Georg von Krogh’s research while affiliated with ETH Zurich and other places

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Publications (295)


A New Machine Learning Approach Answers What-If Questions
  • Article
  • Full-text available

February 2025

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511 Reads

MIT Sloan Management Review

Stefan Feuerriegel

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Georg Von Krogh

Machine learning is now widely used to guide decisions in processes where gauging the probability of a specific outcome-such as whether a customer will repay a loan-is sufficient. But because the technology, as traditionally applied, relies on correlations to make predictions, it offers managers no insight when it comes to understanding the impact of different choices on business outcomes. 1 Consider an R&D manager at a large company who is faced with deciding how much to invest in a new technology. Using traditional ML, they can ask what will happen when they increase their spending. They might find a strong correlation between higher levels of investment and higher revenue when the economy is growing. And they might conclude that, since economic conditions are favorable, they should increase the R&D budget. But should they, really? If so, by how much? External factors, such as levels of consumer spending, technology spillover from competitors, and interest rates, also influence revenue growth. Comparing how different levels of investment might affect revenue while considering these other variables is useful for the manager to determine an R&D budget that delivers the greatest benefit to the company. Causal ML-an emerging area of machine learning-can help to answer such what-if questions through causal inference. Similar to how marketers use A/B tests to infer which of two ads is likely to generate more sales, causal ML can inform what might happen if managers take a particular action. 2 This makes the technology useful in many of the same business functions that use traditional ML, including product development, manufacturing, finance, human resources, and marketing. 3 Traditional ML is still the go-to approach when making predictions-such as forecasting stock prices or recommending products that customers

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Generative AI, Emerging Technology, and Organizing: Towards a theory of progressive encapsulation

October 2024

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6 Reads

Organization Theory

Generative AI is upon us and is changing organizations and organizing. In this essay, we extend the relational perspective on technology, which argues for moving away from an entity-based view of technology to one that focuses instead on the evolving relations and functions between people, technologies, and organizations. We do so by introducing the concept of “progressive encapsulation” which captures GenAI’s potential ability to increasingly expand the “black box” and reduce visibility into and control over the relations and functions performed. We argue that progressive encapsulation is critical in our theorizing about GenAI. As an illustration and thought experiment we consider how GenAI and progressive encapsulation may necessitate changes in our theorizing about groups and teams in organizations.


A theoretical model based on SDT and MCT
Illustrates the moderating role of past accumulated experience
Descriptive statistics of variables (N = 72959)
Empirical results
“The double-edged sword of inflated help”: Unravelling the motivation crowding in community question-answering platforms

March 2024

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59 Reads

The growth of digital platforms has led to the proliferation of Online Communities, providing individuals with opportunities to seek help and share knowledge. A key challenge of help-related platforms that address technical questions (i.e., utilitarian, rather than opinion or supportive) is to ensure the contributions address seekers’ specific information needs. Despite growing academic interest in such platforms, research has mainly focused on factors that influence the quantity of contributions, ignoring whether these contributions effectively helped the seekers. To fill this research gap, this study draws upon theories of self-determination and motivation crowding to examine contributing behaviors that result in successful helping. By analyzing a rich dataset collected from an online Q&A platform, we find that gains in a help provider’s past rewards positively influence the success of contribution. Further, while previous studies suggest that external rewards result in a high quantity of contribution, our findings show that an inflated frequency of contribution leads to a crowding-out effect. Specifically, the contribution frequency has a curvilinear relationship with the success of the contribution. Taken together, these findings demonstrate there is a need to revisit the gamification mechanism on help-related platforms to ensure the success of knowledge contribution. This is crucial for the sustainability of these platforms as low-quality answers can lead users to mistrust and eventually leave the platform.


