Although firms rely on employees’ innovative work behaviour and effective leadership to achieve service innovation performance, these relations remain underexplored, especially regarding digital leadership. We conceptualise a digital leader’s capabilities and explore influences on innovative work behaviour and service innovation performance, using the dynamic capabilities view as a theoretical lens. Applying a multi-method exploratory research design, our qualitative results, based on 34 expert interviews, deliver a taxonomy of digital leadership capabilities along three dimensions. With 249 survey participants, we quantitatively tested dimensional influences individually (multidimensional view) and collectively (unidimensional view) using structural equation modelling. In line with our mediation results, both views are significantly positively related to innovative work behaviour; still, only the unidimensional view significantly influences service innovation performance. Our results underpin the comprehensive character of digital leadership capabilities contributing to innovation research with a new “antecedal” perspective. We also provide practical relevance by revealing innovation-effective leadership capabilities.

The Leipzig Leadership Model (LLM) connects theory and practice. Building on actor-world relations and insights from motivational psychology (actor-action relations), the LLM proposes a holistic framework able to integrate the existing plethora of leadership theories and styles. This opens up a new perspective on a comprehensive understanding of leadership roles. With its four leadership orientation dimensions of purpose, entrepreneurial spirit, responsibility, and effectiveness, the LLM enables leaders to identify and reflect on relevant leadership competencies. In order to facilitate future research on the LLM and its dimensions, we report on two studies that are developing and validating a 32-item LLM-based scale. We applied oblique bifactor target rotation in a bifactor Exploratory Structural Equation Model within CFA approach in a German sample (N = 309) with robust WLSMV-estimates to fit an LLM-based model to the data. The results suggest a good fit. Furthermore, as ECV, PUC and ARPB support the multidimensional nature of the scale, we report the appropriate bifactor statistical indices. After parallel back translation, an English version of the scale was tested in a second sample (N = 311) to replicate our earlier findings. This study facilitates future empirical research by providing a concise and integrative self-rating measure of leadership orientations. We further strengthen the scientific foundation of the LLM by empirically testing its conceptually developed four-factor structure. The scale provides a starting point for further research into leadership orientations (also as standalone subscales), and offers an applicable guideline for self-reflection and decision-making.

Purpose Unlike the traditional growth model of emerging markets after economic liberalization, India's inward foreign direct investment (FDI) surged paralleling its strong economic growth in the 2000s, despite the failure to establish a strong secondary sector. This creates an opportunity to deepen the conceptual and contextual understanding of the pivotal mechanisms that impel foreign multinational enterprises to invest into India and provides a natural setting to better understand the nature of its institutional, political and economic environment. Design/methodology/approach The authors develop a theory contextualized to Indian inward FDI patterns for the 2000-2017 period. The theoretical framework expands upon received investment motives, with explicit consideration given to the idiosyncrasies of developments in India's recent macro and socioeconomic environment. The authors test the hypotheses using panel data from 134 countries that invested in India, using a Hausman-Taylor estimation. Findings The authors find that India's transition toward a knowledge economy attracts asset augmenting rather than asset exploiting FDI. Investors appear to target long-term investments by gaining access to India's digital capabilities, R&D, and growing talent base with a high degree of specialization within analytics, biotechnology, engineering, or pharmaceuticals. Foreign investors do not seem to be notably deterred by infrastructural challenges nor by legal and regulatory restrictions. Originality/value By providing a new perspective on India's atheoretical economic development and FDI environment, this study offers a distinct point of comparison with regard to established hypotheses within the extant literature on FDI into emerging markets. Rethinking contemporary investment motive theory by introducing an adapted conceptual framework provides further opportunity to inform the understanding of firm strategies in similar environments.

We study the asymptotic stability in replicator dynamics derived from TU games using the dual Lovász-Shapley value and the Shapley2 value for non-negatively weighted games. In particular, we provide a complete description of asymptotically stable population profiles in both dynamics. In the dual Lovász-Shapley replicator dynamic, for example, asymptotically stable populations for simple monotonic games correspond to their minimal blocking coalitions.

