Competitive Orientations in Professional Services

ABSTRACT

This article presents the results of a study on the competitive orientations of three types of professional service firms: advertising agencies, market research agencies and management consultants. Similarities as well as some differences in orientations were identified among the three groups. Advertising agencies were found to have the strongest competitive orientation. The study also found that firms with higher levels of competitive orientations also had better internal integration and control of the marketing function.     

The ICT revolution in consumer product markets

New information and communication technology (ICT) makes consumers better informed about available products, product quality and prices, which mitigates problems of asymmetric information. The entry of firms is facilitated, competition and economic efficiency is boosted and the market powers of households increased. Firms are likely to respond by increased product and price differentiation. There will also be considerable changes in the division of tasks between firms and households. But important obstacles to these developments are technological vulnerability, quality problems in the information on the Internet, cognitive limitations of individuals and weaknesses in the product‐delivery infrastructure in connection with Internet trade.     

Internet Tool Use and Virtual Co-Creation in the Brazilian Construction Industry: Organizational Practices and Consumers' Personal Values

ABSTRACT

This article analyzes the use of Internet tools and virtual co-creation initiatives of firms ranked among the top 100 in the Brazilian building industry. The research was based on observation of the companies' websites and of 200 posts written by participants in a collaborative building project. Websites were observed for the way online interaction tools were aligned to their declared goals. Posts were analyzed using discourse analysis and coded on the basis of the list of values. Results show that only three companies use online tools for the purpose of co-creation and that customer enjoyment is the primary driver of co-creation.     

A Gap Analysis of a CPA Tax Service and the Implications for Enhancing Service Quality

ABSTRACT

Certified Public Accounting (CPA) firms are “pure” services where the customer is buying the knowledge and expertise of the accounting professional. Marketing the “expertise” of certified public accounting firms is challenging because the client's expected and perceived levels of service quality is not clearly understood. This article presents a service blueprint of an income tax service and highlights potential failure points that can impact process and outcome qualities. Some recommendations are made for improving the tax service to achieve higher levels of service quality.     

Impact of Organizational Characteristics and Information Technology Maturity on Internet Business Application: A Taiwan Survey

ABSTRACT

The Internet and World Wide Web (WWW) have provided unprecedented opportunities and challenges for conducting business online today. The growing trend of the Internet in Asia will cause companies to go on online quickly and the Internet will reinforce a speedy recovery and drive the globalization of the region. The spread of the Internet with decrease in cost should remove hidden barriers to free commerce and boost the economy in Asia. A cross-sectional survey of the manufacturing industry in Taiwan was conducted. On the basis of concerning value chain, organization and information management, this study examines the impact of organizational characteristics and information technology (IT) maturity on the Internet business application, and on the benefit of improving competitive advantages. It is found that firm type, organizational characteristics and IT maturity influence firms' Internet application in the value chain. Organizational characteristics and IT maturity influence the Internet business application, and the firms' improvement in competitive advantage varies. Overall, the firms with innovation-oriented or high level of IT maturity in Taiwan have higher implementation rate of the Internet and more widespread of application in the value chain. Hence, these firms are usually able to further integrate different value creation activities in the value chain to gain more competitive advantages     

The Internet and Internationalization of Smaller Manufacturing Enterprises

Abstract

One of the most frequently discussed topics in the current international business literature is the impact of the Internet on the internationalization of smaller manufacturing enterprises (SMEs). The study was carried out through a mail survey of the top executives of 125 Wisconsin firms. It examined 10 research hypotheses on internal and external factors which had been identified by previous research to influence the internationalization of SMEs through the Internet. Research findings conclude that the scope of internationalization of SMEs through the Internet is affected by internal factors, such as managements' perceptions of the effectiveness of their web sites as a marketing tool, lack of experience, and SMEs' potential usage of the Internet.     

The Internet,Strategy and Performance: A Study of Australian Export Market Ventures

ABSTRACT

This study examines the impact of the Internet, firm-specific characteristics, market characteristics, and export marketing strategy on export marketing performance. The unit of analysis was an individual product/market export venture. Data were gathered via a self-administered mail survey of 315 Australian firms involved in exporting. The findings indicate that, when the Internet was used for communication purposes and to provide the firm with a competitive advantage, it had a significant impact on export marketing performance. Firm-specific characteristics and export marketing strategy also had a significant impact on export marketing performance.     

