Open Access

This dissertation is dedicated to extending scholarly understanding of organizational transformation in the context of disruptive change. For this purpose, three independent studies explore both organizational- and individual-level aspects of organizational transformation. In doing so, this dissertation integrates two literature streams – disruptive innovation theory and organizational identity. Study 1 lays the ground by providing a descriptive, thematic analysis of organizational transformation induced by digital innovations and technologies. The paper systematically reviews 58 articles to critically assesses where, how and by whom research on digital transformation is conducted and how it unfolds at the organizational level. Studies 2 and 3 are located at the intersection of disruptive innovation adoption and organizational identity in the context of incumbent firms. Both studies apply an inductive, field-based single case design and primarily build on qualitative data gathered from 39 (Study 2) and 35 (Study 3) semistructured personal interviews at a major German car manufacturer. Study 2 examines how organizational identity change unfolds in an incumbent attempting to adopt multiple different disruptions at the same time, while Study 3 moves more towards the individual-level and attempts to understand how and why organizational members respond heterogeneously to disruption. Overall, this dissertation contributes in the following ways: (1) Studies 1 and 2 extend the conceptual- and organizational-level knowledge of disruptive innovation adoption during organizational transformation. In particular, Study 2 shows that different drivers of identity-induced organizational transformation become observable, dependent on the nature of a disruption, (2) Studies 2 and 3 extend the individual-level knowledge of organizational member’s attitudes and behavior during identity-threatening organizational transformation. For this purpose, Study 3 develops a typology which gives evidence for the existence of three types of member’s sensitivities and shows that identity and knowledge function as cognitive frames of reference to interpret change, whereas culture is seen as a contextual factor to support the transformation of identity and knowledge.

Confidence judgments and decision making are part of everyday life. In an ideal world, people would assess their skills and knowledge accurately and base their decisions only on rational deliberations. Yet, this is often not the case. Confidence judgments in own skills or performance are often biased (e.g., Dunning, 2011; Moore & Healy, 2008; Moore & Schatz, 2017; Sanchez & Dunning, 2018; Pikulina, Renneboog, & Tobler, 2017; Michailova & Schmidt, 2016). Also, people tend to deviate from rational decision strategies (e.g., Achtziger & Alós-Ferrer, 2014; Alós-Ferrer, Hügelschäfer, & Li, 2016, 2017; Charness, Karni, & Levin, 2010; Erev, Shimonovich, Schurr, & Hertwig, 2008; Fiedler, Brinkmann, Betsch, & Wild, 2000; Tschan et al., 2009). Therefore, the research aim of the present dissertation was twofold. In the first chapter of the present dissertation I investigated confidence judgments in own skills and the confidence bias, the processes underlying these confidence judgments, and the influences of gender and monetary incentive on confidence judgments. The second aim was to investigate the influence of goal and implementation intentions on rational decision making and how this influence is reflected in the neural correlate of reinforcement learning. A common finding in research on confidence judgments is the confidence bias (e.g. Moore & Schatz, 2017; Moore & Healy, 2008; Pikulina et al., 2017; Sanchez & Dunning, 2018; Lebreton et al., 2018). In most cases, the confidence bias reflects overconfidence, which means that people’s subjective confidence exceeds their actual ability or performance (Fischhoff, Slovic, & Lichtenstein, 1977). In some cases, there is also evidence for underconfidence, suggesting that people underestimate their abilities (Kruger & Dunning, 1999; Kruger & Burrus, 2004). Gender is an important predictor of the confidence bias. Underconfidence is more prevalent in females, whereas males often display overconfidence (e.g., Barber & Odean, 2001; Hügelschäfer & Achtziger, 2014; Niederle & Vesterlund, 2007). In Study 1, I investigated the processes underlying confidence judgments and the confidence bias by means of response times, and I examined potential gender differences. Participants answered general knowledge questions and judged their confidence on the correctness of each answer. Participants had overall a good sense of whether their answer was correct or incorrect. This was reflected by higher confidence judgments on correct answers compared to incorrect ones. The analysis of response times on the confidence judgments revealed that male participants who took longer to judge their confidence were made more accurate judgments than males who responded quickly. This relationship was not found for females. In Study 2, half of the participants received a monetary incentive for good performance in the general knowledge test. The monetary incentive for performance increased the time invested in both tasks (the knowledge questions and the confidence judgments). However, this increased effort did not lead to better performance on the knowledge questions, nor did it yield more accurate confidence judgments. The response times suggested that males who invested more time in the confidence judgments were more accurate (as in Study 1). However, the opposite was true for females. The more time females invested in their judgment the more underconfident they were. This influence of the response time on the confidence bias was only found for incentivized participants. In Study 3, the accuracy of the confidence judgment was incentivized. Contrary to the expectations, the monetary incentive did not reduce the confidence bias but led both males and females to be overconfident. In this study, the response time on the confidence judgment did not predict the confidence bias. On the whole, the results demonstrate that (a) the processes of confidence judgments differ between females and males, and (b) the effectiveness of monetary incentives for improving the accuracy of confidence judgments depends strongly on the incentive being contingent on the performance in the task at hand. The second chapter of the present dissertation investigated the influence of goal and implementation intentions (P. M. Gollwitzer, 1999) on rational decision making (see also Hügelschäfer & Achtziger, 2017). The impact of intentions was examined by the neural correlate of reinforcement learning, i.e. the feedback-related negativity (FRN; Holroyd & Coles, 2002). Participants worked on a probability updating task in which the optimal strategy to maximize the expected payoff was to follow Bayes’ rule by integrating new information with prior probabilities (Bayes & Price, 1763). The optimal decision rule conflicted with a simpler suboptimal decision strategy, i.e. the reinforcement heuristic (see Achtziger & Alós-Ferrer, 2014; Charness & Levin, 2005). The goal and implementation intention manipulation was proposed to control the automatic process of the reinforcement heuristic and hence foster rational decision making. The results showed that the goal intention and the implementation intention had no influence on the number of reinforcement errors (in contrast to the findings of Hügelschäfer & Achtziger, 2017). However, both, the goal and implementation intentions increased the amplitude of the FRN which, on the neural level, indicated a stronger reliance on the reinforcement heuristic than in the control group. The findings shed some light on the impact of goal and implementation intentions on rational decision making. They demonstrate that careful consideration of the use of intentions as an intervention for improved decision making is required to avoid undesired side-effects. Taken together, the present dissertation provided new insights into the processes underlying confidence judgments, the confidence bias, rational decision making, and its neural correlates.

