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1 – 10 of 20Xiaolun Wang, Xiaofeng Yu, Fan Feng and Peijian Song
Customization, a marketing strategy through providing personalized products, might be a new solution to motivate consumer feedbacks in electronic commerce (e-commerce) websites…
Abstract
Purpose
Customization, a marketing strategy through providing personalized products, might be a new solution to motivate consumer feedbacks in electronic commerce (e-commerce) websites. Taking the dual-value of customization (emotional involvement and uniqueness expression) as the theoretical basis, this study aims to investigate the impact of customization on consumer's word-of-mouth (WOM) behaviors and contents by motivating: (1) more, (2) faster, (3) positive at first and then negative, (4) longer and (5) more helpful WOMs.
Design/methodology/approach
A field study was conducted with multi-sourced data: customer order data from a Chinese retailer and WOM data from Amazon.com. The two datasets were matched to filter out 463 online reviews among 6,892 customers who placed customized orders. Heckman's two-stage model, logistic regression, Ordinary least squares regression, Tobit regression, analysis of covariance and Lind–Mehlum U Test were used in the data analysis.
Findings
This study has found that (1) customization level motivates WOM behaviors including WOM posting and WOM speed, (2) an inverted U-shaped relationship exists between customization level and consumer rating and (3) customization level has a significantly positive impact on WOM helpfulness but not on WOM length.
Originality/value
This study advances theoretical development in the area of WOM motivators by proposing a new product-centric approach, customization, to stimulate voluntary WOMs. Empirical field research that analyzes consumer's real responses to customization is in scarcity. The dual-value of customized products is proposed as the underlying mechanism to explain the impact of customization level on consumer's WOM behaviors/contents. An interesting inverted U-shaped relationship is found between customization level and customer rating. This research provides nuanced practical guidance for websites, companies and consumers.
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Brigitte Wecker and Matthias Brauer
Misconduct allegations have been found to not only affect the alleged firm but also other, unalleged firms in form of reputational and financial spillover effects. It has remained…
Abstract
Misconduct allegations have been found to not only affect the alleged firm but also other, unalleged firms in form of reputational and financial spillover effects. It has remained unexplored, however, how the number of prior allegations against other firms matters for an individual firm currently facing an allegation. Building on behavioral decision theory, we argue that the relationship between allegation prevalence among other firms and investor reaction to a focal allegation is inverted U-shaped. The inverted U-shaped effect is theorized to emerge from the combination of two effects: In the absence of prior allegations against other firms, investors fail to anticipate the focal allegation, and hence react particularly negatively (“anticipation effect”). In the case of many prior allegations against other firms, investors also react particularly negatively because investors perceive the focal allegation as more warranted (“evaluation effect”). The multi-industry, empirical analysis of 8,802 misconduct allegations against US firms between 2007 and 2017 provides support for our predicted, inverted U-shaped effect. Our study complements recent misconduct research on spillover effects by highlighting that not only a current allegation against an individual firm can “contaminate” other, unalleged firms but that also prior allegations against other firms can “contaminate” investor reaction to a focal allegation against an individual firm.
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Nikola Rosecká and Ondřej Machek
This paper aims to examine the effects of socio-emotional wealth importance (SEWi) in family firms and family firm-specific HR practices, namely professionalization and…
Abstract
Purpose
This paper aims to examine the effects of socio-emotional wealth importance (SEWi) in family firms and family firm-specific HR practices, namely professionalization and bifurcation bias, on their entrepreneurial orientation (EO).
Design/methodology/approach
The paper surveyed 133 small and medium-sized family firms in the USA. The respondents were recruited through Prolific Academic.
Findings
When SEWi is low, a family firm becomes more similar to a non-family firm, thereby enjoying the benefits associated with EO. When SEWi is high, a family firm leverages the unique resources and capabilities specific to family firms. Moderate SEWi levels are associated with lower EO levels. Additionally, the results support the argument that professionalization (involving non-family managers, formalization and decentralization) fosters EO, while bifurcation bias hinders its development.
Originality/value
Unlike previous studies, this paper posits a non-linear, U-shaped relationship between SEWi and EO. It contributes to the field by empirically investigating the effects of professionalization and bifurcation bias on EO in family firms.
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Hao Jiao, Jifeng Yang, Cheng Jiang and Jiawei Yu
This research helps firms pursue an open innovation strategy but want to minimize competitive pressure from other external entities. A theoretical framework is constructed to…
Abstract
Purpose
This research helps firms pursue an open innovation strategy but want to minimize competitive pressure from other external entities. A theoretical framework is constructed to analyze the impact of openness on innovation performance, exploring different effect of firms' external search channels.
Design/methodology/approach
This paper employs a stepwise hierarchical regression approach to assess the effect of openness on technological innovation considering the role of information technology adoption and political ties. The effect is conducted using a large-scale sample of 1,073 Chinese manufacturing firms over the period 2011–2013 as empirical research objects.
