WHU – Otto Beisheim School of Management is a German business school. The mainly privately financed school was founded in 1984 by the Koblenz chamber of commerce and is located in Vallendar near Koblenz. WHU maintains a network of over 190 partner universities worldwide.The school's partnership with the Kellogg School of Management, USA has led to the joint Kellogg-WHU Executive MBA Program which is ranked as one of the best EMBA programs in Europe. Its Master of Science in Management program has been ranked 4th worldwide by the Financial Times in 2014, making WHU - Otto Beisheim School of Management the foremost German business school.Patron and main financier of the business school is the late billionaire and founder of the METRO Cash & Carry Group, Otto Beisheim. Wikipedia.
News Article | October 28, 2016
GUETERSLOH, GERMANY--(Marketwired - Oct 27, 2016) - Outdated IT structures create the most challenges for retailers on their way to Omnichannel. This was clearly indicated based on surveying retailers in the Omnichannel Status Report 2016 compiled by Arvato in cooperation with Salesforce and the WHU - Otto Beisheim School of Management. In particular, corporate structures which are still vertically oriented need to be integrated accordingly with the widely spread, separated sales channels. "Retailers are aware that their customers expect consistent offers across all channels from retail stores to Smartphones," according to Marcus Karten, Vice President of Global Business Development & Solution Design of Arvato SCM Solutions - Consumer Products. "Hence, Omnichannel is no longer a 'nice-to-have,' rather a 'must-have.' It is essential that all employees have access to the same system in order to reach customers across all channels. Currently, many retailers are still operating with out-of-date IT structures, not even networked, and also only partially compatible with one another. Such fragmented systems rarely permit returning an item which was purchased online in a retail store, as it is simply a matter of different, independent databases. The majority surveyed are faced with the challenge of updating their IT for Omnichannel. Not only is this time-consuming, but also often extremely costly. Essentially, retailers will gain ground by investing in performance-oriented databases, Webshops and analytics tools providing personalised customer contact." Retailers Linking Channels Most surveyed have already begun linking their channels. Several retailers offer cross-channel promotions and their customers can pick-up merchandise purchased online in a retail store ("Click & Collect"). Furthermore, the merchandise offered for sale and their prices are consistently the same. However still uncommon are retail stores offering products which can be purchased online as per the principle of "endless aisle." And, only a few retailers accept returns of items across all channels. The survey participants are especially hoping for increased turnover to offset stagnating sales in retail stores though it is debatable if Omnichannel customers can truely boost turnover in the short-term. Some of those surveyed support this theory, yet sceptics claim that Omnichannel users are, in any case, often loyal customers unlikely to significantly increase sales. Even if the sceptics turned out to be correct, modern structures and procedures would ensure that a customer's expectations are fulfilled, and their own brands empowered, leading to rising sales in the mid-term. Marcus Karten concludes the report's results as "Retailers are convinced that it pays off to embark on the path to Omnichannel despite all its challenges. Omnichannel organisations clearly have a competitive advantage compared to players with separated channels, due to combining the flexibility of E-Commerce with personal contact in a retail store." Mandatory Active Change Management Alongside a modern IT and cross-channel sales strategy, vertical thinking which is still so prevalent in many corporations needs to be abandoned. This involves revising internal incentive schemes. Until recently, they have often only dealt with the turnover within individual sales channels. The retailers have recognized that these structures are antiquated; however amending them takes time. "When discussing Omnichannel, most focus only on the technical side: How should the Web Shop look? What features does our App need to have? We have noticed from our participants' responses that significant changes in organisational structures are a prerequisite. Many retailers are indeed aware of this, yet they drag their feet when it comes to change management," remarked Marcus Karten. For the Omnichannel Report 2016, 20 managing directors from retail corporations from the fashion, beauty and FMCG industries took part in an online survey; 14 experienced retailers were interviewed by experts. The report can be downloaded free of charge at www.scm.arvato.com/omnichannel-report Arvato SCM Solutions: Arvato SCM Solutions is an innovative and international leading service provider in the field of supply chain management and e-commerce. Partners come together with industry specialists in the fields of Telecommunication, Hightech & Entertainment, Automotive|Bank|Insurance, Healthcare, Consumer Products and Publisher. More than 14,000 employees work together to provide practical and relevant solutions and services worldwide. Using the latest digital technology, Arvato develops, operates and optimizes complex global supply chains and e-commerce platforms, as the strategic growth partner for its customers. Arvato SCM combines the know-how of its employees with the right technology and appropriate business processes to measurably increase the productivity and performance of its partners. As leading European full-service e-commerce, omnichannel and retail logistics service provider; Arvato SCM Solutions has worked in the Consumer Products segment with world renowned