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Article
Publication date: 3 August 2021

Karin Teichmann

Controversy exists about the shape of the relationship between loyalty and profitability. This paper aims to address the possibly nonlinear effects of behavioral loyalty…

Abstract

Purpose

Controversy exists about the shape of the relationship between loyalty and profitability. This paper aims to address the possibly nonlinear effects of behavioral loyalty (BLOY) on customer spending (as a proxy for profitability). Building on social exchange theory and the norm of reciprocity, it examines the asymmetries between BLOY and customer spending and the moderating influence of personal communication (PCOMM) as a social reward and dispositional positive reciprocity as process evidence.

Design/methodology/approach

Study 1a (n = 309) gathered customer data from four restaurants and Study 1b (n = 252) data from hotel guests after they checked out. Study 2 is an experimental study with two manipulated factors BLOY and PCOMM). In total, 295 participants from a large German online panel completed the study.

Findings

The results indicate an inverted-U shaped relationship between BLOY and customer spending: after reaching a turning point, customers gradually curb spending as their BLOY further increases. High PCOMM acts as a reciprocal response while triggering additional customer spending particularly at higher levels of behavioral loyalty; positive reciprocity adjusts the differences in customer spending when social rewards such as PCOMM are present.

Research limitations/implications

The asymmetric relationship between BLOY and customer spending is tested only for hedonic service settings.

Practical implications

Not all loyal customers spend more – companies need to meet their reciprocal obligations before they can benefit from increased customer spending.

Originality/value

The present research re-considers the nature of the relationship between BLOY and customer spending and reveals an inverted-U shaped relationship, with a turning point beyond which greater customer loyalty decreases customer spending. It finds converging process evidence for the mechanism of reciprocity underlying this relationship. This study also details the financial impact of BLOY on the firm by investigating actual customer spending.

Details

European Journal of Marketing, vol. 55 no. 13
Type: Research Article
ISSN: 0309-0566

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Book part
Publication date: 21 May 2021

Muhammad Raheel Matloob and Syed Tahir Hussain Rizvi

Introduction: The current study examines the relationship of reciprocity and the knowledge sharing behavior (KSB) with the mediating role of organizational commitment.Aim:

Abstract

Introduction: The current study examines the relationship of reciprocity and the knowledge sharing behavior (KSB) with the mediating role of organizational commitment.

Aim: The purpose of this chapter is to examine linkages between reciprocity and KSB in Pakistani Pharmaceutical industry basing on social exchange theory (SET) (Blau, 1964). Employees’ affective and normative organizational commitments were proposed as mediator to explain these relationships.

Method: Data were collected using Survey Questionnaires from a sample of 287 managers and staff of sales department of different pharmaceutical firms in Rawalpindi and Islamabad, Pakistan. This is an explanatory study with a quantitative approach. KSB model was developed and tested using a two-stage analysis. Initially, path analysis using AMOS was carried out followed by mediation through process analysis.

Findings: Affective and normative commitment was found to be mediating between reciprocity and KSB using SET.

Originality of the Study: Few empirical studies have analyzed the effects of reciprocity on KSB, especially in context of pharmaceutical industry. Mediation of employee’s commitment could provide new insights to management practitioners in fostering KSB.

Implications: The finding will allow organizations in general and pharmaceutical firms in particular, to focus more on commitment toward their employee as a reciprocal benefit for improving knowledge sharing culture in their organizations.

Details

New Challenges for Future Sustainability and Wellbeing
Type: Book
ISBN: 978-1-80043-969-6

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Book part
Publication date: 19 October 2012

Richard Machalek and Michael W. Martin

Purpose – Uses Kenneth Boulding's concept of “serial reciprocity” in conjunction with information about the evolution of emotions and social exchange processes to identify…

Abstract

Purpose – Uses Kenneth Boulding's concept of “serial reciprocity” in conjunction with information about the evolution of emotions and social exchange processes to identify possible mechanisms that can help explain the rise of early Christianity.

Design/methodology/approach – Using the concept of serial reciprocity as a central organizing principle, a theoretical account is developed that integrates ideas from evolutionary sociology, the sociology of emotions, and exchange theory in order to extend Rodney Stark's analysis of social forces responsible for the success of early Christianity as a social movement.

Findings – Patterns of serial reciprocity may develop when evolved emotions such as gratitude, sympathy, and empathy are activated by recipients of altruism who, in turn, become motivated to repay their benefactor by transmitting a benefit to a third-party recipient. Historical evidence reviewed by Stark is consistent with the claim that serial reciprocity may have conferred benefits to victims suffering from plagues that swept the Roman Empire during the early history of Christianity. Similar processes may be operating today in regions of the world in which aid workers provide assistance to victims of natural and man-made disasters.

