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This study explores whether the unique organizational form of family firms helps to mitigate the negative effects caused by the announcement of product recalls.

The authors use an event study, for a sample of 2,576 product recalls in the United States (US) automobile industry, between January 2010 and June 2021.

The authors found that stock market's reaction to a product recall announcement is less negative for family firms. This superior performance is partially driven by the family firms' long-term investment horizons and higher strategic emphasis on product quality. However, the relationship between family ownership and cumulative abnormal returns around product recall announcements is nonlinear as the impact of family ownership starts by being positive but becomes negative for higher levels of family ownership. The authors also find that family firm's chief executive officer (CEO) and managerial ownership influence positively the stock market reaction to product recall announcements.

This work has several implications for family firms' management as well as for investors and financial analysts. First, as higher managerial ownership is associated with a greater emphasis on product quality, decreasing stock market losses when a product recall occurs, family firms should consider increasing equity-based compensation. Second, as there seems to exist an optimal proportion of family ownership, family firms should consider the risks of increasing too much their ownership share. Third, investors and financial analysts can use the results in the study to help them in their investment and trading decisions in the stock market.

The authors extend the knowledge of product recalls by studying the under-researched role of the flexible, internally focused culture of family businesses on the stock market reaction to product recalls.

This paper aims to examine the interrelation between two innovating strategies (product and process) on total factor productivity (TFP) growth and the dynamic linkages between these strategies, for Colombia. The authors first explore whether ex ante more productive firms are those that introduce innovations (the self-selection hypothesis) and if the introduction of innovations boosts TFP growth (the returns-to-innovation hypothesis). Second, the authors study the firm’s joint dynamic decision to implement process and/or product innovations. The authors use Colombian manufacturing data from the Annual Manufacturing and the Technological Development and Innovation Surveys.

This study uses a four-stage procedure. First, the authors estimate TFP using a modified version of Olley and Pakes (1996) and Levinsohn and Petrin (2003), proposed by De Loecker (2010), that implements an endogenous Markov process where past firm innovations are endogenized. This TFP would be estimated by GMM, Wooldridge (2009). Second, the authors use multivariate discrete choice models to test the self-selection hypothesis. Third, the authors explore, using multi-value treatment evaluation techniques, the life span of the impact of innovations on productivity growth (returns to innovation hypothesis). Fourth, the authors analyse the joint likelihood of implementing process and product innovations using dynamic panel data bivariate probit models.

The investigation reveals that the self-selection effect is notably more pronounced in the adoption of process innovations only, as opposed to the adoption of product innovations only or the simultaneous adoption of both process and product innovations. Moreover, our results uncover distinct temporal patterns concerning innovation returns. Specifically, process innovations yield immediate benefits, whereas implementing both product innovations only and jointly process and product innovations exhibit significant, albeit delayed, advantages. Finally, the analysis confirms the existence of dynamic interconnections between the adoption of process and product innovations.

The contribution of this work to the literature is manifold. First, the authors thoroughly investigate the relationship between the implementation of process and product innovations and productivity for Colombian manufacturing explicitly recognising that firms’ decisions of adopting product and process innovations are very likely interrelated. Therefore, the authors start exploring the self-selection and the returns to innovation hypotheses accounting for the fact that firms might implement process innovations only, product innovations only and both process and product innovations. In the analysis of the returns of innovation, the fact that firms may choose among a menu of three innovation strategies implies the use of evaluation methods for multi-value treatments. Second, the authors study the dynamic inter-linkages between the decisions to implement process and/or product innovations, that remains under studied, at least for emerging economies. Third, the estimation of TFP is performed using an endogenous Markov process, where past firms’ innovations are endogenized.

With the growth in online purchasing, the return of distressed shipments also increased. The return experience of the online shopper has a huge impact on their next purchase decision-making. This explanatory research aims to identify and empirically explain factors related to the online buyer’s return experience that influence the repurchase intention of young buyers.

Primary data were collected from 235 active online young buyers who have experienced returning the goods through a structured questionnaire. Structural equation modeling is used for analyzing the data.

This study reveals that an online return policy leniency strongly supports service recovery quality, expected return convenience, buyer trust and satisfaction, which lead to repurchase intentions. Moreover, return satisfaction positively impacts repurchase intention while mediating young buyer trust.