fashion, beauty and FMCG brands for over 15 years. Arvato's brand-specific service portfolio covers retail logistics, omnichannel and the entire e-commerce process chain: development of online shops, frontend management, online marketing, B2B & B2C logistics and shipping including returns management as well as payments and accounting, customer service and e-commerce consulting. With 57 distribution hubs in Europe, Russia, Asia and the US, Arvato SCM Solutions provides the necessary scalability, flexibility and experience to give their customers the decisive competitive edge. About Salesforce Commerce Cloud: The Salesforce Commerce Cloud empowers retailers to unify customer experiences across all points of commerce, including web, social, mobile and store. From shopping to fulfillment to customer service, the Commerce Cloud delivers 1-to-1 shopping experiences that consistently delight customers, driving increased engagement, loyalty and conversion. With embedded predictive intelligence and a robust partner ecosystem, the Commerce Cloud delivers customer satisfaction and growth from planning to launch and beyond. About WHU - Otto Beisheim School of Management: WHU - Otto Beisheim School of Management is an internationally oriented and mainly privately financed Business School based in Vallendar and Düsseldorf. Founded in 1984, WHU is now one of the most renowned German Business Schools with an exceptional national and international reputation. WHU stands for "Excellence in Management Education" and pursues this goal in its three core areas of activity: academic programs, research, and transfer in the field of general management. This excellent standard has been certified by accreditations from AACSB, EQUIS and FIBAA as well as through leading positions in national and international rankings.
The Trend Toward Older Workers Being Supervised by Younger People can Lead to Negative Emotions Such as Anger, Fear and Disgust That Harm Company Performance, Finds New Study Co authored at Cambridge Judge Business School
News Article | December 19, 2016
A new study finds that the age gap between older workers and younger supervisors is linked to the frequency of emotions such as "anger, fear and disgust" among older subordinates, and that more frequent negative emotions of this type are associated with lower company performance in areas such as financial results, growth, efficiency, and return on assets. This is in part due to "emotion contagion" as the negative feelings evoked by such an age gap tends to spread throughout an organisation, says the study by academics in Britain and Germany published in the Journal of Organizational Behavior. The "age-inverse" findings are relevant to changing patterns of the modern workplace. Companies are retaining older employees longer due to demographic changes and the abandonment of early retirement schemes, as firms also have shifted from seniority- to merit-based promotion systems. As a result, increasing numbers of workers are being supervised by younger people. Negative emotions of older subordinates are triggered by "status incongruence" and a "violation of career norms" which get more painful as the age gap widens. This can harm organisational performance by hindering collaboration, depressing motivation and harming productivity. The study found, however, that the negative effect on company performance occurs only if subordinates express their feelings toward the supervisor; the effect is "neutralised" if emotions are suppressed. "Age differences between supervisors and older subordinates clearly matter, and not in a positive way," says study co-author Jochen Menges, University Lecturer in Organisational Behaviour at Cambridge Judge Business School and Professor of Leadership at WHU - Otto Beisheim School of Management in Germany. "We found that such age gaps can harm company performance by negatively influencing employee emotions. If the age gap is small, employees throughout a company are less likely to experience such negative emotions." The study - entitled "Younger supervisors, older subordinates: An organizational-level study of age differences, emotions, and performance" - is co-authored by Florian Kunze, Chair for Organisational Studies at the University of Konstanz in Germany, and by Jochen Menges of Cambridge Judge Business School. "As far as we know, this is the first study to link negative emotions of older subordinates to performance at the organisational level," Menges says. "The findings have clear practical implications for companies in managing these relationships." The study is based on survey responses by 7,802 employees at 61 companies in Germany, representing a wide range of industries including services, manufacturing and finance, along with human resources directors and 175 top managers at the companies - who rated their firm's performance in key operational and organisational performance measures relative to main competitors within the same industry in the same area. "Our findings put to question contemporary promotion practices that disregard age as a criterion for placing a person into a supervisory role," the study says. While the researchers do not question the effectiveness of merit-based promotion, "we do have evidence for some of the repercussions that companies are likely to face when moving away from traditional age structures and abandoning seniority-based promotion systems." Companies should therefore think carefully about how to avoid such pitfalls, including less emphasis on "career timetables" and "hierarchical thinking" so employees would respond less emotionally to age differences. The study's findings on emotion suppression were complex and nuanced. Whereas some previous studies found emotional suppression at the individual level to be a demanding and socially costly strategy, "we show that emotion suppression can be an effective strategy in circumstances that involve emotionally taxing social