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Fierce competition in the crowdfunding market has resulted in high failure rates. Owing to their dedication and efforts, many founders have relaunched failed campaigns as a second attempt. Despite the need for a better understanding, the success of campaign relaunches has not been well-researched. To fill this research gap, this study first theorizes how founders’ learning may enhance their competencies and influence investors’ attribution of entrepreneurial failure. The study then empirically documents the extent and conditions under which such learning efforts impact campaign relaunch performance.

This study examines 5,798 Kickstarter-relaunched campaigns. The founders’ learning efforts are empirically captured by key changes in campaign design that deviate from past business practices. Word movers’ distances and perceptual hashing algorithms (pHash) are used separately to measure differences in campaign textual descriptions and pictorial designs.

Differences in textual descriptions and pictorial designs during campaign failure–relaunch are positively associated with campaign relaunch success. The impacts are further amplified when the previous failures are more severe.

This study is one of the first to examine the success of a campaign relaunch after an initial failure. This study contributes to a better understanding of founders’ learning in crowdfunding contexts and provides insights into the strategies founders can adopt to reap performance benefits.

Prior research has advanced several explanations for social media influencers' (SMIs’) success in the burgeoning computer-mediated marketing environments but leaves one key topic unexplored: the moderating role of SMIs in service failure and recovery strategies.

Drawing on a social constructivist perspective and an inductive approach, 59 in-depth interviews were conducted with millennials from three European countries (Italy, France and the United Kingdom). Building on social influence theory and commitment-trust theory, this study conceptualises four distinct pathways unifying SMIs' efforts in the service failure recovery process.

The emergent model illustrates how source credibility and message content moderate service failure severity and speed of recovery. The insights gained from this study model contribute to research on the pivotal uniqueness of SMIs in service failure recovery processes and offer practical explanations of variations in the implementation of influencer marketing. This study examines a perspective of SMIs that considers the cycle of their influence on customers through service failure and recovery.

The study suggests that negative reactions towards service failure and recovery are reduced if customers have a relationship with influencers prior to the service failure and recovery compared with the reactions of customers who do not have a relationship with the influencer.

The authors' research examines how negative electronic word-of-mouth (e-WOM) alters focal customers' post-recovery justice perceptions and attitudes to determine their future behavior with the service provider. Specifically, this paper develops and tests a conceptual model to investigate how negative e-WOM alters focal customers' perceptual and attitudinal outcomes after the service recovery experience. It also examines the post-recovery effect of negative e-WOM on focal customers’ willingness to patronize the service after their recovery experience.

To test the hypotheses, two pretests and two experimental studies with created scenarios in the retail context were conducted.

The authors' findings reveal that services are judged during and well beyond failure and recovery occurrences. To maintain a loyal customer base, service managers should develop processes that address service complaints both within and beyond the service consumption stage. The authors also find that despite a favorable recovery, focal customers gravitate toward the failure experience and develop unfavorable attitudes toward the service provider, leading to likely defections.

The authors' research demonstrates the persuasive power of negative e-WOM at the post-service recovery stage, making a unique contribution to the service recovery literature. This research also contributes to the persuasive effect of negative e-WOM, demonstrating message context as a boundary condition of negative e-WOM effects. In general, the authors' work highlights the importance of understanding the psychological processes involved in eliciting the persuasive influence of negative e-WOM in the post-service recovery stage that may lead to the defection of “so-called” successfully recovered customers.

User-generated content (UGC) and service failure have attracted considerable marketing inquiry over the last two decades. Previous studies primarily focused on the outcome of service failure and the impact of UGC on perceived failure severity. This article departs from previous studies as it examines the moderating role of UGC on the relationship between service failure recovery (SFR) and customer–brand relationship.

Building on commitment-trust theory and from a phenomenological hermeneutical perspective, this article explores this phenomenon through the interpretation of 60 in-depth interviews with millennials from three European countries: Italy, France and the UK. An analysis of the data was conducted using a qualitative approach to understand the main constructs and relationships derived from the data.