People face economic decisions on a daily basis. Quite often, these decisions involve high stakes and some degree of personal risk, as choices produce real consequences that set the course for future actions. Although decades of decision research in the intersection of psychology, behavioral economics, and neuroscience have much advanced our knowledge about the psychological underpinnings of economic decisions, several academic disputes remain unsettled. Indeed, surprisingly little is known about the role of motivation and volition in guiding economic decisions. Certainly, people’s motives, goals, and their expectations of attractive rewards are important drivers of decision making. Yet, motivation and volition cannot be reduced to goals and incentives. The cognitive mechanisms underlying economic decisions are rather complex, and motivation and volition may impact decisions at the level of these cognitive processes. This dissertation considers the role of motivation and volition in economic decisions by examining the impact of experimentally induced motivational and volitional states of mind on economic choices and decision processes. Using different methods and decision making paradigms, four experiments provide novel evidence that informs the ongoing debates in motivation research, decision science, and psychophysiology. In short, Experiments 1a and 1b explore the possibility of interactive effects between motivation, volition, and financial incentives in determining economic performance. Moving on to the level of decision processes, Experiment 2 examines the impact of motivation and volition on decision processes under risk. Decision times, eye movements, and pupil dilations provide process measures of cognitive effort, pre-decisional information search, and affective arousal, respectively. Finally, Experiment 3 investigates how particular decision attributes relate to affective and motivational processes in decisions under risk. The findings of the present dissertation can be summarized in terms of four main conclusions. First, incentives are effective for improving economic performance when the payment of attractive monetary rewards is contingent on performance. Yet, higher incentives do not further improve performance. Second, the experimental manipulation of motivational and volitional mindsets does not directly affect choices, but notably impacts decision processes. Third, the influence of motivation and volition on economic decisions appears to depend on the appropriate incentivization of the task at hand. Fourth, risky choice attributes that entail no gain at all, i.e., zero-outcomes, elicit high levels of affective arousal and motivational avoidance tendencies that guide selective attention and decision making in the lottery choice paradigm. The implications of these findings are discussed for theory development in motivation research and decision science, as well as in terms of their practical implications for decision making in managerial contexts and other high-stakes decision environments.

