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Article
Publication date: 25 October 2018

Henry F.L. Chung

Research focusing on the relation between market orientation and innovation in the Asian emerging economy is limited. The purpose of this study is to advance the extant…

Abstract

Purpose

Research focusing on the relation between market orientation and innovation in the Asian emerging economy is limited. The purpose of this study is to advance the extant literature by investigating the relations among market orientation, guanxi networking and innovation using the MARKOR scale.

Design/methodology/approach

The research conclusion is drawn based on the experience of 122 Asian emerging market firms operating in a wide variety of industrial sectors. This study explores whether the three MARKOR components (intelligence generation, dissemination and responsiveness) and their interaction with business and political guanxi have a significant effect on firms’ strategic innovation success. Innovation is measured following the practice of the OECD. In addition to the quantitative analyses, this study conducted qualitative interviews with executives of eight respondent firms, to further consolidate the subjects under investigation. The integration of both qualitative and quantitative data enriches the conclusions drawn from the study.

Findings

The findings of this study confirm that, when operating in an Asian emerging economy, both intelligence generation and responsiveness have a positive and direct impact on innovation. Though intelligence dissemination has no direct influence on innovation, its alignment with business and political guanxi still leads to a positive effect on innovation. The coalition of responsiveness and political guanxi, however, has a negative influence on innovation. The results of this study add new insights to the extant literature and provide implications for future research and marketing practices in Asian emerging economies.

Originality/value

The findings of this study confirm that, when operating in an Asian emerging economy, both intelligence generation and responsiveness have a positive and direct impact on innovation. Though intelligence dissemination has no direct influence on innovation, its alignment with business and political guanxi still leads to a positive effect on innovation. The coalition of responsiveness and political guanxi, however, has a negative influence on innovation. The results add new insights to the extant literature and provide implications for future research and marketing practices in Asian emerging economies.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 4
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 9 July 2021

Henry F.L. Chung and Mia Hsiao-Wen Ho

This study aims to examine the effects of international competitive strategies, i.e. cost leadership and differentiation, on export (market share and strategic…

Abstract

Purpose

This study aims to examine the effects of international competitive strategies, i.e. cost leadership and differentiation, on export (market share and strategic) performance. This study further explores the roles of exploitative and exploratory organizational learning in the relationships between international competitive strategies and export performances. To fill research gaps, this study intends to provide guidance on how varied exploitative/exploratory organizational learning and cost leadership/differentiation strategy combinations would affect export performance. The outcomes of this study provide a new match and mis-match conceptualization to extant international competitive strategy and organizational learning literature.

Design/methodology/approach

This study selected New Zealand (NZ) exporting as the research setting because exporting plays such a vital role in NZ’s economy and NZ exporting firms have long been highly competitive in international markets (e.g. meat and dairy exporters), with the primary data collected through surveys conducted in 2010 and 2013. This study adopted a three-year lagged performance approach.

Findings

Cost leadership strategy has a positive effect on market share performance. This effect is enhanced by exploitative learning but dampened by exploratory learning. Cost leadership also has a positive effect on strategic performance, which is not affected by exploitative and exploratory learning. Differentiation strategy bears no relation to market share and strategic performance, even allowing for exploitative and exploratory learning. Collectively, the contingent role of organizational learning in the international competitive strategies and export performance framework is far more comprehensive than was expected.

Research limitations/implications

This study reveals that a match between cost leadership strategy and exploitative learning may result in a superior market share. The configuration of differentiation strategy and exploitative learning and the integration of cost leadership strategy and exploratory learning are suggested as mis-matches, as these combinations would not lead to any significant and positive market share and strategic performance. Unexpectedly, the co-alliance of differentiation strategy and explorative learning is not suggested as a match, as it does not result in a superior market share and strategic performance. This latter outcome suggests that the differentiation strategy-export performance link may be stimulated by other moderating factors (e.g. business managerial ties).

Practical implications

While choosing an appropriate international competitive strategy, managers may use cost leadership over differentiation strategy to achieve successful export performance in both the market share and strategic perspectives. Export managers focusing on cost leadership strategy may further implement exploitative learning instead of explorative learning, when market share is vital. Meanwhile, they may note that explorative learning may not have a moderating effect on enhancing strategic performance through cost leadership. These points signify that exploitation of existing knowledge may be more effective than exploration of new knowledge for market share expansion when cost leadership strategy is devoted to exporting activities. Differentiation strategy, however, does not influence market share and strategic performance in exporting, even with an alignment of exploitative/exploratory learning. Managers are urged to pay attention to the mis-match of differentiation strategy and organizational learning when market share and strategic performance are the priorities in export performance evaluation.

