Configuration and coordination of international marketing activities

With this paper, we contribute to the literature of configuration and coordination in international firms. While previous literature emphasized that headquarters decide upon the configuration and coordination of their foreign subsidiaries, we suggest that the configuration–coordination decision takes place at the level of activities. With a focus on international marketing activities, our study on German firms from the automotive industry comes up with the following major findings: (1) With respect to configuration, firms tend to centralize the planning and the control of marketing activities, but to decentralize the implementation of marketing activities. (2) For the coordination of marketing activities, direct personal supervision and informal communication are preferred to other approaches, such as socialization or formal bureaucratic coordination. (3) When combining configuration and coordination of marketing activities, we identified distinct clusters. Firms that have a high decentralization of marketing activities and that use a high level of coordination yield better coordination results than firms from other configuration–coordination clusters.     

CSR development in post‐communist economies: employees' expectations regarding corporate socially responsible behaviour – the case of Romania

Drawing on stakeholder theory and the evolutionary approach to institutions, this paper investigates the channels through which corporate social responsibility (CSR) is developed in post‐communist economies by focusing on the employee background factors that shape the employees' expectations with regard to corporate socially responsible behaviour. We identify three channels through which exogenous and endogenous CSR are developed: employees with work experience in multinational enterprises (MNEs) (leading to exogenous CSR), employees with CSR knowledge (leading to exogenous CSR) and employees with experience of the socialist system (leading to endogenous CSR). Furthermore, we argue that the interactions between these channels lead to hybrid CSR in transition economies. We use a questionnaire‐based survey with employees of domestic and MNEs in Romania and we conduct regression analysis. We find that employees with work experience in MNEs act as channels for exogenous CSR, while employees with experience of the socialist system act as channels for endogenous CSR. Furthermore, employees with experience of the socialist system and CSR knowledge or work experience in an MNE act as channels for hybrid CSR in transition economies. Based on our results, we put forward implications for theory, managers and policy makers.     

How far have we come and where should we go after 30+ years of research on Africa's emerging financial markets? A systematic review and a bibliometric network analysis

In this study, we perform a systematic literature review and a bibliometric network analysis of studies on Africa's financial markets from 1992 to 2021. The findings are as follows. First, we observe a steady growth of financial markets research in Africa over the 30-year period under consideration, which is suggestive of increasing interest and commitment to research on financial markets in Africa. Additionally, we note a lack of collaboration between or among researchers of financial markets studies in Africa, which implies very little knowledge exchange, ideas sharing, and innovations. We identify seven major areas of research based on the thematic network and content analysis, which are as follows: (i) asset pricing, (ii) financial integration, (iii) contagion, herding and extreme global events, (iv) efficiency and predictability of stock returns, (v) market interdependencies-sources and channels, (vi) portfolio diversification and risk management strategies, and (vii) impact of economic and financial news. We offer several avenues for future research that can set the agenda for financial market research in Africa in the coming years.     

Venture capital in Europe: social capital,formal institutions and mediation effects

Venture capital (VC) as an industry has existed for more than 50 years, yet it has only moderately developed beyond the USA despite numerous trials of governments to foster it. Vast research endeavors have been carried out to understand the antecedents, barriers, and facilitators of the industry. However, the focus has been rather limited and accounted almost exclusively for formal features of institutional environments, leaving the informal dimensions unexplored. This paper tries to close that gap. Based on longitudinal country-level data on 18 European countries, we first explore if the “usual suspects,” mostly embodied in reformable formal institutions, do play a role in the European context. We also investigate if informal institutions, and in particular social capital, may exert a prominent effect. In this respect, we found that the impact of social capital on VC activity is indeed indirect, through determining those structural formal institutions which in turn significantly affect VC activity. These findings contribute to the literature on VC and inform European policy makers on the most promising channels for creating a prosperous institutional environment for the financing of innovative start-ups.     