First offers play a significant role in negotiations as they anchor negotiators’ perceptions and influence negotiation outcomes in favor of the first-offer proposer. However, negotiation is a joint decision-making process in which a first offer is typically succeeded by a counteroffer. The impact of a counteroffer has not yet been systematically researched. We propose that a counteroffer influences negotiation outcomes like a first offer. In addition, we conceptualize the “anchor zone” as the distance between the first offer and the counteroffer. We theorize that the anchor zone influences negotiation outcomes because it captures additional information compared to a single offer. To test our hypotheses, we conducted two studies: Study 1 was a vignette study (n = 190) in which participants reacted to a counteroffer that they received based on their first offer as part of a simulated negotiation. Study 2 was an online experiment (n = 212) in which participants negotiated by exchanging offers with no further communication. Our analysis suggests that the counteroffer is a significant predictor of economic outcomes. Thus, it works like a first offer, but with a lower impact. In addition, the anchor zone predicted how far the final agreement was from the first offer. Furthermore, we found that the third offer, the average concessions, and the number of offers mediated the effects of the counteroffer and anchor zone on economic outcomes. Finally, we discovered that a more aggressive counteroffer reduced the subjective value of both negotiators.

Earnings management decisions and ineffective monitoring activities have contributed to financial accounting scandals and reduced confidence in firms’ reporting quality among potential investors, lenders and other creditors. The implementation of an effective top management team (TMT) is considered essential in this context. It is well known that top managers have considerable discretion over firms’ financial reporting since they choose whether and how to manage earnings. However, research has yet to establish the relationship between top managers’ diversity attributes and firms’ earnings management levels. Therefore, this study analyses whether and how top managers’ nationality, gender and age diversity are associated with accounting quality. Based on a sample of German DAX 30 listed firms from 2011 to 2018, we found that diversity in TMT nationality and gender have a positive impact on accounting quality. This relationship is context-dependent and negatively moderated by the tenure of the chief financial officer. Our findings provide novel insights on accounting quality for practitioners such as investors, regulators and stock corporations. The implications of this study further advance the academic debate on diversity in TMTs and its effects on earnings management.

Ensuring that innovations are implemented organisation-wide remains a critical business challenge for organisations. This study identifies how organisations can improve the effectiveness of innovations and specifies the effects of innovation implementation antecedents and capabilities. By applying a mixed method approach, using data from 42 semi-structured interviews and 125 questionnaire participants, we develop a new framework for understanding the mechanisms that underlie and enhance effective innovation implementation. The results emphasise that achieving high and consistent use of innovations requires organisations to focus on organisational members and their individual characteristics, rather than on organisational design. Additionally, implementation leadership serves as a central mediator to explain the framework’s relationships. Furthermore, a middle management-driven approach that combines implementation leadership and dialogue facilitates the effective implementation of innovation. In conclusion, our study contributes to innovation implementation research by presenting a framework to guide future research, whilst helping practitioners to implement innovations more effectively.

The states of the qubit, the basic unit of quantum information, are 2×2 positive semi-definite Hermitian matrices with trace 1. We contribute to the program to axiomatize quantum mechanics by characterizing these states in terms of an entropic uncertainty principle formulated on an eight-point phase space. We do this by employing Rényi entropy (a generalization of Shannon entropy) suitably defined for the signed phase-space probability distributions that arise in representing quantum states.

Building on semi-structured interviews and publicly available documents in the realm of accounting, auditing and capital market regulation in Romania, this paper reviews and reflects on the prerequisites for, and conditions affecting the development of a financial reporting enforcement system (FRES) of Western origin in an emerging economy. It does so by examining institutional factors within and across the key components of the Romanian FRES, namely the engagement of the preparers and auditors of corporate financial reports and their interactions with public oversight bodies. The creation and functioning of the Romanian FRES are driven by the dynamics between Western and local pushes and pulls. Western actors offered support, especially in terms of technical assistance and educational programs, but the Romanian government delayed the implementation of local support mechanisms, such that practices and mindsets did not change initially. Although practices and institutions have evolved since the country joined the European Union in 2007, the pursuit of a functional Western-based FRES remains an on-going process that is highly dependent on both the continuous external provision of adequate resources and the enrolment of national actors in the deployment of these resources.

Digitisation is key for staying competitive. However, the impact of digitisation on small- and medium-sized enterprises (SME) business performance remains under-researched in the extant literature. To make effective technology adoption decisions, entrepreneurs need to understand the concrete added value of and return on digital solutions. Towards this end, a systematic literature review is conducted by analysing 124 publications in peer-reviewed journals between 2009 and 2019. Articles were extracted from commonly used databases including EBSCOhost, Emerald, ResearchGate and ScienceDirect. A state-of-the-art report on digital value creation was delivered. The analysis reveals 14 verified added values that can be ranked according to number of mentions and classified into financial as well as strategic digital benefits. The most cited returns are efficiency and effectiveness, cost reduction, productivity growth, customer satisfaction, and competitive advantage. The most quoted digital solutions are social media, websites, cloud computing, and data analytics.