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TEACHING NOTE: Cerrejón and Colombia’s Guajira region: From protracted company-community conflict to earning a social license to operate?

2022-5-2, Villadiego De La Hoz, Stephanie, Reuter, Emmanuelle

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Why is the Grass Greener on the Other Side? The Impact of Decision Modes on Investment Decisions

2019-1-30, Blondiau, Yuliya, Reuter, Emmanuelle

This study examines the role of decision modes, defined as the qualitatively different manners in which choices are made, in location choices, which is a critical investment decision type. While the research has primarily emphasised critical antecedents of location choices, namely context-level, task-level or individual-level factors, we uncover the critical role of the decision process by investigating decision-making modes. Based on a verbal protocol study in a choice experiment of 12 location choices for wind energy projects, we uncover systematic differences in the utilised decision modes and their interactions. We showcase that one decision mode type, recognition mode, leads to an asymmetric evaluation of the project location options and is triggered by institutionalised expectations and beliefs. With these findings, we contribute to the literatures concerned with the psychology of location choices and investment decision-making generally.

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Transnational Institutional Conflict and Deinstitutionalization of the Swiss Banking Secrecy

2017-11-30, Reuter, Emmanuelle, Ueberbacher, Florian

From our case study on the deinstitutionalization of the Swiss banking secrecy, we developed a grounded process theory on how transnational institutional conflict leads to the deinstitutionalization of a national institution. Our theory suggests that deinstitutionalization unfolds through an interactive conflict process with four sequential practices of national actors’ resistance and transnational challengers’ power use. Our model highlights that when a national institution is problematized by transnational challengers, national institutional guardians' attempts at protecting the supremacy of the national institution can have important unintended consequences: On the one hand, by inducing feelings of safety among incumbent organiza-tions, guardians’ protection work can motivate incumbent organizations to circumvent the demands of transnational challengers. On the other hand, by inducing feelings of outrage among transnational challengers, protection work can lead these challengers to escalate the institutional conflict. Together, these developments can provoke institutional breaches and contribute to deinstitutionalization of a national institution.

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Social acceptance of local energy markets: A survey in 4 countries

2017-9-27, Reuter, Emmanuelle, Loock, Moritz, Cousse, Julia

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Cerrejón and Colombia’s Guajira region: From protracted company-community conflict to earning a social license to operate?

2022-5-2, Villadiego De La Hoz, Stephanie, Reuter, Emmanuelle

Cerrejon, a large-scale open-pit coal mine in Colombia that started operating in the early 1980s, has received multiple national awards and recognition for the various corporate social responsibility (CSR) initiatives and programs it has implemented in recent years. Despite these initiatives, however, Cerrejon faces increasing stakeholder claims and continues to have conflictive relationships with local communities owing to differing interests relating to the use, management, appropriation, utilization, exploration, exploitation, conservation, and protection of environmental resources. The case documents the history of the relationship between Cerrejon and local communities. It introduces the mine’s history and of Cerrejon's mining and CSR activities. It traces the company's management of its social and environmental impacts in light of the applicable international standards. The case sheds particular light on the issues that underpin the company's conflictive relationship with local communities, who have a stake in the territory exploited by the company's mining activities. The case concludes with open questions concerning how Cerrejon, having increased its CSR activities while facing increased stakeholder claims, should continue to manage its relationship with local communities, to maintain or achieve a 'social license to operate' going forward.

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Digital Business Models for Local and Micro Power Markets

2019, Reuter, Emmanuelle, Loock, Moritz, Cousse, Julia

Local power markets constitute one of the most radical transformations in the current energy system: integrating renewable energy and selling it at the source of generation. This chapter focuses on business model opportunities in local power markets and on the factors that predict the models' diffusion and acceptance by local citizens. Based on EMPOWER's local power market design, it describes two ideal-type business models. The first focuses on a platform that is hosted by a distribution system operator. It outlines a business model in which a host company acts as platform provider for individual customers. The second model showcases a business model that targets cooperatives as the customer segment and host of the platform. Social acceptance is a major predictor of business model success. An important aspect of more-sided digital business models is the process of co‐creating value.

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CEOs' Use of Attention Capacity to Set a Comprehensive Agenda: Attention Load and Social Influence

2017-11-30, Reuter, Emmanuelle, Floyd, Steven, Laamanen, Tomi

In complex settings, people’s thinking, acting, and interacting with others is often bound by limited attention capacity - limitations to the amount of load that they effectively can bear. In this article, we uncover how decision-makers’ attention load dynamics and their linkages to senders’ influence behaviors provide fertile grounds for reconsidering assumptions surrounding attention capacity limitations. To this end, we synthesize research on constraining – extrinsic - and on enabling – germane - load dynamics, which shape CEOs’ use of attention capacity to develop a comprehensive strategic agenda. Critical to the different ways in which CEOs’ attention load dynamics unfold are social influence behaviors, through which other top managers in general, and Chef Strategy Officers (CSOs) in particular, seek to support or even to control the CEO’s strategic agenda. Together, our arguments expand and to some extent challenge theory on attention capacity and open new opportunities for studying linkages between attention and upward influence behavior in organizations.

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EaaS: Electricity as a Service?

2019-1-30, Xu, Yueqiang, Ahokangas, Petri, Reuter, Emmanuelle

Innovative business models have been transforming and disrupting traditional industries in an unprecedented speed. The energy industry is no exception. The advent of smart grid has initiated paradigm shifts from traditional product-based business models to service provision. An essential question is that, “How can energy industry create and capture new value from service business, turning the existing product-based business model to service orientation?” This study addresses research gaps regarding 1) the value perspective for business model; 2) the ecosystem thinking for complex industries; 3) maximising systemic value for an ecosystem rather than a focal firm. The study collects business model case data from BRIDGE, a high-level initiative of the European Commission uniting 31 major European energy projects. The research includes the full 50 business model cases contributed by experts from 15 EU Horizon 2020 innovation projects. The study utilises the 4C ecosystemic framework and the XaaS (Everything as a Service) digital service business model typologies. A key outcome is the proposition of Electricity as a Service (EaaS) concept with four service business model typologies for the energy sector, proposing a new service business paradigm for the energy ecosystem. The study proposes a value-based approach and service-dominant logic towards business model research at ecosystemic level. For the first time, the study introduces the XaaS service business typologies, investigating how this well-established ICT (Information and Communication Technology) business concept can enable the digitalisation of the energy industry.

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Corporate Strategies to Defend Social Irresponsibility: A Typology of Symbolic and Substantive Tactics

2019, Reuter, Emmanuelle, Ueberbacher, Florian

Social responsibility issues arise as stakeholders perceive and articulate a mismatch between the organization’s current way of functioning and the existing expectations of what socially responsible or normatively appropriate behavior would be. While such issues may exist in any organization, when they become salient, they have the potential to have fundamentally negative consequences for organizations, for instance, declining sales, increased costs of capital, negative reputation, loss of partner support, etc. Much prior research uncovered how organizations manage the saliency of social responsibility issues in social responsibility–congruent ways, that is, by creating positive externalities for society. In this chapter, we address how organizations act to manipulate the saliency of stakeholders’ perceptions by remaining “socially irresponsible.” We argue that organizations may skillfully use different types of impression management strategies—proactive discursive defense, proactive material defense, reactive discursive defense, reactive material defense—to avert the salience of social responsibility issues. These strategies are illustrated with case examples.

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Regulation and smart grids

2017-9-27, Loock, Moritz, Reuter, Emmanuelle, Cousse, Julia