused on recent advances in mutual fund and hedge fund research. The goal of this conference was to bring together leading academics interested in asset management in a network environment, so as to provide a forum of discussion on a wide range of theoretical and empirical issues as well as policy implications relating to mutual funds and hedge funds.  30

Field Days 2017 Experiments outside the lab November 10–11 This workshop was the sixth edition of the ‘Field Days’ and brought together 12 invited junior and senior researchers who conducted field experiments to present and discuss their work. The set-up and size of the workshop allowed for an in-depth interaction between people working in related research areas. The workshop covered a broad range of topics, including incentives in the workplace, nudges, tax compliance, social identity and education policies in development and developed countries.

BERA Applied Economics Workshop 2017 November 23–24 This workshop was jointly organized by ESMT and DIW and hosted for post-doctoral students in Berlin in Applied Economics.

ESMT Open Lectures

Mohamed A. El-Erian, Chief Economic Advisor, Allianz High inclusive growth: The elusive quest

Mikhail Khodorkovsky, Founder of the Open Russia movement, businessman, and former head of YUKOS Russia in Europe: Yesterday, today, tomorrow

Malcolm D. Knight, Deputy Chair and Board of Directors of Payments Canada and Distinguished Fellow, Centre for International Governance Innovation A proposal for G7/G20 policy coordination to strengthen global productivity and output growth

Petri Kokko, Director Agency, Google Germany Google’s strategic journey from desktop to mobile first and now AI

Christine Lagarde, Managing Director, International Monetary Fund Andreas Dombret, Member of the Executive Board, Deutsche Bundesbank Innovation, technology, and growth

Charly Moore, Founder and CEO, Rocket Lawyer (hosted by DSI) The consumerization of justice is here: The future of legal tech and Rocket Lawyer

Candice Morgan, Head of Inclusion & Diversity, Pinterest The business case for diversity: Lessons learned on improving diversity at Pinterest

Lee Rainie, Director of Internet and Technology Research, Pew Research Center (hosted by DSI) What happens when the internet is everywhere 31 

Marc Sasserath, Founder, Partner and CEO of Sasserath Munzinger Plus, Sasserath Munzinger Plus Michelle vs. Trump: The art of branding

Nicolas Véron, Senior Fellow, Bruegel Challenges for the European Union in 2017

Centers and institute events

Center for Financial Reporting and Auditing (CFRA)

Entrepreneurial Financial Management Conference I Entrepreneurial Financial Management January 13–14 In an increasingly regulated corporate and capital markets’ world, sound financial management is vital for companies of all sizes. While start-ups enjoy many regulatory exemptions, their success still requires that investors and entrepreneurs understand each other’s information needs. Lack of useful and reliable information, as well as its insufficient flow, can slow down the growth of the company, endanger the venture and debt capital markets, and put newly created jobs in this sector at jeopardy. The conference on Entrepreneurial Financial Management provided a unique forum for focusing on entrepreneurial finance and entrepreneurial accounting. In addition to keynote addresses, papers and panel discussions that highlighted current insights from the practitioner community, the conference also featured a full day of academic programming. Academic participants included Gavin Cassar (INSEAD), Rajesh Chandy (London Business School), Per Olsson (ESMT Berlin), David T. Robinson (Duke University), Jörg Rocholl (ESMT Berlin), Per Strömberg (Stockholm School of Economics), and Thomas Åstebro (HEC Paris). Several industry participants also took part in the discussion, among them Jörg Kukies, Co-CEO Goldman Sachs Germany–Austria.

Seminar on Challenges to External Reporting Reporting of the Future: From Compliance Exercise to Management Approach, CSB at ESMT Berlin and PwC May 16 The seminar encompassed several topics related to non-financial information, including but not limited to, corporate social responsibility (CSR) reporting and assurance, measurement of sustainability within corporations, as well as consequences in capital markets, and various regulatory initiatives, both at the national and international level. The program featured keynotes, panels and several interactive discussions.  32

Center for Leadership Development Research (CLDR)

4th Russian-German Executive Coaching Colloquium Business under conditions of uncertainty: Territory of opportunities May 25–26 The Center for Leadership Development Research continued its cooperation with the National Research University Higher School of Economics in Moscow, Russia, in exploring the challenges of the nascent discipline of executive coaching. Based on submission of practice-based coaching case studies, the conference explored repeated regularities in success or failures of executive coaching interventions. The Colloquium also invited the participants to engage in discussions of current research in the areas of leadership development and coaching.

