For Teachers of Business Studies

Relational Economics in Practice. An Introduction and User Guide

Wieland, Josef | Baumann Montecinos, Julika

The LEIZ Relational Economics in Practice case study series is an open-access resource for educators and students of business studies. This offer by the Leadership Excellence Institute Zeppelin (LEIZ) of Zeppelin University in Germany includes cases created by its team of researchers, including professors, postdocs, and PhD candidates. In this introduction and case study guide, Josef Wieland and Julika Baumann Montecinos elaborate on the conceptual foundations and analytical tools to approach the case studies.

Grounded on the theory of Relational Economics, the cases provide an opportunity to apply this theory to real-life business challenges, including the step-by-step tool of the Stakeholder Model of Relational Decision Making. The cases in this series follow a structured scheme, including case descriptions, key challenges, core questions, and theoretical discussions based on cutting-edge research. Topics covered address AI implementation, large project management, global organisation and transformation, transcultural learning, and managing transcultural teams.

Keywords: relational economics, transcultural management, cultural complexity, organizational governance, network governance, relational view of the firm

Implementing Artificial Intelligence in the SME “Schraube 4.0”

Wiesmüller, Sabine | Heer, Sina

The case study “Implementing Artificial Intelligence in the SME ‘Schraube 4.0’” explores how a German machining company adopts AI technology. It emphasises Relational Economics and AI governance, focusing on stakeholder perspectives, ethical issues, and the transition to a data-driven business model.

Key topics include stakeholder analysis, management strategies, and the ethical implications of AI. The study also tackles challenges such as technical difficulties, skilled labour shortages, and responsible AI implementation. It highlights the importance of involving stakeholders and considering ethical aspects to leverage AI for innovation and efficiency. The aim is to demonstrate how to reduce leadership complexity through effective stakeholder analysis, adoption strategies, and management practices. This case study is designed to provide valuable insights for students and business leaders alike.

Keywords: AI governance, network governance, transformation management, relational economy

Challenges of Optimising Large Project Management through Global Resource Allocation

Belser, Lukas | Niedenführ, Matthias | Schwengber, Jessica

The Plant & Machine Engineering Company is a German-based company specialising in the engineering of plants and machines. It is headquartered in Germany but boasts 13 subsidiaries spread across four continents, with each subsidiary having 1-5 locations comprising offices and production sites. The Chief Operating Officer and the management team believe the company needs to combine resources from different subsidiaries, such as global access to a pool of specialised skills, to tackle labour shortages and meet the demands of fluctuating project sizes.

In a global value network, one of the main challenges management faces is involving local decision-makers in the subsidiaries to ensure a seamless customer experience. The case study sheds light on the challenges faced due to a highly complex intra- and inter-organizational environment. For instance, the language and communication barriers were not fully considered during the expansion process, leading to misunderstandings and communication gaps, hampering collaboration. A reorganisation towards a management network that promotes interaction and learning among different subdivisions and departments, as well as a change in the organisational culture, were suggested.

Keywords: global project management, intra-organisational networks, network governance, organisational governance, relational view of the firm, transcultural learning, transcultural management, inclusive communication tools

“We are truly a global organization!” The documentary "American Factory" under the lens of the Transcultural Learning Model

Grünfelder, Tobias | Schwengber, Jessica | Baumann Montecinos, Julika

The case study “We are truly a global organisation!” examines the Oscar-winning documentary “American Factory” from a transcultural perspective and invites students to learn from a real case. The documentary, available on Netflix, covers the experiences of the Chinese company Fuyao in setting up a new factory in a shuttered General Motors plant near Dayton, Ohio, in 2016.

It has drawn international attention to the complexities of work in the era of globalisation and offers unique insights into the experiences, daily lives and challenges of the workers, management and leadership of the organisation. By applying the transcultural learning model to the documentary and individual scenes, a reflection on missed opportunities for mutual learning processes, recommendations and learnings can be derived.

Keywords: transcultural learning, organisational learning, cultural diversity, community of practice, mutual learning, leadership competences

Managing Transcultural Teams

Schwengber, Jessica

This case study focuses on the management of transcultural teams. It describes a situation in which a manager is faced with a high level of cultural complexity in the execution of a project. The case study stimulates the reader to reflect on the trade-off between the innovation potential of diversity and the barriers to collaboration in highly heterogeneous teams. The concepts of the contact hypothesis, communities of practice and transcultural competences are presented as possible theoretical concepts that can be helpful in the search for practical solutions to overcome challenges related to cultural complexity.