Retailers’ coalition and quantity discounts under demand uncertainty

Coalition of retailers is a nowadays phenomenon in retailing channels (RCs) that makes it possible for the retailers to enhance their business performance and respond to the consumers' needs more effectively. This paper discusses the retailers' coalition advantages and challenges in a two-echelon retailing channel consist of one wholesaler and two non-competing retailers who serve the consumers. The model is developed under a classic newsvendor problem where an all-unit quantity discount is offered by the wholesaler. Our investigations are conducted for both homogeneous/heterogeneous retailers under three different scenarios. In the developed models, the retailers start to make a coalition and make a joint order in order to gain more from the offered discount by the wholesaler, and then using a heuristic procedure they allocate the received order to serve their individual markets. The main objective of this study is to analyze and resolve challenges of the retailers' coalition when a quantity discount is offered in order to make them capable to meet consumers' needs in the best possible manner. Three models are developed: (1) no-coalition decentralized scheme, (2) decentralized coalition where the retailers coalesce, and (3) centralized coalition where not only the retailers but the wholesaler participate in the coalition scheme. Our paper contributes to the RC management literature by analyzing the benefits of the retail coalition in taking most advantage from an offered quantity discount. Results demonstrate that the optimal configuration of the retailers' coalition increases profits of both the retailers and the RC in comparison with the no-coalition scenario. Our findings help procurement managers to rethink their ordering policy toward forming coalition to gain more profits and enhance their service level to meet consumers’ needs.     

The role of design in the future of digital channels: Conceptual insights and future research directions

PurposeIn the past channel literature has looked to other disciplines in developing and refining their theories, models and methods in order to evolve the field. This paper traces such history and highlights the substantial changes caused by the digital age. In light of this, the inclusion of design theory into future channel management is presented to overcome existing concerns.Design/methodology/approachA comprehensive review of literature on the history of channels, the emotional experience (people), limitations of digital innovation (technology) and the role of design (business) has been conducted to create a new approach, built upon the theory of the techno-economic innovation model.FindingsThe findings of this study propose design-led channel management as a new research area, providing novel research questions and future research directions. The inclusion of design and emotion theories indicates that the future of digital channel design requires a deeper understanding of customers and needs to go beyond technological advances.Theoretical implicationsThe findings provide an opportunity to explore dynamic theories and methodologies within the field of design that will broaden the horizons and challenge existing notions in channel literature.Originality/valueThis paper is the first paper that introduces the theory of Emotionate, as the next evolution of channel literature. The value of Emotionate lies in providing a new design-led process of integrating emotion to provide advice to practitioners as well as identifies research areas for academia, thereby extending the reach and richness of this emerging research field.     

The role of top management teams in transforming technology-based new ventures' product introductions into growth

The literature highlights the importance of top management teams (TMTs) for technology-based new ventures' success in achieving growth, which is often achieved through product introductions. The human capital theory suggests that TMT members' skills, which are typically derived from their education and experience, can facilitate the transformation of new product introductions into growth. We also propose that multiple products that must be managed and brought to the marketplace smoothly and flexibly benefit from the lower coordination needs and conflicts that are typical of functionally homogeneous teams. Using a unique, multi-source dataset on 374 US technology-based new ventures during the period from 2005 to 2014, we find that new product introductions help technology-based new ventures grow only when the TMT has startup experience and is not functionally diverse. Our findings lead us to echo calls in the TMT literature to move away from simple direct-effect models to more situation-dependent analyses of TMT diversity.     

The impact of the institution of patent protection and enforcement on entry mode strategy: A panel data investigation of U.S. firms

The Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement has engendered a harmonisation of patent laws across countries but the extent of enforcement of these laws continues to vary. This study investigates the degree to which de jure book law protection of patents and de facto enforcement of these laws influences the propensity of firms to exploit their patented technology in foreign markets with company-owned operations or unrelated concerns using licensing agreements. Analyzing data on royalty and fee receipts of U.S. parent companies from affiliates and non-affiliated parties abroad from 1998 to 2007, and using separate measures for de jure and de facto patent protection and enforcement, we find that strengthening de jure protection induces greater affiliate licensing while strengthening de facto enforcement induces non-affiliate licensing. We conclude by observing that greater account should be taken of de facto enforcement measures when investigating the role of institutions on the international activities of firms.     