Findings
There are two stages of the open technological innovation process while the information technology (IT) adoption and political ties are the key consideration in emerging markets. Openness is curvilinearly (taking an inverted U-shape) related to innovation performance. Both information technology adoption and political ties generally help firms to turn broadly sourced external knowledge into technological innovation performance. This will stimulate “one plus one is greater than two” effect not only in the process of achieving performance goals, but also in the process of technological innovation.
Originality/value
This quantitative research illustrates the importance relationship between firms' open behaviors and technological innovation performance in emerging markets. It helps us understand firms' current constrains of open strategy of technological innovation and helps domestic or foreign investors to make strategic collaboration choices in emerging economies according to the degree of openness, informatization level, political connections, which is equally important for research and practice.
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Wei Wang, Ximing Yin, Ryan Coles and Jin Chen
Current open innovation (OI) and external knowledge search (EKS) research primarily shows a positive linear relationship between EKS and innovation at an individual level…
Abstract
Purpose
Current open innovation (OI) and external knowledge search (EKS) research primarily shows a positive linear relationship between EKS and innovation at an individual level. However, organizational scholarship argues that excessive EKS may harm innovation. This study combines the knowledge-based view (KBV) and attention-based view (ABV) to articulate a nonlinear theory of EKS and innovation at the individual level.
Design/methodology/approach
The authors constructed a multi-sourced dataset covering 59,798 USA pharmaceutical patents spanning from 1975 to 2014 and employed negative binomial fixed-effect models to examine theoretical hypotheses.
Findings
We find a significant concave curvilinear relationship between EKS and innovation quantity as well as innovation quality at an individual level. An individual’s knowledge breadth and depth moderate the relationship between EKS and innovation, such that the threshold at which EKS has diminishing returns for individual innovation is higher for inventors with a broad range of knowledge and those with deeper expertise in the domain where they are innovating.
Research limitations/implications
Managers should guide inventors toward a moderate investment of time and effort in EKS and should caution against over searching. Besides, managers should recognize that an inventor’s capacity for EKS is determined in part by their breadth of knowledge across various domains as well as the depth of knowledge they have in the knowledge domain where they are innovating.
Practical implications
We provide both parties with a clearer understanding of when EKS can begin to deteriorate an individual’s innovation performance why that deterioration occurs, and we also highlight two individual-level knowledge characteristics to take into consideration when deciding when to cease the EKS process.
Social implications
This study provides a novel holistic understanding of OI and knowledge management for policymakers and organizations to nourish innovation dynamism and make the best of knowledge stocks in the community, which in turn will create endless power for sustainable social change and inclusive development.
Originality/value
This study contributes to OI theory by highlighting the non-linear nature of the relationship between EKS and innovation on an individual level. This represents a fundamental shift in theory on EKS and individual innovation by suggesting a major rethinking of how the two concepts relate, revealing the dark side of EKS in knowledge management if inventors engage in excessive EKS. Likewise, our study’s incorporation of the ABV informs KBV scholarship by highlighting the role of the limited attentional capacity of individuals in firm knowledge management.
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Thi-Ha-Trang Dang and Shao-Chi Chang
This study aims to examine and analyze the determinants of the stock market performance after firms announce sustainable supply chain management (SSCM) practices.
Abstract
Purpose
This study aims to examine and analyze the determinants of the stock market performance after firms announce sustainable supply chain management (SSCM) practices.
Design/methodology/approach
The study focuses on the long-run stock performance of firms announcing SSCM investments. The authors collected a sample of 280 SSCM announcements from 2010 to 2017 and estimated the buy-and-hold abnormal stock returns up to three years following the announcements. Numerous analyses were conducted to analyze the effect of environmental and social sustainability on long-run stock returns.
Findings
The findings show a significantly positive stock performance in the three-year period after announcements. Moreover, the evidence indicates that the post-announcement abnormal stock return has an inverted-U relationship with corporate environmental sustainability but not with corporate social sustainability. Finally, whether firms expand the firms' corporate sustainability strength to SSCM practices or not, firms secure long-run wealth as long as SSCM programs are carried out.
Research limitations/implications
The research focuses on the stock performance of USA public firms to draw conclusions about firms' market performance. This research leaves out the private and born-sustainable firms.
Practical implications
The findings offer firms incentives to invest in SSCM and suggest the magnitude of value provided by each sustainability type to help firms set firms' supply chain (SC) sustainable investment level.
Originality/value
The study is the first to investigate the long-run stock performance of firms announcing SSCM practices and the contribution of different sustainability types to stock performance.