interactions." "This finding should not be taken to imply that organisations should promote cultures of emotional suppression," the study says. Instead, companies should "approach the challenges of age-inverse supervisory relationships in ways that benefit both the company at the organisational level and the employees at the individual level, rather than one or the other." Germany was a good country to conduct such a study on the consequences of demographic change in the workplace because it has one of the world's highest median ages (estimated at 46.8 in 2016). The age structure in German companies is therefore a potential projection for other industrialised countries such as the United States where the population is aging rapidly but has not reached Germany's median age level. Cambridge Judge Business School leverages the power of academia for real world impact to transform individuals, organisations and society. Since 1990, Cambridge Judge has forged a reputation as a centre of rigorous thinking and high-impact transformative education, situated within one of the world's most prestigious research universities, and in the heart of the Cambridge Cluster, the most successful technology entrepreneurship cluster in Europe. The School works with every student and partner or client organisation at a deep level, identifying important problems and questions, challenging and coaching people to find answers, and creating new knowledge. Cambridge Judge pursues innovation through inter-disciplinary insight, entrepreneurial spirit and collaboration. Cutting edge research is rooted in real-world challenges and students and clients are encouraged to ask excellent questions to create real-world change. Undergraduate, graduate and executive programmes attract innovators, creative thinkers, thoughtful and collaborative problem-solvers, and current and future leaders, drawn from a huge diversity of backgrounds and countries.
News Article | November 30, 2016
If it had been windier on November 8, then the election results might have looked very different, says research from Columbia Business School and Cambridge Judge Business School. A research paper titled Weather Affects Voting Decisions finds that the weather on Election Day affects voters' decisions. Specifically, when wind speed increases, voters seek safety, risk aversion, and the status quo - what psychologists call a "prevention-focus." In contrast, low winds shift voters toward greater change and the willingness to take a risk. "While many studies have looked at the impact that rain has on election results, none have looked at the impact that wind can have," says Jon Jachimowicz, a PhD candidate at Columbia Business School and co-author of the study. "Voters are influenced by not only the particular stances of political parties, candidates, or campaigns, but also by the environment on the day they make decisions." The research was co-authored by academics working in the United States, Great Britain, and Germany: Jachimowicz, Jochen Menges of Cambridge Judge Business School in Great Britain and the WHU - Otto Beisheim School of Management in Germany, and Adam Galinsky, Vikram S. Pandit Professor of Business at Columbia Business School. "Whether we know it or not, wind consistently affects how we vote in elections by appealing to the fundamental desire for either security or change," says Galinsky. The research examined the impact that wind speed had on voting behavior across one hundred years of US elections (1912-2012), ten years of Swiss referendums (2005-2014), and two crucial votes in Great Britain: the June 2016 "Brexit" decision to leave the European Union and the September 2014 vote in Scotland to remain part of the United Kingdom. The study focused on actual voting decisions, not on whether foul weather lowers voter turnout. "From a rational model of political behavior, voting on a windy or non-windy day should have no effect on election outcomes," says Menges. "The results suggest, however, that in elections that feature a choice between prevention- and promotion-oriented options, wind speed has consequences for the outcome." "While wind does influence voters' decisions, the research shows that the effect is admittedly small, impacting no more than 1% of the final vote," says Galinsky. "However, as we have seen recently, sometimes 1% can make the difference or be extremely meaningful; just look at the difference in the popular vote from the November 8 presidential election." The research was completed prior to Donald Trump's narrow win over Hillary Clinton in the presidential election, so it didn't specifically measure if President-Elect Trump, the change candidate, benefitted from low winds. But the closeness of the election, where a swing of just 110,000 votes in Pennsylvania, Michigan and Wisconsin could have changed the outcome, means that every factor, including wind, is worth watching in the future. To learn more about the cutting-edge research being conducted at Columbia Business School, please visit www.gsb.columbia.edu. Columbia Business School is the only world-class, Ivy League business school that delivers a learning experience where academic excellence meets with real-time exposure to the pulse of global business. Led by Dean Glenn Hubbard, the School's transformative curriculum bridges academic theory with unparalleled exposure to real-world business practice, equipping students with an entrepreneurial mindset that allows them to recognize, capture, and create opportunity in any business environment. The thought leadership of the School's faculty and staff, combined with the accomplishments of its distinguished alumni and position in the center of global business, means that the School's efforts have an immediate, measurable impact on the forces shaping business every day. To learn more about Columbia Business School's position at the very center of business, please visit www.gsb.columbia.edu.
