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Article
Publication date: 9 October 2023

Jinsheng Cui, Mengwei Zhang and Jianan Zhong

This research aims to investigate the influence of consumers' anticipated trust in service providers on brand switching intention and its underlying psychological mechanism. More…

Abstract

Purpose

This research aims to investigate the influence of consumers' anticipated trust in service providers on brand switching intention and its underlying psychological mechanism. More importantly, this study explores the moderating role of type of service providers (human staff/humanoid robots/nonhumanoid robots).

Design/methodology/approach

This study adopted two single-factor between-subjects experimental designs and tested the hypotheses in two typical service failure scenarios: Study 1, a hotel scenario (N = 403); and Study 2, a restaurant scenario (N = 323).

Findings

The results suggest that there is an inverted U-shaped relationship between consumers' anticipated trust and tolerance of service failure and that such tolerance has a mediating effect on the relationship between anticipated trust and brand switching intention. Moreover, when service failure is caused by a humanoid service robot, a moderate anticipated trust level of consumers is most conducive to increasing tolerance, which in turn reduces their propensity to switch brands.

Originality/value

This study examines the nature of the relationship between anticipated trust and tolerance in a service failure context, revealing an inverted U-shaped relationship. More importantly, the boundary conditions under which different service provides have an influence on this relationship are incorporated. Finally, this study explores the influence of service failure tolerance on brand switching intentions in a technological context, enriching consumer–brand relationship research.

Details

Journal of Service Theory and Practice, vol. 33 no. 6
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 29 May 2024

Itzhak Gnizy and Yoel Asseraf

This study aims to examine the relevance of strategic marketing planning in this agile era and its effect on firms’ international performance and explores conditions under which…

Abstract

Purpose

This study aims to examine the relevance of strategic marketing planning in this agile era and its effect on firms’ international performance and explores conditions under which the influence of planning changes.

Design/methodology/approach

Based on contingency theory, a conceptual model is tested based on survey data from internationalizing firms. Data were analyzed using partial least squares -structural equation modeling.

Findings

Marketing strategy planning is (still) associated with enhanced performance, and depends on external and internal contingencies. While the planning−performance relationship is amplified by market sensing (external contingency), surprisingly, it is decreased in presence of high tolerance for failure (internal contingency).

Practical implications

Findings seek to transform marketing planning in international business practice by requiring that its implementation receives the attention of senior management.

Originality/value

Marketing strategy planning should not be deemphasized. While planning appears to be undergoing an identity crisis, practitioners’ attention to marketing planning is warranted.

Details

Review of International Business and Strategy, vol. 34 no. 4
Type: Research Article
ISSN: 2059-6014

Keywords

Book part
Publication date: 16 September 2017

Ramana Nanda and Matthew Rhodes-Kropf

Past work has shown that failure tolerance by principals has the potential to stimulate innovation, but has not examined how this affects which projects principals will start. We…

Abstract

Past work has shown that failure tolerance by principals has the potential to stimulate innovation, but has not examined how this affects which projects principals will start. We demonstrate that failure tolerance has an equilibrium price – in terms of an investor’s required share of equity – that increases in the level of radical innovation. Financiers with investment strategies that tolerate early failure will endogenously choose to fund less radical innovations, while the most radical innovations (for whom the price of failure tolerance is too high) can only be started by investors who are not failure tolerant. Since policies to stimulate innovation must often be set before specific investments in innovative projects are made, this creates a trade-off between a policy that encourages experimentation ex post and the one that funds experimental projects ex ante. In equilibrium, it is possible that all competing financiers choose to offer failure tolerant contracts to attract entrepreneurs, leaving no capital to fund the most radical, experimental projects in the economy. The impact of different innovation policies can help to explain who finances radical innovations, and when and where radical innovation occurs.

Details

Entrepreneurship, Innovation, and Platforms
Type: Book
ISBN: 978-1-78743-080-8

Keywords

Article
Publication date: 4 May 2023

Jinsheng Cui and Jianan Zhong

The purpose of this study is to examine how robotic anthropomorphism and personalized design may affect consumers' reactions to brands after service failure.

1312

Abstract

Purpose

The purpose of this study is to examine how robotic anthropomorphism and personalized design may affect consumers' reactions to brands after service failure.

