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1 – 10 of over 22000Lidong Wu, Qingyun Wang and Kunkun Xue
Shareholder heterogeneity reflects the interactive relationship between shareholder groups of different industries and ownership types. This paper aims to discuss the impact of…
Abstract
Purpose
Shareholder heterogeneity reflects the interactive relationship between shareholder groups of different industries and ownership types. This paper aims to discuss the impact of shareholder heterogeneity on ambidextrous corporate innovation.
Design/methodology/approach
Combining questionnaire and database data, this study empirically analyzes the internal mechanisms of the impact of shareholder heterogeneity on ambidextrous corporate innovation.
Findings
The authors find that shareholder heterogeneity can promote ambidextrous corporate innovation and that board’s decision-making processes play an intermediary role. Specifically, shareholder industry-type heterogeneity promotes ambidextrous corporate innovation by improving procedural rationality in board’s decision-making process, and shareholder ownership-type heterogeneity promotes ambidextrous corporate innovation by improving political behavior in board’s decision-making process. The analysis of the impact degree shows that shareholder industry-type heterogeneity has a greater impact on exploitation innovation, while shareholder ownership-type heterogeneity has a greater impact on exploratory innovation. In addition, the research also shows that shareholder groups dominated by industry-type heterogeneity have an impact on corporate innovation by shaping an engaged board with higher procedural rationality and lower political behavior. Shareholder groups dominated by ownership-type heterogeneity have an impact on corporate innovation by shaping a contested board with higher political behavior and lower procedural rationality.
Originality/value
This study not only enriches the research on shareholder heterogeneity and corporate innovation in the context of transformation but also provides an analytical framework for research on board’s decision-making process.
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Wayne S. DeSarbo, Qiong Wang and Simon J. Blanchard
The paper aims to examine the nature of competition within an industry by proposing and examining three separate sources of competitive heterogeneity: the strategies that industry…
Abstract
Purpose
The paper aims to examine the nature of competition within an industry by proposing and examining three separate sources of competitive heterogeneity: the strategies that industry members use, the performance that they obtain, and how effectively the strategies are utilized to obtain such performance results.
Design/methodology/approach
To do so, a restricted latent structure finite mixture model is devised that can quantify the contribution of these three potential sources of heterogeneity in the formulation of latent competitive groups within an industry. The paper illustrate this modeling framework with respect to COMPUSTAT strategy and performance data collected for public banks in the USA.
Findings
The paper shows how traditional conceptualizations via strategic or performance groups are inadequate to fully represent intra‐industry heterogeneity.
Originality/value
This research paper proposes a new class of restricted finite mixture‐based models, which fit a variety of alternative forms/models of heterogeneity. Information heuristics are developed to indicate “best model.”
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– The purpose of this study was to analyze the impact of top management teams on firms' value chain action intensity and value chain activity heterogeneity.
Abstract
Purpose
The purpose of this study was to analyze the impact of top management teams on firms' value chain action intensity and value chain activity heterogeneity.
Design/methodology/approach
The study was conducted from an emerging market perspective. The sample was based on the secondary data collected from three fast-growing industries in India: automobile, pharmaceutical and fast-moving consumer goods over the three-year period from 2009 to 2012. The Panel Poisson and Tobit regression have been used to conduct this study.
Findings
Drawing upon the upper echelon theory, the author found that a top management team's educational level, functional heterogeneity and total organizational tenure influence value chain action intensity and value chain activity heterogeneity.
Originality/value
The author introduces the concept of value chain action intensity and value chain action heterogeneity and investigates the role of the upper echelon in influencing intensity and heterogeneity.
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Jiangnan Qiu, Liwei Xu, Min Zuo, Jingxian Wang and Weadon Helen
Online knowledge integration has been an important concern of the online knowledge community as it can lead to various positive outcomes of online knowledge coproduction. This…
Abstract
Purpose
Online knowledge integration has been an important concern of the online knowledge community as it can lead to various positive outcomes of online knowledge coproduction. This paper identifies online knowledge integration factors by considering group heterogeneity and group interaction process.
Design/methodology/approach
Based on the categorization-elaboration model (CEM) and interactive team cognition (ITC) theory, a research model that reflects the antecedent's factors and mediating factors of online knowledge integration was developed and empirically examined based on data collected from 2,339,836 data extracted from Wikipedia.
Findings
Group interaction process plays an essential mediator role in online knowledge integration. Group knowledge heterogeneity negatively influences online knowledge integration and group experience heterogeneity positively, and they both positively promote online knowledge integration through group interaction process with different paths.
Research limitations
Our research concerns the OKC context in one setting (Wikipedia). We expect that the results will generalize to other OKC platforms.
