Pay for performance does not always increase performance

Pay for performance can have a positive or a negative influence on actual performance. The aim of this study was to give an explanation for this contradiction.We demonstrated that the variability of the payment can act as a stressor. According to the transactional model of stress, the influence on performance depends on the subjective interpretation of the variability as challenge or threat. Therefore we manipulated the degree of variability. The data showed decreasing performance for participants who preferred less-variable payments. They performed better under a less-variable rather than more-variable payment. The participants who preferred more-variable payment schemes showed the opposite pattern. These participants showed a higher performance under a more-variable rather than less-variable payment scheme.

Dynamische Fähigkeiten und Unternehmenserfolg: Untersuchung des Mediationseffekts der Unternehmensinnovativität

Veränderung ist eine Konstante im heutigen unternehmerischen Wettbewerb - sei es eine Veränderung der Kundenbedürfnisse, eine Veränderung im Sinne des technologischen Fortschritts oder eine Veränderung des Wettbewerberumfelds. Dadurch werden Unternehmen kontinuierlich vor die Herausforderung gestellt, ihre unternehmerische Wertschöpfung regelmässig an die jeweilige Veränderung anzupassen. Nur wenn diese Anpassung gelingt, können Unternehmen einen nachhaltigen Unternehmenserfolg erzielen. Für die Anpassung der unternehmerischen Wertschöpfung ist ein abgestimmtes Set an Fähigkeiten erforderlich. So müssen Unternehmen zunächst in der Lage sein, Veränderung in den verschiedenen Dimensionen – Kunden, Technologie, Wettbewerber – zu erkennen. Anschliessend müssen Unternehmen aus der erkannten Veränderung angemessene Handlungskonzepte ableiten können, anhand derer die unternehmerische Wertschöpfung angepasst werden kann. Schliesslich müssen Unternehmen über Fähigkeiten verfügen, die Handlungskonzepte realisieren zu können. Diese drei Arten von Fähigkeiten bilden das Grundgerüst des Konzepts dynamischer Fähigkeiten („Dynamic Capabilities“) nach David J. Teece. Mit dem Konzept der Rekonfiguration unternehmerischer Wertschöpfung anhand dynamischer Fähigkeiten hat Teece eine Möglichkeit geschaffen, nachhaltigen Unternehmenserfolg in veränderlichen Märkten zu erklären. Durch das Konzept wird allerdings noch nicht die Frage beantwortet, wie sich die Rekonfiguration konkret manifestiert und zum Unternehmenserfolg beiträgt. In der vorliegenden Untersuchung wird eine Antwort auf diese Frage entwickelt. Es wird die These aufgestellt und überprüft, nach der die dynamischen Fähigkeiten positiv auf die Unternehmensinnovativität wirken. Als Resultat der verbesserten Unternehmensinnovativität sollten Unternehmen dann einen nachhaltigen Erfolg erzielen können. Dazu werden im ersten Teil der Untersuchung (Kapitel 1-4) die Forschungsfragen aus der Literatur abgeleitet, und es werden die zu überprüfenden Hypothesen entwickelt. Im zweiten Teil (Kapitel 5-9) werden zunächst die Ergebnisse einer qualitativen Vorstudie vorgestellt. Danach folgen die Erläuterungen der Operationalisierungen sowie der Untersuchungsmethodik. Im Anschluss werden die Ergebnisse der quantitativen Untersuchung präsentiert und erläutert. Abschliessend werden die Ergebnisse kritisch diskutiert und Schlussfolgerungen für die Forschung sowie die unternehmerische Praxis abgeleitet.