The effects of multi-channel assortment integration on customer confusion

Abstract

The effects of assortment strategy on customer confusion have been discussed for singular channels in the past. However, multi-channel retailers also have to coordinate their assortment across channels. Recent literature has started to investigate which assortment integration strategy is most favourable for retailers, but theoretical and empirical research is still scarce. Until today, customer confusion has not been considered in this discussion. This article seeks to identify the impact of a retailer’s assortment integration on customer overload confusion, assortment perception and their consequences. In an experiment, we manipulate assortment integration internally (online and offline channel of the focal retailer; full and asymmetrical integration) and externally (online channel of the focal retailer and a competing online retailer; full, asymmetrical and no integration). The results indicate that both internal and external assortment integration have an impact on overload confusion and assortment perception. Asymmetrical internal integration induces less overload confusion in terms of its cognitive and affective components and leads to superior assortment perception. Full and asymmetrical external integration evoke less confusion with regard to its cognitive component. Eventually, overload has detrimental short- and long-term effects for the retailer. Multi-channel retailers should consider our results when implementing an assortment integration strategy.     

Neither developed nor emerging: Dual paths for outward FDI and home country innovation in emerged market MNCs

Emerged market multinational corporations (EDMNCs) ? those based in emerged markets that have transitioned out of emerging economic status ? have received little research interest from the international business scholarship, despite their growing presence in the global market. EDMNCs face significant competitive pressure to leverage cross-border knowledge to innovate and leapfrog their middle-zone status between emerging and developed market multinational corporations. Analyzing 174 publicly listed South Korean MNCs and their outward foreign direct investment (OFDI), we find that an EDMNC’s OFDI into developed and emerging markets contributes unequally to its home-country innovation. We also elaborate on the moderating effect of industry peers’ OFDI into developed countries through crowding out and spillover effects. These findings have implications for the OFDI and innovation literature in general, and particularly for international business scholarship focusing on an under-investigated category of MNCs that are increasingly becoming successful in international competition.     

Global managers: developing a mindset for global competitiveness

There is increasing evidence that large scale globalization is rendering traditional ways of doing business largely irrelevant. There is a growing need for managers to become global managers with a global perspective. We suggest that a global perspective consists of a global mindset supported by appropriate skills and knowledge. Managers have a number of mindsets that range from the domestically-oriented defender, and continuing on to the explorer, the controller, and the globally-oriented integrator. For global managers to be effective, they need to develop the global mindset of an integrator. A global mindset allows meaningful global strategizing that requires managers to effectively integrate the three global forces of (1) global business, (2) regional/country pressures, and (3) worldwide functions. A global mindset and a holistic global strategy should create conditions to build the worldwide organization characterized by specialization, interdependency, and coordination. A global outlook is a process of moving an organization’s structure, process, people, and culture from a set of highly autonomous business units to one that becomes an integrated and effective global network.     

Corporate social responsibility in emerging market economies: Determinants,consequences, and future research directions

The last two decades have witnessed a growing interest in corporate social responsibility (CSR) worldwide by corporations, investors, policy makers, and researchers across different disciplines. This paper is part of a Special Issue devoted to CSR practices of firms in emerging market economies (EMEs). It complements prior research focusing mainly on developed countries. We begin with an assessment of CSR practices in EMEs, and examine their determinants and performance implications. We then review key findings in the empirical CSR literature, including studies published in the Emerging Markets Review Special Issue. We conclude by describing pertinent avenues for future research.     

The Impact of Fraudulent False Information on Equity Values

There are two types of stock price manipulation examined in the theoretical literature: (1) insider trading, which involves private information that is true and (2) the public spreading of fraudulent false information. While there is a large empirical literature on insider trading, this is the first empirical article to examine the impact of false, fraudulent public information on stock prices and trading volume. We find that such false information, even after being denied by a credible source such as the SEC, generates both abnormal returns and abnormal trading volume. We also find that the effects of the false information on security returns and volume can be persistent for at least 2 weeks. In addition, we show that perpetrators of false news attacks can make potentially large profits from such market manipulations.     