Keywords: management, transcultural teams, contact hypothesis, communities of practice (CoP), transcultural competencies, cultural complexity

FIFA World Cup Qatar 2022: An Opportunity for Transcultural Learning?

Grünfelder, Tobias

There was a mixed reaction when Qatar was announced as the host nation for the FIFA World Cup 2022 in December 2010. On one hand, there was celebration on the Qatari side, though it was followed by controversy, particularly about human rights, working conditions, and treatment of LGBT people and women.

Efforts to reform the labour system, including a partnership with the International Labour Organization, aimed to improve worker rights and protections. Despite these reforms, the situation highlighted a wider cultural conflict and emphasised the complexity of applying universal human rights standards in different cultural contexts. Overall, this case study looks at the FIFA World Cup from the perspective of a sponsoring company and an architectural firm and applies a transcultural perspective to identify potential learning opportunities.

Keywords: transcultural learning, transcultural competence, transcultural management, network governance, cultural relativism, universalism, international negotiations

Organisational Transformation of Network Organisations

Belser, Lukas

This case study focuses on organisational transformation and management of network organisations. It describes the situation of a manager from a strategic corporate development department who has the task of redeveloping the company’s business model while considering challenges and opportunities within the network. The aim of the case study is to elaborate on the managerial complexity of today’s globalised network organisations and how to manage such kinds of structure adequately.

Furthermore, the discussion highlights which crucial circumstances outlined in the description that need to be considered and which kind of theoretical concepts, such as the resource view of the firm and governance structures, can be applied to and relational discuss the given questions effectively.

Keywords: organisational governance, network governance, transformation management, strategic corporate development, relational view of the firm

Corporate Ethical Dilemmas and Relational Decision Making

Wieland, Josef | Schwengber, Jessica

This case study examines the ethical dilemmas faced by multinational corporations operating in diverse cultural and economic contexts, focusing on the interplay of financial incentives, corporate responsibility, and legal compliance. The narrative centres on John, a production manager at the American sporting goods manufacturer FIT, who discovers child labour practices at a supplier in Emergia, despite the company's strict code of conduct and international labour standards. The case highlights the tension between John's personal financial needs, corporate policies, and the socio-economic realities of the supplier's region, where child labor is culturally entrenched but legally prohibited. 

Key challenges include reconciling conflicting values, enforcing regulations, and addressing reputational risks. The study employs a stakeholder analysis to identify the interests and resources of involved parties, such as employees, local communities, and regulatory bodies. It also explores environmental parameters such as economic stress, intercultural conflicts, and communication gaps. 

Potential solutions span ethical, technical, economic, and legal dimensions, emphasising proactive measures like educational programs and improved working conditions for parents rather than punitive actions. The case underscores the importance of relational decision-making and shared responsibility in global supply chains, advocating for solutions that balance legal compliance with cultural sensitivity. It references international frameworks such as the UN Global Compact and the German Supply Chain Act, illustrating the growing legal accountability for human rights violations. Ultimately, the study calls for a nuanced approach to corporate ethics that addresses root causes while upholding universal standards.

Keywords: child labour, code of conduct, corporate ethical dilemmas, cultural complexity, due diligence regulations, international and national labour standards, labour protection laws, local solutions, relational decision-making, risk of reputational loss, setting and taking, unintended consequences of compliance enforcement.

Balancing Value Chain Due Diligence and Stakeholder Relationships

Wieland, Josef | Niedenführ, Matthias

This case study examines the ethical and operational challenges faced by Schneider & Sons, a German garment company, as it navigates the complexities of global supply chain due diligence. The narrative centres on the company’s Asia representative, who discovers potential child labour practices among indirect suppliers in India, China, and Vietnam. A specific issue Schneider & Sons may encounter with fabric sourcing from China involves the Uyghur Forced Labour Prevention Act, which prohibits goods linked to forced labour in Xinjiang. It remains unclear whether their Guangdong supplier sources cotton from Xinjiang, potentially creating problems with U.S. Customs when importing goods. This revelation poses significant ethical, legal, and reputational risks, particularly in light of impending NGO campaigns and stringent due diligence regulations such as the German Supply Chain Act and the EU Corporate Sustainability Due Diligence Directive. 

