Search Results (163)

The decision-oriented conception of enterprise risk management (ERM), in which risks are quantified, aggregated, and weighed against return when business decisions are prepared, is increasingly regarded as the core of value-based management. In Germany, this conception acquired a legal foundation in 2021: Section 1 of the Stabilization and Restructuring Framework for Enterprises Act (StaRUG), the Financial Market Integrity Strengthening Act (FISG), and the amended Section 91(3) of the German Stock Corporation Act (AktG) require continuous monitoring of developments that may jeopardize the company’s continued existence, the initiation of “appropriate countermeasures” once a critical threshold is exceeded, and direct communication of the risk situation to the supervisory board. This paper argues that these obligations are difficult to satisfy without risk aggregation by Monte Carlo simulation and a quantitative risk-bearing-capacity concept, the same apparatus that underpins simulation-based valuation. The study asks whether listed firms report using it. The 2021 annual reports of 83 DAX- and MDAX-listed companies (excluding banks, exchanges, and insurers) are scored against eleven criteria capturing disclosed risk management practice. Because the instrument reads public reporting rather than internal process, the scores are interpreted throughout as a lower bound on practice. The average score is 0.73 of a possible 2.0 (about 37%). StaRUG is named by no company; FISG is by roughly 31%; and only a minority disclose adequate risk aggregation or a risk-bearing-capacity concept with a defined threshold. The pattern, near-universal assertion of readiness to act, combined with near-absence of the quantitative apparatus that would make such action triggerable, is consistent with ceremonial conformity decoupled from substantive practice. The value-relevant core of risk management thus remains largely unreported. Because the same apparatus generates the cost of capital and the decision value used in simulation-based valuation, the scores also function as a diagnostic of valuation capability: a firm that cannot aggregate its risks must import a discount rate rather than derive one. This has implications for valuation, governance, supervisory oard liability, and audit. Full article

The German industrial and energy sectors accounted for over 52% of national greenhouse gas emissions in 2024. This is influenced both by an ongoing demand for fossil fuels and the usage of emission-intensive raw and processed materials. With the current European directive on corporate sustainability reporting, a push is being made for companies to publish annual emission reports. However, as per a study conducted by the authors, small and medium-sized companies have difficulties accurately calculating emissions across their supply chain without relying on external service providers. As a scientific institute with a real production facility for metal machining, the ETA (Energy Technologies and Applications) Factory bridges the gap between academia and manufacturing enterprises. The authors have used this disposition to calculate scope 1–3 emissions for the factory as per the Greenhouse Gas Protocol across three years, while progressively attempting to automate data collection for all scopes. CO₂e emissions for the years 2022–2024 were 86.3 tCO₂e, 146.9 tCO₂e, and 86.1 tCO₂e, respectively. Emission categories were assessed in terms of relevance to the institute and subsequently used to analyze the emission activities of the factory. The highest contributor to emissions was electricity purchasing for 2022 and 2024, along with business travel for 2023. Within scope 3, the emissions produced by business travel showed the highest impact across all years, followed by either energy-related activities or purchased goods. The sensitivity of CO₂e factors was also investigated, showing discrepancies between 25% and 130% for the utilized CO₂e factor for steel. Automation of data collection benefits largely from implemented manufacturing systems, such as manufacturing execution systems or enterprise resource planning systems. Full article

