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Article
Publication date: 15 June 2021

Philippe Marchildon and Pierre Hadaya

Social networking sites (SNS) follow the same diffusion pattern and are subject to the same phenomena as other technologies (e.g. QWERTY keyboard, Microsoft Office and VHS) that…

Abstract

Purpose

Social networking sites (SNS) follow the same diffusion pattern and are subject to the same phenomena as other technologies (e.g. QWERTY keyboard, Microsoft Office and VHS) that were subject to increasing returns. Since they may lock-in users, increasing returns significantly alter the way a technology is used and should be managed. The purpose of this paper is thus to verify if SNS are subject to increasing returns and, if so, to better understand their impacts in this context.

Design/methodology/approach

A research model that combines path dependency theory (PDT) tenets with the push-pull-mooring (PPM) model of information technology (IT) switching was developed and tested with data collected from 416 SNS users via a field survey. Participants were voluntary students at a North American university enrolled in a compulsory undergraduate course in business administration. Partial least square analysis structural equation modeling (PLS-SEM) was used to validate our research model and test our hypotheses.

Findings

Results show that SNS are subject to three forms of increasing returns: those stemming from device complementarity, learning and adaptive expectations. In addition, the findings show that increasing returns stemming from SNS use have the potential to lock-in SNS users by increasing their switching costs.

Practical implications

SNS users should be careful when using an SNS since such use can create a path that is self-reinforced and that can lock them due to the increasing returns it yields. SNS vendors/providers need to learn how to manage increasing returns if they want to foster continued use of their SNS and/or poach users from their competitors. Lastly, SNS regulators should revise or put in place new governance mechanisms since increasing returns, when properly leveraged, may undermine fair competition by allowing companies to lock-in users and lock-out competitors.

Originality/value

This study contributes to IS research by: (1) empirically demonstrating that increasing returns are present in the context of SNS use, (2) identifying increasing returns as key antecedents of user switching costs, (3) validating a theoretical framework that allows for the appraisal of PDT tenets in a variance model and (4) instantiating PDT tenets at the individual level.

Details

Information Technology & People, vol. 35 no. 3
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 1 February 2008

Alan R. Peslak

The overall purpose of this paper is to analyze variables that influence how top financial executives view their return on information technology (IT) investment in their…

1744

Abstract

Purpose

The overall purpose of this paper is to analyze variables that influence how top financial executives view their return on information technology (IT) investment in their organizations. Specifically, relationships between a series of independent variables are measured against the dependent variable overall return on its technology investment. The goal is to determine what contributes to IT success in an organization so that all organizations can focus attention where needed and improve their IT operations.

Design/methodology/approach

An analysis of secondary data obtained from the 2003 Financial Executives International (FEI) comprehensive survey‐based research on technology issues for financial executives was conducted. The study was carried out by the FEI and Computer Sciences Corporation. Regression analysis and other statistical methods were used.

Findings

The findings suggest that overall information return is rated medium to high by top financial executives. Variables that significantly and positively affect return include: progress on number one IT issue, seeing IT as a competitive advantage, and IT as a core competency. In addition, though just having an information systems (IS) strategic plan is a significant variable, if there is a plan and it is aligned with the overall corporate strategy, then this variable is positive and significant as well. Most view outsourcing as successful but outsourcing per se does not add to success.

Research limitations/implications

The study can be used as a basis for further exploration on the influences on technology success as well as serve as a preliminary model to analyze firm IS. Limitations of the study include that the only group included in the survey were financial executives. Non‐response bias is also possible.

Practical implications

The findings can be used to guide management teams in emphasizing control of the important variables in implementing IS and IT that influence overall corporate returns.

Originality/value

The paper analyzes a large current sample set that empirically reviews a cross‐section of major corporations' IS departments and their returns. In addition, it begins to explore the variables influencing overall IS returns.