6th ESMT OB Conference June 26–27 The ESMT OB Conference is a small, specialized, annual research event that takes place every summer at ESMT. This is now the sixth edition of this event. Each year, the conference convenes with outstanding, renowned, and emerging scholars from the field of OB and leadership. In 2017, the conference had 35 participants coming from top European and US Business Schools. The goal of the conference was to present original research ideas, connect with other scholars and get feedback on a variety of leadership and OB related topics.

9th ESMT Berlin/KDVI Coaching Colloquium The dark triad of leadership: How narcissism, machiavellianism, and psychopathy play out in executive coaching December 15–16 The Center for Leadership Development Research at ESMT Berlin and the Kets de Vries Institute (KDVI) ran the by now legendary ESMT/KDVI Coaching Collo­quium for the 9th time. The colloquium once again served as an opportunity for academics, practicing leadership coaches, human resources and learning and development professionals, and management consultants to enhance their knowledge, skills, and networks through intensive collaboration and peer-consultation on challenging or unusual cases in the practice of executive coaching. During the colloquium participants worked with real cases presented by real coaches, faculty, and learning and development managers and commented upon by fellow professionals and academics. Presentations of latest research on the dark triad of leadership and on new developments in executive coaching complemented the program.

Center for Sustainable Business (CSB)

Sustainable Business Roundtable Spring Meeting: Impact Assessment April 27–28 Sustainable Business Roundtable (SBRT) member companies and the invited guests met on April 27 and 28, 2017, at ESMT to discuss the theme of sustainable innovation. The 33 

focus was on the following issues:

• How to gain circular economy advantages? • What are the promises and perils of digitalization? • How do large established companies innovate? • How to implement sustainable innovation? • Bringing sustainable innovation to the mass market • Open innovation • Reverse and frugal innovation • Does rewarding failure leads to more innovation? Speakers and moderators included: Peter Lacy (Accenture Strategy), Christoph Böhm (SAP), Philippe Forestier (Dassault Systèmes), Marc van Weede (Aegon), Tamer Boyaci (ESMT Berlin), CB Bhattacharya (ESMT Berlin), Florian Hoffmann (The Do School), Philipp Meister (adidas Group), Veronika Pountcheva (METRO Group), Christina Schmöe (OSRAM), Joanna Radeke (ESMT Berlin), Ernesto Ciorra (Enel), Andreas Kicherer (BASF).

World Business Council Sustainable Development Leadership Program May 11 ESMT hosted the World Business Council Sustainable Development Leadership Program.

Seminar on Challenges to External Reporting Reporting of the Future: From Compliance Exercise to Management Approach May 16 ESMT co-hosted the seminar on Reporting of the future: From compliance exercise to management approach with the CFRA. For a brief description of this event, see the CFRA events on page 31.

Realtors Sustainable Business Breakfast November 14 Sustainability has been shown to enhance real estate value. Yet, according to the GRESB 2017 Sustainability Assessment of over 250 real estate companies, the average score for environmental, social and economic performance was a low 63 out of 100. In addition, only three of the Global 100 Most Sustainable Corporations in the World are real estate companies. The pressure for sustainability practices in the real estate industry from stakeholders such as investors, local communities, regulators, and tenants is increasing. What is holding real estate companies back? How to gain value from sustainability investments in the real estate industry? In this first event, the CSB presented best practices and latest insights on sustainability in the real estate industry, focusing on social aspects during project developments. The event was attended by real estate professionals, as well as our students involved in the MBA Consulting Project. Presenters included: Alexander Boether (ZIEGERT), CB Bhattacharya (ESMT Berlin), Matthias Böttger (Deutsche Architektur Zentrum (DAZ)), Birgit Memminger-Rieve (ES EnviroSustain), and the MBA Consulting Team.  34

