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1 – 10 of 33Ming Lin, Mu Tian, Yifan Wang and Libing Shu
This study aims to investigate whether frugality increases customer complaints via the mediating role of the zone of tolerance (ZOT) of quality for Shanzhai products…
Abstract
Purpose
This study aims to investigate whether frugality increases customer complaints via the mediating role of the zone of tolerance (ZOT) of quality for Shanzhai products. Additionally, the study seeks to explore how customer empathy as a boundary condition affects the relationship between the ZOT of quality and customer complaints.
Design/methodology/approach
Based on the purchasing data of 241 low-income customers from business-to-consumer (B2C) e-commerce and social platforms in China, hierarchical analysis was conducted in the study. Moreover, “PROCESS SPSS Macro” was used to test the mediation effect of the ZOT of quality and the moderated mediation effect with customer empathy as a moderator.
Findings
The results indicate a positive impact of frugality on customer complaints, which is mediated by the ZOT of quality. Moreover, with an increase in customer empathy, the negative effect of the ZOT of quality on customer complaints increases, and the positive influence of frugality on customer complaints, through the mediation of the ZOT of quality, also becomes stronger.
Originality/value
Drawing upon the principle of cognitive consistency, this study not only extends the stream of research on frugality by exploring how frugality influences customer complaints via the mediation of the ZOT of quality but also sheds new light on the research on customer empathy by exploring its moderating role in the relationship between the ZOT of quality and customer complaints.
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This study examines the impact of servitization in the form of repair and maintenance services on consumers' quality perceptions, purchase intentions and recommendation intentions…
Abstract
Purpose
This study examines the impact of servitization in the form of repair and maintenance services on consumers' quality perceptions, purchase intentions and recommendation intentions while considering consumer frugality as a moderator in the retail ready-to-wear sector.
Design/methodology/approach
A quantitative approach based on consumer research was pursued. Study 1 tested the research model using a fictitious ready-to-wear brand within an experimental design. To increase the generalizability of results, Study 2 retested the model with a well-known ready-to-wear brand. For both studies, regression, mediation and moderation analyses were conducted in SPSS.
Findings
Both studies showed that servitization positively influences perceived quality. Servitization positively affects purchase intentions and recommendation intentions indirectly via the mediating role of perceived quality. Frugality moderates the relationship between servitization and perceived quality for the fictitious brand (Study 1), whereas it is not significant for a well-known ready-to-wear brand (Study 2). Servitization positively influences perceived quality regardless of consumers' frugality levels for a stronger brand.
Originality/value
This study suggests and tests an original conceptual model that relies on signaling theory. It is among the first studies to examine the impact of servitization on retail fashion consumers' quality perceptions and consequent purchase and recommendation intentions. This study also contributes to the literature by presenting empirical findings based on consumer research on servitization while considering frugality as a moderator.
Practical implications
Bundling products with additional services can contribute to quality perceptions and consequently to purchase and recommendation intentions for ready-to-wear brands.
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Júlia Quintino Sant’Ana, Linda Jessica De Montreuil Carmona and Giancarlo Gomes
This study aims to answer the following research question: What are the opportunities for future research concerning the Frugal Innovation (FI) phenomenon? To address this, the…
Abstract
Purpose
This study aims to answer the following research question: What are the opportunities for future research concerning the Frugal Innovation (FI) phenomenon? To address this, the authors propose a novel approach to literature review on the topic. They do so in view of synthesising scholars’ recommendations for subsequent studies. They also advocate that it is time to contribute to the establishment of the FI field by mapping the future of this approach.
Design/methodology/approach
The authors conducted a systematic literature review (SLR) to connect past and future research on FI. After the screening process of the documents extracted from multiple databases, they performed a bibliometric analysis to provide an overview of the field. Furthermore, the lexical analysis and descending hierarchical analysis were generated through the IRAMUTEQ software to identify the clusters for future research on FI.