Details

Industrial Management & Data Systems, vol. 108 no. 1
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 1 March 2003

Tamira King and Charles Dennis

Research reveals alarming results on the prevalence of the dishonest consumer behaviour known as deshopping. Deshopping is the “deliberate return of goods for reasons other than…

3827

Abstract

Research reveals alarming results on the prevalence of the dishonest consumer behaviour known as deshopping. Deshopping is the “deliberate return of goods for reasons other than actual faults in the product, in its pure form premeditated prior to and during the consumption experience”. In effect this means buying something with no intention of keeping it. The authors consider the implications of deshopping and retailers’ prevention of deshopping, exploring the research undertaken to date and the methodology for further research.

Details

International Journal of Retail & Distribution Management, vol. 31 no. 3
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 9 April 2018

Robert Houmes, Charlie Chulee Jun, Kim Capriotti and Daphne Wang

This study aims to investigate the relations between long-window stock returns and prior years’ increases in DuPont identity components: profit margin and asset turnover. In…

Abstract

Purpose

This study aims to investigate the relations between long-window stock returns and prior years’ increases in DuPont identity components: profit margin and asset turnover. In particular, the authors examine the relative effectiveness of profit margin and asset turnover to predict years ahead stock returns.

Design/methodology/approach

To test the assertions, the authors regress raw, Capital Asset Pricing Model and Fama-French returns on controls and variables of interest, profit margin and asset turnover, lagged years t − 1, t − 2 and t − 3. To control for factors that could affect returns over the long windows, they also include returns lagged over years t − 1, t − 2 and t − 3 to coincide with the lagged profit margin and asset turnover variables of interest.

Findings

Results show a negative (positive) relation between returns and increases in lagged profit margin (asset turnover). However, the negative returns-profit margin relation is mitigated when increases in profit margin and asset turnover occur in the same lagged year.

Originality/value

This study adds to the existing body of research on the DuPont identity by temporally evaluating the relative long-run contributions of profit margin and asset turnover to firm value.

Details

Meditari Accountancy Research, vol. 26 no. 1
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 25 March 2021

Bhavin Shah and Gaganpreet Singh

In order to achieve competitive advantage over the physical marketplace, the e-retailers are insisted on endowing with lenient return policies. The piece-wise returns

Abstract

Purpose

In order to achieve competitive advantage over the physical marketplace, the e-retailers are insisted on endowing with lenient return policies. The piece-wise returns-and-reordering process incurs excessive buffering and unwanted logistics costs which raises overall fulfillment charges. The objective of this study is to re-design e-retail distribution policy by providing temporal storage at logistics service provides' (LSP) location. The impact of recurrent returns on pricing and profit margins are also investigated over time continuum.

Design/methodology/approach

A framework is developed to reduce the non-value added (NVA) storage and distribution efforts by providing collaborative buffering between LSP and e-retailer. The knapsack based buffering approach is tested and compared with traditional e-retail distribution practices. The revenue sharing concept is mathematically modelled and implemented in GAMS, which finally validated through multiple return scenarios.

Findings

The proposed model outperforms the existing one under all scenarios with different configuration settings of re-ordering, profit margins, and buffer time windows. The distribution cost is found, linearly related to the necessary product buffering space. The findings help to re-design sustainable return policies for individual products so that maximum customer value can be yield with minimum costs.

Research limitations/implications

This study helps to determine the NVA efforts incurred while storing and delivering multi-time returned products to ensure desired service levels. The revenue sharing model provides pricing strategies for e-retail practitioners deciding which product should store in what quantity for how much time at the shipping agency location so that it fulfils the re-ordering at least waiting and sufficient buffering.

Originality/value

The proposed model extends the role of LPSs as temporary buffer providers to reduce returns-and-reordering fulfilment efforts in the e-retail network. This Collaborative framework offers an opportunity to amend the distribution contracts and policies time by time that enhances e-retailer's performance and customer satisfaction.

