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1 – 10 of over 4000Sarah Franz, Axele Giroud and Inge Ivarsson
This study aims to analyse how multinational corporations (MNCs) organise value chain activities to penetrate new market segments. It contributes by expanding traditional…
Abstract
Purpose
This study aims to analyse how multinational corporations (MNCs) organise value chain activities to penetrate new market segments. It contributes by expanding traditional decisions regarding the vertical fine-slicing of value chain activities (whether performed internally or externally) and the consideration of resource-sharing decisions (integration or separation) for each value chain function.
Design/methodology/approach
The authors draw on primary data collected from two case study firms operating in the large emerging Chinese market: Volvo Construction Equipment AB and Epiroc AB. In-depth cases illustrate how foreign MNCs expand into new market segments and simultaneously target both the lower-priced mid-market and the premium segments in the Chinese mining and construction industry.
Findings
The results reveal that product diversification creates challenges for managers who must oversee new (vertical) value chains, often simultaneously. Beyond geography and modes of governance, managers must decide whether to integrate or separate value chain activities for the new product lines. The study identifies four main strategic choices for firms to address this complexity, focusing on the decision to internalise or externalise (i.e. within or across organisational boundaries) and integrate or separate value chain activities between different product lines.
Originality/value
This study builds upon the internalisation theory and recent international business contributions that focus on value chain configurations to explain MNCs’ product diversification as a growth strategy in a host emerging market. It also sheds light on the choice of conducting new activities in-house or externally and elucidates firms’ managerial decisions to operationally integrate or separate individual value chain activities. The study provides insights into the drivers explaining managerial decisions to configure value chain activities across product lines and contributes to the growing body of literature on MNC activities in emerging economies by highlighting that product diversification impacts entry mode diversity and resource sharing across units.
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K.S. Ranjani, Sumi Jha and Neeraj Pandey
After reading this case study, the students will be able to identify the various choices available in social e-commerce using network marketing, interpret data-driven decisions in…
Abstract
Learning outcomes
After reading this case study, the students will be able to identify the various choices available in social e-commerce using network marketing, interpret data-driven decisions in social e-commerce and evaluate their role in scaling business, analyse cost and revenue management in value segments, evaluate technology adoption among the masses using appropriate communication structures and develop customer relationships and manage their sentiments in the era of social media.
Case overview/synopsis
DealShare became a unicorn in 2022 and targeted the rural and low-income groups. Based on a networking model for customer acquisition and a hyperlocal supply chain model, DealShare is increasing its customer base at a rapid pace. However, profitability was still a challenge, and converting high volume into high value continued to be a daunting task. This case study delves deep into the challenges co-founder Sourjyendu Medda and the DealShare team faced. It seeks to address key issues: how should DealShare leverage customer network for faster customer acquisition and how should they increase ticket size and profitability? As a data-driven business, what advantages does DealShare have in influencing customers’ buying behaviour using data? Dependence on social media could have a cascading effect on “word of mouth”. How can they manage customer complaints and increase engagement?
Complexity academic level
This case study has the potential to be used in different settings. In strategic cost management, this case study can demonstrate strategies for cost management in the value-conscious segment. This case study can be used in marketing management courses while teaching “positioning” in business-to-consumer markets and CRM. For second-year management students, this can be used in entrepreneurship and strategic management courses to demonstrate the network effect in social e-commerce start-up businesses. This case study is also relevant for various course modules in graduate management programmes to demonstrate the power of data-driven decision-making in business.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 8: Marketing
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Somtochukwu Emmanuel Dike, Zachary Davis, Alan Abrahams, Ali Anjomshoae and Peter Ractham
Variations in customer expectations pose a challenge to service quality improvement in the airline industry. Understanding airline customers' expectations and satisfaction help…
Abstract
Purpose
Variations in customer expectations pose a challenge to service quality improvement in the airline industry. Understanding airline customers' expectations and satisfaction help service providers improve their offerings. The extant literature examines airline passengers' expectations in isolation, neglecting the overall impact of online reviews on service quality improvement. This paper systematically evaluates the airline industry's passengers' expectations and satisfaction using expectation confirmation theory (ECT) and the SERVQUAL framework. The paper analyzes online reviews to examine the relationship between airline service quality attributes and passengers' satisfaction.
Design/methodology/approach
The SERVQUAL framework was employed to examine the effects of customer culture, the reason for traveling, and seat type on customer's expectations and satisfaction across a large sample of airline customers.
Findings
A total of 17,726 observations were gathered from the Skytrax review website. The lowest satisfaction ratings were from passengers from the USA, Canada and India. Factors that affect perceived service performance include customer service, delays and baggage management. Empathy and reliability have the biggest impact on the perceived satisfaction of passengers.