Practical implications
The findings of the study could assist the online knowledge community's organizers to understand the motivational mechanisms of online knowledge integration. Group interaction process could be regarded as the key role to promote group wisdom and maintain group independence.
Social implications
We advance the understanding of the online knowledge integration and gain a richer understanding of the importance of group interaction independence for online knowledge integration based on the agreement of group wisdom. It suggested keeping group interaction independence is an important aspect for highly online knowledge integration among heterogeneity groups.
Originality/value
This study extends CEM and ITC theory to the domain of knowledge integration context and finds the mechanism between group heterogeneity and online knowledge integration by introducing the group interaction process.
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Consumer expectation not only influences purchase decision but also post-purchase satisfaction and word-of-mouth (WOM). This study aims to develop theories of initial expectation…
Abstract
Purpose
Consumer expectation not only influences purchase decision but also post-purchase satisfaction and word-of-mouth (WOM). This study aims to develop theories of initial expectation management by suggesting when it is desirable for new products to raise or lower consumer expectations. It systematically examines the interplay of product value and consumer heterogeneity in the dynamic process of new product diffusion under competition.
Design/methodology/approach
Drawing on traditional diffusion and choice models, this study develops an agent-based model to formalize and analyze how consumers’ initial expectations of a new product influence the interdependent processes of product sales, consumer satisfaction and WOM. The simulation analyses in controlled settings help understand the underlying mechanisms in a stepwise manner.
Findings
The results show that, although the optimal strategy for low-value products is to induce consumer expectations higher than product value, high-value products are better introduced with expectations formed close to it. The results also highlight an important drawback of “under-promising” strategies in reducing the base and volume of WOM. Further, the analysis illustrates how consumer heterogeneities in product valuation and initial expectation affect the effectiveness of expectation management. For high-value products, both heterogeneities reduce the effectiveness of the optimal strategy. For low-value products, however, value heterogeneity enhances the effectiveness, whereas expectation heterogeneity reduces it.
Practical implications
Firms introducing new products should be sensitive to how consumers value the product and form expectations about it. Different from firms that must rely on aggressive advertising to sell inferior products by building up high expectations, those with superior products can rely more on the power of consumer WOM, which is much less costly and thus gives them a competitive advantage. Firms should also pay attention to how diversified the consumers are in product valuation and expectation. The expectation management strategy is more effective when consumers form more similar expectations. Inferior firms may leverage this mechanism to neutralize their disadvantages.
Originality/value
The articulated mechanisms help push forward the research on new product diffusion and consumer expectation management. To the best of the authors’ knowledge, this is one of the first studies to systematically analyze the impact of consumer heterogeneity on the effectiveness of expectation management.
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Seyed Hossein Razavi Hajiagha, Shide Sadat Hashemi and Hannan Amoozad Mahdiraji
Data envelopment analysis (DEA) is a non-parametric model that is developed for evaluating the relative efficiency of a set of homogeneous decision-making units that each unit…
Abstract
Purpose
Data envelopment analysis (DEA) is a non-parametric model that is developed for evaluating the relative efficiency of a set of homogeneous decision-making units that each unit transforms multiple inputs into multiple outputs. However, usually the decision-making units are not completely similar. The purpose of this paper is to propose an algorithm for DEA applications when considered DMUs are non-homogeneous.
Design/methodology/approach
To reach this aim, an algorithm is designed to mitigate the impact of heterogeneity on efficiency evaluation. Using fuzzy C-means algorithm, a fuzzy clustering is obtained for DMUs based on their inputs and outputs. Then, the fuzzy C-means based DEA approach is used for finding the efficiency of DMUs in different clusters. Finally, the different efficiencies of each DMU are aggregated based on the membership values of DMUs in clusters.
Findings
Heterogeneity causes some positive impact on some DMUs while it has negative impact on other ones. The proposed method mitigates this undesirable impact and a different distribution of efficiency score is obtained that neglects this unintended impacts.
Research limitations/implications
The proposed method can be applied in DEA applications with a large number of DMUs in different situations, where some of them enjoyed the good environmental conditions, while others suffered from bad conditions. Therefore, a better assessment of real performance can be obtained.
Originality/value
The paper proposed a hybrid algorithm combination of fuzzy C-means clustering method with classic DEA models for the first time.
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Amit Tripathy and Shigufta Hena Uzma
The present paper attempts to explain the impact of debt diversification and various debt financing sources on firm value. The paper also aims to address the long-run causality of…
Abstract
Purpose
The present paper attempts to explain the impact of debt diversification and various debt financing sources on firm value. The paper also aims to address the long-run causality of various factors affecting firm value.
Design/methodology/approach
The study employs a dynamic panel data model for a sample of 233 listed firms from 2010 to 2019. Two-step generalized method of moments (GMM) is devised to study the impact of firm-specific factors on firm value.