Findings
This research not only demonstrates the current state of the art of FI literature but also identifies a research agenda with six categories of opportunities for further studies on the topic: frugal consumer behaviour; establishment of the field; sustainable impact; approaches to different contexts; implementation processes; and challenges for value creation.
Originality/value
The FI phenomenon is receiving increasing attention from scholars in the management field due to its socioeconomic and managerial implications, especially after the Covid-19 outbreak. Therefore, the findings benefit scholars striving to expand the scope of FI research, as well as entrepreneurs, managers and organisations aiming to enhance their social responsibility to reduce their environmental impact.
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This study aims to explain the influence of four socio-psychological variables: social comparison orientation, face saving (FS), status consumption (STC) and frugality (FGL) on…
Abstract
Purpose
This study aims to explain the influence of four socio-psychological variables: social comparison orientation, face saving (FS), status consumption (STC) and frugality (FGL) on consumers’ value perception toward ride-sharing services – one of the most widely used collaborative consumption models. Furthermore, it assesses how perceived value affects consumers’ intention to use (IU) the ride-sharing services and intentions to substitute ride-sharing services for using a personally owned car. It also assesses the moderating effect of psychographics on the relationship between consumers’ perception and behavioral intention.
Design/methodology/approach
A structured questionnaire was developed using existing scales adapted from the literature to test the hypothesized relationships. The data for the study were collected from 489 users of ride-sharing services in India. Structural equation modelling was performed to test the proposed model using AMOS 18 and moderation analysis was performed using PROCESS MACRO.
Findings
The findings of the study suggest that social comparison, FS, STC and FGL have a significant influence on consumers’ value (utilitarian and hedonic) perception. Furthermore, the results supported the effect of consumers’ value perception on their IU the ride-sharing services as well as their intention to substitute ride-sharing services for using a personally owned car. Lastly, the results also evidenced the moderating role of psychographic variables.
Originality/value
Very few studies have examined the role of psychographics in the adoption of collaborative consumption services. The paper attempts to fill this gap. It assesses the effect of four relevant consumer traits on perceived value in the ride-sharing services context. Furthermore, it expands the understanding of the role of psychographics by measuring their moderating effects apart from direct effects. The results of the study bear important implications for academicians, policymakers and marketers.
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This study aims to reconstruct how smallholder farmers implement livelihood adaptation strategies to survive and escape poverty, thereby mitigating or eliminating potential…
Abstract
Purpose
This study aims to reconstruct how smallholder farmers implement livelihood adaptation strategies to survive and escape poverty, thereby mitigating or eliminating potential livelihood risks by utilizing their available assets.
Design/methodology/approach
This research employed a qualitative approach. For the collection of primary data, the researcher conducted observations and in-depth interviews and engaged with the lives of smallholder farmers during the data collection period.
Findings
Among the various livelihood adaptation strategies, only migration and profit-sharing strategies enable smallholder farmers to escape poverty. However, migration is an unsustainable adaptation strategy. When farmers move to new locations, they often resort to slash-and-burn methods for clearing land, which can lead to forest degradation and deforestation. Profit sharing is a sustainable livelihood adaptation strategy that falls into a different category. This approach can lift farmers out of poverty, increase their income and have no negative environmental impact. Other adaptation strategies include adjustments to traditional agriculture, both on and off-farm diversification, involving the family in income generation, reducing farming costs, practicing frugality in post-harvest processes, converting land from coffee cultivation to other crops and borrowing money and selling owned assets. Smallholder farmers implement these strategies to survive the existing economic conditions.
Originality/value
The profit-sharing strategy was a novel livelihood adaptation approach that previous studies had yet to uncover at the research site. In this strategy, farmers assume the roles of both managers and laborers simultaneously during farming, while toke (the capital owners) play the role of farming funders. The generated profit is then shared between farmers and toke based on the agreement established at the outset of their collaboration.
