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1 – 10 of 336Xiaochen Liu, Yukuan Xu, Qiang Ye and Yu Jin
Fierce competition in the crowdfunding market has resulted in high failure rates. Owing to their dedication and efforts, many founders have relaunched failed campaigns as a…
Abstract
Purpose
Fierce competition in the crowdfunding market has resulted in high failure rates. Owing to their dedication and efforts, many founders have relaunched failed campaigns as a second attempt. Despite the need for a better understanding, the success of campaign relaunches has not been well-researched. To fill this research gap, this study first theorizes how founders’ learning may enhance their competencies and influence investors’ attribution of entrepreneurial failure. The study then empirically documents the extent and conditions under which such learning efforts impact campaign relaunch performance.
Design/methodology/approach
This study examines 5,798 Kickstarter-relaunched campaigns. The founders’ learning efforts are empirically captured by key changes in campaign design that deviate from past business practices. Word movers’ distances and perceptual hashing algorithms (pHash) are used separately to measure differences in campaign textual descriptions and pictorial designs.
Findings
Differences in textual descriptions and pictorial designs during campaign failure–relaunch are positively associated with campaign relaunch success. The impacts are further amplified when the previous failures are more severe.
Originality/value
This study is one of the first to examine the success of a campaign relaunch after an initial failure. This study contributes to a better understanding of founders’ learning in crowdfunding contexts and provides insights into the strategies founders can adopt to reap performance benefits.
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Thanh Dat Le and Nguyen Nguyen
This study examines the effect of stable institutional investors on firms' product quality failures. Furthermore, the authors investigate the channels through which institutional…
Abstract
Purpose
This study examines the effect of stable institutional investors on firms' product quality failures. Furthermore, the authors investigate the channels through which institutional ownership stability enhances product quality management.
Design/methodology/approach
This study uses probit, ordered probit and negative binomial regression frameworks to investigate the research questions. In addition, the authors utilize the three-stage least-squares to address the endogeneity issues.
Findings
Using a sample of product recall incidents from 2012 to 2021, the authors find that firms with more stable institutional ownership have a lower probability, frequency and severity of recall incidents and adopt a proactive product recall strategy. Institutional investors with significant and persistent holdings improve quality management by reducing overinvestment and the use of option-linked and relative performance executive compensations. Furthermore, the influence of stable institutional owners on product quality failures is more pronounced in firms with low managerial ability and specialist CEOs. Lastly, the empirical evidence demonstrates that stable holdings by active investors have a more substantial impact on reducing product recalls than passive and other stable institutional holdings.
Originality/value
This study is the first to examine the impact of institutional ownership stability on firms' product recalls. The authors contribute to the literature on the benefits of stable institutional ownership on firm outcomes and the determinants of product quality failures.
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Temesgen Agazhie and Shalemu Sharew Hailemariam
This study aims to quantify and prioritize the main causes of lean wastes and to apply reduction methods by employing better waste cause identification methodologies.
Abstract
Purpose
This study aims to quantify and prioritize the main causes of lean wastes and to apply reduction methods by employing better waste cause identification methodologies.
Design/methodology/approach
We employed fuzzy techniques for order preference by similarity to the ideal solution (FTOPSIS), fuzzy analytical hierarchy process (FAHP), and failure mode effect analysis (FMEA) to determine the causes of defects. To determine the current defect cause identification procedures, time studies, checklists, and process flow charts were employed. The study focuses on the sewing department of a clothing industry in Addis Ababa, Ethiopia.
Findings
These techniques outperform conventional techniques and offer a better solution for challenging decision-making situations. Each lean waste’s FMEA criteria, such as severity, occurrence, and detectability, were examined. A pairwise comparison revealed that defect has a larger effect than other lean wastes. Defects were mostly caused by inadequate operator training. To minimize lean waste, prioritizing their causes is crucial.
Research limitations/implications
The research focuses on a case company and the result could not be generalized for the whole industry.
Practical implications
The study used quantitative approaches to quantify and prioritize the causes of lean waste in the garment industry and provides insight for industrialists to focus on the waste causes to improve their quality performance.
Originality/value
The methodology of integrating FMEA with FAHP and FTOPSIS was the new contribution to have a better solution to decision variables by considering the severity, occurrence, and detectability of the causes of wastes. The data collection approach was based on experts’ focus group discussion to rate the main causes of defects which could provide optimal values of defect cause prioritization.
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Wilson Ozuem, Michelle Willis, Silvia Ranfagni, Kerry Howell and Serena Rovai
Prior research has advanced several explanations for social media influencers' (SMIs’) success in the burgeoning computer-mediated marketing environments but leaves one key topic…
Abstract
Purpose
Prior research has advanced several explanations for social media influencers' (SMIs’) success in the burgeoning computer-mediated marketing environments but leaves one key topic unexplored: the moderating role of SMIs in service failure and recovery strategies.
