Tobias Kretschmer

Tobias Kretschmer
Ludwig-Maximilians-University of Munich | LMU · Faculty of Business Administration - Munich School of Management

About

154
Publications
36,236
Reads
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3,794
Citations
Citations since 2016
57 Research Items
2631 Citations
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20162017201820192020202120220100200300400500
20162017201820192020202120220100200300400500
Introduction
Skills and Expertise

Publications

Publications (154)
Article
Full-text available
How are financial incentives and innovative activity linked? We analyze how firms’ use of financial incentives is associated with their employees’ innovative activity. The presence and transparency of financial incentives matter for the link between incentives and innovative activity, just like the activity profile of those receiving incentives. In...
Article
Many platforms rely on volunteer contributions for value creation. Thus, unpaid contributors are valuable for the platform, but control over their activities is limited. We study whether and how volunteer communities can provide a competitive advantage and ask how contributor behavior depends on a platform's competitive position. We propose two cha...
Article
We study the role of alliance governance in the behavior of partners in alliances with different degrees of competition. Using data from a lab experiment on 1,009 alliances and 31,662 partners' choices, we explore whether and how alliances succeed in different competitive scenarios, contingent on the use of formal governance mechanisms (termination...
Article
We investigate the search processes that dyads engage in when each human agent is responsible for one module of a complex task. Our laboratory experiment manipulates global vs. local incentives and low vs. high cross-modular interdependence. We find that dyads endogenously learn to coordinate their joint search efforts by engaging in parallel and s...
Article
Privacy regulation by the European Union has had effects for websites beyond the European Union and lead to an increase in market concentration of web technology vendors
Article
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Digital firms tend to be both narrow in their vertical scope and large in their scale. We explain this phenomenon through a theory about how attributes of firms’ resource bundles impact their scale and specialization. We posit that highly scalable resource bundles entail significant opportunity costs of integration (versus outsourcing), which simul...
Article
A large focus of digital transformation has been on embedding digitization across organizational functions, but the most successful transformations are often coupled with strategic renewal. A deeper look at successful digital transformations shows that strategic renewal is facilitated by pervasive digital technology adoption, as those technologies...
Article
As digital technologies emerge and improve rapidly, firms face changing tradeoffs in terms of their technology infrastructure and strategic direction. Hence, many of them adopt new digital technology and develop new business models and strategies. The literature on strategic alignment of IT suggests that firms need to synchronize these different do...
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It is well established that the effectiveness of pay-for-performance (PfP) schemes depends on employee- and organization-specific factors. However, less is known about the moderating role of external forces such as market competition. Our theory posits that competition generates two counteracting effects—the residual market and competitor response...
Article
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Research summary Platform ecosystems have spurred new products and services, sparked innovation, and improved economic efficiency in various industries and technology sectors. A distinctive feature of the platform architecture is its modular and interdependent system of core and complementary components bound together by design rules and an overarc...
Article
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The widespread implementation and adoption of digital technologies by organizations has given rise to a massive transformation with the potential to affect many organizations’ internal operations and processes. This transformation affects different levels and steps of output creation in companies, which eventually triggers changes in their organiza...
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We study how online video platforms affect the sales volume and sales distribution of recorded music. To do so, we study two events that removed and then partially restored access to online music videos for consumers in Germany. Because of a legal dispute, virtually all music videos were blocked from YouTube, which led to a decrease in record sales...
Article
Multi-sided platforms (MSPs) have recently drawn considerable research attention, as the influence of platforms is increasingly relevant across a wide array of industries. However, despite theoretical and empirical advances spanning multiple disciplines, several core questions remain about MSPs. This article offers novel insights around platform bu...
Article
We offer theory and evidence about how the fit between firm experience (supply side) and consumer preferences (demand side) affects postentry performance into a new technology. Specifically, we explore different types of preentry experience (technological and market experience) and use different aspects of postentry performance to draw inferences a...
Article
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This paper studies five mergers in the European wireless telecommunication industry and analyzes their impact on prices and capital expenditures of both merging carriers and their rivals. We find substantial heterogeneity in the relationship between increases in concentration and carriers’ prices. The specifics of each merger case clearly matter. M...
Article
Als interdisziplinär und visionär agierender Ökonom setzte sich Arnold Picot mit vielfältigen Themen auseinander – sowohl in der Forschung wie auch in der Lehre und als Mentor. Schwerpunkte bildeten dabei die Organisationsforschung sowie in den letzten Jahren v. a. die Zukunft und die Veränderung der Arbeit. Organisation verstand er als Governance...
Chapter
The authors argue that organization design needs to play a more active role in the explanation of differential performance and outline a set of ideas for achieving this both in theoretical and empirical research. Firms are heterogeneous in terms of (1) how well they do things, capturing persistent productivity differences, and (2) how they do thing...
Chapter
