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Article
Publication date: 13 March 2024

Carla Ramos, Adriana Bruscato Bortoluzzo and Danny P. Claro

This study aims to capture how the association between a multichannel relational communication strategy (MRCS) and customer performance is contingent upon such customer…

Abstract

Purpose

This study aims to capture how the association between a multichannel relational communication strategy (MRCS) and customer performance is contingent upon such customer performance (low- versus high-performance customers) and to reconcile past contradictory results in this marketing-related topic. To this end, the authors propose and validate the method of quantile regression as an unconventional, yet effective, means to proceed to that reconciliation.

Design/methodology/approach

This study collected data from 4,934 customers of a private pension fund firm and accounted for both firm- and customer-initiated relational communication channels (RCCs) and for customer lifetime value (CLV). This study estimated a generalized linear model and then a quantile regression model was used to account for customer performance heterogeneity.

Findings

This study finds that specific RCCs present different levels of association with performance for low- versus high-performance customers, where outcome customer performance is the dependent variable. For example, the relation between firm-initiated communication (FIC) and performance is stronger for low-CLV customers, whereas the relation between customer-initiated communication (CIC) and performance is increasingly stronger for high-CLV customers but not for low-CLV ones. This study also finds that combining different forms of FIC can result in a negative association with customer performance, especially for low-CLV customers.

Research limitations/implications

The authors tested the conceptual model in one single firm in the specific context of financial services and with cross-sectional data, so there should be caution when extrapolating this study’s findings.

Practical implications

This study offers nuanced and precise managerial insights on recommended resource allocation along with relational communication efforts, showing how managers can benefit from adopting a differentiated-customer performance approach when designing their MRCS.

Originality/value

This study provides an overview of the state of the art of MRCS, proposes a contingency analysis of the relationship between MRCS and performance based on customer performance heterogeneity and suggests the quantile method to perform such analysis and help reconcile past contradictory findings. This study shows how the association between RCCs and CLV varies across the conditional quantiles of the distribution of customer performance. This study also addresses a recent call for a more holistic perspective on the relationships between independent and dependent variables.

Article
Publication date: 25 March 2024

Raúl Katz, Juan Jung and Matan Goldman

This paper aims to study the economic effects of Cloud Computing for a sample of Israeli firms. The authors propose a framework that considers how this technology affects firm…

Abstract

Purpose

This paper aims to study the economic effects of Cloud Computing for a sample of Israeli firms. The authors propose a framework that considers how this technology affects firm performance also introducing the indirect economic effects that take place through cloud-complementary technologies such as Big Data and Machine Learning.

Design/methodology/approach

The model is estimated through structural equation modeling. The data set consists of the microdata of the survey of information and communication technologies uses and cyber protection in business conducted in Israel by the Central Bureau of Statistics.

Findings

The results point to Cloud Computing as a crucial technology to increase firm performance, presenting significant direct and indirect effects as the use of complementary technologies maximizes its impact. Firms that enjoy most direct economic gains from Cloud Computing appear to be the smaller ones, although larger enterprises seem more capable to assimilate complementary technologies, such as Big Data and Machine Learning. The total effects of cloud on firm performance are quite similar among manufacturing and service firms, although the composition of the different effects involved is different.

Originality/value

This paper is one of the very few analyses estimating the impact of Cloud Computing on firm performance based on country microdata and, to the best of the authors’ knowledge, the first one that contemplates the indirect economic effects that take place through cloud-complementary technologies such as Big Data and Machine Learning.

Details

Digital Policy, Regulation and Governance, vol. 26 no. 3
Type: Research Article
ISSN: 2398-5038

Keywords

Article
Publication date: 19 April 2024

Ellen A. Donnelly, Madeline Stenger, Daniel J. O'Connell, Adam Gavnik, Jullianne Regalado and Laura Bayona-Roman

This study explores the determinants of police officer support for pre-arrest/booking deflection programs that divert people presenting with substance use and/or mental health…

Abstract

Purpose

This study explores the determinants of police officer support for pre-arrest/booking deflection programs that divert people presenting with substance use and/or mental health disorder symptoms out of the criminal justice system and connect them to supportive services.