This study is one of the few relevant pieces of research that would benefit e-tailers to improve their product return policy and compel young buyers’ intention to make a repeat purchase.

As e-commerce has expanded rapidly, online shopping platforms have become widespread in India and throughout the world. Product return, which has a negative effect on the E-Commerce Industry's economic and ecological sustainability, is one of the E-Commerce Industry's greatest challenges in light of the substantial increase in online transactions. The authors have analyzed the purchasing patterns of the customers to better comprehend their product purchase and return patterns.

The authors utilized digital transformation techniques-based recency, frequency and monetary models to better understand and segment potential customers in order to address personalized strategies to increase sales, and the authors performed seller clustering using k-means and hierarchical clustering to determine why some sellers have the most sales and what products they offer that entice customers to purchase.

The authors discovered, through the application of digital transformation models to customer segmentation, that over 61.15% of consumers are likely to purchase, loyal customers and utilize firm service, whereas approximately 35% of customers have either stopped purchasing or have relatively low spending. To retain these consumer segments, special consideration and an enticing offer are required. As the authors dug deeper into the seller clustering, we discovered that the maximum number of clusters is six, while certain clusters indicate that prompt delivery of the goods plays a crucial role in customer feedback and high sales volume.

This is one of the rare study that develops a seller segmentation strategy by utilizing digital transformation-based methods in order to achieve seller group division.

Gender diversity is known to trigger creative and relationship conflicts alike, the former a boon for innovation and the latter a bane. This study aims to explore the possibility of a gender mix that is “just right” for balancing the intensities of varied forms of conflict to boost innovation in firms in India. Specifically, this paper investigated the presence of an optimal level of women as a percentage of the firm’s full-time permanent employees (Percent-Women) that maximized the firm’s likelihood of product innovation (Product–Innovation–Likelihood).

Logistic regression analyses of firm-level data of Indian establishments of varied sizes and industries from World Bank Enterprise Surveys 2014 was performed. Instrumental variable addressed the potential endogeneity of Percent-Women.

The analysis demonstrated an inverted U-shaped relationship between Product–Innovation–Likelihood and Percent-Women. Product–Innovation–Likelihood peaked when Percent-Women lay between 35% and 58%, i.e. when the firm was gender-balanced or close to it.

The finding of an optimal level of female inclusion presents to firms a defined target of gender mix to be achieved, failing to which they may be limiting their innovation potential. It compels firms to view gender diversity as a business imperative with definite implications for their long-term performance.

For India, the demonstrated relationship between workplace gender diversity and innovation brings additional reason and urgency to public initiatives, such as female literacy, for boosting female economic engagement. Innovation can power the next stage of the Indian growth story by engaging the heretofore insufficiently tapped female worker.

By demonstrating an optimal degree of female inclusion at which innovation potential peaks, the study reconciled opposing theories of diversity-driven conflicts and went beyond the commonly observed simple linear relationship between female inclusion and innovation. Further, the paper focused on India, a major developing economy with a vast female populace and growing innovation ambitions but scarcely researched for gender diversity’s role in innovation.

This study aims to investigate whether auditors compromise their independence for economically important clients in family business settings.

The authors empirically examine the research question based on China for the years 2011 to 2020. The dependent variable is the auditors’ propensity to issue modified audit opinions, which is a proxy for auditor independence. The authors use relative client audit fees as a proxy for client importance. To address endogeneity issues in the selection of family firms, the authors use the two-stage least squares regression model and, subsequently, the propensity score matching and Hausman firm fixed effect modeling.

This study reveals that the propensity to issue modified audit opinions is positively correlated with client importance. Big-N auditors are more likely to issue modified audit opinions for their economically important family firm clients, whereas such evidence is not found for non-Big-N auditors. Results are consistent and robust to endogeneity test and sensitivity analysis.

This study enriches the literature on auditor independence and the effect of family firms’ ownership structure factors on audit reporting behavior for their economically important clients. Findings may prove useful for managers and practitioners interested in family business.

This research draws on drive reduction theory and mental accounting theory to understand how the prospect of reselling used items can influence consumer feelings of consumption guilt and impact their willingness to purchase new products.