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The purpose of the study is to examine how operating efficiencies from incentive alignment compensate for rent extraction in family firms. The author asks whether ownership (1…
Abstract
Purpose
The purpose of the study is to examine how operating efficiencies from incentive alignment compensate for rent extraction in family firms. The author asks whether ownership (1) improves operating efficiencies to increase firm value, (2) positively affects related-party transactions (RPTs), or (3) destroys firm value. Finally, the author assesses whether the incentive effect dominates the entrenchment effect.
Design/methodology/approach
This study employs a panel of 333 listed family firms (and 185 nonfamily firms) and handles endogeneity using a dynamic panel system GMM and panel VAR.
Findings
Ownership decreases discretionary expenses and increases asset utilization to add firm value. The efficiency gains generate more value in family firms, especially majority-held ones, than in nonmajority ones. However, ownership is also related to increased RPTs (especially dubious loans/guarantees), reducing firm value. RPTs destroy value more severely in the family (or group) firms than in nonfamily (nongroup) firms. It could be why ownership's positive impact on value is lower in family firms than in nonfamily firms. Overall, the incentive effect dominates the entrenchment effect and is robust to controlling private benefits of control in the dynamic ownership-value model.
Research limitations/implications
(1) A family firm's ownership may not be optimal. (2) The firm's long-term commitment as a dynasty limits the scale of expropriation yet sustains impetus for long-term value creation. The paradox partly explains why large family holdings and firm-specific investments endure over generations. (3) This way, large ownership substitutes weak investor protection in India despite tunneling as skin in the game provides necessary investor confidence. (4) Future studies can examine whether extraction varies with family generations and how family characteristics affect the incentive effects.
Practical implications
(1) Concentrated ownership may not be a wrong policy choice in emerging markets to draw firm-specific investments. (2) Investors, auditors, or creditors must pay closer attention to loans/guarantees. (3) More vigorous enforcement, auditor scrutiny, and board oversight are needed.
Social implications
Family firms are not necessarily a bad organization type that destroys investor wealth. They can be valuably efficient due to their ownership and wealth concentration, and frugality. They matter in the economic growth of a developing market like India.
Originality/value
(1) Extends ownership-performance research to family firms and shows that although ownership facilitates tunneling, the incentive effect dominates; (2) family ownership is not impacted by firm value; (3) family ownership levels reduce discretionary expenses and increase asset utilization to create added value, especially in majority-held family firms; (4) RPTs and loans/guarantees increase with ownership; (5) value erosion from RPTs is higher in family (group) firms than in other firms.
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Kasimu Sendawula, Shamirah Najjinda, Marion Nanyanzi, Saadat Nakyejwe Lubowa Kimuli and Ahmad Walugembe
The purpose of this study is to explore how the personal traits of the informal entrepreneurs influence their formalization decisions.
Abstract
Purpose
The purpose of this study is to explore how the personal traits of the informal entrepreneurs influence their formalization decisions.
Design/methodology/approach
This study adopted a qualitative approach using a multicase design in which 28 informal entrepreneurs situated in Kampala district, Uganda, were engaged. An interview guide, recorders and note books were used in data collection.
Findings
The results indicate that the traits of informal and semiformal entrepreneurs are distinct. Informal entrepreneurs have been noted to be more courageous and resilient, while their semiformal counterparts have greater passion for their businesses. It is thus observed that the formalization prospects are higher for the semiformal entrepreneurs than for their informal counterparts. Entrepreneurs that would be willing to formalize their businesses are discouraged by distance, technology and the cost of involving middlemen. Whereas the resilient entrepreneurs are noted to work through these challenges, the passive ones in both the informal and semiformal categories will not formalize their businesses by giving such excuses.
Originality/value
This study contributes to the extant literature on informal entrepreneurship by providing initial empirical evidence on how the personal traits of the entrepreneurs influence their formalization decisions specifically.
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Mohita Gangwar Sharma and Sunil Kumar
Frugal innovation focuses on the core functionalities with the highest stakeholder benefits and directly targets user requirements. It has been widely adopted in developing…
Abstract
Purpose
Frugal innovation focuses on the core functionalities with the highest stakeholder benefits and directly targets user requirements. It has been widely adopted in developing countries, and extensively researched from both consumer and sustainable perspectives. However, few studies on frugal innovation consider “quality”, a seminal business management concept. This study focuses on this gap and uses a quality lens to understand frugal innovation.
