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Joint ventures (JVs) are known to create value for their parent firms, in part due to the mutually beneficial sharing of information that occurs at the JV level. Market orientation (MO) is a well-documented strategic orientation that has received little attention in the JV literature, despite considerable research suggesting that MO has a positive effect on performance. This study posits that the MO skills contributed to a new JV by parent firms are likely to play a central role in a shareholder's assessment of the potential for success of a newly announced JV, thereby triggering changes in market value for parent firms.

Computer-Assisted-Text-Analysis (CATA) is used to calculate MO heterogeneity from annual reports, and event-study methodology is used to assess parent firm performance. The authors rely on a US sample of 82 public JV parents involved in 41 new equally-weighted JV formation announcements.

The authors find that heterogeneity on MO's behavioral components (customer orientation, competitor orientation, and coordination) is negatively related to parent performance, while heterogeneity on MO's profitability component is positively related to parent performance. However, the effect of MO's long-term focus heterogeneity on parent performance was not supported.

The results suggest that the benefits of information sharing in partnerships may be of a nuanced nature when it comes to MO. Although heterogeneity in profitability inclination created value for parent firms announcing a new JV; heterogeneity in customer, competitor and coordination market orientations did not appear to be rewarded by shareholders.

The purpose of this paper is to investigate the relationship between poverty and technical efficiency (TE) of paddy farmers in presence of their heterogeneous selling behaviours. This paper explains how such behavioural heterogeneity affects this relationship in south-western Bangladesh.

Translog production frontier model was used to estimate TE since it fitted the data set better. On the other hand, poverty indices were constructed by using P-α method. Then, multinomial logit models examined the existence of heterogeneous selling behaviours. It revealed adequate evidences in favour of behavioural heterogeneity. Finally, the authors employed a series of two stage instrumental variable regression models to relate poverty and TE with and without considering the behavioural heterogeneity.

The study finds that around 18, 39 and 44 per cent of households exhibit autarkic, non-wholesaling and wholesaling behaviour, respectively. Market failure due to transaction cost and credit constraints leads to emergence of such heterogeneity. Across these heterogeneous behaviours, impact of improving TE on poverty status significantly differs. Without controlling behavioural heterogeneity, TE significantly improves the poverty status of the rural farm households. However, scenario is changed after controlling this heterogeneity. After behavioural segregations, TE improves poverty status only for wholesalers. In contrary to prior expectation, it worsens the poverty situation for both autarkic and non-wholesaling households. Simultaneous failure in both credit and product market for these households might be the plausible reason behind this heterodox finding. Credit market failure compels these households to borrow from local money lenders with costlier terms. This effort might improve their TE. But, product market failure makes their additional production due to improved TE unsold. Thus, repayment of credit directly reduces their consumption expenditure. Therefore, an effort to improve TE might increase prevalence and depth of poverty when market failure exists. Henceforth, the improvement of TE appears as an effective policy instrument only when households exhibit wholesaling behaviour.

The earlier studies show the relationship between TE and poverty status but did not account behavioural heterogeneity. The authors attempt to overcome this shortcoming and show how market failure induced behavioural heterogeneity affects the effectiveness of TE on improving poverty status of farm households.

This paper aims to apply the heterogeneous autoregressive model of realized volatility (HAR-RV) model to minimum-variance hedge ratio estimation and compares the hedging performance of presenting a model with that of a conventional rolling ordinary-least-square (OLS) hedging model. Moreover, this paper empirically analyzes the relationship between hedging performance and the heterogeneity of investors with different trading frequency in forming the expectation for the spot volatility, futures volatility and the covariance in the market.

Use HAR-RV to form expectations of participants of spots and futures market for the next period volatility based on two parts. One is the current observable realized volatility at the same time scale. The other is the expectation for the next longer time scale horizon volatility. Compare hedging performance with rolling OLS model and HAR-RV model. Present a three-times-scale-length (daily, weekly and monthly) HAR-RV model for the spot and futures returns and volatility to analyze the relationship between the hedging performance and the heterogeneity among participants in each market.

The empirical results show that HAR-RV model outperforms the rolling OLS in terms of variance reduction and expected utility in the out-of-sample period. The results also indicate that the greater variance reduction occurs when investors with different trading frequency have a less heterogeneous expectation for spot volatility and more heterogeneous expectation for futures volatility and the covariance. In addition, the expected utility increases along with lower heterogeneity in spot volatility and higher in futures volatility and the covariance. Hedging performance improves along with decreasing heterogeneity of investors in spot volatility and increasing heterogeneity in futures volatility and the covariance.

This paper considers the heterogeneity of participants in spot and futures market, the authors apply HAR-RV model to MVHR estimation and compare the hedging performance of presenting a model with that of conventional rolling OLS hedging model, providing more evidence in hedging literature. This paper analyzes in depth the relationship between hedging performance and the heterogeneity in the market.

Most international marketing studies, taking a sociological position, assume homogeneity within and heterogeneity between cultures. Taking a psychological position and based on the Mindscape Theory, the purpose of this paper is to support the hypothesis that there is intra-cultural and intra-market heterogeneity.

The translated survey for international use has many problems. These problems can greatly be minimized by the use of pictorial/geometric shapes that were used in this study. These shapes were constructed using redundant and non-redundant complexity, and made to be culture neutral.

Data analysis supported the presence of three of the four Mindscape types as was hypothesized, indicating individual intra-market heterogeneity in the three cultures under investigation. Additionally, the corollary hypothesis of transcultural heterogeneity was confirmed.