Design/methodology/approach

This study analyzes responses from 254 surveys fielded to police officers in Delaware. Questionnaires asked about views on leadership, approaches toward crime, training, occupational experience and officer’s personal characteristics. The study applies a new machine learning method called kernel-based regularized least squares (KRLS) for non-linearities and interactions among independent variables. Estimates from a KRLS model are compared with those from an ordinary least square regression (OLS) model.

Findings

Support for diversion is positively associated with leadership endorsing diversion and thinking of new ways to solve problems. Tough-on-crime attitudes diminish programmatic support. Tenure becomes less predictive of police attitudes in the KRLS model, suggesting interactions with other factors. The KRLS model explains a larger proportion of the variance in officer attitudes than the traditional OLS model.

Originality/value

The study demonstrates the usefulness of the KRLS method for practitioners and scholars seeking to illuminate patterns in police attitudes. It further underscores the importance of agency leadership in legitimizing deflection as a pathway to addressing behavioral health challenges in communities.

Details

Policing: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1363-951X

Keywords

Article
Publication date: 6 February 2024

Ali Haruna, Honoré Tekam Oumbé and Armand Mboutchouang Kountchou

The purpose of this paper is to examine the adoption of Islamic finance products (murabaha, musharakah, mudarabah, salam, ijara, istisna and Qard Hassan) by small and medium-sized…

Abstract

Purpose

The purpose of this paper is to examine the adoption of Islamic finance products (murabaha, musharakah, mudarabah, salam, ijara, istisna and Qard Hassan) by small and medium-sized enterprises (SMEs) in Cameroon, a non-Islamic Sub-Saharan African country.

Design/methodology/approach

It used primary data collected from a cross-section of 1,358 SMEs in eight regions of Cameroon using self-administered structured questionnaires. To facilitate the analyses and interpretation, these products are grouped into four groups based on certain characteristics. A multivariate probit model is estimated to take into account the interaction between these different Islamic finance products.

Findings

This study revealed that the desire to comply with Sharia law, awareness, attitude and intention were critical determinants of the decision to adopt Islamic finance products by Cameroonian SMEs. The least influential factors were perceived behavioral control, subjective norms, enterprise characteristics (size, age and location) and socio-demographic characteristics of the entrepreneur (gender, age and marital status). The extension of the multivariate approach permitted us to compute for predicted probabilities which revealed that there exists a synergy effect between the different Islamic finance products. That is, Cameroonian SMEs combine different Islamic finance products at the same time based on their needs. This is especially the case between the partnership-based products (musharakah and mudarabah) and manufacture/rent products (istisna and ijara).

Practical implications

Policymakers are encouraged to develop stakeholder-oriented strategies to promote effective consumer education in Islamic finance products which will boost awareness. Also, Islamic finance institutions should endeavor to develop innovative financial products that are Sharia-compliant and economically beneficial to the individual and business needs of SMEs. Moreover, policymakers and management of Islamic finance institutions should ensure the putting in place of effective governance structures to guide Islamic finance operations. Finally, policymakers should endeavor to take into account the possible synergy between the different Islamic finance products in their quest to develop this activity.

Originality/value

To the best of the authors’ knowledge, this is the first study that analyses the adoption of different Islamic finance products while taking into account the possible synergy that exists between these products.

Details

Journal of Islamic Marketing, vol. 15 no. 5
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 22 April 2024

Qiqi Liu and Tingwu Yan

This paper investigates the ways digital media applications in rural areas have transformed the influence of social networks (SN) on farmers' adoption of various climate change…

Abstract

Purpose

This paper investigates the ways digital media applications in rural areas have transformed the influence of social networks (SN) on farmers' adoption of various climate change mitigation measures (CCMM), and explores the key mechanisms behind this transformation.

Design/methodology/approach

The study analyzes data from 1,002 farmers’ surveys. First, a logit model is used to measure the impact of SN on the adoption of different types of CCMM. Then, the interaction term between digital media usage (DMU) and SN is introduced to analyze the moderating effect of digital media on the impact of SN. Finally, a conditional process model is used to explore the mediating mechanism of agricultural socialization services (ASS) and the validity of information acquisition (VIA).