Design/methodology/approach

This study conducted two studies based on cognitive appraisal theory and artificial intelligence device acceptance theory. Study 1 explored the mechanisms by which the type of anthropomorphic design of the service robot (humanoid robot/nonhumanoid robot) influenced revisit intention after service failure through a one-factor between-subjects design based on a restaurant dining scenario. Study 2 was based on a hotel check-in scenario and explored the moderating effect of robot personalization design on the above mechanisms through a 2 (anthropomorphic design: humanoid robot/nonhumanoid robot) × 2 (personalized design: self-name/no name) between-subjects design.

Findings

Study 1 shows that consumers have higher performance expectations for nonhumanoid robots, leading to a higher tolerance for service failure, which in turn generates higher revisit intentions. Study 2 shows that consumers' performance expectations are significantly enhanced after custom naming of humanoid robots, so the serial mediation mechanism for the effect of robot anthropomorphic design on revisit intention does not hold.

Originality/value

This study extends the research of artificial intelligence device acceptance theory in the field of service failure and exploratively proposes an intervention mechanism for the negative effects of the anthropomorphic design of service robots.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 35 no. 11
Type: Research Article
ISSN: 1355-5855

Keywords

Book part
Publication date: 10 December 2018

Thomas Keil, Pasi Kuusela and Nils Stieglitz

How do organizations respond to negative feedback regarding their innovation activities? In this chapter, the authors reconcile contradictory predictions stemming from behavioral…

Abstract

How do organizations respond to negative feedback regarding their innovation activities? In this chapter, the authors reconcile contradictory predictions stemming from behavioral learning and from the escalation of commitment (EoC) perspectives regarding persistence under negative performance feedback. The authors core argument suggests that the seemingly contradictory psychological processes indicated by these two perspectives occur simultaneously in decision makers but that the design of organizational roles and reward systems affects their prevalence in decision-making tasks. Specifically, the authors argue that for decision makers responsible for an individual project, responses given to negative performance feedback regarding a project are dominated by self-justification and loss-avoidance mechanisms predicted by the EoC literature, while for decision makers responsible for a portfolio of projects, responses to negative performance regarding a project are dominated by an under-sampling of poorly performing alternatives that behavioral learning theory predicts. In addition to assigning decision-making authority to different organizational roles, organizational designers shape the strength of these mechanisms through the design of reward systems and specifically by setting more or less ambiguous goals, aspiration levels, time horizons of incentives provided, and levels of failure tolerance.

Article
Publication date: 18 October 2019

Ling Zhang, Sheng Zhang and Yingyuan Guo

The purpose of this paper is to compare the effects of equity financing and debt financing on technological innovation, and prove that the enhancement of a financing system’s risk…

3128

Abstract

Purpose

The purpose of this paper is to compare the effects of equity financing and debt financing on technological innovation, and prove that the enhancement of a financing system’s risk tolerance for technological innovation can enhance the innovation risk preference of enterprises and thus promote innovation.

Design/methodology/approach

This study is based on a transnational sample of 35 developed countries from 1996 to 2015, by using the panel econometric model to empirically examine the effects of two financing modes on innovation.

Findings

The findings showed that equity financing, which has higher risk tolerance, has a more positive impact on innovation than debt financing in terms of both economic uptrend and economic downtrend, and that government efficiency plays a significant role in supporting the performance of technological innovation.

Originality/value

The paper provides a research framework for examining how a financing system’s risk tolerance capacity affects the development of technological innovation through promoting risk preference among enterprises. This paper provides transnational and cross-cycle comparative evidence that equity financing with a strong risk tolerance capacity can better support technological innovation, even in periods of economic downtrend. Moreover, the importance of financing system’s risk tolerance capacity for innovation during economic crises is discussed.

Details

Baltic Journal of Management, vol. 14 no. 4
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 1 March 1985

David J. Smith

The available failure rate sources are compared. Models require repeatability to be valid. Whereas the parameters and conditions of Boyle's law enjoy this feature, failure rate…

Abstract

The available failure rate sources are compared. Models require repeatability to be valid. Whereas the parameters and conditions of Boyle's law enjoy this feature, failure rate models are not so constrained. Hence wide ranges apply when comparing data sources. These ranges are wide compared with the acceptable tolerances for failure rate predictions. It is argued that a simple failure model, as depicted in Table IV, is justified by the foregoing.