We conducted two studies with between-subjects designs to explore this relationship. In Study 1, we examined the correlation between consumers' perceived guilt and their willingness to buy a new product, considering their awareness of the product’s resale potential. Study 2 delved into the aspect of reselling a similar old product already owned by the consumer.

The findings suggest three key insights. First, consumers' awareness of resale potential significantly affects their guilt perception and purchasing decisions. Second, the resale reference price (RRP) can decrease guilt perception but increase the intention to buy a new product. Lastly, when consumers are aware of the resale value of a previously owned product that is similar to the desired new product, the effect of the RRP on their purchasing intent is mediated by consumer guilt.

This research fills a theoretical gap by empirically exploring the emotional motivations behind consumer resale behavior. It presents a novel perspective on how resale activities can shape feelings of guilt and impact purchasing decisions. This offers important implications for understanding the dynamics of consumer behavior in the second-hand market.

This study aims to better understand tourists’ revisit intention from their perspectives of past and expected experience and to investigate whether the formation of revisit intention differs between tourists from different nationalities.

The sample consisted of 250 Indonesian tourists who have visited Australia and 275 Australian tourists who have visited Indonesia. The data were analysed by conducting structural equation modelling and multi-group analysis with group comparisons.

Indonesian tourists’ intention to revisit Australia was influenced by past feeling experience and expected experience, while Australian tourists’ intention to revisit Indonesia was influenced by past feeling and relating experiences and expected experience. Both samples differ significantly in terms of relations between experiences and revisit intention. The relationship between past thinking experience and revisit intention was positive for Indonesians but negative for Australians. The relationship between past relating and expected experience was positive for Australians but negative for Indonesians. In addition, the influence of expected experience on revisit intention was stronger for Australian than Indonesian tourists.

To the best of the authors’ knowledge, this study, for the first time, enriches tourism literature in understanding revisit intention by investigating revisit intention in relation to both past and expected experiences, along with examining nationality differences in the revisit intention formation.

In the competitive retailing environment, retailers who provide service experiences that stand out from the competition can gain a competitive advantage. Increasingly, an important aspect of the service experience involves product returns, in particular, the fairness of returns policies and procedures. Previous research studies support that interpersonal justice and informational justice relate positively to consumer attitudes and behaviors. In this paper, the authors examine the relative effects of interpersonal justice and informational justice on return satisfaction, positive word-of-mouth (PWOM) and trust. Additionally, the authors examine the moderating effects of returns process convenience and returns policy restrictiveness as indicators of procedural justice.

A scenario-based experiment methodology was used to test the relationships of interest.

Results support that the effects of interpersonal justice on the outcome variables are stronger than the effects of informational justice. There is also support for a moderating effect of returns process convenience on the relationships between interpersonal justice and each outcome variable, as well as partial support for the moderating effect of returns policy restrictiveness on the relationship between interpersonal justice and PWOM.

The research extends previous work on the effects of justice on customer outcomes. Results support the importance of retailers treating customers with fairness during the returns experience and further support the benefits of providing a convenient returns experience.

As rural nonfarm activities grow in developing countries, less attention is being paid to the opportunities they may provide for women. The purpose of this study is to examine the gender-differentiated impact of nonfarm diversification strategies in rural Senegal.

This study uses data collected from the Senegalese poverty monitoring survey and employs an instrumental variable (IV) approach and a multinomial endogenous treatment model to investigate the extent to which diversification strategies lead to improved outcomes for rural women and their households.

While nonfarm diversification is a male-dominated livelihood strategy, rural women make the most of it, regardless of whether they diversify into low- or high-return nonfarm activities. At the individual level, diversification improves rural women’s well-being through large income-increasing effects and higher empowerment but has no effect on rural men’s well-being. At the household level, the authors find that, when only women diversify, households have lower per capita income but are less likely to be food insecure than when only men or both genders diversify.

This study is based on cross-sectional data, making it impossible to examine the dynamic effects of nonfarm diversification strategies on well-being outcomes.

This study contributes to the current literature on rural livelihood diversification. While much attention has been paid to the feminization of agriculture, remarkably little is known about the expanding role of rural women in the nonfarm sector.