Originality/value

This study contributes to the organizational learning literature by providing a new match and mis-match conceptualization relating to international competitive strategy and export performance. The new framework provides directions on when firms should use organizational learning to enhance their competitive strategies (a match scenario) and when they should not use it (a mis-match scenario). This study broadens the existing research that has mainly focused on alignment combinations such as organizational learning-internationalization strategy and organizational learning-social network.

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Article
Publication date: 17 January 2022

Yulong Liu, Henry F.L. Chung and Lili Mi

Drawing on institution embeddedness and the resource-based view, the authors develop a theoretical framework and empirically examine how intra-national innovation…

Abstract

Purpose

Drawing on institution embeddedness and the resource-based view, the authors develop a theoretical framework and empirically examine how intra-national innovation ecosystems and environmental institutions impact logistics service providers' (LSPs) technological innovation (TI) and green practices.

Design/methodology/approach

The authors test the theoretical framework based on survey data of 328 Chinese LSPs. Archival datasets complement the survey data.

Findings

The research reveals that intra-national institutional forces of formal and informal environment-related institutions can mitigate LSPs' reliance on their firm-specific advantages when engaging in TI and green practices. Results from a three-way interaction indicate that intra-national innovation ecosystems positively moderate the effects of environmental institutions.

Research limitations/implications

The research has three critical implications. First, the study reveals the contingency role of intra-national environment-related institutions and innovation ecosystems in shaping green logistics. Second, the study finds new results about the roles of informal environmental institutions. Finally, intra-national innovation ecosystems can override environmental institutions in influencing the green practices of LSPs.

Originality/value

Taking a unique angle of institution embeddedness coupled with the resource-based view, the authors examined how intra-national ecosystems and environmental institutions impact LSPs' TI and green practices.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 31 January 2018

Henry F.L. Chung and Tsuang Kuo

This study aims to present two new contingent frameworks that hypothesize the moderation role of managerial ties (MTs) in the international competitive strategy-export…

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1336

Abstract

Purpose

This study aims to present two new contingent frameworks that hypothesize the moderation role of managerial ties (MTs) in the international competitive strategy-export financial and strategic performance framework. The purposes of this study are to explore whether a common standardized or individual customized conceptualization consisting of MTs, international competitive strategy and performance can be used to achieve export financial and strategic performance; to offer contingent factors for the current international competitive strategy-export performance framework; and to generalize the roles of MTs in the developed vis-à-vis developing region.

Design/methodology/approach

This study uses the experience of 114 exporting firms operating in the European Union region to test its theoretical frameworks. MTs include both business and political ties.

Findings

Business and political ties have completely different moderation effects on the relation between international differentiation/low-cost strategy and export financial/strategic performance. Business ties have a positive influence on the international differentiation strategy-export strategic performance and international low-cost strategy-export financial performance dyads, but a negative effect in the international low-cost strategy-export strategic performance framework. In contrast, political ties are revealed to have a negative effect on the international differentiation/low-cost strategy-export financial performance framework.

Originality/value

This research advances extant international competitive strategy-export performance literature by revealing the bright and dark sides of business ties and the down side of political ties in the framework. Performance should be investigated in terms of financial and strategic performance. The moderation effect of business ties is more complex than that reported in the developing region; thus, a cross-regional generalization on these ties’ effects is more difficult to establish. In contrast, the dark side effect of political ties is consistent across developed and developing regions; a cross-regional generalization on these ties is more viable. Collectively, the results show that a standardized process for achieving both export financial and export strategic performances is not feasible, while a customized process for each export performance is needed.

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Article
Publication date: 1 February 2001

Henry F.L. Chung

Taiwan is one of the newly industrialised economies. Its foreign currency reserves are among the largest in the world. Still, few efforts have been expended to examine its…

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3291

Abstract

Taiwan is one of the newly industrialised economies. Its foreign currency reserves are among the largest in the world. Still, few efforts have been expended to examine its distribution system. This article intends to examine issues concerning Taiwan’s distribution system and its impact on foreign‐produced consumer products. Based on examining the distribution channels for six New Zealand‐produced products, a number of conclusions are drawn. The findings of this study point out that firms’ choice of market entry mode might be affected by the host market’s distribution system. The most common channel structure used by foreign producers marketing in Taiwan is a multiple channel system. In addition, the study concurs with findings on the Japanese distribution system, that a common problem facing firms operating in these markets is the large number of small sized retailing outlets. Due to the similarities of the two systems, foreign firms are recommended to use the experience of those firms which have successfully penetrated the Japanese market.