Research limitations/implications
This research increases understanding of the consumer expectations through analysis of passengers' online reviews. Results are limited to a small sample of airline industries.
Practical implications
This study provides airlines with valuable information to improve customer service by analyzing online reviews.
Social implications
This study provides the opportunity for airline customers to gain better services when airline companies utilize the findings.
Originality/value
This paper offers insights into passengers' expectations and their perceived value for money in relation to seat types. Previous studies have not investigated value for money as a construct for passengers' expectations and satisfaction relative to service quality dimensions. This paper addresses this need.
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This study aims to develop a moderated mediation model that enables the examination of the direct relationship between brand orientation (BO) and export performance, the mediating…
Abstract
Purpose
This study aims to develop a moderated mediation model that enables the examination of the direct relationship between brand orientation (BO) and export performance, the mediating effects of external and internal branding capabilities on the BO-export performance link, and the moderating influence of institutional environment, i.e. regulatory turbulence and policy support.
Design/methodology/approach
A time-lag primary data was collected from two-wave survey of 684 cross-industry exporting small and medium-sized enterprises (SMEs) using an online-email based survey technique, and the research model was validated using ordinary least squares regression analysis in SPSSV.27 and Hayes’ PROCESS macroV.2.13.
Findings
Regression findings indicate that the relationship between BO and export performance is not direct, but rather mediated by means of both external and internal branding capabilities. It further helps to uncover the dual role of institutional environment, with regulatory turbulence weakening and policy support strengthening the indirect influences of BO on export performance via external and internal branding capabilities.
Research limitations/implications
This study advances branding literature by conceptualizing and empirically testing the role of BO associated with internal and external branding capabilities and, subsequently, with export performance.
Practical implications
The research findings indicate that brand-oriented SMEs must actively engage in the development of branding capabilities to improve their export performance.
Originality/value
While brand creation is essential for the success and growth of SMEs competing in the worldwide marketplaces, there is a dearth of research explaining the underlying mechanisms and boundary conditions through which BO influences export performance.
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After reviewing the literature focused on real-world course–client marketing projects as well as the literature regarding teaching entrepreneurial marketing (EM), the current…
Abstract
Purpose
After reviewing the literature focused on real-world course–client marketing projects as well as the literature regarding teaching entrepreneurial marketing (EM), the current paper assesses a census population (N = 106) of course–client projects selected by the current author via Riipen – an online course–project matching hub – for marketing courses taught from Spring 2018 through Spring 2023. The purpose of this paper is to uncover and explore the degree of EM teaching relevance of said course projects over the five-year span indicated.
Design/methodology/approach
All Riipen-sourced course–client projects selected by the current author for marketing courses taught from Spring 2018 through Spring 2023 (N = 106) were reviewed so that broad project-level and firm-level characteristics and trends – especially EM relevance – could be excavated and assessed over the five-year/10-semester span. In addition, an in-depth qualitative primacy-recency/bookend approach was taken with regards to the first semester (Spring 2018) and the most recent semester (Spring 2023).
Findings
The main finding is that Riipen-sourced course–client projects exhibited an increasingly high degree of EM relevance between Spring 2018 through Spring 2023. Project representatives at the founder/co-founder level or the equivalent made up only 20% of the pool in Spring 2018 yet constituted slightly over 94% of the pool by Spring 2023. Similarly, whereas only 33% of firms sourced and selected in Spring 2018 were in startup mode, fully 100% of firms selected in Spring 2023 were in startup mode.
Research limitations/implications
The population of 106 Riipen-sourced-and-selected course–client projects do not represent a statistically valid basis for “apples-to-apples” comparisons because: the population of projects was spread across multiple courses and across multiple semesters over a five-year span where many shifts and trends were ongoing – including impacts to course-delivery modality due to COVID-19, and it is likely that unconscious idiosyncratic biases of the current author were operant during selection. Moving forward, researchers are encouraged to pursue questions such as the following: are there statistically significant EM-related learning outcomes that differ for students paired to projects that vary across the preliminary project taxonomy detailed?
Practical implications
Many practical teaching recommendations regarding effective ways to source, select and integrate high-EM course–client projects into otherwise standard-issue marketing courses are made. The paper also serves as something of a primer on how best to source and adapt Riipen marketing projects. Cautionary teaching notes and recommendations based on the current author’s observations are also shared.