Originality/value – This analysis demonstrates the value of integrating conventional sociological analysis and evolutionary theory to gain new explanatory insights about social processes such as serial reciprocity that have received relatively little prior attention by sociological researchers.

Details

Biosociology and Neurosociology
Type: Book
ISBN: 978-1-78190-257-8

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Article
Publication date: 9 April 2021

Haris Ali

The psychological contract literature is generally based on the assumption of reciprocity between employee and employer. The emphasis on reciprocity, however, largely…

Abstract

Purpose

The psychological contract literature is generally based on the assumption of reciprocity between employee and employer. The emphasis on reciprocity, however, largely downplays the implications of power dynamics in the employment relationship. In order to bridge this gap, the current research investigates psychological contract from the lens of power particularly focusing on reciprocity.

Design/methodology/approach

In total, 43 semi-structured interviews are carried out with 37 employees and six managers of three call center companies in Pakistan. The technique of template analysis is used for data analysis.

Findings

In contrast to the assumption of reciprocity, the research findings highlight employees' perceived inability to reciprocate the employer's inducements on parity basis, because of their view of power asymmetry in the employment relationship. The results further suggest the high tendency among employees to attribute employer reciprocity largely to their managers. The findings also point toward divergence in the reciprocity perceptions of employees and managers in relation with the employers.

Research limitations/implications

The emphasis on call centers bounds the generality of results. Future research is needed to further explore the impact of power asymmetry on reciprocity in organizations of other industries. With significant implications for the employment relations, negotiated contracts consider the exchange between employee and employer as an obligation rather than a voluntary act of kindness, as emphasized in reciprocity.

Originality/value

This research contributes to knowledge by emphasizing the significance of negotiation rather than reciprocation in the psychological contract. The negotiation approach efficiently recognizes the implications of power asymmetry that remain generally under-researched in the psychological contract literature.

Details

Employee Relations: The International Journal, vol. 43 no. 5
Type: Research Article
ISSN: 0142-5455

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Book part
Publication date: 23 November 2015

Henry Delcamp and Yann Ménière

This paper focuses on the strategic inclusion of reciprocity clauses in the licensing commitments disclosed by firms claiming standard essential patents (SEPs) in the…

Abstract

Purpose

This paper focuses on the strategic inclusion of reciprocity clauses in the licensing commitments disclosed by firms claiming standard essential patents (SEPs) in the telecom industry. We highlight the main cost and benefit of using these clauses for SEPs holders, namely, a possible deterrence effect for potential standard users on the one hand, and a legal instrument to prevent holdup and negotiate cross-licenses with other SEPs owners on the other hand.

Methodology/approach

We formulate general hypotheses explaining firms’ disclosure strategies with respect to reciprocity clauses, and use an original dataset of 19,601 patent disclosures in 12 different ETSI (European Telecommunications Standard Institute) projects (including UMTS, GSM, 3GPP, or GPRS) to test them empirically.

Findings

Our econometric results first confirm our predictions that reciprocity clauses are used as an insurance mechanism in technologically complex environments. They are more frequently included in patent disclosures when the ownership of SEPs at the project level is more fragmented. We also find that firms do not claim reciprocity clauses before having already declared a significant number of non-reciprocal SEPs in the same project, which suggests a deterrence effect on standard users that must be balanced by a strong patent position.

Practical implications/originality

Our findings highlight a trade-off for the SEPs holder to insert a reciprocity clause. There is both a cost and a benefit of adding this clause to the patent licensing commitment. Contrary to the usual literature on the subject, we do not analyze the general patenting strategies but the conducts on the licensing terms.

Details

Economic and Legal Issues in Competition, Intellectual Property, Bankruptcy, and the Cost of Raising Children
Type: Book
ISBN: 978-1-78560-562-8

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Article
Publication date: 3 December 2020

Guglielmo Faldetta

This study aims to explore the process that, from abusive supervision, leads to the different kinds of workplace deviant behaviors, using the norm of negative reciprocity

Abstract

Purpose

This study aims to explore the process that, from abusive supervision, leads to the different kinds of workplace deviant behaviors, using the norm of negative reciprocity as the main mechanism that can trigger this process.

Design/methodology/approach

This study is based on a literature review from organizational behavior and reciprocity fields and builds a theoretical model on the relationship between abusive supervision and workplace deviance within organizations.

Findings

This study develops a theoretical model where abusive supervision causes a feeling of injustice, which can motivate employees to seek revenge in the form of workplace deviant behaviors. Moreover, negative direct balanced reciprocity will moderate the relationship between the desire for revenge and minor interpersonal workplace deviance; negative direct non-balanced reciprocity will moderate the relationship between the desire for revenge and severe interpersonal workplace deviance; negative generalized balanced reciprocity will moderate the relationship between the desire for revenge and minor organizational workplace deviance; negative generalized non-balanced reciprocity will moderate the relationship between the desire for revenge and severe organizational workplace deviance.

