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In this chapter we demonstrate the construction of inverse test confidence intervals for the turning-points in estimated nonlinear relationships by the use of the marginal or first derivative function. First, we outline the inverse test confidence interval approach. Then we examine the relationship between the traditional confidence intervals based on the Wald test for the turning-points for a cubic, a quartic, and fractional polynomials estimated via regression analysis and the inverse test intervals. We show that the confidence interval plots of the marginal function can be used to estimate confidence intervals for the turning-points that are equivalent to the inverse test. We also provide a method for the interpretation of the confidence intervals for the second derivative function to draw inferences for the characteristics of the turning-point.

This method is applied to the examination of the turning-points found when estimating a quartic and a fractional polynomial from data used for the estimation of an Environmental Kuznets Curve. The Stata do files used to generate these examples are listed in Appendix A along with the data.

This study examines the influence that the positive valence intensity of online consumer reviews (OCRs) has on the benefits that individuals perceive they have derived from consumption. A distinction is made based on whether the performance obtained during the consumption was high or low, that is, whether the product/service met the objectives set by the consumer.

The study is a between-subjects experiment with two manipulations: the positive valence intensity of OCRs (highly positive vs neutral-indifferent) and the performance obtained by the consumer (high vs low). The manipulations were measured on 11-point Likert-type scales, the lowest perception being scored at 0 (strongly disagree) and the highest at 10 (strongly agree). A total of 249 useable questionnaires were returned.

The results demonstrated that the influence of positive OCRs on the consumer's perception of consumption benefits follows concave curvilinear functional forms for low performance (inverted U-shaped) and convex for high performance (U-shaped). Thus, highly positive OCRs not corroborated by performance lead to negative perceptions, whereas neutral-indifferent OCRs verified by performance create positive perceptions.

This study goes beyond the immediate influence of positive OCRs on purchases and argues that their influence remains important for the individual's final perception of the consumption benefits that she/he, in the event, received. In addition, the results of the present study show that OCRs are important reference points from which individuals make social judgments and comparisons during consumption. Finally, this study provides theoretical and empirical support to explain the U-shaped functional forms associated with the influence of OCRs.

This chapter considers the analysis of a cost-effectiveness dataset from an econometrics perspective. We link cost-effectiveness analysis to the net benefit regression framework and explore insights and opportunities from econometrics and their practical implications. As an empirical illustration, we compare various econometric techniques using a cost-effectiveness dataset from a published study. The chapter concludes with a discussion about implications for applied practitioners and future research directions.

The purpose of this paper is twofold. First, the author aims to explore if there is a curvilinear relationship between the network rent, generated as a combination of the relational performance of two dyads and the network profile of the triadic supply chains. Second, the author seek to recognize the ideal network profile, consisting of the properties at the node and relationship level, that provides the highest network rents, and thus enables to increase the competitive advantage of supply chains.

The paper opted for an exploratory study using a survey of triads forming supply chains. In order to reveal the capability of yielding the network rent in the examined triads, multiple regression analysis with interaction effects was employed. Having confirmed the existence of supernormal profit, the author investigated the relationship between the network rent and the network index. Finally, a cluster analysis was conducted to compare the network profile in the group of triads generating higher network rents with the cluster yielding relatively lower network rents.

The obtained findings show that a combination of the relational performance of two dyads contributes to generating the network rent, and thus ensures a more favorable competitive position of supply chains. The results of the study also indicate that there is a significant curvilinear, inverted U-shaped relationship between the network profile and the competitive advantage of triadic supply chains. In addition, the following network properties appear to be particularly important for yielding higher network rents: network centrality, betweenness, network density and network size.

The study contributes to the theory by testing if the network rent can be yielded as a combination of the relational performance of two dyads in the triadic supply chains. The research also indicates that there is a curvilinear relationship between the network rent and the network profile of examined supply chains. Moreover, the study also addresses the link between the network profile, consisting of the multiple network properties simultaneously, in relation to the competitive advantage of supply chains.

This study explores the effects of different types of technology lock-in on enterprise innovation performance. On this basis, the authors aim to provide technological innovation suggestions for the long-term development of Chinese enterprises.

A total of 211 high-tech enterprises in China were taken as the research sample. Data were collected through questionnaire surveys and secondhand data. Linear and nonlinear regression models were used to test the hypotheses.

Different types of technology lock-in had different effects on enterprise innovation performance. Initiative lock-in and passive lock-in showed an inverted U-shaped relationship with innovation performance. Economies of scale were positively correlated with innovation performance, while self-lock-in was negatively correlated with it.

This research can help enterprises reconceptualize technology lock-in. It can also help enterprises in different stages of development carry out targeted technological innovation and management strategies.