Details

Benchmarking: An International Journal, vol. 28 no. 9
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 17 February 2012

Pratim Datta and Kuntal Bhattacharyya

How appropriate are the innovation returns from offshored information technology (IT) research and development (R&D)? In light of the emergence and spate of IT R&D offshoring…

Abstract

Purpose

How appropriate are the innovation returns from offshored information technology (IT) research and development (R&D)? In light of the emergence and spate of IT R&D offshoring, this paper aims to investigate the mechanics of governance in attracting IT R&D inflow in offshored hosts and, more importantly, whether R&D offshoring provides instrumental and legitimate IT innovation returns (intellectual property (IP)) to outsourcing countries as investors.

Design/methodology/approach

The authors combine the calculus of host‐country governance and IT R&D inflows with IT innovation returns to the US from its offshored IT R&D investments. They argue on the basis of the golden mean – a principle of moderation where too little or too stringent governance deters IT R&D investments; more importantly, too little and too much IT R&D investments fail to stimulate IT innovation returns to the investors.

Findings

An analysis of 81 World Trade Organization (WTO) countries underscores the authors' argument that the calculus between governance and IT innovation productivity is mediated by IT R&D investments. However, the relationship is non‐linear with diminishing marginal returns‐to‐scale.

Research limitations/implications

The non‐linear relationships between governance, R&D foreign direct investments (FDI) and patent‐level returns show a threshold effect often overlooked by existing research. Together, this article points out the need for researchers to consider diminishing returns to scale from overarching emphases on governance or IT R&D over‐investments.

Practical implications

As multinational companies in developed countries increasingly offshore IT‐related R&D, this investigation is relevant, current, and disconcerting – implying the need for multinationals to revisit their IT R&D offshoring strategies and priorities.

Originality/value

These research findings do not support the “win‐win” pitch for IT R&D offshoring. Instead, this research points to the fact that, while there are some economic benefits derived from R&D FDI, there are inflection points beyond which innovations returns diminish. Where the inflection point lies depends on countries as well as specific firms and industries.

Details

Strategic Outsourcing: An International Journal, vol. 5 no. 1
Type: Research Article
ISSN: 1753-8297

Keywords

Article
Publication date: 26 October 2023

Gopal Kumar, Felix T.S. Chan and Mohit Goswami

The coronavirus (COVID-19) is the worst pandemic in recent memory in terms of its economic and social impacts. Deadly second wave of COVID-19 in India shook the country and…

Abstract

Purpose

The coronavirus (COVID-19) is the worst pandemic in recent memory in terms of its economic and social impacts. Deadly second wave of COVID-19 in India shook the country and reshaped the ways organizations functions and societies behave. Medical infrastructure was unaffordable and unsupportive which created high distress in the Indian society, especially for poor. At this juncture, some pharmaceutical firms made a unique social investment when they reduced price of drugs used to treat COVID-19 patients. This study aims to examine how the market and the society respond to the price reduction announcement during the psychological distress of COVID-19.

Design/methodology/approach

Market reactions have been analyzed by conducting an event study on stock market data and visual analytics-based sentiment analysis on Twitter data.

Findings

Overall, this study finds positive abnormal returns on the day and around the day of event. Interestingly, this study finds that returns during the time of high distress are significantly higher. Sentiment analysis conveys that net sentiment is favorable to the pharmaceutical firms around the day of event and it sustains more during the time of high distress.

Originality/value

This study is unique in contributing to the business and industrial management literature by highlighting market reactions to social responsibility of business during the time of psychological distress in emerging economies.

Details

Industrial Management & Data Systems, vol. 124 no. 1
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 30 October 2018

Giacomo Morri and Karoline Jostov

This paper aims to investigate the impact of leverage on the total shareholder return of European publicly traded real estate vehicles in three periods: Crisis Period (2007-2009)…

Abstract

Purpose

This paper aims to investigate the impact of leverage on the total shareholder return of European publicly traded real estate vehicles in three periods: Crisis Period (2007-2009), Rebound Period (2009-2014) and the Whole Period.

