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The question of how the firm responds to performance feedback forms the backbone of the behavioral theory of the firm. Although the literature works with goals aspirations and additional determinants of a firm’s search activity – proximity to bankruptcy and slack resources – the majority of the empirical research assumes the firm’s response to performance feedback to be linear with a spline at the aspiration level. The purpose of this paper is to study possible curvilinear properties of performance feedback itself that may yield insight on the behavior of firms responding differently from the theory’s predictions.

The research uses data from exchange-listed German industrial firms followed from 2001 to 2015. It evaluates hypotheses using historical aspiration models with ROA as a measure of performance and with a spline specification. The fixed-effects panel data models serve as an estimation technique.

The research supports an inverted U-shape relationship between performance feedback and research and development (R&D) intensity for firms below their aspiration levels, and a U-shape relationship for firms above their aspiration levels.

The research is one of the first to directly study curvilinearity in performance feedback relationships. Arguably, there is no such a study directly focusing on a firm’s search as represented by R&D, despite the fact, that R&D forms the backbone of performance feedback research. Also, the population of German industrial firms is new in the literature.

This study sheds light on the uncharted phenomenon of regional management in coordinating services across borders. Based on a multiple case study of four German industrial manufacturing firms with servitization strategies we seek to better understand what kind of organizational challenges servitization poses for the MNC and whether these challenges can be met through regional management models. This chapter initiates a conversation on the available design options for running service operations regionally.

A firm will respond to performance feedback, i.e. a comparison of its current performance with the goals to which it aspires, by means of changes in its search activity. There is an emerging body of literature that studies how such behavioral responses are shaped by important decision-makers inside firms. The study focuses on the corporate board – one of the most influential decision-making groups in terms of strategy. More specifically, the study aims to study the moderation effect of the size, turnover and age diversity of the board.

The sample is based on the largest listed German automobile and manufacturing firms followed between the years 2001 and 2015. The sample is analyzed using fixed-effects panel data models.

The findings indicate that the age diversity of the corporate board and, partially, also the turnover of its members moderate firms' responsiveness to performance feedback. On the other hand, the size of the board does not seem to play a role. The study, therefore, supports the notion of taking into account the characteristics of the corporate board when analyzing strategic decision-making and points to areas for further research.

The study contributes to the literature by empirically testing the moderating effect of three characteristics of corporate boards that have not been largely tested in the literature to date.

The purpose of the paper is twofold: to discuss characteristics and potential effects of an ageing workforce and to present the perception manufacturing managers have of the influence of demographic change on the manufacturing function.

The phenomenon of demographic change and the characteristics of ageing workers are presented based on a literature study. In addition, the results of a survey within German industrial firms are put forward, in which operations managers were asked about their perception of older workers in manufacturing.

Effects of the demographic transition will influence manufacturing companies in every economy. An ageing workforce is well suited to support quality‐focussed manufacturing strategies. Yet, the adoption of new manufacturing technologies might be hampered by the older employees' unwillingness to learn that is assumed commonly.

The empirical research provides a first look at the substantial impact that demographic change will have on manufacturing companies. The discussion is based on trends in Germany and on the reported perceptions of German manufacturing managers; however, it is argued that implications can be transferred to other economies.

Practitioners will see the necessity to consider the impact of demographical change in future decisions. It is discussed which commonly held beliefs about older workers are justified based on scientific research.

Focusing on the demographic transition, this paper adds an important aspect to the academic discussion of the future of manufacturing, highlighting the significant consequences that demographic change will have on manufacturing and suggesting concepts for addressing the challenge in practice. Furthermore, it provides first empirical results of the perception of manufacturing directors about this topic.

Works councils have the legal right to participate in a firm’s training process and, where necessary, call for a replacement of training instructors. The purpose of this paper is to empirically test whether works councils are associated with a higher quality of apprenticeship training – or its inputs or outputs – in Germany.

The authors use two representative cross-sectional surveys of German workplaces in 2007 and 2012/2013 that were conducted by the Federal Institute for Vocational Education and Training in Germany. To account for selection on observables, the authors apply nearest neighbor matching models to estimate the extent to which works councils are associated with training quality.