Using negotiated budgets for planning and performance evaluation: An experimental study : an experimental study

Budgets are often simultaneously used for the conflicting purposes of planning and performance evaluation. While economic theory suggests that firms should use separate budgets for conflicting purposes this contrasts with existing evidence that firms rarely do so. We address two open questions related to these observations in an experiment. Specifically, we investigate how a planning task that is in conflict with the performance evaluation task affects behavior in budget negotiations and their outcomes. Additionally, we analyze whether a single budget can be effectively used for both purposes compared to two separate budgets. We develop theory to predict that adding a planning task that is in conflict with the superior’s performance evaluation task increases the subordinate’s cooperation in and after the negotiation of a performance evaluation budget. Moreover, we predict that subordinate cooperation increases even more when the superior is restricted to use a single budget for both purposes. Our results broadly support our hypotheses. Specifically, we find that when budgets are used for both planning and performance evaluation, this increases the subordinate’s budget proposals during the negotiation and his performance after the negotiation. These effects tend to be even larger when the superior is restricted to a single budget rather than separate budgets for planning and performance evaluation, particularly with respect to subordinate performance. In our experimental setting, the benefits of increased subordinate cooperation even more than offset the loss in flexibility from the superior’s restriction to a single budget. The results of this study add to the understanding of the interdependencies of conflicting budgeting purposes and contribute to explain why firms often use a single budget for multiple purposes.

The Evolution of Routines under flexible Information Technology

Many technological developments of the past two decades come with the promise of greater IT flexi-bility, i.e. greater capacity to adapt IT. These technologies are increasingly used to improve organiza-tional routines that are not affected by large, hard-to-change IT such as ERP. Yet, most findings on the interaction of routines and IT stem from contexts where IT is hard to change. Our research ex-plores how routines and IT co-evolve when IT is flexible. We review the literatures on routines to sug-gest that IT may act as a boundary object that mediates the learning process unfolding between the ostensive and the performative aspect of the routine. Although prior work has concluded from such conceptualizations that IT stabilizes routines, we qualify that flexible IT can also stimulate change because it enables learning in short feedback cycles. We suggest that, however, such change might not always materialize because it is contingent on governance choices and technical knowledge. We de-scribe the case-study method to explore how routines and flexible IT co-evolve and how governance and technical knowledge influence this process. We expect to contribute towards stronger theory of routines and to develop recommendations for the effective implementation of flexible IT in loosely coupled routines.

Dear Brand, Please Help me to Become a True-Man Out of the Truman: The Role of Brand Authenticity

Although brand authenticity is gaining increasing interest in academia and managerial practice, empirical studies on its contribution to the branding literature are still limited. The authors therefore conceptually and empirically examine the emergence and outcomes of perceived brand authenticity (PBA). A prior multi-phase scale development process resulted in a 17-item PBA scale to measure its four dimensions of credibility, integrity, symbolism, and longevity. Brand authenticity perceptions are influenced by indexical, existential, and iconic cues, whereby the latter’s influence is moderated by consumers’ level of marketing skepticism. Further, PBA increases emotional brand attachment. This relationship is particularly strong for consumers with a high level of self-authenticity. In addition, PBA effects are stronger in a North American market context compared to a European context.

“Therapeutic Advertising”: When Do Female Consumers Really Benefit?

This research examines whether female consumers benefit from brand strategies that attempt to decrease their self-discrepancies by setting more realistic ideals (i.e., therapeutic advertising, such as Body Shop, Aerie, and Always). The results of our preliminary study reveal that therapeutic advertising leads to stronger self-conscious emotions than idealistic advertising. More specifically, it leads to stronger emotions of both pride and shame. However, the latter only holds true for female consumers low in self-liking and high difficulties in abandoning unattainable goals. Female consumers who like themselves and are able to abandon unattainable goals do not feel more ashamed when being exposed to therapeutic advertising compared to idealized advertising. These findings have implications for marketing managers and policy makers.

Brand Authenticity: An Integrative Framework and Measurement Scale

This article develops an integrative framework of the concept of perceived brand authenticity (PBA) and sheds light on PBA’s (1) measurement, (2) drivers, (3) consequences, as well as (4) an underlying process of its effects and (5) boundary conditions. A multi-phase scale development process resulted in a 15-item PBA scale to measure its four dimensions of credibility, integrity, symbolism, and continuity. PBA is influenced by indexical, existential, and iconic cues, whereby the latter’s influence is moderated by consumers’ level of marketing skepticism. Results also suggest that PBA drives brand choice likelihood through self-congruence for consumers high in self-authenticity.