Social implications
Over the course of the five-period (Spring 2018 through Spring 2023), it was observed that a rapidly increasing percentage of firms on the Riipen platform self-identified as female-owned, minority-owned and/or LGBTQ-owned. Similarly, a moderately increasing percentage of marketing projects with “social entrepreneurship” and/or “social impact” and/or “environmental impact” elements were posted to the platform.
Originality/value
To the best of the author’s knowledge, this is the first peer-reviewed journal article to explore the EM value of real-world course–client marketing projects sourced via Riipen.
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This chapter examines how information and communication technology (ICT) initiatives affect customers’ everyday routines with an emphasis on how electronic word of mouth (eWOM…
Abstract
This chapter examines how information and communication technology (ICT) initiatives affect customers’ everyday routines with an emphasis on how electronic word of mouth (eWOM) affects their purchasing decisions and determines if eWOM might serve as a useful trust factor when making purchasing decisions. This chapter is based on both primary and secondary data and examines how eWOM affects customers’ buying decisions in this era of increasing social media platform usage. One hundred individuals from various regions of Karachi provided the primary data, collected through an online survey. Secondary data are also employed, such as details from business websites, scientific papers, and other related publications of businesses. In Karachi’s developing digital market, it was discovered that eWOM via social media used to have a substantial impact on consumers’ shopping habits. The effectiveness of social media content depends greatly on how appropriate it is for the intended audience. Social media marketing doesn’t quite simply aim to improve consumers’ impressions or directly advertise things. It also entails maintaining and fostering relationships between businesses and prospective customers. According to the research, consumers’ recommendations and ratings of goods and services made on social media, whether through eWOM or another channel, influenced their decisions to buy. Customers consider social media to be trustworthy when making decisions about what to buy. Customers are currently adopting social media as opposed to more conventional means to learn about new products. Most customers believe that eWOM from social media greatly affected their shopping choices, according to the results of the study.
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The current research aims at investigating the mediating effect of electronic word of mouth (eWOM) on the link between entrepreneurial education and choice of the university among…
Abstract
Purpose
The current research aims at investigating the mediating effect of electronic word of mouth (eWOM) on the link between entrepreneurial education and choice of the university among students. The main focus of this paper is that when entrepreneurial education is properly-implemented at universities, it leads to several positive outcomes such as positive eWOM. Therefore, if the entrepreneurial education is used as a marketing model, it can be considered as the innovative model for attracting more students. By implementing this model, the university can enhance its approach to cultivating a positive image, potentially leading to increased student enrollments.
Design/methodology/approach
The study used a sample of 483 undergraduate students in different universities. As well, it used a structured questionnaire during the data collection. Additionally, the study used partial least squares (PLS-SEM) in analyzing direct and indirect relationships.
Findings
The findings of this study suggest that entrepreneurial education and eWOM are critical factors for student selection to the universities. This is because eWOM significant mediates the link between entrepreneurial education and university choice.
Research limitations/implications
This study used cross-sectional design. Therefore, future research can use a longitudinal design in examining the link between independent and dependent variables so as to look into the changes over time.
Practical implications
The study presents potential strategies that universities can employ to market their programs more effectively. By strengthening their entrepreneurial education initiatives, universities can enhance their reputation and create positive eWOM, which can lead to higher enrollments.
Originality/value
This study offers innovative marketing approaches for universities and their programs. Instead of heavily investing in advertising, the study suggests that strengthening entrepreneurial education initiatives can be a more effective marketing strategy. The findings suggest that a positive reputation generated by strong entrepreneurial education initiatives can lead to positive eWOM, which, in turn, influences university selection. Therefore, universities can consider enhancing their entrepreneurial education offerings to attract more prospective students. The study also highlights the notion that quality speaks for itself, while a lack of quality requires advertising.
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Anas Ghazalat and Said AlHallaq
This study aims to investigate the effect of accounting conservatism and business strategies as mitigating tools for bankruptcy risk. It determines the association among these…
Abstract
Purpose
This study aims to investigate the effect of accounting conservatism and business strategies as mitigating tools for bankruptcy risk. It determines the association among these factors and provides insights into the effectiveness of accounting discretion and business strategies in decision-making.
Design/methodology/approach
The study uses a sample of 83 nonfinancial listed firms in ASE for the period from 2013 to 2019. Bankruptcy risk is measured using the Altman Z-score (1968). Accounting conservatism is measured using the accrual-based approach, and optimal business strategies are identified through cluster analysis.
Findings
The results indicate that accounting conservatism has a significant negative effect on bankruptcy risk. Increased application of accounting conservatism practices leads to a decrease in the level of bankruptcy risk. However, the type of business strategy adopted by firms does not have a significant impact on bankruptcy risk, suggesting that firms are not effectively implementing their strategies to mitigate this risk.