Sustainable Business Roundtable New paradigms of sustainable governance November 14–15 On November 14 and 15, the Sustainable Business Roundtable focused on “New paradigms of sustainable governance”. The topics discussed ranged from human rights, modern slavery, anti-corruption and transparency to the Sustainable Development Goals, and emerging issues and trends in sustainable governance (e.g., diversity, board engagement). Speakers included: Neil Smith (Aegon), CB Bhattacharya (ESMT Berlin), Sabine Content (GRI), Quintin Lake (Hult International Business School), Mauricio Lazala (Business & Human Rights Resource Centre), Angela McClellan (Transparency International), Linda Midgley (PwC), Roel Nieuwenkamp (OECD Working Party on Responsible Business Conduct), Yves Nissim (Orange), Lydia Simon (Covestro), Markus Strangmüller (Siemens).

16th ABIS Annual Colloquium Leadership for a sustainable future November 15–16 ESMT is one of the ABIS member organizations. At the 16th ABIS Annual Colloquium in Brussels, CBS was represented by Joanna Radeke. ABIS - The Academy of Business in Society is a global network of over 100 companies and academic institutions whose expertise, commitment and resources are leveraged to invest in a more sustainable future for business in society.

Digital Society Institute (DSI)*

DSI Workshop 3 Kryptodebatte 4.0 (Crypto debate 4.0) January 13 Encryption of electronic data is required for data protection and IT security. The result of encryption is that security authorities have difficulties to assess the important data needed for their investigations. The crypto debate deals with the question if and to what extent the state has to intervene in order to fight crime. Stefan Grosse (Federal Ministry of the Interior), Stefan Heumann (Stiftung Neue Verantwortung), Ralf Koenzen (LANCOM Systems GmbH), and Linus Neumann (Chaos Computer Club) shared their experiences and thoughts on the crypto debate. The outcome of the event was published in a policy paper.

Strategic Industry Policy Automotive First and second roundtable March 16 and May 24 In March and May 2017, the DSI organized two roundtables with automobile manufacturers, automotive suppliers, insurance, and testing companies for the German Bundestag. Themes addressed were data, vision, ecosystems, and security. As an outcome of the event, recommendations for safety, security, and data policy in automotive IT were published.

* Please see page 30 for ESMT Open Lectures hosted by DSI 35 

Stakeholder Workshop TÜV Nord March 22 The workshop focused on the convergence of safety and security risks in health care, specifically regarding connected medical devices. Isabel Skierka presented on safety and security in the medical Internet of Things, Georg T. Becker on medical embedded systems security, Martin Schallbruch presented on developments in German IT security law, and Sandro Gaycken on new trends in hacking of embedded systems.

Stakeholder Workshop TÜV Nord Blockchain December 13 This workshop focused on the topic of blockchain. Sandro Gaycken gave a presentation about reliable cyber security, Isabel Skierka presented on blockchain and its opportunities and risks for IT security, Georg T. Becker talked about quantum computers and post- quantum crypto, and Alexander Bajic presented on the evaluation of network defense techniques.

Third Forum for IT Users March 30 In this workshop, members of the SPD Parliamentary Group and the DSI discussed with industry, science, and union representatives questions concerning the human factor in IT security. The event was held in German at the German Bundestag.

Stakeholder Workshop Allianz April 3 The topics of this workshop included industrial and embedded risk und security approaches, industrial policy, embedded automotive IT security, and a review of the security ecosystem of Allianz.