This study conceptualises four distinct moderating characteristics of UGC in the SFR process: satisfaction with experience and brand, dissatisfaction with experience and brand, satisfaction with brand and dissatisfaction with brand. The insights from the responsiveness, empathetic response, counterfactual thinking and brand salience (RECB) framework contribute to research on UGC and shed light on the relationship between SFR and consumer–brand relationships in the fashion industry.

Overall, this study demonstrates that customer interactions with UGC significantly affect their responses to, and relationships with, a brand. The proposed framework opens up interesting avenues for future research on the moderating role of UGC on the relationship between SFR and customer–brand relationships.

With the increasing use of robots in service scenarios in hospitality industries, service failure frequently occurs during the service process, and consumers may react differently toward humanoid vs. nonhumanoid robots due to different performance expectancies. This study focuses on consumers' reactions to service failures by humanoid vs. nonhumanoid robots and the different impacts on brand forgiveness and revisit intentions through performance expectancy for different genders.

The study used a sample of 280 participants to test the moderated chain mediation model. The participants were instructed to report their performance expectancies for humanoid/nonhumanoid robots and imagine a hotel check-in scenario in which a service failure occurs. Brand forgiveness, brand revisit intention and other demographic information were assessed.

The results show that consumers have higher performance expectancy for nonhumanoid robots. This performance expectancy generates brand forgiveness and revisit intentions for male consumers but does not affect female consumers' forgiveness and revisit behaviors.

This study contributes to the literature by taking a long-term perspective to investigate the outcomes after service failure, providing evidence for pending questions in previous studies and enriching studies of gender differences. Additionally, this study provides practical implications to consider the use of anthropomorphism in robots, advocate for functional confidence in robots and target consumers across genders.

This study aims to empirically examine the influence of management control systems (MCSs) on knowledge acquisition from innovation failure (KAFIF), which further impacts empowerment, creativity and organizational innovation. This study argues that enabling an MCS positively influences KAFIF, whereas controlling the use of an MCS negatively influences KAFIF. Further, KAFIF positively impacts empowerment, creativity and organizational innovation.

This study aims to create a comprehensive stimulus–organism–response (S-O-R) framework. This framework includes an MCS (belief, interactive, boundary and diagnostic) as a stimulus, KAFIF as an organism and creativity, empowerment and organizational innovation as responses. The data were gathered using an online survey administered to a sample of 321 employees working in India’s micro, small and medium enterprises and analyzed using partial least squares structural equation modeling.

The results indicate that there is no correlation between belief control and the acquisition of knowledge from the failure of innovation, interactive control has a positive association with KAFIF and boundary control has no relationship with KAFIF. Diagnostic control has a significant negative association with KAFIF. Further, this study found that KAFIF positively associates with empowerment, creativity and organizational innovation.

This study is among initial studies that examine the influence of MCSs on KAFIF, which impacts empowerment, creativity and organizational innovation. Further, it helps be one of the initial literature on studying KAFIF rather than innovation success.

This research investigates the role of customer forgiveness as the result of online service recovery transparency in predicting customer engagement. It also examines the moderating roles of timeliness and personalization in this proposed model.

An online survey study using retrospective experience sampling and a scenario-based experimental study were conducted to test the proposed hypotheses.

Customer forgiveness positively influences customer engagement and plays a mediating role in the relationship between service recovery transparency and customer engagement. Additionally, timeliness and personalization moderate the positive influence of service recovery transparency on customer forgiveness. The positive influence of service recovery transparency on customer forgiveness is more apparent when levels of timeliness and personalization decrease.

To retain focal customers' engagement after a service failure, firms must obtain their forgiveness. One of the firm's online complaint handling strategies to increase the forgiveness level of focal customers is to provide a high level of service recovery transparency (i.e. responding to their complaints in a public channel), especially when the firm is unable to respond to online complaints quickly or provide highly personalized responses.

This research provides new insights into the underlying mechanism of customer engagement by applying the concept of customer forgiveness. It also contributes to the social influence theory by applying the essence of the theory to explain how other customers' virtual presence during the online complaint handling influences the forgiveness of focal customers in order to gain their engagement. Additionally, it provides insight into the conditions under which the role of service recovery transparency can be very effective in dealing with online complaints.