Design/methodology/approach
This study adopts a mixed methodology. The Delphi focus group method is first applied to identify two cases of frugal innovation in the construction industry and a cross-case analysis done. Then, the analytic hierarchy process (AHP) is used to examine eight product quality dimensions to draw the final conclusions.
Findings
From Garvin’s concept of quality, frugal innovation focuses on performance and conformance. Furthermore, it prioritises a value-based approach the most.
Research limitations/implications
This study examines frugal innovation from quality perspective. This opens up a new line of research which contributes to both streams. The study is based on construction which is a limitation of the study.
Practical implications
A quality-based frugal innovation understanding can be helpful in the conceptualisation, implementation and acceptance of the frugal innovation business model. It can provide clarity on the innovation's value proposition and also help in operationalisation of the business model.
Social implications
Frugal encourages social entrepreneurs and understanding of the concept from quality perspective shall facilitate the operationalisation will become easier for them.
Originality/value
To the author’s knowledge, this is the first study at the interface of frugal innovation and quality management. Furthermore, the use of AHP to prioritise equality approaches and dimensions is an original contribution.
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Khaled Al Omoush, Carlos Lassala and Samuel Ribeiro-Navarrete
The present study aims to examine the relationships between digital business transformation, organizational learning, frugal innovation and Small and Medium Enterprises (SMEs…
Abstract
Purpose
The present study aims to examine the relationships between digital business transformation, organizational learning, frugal innovation and Small and Medium Enterprises (SMEs) resilience in emerging markets.
Design/methodology/approach
Empirical data collection has been implemented using a questionnaire method from 214 owners and managers of SMEs. The partial least squares structural equation modeling (PLS-SEM) approach was used to examine the measurement model and test hypotheses.
Findings
The results show that digital business transformation significantly impacts frugal innovation and SMEs' resilience in emerging markets. They also confirm the significant impact of frugal innovation on SMEs' resilience. Furthermore, the results revealed that organizational learning significantly impacts digital business transformation, frugal innovation and SMEs' resilience.
Originality/value
This study provides novel insights into the existing theories and literature regarding the determinants of SMEs' resilience in emerging markets. It also provides practical contributions, confirming the SMEs' need to develop their dynamic capabilities, including digital transformation, frugal innovation and organizational learning to maintain their resilience.
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Qiuying Chen, Ronghui Liu, Qingquan Jiang and Shangyue Xu
Tourists with different cultural backgrounds think and behave differently. Accurately capturing and correctly understanding cultural differences will help tourist destinations in…
Abstract
Purpose
Tourists with different cultural backgrounds think and behave differently. Accurately capturing and correctly understanding cultural differences will help tourist destinations in product/service planning, marketing communication and attracting and retaining tourists. This research employs Hofstede's cultural dimensions theory to analyse the variations in destination image perceptions of Chinese-speaking and English-speaking tourists to Xiamen, a prominent tourist attraction in China.
Design/methodology/approach
The evaluation utilizes a two-stage approach, incorporating LDA and BERT-BILSTM models. By leveraging text mining, sentiment analysis and t-tests, this research investigates the variations in tourists' perceptions of Xiamen across different cultures.
Findings
The results reveal that cultural disparities significantly impact tourists' perceived image of Xiamen, particularly regarding their preferences for renowned tourist destinations and the factors influencing their travel experience.
Originality/value
This research pioneers applying natural language processing methods and machine learning techniques to affirm the substantial differences in the perceptions of tourist destinations among Chinese-speaking and English-speaking tourists based on Hofstede's cultural theory. The findings furnish theoretical insights for destination marketing organizations to target diverse cultural tourists through precise marketing strategies and illuminate the practical application of Hofstede's cultural theory in tourism and hospitality.
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