Originality/value

Previous studies have used negative reciprocity as a moderator, but for the first time, it is split in direct and generalized and in balanced and non-balanced. In particular, when direct negative reciprocity is present, the revenge will take the form of interpersonal workplace deviance; when generalized negative reciprocity is present, the revenge will take the form of organizational workplace deviance. On the other side, when balanced reciprocity is present, revenge will take the form of minor workplace deviance, while when non-balanced reciprocity is present, revenge will take the form of severe workplace deviance.

Details

International Journal of Organizational Analysis, vol. 29 no. 4
Type: Research Article
ISSN: 1934-8835

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Article
Publication date: 6 August 2019

Kevin E. Voss, Emily C. Tanner, Mayoor Mohan, Yong-Ki Lee and Hong Keun Kim

Reciprocity has traditionally been overlooked in social exchange models of inter-firm relationships. Therefore, this research integrates reciprocity and its antecedents…

Abstract

Purpose

Reciprocity has traditionally been overlooked in social exchange models of inter-firm relationships. Therefore, this research integrates reciprocity and its antecedents into a social exchange model of inter-firm relationships.

Design/methodology/approach

The authors collected primary data from a sample of firms in the Republic of Korea using a questionnaire. They also used covariance-based structural equations modeling to fit the model given the proposed conceptualization.

Findings

Both conceptually and empirically, adding reciprocity and its antecedents to the social exchange model produce results that differ from previously published papers. Specifically, reciprocity affects information exchanged indirectly through both credibility and benevolence trust. In addition, the effect of information exchange mediates the effect of trust on calculative and affective commitment.

Research limitations/implications

The foundation of long-term inter-firm relationships is quality information exchange, which is based on the development of credibility and benevolence trust, which in turn is based on reciprocity. Thus, reciprocity is a key variable in relationship development.

Originality/value

To the best of the authors’ knowledge, this paper is among the first to combine reciprocity and its antecedents into a social exchange model that contains trust and commitment. This model provides a bigger picture of how firms develop long-term relationships with their partner firms.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 8
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 5 June 2017

Xueyan Yang, Xiaoni Zhang, Samuel Goh and Chad Anderson

The purpose of this paper is to understand e-loyalty in the travel industry. Specifically, this paper aims to examine the curvilinear relationship between predictors and e-loyalty.

Abstract

Purpose

The purpose of this paper is to understand e-loyalty in the travel industry. Specifically, this paper aims to examine the curvilinear relationship between predictors and e-loyalty.

Design/methodology/approach

An empirical study was conducted using an online survey with one of the largest travel companies in China. Structural equation modeling was used to test the models, and pair-wise nested F-tests were used to compare the models.

Findings

Results show that the curvilinear model has greater explanatory power of loyalty than traditional linear models. The results of pair-wise nested F-tests show that the loyalty model exhibits statistically significant R2 improvement compared to the linear model. However, the R2 improvement in the integrated model is not statistically different from that in the linear model. Confirmation and satisfaction are found to be salient factors influencing loyalty.

Research limitations/implications

This study makes important contributions to the online community literature by understanding the drivers of loyalty in the travel industry. However, there are limitations. First, this study addressed member loyalty of an online travel community with data collected from one company. Thus, generalizability is limited. Online communities and firms may have different characteristics, resulting in different factors influencing consumer loyalty. The authors plan in the future to collect data from other online travel companies and examine their model with different samples so as to check the generalizability of the current findings. Second, the authors collected a snapshot view on loyalty. Both researchers and managers note that small changes in loyalty and retention can yield disproportionately large changes in profitability (Reichheld et al., 2000). Consumer loyalty may change over time, so to maintain and increase profits, it is important to monitor such change. In the future, the authors plan to conduct a longitudinal study of community members to evaluate their loyalty over time.

