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Given a product or service, the number of its installed user base has a significant positive effect on the existing users’ loyalty and new users’ conversion. This effect is conceptualized as network externalities in economics. Network externalities are supposed to be particularly striking in nowadays online business-to-business (B2B) platforms, but yet the mystery behind their effects on user loyalty to online B2B platforms remains to be delicately unraveled. The purpose of this paper is to discover the factors driving users’ loyalty, especially buyers’ loyalty, to online B2B platforms, by highlighting the impacts of network externalities on loyalty and other mediating factors.

A conceptual model of buyer loyalty under network externalities is elaborated. The reliability and validity of the instruments of the latent model constructs are assessed by confirmatory factor analysis, and the hypothesized causal relationships among the constructs are tested by structural equation modeling, on 710 valid buyer samples collected from a famous online B2B platform in China.

The analysis demonstrates that: perceived value, user satisfaction and switching costs are the major predictors of buyer loyalty to online B2B platforms characterized by network externalities; network externalities positively account for buyer loyalty by contributing to perceived value, user satisfaction and switching costs; and direct network externality (measured by perceived network size and perceived external prestige) has a significant effect on indirect network externality (measured by perceived compatibility and perceived complementarity).

The findings allow the authors to conclude meaningful managerial implications for online B2B service providers to build up loyal user bases through improving users’ perceptions of network externalities, switching costs and value.

The purpose of this article is to study how we may identify the link between rising externality costs and corporate social responsibility (CSR) by using a market‐centric approach to CSR.

The paper uses indicators measuring CSR performances triggered by rising externality costs due to EU legislation on electric and electronic equipment (EEE). The case study includes three leading companies in the global electric appliances industry.

The EU legislation on EEE has increased the externality costs of the electric appliances industry. Some companies only meet the minimum requirements of the legislation, while others go beyond what is required and engage in CSR. It is found that the strongest CSR impact is related to output externalities in the authors' sample in the EEE sector, while the strongest CSR impact in the clothing sector, in an earlier study, is related to input externalities.

The findings suggest that governments need to adapt their CSR policies not only to general sector‐specific features, but in addition to the potential for reducing negative externalities in different parts of the value chain in each sector.

This article contributes to a better understanding of how government policies raise the externality costs of industries, which in turn lead these industries to strengthen their CSR performance. The study also demonstrates the usefulness of a market centric approach to CSR.

The post industrial revolution era, driven by an expansion of the global energy system (Jaccard, 2006), has witnessed an exponential increase in the consumption of finite and non-renewable resources, coupled with substantial destruction of the natural environment. Weizsacker and Jesinghaus (1992) observed that the consequence of further growth in a conventional sense would not be worldwide prosperity, but rather lead to destruction, putting in jeopardy prosperity and indeed the very basis of life. It follows that the continuance of such economic growth, measured by traditional means is unsustainable and illogical in the long run.

South Africa's logistics cost measurement was expanded to include externality costs, and scenarios based on the key exogenous risks were developed to inform mitigation strategies. This paper aims to discuss these issues.

The research approach is quantitative, based on a gravity-orientated freight flow model, a road transport cost model, actual transport costs for other modes, a warehousing cost survey, an inventory delay calculation (to inform warehousing cost calculations and inventory financing costs) and an externality cost calculation.

Transport cost pressures are expected to deteriorate due to the increasingly negative outlook for the oil price and the internalisation of externality costs. The nature of these forces compels transport cost challenges to be addressed strategically through collaborative, industry-wide and even nationwide initiatives.

Key limitations are inconsistent commodity classification schemes across information sources, and incomplete container content data. The researchers are collaborating with information providers to address these issues and refine model accuracy and forecasting.

The exogenous risks strengthen the argument for new approaches to South Africa's logistics cost challenges driven by the high densities of corridor freight flows.

The inclusion of externality costs highlighted the negative environmental impact of the current modal configuration and provides impetus for change.

Major advancements to logistics cost modelling were made by incorporating externality costs and developing scenarios for risk mitigation. Freight flow data granularity (in excess of one million records) allows both aggregation to national-level intelligence to inform policies, large-scale infrastructure investments and industrial positioning, and disaggregation to enable practical application.

The purpose of this paper is to present the results of South Africa’s national freight demand model and related logistics cost models, and to illustrate the application of the modelling outputs to inform macrologistics policy.

Spatially and sectorally disaggregated supply and demand data are developed using the input-output (I-O) model of the economy as a platform, augmented by actual data. Supply and demand interaction is translated into freight flows via a gravity model. The logistics costs model is a bottom-up aggregation of logistics-related costs for these freight flows.

