Promotion and Prevention Contracts in Distributor–Supplier Relationship Using Matched Dyadic Data

ABSTRACT

Purpose: This article aims to introduce and distinguish two features of contract design – prevention and promotion contracts – and compares their effects on opportunism within the distributor–supplier relationship. It also examines the moderating role of ex post contract enforcement strategies.

Methodology/approach: The authors test the proposed theoretical model by collecting matched data from distributors and suppliers in China. Moreover, partial least squares regression is used to analyze the data and test the hypothesis model.

Findings: The results show that a prevention contract leads the distributor to vigilantly avoid mistakes and punishments, thereby deterring him from behaving opportunistically. Alternatively, a promotion contract motivates the distributor to make an effort to attain potential long-run payoffs instead of short-term profits, subsequently restraining his opportunism. Overall, the promotion contract is more effective in curbing distributor opportunism than the prevention contract. In addition, the inhibitory effect of a prevention contract on opportunism is reinforced along with a severe contract enforcement strategy. By contrast, a promotion contract effectively mitigates opportunism with a swift contract enforcement strategy.

Originality/value/contribution: This study untangles two distinctive features of contract design – prevention-framed and promotion-framed contracts – and compares their effects on opportunism management. This study also provides a profound understanding of contract effectiveness by revealing the interaction effect between ex ante contract design and ex post contract enforcement.

Research implications: Researchers are encouraged to explore contract effectiveness from a framing perspective. In particular, ex post contract enforcement strategies should be included in research frameworks related to contract governance. Suggestions for further research on the effects of prevention and promotion contracts on different forms of opportunism are also proposed.

Practical implications: This article provides several insightful implications for managers in designing and enforcing contract in business-to-business marketing. Managers can strategically achieve control and motivation effects by consciously making framing decisions in the contract design, further curbing opportunistic behaviors. Moreover, managers can select a contract enforcement strategy in accordance with the contract type to maximize the effects of the specific contract.     

The Individual Aspect of Interorganizational Cooperation: Favor-Based Cooperation

ABSTRACT

Purpose

Interorganizational (IO) cooperation has been examined primarily as a role-based concept. This research seeks to extend this concept by examining a distinct mode of IO cooperation: favor-based cooperation. This concept refers to voluntary exchanges of preferential treatments between boundary personnel across organizations that are perceived as going beyond the requirements of their role relationships.     

Consumer stockpiling behavior in the retail gasoline market

ABSTRACT

I examine consumer stockpiling behavior in the retail gasoline market and factors that affect consumer stockpiling. Past research such as Hendel and Nevo (2006b Hendel, I. , and A.Nevo . 2006b. “Sales and Consumer Inventory.” The Rand Journal of Economics 37 (3): 543–561. doi:10.1111/(ISSN)1756-2171.[Crossref], [Web of Science ®] , [Google Scholar]) found evidence that implies stockpiling behavior. However, they did not observe actual inventory or consumption and have to rely on simplifying assumptions about these quantities. I collected a novel data set of gasoline purchase history of consumers with actual inventory and consumption to test several hypotheses that relate consumer stockpiling to price, duration between purchases, and consumption. I found that consumers purchase more gasoline when their inventory is low and those holding high inventory are more price sensitive. Consumption habits after a purchase may change due to two forces: previous consumption habit and purchase price. The exact change in consumption and duration between purchases depends on which force is stronger.     

Economic and Non-economic Satisfaction as Outcomes of Micro-enterprises’ Perceived Value from Banking Relationships

ABSTRACT

Purpose

The purpose of this paper is to position economic and non-economic satisfaction as outcomes of micro-enterprises’ perception of value, and to determine the antecedents of perceived value within the business banking industry.     

Information and the Production of Management in a Theory of the Firm

Abstract

I show that the three main contributions to the theory of the business of the last century – those of Cobb and Douglas (1928 Cobb, Charles W., and Paul H. Douglas. 1928. “A Theory of Production.” American Economic Review 18 (Supplement): 139–165. [Google Scholar]), Coase (1937 Coase, Ronald. 1937. “The Nature of the Firm.” Economica 4 (16): 386–405.[Crossref] , [Google Scholar]), and Lucas (1978 Lucas Jr, Robert E. 1978. “On the Size Distribution of Business Firms.” Bell Journal of Economics 9 (3): 508–523.[Crossref] , [Google Scholar]) – are actually complementary and can be fitted into a general model of the firm size choice as the solution to a problem of optimal allocation of decision making in the economy. Decisions require information, and the availability and cost of information drives the optimization of firm size by the relevant decision makers - managers and entrepreneurs - pursuing the maximization of profits. Trends in firm size, and their reversals, are shown to depend on the aggregate information/output ratio.     