Lichtenthaler U.,WHU - Otto Beisheim School of Management
Journal of Product Innovation Management | Year: 2011
In recent years, many firms have started to actively license out technology, either exclusively or in addition to applying the technology in their own products. While some pioneering firms have achieved substantial benefits from outlicensing, many others fear weakening their competitive position in the markets for their products by selling "corporate crown jewels." This paper addresses the effects of an integrated technology exploitation strategy, which refers to aligning technology licensing and product development, on a firm's financial performance, i.e., return on sales in the subsequent year. Drawing on a contingency perspective, the study further examines the moderating effects of four external contingency factors related to the appropriability regime and the technology markets in the relationship between an integrated strategy and firm performance. While the product markets refer to the markets for physical products, the technology markets refer to markets for disembodied technological knowledge. Quantitative analyses of new survey and financial data from 122 industrial firms with a one-year lag are presented, and they show a positive effect of an integrated technology exploitation strategy on subsequent firm performance. This positive effect is stronger under conditions that are characterized by effective patent protection, high technological turbulence, high transaction frequency in the technology markets, and strong competition in the technology markets. The main finding of the paper is that, due to interdependencies with a firm's product development activities, it is not beneficial to manage licensing as a stand-alone activity. Instead, integrated strategies help firms to overcome managerial difficulties and to capture value from open innovation. The results have major implications for both management and research into technology exploitation, licensing, open innovation, and technology markets. © 2011 Product Development & Management Association.
Busse C.,WHU - Otto Beisheim School of Management
Journal of Supply Chain Management | Year: 2010
This paper presents a procedure for confirmatory and exploratory research with a limited amount of secondary data. The methodology is exemplified by research on the innovation activities and performance of logistics service providers (LSPs), thereby extending the work of Wagner. A research hypothesis is derived, stating that the context of LSPs to innovation is significantly different from that of other service providers. Secondary data from the 2006-2008 Mannheim Innovation Panel, an annual survey on the innovation behavior of German firms, is assessed and found suitable to test that hypothesis. The χ2 test of independence is used to test the hypothesis. Multiple activity and performance indicators can be used as operationalizations that are later tested in parallel, with the help of the Bonferroni correction. Then, the distribution of categorical variables is recalculated, and multiple scenarios for missing values are taken into account. Empirical and critical χ2 values are computed, and the test result is aggregated. The findings indicate that the LSP context of innovation is indeed significantly different from that of other service providers. Those differences are then analyzed and interpreted. The results show that innovators among LSPs appear to have similar innovation benefits to non-LSPs, while for LSPs, innovation appears to be more costly. This could explain the lower share of innovation-active LSPs. The paper concludes by discussing the limitations of the methodology, and of the content-related findings. © 2010 Institute for Supply Management, Inc.™.
Weiss M.,WHU - Otto Beisheim School of Management
Journal of Product Innovation Management | Year: 2011
The effect of financial resource constraints on innovation team performance is ambiguous. On the one hand, the majority of scholars have argued that financial resource constraints have an inhibiting effect on innovation, whereas budgetary slack supports creativity and innovation. Consistent with this notion, in most conceptual models on the management of innovation projects, the availability of slack, or at least adequate (rather than constrained) resources represents an important success factor supporting innovation. On the other hand, popular parlance has it that sometimes "necessity is the mother of innovation," and literature in cognitive psychology suggests that resource constraints stimulate creativity and innovative behavior. Recent innovation literature indeed provides evidence that remarkable innovation outcomes can be achieved with constrained financial resources. Despite the rapidly growing research on success factors of innovation projects, and the high managerial relevance of budget questions, the influence of financial resource constraints has only very recently started to attract interest. The objective of the present study is to contribute to that research by investigating under what conditions financial resource constraints lead to innovation outcomes. Specifically, team climate for innovation is examined as a potentially important contingency variable of the relationship between financial resource constraints and innovation project performance. By explicitly focusing on team climate for innovation, factors of the work environment in innovation projects are addressed as influential boundary conditions for successfully innovating under financial resource constraints. The hypotheses are tested on a sample of 94 innovation project teams from a variety of industries. To ensure content validity and to avoid a possible common source bias, data from different respondents, i.e., team leaders, team members, and team external managers of the innovation projects, are used. Results of regression analyses show that there is no significant relationship between financial resource constraints and innovation project outcomes in terms of product quality and project efficiency. However, results show a significant interaction term of financial resource constraints and team climate for innovation in that team climate for innovation positively moderates the relationship between financial resource constraints and product quality as well as project efficiency. Thus, the findings of the present study contradict the widespread notion in innovation literature that financial resource constraints have a wholesale inhibiting effect on innovation, thereby providing a differentiated perspective on the relationship between financial resource constraints and innovation. On a practical level, the results of this study highlight a specific condition under which product developers can come up with more innovative solutions despite, or even because of, financial resource constraints. © 2011 Product Development & Management Association.