Aspen Transatlantic Digital Agenda Bridging the Gap, Aspen Institute April 5 The common set of values between Europe and the US form the basis of a social contract that guarantees our citizens freedom, equality, democracy, openness, and the rule of law expressed in the US Bill of Rights and the French Declaration of Human Rights in 1789. In the UN, Bretton Woods institutions, Geneva Conventions and NATO, Europe, and the US forged an international system based on these shared values. Now these values must be adapted to the digital age – a sort of digital social contract. This event launched a joint project to face this challenge. The conference was opened with a keynote on the G20’s digital policy priorities by Brigitte Zypries (German Federal Minister of Economic Affairs and Energy). Further speakers were Julie Brill (former Commissioner, U.S. Federal Trade Commission), Sandro Gaycken (Director, DSI), Linda Griffin (Head of Public Affairs, King; Co-founder and Chairperson, EU Tech Alliance), John Frank (Vice President for EU Government Affairs, Microsoft), Thomas Jarzombek (MP and CDU/CSU spokesperson on the Digital Agenda, Bundestag), and Cameron Kerry (former General Counsel and former Acting US Secretary of Commerce).  36

Stakeholder Workshop _cyel April 7 The lecture and adjacent discussion focused on provable security and its usefulness as a design primitive in the development process of security products. Participants were project partners from _cyel and researchers from the DSI. Impulses were given by Georg T. Becker and Alexander Bajic.

DSI Workshop 4 Wie sicher ist freie Software? (How secure is free software?) April 20 The DSI invited user companies, IT-(security-) companies, security authorities as well as hacker and activists to discuss the difference between open and proprietary software concerning vulnerabilities, the impact on IT security and its significance. The workshop included contributions from Carl-Daniel Heilfinger (Federal Office for Information Security (BSI)), Matthias Kirschner (Free Software Foundation Europe), Michael Kranawetter (Microsoft Germany), and Kathrin Noack (Karlsruhe Institute of Technology, Projekt SecUnity).

The Cybercrime Conference C³ 2017 May 3–4 The digitalization of different social sectors has an impact on the crime situation. Fields such as Internet of Things and Industry 4.0 offer new opportunities for cybercrime that is further complicated by increasing professionalism among perpetrators as well as new forms of cyberattacks. Thus, a continuous further development of strategies for prevention and control is necessary. The conference brought together leading scientists, practitioners, and enforcement authorities to discuss and share their thoughts on these topics and to gain information on current trends. The first day of the conference was open to participants from industry, academia, and research. Speakers came from government, the scientific community, well-known web-based companies as well as from national and international institutions against cybercrime. The second day was open to members of law enforcement agencies only. The conference was organized by the DSI together with the German Competence Center against Cybercrime e.V. (G4C) and the Bundeskriminalamt (Federal Criminal Police Office).

International workshop on malicious software and hardware in Internet of Things (Mal-IoT 2017), ACM May 15 Cyber-physical and smart embedded systems, already highly networked, will be even more connected in the near future to form the Internet of Things, handling large amount of private and safety critical data. This international workshop with peer-reviewed scientific papers and a panel discussion focused on different aspects of security in Internet of Things and discussed if a paradigm change in IoT security is needed. 37 

Zukunftsforum Öffentliche Sicherheit Forum Spezial Cyberintervention May 18 The DSI and the Zukunftsforum Öffentliche Sicherheit e.V. (ZOES) organized a special forum, which is one part of a series of workshops by the ZOES addressing four different issues on public security in order to gradually implement the new concept of civil defense. The process is accompanied by a steering group of the German federal states. Overall themes are crisis management, logistical problems, specific requirements for the interface of rescue/safety and cyber intervention. The latter was the main topic of the workshop that was held at the DSI. Lutz Diwell (Chairperson, ZOES), Martin Schallbruch (Deputy Director, DSI), Stefan Hiermaier (Head, Fraunhofer EMI), Ole Schröder (MdB, Parliamentary Secretary of State, Federal Ministry of the Interior), and Gerhard Schabhüser (Vice President, Federal Office for Information Security (BSI)) shared their thoughts on resilience as a new approach for the safety of tomorrow, prevention and protection, and IT security research.

Bundesministerium für Wirtschaft und Energie Strategiedialog Digitale Souveränität June 2 The Federal Ministry for Economic Affairs and Energy (BMWi) created a political strategy for the digital sovereignty in Germany. Together with the DSI the BMWi will accompany the strategy process through a strategy dialogue with leaders of enterprises as well as research experts. The first strategy dialogue generated input from theory and practice for the further development of the strategy.

Stakeholder Workshop BASF July 6 This workshop focused on embedded, OT and industrial IT security at producing industries.