It has been proposed that Mindscape types are partly innate and partly learned. What proportions constitute each part? Can the learned aspect be unlearned? Can different marketing strategies appeal to each? What marketing programs are better suited to influence the learned aspect? Future studies could explore these issues.

The findings of this paper have wide applicability and implications for international marketing strategy, including ways of deploying market segmentation, target marketing, positioning strategies, as well as configurations of marketing mix elements.

This paper used a novel and unique way for data collection and analysis. A geometric-pictorial survey was used for data collection. Data analysis was done with factor analysis and cluster analysis combined.

This study aims to examine the effects of top management team (TMT) heterogeneity and corporate social responsibility (CSR) on the firm risk of Bursa Malaysia listed firms. Also, this study examines the moderating effect of CSR between TMT heterogeneity and firm risk.

This study uses panel regression models to test the hypotheses. The sample of this study is Bursa Malaysia non-financial listed firms from 2013 to 2017 with 3,055 observations.

This study finds significant effects of TMT age and tenure heterogeneities on total risk. Effects on idiosyncratic risk are evident only within age heterogeneity. Further, this study finds negative effects of CSR on total and idiosyncratic risks. CSR significantly moderates the relationship between total TMT heterogeneity and firm systematic risk.

This study reduces the literature gap by providing useful insights on the effects of CSR activities and TMT heterogeneity on firm risk. The findings can also provide hints to investors to assist them in assessing firm risk based on TMT heterogeneity and firms’ CSR. This study can also benefit shareholders in their attempts to mitigate the risk of their portfolio by investing in firms that are socially responsible as firms with high CSR suffer lower total and idiosyncratic risks.

Previous studies have emphasised on the influence of TMT characteristics and CSR on firm performance. However, studies that investigate the effects of TMT heterogeneity and CSR on firm risk are limited in the context of Malaysia.

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.

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.

The paper shows how traditional conceptualizations via strategic or performance groups are inadequate to fully represent intra‐industry heterogeneity.

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.”

The empirical studies of the options market efficiency have reported contradictory results, which sometimes confuse practitioners and academicians. The aim of this study was to clarify several aspects of options market efficiency by exploring the answers to two main questions: Under what conditions is the options market more efficient? Are the discrepancies in the estimated efficiency due to the reality of efficiency or mismeasurement?

Using a meta-analysis approach, 54 studies have been analyzed, which included 1,315 tests. The sum of the observations for all of the tests is 3.7 m observation sets. The effect size (type r) has been used to compare the different statistics in different studies. The cumulative effect size and its diversification have been calculated by the random effects model and Q statistic, respectively.

The most interesting finding of the study was that the options market, in all circumstances, is significantly inefficient. Another important finding was that the heterogeneity of options market efficiency is due to the complexity of pricing relations, test time, violation index and price type. To overcome this heterogeneity and accuracy, future studies should test the no-arbitrage options pricing relations at different times and by different price types, using complex and simple pricing relations and either mean violation or violation ratio efficiency measures.

Public disagreement about the options market efficiency in past studies means that this variable is heterogeneous in different conditions. As a significant contribution, this study develops the literature by proposing the causes of options market efficiency heterogeneity.

This study aims to explore optimal pricing strategies for innovations with direct network externalities – the effect that the number of adopters of an innovation has on the utility of the innovation to other potential adopters. Examples of such innovations are fax machines, e‐mail, cellular phones, and software programs such as word processors. The success of these innovations requires a minimum number of adopters.

The paper uses agent‐based modeling and simulation.

The relationship between price and net present value (NPV) of revenue resembles an asymmetric inverse U‐shape. A low‐pricing strategy outperforms high‐pricing, while a moderate‐pricing strategy outperforms both low‐ and high‐pricing strategies. Moreover, heterogeneity of consumer price sensitivity positively affects the NPV of sales.

Pricing durable new products with network externalities is more challenging than other types of innovations. The results indicate that firms can maximize their NPV by adopting a moderate pricing strategy. Moreover, firms must consider heterogeneity of consumer price sensitivity along with the market price elasticity when making pricing decisions. Detailed strategic implications and recommendations are discussed.

Several recent studies have called for examining pricing strategies for new products with network externalities. The study findings challenge the common wisdom that a penetration pricing strategy is an optimal approach for durable products with network externalities. Moreover, while other studies have highlighted the importance of market price elasticity, extensive simulation experiments conducted in this study show that heterogeneity of consumer price sensitivity is an important factor that must be considered. Finally, the study presents an agent‐based modeling approach for exploring optimal pricing of innovations with network externalities.

This paper extends the concept of market orientation from the firm to the value chain level and seeks to develop empirically founded propositions on determinants of different levels of market orientation of value chains.

Four case studies on value chains within the areas of agribusiness and fisheries are conducted. For each value chain, desk research is combined with interviews with decision‐makers of all types of value chain members. Interview guidelines were derived from a conceptual model of potential determinants of value chain market orientation.

Degree of market orientation of value chains is found to be related to degree of heterogeneity and dynamism of end‐users served, nature of chain relationships, regulations and prevailing mental models of decision‐makers. Short and balanced chains are believed to further upstream market orientation.

The results point at two areas, where additional research on market orientation is called for: a better conceptualization of market intelligence and theorizing on most cost effective ways of being market oriented, including implications for the distribution of market oriented activities among value chain members.

The paper underlines the importance of managing channel relationships, up to and including vertical integration, when serving markets with high degrees of end‐user volatility.

This paper is the first empirical contribution to the market orientation literature employing a perspective encompassing the whole value chain.