Order aggressiveness and order book dynamics

In this paper, we study the determinants of order aggressiveness and traders’ order submission strategy in an open limit order book market. Applying an order classification scheme, we model the most aggressive market orders, limit orders as well as cancellations on both sides of the market employing a six-dimensional autoregressive conditional intensity model. Using order book data from the Australian Stock Exchange, we find that market depth, the queued volume, the bid-ask spread, recent volatility, as well as recent changes in both the order flow and the price play an important role in explaining the determinants of order aggressiveness. Overall, our empirical results broadly confirm theoretical predictions on limit order book trading. However, we also find evidence for behavior that can be attributed to particular liquidity and volatility effects.

Der Relaunch des Journals für Betriebswirtschaft

Ohne Zusammenfassung     

Near‐sourcing UK apparel: value chain restructuring,productivity and the informal economy

Fast fashion's emphasis on quick response production and supply chain management is at the basis of renewed growth in UK apparel manufacturing. This article shows how increasing pressure from lead firms has resulted in manufacturers maintaining profit levels, mainly, through informal subcontracting and informal employment, as opposed to increasing productivity.     

The Social Network Position of Lead Users

The field of lead user research has seen a great deal of attention from academics and practitioners alike. However, we still lack a full understanding of the nature of users with high potential for innovation. In this paper, we employ a social network perspective on lead users. Increasing the realism of our research in three empirical studies with different empirical settings and methods, we provide robust evidence that lead users have a distinctive social network position: They exhibit an unusually high level of “betweenness centrality,” meaning that they are positioned as bridges between different social groups. This finding has two major implications for lead user theory. First, it consolidates seminal conceptual work on lead users and their embeddedness in social networks. And second, the findings extend and validate prior work on the social network perspective of lead users by combining theoretical insights from cognitive psychology, research on creativity, and network theory. As the social network positions of individuals can be mapped quickly and at low cost with modern Web mining tools, our findings may point to a new and readily applicable approach for the efficient and effective identification of lead users in real‐life projects, an aspect that is usually emphasized as the most crucial activity in lead user projects.     

Analyzing interest rate risk: Stochastic volatility in the term structure of government bond yields

We propose a Nelson–Siegel type interest rate term structure model where the underlying yield factors follow autoregressive processes with stochastic volatility. The factor volatilities parsimoniously capture risk inherent to the term structure and are associated with the time-varying uncertainty of the yield curve’s level, slope and curvature. Estimating the model based on US government bond yields applying Markov chain Monte Carlo techniques we find that the factor volatilities follow highly persistent processes. We show that yield factors and factor volatilities are closely related to macroeconomic state variables as well as the conditional variances thereof.     

Die heimlichen Entscheider

Facing the spread and importance of information technology, the lack of empirical studies of IT journalists must be considered a research gap. The small group of IT journalists includes important gatekeepers in the IT market, who play a major part in determining the success and failure of IT products. To examine the powerful position derived from this role is the central aim of this study: How do IT journalists in Germany perceive their influence on buyers and users of IT products? How do they perceive their influence on the IT industry? Based on an online survey of 102 IT journalists in Germany, the study measures subjective perceptions of effects on the general audience and the industry. The findings indicate that IT journalists view themselves as influencing consumer decisions of the general audience as well as corporations’ decisions in product development. However, these perceptions of effects are not related to (1) the audience size of the IT medium, or to journalists’ images of (2) the audience and (3) the IT industry. The perception of their own influence seem to be commonplace among IT journalists, independent of the power of media outlets and particular professional perceptions. The accuracy of journalists’ perceptions of effects and their normative implications are discussed.     

Caste and Religion-Based Wage Discrimination in the Indian Private Sector: Evidence from the Indian Human Development Survey

Using data from the Indian Human Development Survey, we examine evidence of caste and religion-based discrimination in the Indian private and public sector. Both Dalits and Adivasis show significant results of discrimination in the private sector, and benefit disproportionately from working in the public sector. This is strong evidence that at least some of the affirmative action policies in the public sector are proving effective. The policy implications are relevant: should similar affirmative action policies be implemented in the private sector? Further, this research suggests a path for further research to understand why protected castes do not benefit from affirmative action programs to the same extent as Dalits and Adivasis.     

Value Creation by Toolkits for User Innovation and Design: The Case of the Watch Market

This study analyzes the value created by so-called "toolkits for user innovation and design," a new method of integrating customers into new product development and design. Toolkits allow customers to create their own product, which in turn is produced by the manufacturer. In the present study, questions asked were (1) if customers actually make use of the solution space offered by toolkits, and, if so, (2) how much value the self-design actually creates. In this study, a relatively simple, design-focused toolkit was used for a set of four experiments with a total of 717 participants, 267 of whom actually created their own watches. The heterogeneity of the resulting design solutions was calculated using the entropy concept, and willingness to pay (WTP) was measured by the contingent valuation method and Vickrey auctions. Entropy coefficients showed that self-designed watches vary quite widely. On the other hand, significant patterns still are visible despite this high level of entropy, meaning that customer preferences are highly heterogeneous and diverse in style but not completely random. It also was found that consumers are willing to pay a considerable price premium. Their WTP for a self-designed watch exceeds the WTP for standard watches by far, even for the best-selling standard watches of the same technical quality. On average, a 100% value increment was found for watches designed by users with the help of the toolkit. Taken together, these findings suggest that the toolkit's ability to allow customers to customize products to suit their individual preferences creates value for them in a business-to-consumer (B2C) setting even when only a simple toolkit is employed. Alternative explanations, implications, and necessary future research are discussed.     

Smart Products: Conceptual Review,Synthesis, and Research Directions*

Smart products have received increasing attention from researchers and practitioners alike. One limitation of the existing literature, however, is that the term is often used as a blanket term and that there is no consensus on what a smart product actually is. Because different studies rely on differing conceptualizations, the current body of knowledge is scattered and lacks a uniform language and conceptual boundaries. Specifically, existing research has subsumed inherently different products under one collective term, has relied on a multitude of ad hoc criteria to define smart products or has conflated smart products with the services they render and/or the wider ecosystem, in which they operate. These developments limit the systematic advancement of the field and impede the integration of the smart product concept into related concepts such as the Internet of Things. To address these issues, this article provides an extensive analysis of the status quo of the field, with the goal of developing a common language and comprehensive conceptualization of smart products. First, existing studies on smart products were systematically reviewed across contributing disciplines and supplemented with a bibliometric analysis that allowed for a deeper understanding of the smart product concept within and across disciplines. This analysis revealed an initial set of 16 capability-based criteria that are currently applied to conceptualize smart products. Second, based on a systematic coding procedure, these criteria were synthesized and organized within a comprehensive framework delineating four distinct product archetypes for the digital age: (1) Digital, (2) Connected, (3) Responsive, and (4) Intelligent. Third, three major conceptual themes that arise from this framework are identified and possibilities for future research are pointed out. In sum, this work contributes to the literature by improving the understanding of smart products as an epistemic object and by laying the ground for more cumulative research endeavors.     

Same Same But Different: Dialects and Trade

Language is a strong and robust determinant of international trade patterns: Countries sharing a common language trade significantly more with each other than countries using different languages, holding other factors constant. In this article we present the first analysis of the effect of language on trade in an intra‐national context. Analyzing unique data for a single‐language country, Germany, we find that similarities in the local dialect have a significantly positive impact on regional trade. We interpret this finding as evidence for the trade‐promoting effect of culture, because linguistic similarities likely reflect cultural ties across regions, rather than lower costs of communication or similar institutions.