Design/methodology/approach
Drawing on a social constructivist perspective and an inductive approach, 59 in-depth interviews were conducted with millennials from three European countries (Italy, France and the United Kingdom). Building on social influence theory and commitment-trust theory, this study conceptualises four distinct pathways unifying SMIs' efforts in the service failure recovery process.
Findings
The emergent model illustrates how source credibility and message content moderate service failure severity and speed of recovery. The insights gained from this study model contribute to research on the pivotal uniqueness of SMIs in service failure recovery processes and offer practical explanations of variations in the implementation of influencer marketing. This study examines a perspective of SMIs that considers the cycle of their influence on customers through service failure and recovery.
Originality/value
The study suggests that negative reactions towards service failure and recovery are reduced if customers have a relationship with influencers prior to the service failure and recovery compared with the reactions of customers who do not have a relationship with the influencer.
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Aditi Sarkar Sengupta, Marla Royne Stafford and Alexa K. Fox
The authors' research examines how negative electronic word-of-mouth (e-WOM) alters focal customers' post-recovery justice perceptions and attitudes to determine their future…
Abstract
Purpose
The authors' research examines how negative electronic word-of-mouth (e-WOM) alters focal customers' post-recovery justice perceptions and attitudes to determine their future behavior with the service provider. Specifically, this paper develops and tests a conceptual model to investigate how negative e-WOM alters focal customers' perceptual and attitudinal outcomes after the service recovery experience. It also examines the post-recovery effect of negative e-WOM on focal customers’ willingness to patronize the service after their recovery experience.
Design/methodology/approach
To test the hypotheses, two pretests and two experimental studies with created scenarios in the retail context were conducted.
Findings
The authors' findings reveal that services are judged during and well beyond failure and recovery occurrences. To maintain a loyal customer base, service managers should develop processes that address service complaints both within and beyond the service consumption stage. The authors also find that despite a favorable recovery, focal customers gravitate toward the failure experience and develop unfavorable attitudes toward the service provider, leading to likely defections.
Originality/value
The authors' research demonstrates the persuasive power of negative e-WOM at the post-service recovery stage, making a unique contribution to the service recovery literature. This research also contributes to the persuasive effect of negative e-WOM, demonstrating message context as a boundary condition of negative e-WOM effects. In general, the authors' work highlights the importance of understanding the psychological processes involved in eliciting the persuasive influence of negative e-WOM in the post-service recovery stage that may lead to the defection of “so-called” successfully recovered customers.
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Wilson Ozuem, Michelle Willis, Kerry Howell, Silvia Ranfagni and Serena Rovai
User-generated content (UGC) and service failure have attracted considerable marketing inquiry over the last two decades. Previous studies primarily focused on the outcome of…
Abstract
Purpose
User-generated content (UGC) and service failure have attracted considerable marketing inquiry over the last two decades. Previous studies primarily focused on the outcome of service failure and the impact of UGC on perceived failure severity. This article departs from previous studies as it examines the moderating role of UGC on the relationship between service failure recovery (SFR) and customer–brand relationship.
Design/methodology/approach
Building on commitment-trust theory and from a phenomenological hermeneutical perspective, this article explores this phenomenon through the interpretation of 60 in-depth interviews with millennials from three European countries: Italy, France and the UK. An analysis of the data was conducted using a qualitative approach to understand the main constructs and relationships derived from the data.
Findings
This study conceptualises four distinct moderating characteristics of UGC in the SFR process: satisfaction with experience and brand, dissatisfaction with experience and brand, satisfaction with brand and dissatisfaction with brand. The insights from the responsiveness, empathetic response, counterfactual thinking and brand salience (RECB) framework contribute to research on UGC and shed light on the relationship between SFR and consumer–brand relationships in the fashion industry.
Originality/value
Overall, this study demonstrates that customer interactions with UGC significantly affect their responses to, and relationships with, a brand. The proposed framework opens up interesting avenues for future research on the moderating role of UGC on the relationship between SFR and customer–brand relationships.
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Xiaoting Shen, Yimeng Zhao, Jia Yu and Mingzhou Yu
This study aims to investigate the responses of young Chinese consumers with different cultural characteristics to negative brand information about electric vehicles.
Abstract
Purpose
This study aims to investigate the responses of young Chinese consumers with different cultural characteristics to negative brand information about electric vehicles.
Design/methodology/approach
The current study is quantitative research with an experimental method. It shows two different levels of severity for negative publicity and asks participants to self-report through questionnaires.
Findings
Chinese young consumers, being collectivist and of high uncertainty avoidance, tend to search for and spread information; consumers with low power distance search and share information more under low information severity. In addition, information search positively affects brand attitude under lower severity; negative word-of-mouth intention negatively affects brand attitudes at both severity levels.