Key themes include the tension between cost efficiency and ethical sourcing, stakeholder relationships, and the broader implications of global value chain accountability. The study highlights the dilemma of balancing business interests with human rights obligations, especially when suppliers operate in regions with differing cultural and legal norms. 

A stakeholder analysis identifies employees, local partners, NGOs, and regulatory bodies as critical actors, each with competing interests and influence. Potential solutions explored include engaging local partners for transparency, pursuing sustainability certifications like the Global Organic Textile Standard (GOTS), and leveraging due diligence as a strategic advantage. The case underscores the growing pressure on companies to ensure ethical practices across multi-tiered supply chains, even when direct contractual relationships are absent. By addressing these challenges proactively, Schneider & Sons could mitigate risks while enhancing its sustainability profile and market positioning.

Keywords: child labour, corporate ethical dilemmas, cultural complexity, due diligence regulations, international and national labour standards, ramifications, local solutions, risk of reputational loss, stakeholder model, standard setting and taking.

Entertaining an Increasingly Complex World

Grünfelder, Tobias | van der Schoor, Christian 

This case study examines the complex challenges faced by Netflix as a global media company navigating diverse cultural, political, and regulatory environments. It analyses three real-world cases where Netflix balances creative freedom, Corporate Social Responsibility (CSR), and stakeholder expectations while striving to “entertain the world”. 

The first case, “From Russia with Love”, discusses Netflix’s decision to suspend operations in Russia following the Ukraine invasion, focusing on geopolitical tensions, local regulations, and brand reputation. Students debate whether Netflix should have stayed in Russia or withdrawn. The second case, “Netflix and the Dave Chappelle Controversy”, addresses ethical dilemmas related to free speech and inclusivity. After a controversial comedy special, Netflix faced backlash from LGBTQ communities and must consider how to manage criticism, corporate culture, and balance artistic expression with social responsibility. The third case highlights challenges in Brazil, Saudi Arabia, India, and the Philippines, focusing on content standardisation versus localisation. Netflix has faced opposition for content that conflicts with local norms, prompting students to develop a CSR strategy that aligns global standards with local expectations. 

Through these cases, students engage in stakeholder analysis, ethical reflection, and strategic decision-making to propose solutions that balance business interests, cultural sensitivity, and CSR.

Keywords: organisational governance, network governance, transformation management, strategic corporate development, relational view of the firm

Shared Value Creation as a Strategic Value Creation Approach in the Context of the EU AI Regulation

Heer, Sina | Wiesmüller, Sabine

This case study explores how AI-Factory GmbH, a Munich-based startup specialising in AI-driven quality control for the automotive industry, leverages the Shared Value Creation (SVC) approach to navigate the regulatory landscape of the EU AI Act. Focused on their flagship product, QualityAI, the startup faces the dual challenge of fostering innovation while complying with stringent high-risk AI regulations, which classify their technology as critical for autonomous vehicle safety. The study highlights the strategic opportunity for AI-Factory to transform regulatory compliance into a competitive advantage by aligning with societal and ethical expectations. 

Key themes include the tension between innovation and regulation, Germany’s role as a business location, and stakeholder engagement. Despite macroeconomic and regulatory hurdles, the founders analyse Germany’s research infrastructure, industrial tradition, and talent pool as strengths. A detailed stakeholder matrix identifies investors, employees, industry associations, and society as key actors, emphasising collaborative value creation through initiatives like AI skills training programs. 

The case underscores the EU AI Act’s risk-based framework and its implications for startups, advocating for proactive compliance as a driver of long-term growth. It also examines broader industry trends, such as the global AI race and slow AI adoption in Germany, while proposing measures to enhance competitiveness through ethical AI practices. By integrating SVC into their business model, AI-Factory aims to balance economic viability with social responsibility, positioning itself as a leader in responsible AI innovation.

Keywords: EU AI Act, AI Regulation, Shared Value Creation (SVC), Stakeholder Analysis, Responsible AI, Corporate Strategy, Competitive Advantage through Compliance.