Design/methodology/approach

Cross-sectional analysis is used and the leverage effect on the performance is controlled for seven other independent variables (local market risk premium, size, book-to-market, short-term debt, cash); moreover, regional differences are accounted for.

Findings

It is established that during the Crisis Period, leverage levels are negatively associated with performance: this relationship also holds throughout the Whole Period, implying that for real estate securities, the cost of financial distress is larger than the potential gain from taxation, although the economic significance of it is limited. The Fama and French (1992) three factors, including size, book-to-market and local market risk premium, are found to be relevant, which is consistent with the literature. In addition, the UK and Sweden regions are identified as significant.

Originality/value

Even if there is sizeable body of literature on determinants of leverage and determinants of asset returns, little work has been done on how leverage affects the returns of European real estate companies. In addition, this paper takes advantage of observations from a full economic cycle and the possible effects of the crisis period.

Details

Journal of European Real Estate Research, vol. 11 no. 3
Type: Research Article
ISSN: 1753-9269

Keywords

Open Access
Article
Publication date: 5 January 2022

Ilkka Ritola, Harold Krikke and Marjolein C.J. Caniëls

Product returns information gives firms an opportunity for continuous strategic adaptation by allowing them to understand the reasons for product returns, learning from them and…

1778

Abstract

Purpose

Product returns information gives firms an opportunity for continuous strategic adaptation by allowing them to understand the reasons for product returns, learning from them and improving their products and processes accordingly. By applying the Dynamic Capabilities (DCs) view in the context of closed-loop supply chains (CLSC), this study explores how firms can continuously learn from product returns information.

Design/methodology/approach

This study adopts a qualitative Delphi study-inspired approach. Experts from industry and academia are interviewed in two interview rounds. First round of interviews are based on extant research, while the second round allows the experts to elaborate and correct the results.

Findings

This study culminates into a conceptual model for incremental learning from product returns information. The results indicate incremental learning from product returns can potentially lead to a competitive advantage. Additionally, the authors identify the sources of information, capabilities along with their microfoundations and the manifestations of product return information. Three propositions are formulated embedding the findings in DC theory.

Research limitations/implications

This study supports extant literature in confirming the value of product returns information and opens concrete avenues for research by providing several propositions.

Practical implications

This research elucidates the practices, processes and resources required for firms to utilize product returns information for continuous strategic adaptation. Practitioners can use these results while implementing continuous learning practices in their organizations.

Originality/value

This study presents the first systematic framework for incremental learning from product returns information. The authors apply the DC framework to a new functional domain, namely CLSC management and product returns management. Furthermore, the authors offer a concrete example of how organizational learning and DC intersect, thus advancing DC theoretical knowledge.

Details

The International Journal of Logistics Management, vol. 33 no. 5
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 1 April 2002

E.R. Laubscher

The underlying principle of the Capital Asset Pricing Model (CAPM) is that there is a linear relationship between systematic risk, as measured by beta, and expected share returns

1654

Abstract

The underlying principle of the Capital Asset Pricing Model (CAPM) is that there is a linear relationship between systematic risk, as measured by beta, and expected share returns. The CAPM attempts to describe this relationship by using beta to explain the differences between the expected returns on various shares and share portfolios. The CAPM has been the subject of considerable theoretical investigation and empirical research. The aim of this article is to establish the current knowledge of the usefulness of the CAPM, i.e. whether it provides a reasonable description of reality and whether it is a useful tool for investment decision‐making. The main conclusion drawn from the study is that the CAPM is useful and that it does describe and explain the risk/return relationship. However, other risk factors (i.e. other than beta) may also be useful for explaining share returns. Investors should therefore be cautious when using the model to evaluate investment performance.

Details

Meditari Accountancy Research, vol. 10 no. 1
Type: Research Article
ISSN: 1022-2529

Keywords

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