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Wenqing Wu, Pianpian Zhang and Sang-Bing Tsai
Previous studies have shown that the application of information technology (IT) can help break through the innovation boundaries of firms and has undoubtedly become a key enabler…
Abstract
Purpose
Previous studies have shown that the application of information technology (IT) can help break through the innovation boundaries of firms and has undoubtedly become a key enabler of collaborative innovation. These studies, however, are mainly based on theoretical analysis and case studies, and little is empirically known about the relationship between IT investments and collaborative innovation. Therefore, the purpose of this study is to empirically explore how firms' IT investments affect the firms' collaborative innovation performance. The authors also examine the moderating roles of the top management team's (TMT's) educational background and absorptive capacity in this relationship.
Design/methodology/approach
The authors collected data on 2,097 listed Chinese manufacturing companies and used the ordinary least squares (OLS) method to perform regression analysis. In addition, the authors conducted robustness tests using the propensity score matching (PSM) method and the instrumental variable method.
Findings
The results show that the relationship between IT investments and collaborative innovation is inverted, U-shaped and curvilinear. In addition, the TMT's educational background and absorptive capacity positively moderate the inverted U-shaped relationship between IT investments and collaborative innovation.
Originality/value
The study's findings on the relationship between IT investments and collaborative innovation differ from previous mainstream findings that recognized a positive linear relationship. The authors' findings deepen the understanding of the dual role of IT investments. Moreover, this research helps expand the contingency perspective in IT investments and collaborative innovation research.
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Mumin Dayan, Poh Yen Ng and Dirk De Clercq
To extend family business research, this article proposes and tests a curvilinear relationship between social ties and family firm innovation, with the firm's market orientation…
Abstract
Purpose
To extend family business research, this article proposes and tests a curvilinear relationship between social ties and family firm innovation, with the firm's market orientation and transgenerational intent as moderators.
Design/methodology/approach
Representatives from a sample of 150 family firms in the United Arab Emirates completed self-administered questionnaires. Regression analyses on the collected data test the conceptual model and proposed hypotheses.
Findings
The empirical study reveals an inverted U-shaped relationship, such that a high market orientation mitigates the diminishing returns of social ties on enhancing family firm innovation. Similarly, at high levels of transgenerational intent, family firm innovation increases due to social ties, instead of exhibiting diminishing returns.
Originality/value
These results help explain contradictory outcomes previously attributed to social ties and offer clear guidelines for how family firms can leverage these ties more effectively to enhance their own innovation.
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Lin Jia, Ying Zhang and Chen Lin
Social interaction in comment sections has become a key factor for backers' decision making in crowdfunding platforms. However, current research on the two-way social interaction…
Abstract
Purpose
Social interaction in comment sections has become a key factor for backers' decision making in crowdfunding platforms. However, current research on the two-way social interaction in crowdfunding is insufficient, and there exist inconsistent conclusions. This study focuses on the social interaction between creators and backers and explores its influence on the successful exit of crowdfunding projects.
Design/methodology/approach
The extended Cox model is used for the empirical analysis of 1,988 crowdfunding projects on the Modian (www.modian.com) platform, a crowdfunding platform for cultural and creative projects in China. The two-way social interaction is reflected in comment quantity and sentiment, as well as reply rate.
Findings
Results reveal an inverted U-shaped relationship between comment quantity/sentiment and the successful exit of crowdfunding projects. This relationship is strengthened by high reply rate.
Originality/value
This study focuses on comment quantity and sentiment. The inverted U-shaped results reconcile previous conclusions. Replies from creators are regarded as a separate factor, and their moderating role is explained. The study research proves the importance of social interaction in crowdfunding platforms and provides suggestions for backers, creators and platform managers.
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Xiyue Zheng, Fusheng Wang, Shiyu Liu, Han Wang and Dongchao Zhang
This paper aims to conduct an analysis of the influence of both the breadth and depth of outward foreign direct investment (OFDI) undertaken by Chinese high-tech listed companies…
Abstract
Purpose
This paper aims to conduct an analysis of the influence of both the breadth and depth of outward foreign direct investment (OFDI) undertaken by Chinese high-tech listed companies during the period spanning 2010–2019. The data pertaining to these companies was used as a research sample to analyze the effects of OFDI on radical innovation performance.
Design/methodology/approach
Hierarchical regression analysis was used to test the proposed models, using survey data collected from 442 high-tech companies in China.
Findings
The findings of this study indicate a curvilinear (i.e. U-shaped) relationship between the breadth/depth of OFDI and radical innovation performance. Additional analysis reveals that OFDI plays a role in facilitating innovation breakthroughs by enhancing the internal dynamic capabilities of companies. Moreover, it is observed that a well-established institutional environment in the host country of investment can positively moderate the relationship between OFDI breadth/depth and radical innovation performance.
Originality/value
This study proffers a significant contribution to the understanding of the crucial role played by OFDI from emerging economy companies in enhancing radical innovation performance. Moreover, it offers theoretical guidance for multinational companies aiming to foster innovation breakthroughs.
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