An Evaluation of the Effectiveness of Internet Advertising Tools

ABSTRACT

This study explores a wide variety of Internet advertising tools. It presents an assessment of the persuasive impact of Internet advertising tools based on the perceptions of senior executives at interactive advertising agencies. The persuasion matrix developed by McGuire (1978) is used as a framework for assessing the impact of Internet advertising tools on the response hierarchy of consumers. Based on this assessment, a series of research propositions are offered in the spirit of propositional inventories for future testing. Finally, included is a discussion that alerts managers to important issues involved in using Internet advertising tools.     

The Role of Innovation Policies in the Brazilian Health Biotechnology Regime

ABSTRACT

The Brazilian biotechnology health innovation regime can be understood as a phenomenon that results from the co-evolution of scientific, economic, and political factors. In order to analyze this co-evolution process, this article presents empirical evidence regarding the relationship between the public policy rationale devoted to promoting innovation activities and the development of health biotechnology in Brazil. Focusing on the 2002–2010 period, this article analyzes the different roles played by public policy on the development of Brazilian health biotechnology. The article is based on the analysis of two main dimensions: the national research capabilities and the dedicated biotechnology firms in Brazil. In this regard, the main conclusion is that public policies had a significant impact on both dimensions. However, the impact has been erratic and reflects strategic public policy weaknesses.     

Comment: Regulatory procedures,investment opportunities,and stock valuation

Several recent studies of the effect of accounting treatment on the valuation of electric utilities have concluded that investors appear to favor normalizing firms by pricing equities of such firms relatively higher than the equities of flow-through firms. The observed higher price/earnings ratios (P/E ratios) for normalizing firms have usually been credited to the benefits of normalization, as perceived by investors. This article presents evidence that the observed preference for normalization companies is unrelated to accounting treatment. Rather, this preference is related to the fact that firms that obtain normalization benefits typically have lower costs than those which do not have such benefits. This characteristic of normalization firms results in their relatively higher P/E ratios.     

Managing E-Procurement Solutions Portfolio: Case Study of an Indian Steel Manufacturer

ABSTRACT

Increasingly firms are using e-solutions to fulfill their procurement needs. In the last few years, various forms of e-Procurement solutions have emerged. This case study looks into the evolution of e-Procurement solutions at an Indian steel manufacturer, Tata Iron and Steel Company (TISCO). This case study raises questions about the determinants of each solution type and its consequences. This study argues that rather than sticking to one solution, firms need to manage a portfolio of e-Procurement solutions to realize the full potential of the Internet.     

A Note on the Incidence and Possible Cost of “Critical Circumstances” Penalties in U.S. Antidumping Enforcement

This article examines the incidence and possible cost of “Critical Circumstances” penalties in U.S. antidumping enforcement. Critical Circumstances penalties are surprisingly common. Of the 297 foreign firms that were assessed antidumping duties greater than 25% during the period 1980–1995, 89 (or 30%) were also assessed a Critical Circumstances penalty. The volume of imports affected by these Critical Circumstances penalties was approximately $991 million over the 15 year period (or about $66 million per year). The average level of the Critical Circumstances penalties was about 79% of the value of the relevant commerce, assessed for a period of up to 90 days, or as much as $13 million per year. The economic cost to the United States from Critical Circumstances penalties comes largely from the reduction in export levels (increase in prices) that foreign firms may make in the expectation that a Critical Circumstances penalty may be assessed. The article presents evidence that foreign firms have restricted their exports to the United States to avoid or minimize Critical Circumstances penalties, and discusses a simple model that may illustrate how foreign firms react to the possibility of such penalties.     

Marketing channel evolution: From contactual efficiency to brand value co-creation and appropriation within the platform enterprise

Abstract

In recent years, major technological advances have been a primary force driving channel evolution. In particular, the Internet of things has provided a means for some firms to experience the rise of one of the most innovative and cutting-edge channels—the platform enterprise (i.e., firms such as Amazon, Etsy, and Airbnb). We examine the platform enterprise through a marketing channel evolution lens. In doing so, we point to key factors that enable particular kinds of firms to forge unique marketing channels. As platform enterprises, these channels offer value that transcends contactual efficiency, because they utilize their resources and capabilities not only to connect buyers and sellers efficiently but also to create a community of stakeholders whose collective efforts are focused on two linked priorities—brand value co-creation and brand value appropriation.     

The Influence of Selected Factors on the Perceptions of Managers of Small Business Firms Regarding Legal Firms

Abstract

The South African service provider is faced with an increasingly turbulent and complex competitive environment (Griffith & Rust, 1997:109-116). Factors that impact specifically on the environment of service firms (such as the providers of legal services) include the growing importance of consumerism and a drastic increase in competition (Harrel & Fors, 1992:299-306).