The authors examine how firms can achieve organizational ambidexterity, that is, how they can successfully engage in concurrent exploitation of existing competencies and exploration of new competencies in their search for new products. Existing research has identified three enablers to manage these fundamentally different activities: temporal separ...
Article
We offer a new perspective on competitive dynamics research by analyzing firms’ reactions to groups of rivals, both at the industry and the strategic group level. We propose that firms observe a buildup of rival actions and perceive increasing ‘competitive pressure’ to respond, which results in greater action volume. Data on the German mobile telep...
Research
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Upwork is the world's largest online labor market platform connecting clients with freelance professionals from various disciplines ranging from administrative support to web development. This study documents the main findings of the Upworkers in Finland survey conducted in December 2017. The survey targeted all freelancers listed on the platform w...
Article
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Im Datenkapitalismus sind neue Kommunikationsunternehmen entstanden, deren Angebot als „umsonst“ erscheint. Ihr Geschäftsmodell basiert darauf, dass die Nutzer (Kunden) ihre Daten preisgeben und dafür entweder ein nachgefragtes Gut (Kommunikation, Medien, Waren und Dienstleistungen) ohne oder für geringere monetäre Zahlungen erhalten. Wie die Unter...
Article
Firms take cues from their external environment under uncertainty and imitate the actions of others. However, a firm's own experience may either substitute for these external clues because the firm can evaluate uncertain situations more accurately, or it may complement them because the firm can act more successfully on the external cues. We argue t...
Article
The success of acquisitions rests on detecting and realizing unique synergies between buyer and target through their dyadic relationships. We study the role of unique dyad-specific synergies in the selection of takeover targets in the global mobile telecommunications industry. Firms use their foresight to select specific targets: First, they lower...
Article
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Multihoming, the decision to design a complement to operate on multiple platforms, is becoming increasingly common in many platform markets. Perceived wisdom suggests that multihoming is beneficial for complement providers as they expand their market reach, but it reduces differentiation among competing platforms as the same complements become avai...
Article
In this paper we evaluate the heterogeneous effects of online copyright enforcement. We ask whether the unexpected shutdown of the popular file hosting platform Megaupload had a differential effect on box office revenues of wide-release vs. niche movies. Identification comes from a comparison of movies that were available on Megaupload to those tha...
Article
We study a model of competitive foremarkets and partly monopolized aftermarkets. We show that high aftermarket power prompts firms to engage in inefficiently aggressive below-cost pricing in the foremarket. This inefficiency is driven by the presence of consumers with valuations below marginal cost. While for intermediate aftermarket power their pr...
Article
Software variety Njt is taken from the NPD data. For every platform we count the number of game titles with positive sales to obtain Njt. Therefore, Njt can decline over time if game titles are no longer sold. We also create the software installed base of the compatible parent generation I B j − 1 , t SW . The first part of the utility function rep...
Article
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Cloud computing combines established computing technologies and outsourcing advantages into a new ICT paradigm that is generally expected to foster productivity and economic growth. However, despite a series of studies on the drivers of cloud adoption, evidence of its economic effects is lacking, possibly because many of the datasets on cloud compu...
Article
We address the contested state of theory and the mixed empirical evidence on the relationship between turbulence and vertical scope by studying how turbulence affects the benefits of commitment from integrated development of components and the benefits of flexibility from sourcing components externally. We show that increasing turbulence first incr...
Article
We propose a simple two-firm model with complementarities and imperfect knowledge about the optimal technology. Firms receive two signals about the technology, a public and a private one. We show that with complementarities public signals can serve as a coordination device between firms, even if the private signal is more precise. Our results point...
Article
Higher technological quality often translates directly into higher consumer utility. However, many new products require a complementary product to operate. In such markets, releasing a technologically sophisticated product involves a trade-off as it excludes consumers whose complementary products no longer function with the core product. Firms ther...
Article
The paper examines how firms learn over time to allocate resources to alternative strategic actions in a changing business environment. We draw on psychological models of reinforcement learning to develop theory about how market feedback influences managerial beliefs about the attractiveness of strategic actions, which in turn shape choices about r...
Article
Across countries, union membership and voter turnout are highly correlated. In unadjusted terms union members maintain a roughly 0.10 to 0.12 point gap in voting propensity over non-members. We propose a model-with three causal channels-that explains this correlation and then empirically tests for the contribution of each channel to the overall uni...
Article
Full-text available
Sampling poses an interesting problem in markets with experience goods. Free samples reveal product quality and help consumers to make informed purchase decisions (promotional effect). However, sampling may also induce consumers to substitute purchases with free consumption (displacement effect). We study this trade-off in the market for digital mu...
Article
Prudent target choice is expected to affect performance of mergers and acquisitions. We conceptualize target choice as a rational anticipation of unique future gains from the specific combination of acquirer and target firms, considering sources of strategic synergy as well as factors affecting the ability to reap these synergies in the post-merger...
Article
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We offer an explanation for the phenomenon of declining democratic engagement by assuming that what happens at work is the primary driver of what occurs outside of the workplace. If workers are exposed to the formalities of collective bargaining and union representation, they also perhaps increase their attachment to, and willingness to participate...