The results shed light on the influence of works councils on the quality of apprenticeship training in Germany. Based on a quality model, the authors show that works councils are associated with a (moderately) higher output quality of apprenticeships, particularly with respect to the share of retained apprentices. However, the authors do not find empirical evidence for a positive association between works councils and input- and process-quality indicators.

Although the identification of causal effects due to the existence of works councils is difficult and cannot be fully addressed in the analysis, the authors can use a number of important control variables at the workplace level. The results suggest that a works council only plays a moderate role in enhancing the quality of the German apprenticeship system.

The authors provide the first direct empirical evidence of how the existence of a works council is associated with the input-, process- and outcome-quality measures of the German apprenticeship system.

I. INTRODUCTION This study attempts to extend and expand previous research conducted by the Department of Marketing at Strathclyde on the adoption and diffusion of industrial products.

Reports on a empirical investigation about the usage of computer integrated manufacturing in German hardware manufacturing. Results show a substantial variety in the current status of CIM implementations and indicate a large number of reasons that caused the firms to invest in CIM, the most prominent being a reduction in order processing time, an increase in scheduling effectiveness, and shorter delivery delays. There are strong synergistic effects between the CIM components. Although a step‐by‐step implementation of CIM is feasible and successful, only the integration of the individual pieces of equipment utilizes the full potential. The analysis of the data supports the hypothesis that the higher the degree of integration and automation, the better the objectives associated with CIM will be achieved.

Previous research has highlighted the digitization of innovation processes and outcomes especially with regard to the impact of information technology (IT) on new product development (NPD). Instead of analyzing generic IT usage in the NPD, the purpose of this paper is to explore the influencing factors on the adoption of specific software tools to support innovation management methods, called innovation management software (IMS) and their specific functionality.

The authors used an online questionnaire and gathered data from 99 innovation managers of German industrial firms to explore which functionalities embedded in the tools such as aided innovation methods and activities influence the adoption of IMS.

This study’s results indicate in contrast to the previous assumptions in the literature that the likelihood of IMS adoption by innovation managers is positively influenced if the IMS tools offer support functionality for idea evaluation and portfolio management but decreased for idea generation and scenario management. Therefore, this paper can show, that the digitalization of the innovation process though IT tools is more finely nuanced than a “the more – the better” logic often promoted in the digitalization context and proposed in the literature on IMS before.

These findings advance the understanding of technological and organizational drivers of the transformation toward the digitalization of the innovation process from the perspective of innovation managers, who intend to do so by successfully introducing and using IMS in their NPD. Additionally, suppliers of IMS get valuable empirical-based indications from the user perspective that potentially supports their development and sales activities. From a theoretical perspective, this study extends prior research on IT usage and digitalization in the innovation process by expanding to an under-researched category of digitization for the innovation manager perspective aspects of the NPD activities.

The purpose of this paper is to estimate the impact of fixed-term contracts (FTCs) on labour productivity, wages (i.e. labour cost), and productivity-wage gaps (i.e. profits).

The authors apply dynamic panel data techniques to detailed Belgian linked employer-employee panel data covering the period 1999-2006.

Results indicate that FTCs exert stronger positive effects on productivity than on wages and (accordingly) that the use of FTCs increases firms’ profitability.

This paper is one of the first to examine the FTC-productivity-wage nexus while addressing three important methodological issues related to the state dependency of the three explained variables, to firm time-invariant heterogeneity, and to the endogeneity of FTCs.

Using data from a retail chain of 193 bakery shops that underwent downsizing, we study the effects of two types of downsizing announcements – closure or sale to another operator – on sales in the affected shops, and how these effects are moderated by job security perceptions. On average, sales in the affected shops go down by 26% after a closure announcement and by 7% after a sale announcement. Sales decline more sharply in shops where employees had higher job security perceptions before the announcement. Our findings are consistent with psychological contract theory: a breach of an implicit contract promising job security in exchange for work effort results in a reciprocal effort withdrawal. We rule out several alternative explanations to our findings.