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Although the business model (BM) has become a top priority in management research, existing literature still offers a confusing and partial picture about how to leverage BM designs for new product development (NPD) because of two limitations. First, research has paid little attention to different BM designs' effects on NPD performance. Second, few empirical studies have examined the moderating roles of firms' learning capabilities, such as big data analytics capabilities (BDA capabilities). This study aims to investigate the effects of BM novelty design and BM efficiency design on NPD performance and the ways in which BDA capabilities moderate these effects.

A literature review provides the model and hypotheses. Using a sample of 208 Chinese firms, the authors conducted an empirical test following multiple regression analysis.

The results demonstrate that BM novelty design has a positive effect on NPD performance while BM efficiency design takes the form of an inverted U-shape. Moreover, BDA capabilities (i.e. BDA technology capability and BDA management capability) have complicated moderating effects on BM novelty design- and BM efficiency design-NPD performance relationships.

The results may be affected by both the context (solely in China) and type (cross-sectional) of the data set. This study has explored the moderating effects of BDA capabilities, further studies considering other significant practices such as social media usage, could yield richer insights that would help validate the results of this study.

First, we suggest that managers should be explicitly aware of the different impacts of BM novelty design and BM efficiency design on NPD performance. Second, this study encourages managers to build relevant BDA capabilities to work with BM designs to improve NPD performance.

This is one of the first studies to investigate BM designs' complicated influences on NPD success and explore BDA capabilities' moderating effects on the BM design-NPD performance linkage.

The purpose of this paper is to examine the claim that the application of human factors (HF) knowledge can improve both human well‐being and operations system (OS) performance.

A systematic review was conducted using a general and two specialist databases to identify empirical studies addressing both human and OS effects in examining manufacturing OS design aspects.

A total of 45 empirical studies were found, addressing both the human and system effects of OS (re)design. Of those studies providing clear directional effects, 95 percent showed a convergence between human effects and system effects (+, + or −,−), 5 percent showed a divergence of human and system effects (+,− or −,+). System effects included quality, productivity, implementation performance of new technologies, and also more “intangible” effects in terms of improved communication and co‐operation. Human effects included employee health, attitudes, physical workload, and “quality of working life”.

Future research should attend to both human and system outcomes in trying to determine optimal configurations for OSs as this appears to be a complex relationship with potential long‐term impact on operational performance.

The application of HF in OS design can support improvement in both employee well‐being and system performance in a number of manufacturing domains.

The paper outlines and documents a research and practice gap between the fields of HF and operations management research that has not been previously discussed in the management literature. This gap may be inhibiting the design of OSs with superior long‐term performance.

The purpose of this paper is to provide an illustrated step-by-step guideline of the partial least squares factorial structural equation modeling (PLS FAC-SEM) approach. This approach allows researchers to assess whether and how model relationships vary as a function of an underlying factorial design, both in terms of the design factors in isolation (i.e. main effects) as well as their joint impact (i.e. interaction effects).

After an introduction of its building blocks as well as a comparison with related methods (i.e. n-way analysis of variance (ANOVA) and multi-group analysis (MGA)), a step-by-step guideline of the PLS FAC-SEM approach is presented. Each of the steps involved in the PLS FAC-SEM approach is illustrated using data from a customer value study.

On a methodological level, the key result of this research is the presentation of a generally applicable step-by-step guideline of the PLS FAC-SEM approach. On a context-specific level, the findings demonstrate how the predictive ability of several key customer value measurement methods depends on the type of offering (feel-think), the level of customer involvement (low-high), and their interaction (feel-think offerings×low-high involvement).

This is a first attempt to apply the factorial structural equation models (FAC-SEM) approach in a PLS-SEM context. Consistent with the general differences between PLS-SEM and covariance-based structural equation modeling (CB-SEM), the FAC-SEM approach, which was originally developed for CB-SEM, therefore becomes available for a larger amount of and different types of research situations.