This study investigates whether a firm that has experienced an environmental accident (EA) is less likely to conduct a product recall. If true, it would indicate that EAs tempt firms to hide operational problems that need to be revealed. The logic is that both events are operational failures that damage a firm's reputation and share price. Following an EA, a firm may avoid a discretionary product recall to avoid providing additional evidence of operational incapability and social irresponsibility and thereby triggering amplified reputational and market penalties.

The dataset is compiled from several public and private sources and includes 4,355 product recalls, 153 EAs and 120 firms from the industries that often recall products, including automotive, pharma, medical device, food and consumer products. The study timeframe is 2002–2013. Empirical models are evaluated using hazard modeling.

Results show that EAs reduce the probability of a product recall by 32%, on average. Effect sizes are larger when accidents are more frequent or more severe and when recalls are less severe. Through post hoc analyses, the study finds support for the proposed mechanism that firms avoid recalls due to reputational concerns, provides evidence that EAs can have a lengthy impact on recall behavior, and shows that firms are more likely to avoid recalls managed by the CPSC and NHTSA than recalls managed by the FDA.

Prior studies in operations management (OM) have not examined the impact of one negative event on another. This study finds that EAs tempt firms to hide operational problems that need to be revealed. While recalling fewer defective products is of concern to consumers and regulators, should EAs influence a broader set of discretionary operational decisions, such as closing/relocating a production facility, outsourcing production or conducting a layoff, study implications increase significantly.

This study aims to quantify and prioritize the main causes of lean wastes and to apply reduction methods by employing better waste cause identification methodologies.

We employed fuzzy techniques for order preference by similarity to the ideal solution (FTOPSIS), fuzzy analytical hierarchy process (FAHP), and failure mode effect analysis (FMEA) to determine the causes of defects. To determine the current defect cause identification procedures, time studies, checklists, and process flow charts were employed. The study focuses on the sewing department of a clothing industry in Addis Ababa, Ethiopia.

These techniques outperform conventional techniques and offer a better solution for challenging decision-making situations. Each lean waste’s FMEA criteria, such as severity, occurrence, and detectability, were examined. A pairwise comparison revealed that defect has a larger effect than other lean wastes. Defects were mostly caused by inadequate operator training. To minimize lean waste, prioritizing their causes is crucial.

The research focuses on a case company and the result could not be generalized for the whole industry.

The study used quantitative approaches to quantify and prioritize the causes of lean waste in the garment industry and provides insight for industrialists to focus on the waste causes to improve their quality performance.

The methodology of integrating FMEA with FAHP and FTOPSIS was the new contribution to have a better solution to decision variables by considering the severity, occurrence, and detectability of the causes of wastes. The data collection approach was based on experts’ focus group discussion to rate the main causes of defects which could provide optimal values of defect cause prioritization.

This study examines the effect of stable institutional investors on firms' product quality failures. Furthermore, the authors investigate the channels through which institutional ownership stability enhances product quality management.

This study uses probit, ordered probit and negative binomial regression frameworks to investigate the research questions. In addition, the authors utilize the three-stage least-squares to address the endogeneity issues.

Using a sample of product recall incidents from 2012 to 2021, the authors find that firms with more stable institutional ownership have a lower probability, frequency and severity of recall incidents and adopt a proactive product recall strategy. Institutional investors with significant and persistent holdings improve quality management by reducing overinvestment and the use of option-linked and relative performance executive compensations. Furthermore, the influence of stable institutional owners on product quality failures is more pronounced in firms with low managerial ability and specialist CEOs. Lastly, the empirical evidence demonstrates that stable holdings by active investors have a more substantial impact on reducing product recalls than passive and other stable institutional holdings.

This study is the first to examine the impact of institutional ownership stability on firms' product recalls. The authors contribute to the literature on the benefits of stable institutional ownership on firm outcomes and the determinants of product quality failures.