This study constitutes the second part of a comprehensive investigation of the persistence of weighted average cost of capital (WACC) rates despite declining risk-free interest rates. While theory suggests that WACC should reflect lower risk-free interest rates and decline with falling government bond yields, empirical evidence reveals minimal adjustment in the reported WACC figures. Disclosed WACC of DAX40 companies remain between 7% and 8% as the yield of a ten-year German government bond fell from 4.1% to −0.2%. After the quantitative risk analysis (part I) systematically lacks market-based and fundamental explanations—demonstrating that neither systematic risk, overall market risk, earnings risk nor leverage increased sufficiently to justify this stability—this article addresses the resulting explanatory gap through qualitative inquiry. Employing a grounded theory methodology, we investigate the causes and consequences of persistent WACC through systematic analysis of 18 problem-centered semi-structured expert interviews (22 respondents comprising corporate finance executives, investment bankers, strategy consultants, auditors). The investigation reveals that behavioral economics (risk aversion, opportunism, subjectivity), organizational constraints (strategic path dependency, implementation complexity, financial criterion rigidity), and model-theoretic discretion (parameter averaging, analyst influence, supplementary risk adjustments) substantially shape practical WACC determination—factors that quantitative risk analysis cannot capture. Practitioners employ disclosed WACC strategically to reconcile investor return requirements with long-term operational stability, avoid audit friction, and hedge geopolitical–monetary risks—consequences that generate capital opportunity costs offsetting traditional value-maximization objectives. Combined quantitative and qualitative evidence yields actionable insights for value-based capital cost methodologies that are aligned with organizational and market realities. Full article

Manufacturing enterprises face increasing complexity in managing the complete life cycle of production systems, requiring integration of information from diverse sources to support timely maintenance, diagnostics, and operational decisions. This paper presents a comprehensive service-oriented architecture (SOA) for decision support in industrial life-cycle management, integrating real-time monitoring, predictive maintenance, and collaborative problem-solving across extended manufacturing enterprises. The architecture implements a three-layer service model comprising eight core collaborative services, three application services, and six life-cycle management services, orchestrated through a risk assessment module that monitors life-cycle parameters and triggers appropriate maintenance, diagnostics, or hazard prevention actions. The system was developed in the context of a European research project and validated in two industrial settings: automotive assembly lines at a German SME and air conditioning manufacturing at a Portuguese company. Results demonstrated substantial operational improvements, including reduced problem resolution time, lower diagnostic travel requirements, reduced spare-parts consumption, and increased structured problem registration. The original SOAP-based web-services implementation is further contextualized within the contemporary Industry 4.0 landscape through comparison with microservices architectures and discussion of integration paths involving OPC UA, Asset Administration Shells, and digital twins. The paper contributes a validated reference architecture for service-based industrial life-cycle management and clarifies its relevance as an early precursor of contemporary smart manufacturing approaches. Full article

The article examines the persistent stability of the weighted average cost of capital (WACC) disclosed by German DAX40 companies despite substantial declines in risk-free interest rates between 2004 and 2021. While theory suggests that WACC should reflect lower risk-free interest rates and decline as well with falling government bond yields, empirical evidence reveals minimal adjustment in reported WACC figures. Disclosed WACC of DAX40 companies remains between 7% and 8% as the yield of the ten-year German government bond fell from 4.1% to −0.2%. This study employs quantitative analyses to investigate whether systematic increases in risk exposure can explain this phenomenon. Using capital market data spanning from 2000 to 2023, we analyze five risk dimensions: systematic risk (beta factors), overall market volatility, risk aversion (lambda factors), earnings risk, and financial structure risk. Bootstrap analyses reveal a 41.5% reduction in beta factor variance, while volatility analyses demonstrate declining market risk exposure. The market price of risk analysis does not reveal definite findings. Earnings risk measures indicate improved financial stability, and debt ratios show modest declines. These findings suggest that observable risk parameters cannot explain persistent WACC levels, indicating a disconnect between theoretical WACC calculations and practitioner applications in investment project decision-making following value-based management principles. Full article

To match the fluctuating renewable energy generation with varying industrial process steam demand, electric heat storage is a viable solution for energy transformation. However, the adoption of this technology by companies hinges on its economic feasibility. Proponents often argue that leveraging spot market electricity prices provides a competitive edge over conventional energy systems without storage. However, additional factors, such as grid fees, levies and taxes can substantially inflate storage charging costs. This study investigates the integration of an electric latent heat storage for process steam within a conventional natural gas boiler system in a paper manufacturing case study under German industrial electricity price regulation to evaluate the effects of electricity prices alongside various operational energy cost factors and rebates through a mixed-integer linear program. Three storage sizes (1 MWh, 100 MWh, 100 GWh) and four electricity procurement configurations (status quo, optimized fixed-price contract, day-ahead only, and a mixed fixed/day-ahead strategy) are analysed. For 100 MWh, the mixed strategy cuts energy costs by about 10% versus day-ahead pricing and around 13.5% versus the status quo contract, lowering the specific electricity price from 6.2 to 5.3 ct/kWh, while emissions range from the slight increases to 23% reductions when grid fees are removed. Full article