Findings

The results reveal that: (1) SN significantly promotes the adoption of CCMM and the marginal effect of this impact varies with different kinds of technologies. (2) DMU reinforces the effectiveness of SN in promoting farmers' adoption of CCMM. (3) The key mechanisms of the process in (2) are the ASS and the VIA.

Originality/value

This study shows that in the context of DMU, SN’s promotion effect on farmers' adoption of CCMM is strengthened.

Details

China Agricultural Economic Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 19 April 2024

Bahareh Golkar, Siew Hoon Lim and Fecri Karanki

A major source of external funding for US airports comes from issuing municipal bonds. Credit rating agencies evaluate the bonds using multiple factors, but the judgments behind…

Abstract

Purpose

A major source of external funding for US airports comes from issuing municipal bonds. Credit rating agencies evaluate the bonds using multiple factors, but the judgments behind the ratings are not well understood. This paper examines if airport rate-setting methods affect the bond ratings of US airports.

Design/methodology/approach

Using a set of unbalanced panel data for 58 hub airports from 2010 to 2019, we examine the effect of the rate-setting methods and other airport characteristics on Fitch’s airport bond rating.

Findings

We find that compensatory airports consistently receive a very high bond rating from Fitch. The probability of getting a very high Fitch rating increases by ∼28 percentage points for a compensatory airport. Additionally, the probability of getting a very high rating is about 33 percentage points higher for a legacy hub.

Research limitations/implications

The study uses Fitch bond ratings. Future studies could examine if S&P’s and Moody’s ratings are also influenced by airport rate-setting methods and legacy hub status.

Practical implications

The results uncover the linkage between bond ratings and their determinants for US airports. This information is important for investors when assessing airport creditworthiness and for airport operators as they manage capital project financing.

Originality/value

This is the first study to evaluate the effects of rate-setting methods on airport bond rating and also the first to document a statistically significant relationship between airports’ legacy hub status and bond ratings.

Details

Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0307-4358

Keywords

Open Access
Article
Publication date: 19 April 2024

Thi Bich Tran and Duy Khoi Nguyen

This study investigates the optimum size for manufacturing firms and the impact of subcontracting on firms' likelihood of achieving their optimal scale in Vietnam.

Abstract

Purpose

This study investigates the optimum size for manufacturing firms and the impact of subcontracting on firms' likelihood of achieving their optimal scale in Vietnam.

Design/methodology/approach

Using data from the enterprise census in 2017 and 2021, the paper first estimates the production function to identify the optimum firm size for manufacturing firms and then, applies the logit model to investigate factors associated with the optimal firm size.

Findings

The study reveals that medium-sized firms exhibit the highest level of productivity. Nevertheless, a consistent trend emerges, indicating that nearly 90% of manufacturing firms in Vietnam operated below their optimal scale in both 2017 and 2021. An analysis of the impact of subcontracting on firms' likelihood to achieve their optimal scale emphasizes its crucial role, especially for foreign firms, exerting an influence nearly five times greater than that of the judiciary system.

Practical implications

The paper's findings offer crucial policy implications, suggesting that initiatives aimed at enhancing the overall productivity of the manufacturing sector should prioritise facilitating contract arrangements to encourage firms to reach their optimal size. These insights are also valuable for other countries with comparable firm size distributions.

Originality/value

This paper provides the first empirical evidence on the relationship between firm size and productivity as well as the role of subcontracting in firms' ability to reach their optimal scale in a country with a right-skewed distribution of firm sizes.

Details

Journal of Economics and Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1859-0020

Keywords

Article
Publication date: 25 April 2024

Samuel Mwaura and Stephen Knox

This paper investigates how gender, ethnicity, and network membership interact to influence how small and medium-sized enterprise (SME) owner-managers become aware of finance…

Abstract

Purpose

This paper investigates how gender, ethnicity, and network membership interact to influence how small and medium-sized enterprise (SME) owner-managers become aware of finance support programmes developed by government policy and/or support schemes advanced by the banking industry.