While there is a great sense of urgency in the scientific community to act now in order to slow the imminent negative effects of global warming, most organizations continue to run their operations as though the external context has not changed significantly. For the banking sector, in particular not much research has been conducted in the area of their strategic engagement with climate change (CC), despite the fact that the engagement of this sector is crucial for the transition to a low-carbon economy. This is why this thesis focuses on the banking sector. Through an exploratory comparative case study of four banks, this thesis investigates mechanisms that have led to, or have been prevented from, the integration of climate change in the respective bank’s corporate strategies. In particular, it answers the following questions: How are banks interpreting climate change in their organizational context? To what degree does the initial individual interpretation influence the attentional distribution through structures and communication of the issue internally? Can this explain the variance in observed strategic choices? In order to answer those questions, a multi-level analysis was conducted using three different theoretical perspectives: the macro, meso and micro. 1. The macro lens, grounded in institutional theory, is important in order to generate understanding about the perception of current institutional pressures possibly influencing corporate responses. 2. The meso lens, grounded in the Attention Based View of the Firm, serves to analyze how attention structures inside the banks influence the distribution of attention towards the topic and influence the degree of integrating climate change-related aspects across the organization. 3. The micro lens, based on the concept of moral intensity (Jones, 1991), serves as an alternative interpretation model to explore how managers make sense of climate change as individuals. Further, the concept of “issue selling” investigates what language managers use to generate attention regarding climate change while using different attentional structures explored through the meso lens. The findings are based on four case studies of banks located in Europe, each of which show a different degree of climate change integration in their corporate strategy. The case studies drew upon field research including 23 semi-structured interviews with senior managers and members of the executive teams from those four banks, six interviews with stakeholders and a comprehensive analysis of publicly available corporate documents, company-related media releases, videos and further interviews, but also confidential corporate material that was made available to me. Through analysis of the data, the following findings can be made: Most banks perceive climate change in terms of pressure: coercive pressure from clients, very limited pressure from regulators in the area of risk and as mimetic pressure to respond. Some banks, however, also perceive climate change to be a moral issue that demands their contribution to act. In those banks, climate change is regarded as a morally intense issue — this term being defined as a commonly accepted phenomenon with extreme consequences for the future of the society they are embedded in and that they serve. One bank mainly had a scientific view on climate change as a human-induced natural phenomenon. Depending on these first interpretations, the findings suggest that different languages are deployed to further distribute the issue across the organization. In the case of scientific and institutional interpretations, the main language used to sell the issue inside the organization and to justify its incorporation as part of strategy was economic. climate change was translated into financial risk, business opportunity or a potential for cost reduction. Banks that mainly interpreted climate change as a moral imperative to act, communicated this issue differently. They proffered moral arguments that were grounded in the organization’s mission to serve society and based their strategic engagement on this mission. Economic arguments were only deployed at the stage of operationalization of climate change. These different languages influenced the arenas where conversations linked to climate change took place and how widely attention was subsequently distributed across the organization. In the case of a scientific language, climate change was not incorporated into strategy and remained as a topic of general interest, managed by the corporate social responsibility (CSR) function. In the case of an economic language, climate change was strictly contained to a few of already existing governance channels and sometimes even ignored entirely. No further attention to the issue within the companies could be observed. Strategic engagement and change were strictly related to fields where economic impact could be generated at the lowest transaction cost possible. In the instances where moral language was used within governance channels, conversation yielded a different level of engagement. In these cases, governance structures provided a platform for generating a common and more holistic understanding of the phenomenon and its impacts. The attentional engagement with the complexity of the issue grew across the organization and led to creation of new governance communication channels to help address emerging issues. As a result, the strategic integration of climate change was more holistic and comprehensive. The thesis makes theoretical contributions to institutional theory, Attention Based View of the Firm, the issue selling literature and Governance Ethics. Its results also have important implications for practice.

Today, transportation is a central element of a society’s welfare in terms of economic, political and social success. It creates jobs, allows international cooperation between firms and countries, contributes to firms’ productivity, and enables social participation and interaction. It has become an essential intermediate. Consequently, changes in transportation affect many more sectors. Therefore, transportation of goods and persons has been growing immensely within the past decades. Against this background, intelligent transportation systems (ITS) gain importance in improving and changing transport. Technology can cover all modes (e.g. advanced driving systems, cooperative vehicle systems as vehicle-to-vehicle or vehicle-to-infrastructure communication, or mobile and multimodal information and ticketing systems). The deployment of ITS substantially changes our transportation system. These changes concern several elements and stakeholders of mobility, e.g. infrastructure, technology, users, providers, public institutions, or regulatory frameworks. Up to now, research on ITS strongly focused on technical aspects, i.e. technical development and feasibility. However, these aspects can only represent part of a comprehensive analysis of ITS. This dissertation gives systematic analysis of elements that in the end have a strong impact on the successful market introduction of ITS. It discusses different aspects of intelligent transportation systems providing a view on the framework conditions for intelligent transportation systems. This work, hereby, focuses on passenger transportation. It shows that the successful deployment of ITS requires multiple actors. Each of them can positively or negatively influence the success of ITS-deployment. This work specifically analyses the investment decisions of public authorities on the example of socio-economic cost-benefit analysis, the users’ willingness to accept a multimodal information and ticketing system and its impact on modal choice, and finally the municipalities’ role in providing mobility for specific user groups on the example of immigrants showing the potential and limitations of ITS. The work picks up research questions that have not been addressed before and contributes to a deeper understanding of the interplay of ITS as a technology and the society.