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The authors investigated the factors influencing consumer evaluations of advertisements for ethical luxury products that incorporate animal rights and protection concerns. The authors empirically examined how ethical messages influence advertisement persuasiveness through ethical consumer guilt and positively impact consumer evaluations of ethical luxury products. Furthermore, the authors explored the moderating role of consumers’ independent versus interdependent self-construals.

The authors conducted four experimental studies on the interplay among ethicality, luxury brand positioning and self-construal. Moderated mediation analyses revealed that moral emotions were responsible for the effect of ethical luxury advertisements that address animal welfare on brand attitude.

Advertisement messages signaling a luxury brand’s ethical efforts increase empathy through ethical consumer guilt, thereby generating favorable attitudes toward luxury products. However, this effect is limited to consumers with independent self-construal in South Korea and the United States of America.

The authors offer novel insights into the roles of ethical consumer guilt and empathy in the positive effects of ethical messages from luxury brands. Furthermore, the authors identified brand type and self-construal as boundary conditions for the effects observed across different consumer groups and markets.

The purpose of this Real Impact Research Article is to empirically explore one of the most controversial and elusive concepts in knowledge management research – practical wisdom. It develops a 10-dimensional practical wisdom construct and tests it within the nomological network of counterproductive and productive knowledge behavior.

A survey instrument was created based on the extant literature. A model was developed and tested by means of Partial Least Squares with data obtained from 200 experienced employees recruited from CloudResearch Connect crowdsourcing platform.

Practical wisdom is a multidimensional construct that may be operationalized and measured like other well-established knowledge management concepts. Practical wisdom guides employee counterproductive and productive knowledge behavior: it suppresses knowledge sabotage and knowledge hiding (whether general, evasive, playing dumb, rationalized or bullying) and promotes knowledge sharing. While all proposed dimensions contribute to employee practical wisdom, particularly salient are subject matter expertise, moral purpose in decision-making, self-reflection in the workplace and external reflection in the workplace. Unexpectedly, practical wisdom facilitates knowledge hoarding instead of reducing it.

Managers should realize that possessing practical wisdom is not limited to a group of select, high-level executives. Organizations may administer the practical wisdom questionnaire presented in this study to their workers to identify those who score the lowest, and invest in employee training programs that focus on the development of those attributes pertaining to the practical wisdom dimensions.

The concept of practical wisdom is a controversial topic that has both detractors and supporters. To the best of the author’s knowledge, this is the first large-scale empirical study of practical wisdom in the knowledge management domain.