Reisinger M.,WHU - Otto Beisheim School of Management
International Journal of Industrial Organization | Year: 2012
This paper analyzes a two-sided market model in which platforms compete for advertisers and users. Platforms are differentiated from the users' perspective but are homogenous for advertisers. I show that, although there is Bertrand competition for advertisers, platforms obtain positive margins in the advertising market. In addition, platforms' profits can increase in the users' nuisance costs of advertising. As a general insight, I obtain that factors affecting competition in the user market in a well-known direction without externalities now have opposing effects due to competition in the advertiser market. The model can also explain why private TV platforms benefit if their public rivals are regulated to advertise less-a result at odds with models in which there is no competition for advertisers.
Lichtenthaler U.,WHU - Otto Beisheim School of Management
Technovation | Year: 2010
In light of the recent economic crisis, many industrial firms attempt to capture additional value from their technologies by means of open innovation strategies. Besides acquiring external technology, many firms therefore increasingly try to license their own technology to other firms either exclusively or in addition to its application in their own products. This article shows that technology licensing offers important strategic benefits beyond generating licensing revenues, which underscore the need for an integrated management of technology licensing activities. Therefore, this article extends the concept of job-related markets that was recently developed in the managerial literature. A 'job' is the fundamental problem that a customer needs to resolve in a particular situation. Managers may transfer this job-related understanding to technology licensing activities because the right 'job' for a technology may be outside a firm's boundaries, and it may help firms to identify additional licensing opportunities. On this basis, the article presents the concept of an integrated technology exploitation roadmap, which allows firms to use the job-related markets to integrate technology licensing in their strategic planning processes. An example of a machinery firm shows how this roadmap may contribute to strengthening a firm's licensing business. © 2010 Elsevier Ltd. All rights reserved.
Lichtenthaler U.,WHU - Otto Beisheim School of Management
Research Policy | Year: 2010
Industrial firms increasingly attempt to license their technologies apart from applying them in their own products. Because of the imperfections in technology markets, an active approach towards technology licensing does not automatically result in licensing transactions. To balance prior research, which has focused on licensing transactions as the outcome of licensing intentions, we take a contingency view to analyze how characteristics of a firm's innovation ecosystem determine different strategic types of licensing. Specifically, we distinguish proactive licensing, which refers to identifying recipients for technology transactions, and reactive licensing, which relates to offering licenses to infringers of a firm's intellectual property. Survey data show that environmental antecedents concerning appropriability, i.e., patent protection and technological turbulence, and determinants regarding technology markets, i.e., transaction frequency and competitive intensity, have different effects on proactive and reactive licensing. On this basis, the article has major implications for research into technology licensing, markets for technology, and open innovation. © 2009 Elsevier B.V. All rights reserved.
Schmoltzi C.,WHU - Otto Beisheim School of Management |
Wallenburg C.M.,WHU - Otto Beisheim School of Management
Journal of Supply Chain Management | Year: 2012
Various market challenges have led logistics service providers (LSPs) to engage in horizontal cooperations with each other, while maintaining their general legal independence. As an idiosyncrasy, horizontal cooperations entail the opposing forces of competition and cooperation, also referred to as "co-opetition" (Bengtsson and Kock 2000; Tsai 2002). This constellation facilitates the development of opportunism and conflicts, which raise the risk of relationship failure. Adequate governance mechanisms provide a basis to avoid failure and drive cooperation success. This paper focuses on the postformation cooperation management phase and identifies the specific effects that operational governance has on cooperation commitment and cooperation effectiveness. Based on survey data from 226 LSP cooperations, we show that both formal and social governance mechanisms have a substantial performance effect. In this regard, the results differ fundamentally from studies on vertical buyer-supplier relationships. With respect to the specific setup of the cooperation, a differentiated view is provided. Results indicate that two types of cooperation complexity are of relevance: organizational complexity and strategic complexity. The former drives the relevance of formal control; the latter increases the relevance of both formal and social control for cooperation success. © 2012 Institute for Supply Management, Inc.