Details

International Journal of Retail & Distribution Management, vol. 29 no. 2
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 10 December 2021

Lan-Lung (Luke) Chiang, Tseng-Lung Huang and Henry F.L. Chung

In modern e-commerce and omnichannel management, consumers can utilize visual information delivered by augmented reality interactive technology (ARIT) to relate to…

Abstract

Purpose

In modern e-commerce and omnichannel management, consumers can utilize visual information delivered by augmented reality interactive technology (ARIT) to relate to products and view them worn on themselves. Accordingly, ARIT is increasingly common in online retail environments because this dynamicproduct imagery decreases the gap between online and offline shopping. On the basis of construal-level theory (CLT), this study not only examines the system characteristics that impact the perceived ease of use and usefulness of ARIT but also explores how these system characteristics can successfully affect online consumers to adopt ARIT in retail settings.

Design/methodology/approach

In this study, ARIT is applied mainly in an online clothes fitting context. By conducting a task-based laboratory study, 344 valid samples were collected. Structure equation modeling (SEM) was employed for further analysis.

Findings

Navigation structure, graphic style and information content were identified as the three system characteristics that affect perceived ease of use and usefulness of ARIT. Of the three characteristics, information content has the greatest impact on perceived ease of use and usefulness of ARIT. The study also found that navigation structure, graphic style and information content all shape ARIT system characteristics, and this explains and predicts the perceived usefulness and perceived ease of use effect better than any original single system characteristic.

Originality/value

Interactive marketing research indicates that the influence of immediately visualizing consumer–product matching effects creates excitement, arouses emotions and triggers curiosity to explore additional product purchase experiences. This study contributes to the present body of knowledge of the concept of ARIT systems. This is a pioneer research that uses CLT to act as a crucial psychological mechanism that dominates online fitting and apparel appraisal for consumers using ARIT. This study serves as a reference for designing and employing multisensory ARIT applications in interactive marketing to drive online sales.

Details

Journal of Research in Interactive Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-7122

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Article
Publication date: 18 January 2011

Peter Enderwick, Rosalie L. Tung and Henry F.L. Chung

This paper aims to examine the myriad linkages between cross‐border migration and international business activity through a conceptual framework of international arbitrage.

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3357

Abstract

Purpose

This paper aims to examine the myriad linkages between cross‐border migration and international business activity through a conceptual framework of international arbitrage.

Design/methodology/approach

While labour is internationally the least integrated of the various markets (capital, product, labour) the increasing co‐movement of both tasks and workers has created opportunities for the arbitrage and exploitation of differences between national labour markets. Because national labour markets typically display the two characteristics of separation and price discrepancy it is possible to utilise the principle of arbitrage and within this framework examine cost, intellectual, knowledge and employment arbitrage.

Findings

The discussion suggests that international business offers valuable insights into migration processes and effects which have been dominated by the research approaches of other disciplines. It is found that migrants can help reduce transaction costs for bilateral trade, contribute to nostalgic trade, encourage outsourcing and foreign direct investment through referrals and performance signalling, assist country of origin development through remittances and return migration and provide valuable knowledge to their employers in the country of residence.

Research limitations/implications

The paper is a conceptual one which offers no new empirical results but does provide a context for the interpretation of the more specialised studies that appear in this special issue. There is a need for research on this topic to be firmly grounded in the contemporary context of an increasingly integrated global economy. It also suggests a number of specific areas where further work would be useful.

Originality/value

The key contribution of the paper is in developing a comprehensive conceptual framework – that of labour market arbitrage – which enables a clearer understanding of the complex impacts of international migration on international business activity. It also distinguishes between direct and indirect effects.

Details

Journal of Asia Business Studies, vol. 5 no. 1
Type: Research Article
ISSN: 1558-7894

Keywords

Content available
Article
Publication date: 18 January 2011

Rosalie L. Tung and Henry F.L. Chung

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544

Abstract

Details

Journal of Asia Business Studies, vol. 5 no. 1
Type: Research Article
ISSN: 1558-7894

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Article
Publication date: 2 October 2019

Heng-Hui Wu, Pornchanoke Tipgomut, Henry F.L. Chung and Wei-Kuang Chu

As consumers read multiple reviews, so consumer review consistency is important. The purpose of this paper is to investigate the role of consumer review consistency in…

Abstract

Purpose

As consumers read multiple reviews, so consumer review consistency is important. The purpose of this paper is to investigate the role of consumer review consistency in influencing attitudes toward brands by examining its underlying effect on consumers’ emotions after they read consistent consumer reviews. In addition, the moderation effect of hedonic and utilitarian purchase values on positive consumer emotions and attitudes toward brands is explored.

Design/methodology/approach

This study used a quantitative design in which 329 participants – undergraduate and MBA students at a university in Taiwan – were asked to complete online questionnaires. To generalize the results, the questions in the questionnaire were based on any consumer reviews that the participants had recently browsed.

