Junior Management Science, Volume 5, Issue 4, December 2020

  1. Maria Huber, On the Analysis of Moral Hazard Using Experimental Studies, 410-428
  2. Oriana Wendenburg, The Effect of Gratitude on Individuals’ Effort – A Field Experiment, 429-451
  3. Magdalena Melonek, To Be Is to Do: Exploring How Founder Social and Role Identities Shape Strategic Decisions in New Venture Creation Process, 452-476
  4. Markus Sebastian Gebhart, Die Quellenbesteuerung bei digitalen Transaktionen – Status quo und mögliche Handlungsalternativen, 477-511
  5. Nelli Ukhova, Leaders’ Resilience in the International Context, 512-531
  6. Ubald Bauer, Economics of Hydrogen: Scenario-based Evaluation of the Power-to-Gas Technology, 532-561
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On the Analysis of Moral Hazard Using Experimental Studies

Maria Huber, Ludwig Maximilian University of Munich (Bachelor thesis)
Junior Management Science 5(4), 2020, 410-428

The term moral hazard generally implies individuals´ tendency to exercise less effort into cost reduction if the negative consequences resulting from their actions are not borne by themselves. This paper analyzes using recent experimental studies under which circumstances moral hazard is likely to occur and how this problem could be mitigated or eliminated. A detailed overview and analysis of field and laboratory experiments from different areas are provided. At first, a description of the experimental process is presented. The paper then concentrates on findings and, additionally, on the discussion of the ethodology. Overall, the results suggest moral hazard to be an important problem in many markets. However, it is found out that experts without personal financial incentives do not respond to customers´ insurance status. Besides, competition mitigates moral hazard on the supply side and evidence shows that moral hazard is less likely to occur in markets for natural disaster insurance where probabilities of damages are low. Additionally, peer pressure and pro-social preferences alleviate the problem of moral hazard in group schemes.

Keywords: First-degree moral hazard; second-degree moral hazard; experiments; analysis.

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The Effect of Gratitude on Individuals’ Effort – A Field Experiment

Oriana Wendenburg, University of Cologne (Master thesis)
Junior Management Science 5(4), 2020, 429-451

This study uses a real-effort survey experiment to investigate whether expressions of gratitude induce reciprocal behaviour and hence significantly increase individuals’ effort. I extend existent literature by exploring non-pecuniary gifts that signal different degrees of gratitude, all combined with an interpersonal element. Based on a formal model, I hypothesize that a greater amount of gratitude is accompanied by higher levels of provided effort. The results show that appreciation in form of a thank you note positively affects reciprocal effort choice, compared to receiving no gratitude. An even higher level of gratitude conveyed in form of a video clip, however, does not impel subjects to provide more effort. Moreover, while I detect women to behave more reciprocally than men, this effect is least present in the gratitude treatments. These insights provide valuable implications for experimental research as well as for organizations and modern labour markets, emphasizing that non-monetary gifts, such as expressions of appreciation, are a cost-effective tool for human resource management to determine workers’ effort.

Keywords: Gratitude; non-pecuniary gifts; gift giving; reciprocity; personnel economics.

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To Be Is to Do: Exploring How Founder Social and Role Identities Shape Strategic Decisions in New Venture Creation Process

Magdalena Melonek, Technische Universität München (Bachelorarbeit)
Junior Management Science 5(4), 2020, 452-476

Founder identity is essential in entrepreneurial decision making. A number of studies have sought to examine the relationship between founder identity and venture by taking a unilateral perspective of either social identity theory or identity theory. On the basis of an exploratory single-case study conducted with a German venture from the sustainable fashion industry, this bachelor thesis integrates both theories and explores how the synergy of a founder´s social and role identities influences core strategic decisions in new venturecreation process. The results obtained in this analysis suggest that 1) founders´social and role identities have a different yet complementary impact on the new venture-creation process, and 2) strategic decisions shaping a venture are a result of different interplays between multiple social and role identities, where either one of the identity types dominates a decision or both identities simultaneously reinforce it. My contributions broaden the understanding on the interrelation between the founder and his or her venture by expanding the focus of founder identity theory to social as well as role identities.

Keywords: Sustainable entrepreneurship; entrepreneurial decision making; founder identity; social identity theory; identity theory.

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Withholding Tax on Digital Transactions – Status Quo and Potential Alternative Courses of Action

Markus Sebastian Gebhart, Ludwig Maximilian University of Munich (Master thesis)
Junior Management Science 5(4), 2020, 477-511

The providers of digital advertising services are criticised for being omnipresent worldwide, but to pay no significant corporate tax in many countries. In addition to supranational efforts at the OECD and EU level to solve the taxation problems of digital business models, some literature argues that providers of foreign digital advertising services are already subject to limited tax liability in Germany on the basis of existing tax laws. This paper therefore deals with the question of how German taxation rights for digital advertising services which are provided domestically by foreign corporations with the help of the internet can be ensured. To this end, the paper first examines whether German tax laws are capable of taxing cross-border digital advertising services. Subsequently, it will examine whether the draft directives discussed at EU level on the taxation of digital business models would be suitable for ensuring taxation in Germany. The study shows that the existing German tax laws cannot ensure the taxation of digital advertising services in most cases and that the introduction of the EU draft directives in their current form cannot be recommended.

Keywords: Digitale Werbeleistungen; Quellenbesteuerung; Rechteüberlassung; Digitalsteuer; signifikante digitale Präsenz.

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Economics of Hydrogen: Scenario-based Evaluation of the Power-to-Gas Technology

Ubald Bauer, Technical University of Munich (Master thesis)
Junior Management Science 5(4), 2020, 532-561

Power-to-gas (PtG) facilities apply the chemical process of water electrolysis to produce hydrogen and represent a low-carbon alternative to conventional hydrogen production methods when coupled with renewable energy sources. This thesis aims to evaluate the economic potential of the PtG technology and explore how policy changes can affect its profitability, measured by the break-even price of hydrogen. For the derivation of the break-even price, I rely on a net present value model that considers cost and revenue components as levelized terms, which I adapt by incorporating energy policy instruments. I develop an algorithm for the investment analysis of PtG projects, which considers both the capacity of the PtG facility and the renewable energy source as variables and optimizes their ratio for profitability. My analysis shows that large-scale PtG facilities can already compete on the market for medium-scale hydrogen supply at a price of 3.55 €/kg. However, profitable operations of small-scale PtG plants still depend on the implementation of policy changes. I find that small systems could produce pure renewable hydrogen at a break-even price below 3.00 €/kg and thus more than halve their costs, if supportive policy measures were adopted.

Keywords: Hydrogen economics; power-to-gas; renewable energy; capacity optimization.

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