The latter factor has a number of causes, amongst others, a stagnating economy (Griffith & Rust, 1997:109-116). A factor that impacts directly on the growing competition amongst providers of legal services is the increase in law graduates and commensurate increase in qualified attorneys and advocates entering the market. Figures supplied by the Law Society of the Cape of Good Hope and the Law Society of the Transvaal indicate an increase in excess of 50% in the number of practising attorneys in both the former provinces of the Cape and Transvaal between the years 1990 and 1997.

This article presents an exploratory study establishing the relative value attached by small business in South Africa to certain factors, inter alia advertising and location, pertaining to firms providing legal services. A better understanding of the importance of these factors will assist legal firms to improve service delivery thereby improving profitability.     

Creating and marketing Distinctive Competency in Small Public Accounting Firms

ABSTRACT

Small public accounting firms face fierce competition on a crowded and homogeneous playing field. A framework is available to help accounting firms stand out from the crowd and gain a competitive advantage. Distinctive competencies are skills, activities or capacities that a business is uniquely good at in comparison to its competitors. This article discusses the various kinds of distinctive competencies and the primary competencies suitable for small public accounting firms. The discussion includes the requirements for creating a competitive advantage, steps to creating distinctive competencies, and marketing implications. The conclusion includes suggested research needs.     

Electronic Word-of-Mouth in Social Networking Sites: A Cross-Cultural Study of the United States and China

ABSTRACT

Understanding electronic word-of-mouth (eWOM) in social networking sites (SNSs) is crucial as consumers have potential to reach global audiences quickly and easily. This article presents the first cross-cultural study on eWOM in SNSs by examining social relationship variables between the United States and China. Specifically, social capital, tie strength, trust, and interpersonal influence were examined as potential predictors of eWOM communication in the emerging online social channels. The results suggest that national culture plays a significant factor that affects consumers’ engagement in eWOM in SNSs in the two countries. Theoretical and managerial implications for global Internet marketers were presented and discussed.     

The Internet as a Shopping/Purchasing Tool: An Empirical Investigation

ABSTRACT

Despite prolific growth in the number of Internet web sites, significant increases in the advertising and other promotional expenditures for Internet advertising, and the fact that millions of consumers are shopping for and spending billions of dollars purchasing products via the Internet, marketers have a limited understanding of Internet-related consumer behaviors. This study presents the results of an empirical study designed to investigate the degree to which one segment of that market–college/university students–has access to the Internet, shops for and purchases products via the Internet, and perceives the Internet as an alternative to more traditional shopping methods. More general uses of the Internet by this market segment are also explored, as are the impacts of consumer knowledge and experience with the Internet on on-line shopping and purchasing.     

Quid pro quo and the enforcement of intellectual property rights protection: A bargaining approach

This article models a North–South negotiation where the North provides a quid pro quo in exchange for the strengthening of the enforcement of intellectual property rights (IPR) protection in the South. We show that when Northern and Southern firms compete on quantity in the Southern market, the South's optimal choice is either complete protection or complete violation, irrespective of different levels of IPR protection being available. We show this to depend on the Southern government's valuation of the quid pro quo and the Northern firm's level of technology.     

Institutional investor heterogeneity and firm valuation: Evidence from Latin America

This article analyses how the corporate valuation of Latin American firms is affected by the presence of a blockholder institutional investor. The study uses a data set of 562 firms from six Latin American countries for the 1997–2011 period. We found that the presence of an institutional investor has a positive effect of 8% on firm value, which increases to 21% for the cases where there is blockholder coalition with an institutional investor. After dividing the sample by investor type, we found that independent institutional ownership implies a positive premium on firms' Tobin's Q, while the presence of a grey investor has a negative effect on firm valuation.     

Can socially irresponsible firms benefit from corporate advertising?

Abstract

Can corporate advertising improve firm performance following a brand crisis borne out of corporate social irresponsibility (CSI)? This article investigates socially irresponsible firms and their corporate advertising expenditures, which can be used to counter negative opinions. First, we examine whether firms experiencing a negative brand image due to socially irresponsible behavior alter their corporate advertising expenditures. Next, we assess the resulting impact of corporate advertising spending by CSI firms on overall performance. Using a sample of firms engaging in socially irresponsible behavior between 1995 and 2011, we find that such firms tend to increase their corporate advertising. Such changes in corporate advertising expenditures ultimately impact firm performance. Specifically, an increase in corporate advertising helps to reduce the negative effect of CSI on firm performance.