Article
Innovation drives economic competitiveness and sustained long-term economic growth. Especially the emergence and intensive utilization of information and communication technologies (ICTs), which spawned the beginning of the digital economy two decades ago, heavily affected the opportunities and efficiency of how firms produce and provide goods and...
Article
We study a stylized model of competitive foremarkets and partly monopolized aftermarkets. We argue that high aftermarket power and thus high aftermarket profits can induce firms to engage in inefficiently aggressive below cost pricing in the foremarket. This inefficiency is driven by the presence of unprofitable consumers who have a valuation below...
Article
Full-text available
Non‐union direct voice has replaced union representative voice as the primary avenue for employee voice in the British private sector. This study explains this development by providing a framework for examining the relationship between employee voice and workplace outcomes. Voice is associated with lower voluntary turnover, especially in the case o...
Article
A common premise in prior research is that trust increases over time in relationships. Through a meta-analysis of 39 studies, we find that the bivariate correlation between trust and relationship duration (i) is on average, positive and small and (ii) varies significantly across studies indicating the presences of unobserved moderators. We therefor...
Article
Full-text available
We study the market for apps on Facebook, the dominant social networking platform, and make use of a rule change by Facebook by which highly engaging apps were rewarded with further opportunities to engage users. The rule change led to new applications with significantly higher user ratings being developed. Moreover, user ratings became more import...
Article
We formalize firms’ research and development (R&D) diversification decisions during the pre-market phase of an emerging standards setting. Capturing transaction costs, resource-based considerations, and network effects in a two-player model, in which both agents are fully diversifiable and must trade-off the expected benefits from co-operating on a...
Article
This paper studies an under-explored phenomenon: standardization arising during the technology development stage from the interplay of incentives to compete and cooperate. We identify circumstances in which a firm will prelaunch its technology (i.e., publish detailed technological specifications) and the rival abandons its own technology to support...
Article
We study how two distinct types of pre-entry experience – core technological experience and market-based complementary experience – affect post-entry performance in a new industry. We focus on the fit between capabilities generated through pre-entry experience and the preferences of heterogeneous consumer segments. Specifically, we suggest that fir...
Article
In cross-functional teams, team performance depends on how skillfully function managers carry out the cross-function coordination of team members’ complementary expertise and activities. In this paper, we argue (i) that function managers’ coordination skills develop in part through the coordination experience gained from interacting with managers f...
Article
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We ask whether and what kind of unique factors influence the innovativeness of firms in clusters across geographic regions and industrial sectors. We provide evidence for the driving forces of firm innovativeness in different cluster types. Distinguishing between hierarchical clusters of mature industries and non-hierarchical clusters of young indu...
Article
Firms producing composite products face a tradeoff between the benefits of flexibility from sourcing components externally and the benefits of commitment from joint internal development of components. We study this tradeoff in a simulation model by varying the degree of complexity within and between the product components and the degree of environm...
Article
We examine how outsourcing of a core service affects firm performance in the context of the mobile telephony industry. We develop hypotheses based on economies of scale, transaction costs, quality advantages from specialization, and bargaining power and test these using a ten-year panel with 50 mobile network operators outsourcing their network ope...
Article
The introduction of a new product generation forces incumbents in network industries to rebuild their installed base to maintain an advantage over potential entrants. We study if backward compatibility moderates this process of rebuilding an installed base. Using a structural model of the U.S. market for handheld game consoles, we show that backwar...
Article
This paper presents a review of existing studies on dynamic, macroeconomic effects of the ICT on productivity and growth.
Article
We examine the effectiveness of public policy in a context of com-peting standards with network externalities. We show that, if the pol-icymaker is very impatient, then it is optimal to support the leading standard; whereas, if the policymaker is very patient, then it is opti-mal to support the lagging standard. We also consider the timing for opti...
Article
Competitive dynamics research has focused primarily on interactions between dyads of firms. Drawing on the awareness-motivation-capability framework and strategic group theory we extend this by proposing that firms' actions are influenced by perceived competitive pressure resulting from actions by several rivals. We predict that firms' action magni...
Article
We study the determinants and consequences of family-friendly workplace practices (FFWP) using a sample of over 450 manufacturing firms in Germany, France, U.K., and U.S. We find a positive correlation between firm productivity and FFWP. This association disappears, however, once we control for a measure of the quality of management practices. We f...
Article
Full-text available
Combining insights from the behavioral theory of the firm and the resource-based view we investigate the antecedents of strategic change in fast-changing environments. We hypothesize the independent and joint effects of performance feedback and of flexible and specific resources on strategic change. Using an unbalanced panel of 493 publisher-year o...
Article
We study the market for apps on Facebook, the dominant social networking platform, and make use of a rule change by Facebook by which highly engaging apps were rewarded with further opportunities to engage users. The rule change led to new applications with significantly higher user ratings being developed. Moreover, user ratings became more import...