Findings
The study establishes a negative impact of debt diversification on firm value. Further, the results also signal how the choice of debt instruments has a heterogeneous effect on firm value. Non-bank debt leads to a discount in firm value, while bank debt has no effect on firm value. The long-run determinants of firm value are debt ratio, tangibility and liquidity.
Research limitations/implications
The findings of the study would aid the mangers in making informed decisions regarding the debt financing structure. Too much reliance on non-bank debt instruments leads to a negative impact on firm value. Therefore careful evaluation is necessary before accessing multiple debt sources.
Originality/value
Debt heterogeneity is globally established; however, its presence in the Indian context has not been validated extensively. The study not only validates the existence of debt diversification but also investigates how individual debt instruments affect firm value that is yet to be examined in the Indian context.
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This paper aims to examine how population heterogeneity contributes to poverty in 17 high-income Organization for Economic Cooperation and Development countries during 1980-2005…
Abstract
Purpose
This paper aims to examine how population heterogeneity contributes to poverty in 17 high-income Organization for Economic Cooperation and Development countries during 1980-2005.
Design/methodology/approach
The operational strategy involves linking poverty with heterogeneity directly as well as indirectly through welfare state policies as a latent variable in a structural equation framework.
Findings
Findings support the widely held poverty-reducing roles of welfare state policies. Ethno-racial and religious diversities are found to positively contribute to welfare state policies and, through them, lower poverty, whereas immigration assumes opposite roles.
Research limitations/implications
Data limitations on population and especially ethno-racial and religious heterogeneity caution against definitiveness.
Originality/value
The findings are useful in understanding the heterogeneity connection of welfare state policies and poverty.
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Raquel Chocarro, Monica Cortiñas and Maria Luisa Villanueva
The purpose of this study is to identify customer-specific differences in a general model of e-loyalty taking into account the existence of unobserved heterogeneity. Specifically…
Abstract
Purpose
The purpose of this study is to identify customer-specific differences in a general model of e-loyalty taking into account the existence of unobserved heterogeneity. Specifically, this paper aims to test for the presence of customer heterogeneity; assess the impact of potential bias when there is no control for heterogeneity; analyse the distinct customer segments that emerge from the empirical estimation of the model; and describe the segments by their demographic and psychological characteristics.
Design/methodology/approach
Panel data from a survey of online shoppers are used in a post hoc segmentation method, which will enable us to identify segments, while estimating the parameters by means of structural equation models.
Findings
Three distinct consumer segments emerge. The relative importance of e-loyalty and e-satisfaction is significantly determined by consumers’ shopping styles.
Originality/value
This study highlights the need to consider unobserved customer heterogeneity when attempting to explain satisfaction and loyalty development processes in the retail context in general and e-commerce in particular. To the authors’ knowledge, this is the first time this approach has been used to analyse the impact of customer heterogeneity on e-satisfaction and e-loyalty.
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Young Chul Song and Han Young Lie
The purpose of this paper is to estimate the direct effects of foreign direct investment (FDI) on domestic target firms’ profitability gains, in India, post-acquisition. In…
Abstract
Purpose
The purpose of this paper is to estimate the direct effects of foreign direct investment (FDI) on domestic target firms’ profitability gains, in India, post-acquisition. In particular, it focuses on identifying the importance of firms’ heterogeneities on the effects, taking into account the source of FDI, the intensity of firm interaction, and the target firms’ technology-absorptive capacity. Most importantly, the paper investigates whether the estimates depend on a combined rather than single impact of these heterogeneities.
Design/methodology/approach
To control for the possibility of selection bias and endogeneity, this empirical analysis uses a methodology that combines propensity score matching and difference-in-differences (PSM–DID) in adopting a comprehensive data set of both foreign- and Indian-acquired firms that were purchased through mergers and acquisitions in India between 1991 and 2013.
Findings
The analysis reveals four major findings. First, overall, the post-foreign acquisition target firms’ performance gains were positive and varied by the heterogeneous technology transfer capacity of the foreign investor. Second, it is possible that target firms located in industrial clusters with more foreign agglomeration experienced larger profitability gains through more dynamic firm interactions in terms of spillovers. Third, Indian targets with higher technology-absorptive capacity benefitted in higher profitability gains from acquiring and assimilating the superior technology that is transferred from foreign investors. Finally, an optimal combination of Indian target firms with higher technology-absorptive capacity and foreign investors with higher technology transfer capacity maximizes profitability gains, post-acquisition. This synergy effect is particularly prominent in clusters where more foreign firms agglomerate.
Originality/value
This study captures the true direct effect of FDI by adjusting the combined causal effects of various inherent heterogeneities in the target firms’ performance, thus correcting any possible bias, which few previous studies have addressed.
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