Design principles for artificial intelligence-augmented decision making: An action design research study

March 2024

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664 Reads

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11 Citations

Artificial intelligence (AI) applications have proliferated, garnering significant interest among information systems (IS) scholars. AI-powered analytics, promising effective and low-cost decision augmentation, has become a ubiquitous aspect of contemporary organisations. Unlike traditional decision support systems (DSS) designed to support decisionmakers with fixed decision rules and models that often generate stable outcomes and rely on human agentic primacy, AI systems learn, adapt, and act autonomously, demanding recognition of IS agency within AI-augmented decision making (AIADM) systems. Given this fundamental shift in DSS; its influence on autonomy, responsibility, and accountability in decision making within organisations; the increasing regulatory and ethical concerns about AI use; and the corresponding risks of stochastic outputs, the extrapolation of prescriptive design knowledge from conventional DSS to AIADM is problematic. Hence, novel design principles incorporating contextual idiosyncrasies and practice-based domain knowledge are needed to overcome unprecedented challenges when adopting AIADM. To this end, we conduct an action design research (ADR) study within an e-commerce company specialising in producing and selling clothing. We develop an AIADM system to support marketing, consumer engagement, and product design decisions. Our work contributes to theory and practice with a set of actionable design principles to guide AIADM system design and deployment.




Artificial intelligence and radical uncertainty

December 2023

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111 Reads

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10 Citations

European Management Review

Artificial intelligence (AI) offers new possibilities to augment human decision‐making under radical uncertainty. This viewpoint commentary explores how AI can relax limits of bounded rationality. It offers a framework for analyzing how AI can support human decision‐makers confronted with deep uncertainty by bolstering key decision‐making sub‐processes. Specifically, AI can help set agendas by scanning environments, formulate problems by providing contextual insights, identify creative alternatives through combinatorial abilities, select options by modelling scenarios and enable rapid experimentation cycles. Connecting the role of AI with the contributions in this special issue, this viewpoint commentary concludes by outlining directions for future research regarding the function of AI and augmented human intelligence in decision‐making under conditions of radical uncertainty.



Citations (67)


... To prevent overfitting, we incorporated the following regularization techniques DropoutA dropout rate of 0.5 was applied to the fully connected layers, randomly deactivating neurons during training to promote generalization L2 Regularization Also known as weight decay, L2 regularization was applied to penalize large weights, encouraging the model to favor simpler solutions and reducing sensitivity to noise [27] ...

Reference:

Integrating Attention Mechanisms and ResNet-50 For Enhanced Driver Sleepiness Detection
Design principles for artificial intelligence-augmented decision making: An action design research study

... This paper explores how over-reliance on AI might affect autonomy and cognitive abilities, particularly critical thinking, problem-solving, and decision-making, while also considering ethical implications, aiming to balance AI's benefits with its risks for IT professionals. 59 2021:296;Ruiz-Real et al, 2020:108), while individual users benefit from tools like OpenAI's ChatGPT for knowledge access and problem-solving (Danry et al, 2023:2-5;Grimes et al, 2023Grimes et al, :1617. However, this increased reliance on AI raises concerns about its potential negative impact on innovation, critical thinking, and problem-solving, along with ethical issues such as bias, privacy, and security (Danry et al, 2023:2-5;Goel et al, 2024:10;Grimes et al, 2023Grimes et al, :1619Safdar, 2020:1;Harkut et al, 2019:3). ...

From Scarcity to Abundance: Scholars and Scholarship in an Age of Generative Artificial Intelligence
  • Citing Article
  • December 2023

Academy of Management Journal

... While AI algorithms excel at identifying and replicating patterns, they are less adept at actively engaging with data-questioning it and conducting new analyses to innovate beyond existing data-generating processes. Humans, with their ability to think and act flexibly in dynamic environments, still retain a significant advantage (Weiser and Von Krogh, 2023;Felin and Holweg, 2024). Nonetheless, AI's ability to integrate both quantitative and qualitative insights presents exciting opportunities for future research on the collaborative decision-making processes of humans and machines in innovation. ...

Artificial intelligence and radical uncertainty
  • Citing Article
  • December 2023

European Management Review

... Each model necessitates different types of input data and is enabled to generate specific outputs, exemplified by the functionality of input data to output data, which may include text-to-text, text-to-image and other operations. The development of generative AI is contingent upon the integration of three essential components: a dataset utilized in the training of the large language model (LLM), the source code employed to define and execute the training process on a given dataset, and the model eventually comprising the parameters or weights (Shrestha et al., 2023). The ability of GenAI models to produce previously unseen synthetic content (García-Peñalvo & Vázquez-Ingelmo, 2023) differs from classification tasks performed by predictive ML models, such as identifying constitutive elements and semantic contexts in an image, e.g. ...