Uncertainties and changes significantly shape the path of the design process, requiring situation-specific strategies and methods. Literature and practice highlight the implementation of agility as a means for companies to achieve competitive advantages in a dynamic development environment through more robust costumer integration and improved responsiveness. From a design science perspective, a key challenge remains the development of a theoretical model that explains how agility can be operationalized to realize benefits such as enhanced adaptability. Drawing on a literature review and six empirical studies on agile development of mechatronic systems in the German-speaking context, we propose a novel conceptualization of agility. Using systems thinking, we conceptualize agility as a construct and establish its relationship to agility as an attribute. Thus, the article provides a new methodological perspective on agility by explicitly linking its structural elements to established outcome perspectives from multiple domains. This work advances the methodological understanding of agility and identifies future research directions for the development of mechatronic systems, aiming to enrich the theory for its utilization. Full article

This study evaluates the degree to which small and medium sized enterprises (SMEs) are prepared to adopt smart manufacturing in contrast to large enterprises, a transition that depends on the effective use of the Internet of Things, artificial intelligence (AI), and advanced analytics. While many large multinational companies have already integrated such technologies, smaller firms still struggle because of tight budgets, limited technical expertise, and difficulties in scaling new systems. To capture these realities, the investigation refines the Initiative Mittelstand-Digital für Produktionsunternehmen und Logistik-Systeme (IMPULS) Industry 4.0 readiness model, which was initially developed to help German SMEs, so that it aligns with the circumstances faced by smaller manufacturers. A thorough review of published work first surveys existing readiness and maturity frameworks, highlights their limitations, and guides the selection of new, SME-specific indicators. The framework gauges readiness across six dimensions: strategic planning and organizational design, smart factory infrastructure, lean operations, digital products, data-driven services, and workforce capability. Each dimension is operationalized through a questionnaire that offers clear benchmarks and actionable targets suited to the current resources of each enterprise. Weaving strategic vision, skill growth, and cooperative support, the approach offers managers a direct path to sharper competitiveness and lasting innovation within a changing industrial landscape. Additionally, a separate Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis is provided for each dimension based on survey data offering decision-makers concise guidance for future investment. The proposed adaptation of the IMPULS framework, validated through empirical data from 31 SMEs, introduces a novel readiness index, diagnostic gap metrics, and actionable cluster profiles tailored to developing-country industrial ecosystems. Full article

Background: The present study aims to evaluate the effectiveness of ESYSTA^® (Emperra GmbH E-Health Technologies, Germany), a CE-certified digital health application made to support insulin-treated diabetes patients to improve their disease management through better self-empowerment. Methods: To evaluate the effectiveness of ESYSTA^®, data from patients who used ESYSTA^® for at least 12 months and participated in an originally prospective one-arm study were evaluated. This study was conducted in cooperation with the German health insurance company AOK Nordost (2012–2015). From a real-world data pool of insured AOK Nordost patients, a control group was matched to mimic a controlled trial that allows the use of ESYSTA^® to be compared with standard care in the context of a disease management program (DMP). Results: The study results show significant and clinically relevant reductions in HbA1c values of at least 0.4% in ESYSTA^® users after 6 months. After 12 months, users achieved, on average, an HbA1c reduction of approximately 0.7%. These reductions are more pronounced compared to the matched control group. Conclusions: The present study shows the effectiveness of the digital health application ESYSTA^®. Using a matched control group further increased the internal and external validity of the study results. Full article

