Backing outsiders: selection strategies for discontinuous innovation

A key challenge in managing innovation is to explicitly identify ways to improve an organization's performance with regard to discontinuous innovation. However, discontinuous innovation does not fit the existing ‘frame of reference’ and hence requires a reframing of the traditional ways of innovating within the organization. More specifically, previous research shows that practices that work well in the context of incremental innovation do not work in the context of discontinuous innovation. Thus, the aim of this paper is to explore innovation practices that enable organizations to select innovation projects, which are ‘outside the box’ of its prior experience, i.e. are discontinuous in nature. Building on the experience of more than 150 firms across 12 countries, we have identified nine innovation practices for the selection of discontinuous innovation; these can be grouped into three clusters: enable, engage and experience. In sum, we identify that an organization needs to acknowledge that its choice to engage in discontinuous innovation will have consequences for the innovation practices chosen to select which discontinuous projects to carry forward.     

Economic Evaluation and Optimization of the Degree of Automation in Insurance Processes

In the context of value and customer orientation there are various requirements concerning the process – especially in insurance companies: processes are meant to be standardized, automated, and flexible. It is in question whether a fast and cheap automated processing is preferred to manual handling. For which claims and which process steps is it of economic value to have the flexibility and the competence and ability to solve problems of human operators at your disposal? Various combinations, representing different degrees of automation, are possible. The different degrees of automation for the processing of an insurance claims are compared and resulting cash flows are determined. It is essential to include all consequences that can be attributed to a single process and to consider customer reactions and restrictions to the capacity of processing. Instead of using heuristic rules to decide on automation in practice, here the decision is flexible and depends on the given situation. Viewing an aggregated number of insurance claims it is possible to deduce information about the performance of the process. The model is exemplarily illustrated with help of a part of the process for handling own damage glass claims.     

Elektromobilität braucht intelligente Förderung

Die EU-Kommission sieht in ihrer Roadmap 2050 vor, ab 2050 keine Fahrzeuge mehr mit Verbrennungsmotoren in den St?dten zuzulassen. Der Verbrennungsmotor als Antrieb für Kraftfahrzeuge muss entsprechend mittelfristig durch andere Antriebsformen abgel?st werden. Dies geschieht nicht reibungslos und macht eine intelligente F?rderung notwendig. Wie gro? die Bereitschaft in der Bev?lkerung ist, auf Elektromobilit?t umzusteigen, wird von den Autoren anhand eines Experiments gezeigt.     

International Islamic funds

Internationally‐investing Islamic equity funds from developed Islamic and non‐Islamic markets perform in general similar to the market. However, analyzing different market conditions, we provide evidence that funds domiciled in Islamic markets outperform their peers and funds from non‐Islamic markets during market turmoil, irrespective of the applied performance measurement model. We suggest that this outperformance is owed to the expertise of fund managers from developed Islamic markets who operate in a financial environment that is driven by Islamic principles. Our results are robust with respect to the standard Fama‐French three‐factor and four‐factor models as well as to the novel five‐factor model.     

Will They Stay or Will They Go? Simulating the Dynamics of Single‐Holder Farms in a Dualistic Farm Structure in Slovakia

This paper investigates the dynamic interplay between farm exit and entry of single‐holder farms (SF) in a dualistic farm structure in the Nitra region of the Slovak Republic. Our focus is on economic and noneconomic reasons for farm exit. The impact of varying both the likelihood of succession and the initial farm operator age distributions is studied. An agent‐based simulation model of structural change in agriculture is applied, which brings together farm‐internal and ‐external determinants and creates a set of endogenous adjustment reactions. We show that the stepwise introduction of direct payments of the Common Agricultural Policy in Slovakia has a strong impact on its structural development. In the short‐ to medium‐term, the dualistic farm structure together with a specific age structure of farms still persists as a response to the policy. The phasing‐in of payments persuades SF to stay and potential successors to enter. In the longer run, the initially heterogeneous farm structure becomes increasingly homogeneous toward larger SF. The prevalence of small SF in the medium‐ to long‐term is not necessarily a given. This may lead decision makers to reconsider the role of individual farms in rural development. Dans le présent article, nous avons étudié la relation entre l'entrée en agriculture de fermes à propriétaire unique et leur sortie dans un contexte d'agriculture dualiste dans la région de Nitra, en Slovaquie. Nous nous sommes concentrés sur les raisons économiques et non économiques qui motivent la sortie. Nous avons étudié l'impact liéà la possibilité de relève et à la répartition par âge des agriculteurs. Pour évaluer le changement structurel en agriculture, nous avons utilisé un modèle de simulation multi‐agent qui réunit les facteurs internes et externes et crée un ensemble de réactions d'adaptation endogènes. Nous avons montré que l'introduction progressive des paiements directs accordés dans le cadre de la Politique agricole commune en Slovaquie a des répercussions considérables sur son développement structurel. À court et à moyen termes, l'agriculture dualiste, combinée à la structure de l'âge des exploitations agricoles, demeure une réaction à la politique en place. La mise en place progressive des paiements persuade les exploitations à propriétaire unique de demeurer dans le secteur et encourage les successeurs potentiels à y entrer. À plus long terme, la structure agricole qui était hétérogène au départ devient de plus en plus homogène et compte de plus grandes fermes à propriétaire unique. À court et à moyen termes, la prévalence de petites fermes à propriétaire unique ne va pas nécessairement de soi. Cette situation pourrait amener les décideurs à réexaminer le rôle des exploitations individuelles dans le développement rural.     