EY Stakeholder Workshop Risk Analysis July 13 This event, held together with EY, dealt with the methodology of risk analysis and its adaptation to companies. Participants shared their points of view on “state-of-the-art” risk analysis. Furthermore, conclusions were drawn on solutions for incident response/ cyber crisis management as part of a holistic crisis management.

BWI Workshop Security Framework July 14 The DSI hosted a workshop together with BWI on the development and definition of security frameworks as well as on the national implementation framework for encryption.  38

DSI Workshop 5 Sicherheit in der vernetzten Medizin (Cybersecurity in connected healthcare) October 18 The DSI hosted a German-language workshop dedicated to the topic of cybersecurity in connected healthcare. Speakers from Charité Berlin, HTW Berlin, Siemens Healthineers, TÜV Nord and Accessec shared their thoughts on how manufacturers of medical devices and health care organizations are able to meet the requirements of cybersecurity, and how connected healthcare or a ‘Medical Internet of Things’ can be made more secure. Furthermore, the agenda included discussions on how characteristics of medical devices such as performance, efficiency or functional security can be brought into accordance.

The Digital Society Conference 2017 Reliability reloaded November 20–21 This two-day interdisciplinary conference discussed how to reintroduce technical, legal, political, and military reliability in an age of digital insecurities and uncertainties. Speakers mapped the shallows of our loss of control and brought novel thoughts and technologies to the discussion. The conference encompassed two days of technical and political panels, presentations, and workshops involving many international senior speakers from science, industry, and governments, and including several specialized sessions run by leading international thinkers and practitioners. Topics included the failure of IT security, embedded and OT security, medical IT security, vulnerability policy and software liability, AI security systems, security of AI, high-assurance systems, proliferation and OpSec, lawful hacking and hackbacks, cybersecurity in the MENA region, cybervisions, information operations and mass social engineering, defense electronics, defense innovation, big data, and PsyOps. Keynote speakers included Sandro Gaycken (DSI), Udo Helmbrecht (ENISA), Thomas Fitschen (Federal Foreign Office), Iris Plöger (BDI), Marcel “Otto“ Yon (Bundeswehr Cyber Innovation Hub), and Katrin Suder (German Federal Ministry of Defense). This conference was partnered and sponsored by the Bundeswehr Cyber Innovation Hub, the German Federal Foreign Office (Auswärtiges Amt), and the European Union Agency for Network and Information Security (ENISA). For information on the DSI grant from the German Federal Foreign Office, see page 14. 39 

PhD program

In its continuing strive for excellence, ESMT received the right to grant PhD titles from the Berlin Senate in 2013. ESMT currently participates in the Berlin Doctoral Program in Economics and Management Science (BDPEMS). ESMT faculty members offer several core courses within the BDPEMS curriculum and supervise PhD students enrolled in the program. ESMT PhD students are selected on the basis of their academic excellence and research promise. ESMT awards scholarships with the aim of supporting outstanding students based on their intellectual excellence, evidence of personal and professional achievement, as well as a proven strong potential to conduct independent research. They are exclusively available to students who have been accepted in the BDPEMS.

Key achievements of ESMT PhD students

ESMT PhD candidate Axel Stahmer, supervised by Jörg Rocholl, spent the spring semester of 2017 at Harvard University, on invitation of Joshua Lerner. During his research visit, he continued his work on capital structure and asset management, financially supported by an ESMT PhD scholarship. ESMT PhD candidate Jing Huang submitted his thesis ‘Essays in statistical estimation and a stochastic application to financial markets’ (supervised by Catalina Stefanescu- Cuntze). In 2017, ESMT welcomed four new ESMT PhD students. Tilman Fries and Kien Nguyen — who both were admitted to the BDPEMS’s 2017 cohort — joined ESMT as first-year PhD fellows and obtained ESMT PhD scholarships. Moreover, Marrit Teirlinck and Kamil Stronski, who will be supervised, respectively, by Rajshri Jayaraman and Xu Li, are financed by a DFG grant ‘Rationality and Competition: The Economic Performance of Individuals and Firms (SFB/Transregio 190)’ and an ESMT PhD scholarship.  40