Brand Authenticity: An Integrative Framework and Measurement Scale

Although brand authenticity is gaining increasing interest in consumer behavior research and managerial practice, literature on its measurement and contribution to branding theory is still limited. This article develops an integrative framework of the concept of brand authenticity and reports the development and validation of a scale measuring consumers' perceived brand authenticity (PBA). A multi-phase scale development process resulted in a 15-item PBA scale measuring four dimensions: credibility, integrity, symbolism, and continuity. This scale is reliable across different brands and cultural contexts. We find that brand authenticity perceptions are influenced by indexical, existential, and iconic cues, whereby some of the latters' influence is moderated by consumers' level of marketing skepticism. Results also suggest that PBA increases emotional brand attachment and word-of-mouth, and that it drives brand choice likelihood through self-congruence for consumers high in self-authenticity.

Service Brand Relationship Quality: Hot or Cold?

Customers’ long-term brand relations are crucial drivers of a service brand’s sustainable competitive advantage. This research empirically examines the quality of customer-service brand relationships in the context of an airline’s frequent flyer program. The authors show that service brand relationship quality (BRQ) involves both a hot (based on emotions) and a cold (based on objectrelevant beliefs) component. They find that these two components have different implications for a service brand’s performance and are at least partially driven by different antecedents whose relative importance changes over time. Specifically, cold BRQ is important for word-of-mouth behavior and is strongly driven by partner quality (i.e., the generalized assessment of the brand in its role as a relationship counterpart). Hot BRQ, on the other hand, has a stronger impact on willingness to pay a price premium and consideration set size. In early stages of a customer-brand relationship hot BRQ is more strongly driven by self-congruence (i.e., consumer’s perception of the fit between his/her self and the brand’s personality), in later stages partner quality becomes more relevant. The authors discuss the implications of their findings for the development of BRQ and the implementation of alternative growth strategies in a services context.

Exakte Messung der Zahlungsbereitschaft von Kunden als Erfolgsfaktor des Preismanagements

Stefanie Kisgen, Anne Dresen, Werner G. Faix

How Should Consumers’ Willingness to Pay Be Measured? An Empirical Comparison of State-of-the-Art Approaches

This study compares the performance of four commonly used approaches to measure consumers’ willingness to pay with real purchase data (REAL): the open-ended (OE) question format; choicebased conjoint (CBC) analysis; Becker, DeGroot, and Marschak’s (BDM) incentive-compatible mechanism; and incentive-aligned choice-based conjoint (ICBC) analysis. With this five-in-one approach, the authors test the relative strengths of the four measurement methods, using REAL as the benchmark, on the basis of statistical criteria and decision-relevant metrics. The results indicate that the BDM and ICBC approaches can pass statistical and decision-oriented tests. The authors find that respondents are more price sensitive in incentive-aligned settings than in non-incentive-aligned settings and the REAL setting. Furthermore, they find a large number of “none” choices under ICBC than under hypothetical conjoint analysis. This study uncovers an intriguing possibility: Even when the OE format and CBC analysis generate hypothetical bias, they may still lead to the right demand curves and right pricing decisions.

Brand Authenticity: an Integrative Framework

Although brand authenticity is gaining increasing interest in consumer behavior research and managerial practice, literature on its measurement and contribution to branding theory is still limited. This article develops an integrative framework of the concept of brand authenticity and reports the development and validation of a scale measuring consumers' perceived brand authenticity (PBA). A multi-phase scale development process resulted in a 15-item PBA scale measuring four dimensions: credibility, integrity, symbolism, and continuity. This scale is reliable across different brands and cultural contexts. We find that brand authenticity perceptions are influenced by indexical, existential, and iconic cues, whereby some of the latters' influence is moderated by consumers' level of marketing skepticism. Results also suggest that PBA increases emotional brand attachment and word-of-mouth, and that it drives brand choice likelihood through self-congruence for consumers high in self-authenticity.