The industrial sector’s increasing electricity demand (direct and indirect), driven by the electrification of processes and the production of green hydrogen, poses significant challenges for achieving decarbonisation goals. While switching to renewable electricity and offsetting emissions appears straightforward, the gap between current generation capacities and projected demand remains substantial. This article analyses survey data from the Energy Efficiency Index of German Industry (EEI), revealing that manufacturing companies aim to reduce 22.1% of their 2019 emissions by 2025 and 27.3% by 2030, primarily through on-site measures. However, given the slow pace of renewable capacity expansion and the increasing electrification across sectors, it becomes evident that the envisaged green electricity share of 80% by 2030 will require far more capacity than currently planned. To address this challenge, the article introduces a decarbonisability factor to better assess on-site versus off-site measures, highlighting the need for a strategic sequencing of efficiency and renewable generation. To support decision-makers, the article calls for improved data collection and periodic reassessment to account for changing geopolitical and economic conditions. Full article

Energy Efficiency Contracting (EEC) enables structural improvements in buildings by financing upgrades through the savings generated, eliminating the need for upfront investment by property owners. Although the model supports the energy transition and the reduction in GHG emissions, its adoption in the private sector faces relevant barriers such as the lack of information from the Energy Service Companies (ESCOs), distrust from clients in benefits with no upfront costs, and legal and behavioral barriers. To overcome these challenges, the FinSESCo platform, funded by Era-Net 2020 joint call, aims to channel private investments into building renovations and renewable energy installations via a crowdfunding portal. The platform allows individuals and organizations to finance small-scale renewable energy installations and energy efficiency measures for homeowners, tenants, and apartment owners. The new platform is likely to change the way EE investments are made and reach out to new audiences. A survey of 2585 German households sought to understand the drivers of EE investments, factors affecting the decisions, and their relationships with several demographic variables. Using a stepwise backward regression model, the study found significant differences between traditional investors in EE and those who would use the FinSESCo platform. Low- and medium-income households were more likely to take up the platform, and previous renewable energy ownership, experience with EEC models, and knowledge of crowdfunding further raised willingness to participate. The results point to the potential of the FinSESCo platform to expand EEC to new audiences, underlining its role of democratization and diversification of investments in building energy efficiency. Full article

In 2023, the EU set the target to reduce greenhouse gas (GHG) emissions by 55% until 2030 compared to 1990. The European Transport Policy sees battery–electric vehicles as a key technology to decarbonize the transport sector, so governments support the adoption through dedicated funding programs. Battery–electric trucks hold great potential to decarbonize the transport sector, especially for high-impact, heavy-duty trucks. Theoretical life-cycle assessments (LCA) predict a lower CO₂e emission impact from battery–electric trucks compared to conventional diesel trucks. Yet, one concern repeatedly mentioned by potential users is the doubt about the ecological advantage of battery–electric vehicles. This is rooted in the problem of a much higher CO₂e impact of the lithium-ion batteries production process. As heavy-duty trucks have a much larger battery, the hypothec in the construction phase of the vehicle is significantly higher, which must be regained during the use phase. Although theoretical assessments exist, CO₂e evaluations using real-world application data are almost nonexistent, as the technology is at the very start of the adoption curve. Exemplary is the fact that there were only 72 registered battery–electric heavy-duty tractor trucks throughout the whole of Germany at the start of 2023. This paper aims to deliver one of the first real-world quantifications using operational data for the actual reduction impact of battery–electric heavy-duty trucks compared to diesel trucks. This study uses the methodology of the life-cycle assessment approach according to ISO 14040/14044 to gain a systematic and holistic technology comparison. For this LCA, the system boundaries are considered from cradle to cradle. This includes the production of raw materials and energy, the manufacturing of the trucks, the use phase, and the recycling afterward. The research objects of this study are battery–electric and diesel Volvo FM trucks, which have been in use by the German freight company Nord-Spedition GmbH since May 2023. The GREET^® database is used to assess the emission impact of the material production and manufacturing process. The Volvo tractor trucks resemble a critical case, as the vehicles have a battery size of 540 kWh—around 11 times larger than a usual passenger car. The operation data is directly provided by the logistics company to observe fuel/electricity consumption. Other factors are assessed through company interviews as well as a wide literature research. Finally, a large question mark concerning total emissions lies in the cradle-to-cradle capabilities of large-scale lithium-ion batteries and the electricity grid mix. Different scenarios are being considered to assess potential disposal or recycling paths as well as different electricity grid developments and their impact on the overall balance. The findings estimate the total emissions reduction potential to range between 34% and 69%, varying with assumptions on the electricity grid transition and recycling opportunities. This study displays one of the first successful early-stage integrations of battery–electric heavy-duty trucks into the daily operation of a freight company and can be used to showcase the ecological advantage of the technology. Full article