BDPEMS courses

Özlem Bedre-Defolie Gianluca Carnabuci Francis de Véricourt Management Science II: Topics in Management Science I: Network Management Science I: Sequential Industrial Organization - Part II brokerage and network cognition - Part IV decision making under uncertainty - Part II

Matthew S. Bothner Linus Dahlander Stefan Wagner Management Science I: The Analysis of Management Science I: Networks: Management Science II: Innovation, economic and social networks - Part III Data collection and visualizations & Tie intellectual property rights, and the strength, dyads, triads, and centrality - market for technology Part I Other courses

Stefan Wagner Applied Regression Analysis, together with Georg von Graevenitz (Queen Mary University of London) as part of the German Academic Association for Business Research (VHB) doctoral program.

ESMT PhD students

Teresa Backhaus Katja Kisseleva-Scherenberger Kien Nguyen ESMT PhD Fellow ESMT PhD Fellow and Research Associate, ESMT PhD Fellow Public economics and applied Center for Financial Reporting and Innovation economics and public policy microeconomics Auditing (CFRA) Entrepreneurial financial management, venture capital markets Axel Stahmer Ning Chen ESMT PhD Fellow ESMT PhD Fellow Ingo Marquart Behavioral economics, behavioral Consumer psychology and behavior, finance, financial markets judgment and decision making ESMT PhD Fellow Industrial organization, social and economic networks, regulation, Kamil Stronski Tilman Fries competition policy, energy economics ESMT PhD Fellow ESMT PhD Fellow Strategy and entrepreneurship Microeconomic theory, econometrics Benedikt Meyer-Bretschneider ESMT PhD Student and Faculty Research Marrit Teirlinck Benjamin Grosse Rueschkamp Assistant ESMT PhD Fellow ESMT PhD Student and Faculty Research Behavioral economics, experimental Development economics, migration, and Assistant economics applied econometrics Financial intermediation, monetary policy, banking regulation Renata Mišljenović Nghi Truong ESMT PhD Fellow ESMT PhD Fellow Jing Huang Financial stability, macroeconomics, Social network analysis, applied ESMT PhD Fellow monetary policy and econometrics microeconometrics, development Theoretical statistics, probability, economics econometrics 41 

Research lab and assistants

The research lab provides a state of the art environment for research under controlled conditions in the on-campus lab and through online surveys, whereby cutting edge research in business, marketing, psychology, and finance are conducted. In the studies participants help to create knowledge that may influence how companies do business. The lab was closed in 2017 due to reconstruction. ESMT designed new and spacious rooms, and the lab was relocated.

Research associates

Caner Canyakmaz Frank Hüttner Research Associate Research Associate Inventory management, pricing, Behavioral decision making, consumer operational and financial risk welfare, decision making, game theory, management, behavioral decision operations research, statistics making

Research assistants

Kelly Acuna Benjamin Grosse Rueschkamp Marrit Teirlinck Research Assistant Faculty Research Assistant Research Assistant

Miranda Arakelian Jing Huang Arne Thomas External Research Assistant Faculty Research Assistant Research Assistant

Mahdi Bayat Benedikt Meyer-Bretschneider Nina Xue Faculty Research Assistant Faculty Research Assistant Lab Manager and Faculty Research Assistant Niko De Silva Vaishali Prasad Faculty Research Assistant Research Assistant

The faculty research assistant role is that of an “ad-hoc” research assistant available to all faculty members on a first come-first serve basis.  42

34 research visitors

By home institution

17 Europe

14 North America

1 South America

2 Middle East

Research visitors

ESMT strongly encourages and supports joint research between faculty members and other researchers by hosting visiting scholars from around the world. A significant part of the centrally managed R&D budget is directed toward co-financing research visitors. These visitors work with individual ESMT faculty colleagues on topics of mutual interest and make a significant contribution – especially to those in the junior research community of the school – through mentoring, supervision, and seminars.