Institutional work to navigate ethical dilemmas: Evidence from a social enterprise

Social entrepreneurs encounter ethical dilemmas while addressing their social and commercial missions. The literature has implicitly acknowledged the ethical dilemmas social entrepreneurs face; however, the nature and implications of these ethical dilemmas and how social entrepreneurs navigate them are underexplored and undertheorized. We address this by conducting a 36-month field study of a social enterprise operating in a rural resource-constrained environment in India and dealing with a stigmatized product. We found four categories of ethical dilemmas faced by social entrepreneurs: challenges in engaging the community (equality vs. efficiency and fairness vs. care), challenges related to spillover effects (right vs. responsibilities), challenges in balancing diverse stakeholders (emotionally detached vs. emotionally engaged), and challenges related to cross-subsidization efforts (utilitarianism vs. fairness). Further, we identified three types of institutional work social entrepreneurs engage in to address ethical dilemmas: recognition work, responsibilization work, and reflective judgment work. We label these three institutional works as inclusion work - purposive actions of an entity to address ethical dilemmas by implementing its program in a way that supports the most marginalized. Our study makes an important contribution to the literature on ethics in the context of social entrepreneurship by identifying specific ethical dilemmas social entrepreneurs face in managing hybridity (balancing social-commercial objectives) and enhancing social impact (managing social-social objectives). Moreover, through the concept of inclusion work, our research not only integrates insights from ethics and institutional theories but also responds to the recent call to address grand societal challenges through institutional work.     

Probability Models for Customer-Base Analysis

As more firms begin to collect (and seek value from) richer customer-level datasets, a focus on the emerging concept of customer-base analysis is becoming increasingly common and critical. Such analyses include forward-looking projections ranging from aggregate-level sales trajectories to individual-level conditional expectations (which, in turn, can be used to derive estimates of customer lifetime value). We provide an overview of a class of parsimonious models (called probability models) that are well-suited to meet these rising challenges. We first present a taxonomy that captures some of the key distinctions across different kinds of business settings and customer relationships, and identify some of the unique modeling and measurement issues that arise across them. We then provide deeper coverage of these modeling issues, first for noncontractual settings (i.e., situations in which customer “death” is unobservable), then contractual ones (i.e., situations in which customer “death” can be observed). We review recent literature in these areas, highlighting substantive insights that arise from the research as well as the methods used to capture them. We focus on practical applications that use appropriately chosen data summaries (such as recency and frequency) and rely on commonly available software packages (such as Microsoft Excel).     

Entrepreneurs meet financiers: Evidence from the business angel market

This paper formalizes and estimates the process of search and matching between entrepreneurs and financiers in the business angel (BA) market. Our theoretical model describes the market for entrepreneurial finance as a fair in which the two sides of the market can meet bilaterally and transform a rough entrepreneurial idea into a real start-up firm. We then collect a new dataset from the BA markets of 17 developed countries for the period 1996–2014, and we estimate the aggregate matching function expressing the number of deals as a function of the number of submitted entrepreneurial projects and of business angels. Empirical findings confirm the technological features assumed in the theoretical literature: positive and decreasing marginal returns to both inputs (stepping on toes effect), technological complementarity across the two inputs (thick market effect) and constant returns to scale. We discuss the theoretical and policy implications of these findings.     

Are There “Honorable Merchants” in International Marketing Channels?

The starting points of this initial exploratory study are two research questions: (1) could marketing relationships in international marketing channels be predicted by international marketing managers’ behavior reflected by “honorable merchants’” key concepts (ethics and trust) and experiential learning key concepts such as capability and competence?; and (2) can we measure the progress of this research theme in the international marketing literature and understand the nature of this phenomenon? We examine how scholarly research on international marketing managers’ behavior and their marketing relationships evolved from 2003 to 2013 and envisage the shape of this research theme the next years, to uncover current trends and possible research gaps on the ethics agenda in the international marketing education area. We identified the most salient concepts from 2,083 words for 22 key concepts counted in the abstracts of the 327 journal articles of the international marketing literature, in order to innovatively uncover the trends and concepts, explaining the marketing relationships in the international marketing context. We assessed sets of concepts that best reflect the marketing relationships in international marketing channels and indicated prospects for increasing the focus on specific topics, by conducting a series of multiple linear regression analyses and trend analyses. The research results show that the progress of the research theme can be measured. Innovatively, key competences and capabilities of international marketing managers relating to the key concepts of the “honorable merchant” construct are realized as a strong logical basis for the explanation of effective marketing relationships in international marketing channels. © 2015 Wiley Periodicals, Inc.     