Research limitations/implications
The current study examines the influence of personal cultural values on information searching and negative information dissemination among young consumers, providing insights to complement previous studies. Furthermore, it explores how such exposure influences young consumers’ brand attitude and intention to purchase. Limitations include simple sample scopes and single-product stimuli.
Practical implications
This research highlights the importance of cultural dimensions in shaping young consumers’ responses to negative publicity. Marketers worldwide should consider cultural influence and develop specific strategies to address negative information about different products. Understanding customers’ unique characteristics and preferences can help marketers effectively tailor their approaches to counter negative publicity.
Originality/value
This study originally provides a supplement to prior studies on cultural dimensions and consumer behavior and provides suggestions to marketers on young Chinese consumers.
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Ying Chang, Chubing Zhang, Tiange Li and Yina Li
This study aims to examine the effects of the perceived warmth and competence of humanoid robots on customer tolerance of service failure through the affective response and the…
Abstract
Purpose
This study aims to examine the effects of the perceived warmth and competence of humanoid robots on customer tolerance of service failure through the affective response and the boundary condition of relationship norms.
Design/methodology/approach
Two experimental studies were conducted to investigate the effects of perceived warmth and competence of humanoid robots’ physical appearances on tolerance of service failure and the mediating role of anger. The boundary influence of relationship norms is also explored.
Findings
The results reveal that the perception of warmth (vs. competence) robot leads to less (more) anger, which significantly results in tolerance of service failure. However, customer tolerance is insignificant under exchange norms, as the undelivered service violates the expectations of both warm and competent robots.
Practical implications
This study provides practical guidance for hospitality managers to implement humanoid robots in a way that minimizes the negative outcomes of service failure. Managers should also think about the appropriate match of different types of humanoid robots and relationship norms in which robots will be deployed.
Originality/value
This study contributes to the tolerance literature by taking a social cognition perspective to investigate the effect of humanoid robots’ physical appearances on customers’ reactions to service failure. The findings also reveal that its affective mechanism lies in the effect of expectancy violations of service failure on tolerance. Furthermore, this study extends the literature on relationship norms to the influence of company factors on effective humanoid robot implementation.
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Mengwei Zhang, Jinsheng Cui and Jianan Zhong
With the increasing use of robots in service scenarios in hospitality industries, service failure frequently occurs during the service process, and consumers may react differently…
Abstract
Purpose
With the increasing use of robots in service scenarios in hospitality industries, service failure frequently occurs during the service process, and consumers may react differently toward humanoid vs. nonhumanoid robots due to different performance expectancies. This study focuses on consumers' reactions to service failures by humanoid vs. nonhumanoid robots and the different impacts on brand forgiveness and revisit intentions through performance expectancy for different genders.
Design/methodology/approach
The study used a sample of 280 participants to test the moderated chain mediation model. The participants were instructed to report their performance expectancies for humanoid/nonhumanoid robots and imagine a hotel check-in scenario in which a service failure occurs. Brand forgiveness, brand revisit intention and other demographic information were assessed.
Findings
The results show that consumers have higher performance expectancy for nonhumanoid robots. This performance expectancy generates brand forgiveness and revisit intentions for male consumers but does not affect female consumers' forgiveness and revisit behaviors.
Originality/value
This study contributes to the literature by taking a long-term perspective to investigate the outcomes after service failure, providing evidence for pending questions in previous studies and enriching studies of gender differences. Additionally, this study provides practical implications to consider the use of anthropomorphism in robots, advocate for functional confidence in robots and target consumers across genders.
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Pedro Mota Veiga, Sandra Marnoto, Marta Guerra-Mota and Gadaf Rexhepi
The research aims to explore the relationships between the digital capabilities of micro, small and medium enterprises (MSMEs), their participation in global value chains and…
Abstract
Purpose
The research aims to explore the relationships between the digital capabilities of micro, small and medium enterprises (MSMEs), their participation in global value chains and their adoption of innovative business models. Additionally, the study investigates how the prior experiences of entrepreneurial failure may influence or moderate these relationships.
Design/methodology/approach
To address these research objectives, the study draws upon data obtained from the Flash Eurobarometer 486 survey, a comprehensive dataset that explores the challenges faced by 13,197 European MSMEs as they navigate the complexities of growth, the integration of sustainable business models and the incorporation of digital technologies. To test the proposed hypotheses, the research employs multivariate logistic regression analysis.
Findings
Digital capabilities are found to be positively associated with business model innovation, while integration into global value chains is linked to a higher likelihood of implementing new business models. Interestingly, entrepreneurial failure did not significantly influence the relationship between digital capabilities and the adoption of new business models. In contrast, entrepreneurial failure significantly moderated the impact of global value chain inclusion on business model innovation, particularly in MSMEs with a history of failure.
Originality/value
This article provides practical guidance to entrepreneurs and companies interested in enhancing their digital strategies and engagement in global value chains, considering the entrepreneurs' business histories.
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