Findings

Consumer review consistency positively influences attitudes toward brands. Positive emotions are also developed when reading consistent consumer reviews, and this positively influences consumers’ attitudes toward brands. However, positive emotions are not derived from consistent consumer reviews in all contexts. The results show that positive emotions work well when consumers shop using hedonic value. Positive emotions create positive consumers’ attitudes toward a brand when they shop using hedonic value, but this significant effect does not occur when consumers shop using utilitarian value.

Research limitations/implications

This study’s results suggest that only investigating the quality of a consumer review or other aspects of a single review might overlook the impact of consumer review consistency, as consumers read multiple reviews. Consumer review consistency plays an important role in brand effectiveness, as consumers form positive attitudes toward brands when they read consistent reviews. Positive emotions can strengthen consumers’ attitudes toward a brand. Moreover, positive emotions increase positive attitudes toward brands only when consumers shop using hedonic value. However, positive emotions do not enhance consumers’ attitudes if they shop using utilitarian value.

Practical implications

Rather than focusing on the quality of a single review, online shops should carefully consider consumer review consistency. Although positive reviews are better than negative reviews, it is quite difficult for every shop to maintain 100 percent positive reviews. Therefore, maintaining and offering quality products and services are rather important to acquiring more positive reviews. Online shops should consider experimental marketing strategies when managing online shops. The layout of online sites that show consistent consumer reviews can provide consumers with cues that shorten decision making, especially for products that consumers tend to shop for using hedonic value.

Originality/value

This research extends the previous consumer review literature. Previous research was focused mainly on the quality of consumer reviews or other aspects of a single review. This research shows that focusing a single consumer review is not sufficient, as consumers generally read more than one consumer review. In addition, the role of positive emotions as a mediator between consumer review consistency and attitudes toward a brand was investigated. Furthermore, the moderated mediation effect was applied to investigate the role of shopping value (hedonic vs utilitarian value) as a moderator of positive emotions’ mediation effect.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 32 no. 2
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 25 February 2019

Henry F.L. Chung, Zhujun Ding and Xufei Ma

The purpose of this paper is to integrate the resource-based view (RBV) with organisational learning theory by investigating the role of the RBV mechanism in the preceding…

Abstract

Purpose

The purpose of this paper is to integrate the resource-based view (RBV) with organisational learning theory by investigating the role of the RBV mechanism in the preceding performance-current performance linkage. The authors further examine the role of the decision-making approach on the RBV-prior-current performance paradigm. Using China as the research setting, they empirically test the theoretical model based on 229 firms selected from a nation-wide survey.

Design/methodology/approach

This study has used China as the research setting. The authors empirically test the theoretical model based on 229 firms selected from a nation-wide survey.

Findings

This study reveals that prior export performance is a key determinant of current export performance, and this effect is enhanced by product certification (an internal RBV mechanism) and the intention to make an initial public offering (and external RBV mechanism). Moreover, the internal RBV-prior-current performance paradigm is positively moderated by the delegated decision-making approach, while the external RBV-prior-current performance paradigm is negatively moderated by this decision-making approach.

Research limitations/implications

The results related to RBV and prior organisational learning also extends the extant literature and offer implications in two important ways. One, this research advances existing research that has only considered the direct effect of organisational learning on current performance (Lages et al., 2008). In addition to its direct effect, this study suggests that the interplay of organisational learning and resource commitment also provides important determinants of export performance. These new results imply that future research should not only explore the effect of organisational learning theory but also that of firm resource in the research on the prior-current performance dyad (Lages et al., 2008). Two, this study also advances the theoretical development of the export venture resource and management commitment research by revealing two new factors (Cavusgil and Zou, 1994). As a result, when conducting exporting activity from an emerging economy, exporting firms should consider committing their resources on acquiring international certification and seeking external funding. These new findings provide new guidance on the choice of the type of resource commitments and their roles in the prior-current performance conceptualisation when operating in the emerging markets.

Practical implications

The results also contribute to the conceptualisation of the decision-making literature in the context of emerging economies (Garnier, 1982; Kao, 1993; Redding, 1993; Solberg, 2000), where an owner decision-making approach is associated with a number of negative effects (Kao, 1993; Redding, 1993). This study suggests that an owner decision-making approach can actually help firms to implement the effect of external RBV’s influence in the prior-current performance framework. As a result, the findings imply that researchers and managers of EMEFs should now consider including the effect of decision-making governance when exploring the interactive effect of RBV and organisational learning in export performance research (Lages et al., 2008).

Originality/value

This three-way interaction results have implications for the development of organisational learning theory, the RBV, decision-making, export performance and emerging market literature.

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