This study aims to understand the underlying mechanism and boundary conditions of the IKEA effect in self-expressive mass customization (MC). It examines the effect of the extent of choice in MC toolkits in terms of perceived value of self-designed products, as well as how self-expression mediates this effect and what kind of consumers are more inclined to experience such effect.

Two experiments were conducted, using online MC toolkits. In total, 393 consumers participated in the experiments. Data collected were analyzed using t-tests, analyses of variance, path analyses, bootstrap analyses and spotlight tests.

The results show that offering a greater extent of choice in MC toolkits to consumers provides a greater opportunity for self-expression, resulting in higher product valuation. Further, consumers who have high romanticism in aesthetic preference and high self-esteem are more inclined to influences associated with this effect.

This research adds to the literature on the IKEA effect in self-expressive MC by identifying a key antecedent (extent of choice), its underlying mechanism (self-expression), and two boundary conditions (aesthetic preference and self-esteem). The results of this study provide firms with a better understanding of how they can improve their self-expressive MC strategies.

We study research designs where a binary treatment changes discontinuously at the border between administrative units such as states, counties, or municipalities, creating a treated and a control area. This type of geographically discontinuous treatment assignment can be analyzed in a standard regression discontinuity (RD) framework if the exact geographic location of each unit in the dataset is known. Such data, however, is often unavailable due to privacy considerations or measurement limitations. In the absence of geo-referenced individual-level data, two scenarios can arise depending on what kind of geographic information is available. If researchers have information about each observation’s location within aggregate but small geographic units, a modified RD framework can be applied, where the running variable is treated as discrete instead of continuous. If researchers lack this type of information and instead only have access to the location of units within coarse aggregate geographic units that are too large to be considered in an RD framework, the available coarse geographic information can be used to create a band or buffer around the border, only including in the analysis observations that fall within this band. We characterize each scenario, and also discuss several methodological challenges that are common to all research designs based on geographically discontinuous treatment assignments. We illustrate these issues with an original geographic application that studies the effect of introducing copayments for the use of the Children’s Health Insurance Program in the United States, focusing on the border between Illinois and Wisconsin.

The purpose of this paper is to examine the symbolic representations of non-users compared to the life experiences of users related to a luxury brand. In particular, the study examines whether product design mediates the relationship between antecedent factors of country-of-origin effect and product experience, and it also investigates the moderating effects of reference groups (non-users vs users) on the relationship between antecedent factors of country-of-origin effect and product design related to a luxury brand, namely, the Mercedes-Benz C-Class or E-Series.

A sample of convenience of 272 persons classified as non-users and users is investigated. An online questionnaire was used and 28 statements are included in the analysis based on a seven-point Likert scale.

The study reveals that the country-of-origin effect for the model of non-users and users has a very good fit with current data and is statistically significant. It also reveals that all relationships are significant except for price consciousness to product design and for brand familiarity to price consciousness. There is also partial mediation of product design between antecedent factors and product experience. Furthermore, the moderating effect of reference groups appears to play an important role, as it impacts the relationship between antecedent factors of the country-of-origin effect and product design/product experience.

This study indicates that the non-users’ group based on the hypothetical purchases of a luxury brand with a strong country image has a different country-of-origin effect to the users’ group of the same luxury brand. Moreover, the study concludes that there are statistically significant differences between the non-users’ group versus users’ group of a luxury brand (Mercedes-Benz), and these differences are concerned with the constructs of brand familiarity, brand commitment, product design and product experience. Finally, the study reveals that “price consciousness” is not relevant for luxury brands. Managerial implications, limitations of the study and future research directions are discussed.

The aim of this paper is to investigate how different design elements of retailer coupons increase the attitudinal loyalty towards retailers.

Three design elements are manipulated in a 2x2x2 experimental design. Data is analysed using structural equation modeling.

The results demonstrate that addressing customers personally and face value have a positive impact on attitudinal loyalty. Surprisingly, the positive effect of personalization is stronger than that of typical variations in face value. In contrast, a high minimum purchase amount restriction has a negative total effect on loyalty and neutralizes the positive effects generated by personalization. The results illustrate further that personalization influences loyalty via self-reference and enjoyment independently of any cognitive evaluation of the coupon, while face value and the minimum purchase amount require at least some cognitive processing to have a loyalty impact.