Details

International Journal of Quality & Reliability Management, vol. 2 no. 3
Type: Research Article
ISSN: 0265-671X

Article
Publication date: 8 May 2017

Alexandra K. Abney, Mark J. Pelletier, Toni-Rochelle S. Ford and Alisha B. Horky

Social networks offer consumers the ability to voice their opinions of brands in a real-time, public setting. This represents a unique challenge for firms as brand managers must…

2679

Abstract

Purpose

Social networks offer consumers the ability to voice their opinions of brands in a real-time, public setting. This represents a unique challenge for firms as brand managers must develop new strategies for properly communicating with consumers, especially in the event of a service failure. The purpose of this research is to explore the impact of various adaptive service recovery strategies via social media, specifically Twitter.

Design/methodology/approach

Through a series of experimental manipulations, four service recovery strategies are tested alongside two variations of consumer complaint tweets. The service recovery responses vary in their degree of adaptiveness, which have differential impacts on numerous consumer outcome variables.

Findings

The findings indicate that highly adaptive recoveries responses positively impact consumers’ evaluations of service recovery satisfaction, leading to greater consumer behavioral intentions. Additionally, the type of tweet the consumer sends may further reveal their expectations for adequate service recovery responses.

Originality/value

This study is the first to empirically test the use of social media platforms in the service failure and recovery context. Although social media is commonly used for such purposes by practitioners, academic research up to this point has predominately focused on social media for generating word-of-mouth. Further, this study seeks to examine how service adaptability is perceived from the customer perspective, as opposed to the more traditional employee viewpoint.

Details

Journal of Services Marketing, vol. 31 no. 3
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 13 February 2024

Haixia Yang and Hongbo Pan

Given the significance of innovation in enabling firms to maintain a long-term competitive edge and secure excess profits, this paper aims to investigate whether and how…

Abstract

Purpose

Given the significance of innovation in enabling firms to maintain a long-term competitive edge and secure excess profits, this paper aims to investigate whether and how stakeholders’ attention to innovation (SATI) influences corporate innovation.

Design/methodology/approach

This paper introduces a novel variable, SATI, which is achieved by segmenting stakeholders’ attention into two categories: attention to innovation and attention to other facets, using textual analysis methods. Subsequently, this paper empirically examines the influence of SATI on corporate innovation.

Findings

This paper finds that SATI positively affects corporate innovation input, and the result remains true after addressing possible endogeneity issues using instrumental variable regression. Furthermore, the positive effect of SATI on corporate innovation is stronger in firms facing greater financing constraints, thus verifying the financing constraints hypothesis. The positive effect is also stronger in firms with lower risk-taking levels, thus confirming the innovation failure tolerance hypothesis. Further analysis suggests that SATI increases both corporate innovation output and efficiency, thus ruling out the catering hypothesis.

Originality/value

This paper highlights the importance of SATI in driving corporate innovation. It enriches the literature on the repercussions of stakeholders’ attention and determinants of corporate innovation. In addition, it provides practical suggestions for further implementing China’s national innovation-driven development strategy.

Details

Nankai Business Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 7 April 2015

Monika Jingmond and Robert Ågren

The purpose of this study is to identify the primary root causes of defects in terms of why they persist in construction, despite the increasing implementation of quality systems…

2423

Abstract

Purpose

The purpose of this study is to identify the primary root causes of defects in terms of why they persist in construction, despite the increasing implementation of quality systems. Defects in construction continue to be a source of concern in the construction industry. There have been studies that have tried to identify causes of defects. Although concepts are usually related to organisational factors, previous studies have been carried out on an operational level. There is a well-trodden area within the literature relating to the operational level, but little is known about the causes of defects on a higher, organisational level within construction.

Design/methodology/approach

A new approach based on the notion of process causality and the use of cognitive mapping has been adopted. The aim was to take a step back and unravel causes of defects in the execution of construction projects. From workshops with representatives drawn from different parts of the industry, themes have been identified and investigated from a causation perspective.

Findings

It was found that the causes of defects mainly reside in endogenous factors within organisations as opposed to execution failure or exogenous factors related to market, material or equipment behaviour.

Originality/value

More specifically, it was found that the dominant cause of defects lies within organisational shortcomings, suggesting that improvements can be found on the management and strategic levels within projects instead of on the operational level.

Details

Construction Innovation, vol. 15 no. 2
Type: Research Article
ISSN: 1471-4175

Keywords

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