Modern Monetary Theory: The Right Compass for Decision-Making

In the November/December 2021 issue of Intereconomics, Françoise Drumetz and Christian Pfister examine Modern Monetary Theory (MMT) and approach it from the policy consequences that would follow. This paper is a reply to Drumetz and Pfister. It restates the core of MMT and offers some suggestions for central banks. Theories are explanations of what we see, and MMT describes money creation and destruction. Hence, MMT cannot be and is not a political manifesto. In contrast to most other theories of money, MMT is falsifiable in its core statements, which are based on a balance sheet approach to macroeconomics. Since many central banks already educate the public about the creation of modern money through bank lending, it would be most welcome if they would do the same for the creation of modern money through government spending. Here, MMT and central bankers can find common ground to move forward and leave the theory of loanable funds and that of the money multiplier behind.

     

Exposure to workplace bullying and negative gossip behaviors: Buffering roles of personal and contextual resources

This study adds to business ethics research by investigating how employees' exposure to workplace bullying might spur their negative gossip behaviors, as well as how this effect might be buffered by their access to two personal resources (religiosity and innovation propensity) and two contextual resources (work meaningfulness and trust in top management). Survey data collected among Canadian-based employees who work in the religious sector reveal that workplace bullying increases the likelihood that they spread negative rumors about other organizational members, but this effect is weaker when employees (1) can draw from their religious faith, (2) are motivated to generate innovative ideas, (3) derive meaning from their work, and (4) have confidence in the trustworthiness of top management. For management scholars and practitioners, this study thus pinpoints different resources that diminish the risk that workplace bullying infuses work environments with even more negative energy, as might occur if bullying spills over into additional, negative gossip behaviors.     

Forschung und Innovation: Wo steht Deutschland?

Aufwendungen für Forschung und Entwicklung werden im Hinblick auf die internationale Wettbewerbsf?higkeit eines Wirtschafts- und Technologiestandorts als besonders bedeutsam eingesch?tzt. Wie l?sst sich der Zusammenhang zwischen Forschung und wirtschaftlicher Entwicklung empirisch nachweisen? Welchen Rang nimmt Deutschland im internationalen Vergleich der Forschungs- und Innovationsaktivit?ten ein? Welche Handlungsoptionen ergeben sich für die Wirtschaftspolitik?     

Premiummarken im Sortiment des Einzelhandels — Erscheinungsformen und Entwicklungsperspektiven

Das Führen von Premiummarken bietet dem Einzelhandel unter den aktuellen Marktbedingungen nicht nur M?glichkeiten einer individuellen Akzentuierung und Differenzierung von Sortimenten, sondern auch interessante Entwicklungsperspektiven.Wesentliche Herausforderungen bestehen dabei in einer zielgruppenbezogenen Entwicklung von Premiummarkenstrategien sowie in einer st?rkeren Professionalisierung der Markenführung.     

How price complexity takes its toll: The neglected role of a simplicity bias and fairness in price evaluations

Marketing managers commonly employ complex price plans. Surprisingly, limited and conflicting evidence reports how customers perceive and react to complex prices. This study examines perceptions about price complexity and shows that customers tend to prefer simple prices. Two experimental studies show that perceived price complexity negatively affects customer perceptions of price fairness and influences product choice because customers negatively evaluate the transparency of the firm's pricing practices and infer higher total prices. Customers comparing alternate offerings may therefore prefer simple over complex prices, even when the latter are less expensive. Study results suggest limiting price plan variations positively affects customer inferences about transparency and fairness, and thus customer choice.     

Mittelstand und EU-Osterweiterung

Viele Umfragen deuten auf eine massive Abwanderung des deutschen Mittelstands in die neuen EU-Beitrittsl?nder hin. Inwieweit kann dieser Exodus empirisch untermauert werden? In welchen Aktivit?ten engagieren sich die deutschen mittelst?ndischen Unternehmen in den Beitrittsl?ndern? Welche Chancen und Risiken erwarten sie von der Osterweiterung?     

A Network-based Approach on Opportunity Recognition

This paper argues that individuals differ in terms of their perception of opportunities because of the differences between the networks they are embedded in. We focus on two aspects of individuals embeddedness in networks, that is, (1) individuals belonging to residential areas that are more or less likely to be characterized by network cohesion, and (2) individuals differential access to network contacts based on the level of human capital they hold. Our analyses show that the nature of ones residential area influences the perception of entrepreneurial opportunities. Further, we find a positive effect for education, i.e., people with a higher educational level are more likely to perceive entrepreneurial opportunities compared to those with a lower educational level.     

The Internationalization of Small and Medium-Sized Firms

This paper contributes to the existing research by integrating the notions of organizational learning and entrepreneurial orientation into the body of international entrepreneurship. Our primary framework combines learning theory and the new venture theory of internationalization to study the extent to which small and medium-sized companies engage in international activities. We found that the firms’ international learning effort and entrepreneurial orientation are positively associated with internationalization intent whereas domestic learning effort is negatively related with internationalization intent. Overall, our results suggest (1) that intensive knowledge renewal and exploitation regarding foreign markets and the internationalization process itself may increase internationalization by affecting the perceptions of opportunities offered by further international expansion, and (2) that firms with an entrepreneurial mindset may be more likely to develop a long-term, substantial presence in the international arena, compared to firms that are more reactive or conservative.