Practical implications

As China seeks to gain additional market share in the global tourism market, travel companies should make use of websites as a marketing tool to attract and retain customers. These actions enable a travel company to enhance its competitiveness. More and more people use the internet for tour deals, bookings and finding tour-related information. Effective use of websites can affect the competitiveness of ecommerce companies. E-vendors could assess and adopt the dimensions recommended in this paper to help better understand areas for improvement. It is common today for consumers to buy travel products online instead of going through a travel agent. Considering the importance of reciprocity in formulating consumer satisfaction and loyalty in the virtual environment, companies should monitor reciprocal behavior on the virtual community. With advancement in technologies, consumer behaviors have changed and more consumers prefer social interactions in the virtual world. Companies can analyze posts in the virtual environment to assess reciprocity and may design a mechanism to foster reciprocal behaviors. By leveraging reciprocity, firms can better connect satisfaction with loyalty. More than 70 per cent of executives surveyed by McKinsey (2012) said that they regularly generate value through their Web communities. In addition, to pay attention to consumer to consumer reciprocity in the virtual world, companies should listen to what customers say in their online community, as this attention is an indication of reciprocity between consumers and companies. The ideas and opinions expressed in the online community tell the company customers’ perception of the value of its products and customers’ needs. Such attention to the voices in the online community will help companies to better tailor products/services to meet customers’ needs. Furthermore, the voices expressed in the virtual community are also effective in developing and maintaining new internet marketing opportunities such as email marketing, giveaways, search engine optimization, pay per click and shopping comparison marketing. Companies interested in retaining and attracting customers should leverage their established virtual communities and pay close attention to online posts and evaluate members’ satisfaction. Such effort will provide tangible benefits. As shown in Ye et al.’s study, traveler reviews produce a significant impact on online sales (Ye et al., 2011), with a 10 per cent increase in traveler review ratings, boosting online bookings by more than 5 per cent. This finding suggests that businesses should link online user-generated reviews to business performance in tourism. Finding incentives for users to share might be one way to improve interactivity and further create stickiness on the part of the website.

Originality/value

This paper is one of the first studies to address the need to move beyond linear models of e-loyalty and to additionally examine potential curvilinear and interactive effects. This study also identifies key variables such as reciprocity and satisfaction as determinants of e-loyalty in the Chinese online travel and tourism industry.

Details

Nankai Business Review International, vol. 8 no. 2
Type: Research Article
ISSN: 2040-8749

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Article
Publication date: 17 May 2018

Jihyun Lee and Yuri Lee

The purpose of this paper is to examine the effect of the corporate social responsibility (CSR) activities of a fashion company with multiple brands. In particular, the…

Abstract

Purpose

The purpose of this paper is to examine the effect of the corporate social responsibility (CSR) activities of a fashion company with multiple brands. In particular, the aim is to determine the differences in the impact of corporate-level and brand-level CSR.

Design/methodology/approach

The data were collected using an online survey from the consumer panel of a marketing research firm in South Korea. The subjects were presented with the following stimuli of a fashion company with multiple brands: describing corporate-level CSR activities of a company (n=109) and describing brand-level CSR activities of a company (n=113). After processing the information, the participants were asked to evaluate their reciprocity perception, corporate image, brand image, and purchase intention.

Findings

Regarding corporate-level CSR, participants’ reciprocity perception positively and directly affected purchase intention. It also positively affected corporate image, and corporate image affected brand image, and brand image positively affected purchase intention. Regarding brand-level CSR, reciprocity perception did not affect purchase intention directly, but positively affected purchase intention through mediation of corporate image. This study found a construct where reciprocity perception influences purchase intention with a mediating role of corporate image and brand image. The effect of reciprocity perception shaped by corporate-level CSR is greater than that shaped by brand-level CSR.

Originality/value

The outcome of this study provides meaningful insights and practical implications for companies that have multiple brands.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 22 no. 3
Type: Research Article
ISSN: 1361-2026

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Article
Publication date: 12 February 2018

Soon-Ho Kim, Min-Seong Kim, Stephen Holland and Hye-Sook Han

This study aims to examine the impact of self-efficacy and reciprocity in predicting the organizational citizenship behavior (OCB) of hospitality employees and the…

Abstract

Purpose

This study aims to examine the impact of self-efficacy and reciprocity in predicting the organizational citizenship behavior (OCB) of hospitality employees and the moderating role of cultural values in the hypothesized relationship.

Design/methodology/approach

The proposed model of this study has been tested on the basis of the responses from 432 full-time employees who work at hospitality fields in South Korea. This study has conducted frequency, reliability, confirmatory factor, correlation analyses and structural equation modeling (SEM).

Findings

The empirical results indicate not only that self-efficacy significantly influenced reciprocity, consideration, civic virtue and sportsmanship but also that reciprocity had positive influences on the same virtues as well as conscientiousness. The moderating role of cultural values has also been investigated resulting in significant differences in six of the nine cultural values measured (i.e. power distance, uncertainty avoidance, collectivism I and II, assertiveness and gender egalitarianism).

Practical implications

From a practical perspective, the findings of this study yield several strategies relevant to hospitality employee development and training. Especially, the management in hospitality organizations needs to look at multicultural management and leadership styles within their own particular context.

Originality/value

Findings of this study suggest that both self-efficacy and reciprocity are important determinants of OCBs, and indicate the fundamental embeddedness of employment relations within the wider cultural value setting in non-Western contexts.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 2
Type: Research Article
ISSN: 0959-6119

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