Multichannel customer purchase behavior and long tail effects in the fashion goods market

The fast-paced growth of e-commerce is impacting the type and variety of products consumers purchase across channels. A commonly held theory, known as long tail theory, posits that online sales are less concentrated at the top of the sales distribution than offline sales, and that more variety is bought online, making the tails of the overall sales distribution denser with the growth of e-commerce. Most of the literature testing the long tail theory has focused on examining entertainment goods markets that do not require much physical examination, and has predominantly found results consistent with the theory. However, the magnitude and antecedents of the observed long tail effects might be different for product categories containing products that require more physical examination before purchase, such as fashion goods. In this study, using detailed individual and transaction level panel data from two multichannel fashion goods retail brands, we show that while the shift to the online channel results in a decrease in the concentration of overall sales for both brands, this change mostly results from consumers buying different products online rather than consumers buying a greater variety online compared to offline. We show that the flattening of the overall sales distribution with the growth of e-commerce in our data is driven by consumers sorting their purchases into channels based on product characteristics. In contrast to the recommendations from the previous long tail literature, our results show that fashion apparel retailers do not need to offer broader assortments online compared to offline, but they may find it profitable to carry or emphasize a different product mix online compared to offline. Our results also provide guidance to fashion goods retailers in curating their online and offline assortments and setting inventory management strategies across the channels.     

Building With Bricks and Mortar: The Revenue Impact of Opening Physical Stores in a Multichannel Environment

A crucial decision firms face today is which channels they should make available to customers for transactions. We assess the revenue impact of adding bricks-and-mortar stores to a firm's already existing repertoire of catalog and Internet channels. We decompose the revenue impact into customer acquisition, frequency of orders, returns, and exchanges, and size of orders, returns, and exchanges. We use a multivariate baseline method to assess the impact of adding the physical store channel on these revenue components. As hypothesized, store introduction cannibalizes catalog sales and has much less impact on Internet sales. Also as hypothesized, returns and exchanges increase. Interestingly, transaction sizes of purchases, returns, and exchanges do not change. The “availability effect” produces a net increase in purchase frequency across channels. This more than compensates for increased returns, producing a net increase in revenues of 20% by adding the store channel. Our findings yield a deeper understanding of the revenue relation between channels, and of the dynamic cross-channel effects of marketing actions.     

Patterns of Herding and their Occurrence in an Online Setting

When groups of consumers share information or express their opinions about products and services, their attitudes or behavior sometime align without centralized coordination, a phenomenon known as herding. Building on pattern-based explanations of herding from the cognitive science literature, we propose a framework to elucidate herding behavior based on three dimensions: the speed of contagion, i.e., the extent to which the behavior spreads in a given time, the number of individuals, i.e., the proportion of the whole population expressing the behavior, and the uniformity of direction, i.e., the extent to which the mass behavior is increasingly uniform with one variant becoming dominant. Based on these dimensions, we differentiate eight patterns of herding behavior from slowly diffusing, small and disparate groups through to rapidly spreading, massive herds expressing a convergent behavior. We explore these herding patterns in an online setting, measuring their prevalence using over four thousand streams of data from the online micro-blogging application, Twitter. We find that all eight patterns occur in the empirical data set although some patterns are rare, particularly those where a convergent behavior rapidly spreads through the population. Importantly, those occurrences that develop into the pattern we call “stampeding,” i.e., the rapid spread of a dominant opinion expressed by many people, generally follow a consistent development path. The proposed framework can help managers to identify such noteworthy herds in real time, and represents a first step in anticipating this form of group behavior.