Simon Anderson (Department of Ulrich Doraszelski (The Wharton School, Christoph Ihl (TUHH Institute of Economics, University of Virginia) University of Pennsylvania) Entrepreneurship, Startup Dock, March 11–16, April 8–14, August 13–15 July 1–August 15 Hamburg University of Technology) December 11–12 Gary Biglaiser (University of North Michaela Draganska (LeBow College of Carolina) Business, Drexel University) Philippe Jacquart (EMLYON Business July 6–12 July 1–August 15 School) July 14–21 Lawrence Blume (Department of Michael Feldman (Department of Economics, Cornell University) Informatics, University of Zürich) Erik Johannesson (Columbia Business June 14–16, December 11–15 August 8–11 School, Columbia University) October 10–12 Viktoria Boss (TUHH Institute of Martin Gargiulo (INSEAD) Entrepreneurship, Startup Dock, June 19–July 6, November 24–December Selcuk Karabati (College of Hamburg University of Technology) 8 Administrative Sciences and Economics, March 29–30, August 2–3, December Koç University) 11–12 Steffen Giessner (Department September 5–January 30 of Organisation and Personnel Meghan Busse (Kellogg School of Management, Rotterdam School of Helge Klapper (Rotterdam School of Management, Northwestern University) Management, Erasmus University, Management, Erasmus University, July 1–21 Rotterdam) Rotterdam) June 16 April 23–25 Carlo Cambini (Department of Management and Production Richard Haynes (U.S. Commodity Futures Alper Nakkas (NOVA School of Business Engineering, Polytechnic University of Trading Commission) and Economics) Turin) October 9–12 September 20–24 December 11–13 Michael Hogg (School of Social Science, Özalp Özer (Jindal School of Joseph A. Clougherty (College of Policy & Evaluation, Claremont Graduate Management, The University of Texas at Business, University of Illinois) University) Dallas) February 1–July 31 July 20 September 13–17 43 

Henning Piezunka (INSEAD) Katja Seim (The Wharton School, Sascha Steffen (Centre for European March 13–15, October 8–13 University of Pennsylvania) Economic Research (ZEW), University of August 3–10 Mannheim) Eric Quintane (School of Management, July 10–15 University of Los Andes) Hanna Setterberg (Stockholm School of January 28–February 3 Economics) Marno Verbeek (Department of Finance, January 10–August 30 Rotterdam School of Management, Erasmus University, Rotterdam) Carla Rua Gomez (University of Lugano) September 15–December 15 February 6–10, June 21–23 Stephan Siegel (Foster School of Business, University of Washington) September 18–29 Florian Zettelmeyer (Kellogg School of Farzad Saidi (Swedish House of Finance, Management, Northwestern University) Stockholm School of Economics) July 1–21 July 31–August 4, August 14–23 Nicola Staub (Department of Informatics, University of Zürich) August 8–11 Georg von Graevenitz (Queen Mary Serpil Sayin (College of Administrative University of London) Sciences and Economics, Koç University) May 16–19 September 5–January 30 About ESMT Berlin

ESMT was founded by 25 leading global companies and institutions. The international business school offers a full-time MBA, an executive MBA, a master’s in management, as well as open enrollment and customized executive education programs. ESMT focuses on three main topics: leadership and social responsibility, European competitiveness, and the management of technology. ESMT faculty publishes in top academic journals. Additionally, the business school provides an interdisciplinary platform for discourse between politics, business, and academia. ESMT is based in Berlin, Germany, with Schloss Gracht as an additional location near Cologne. ESMT is a private business school with the right to grant PhDs and is accredited by the German state, AACSB, AMBA, EQUIS, and FIBAA. www.esmt.org

Citation

T. Boyaci, C. Xitco, and I. Rea (2018). R&D Annual Report 2017. Berlin: ESMT European School of Management and Technology GmbH.

Copyright 2018 by ESMT European School of Management and Technology GmbH, Berlin, Germany, www.esmt.org All rights reserved. This document may be distributed for free – electronically or in print – in the same formats as it is available on the website of the ESMT (www.esmt.org) for non-commercial purposes. It is not allowed to produce any derivates of it without the written permission of ESMT. ESMT European School of Management and Technology GmbH

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