Building Open-Source AI
  • Citing Article
  • January 2023

SSRN Electronic Journal

... While opensource neural models are recognized as the key to the popularization and trustworthiness of artificial intelligent services [61], an AP manufacturer might also hold details of its neural model confidential to thwart piracy by its commercial rivals. For instance, the AP may deny access to the specific components and parameters of the neural model, only compromising to disclose its functionality and coarse architecture to gain users' trust. ...

Building open-source AI

Nature Computational Science

... Most manuscripts do not specify the audience explicitly, but it is always implied in the framing. While, over time, a particular project might attract interest in other (usually adjacent) areas, such extensions are unlikely to occur unless the core audience finds it sufficiently persuasive and impactful to deserve publication (Dencker, Gruber, Miller, Rouse & von Krogh, 2023). ...

Positioning Research on Novel Phenomena: The Winding Road From Periphery to Core
  • Citing Article
  • October 2023

Academy of Management Journal

... Open strategy studies also suggest that including a more diverse group of actors is beneficial because they can share and contribute knowledge that complements that of traditional strategy actors, thereby supporting them in gathering a variety of opinions on strategic initiatives (Hutter et al., 2017;Luedicke et al., 2017;Mack & Szulanski, 2017) as well as different interpretations of potential solutions to specific strategic issues (von Krogh & Geilinger, 2019). ...

Open Innovation and Open Strategy: Epistemic and Design Dimensions
  • Citing Chapter
  • July 2019

... Bei hybriden Teams können nicht nur Art und Nutzung der IKT und geographische Verteilung der Teammitglieder, sondern auch die zeitliche Dynamik der vor Ort und remote arbeitenden Teammitglieder zu Ungleichgewichten im Informationsfluss und zu weniger Eingebundenheit im Team führen und damit die die Zufriedenheit und Arbeitsleistung beeinträchtigen, wodurch sich für Teamleitung und Zusammenarbeit neue Herausforderungen ergeben (Bernardy et al. 2021;Handke et al. 2024;Lenzner et al. 2023 (Savelsbergh et al. 2009;Schippers et al. 2007), inwieweit sich die Teammitglieder gegenseitig anregen, neue Blickwinkel einzunehmen, Wissen zu teilen, gemeinsam Schlussfolgerungen zu ziehen und sich Zeit nehmen Arbeitserfahrungen zu reflektieren. Das Modul Teamsteuerung erfasst mit fünf Items angelehnt an Wiedemann et al. (2013), inwieweit sich die Teammitglieder gegenseitig unterstützen und eine konstruktive Feedback-und partizipative Teamkultur vorhanden ist. ...

Virtual Communication and Professional Isolation in Hybrid Work
  • Citing Article
  • August 2023

Academy of Management Proceedings

... As a result, universities are recognized as key drivers of innovation, producing new basic research that fosters regional economic growth through knowledge spillovers (Hausman, 2022;Jaffe, 1989). Firms can rely on basic research through collaborations with universities and public research organizations, creating new technological opportunities and converting ideas into commercialized innovations (Cohen et al., 2002). 2 Moreover, recent evidence suggests that UICs can mitigate the negative effect of economic recessions on firms' R&D and patents as a strategy to face changes in macroeconomic environment (Añón Higón and Vicente-Chirivella, 2024;D'Agostino and Moreno, 2018;Trantopoulos et al., 2024). This paper contributes to the literature on the cyclicality of innovation. ...

Open innovation during the 2008 financial crisis
  • Citing Article
  • July 2023

Industry and Innovation

... The most critical challenge is the practicality and feasibility of ideas generated in such short period (Chan, Li, & Zhu, 2018;Gillier, Chaffois, Belkhouja, Roth, & Bayus, 2018). The other threat is the limited depth of participants' knowledge and information (von Krogh, Garriga, Aksuyek, & Hacklin, 2016). Considering these challenges, we looked at three critical concepts associated with collective design. ...

Private-Collective Innovation: The Effects of the Number of Participants and Social Factors
  • Citing Chapter
  • March 2016