Design/methodology/approach

Drawing on expectation states theory (EST), we develop eight sets of hypotheses and employ the UK SME Finance Monitor data to test them using bivariate probit regression analysis.

Findings

In general, network membership increases awareness, but more so for government programmes. We also find no differences between female and male owner-managers when in networks. However, we identify in-network and out-network differences by ethnicity, with minority females seemingly better off than minority males.

Practical implications

Business networks are better for disseminating government programmes than industry-led programmes. For native White women, network membership can enhance policy awareness advantage further, whilst for minorities, networks significantly offset the big policy awareness deficits minorities inherently face. However, policy and practice need to address intersectional inequalities that remain in access to networks themselves, information access within networks, and the significant out-network deficits in awareness of support programmes afflicting minorities.

Originality/value

This study provides one of the first large-scale empirical examinations of intersectional mechanisms in awareness of government and industry-led enterprise programmes. Our novel and nuanced findings advance our understanding of the ways in which gender and ethnicity interact with network dynamics in entrepreneurship.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

Open Access
Article
Publication date: 22 April 2024

Girma Asefa Bogale

This study aims to explore the smallholder farmers’ perceptions of climate change and its adaptation options (changing crop variety; improved crop and livestock; soil and water…

Abstract

Purpose

This study aims to explore the smallholder farmers’ perceptions of climate change and its adaptation options (changing crop variety; improved crop and livestock; soil and water conservation [SWC]; and irrigation practices) and drought indices in the Dire Dawa Administration Zone, Eastern Ethiopia.

Design/methodology/approach

A cross-sectional household survey was used. A structured interview schedule for respondent households for key informants and focus group discussions were used. This study used both descriptive statistics and an econometric model. The model was used to compute the determinants of climate adaptation options in the study area. Drought characterization was carried out by DrinC software.

Findings

The results revealed households adapted to selected adaptation options. The model results confirmed that education level, farm size, tropical livestock units (TLUs) and access to agricultural extension services have positive and significant impacts on changing crop variety by 0.0014%, 0.045%, 0.032% and 0.035%, respectively. The likelihood of farmers’ decisions to use adaptation strategies (family size, TLU, agricultural extension service and distance from the market) has positive and significant impacts on SWC. The reconnaissance drought index (RDI6) of ONDJFM and AMJJAS showed extreme and severe drought index values of −2.88 and −1.96, respectively.

Originality/value

This study used a locally adopted climate change adaptation intervention for smallholder farmers, revealing the importance of drought characterization indices both seasonally and annually.

Details

International Journal of Climate Change Strategies and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-8692

Keywords

Article
Publication date: 14 August 2023

Oliver von Dzengelevski, Torbjørn H. Netland, Ann Vereecke and Kasra Ferdows

When is it more profitable for multinational manufacturers to manufacture in high-cost environments and when in low-cost environments? While the literature offers many cues to…

Abstract

Purpose

When is it more profitable for multinational manufacturers to manufacture in high-cost environments and when in low-cost environments? While the literature offers many cues to answer this question, too little empirical research directly addresses this. In this study, we quantitatively and empirically investigate the financial effect of companies' production footprint in low-cost and high-cost environments for different types of production networks.

Design/methodology/approach

Using the data of 770 multinational manufacturing companies, we analyze the relationship between production footprints and profitability during four calendar semesters in 2018 and 2019 (N = 2,940), investigating the moderating role of companies' production network type.

Findings

We find that companies with networks distinguished by both high levels of product complexity and process sophistication profit the most from producing to a greater extent in high-cost countries. For these companies, shifting production to low-cost countries would be associated with negative performance implications.

Practical implications

Our findings suggest that the production geography of companies should be attuned to their network type, as defined by the companies' process sophistication and product complexity. Manufacturing in low-cost countries is not always the best choice, as doing so can adversely affect profits if the products are highly innovative and the production processes are complex.

Originality/value

We contribute to the scarce empirical literature on managing global production networks and provide a data-driven analysis that contributes to answering some of the enduring questions in this critical area.

Details

International Journal of Operations & Production Management, vol. 44 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

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