This research enriches our understanding of technology lock-in. By breaking with previous conceptualizations of a simple linear relationship between technology lock-in and innovation performance, this study proposes and confirms different technology lock-in has different relationships with enterprise innovation performance. This study is important for enterprises to reassess their technology lock-in state and carry out targeted technological innovation strategies. This research enriches the theory of path dependence and its combination with other theories. And this study also reveals the current research on technology lock-in is insufficient.

Servitized manufacturers can leverage close relationships with external providers of product-related services to mobilize value creation and improve the responsiveness of their offerings to customer needs. The purpose of this paper is to investigate the economic link between the relational embeddedness of external service providers, as arising from the key dimension of dependence, and firm performance.

The study evaluates financial statement data pertaining to 190 dyadic relationships of servitized manufacturers with service providers operating in downstream channels and accounting for more than 10 per cent of their revenue.

The results indicate that service providers’ dependence has an inverted U-shaped relationship with manufacturers’ return-on-assets (ROA), via non-linear effects on return-on-sales and asset turnover. The results therefore suggest that the observed U-shaped relationship for ROA is driven by diminishing returns of dependence in terms of both differentiation ability and operational efficiency.

Future research could examine other dimensions of embeddedness, as well as contingency factors that may influence the embeddedness–performance relationship.

The study conclusions suggest that managers of servitized firms should foster the embeddedness of external service providers, but they should also be careful to maintain an adequate level of dependence to maximize benefits and minimize liabilities.

The study adds to the limited research delving into inter-firm relationships between servitized manufacturers and external service providers. It empirically demonstrates the economic effects of service providers’ dependence-based embeddedness, challenging the general assumption about a monotonic positive effect of relational embeddedness.

Crowdfunding campaigns reflect the personality traits of the entrepreneur, influencing the chances of a successful fundraising. In this study, the authors focus on three different entrepreneurs’ personality dark traits: narcissism, Machiavellianism and psychopathy. Through a text analysis of 338 equity-crowdfunding campaigns in the UK, the authors identified narcissistic expressions used by entrepreneurs in their pitches, and their impact on funding success. The authors found an inverted U-shape relationship between entrepreneurs’ narcissism and the crowdfunding success. On the other hand, entrepreneurs’ psychopathy has a negative linear relationship with crowdfunding success. This study contributes to the entrepreneurship literature, highlighting the importance of displayed entrepreneurs’ personality traits in engaging with crowd investors.

Drawing on the principal-principal conflict and identity literatures, the purpose of this paper is to investigate the Agency Problem Type II-bis in the context of family business. Specifically, the authors hypothesize that the size of the family owner group is related to firm growth and that this relationship is moderated by the extent to which the family identifies with the firm.

The hypotheses are tested on a sample of 265 medium and large German family firms (FFs) via moderated hierarchical regression analysis.

The main findings suggest that business family identity moderates the inverted U-shaped relationship between the size of the family owner group and firm growth in such a way that FFs with medium-sized family owner groups and high levels of business family identity reach higher firm growth.

In the context of FFs fully owned by one family, family owners might have different strategic preferences, goals, and identities, thus potentially making them subject to the conflict that could arise among the different family owners in relation to growth expectations. Recognizing this problem could help family owners find potential solutions to ensure the well-being of both the family and the business.

The combination of family ownership structure and family ownership dynamics affects firm growth. Challenging the homogeneity of the family owner group, the authors highlight the role of Agency Problem Type II-bis in hindering growth of FFs. A finer-grained view of principal-principal conflicts in FFs is thus discussed.

The relation between size and growth in banking firms in emerging economies has not been adequately addressed in the literature. By employing data for 1992-2014, the purpose of this paper is to examine the relationship between growth and productivity and how it interacts with ownership.

The longitudinal nature of the data suggests that the appropriate technique for the analysis is panel data econometrics. Accordingly, consistent with prior research, the author employs a fixed effects model. Besides accounting for firm-level observables, the author controls the economic environment and bank ownership by employing real GDP growth and ownership dummies.

The evidence appears to suggest that growth improves through both active and passive learning, the magnitude of the former far outweighing that of the latter. These results are remarkably robust: both baseline regressions and sensitivity tests point to similar conclusions.

To the best of the author’s knowledge, the paper makes two original contributions. First and more broadly, it tests the relationship between growth and productivity for banks in a leading emerging economy. Second, it distinguishes between two kinds of learning – active and passive – and explores which of them are more relevant for growth.

This paper aims to examine how a firm’s capability affects its political networking in emerging economies and how the institutional environment influences the relationship between a firm’s capability and its political networking.

The authors test the theoretical model by analyzing a database from a World Bank survey in China.

The results show a nonlinear (U-shaped) relationship between a firm’s capability and its efforts in political networking. The relationship between a firm’s capability and political networking is contingent on the institutional environment, as reflected in institutional development and industry regulation.

This study elucidates political networking in emerging economies and contributes to research on corporate political strategy.