Future studies can use the developed framework to test the impact of other design elements, promotion types or loyalty schemes.

The results underline that personalization offers opportunities for increasing loyalty without the necessity of large investments. As these effects can occur without redemption, coupon promotions should not be evaluated based on redemption rates only.

The study extends existing research by focusing on retailer coupons, analyzing the combined loyalty effects of three coupon design elements and developing a framework to analyze direct and indirect loyalty effects as well.

The purpose of this paper is to examine the effects of physical environment design (PED) and its antecedents on consumers’ emotional well-being (EWB). Drawing on place identity and emotional theories, the study aims to provide a new perspective to retail store experiences.

A survey of 800 respondents was conducted in London, out of which 764 responses were constructively used. The data was collected from international retail outlets, and structural equation modelling was used to analyse the data.

The empirical results show that PED has a positive effect on consumers’ EWB. Among the antecedents, visual identity does not have any significant effect on PED and EWB. In contrast, communication had a significant effect on PED but did not have any effect on EWB, and further, cultural heritage had a positive effect on both PED and EWB. Further, moderator analysis identifies the boundary conditions under which specific theories hold.

The value of this paper lies in its potential to be used for creating the perfect design planning in retail stores. Significant implications for managers and researchers are highlighted.

This paper presents an innovative approach to develop the principles of retail store’s PED to support the EWB of consumers.

This study aims to use place identity theory to examine the concept of physical environment design (PED) and its effects on consumers’ emotional well-being (EWB) dimensions such as sensorium, behaviour and happiness.

The authors used a qualitative approach. Thirty interviews were conducted among participants drawn from the city of London, which is one of the flourishing and world’s most famous international trade centre, providing paramount access to the global market. The data was analysed using thematic analysis.

The findings suggest that PED is defined precisely using the terms like atmosphere, appealing, attractive, impressing, inviting, ambient, compelling and design cues. The findings also suggest that PED has a positive effect on consumers’ sensorium, behaviour and happiness. However, these effects are lower when the retail stores have unwelcoming themes than when they have mesmerising PED. The different names can also be advantageous, specifically when online shopping dominates today’s retail industry. The findings also illustrate that the theoretical model used in this study is valid and suggest that PED has positive effects on consumers’ sensorium, behaviour and happiness.

To the best of the authors’ knowledge, while other authors tried to identify the effect of PED on consumers buying behaviour, this study is the first one to show how PED effects consumers’ sensorium, behaviour and happiness. The results of personal interviews highlight the importance of design elements and a gap in the application of novel elements to improve consumers’ sensorium, behaviour and happiness.

This study aims to investigate the combined effects of product design and environment congruence on consumers’ aesthetic, affective and behavioral responses.

Two lab experiments with a 2 (high-level design cues vs low-level design cues) × 2 (congruent environment vs non-congruent environment) between-subjects design were conducted to test the hypotheses. The experimental stimuli (product: digital camera; environment: product display in a retail environment) were presented in a 3D simulation environment using a large TV (Experiment 1) and a stereoscopic virtual reality headset.

The results support the notion that product design cues elicit more positive aesthetic and affective responses. Environment congruence, on the other hand, plays a moderating role; product design cues elicit more favorable consumer responses in a congruent environment. In contrast, no such effect was found in a non-congruent environment.

Creating a congruent environment is only effective for well-designed products. In contrast, for products with low-level design elements, the congruence of promotional environment is not instrumental and may not elicit more favorable responses. Hence, such products can simply be presented in a generic display, especially considering the significant costs associated with designing, building and setting up a congruent display.

Despite the empirical findings supporting the significant role of product design and environment congruence on consumers’ perceptual and behavioral responses, there is a paucity of research on the combined effect of these two factors. The present investigation is an attempt to fill this gap and challenges the generalizations made in previous research suggesting that a product’s environment must be aligned with the design elements embedded in the product.