South Africa’s logistics costs are higher than in developed countries. Road freight volumes constitute 80 per cent of long-distance corridor freight, while road transport contributes more than 80 per cent to the country’s transport costs. These challenges raise concerns regarding the competitiveness of international trade, as well as the impact of transport externalities. The case studies highlight that domestic logistics costs are the biggest cost contributor to international trade logistics costs and can be reduced through inter alia modal shift. Modal shift can be induced through the internalisation of freight externality costs. Results show that externality cost internalisation can eradicate the societal cost of freight transport in South Africa without increasing macroeconomic freight costs.

Systematic spatially disaggregated commodity-level data are limited. There is however a wealth of supply, demand and freight flow information collected by the public and private sector. Initiatives to create an appreciation of the intrinsic value of such information and to leverage data sources will improve freight demand modelling in emerging economies.

A spatially and sectorally disaggregated national freight demand model, and related logistics costs models, utilising actual and modelled data, balanced via the national I-O model, provides opportunities for increased accuracy of outputs and diverse application possibilities.

X = multiple interpretations

The purpose of this paper is to consider competition’s issues between European market firms, such as Euronext, and multilateral trading facilities, following Markets in Financial Instruments Directive’s enforcement. This new domestic competition is adding to the existing international competition among financial centers. While diversification of local trading services can improve the international competitiveness of a financial center, the fragmentation of order flows can harm its attractiveness.

The theoretical setting analyzes the interaction between heterogeneous who experiment network externalities, and heterogeneous local trading services providers (alternative platforms and incumbent) in an international context. The authors compare two forms of organizations of the market: a consolidated market, and a fragmented market with alternative platforms – in both cases, in competition with a foreign universe.

The results of this study point out the importance of the trade-off between diversification and externalities. With alternative platforms entry, enhanced competition decreases fees and redistributes informed investors between the foreign market and the domestic one. The increase of domestic platforms’ number then has more complex effects on externalities (of information and liquidity). When the liquidity externalities are low, the diversification of financial platforms increases the number of investors on domestic centers. When liquidity externalities are not negligible, despite the decrease of fees, this same diversification orientates more informed investors to the foreign center.

This model is the first to analyze jointly the internal and international competition of trading platforms with heterogeneous investors.

The purpose of this paper is to propose a conceptual model of harm indicators of negative externality (NE) of organizational practices, to help practitioners and researchers identify the harmful aspects associated with the unsustainable internal efficiency focused organizational practices to achieve a sustainable society.

Initially, the harm indicators of NE of organizational practices are theoretically explored. Subsequently, the direct costs associated with the harm indicators of NE of work intensification, one of the strategic organizational practices, on employees and the community are examined using published information.

There are clear indications of direct costs for handling the psychological and social aspects of harm of organizational practices on employees, and the employee work‐related health treatment costs to the community.

The published research used in estimating the direct costs of harm indicators on employees and the community in this paper are not originally designed to examine the NE of organizational practices. Therefore, future studies need to explore the costs of harm indicators of NE of organizational practices on society.

An understanding of the costs of harm indicators of NE of organizational practices on society can help organizations to be proactive to introduce sustainable human resource management strategies, so as to minimize the harmful aspects of NE before it starts curbing employees making positive contributions to their families and the community.

The model of harm indicators of NE provides a new insight – that over‐utilization of human resources for an organization's internal efficiency purpose – has unsustainable impact on society.

The purpose of this paper is to explore the question: how does socially responsible buying/sourcing applies to human talent? The authors examine this question in the unique context of Major League Baseball’s (MLB) relationship with the “buscones” (agents) representing prospects from the Dominican Republic.

Using game theory, the authors model how MLB teams create rules to curb unethical behavior within the supply chain. The principal relationship the authors will model is that of the franchises and the prospects. This relationship has as its core an investment decision by the individual franchises: should they incur costs to ameliorate the context in which the prospects find themselves, or not? The costs of investment, whether it is in academies, general education, a revision of recruiting policies or something else, must be weighed against the negative externalities that are likely to result if the exploitation of the DR recruits becomes common knowledge to other stakeholders, particularly the public.

The model shows that when investments are roughly evenly distributed, the teams successfully vote to outlaw unethical behaviors and thus collectively avoid the negative externalities. However, when investments are asymmetric, the teams invested in the current system vote against a ban to maintain a competitive edge, even though the system imposes costs on all of those involved.

This paper serves as the initial paper that examines international sourcing, social responsibility and baseball. As international sport clubs/franchises continue to source athletic talent from around the globe, the issues discussed in the paper are both original and pertinent.