Research limitations/implications
This study focuses on nonfinancial listed firms in the ASE, limiting the generalizability of the findings to other contexts. The study's findings contribute to the understanding of the role of accounting conservatism in reducing bankruptcy risk but highlight the need for further research on the effectiveness of business strategies in mitigating this risk.
Originality/value
This study lies in understanding of the role of accounting discretion in financial evaluations and emphasizes the importance of accounting conservatism as a tool for mitigating bankruptcy risk. The study's insights provide valuable guidance to practitioners, regulators and researchers in this field.
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Kai Wang, Massimiliano Matteo Pellegrini, Kunkun Xue, Cizhi Wang and Menghan Peng
Digital technologies over time are becoming increasingly pervasive and relatively affordable, finding a large diffusion in Small and Medium Enterprises (SMEs) also for…
Abstract
Purpose
Digital technologies over time are becoming increasingly pervasive and relatively affordable, finding a large diffusion in Small and Medium Enterprises (SMEs) also for internationalization purposes. However, less is known about the specific mechanisms by which this can be achieved. Specifically, we focus on how SMEs can face the international environment, leveraging digital technologies and thanks to their intellectual capital (IC).
Design/methodology/approach
We analyze the relationship between digital technologies and the internationalization of SMEs, exploring the mediating role of IC in its three dimensions: human, relational and innovation capital, and assessing the possible moderating effects posed by international institutional conditions, specifically the Sino-US trade frictions. The relationships are tested using a sample of companies listed on China’s A-share Growth Enterprise Market (GEM) from 2010 to 2021.
Findings
Digital technologies help to internationalize SMEs. However, this positive relationship is affected (mediated) by the presence of an already consolidated IC. In addition, the institutional conditions of the international market, such as the Sino-US trade friction, moderate the components of IC differently. Specifically, the overall mediating effect of human and relational capital is boosted, while this does not happen for innovation capital.
Originality/value
First, this study contributes to the literature on organizational resilience, especially digital resilience, confirming its validity in the context of internationalization and, in particular, those processes adopted by SMEs. Second, we clarify the mechanisms through which digital technologies exert their impact on the process of internationalization and in particular the prominent necessity of having IC. Third, our conclusions enrich the understanding of how IC components react to turbulence in international markets.
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Suhas M. Avabruth, Siva Nathan and Palanisamy Saravanan
The purpose of this paper is to examine the relationship between accounting conservatism and pledging of shares by controlling shareholders of a firm to obtain a loan. The…
Abstract
Purpose
The purpose of this paper is to examine the relationship between accounting conservatism and pledging of shares by controlling shareholders of a firm to obtain a loan. The pledging of shares by the controlling shareholders of a firm results in alterations to the payoff and risk structure for these shareholders. Since accounting numbers have valuation implications, pledging of shares by a controlling shareholder has an impact on accounting policy choices made by the firm. The purpose of this paper is to examine the impact of controlling shareholder share pledging to obtain a loan on a specific accounting policy choice, namely, conservatism.
Design/methodology/approach
The paper uses a large data set from India comprising 14,786 firm years consisting of 1,570 firms belonging to 58 industries for a period of 11 years (2009–2019). The authors use ordinary least square regression with robust standard errors. The authors conduct robustness checks and the results are consistent across alternative statistical methodologies and alternative measures of the primary dependent and independent variables.
Findings
The primary results show that pledging of shares by the controlling shareholders results in higher conditional conservatism and lower unconditional conservatism. Further analysis reveals that the relationship is stronger when the controlling shareholder holds a majority ownership in the firm. Additionally, the results show that for business group affiliated firms, which are unique to developing countries, both the conditional and the unconditional conservatism are incrementally lower when the controlling shareholder pledges the shares. For family firms with a family member as CEO, the conditional conservatism is incrementally higher and the unconditional conservatism is incrementally lower. Finally, the authors show that the results hold when the pledge intensity variable is measured with a one-year lag and finally, the authors show that conditional conservatism is incrementally higher in the year of the increase in the pledge and the year after, but there is no such incremental impact on unconditional conservatism.
Research limitations/implications
The research is limited to the listed firms in India. Since majority of the listed firms are controlled by families and the family firms around the world are heterogeneous the findings of the research may not be applicable to other countries.
Practical implications
The study has implications for policy-making and monitoring of the pledging by the controlling shareholders. It also helps the investors in making investment decisions with respect to family firms in India.
Originality/value
The study is unique as it focuses on the relationship between pledging of shares by the controlling shareholders and its impact on accounting conservatism. To the best of the authors’ knowledge, this is the first research integrating these two aspects.
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