The relationship between works councils and firms’ further training provision in times of technological change

Participating in further training is strategically important for employees to ensure their employability. Particularly for employees in low-skilled jobs, works councils — firm-level organizations that represent employees — constitute an important employee advocacy instrument in European countries, such as France and Germany. With comprehensive co-determination rights, works councils can influence firms’ hiring policies, job design and career paths (e.g. promotions). Using German firm-level data, we empirically investigate the influence of works councils on firms’ training provision for employees in firms below and above the industry level of technology. The results show that works councils have a positive effect on the percentage of employees in general, and of employees in low-skilled jobs in particular, participating in training, but only for firms below the industry level of technology. These results show the importance of works councils in supporting training in such firms and enhancing the employment prospects of employees in low-skilled jobs. In contrast, firms above the industry level of technology invest in training with or without a works council, indicating that the training interests of employers and employees are aligned.     

Trust during retail encounters: A touchy proposition

Adopting an interpersonal communication perspective, this study examines the propositions that a salesperson's touch increases trust, which increases product evaluations and purchase intention. These relationships are evaluated in a contact and non-contact culture, with need for touch (NFT) examined as an additional moderator. An exploratory series of in-depth interviews provides an initial understanding of these relationships, followed by a 2 (touch/no touch condition) × 2 (consumers in France/Germany) experiment with wine serving as the example category. The findings indicate that touch does not uniformly instill trust in customers. Instead a salesperson's touch relates to greater trust only when consumers have an inherent NFT or when they are from a culture where personal touching behavior is less prevalent. Trust, in turn, relates positively to evaluations of product attractiveness, quality, and to purchase intention.     

Social Media in Organizations: Leveraging Personal and Collective Knowledge Processes

By using social media, many companies try to exploit new forms of interaction, collaboration, and knowledge sharing through leveraging the social, collaborative dimension of social software. The traditional collective knowledge management model based on a top-down approach is now opening up new avenues for a bottom-up approach incorporating a more personal knowledge management dimension, which could be synergized into collective knowledge using the social-collaborative dimension of social media. This article addresses the following questions: (1) How can social media support the management of personal and collective knowledge using a synergetic approach? (2) Do the personal and collective dimensions compete with each other, or can they reinforce each other in a more effective manner using social media?

Our findings indicate that social media supports both the personal and collective dimensions of knowledge, while integrating a social collaborative dimension. The article introduces a framework that classifies social software into four categories according to the level of interaction and control. With certain tools, individuals are more in control. With other tools, the group is in control, resulting in a higher level of interaction and a diversity of knowledge and mindsets brought together. However, deploying and adopting these new tools in an organizational context is still a challenging task for management, owing to both organizational and individual factors.     

Zuhause im Netz

This study focuses on the relevance of the Internet to everyday life and the factors that influence Internet usage, based on an investigation of typical patterns of use and motives for use. The empirical basis of the study consists of 102 in-depth interviews with German Internet users aged 14–67 years. The sample was selected by applying the method of theoretical saturation, while the theoretical background was based on the uses-and-gratifications approach and the sociology of Bourdieu. The findings demonstrate that the Internet is indeed integrated in the everyday lives of the interviewees and that most of them cannot imagine life without the Internet. The interviews also reveal that the use of online applications varies with age, sex and social position: Whereas older online users and those with a small social network and low motivation for professional advancement use the Internet to satisfy mainly day-to-day needs (facilitating everyday life, contacting relatives and establishing strong ties), younger people (those under 30 years of age), men and members of the workforce (especially the self-employed and executives) use a wider variety of online applications.     

A transshipment model for distribution and inventory relocation under uncertainty in humanitarian operations

The number of disasters and humanitarian crises which trigger humanitarian operations is ever-expanding. Unforeseen incidents frequently occur in the aftermath of a disaster, when humanitarian organizations are already in action. These incidents can lead to sudden changes in demand. As fast delivery of relief items to the affected regions is crucial, the obvious reaction would be to deliver them from neighbouring regions. Yet, this may incur future shortages in those regions as well. Hence, an integrated relocation and distribution planning approach is required, considering current demand and possible future developments.For this situation, a mixed-integer programming model is developed containing two objectives: minimization of unsatisfied demand and minimization of operational costs. The model is solved by a rolling horizon solution method. To model uncertainty, demand is split into certain demand which is known, and uncertain demand which occurs with a specific probability. Periodically increasing penalty costs are introduced for the unsatisfied certain and uncertain demand. A sensitivity analysis of the penalty costs for unsatisfied uncertain demand is accomplished to study the trade-off between demand satisfaction and logistical costs. The results for an example case show that unsatisfied demand can be significantly reduced, while operational costs increase only slightly.