The SOLID-S is an inventory assessing six dimensions of organizational (software) security culture, which is currently available in English. Here, we present the German version, SOLID-SD, along with its translation process and psychometric analysis. With a partial credit model based on a sample of N = 280 persons, we found, overall, highly satisfactory measurement properties for the instrument. There were no threshold permutations, no serious differential item functioning, and good item fits. The subscales’ internal consistencies and the inter-scale correlations show very high similarities between the SOLID-SD and the original English version, indicating a successful translation of the instrument. Full article

Food loss and waste is a recurring issue of discussion that food processing companies can no longer avoid. Society, stakeholders, and directives are demanding more and more communication on sustainability issues. However, only just under half of food processing companies stated that they provide consumer information on food waste. However, consumer information is only one way of communicating about food waste. The aim of this study is to identify key themes for relevant online communication on food waste that companies should be communicating to support the German National Strategy for the Reduction of Food Waste and to determine whether companies are already using these themes online. For this purpose, national strategy experts were asked through a questionnaire which topics were relevant according to the national strategy. The websites of 105 food processing companies were analyzed using content analysis to determine the status quo of food waste communication and assessed for relevance according to the national strategy. This paper presents five prioritized clusters of topics for relevant online communication on food waste for companies. The top priorities for communication, Cluster 1, are “Business Goals”, “Business Strategy”, “Process”, “Consumer Information”, “In-house Transparency”, and “Utilization of Remaining Materials”. The status quo shows that 43.8% of the companies provided online content regarding food waste. Through theory-driven content analysis, the three most common topics were identified in relation to food waste, namely the following: “Business Goals”, “Product and Packaging”, and “Consumer Information”. Companies communicated in line with the priority clusters. However, the frequency of topics and the way they are communicated varies widely. Only “Consumer Information” and “Business Goals” from Cluster 1 are commonly communicated. During the COVID-19 pandemic and the war in Ukraine, there was a decline in publications on food waste, and afterward, more consumer-oriented content was published rather than communicating the relevant topics. Companies are expected to have two objectives in their communication: to communicate with consumers and to be transparent about their targets, data, and utilization of food waste. The results also show differences between subsectors, the occurrence of the topics over time, and examples. The findings are aimed at policymakers, researchers, and companies as a starting point for improving the consistency and transparency of food waste communication in line with the national strategy. The results are also of international interest due to the common challenges of food waste and international food companies. Full article

Innovation efficiency plays a key role in ensuring that sustainability efforts are implemented effectively and yield maximum benefits. This study emphasizes the impact of government regulations and environmental resource-saving approaches on innovation efficiency. Within this study, environmental resource-saving approaches include activities against air pollution, water pollution, energy consumption, waste, and hazardous substances. By analyzing data from 1196 German companies statistically, this study examines the importance of governmental and legal regulations as well as engagement in environmental activities for green innovation. The findings reveal that companies prioritizing regulations and environmental practices achieve higher innovation output from the same innovation input than other firms, leading to improved innovation efficiency. In a developed country, companies focusing on sustainability aspects exhibit a higher level of innovation efficiency. For them, embracing regulations and environmental practices are firm resources that raise the possibility of competitive advantage. Companies embracing these aspects hence contribute to both their own success and the well-being of the environment. Full article