The Influence of Innovative Organizational Culture on Marketing Strategy Formulation and Results

ABSTRACT

This article's objective is to analyze the influence innovative organizational culture has on marketing strategy formulation and results, and how this relationship affects organizational performance. The theoretical basis lies in Menon et al.'s (1999 Menon , A. , Bharadwaj , S. G. , Adidam , P. T. , and Edison , S. W. ( 1999 ). Antecedents and consequences of marketing strategy making: A model and a test . Journal of Marketing , 63 , 18 – 40 .[Crossref], [Web of Science ®] , [Google Scholar]) model. The methodology included a survey with medium to large Brazilian companies in different sectors. The final sample consisted of 153 questionnaires that were valid for analysis. Techniques for statistical analysis including singular and multivariate methods were used, from which the relationships between constructs were established by structural equation modeling. Results show a positive relationship between innovative organizational culture, the marketing strategy process, and organizational performance. However, innovative culture does not have a direct influence on performance.     

Ultimate Broadening of the Concept of Marketing: B-to-O-to-C Training Service Professionals Not to Inadvertently Kill Their Clients

ABSTRACT

Purpose

This précis on recent service breakdown prevention (SBP) theory and research advocates innovation organizational leadership and actions via business-to-organization (B-to-O) training focusing on how to manage face-to-face server-client encounters by designing/engaging in effective processes to achieve highly desirable outcomes. This research note advocates the use of role-playing training in experiencing simulated disastrous processes and how-to-avoid such outcomes.     

A Bibliometric Analysis of the First 25 Years of the Journal of Business-to-Business Marketing

Purpose: As part of the recognition of the 25th anniversary of the Journal of Business-to-Business Marketing (JBBM), this paper presents an overview of the JBBM through a bibliometric analysis (BA) of its content from 1992 to 2016. The analysis focuses on the most cited articles and authors, h-index, publications per year, among others that typically are conducted for BAs.

Design/Methodology/Approach: This paper begins with an introduction to the JBBM, showing its characteristics, its history as well as the editorial development and subsequent journal positioning. This information is followed by an analysis based on bibliometric methodology (BM) which considers the h-index, total citations (TCs), total papers (TPs), TC/TP ratio and other similar measures. To display this information, investigation was done to determine the most cited journals, articles, authors, universities and countries, ergo with the greatest incidence within JBBM. Analyzed are 329 articles, reviews and notes taken from the Scopus database for the periods between 1992 and 2016 for the JBBM.

Findings: At the time of this work, the completion of the 25th anniversary of this journal, there is a rising trend in the number of JBBM publications per year. The researchers from the United States were most frequent contributors to the journal, while researchers from Germany, Australia, Norway and the United Kingdom were well represented. Multiple coauthors were more frequent while topics across the general model of business-to-business (B-to-B) marketing were typically found. Special issues on all three university-level education, technology in the classroom as well as Internet in effect B-to-B tactical marketing.

Practical Implications: After observing the different perspectives of the journal’s production, we gain another objective view on the evolution of the JBBM in prior 25 years. This approach is useful for the readers of this journal in order to obtain a quick snapshot of the leading trends occurring in the journal and is similar as performed for many cognate titles. The many titles within marketing and the business disciplines may find such an exercise revelatory.

Originality/Value: There is a trend where several journals (Journal of Marketing, Journal of Public Policy & Marketing, Journal of Marketing Research and Journal of Business Research) have produced special sections to show progress and contributions of these to scientific research using BA and BM. This paper does similarly for the JBBM.     

Bilateral Opportunism in Buyer–supplier Partnerships

ABSTRACT

Purpose

Literature analyzes interorganizational relationships mostly from a relational perspective by emphasizing partnerships’ positive aspects. Yet business reality is often less romantic and more opportunistic. Especially within the automotive industry opportunistic behaviors often cause extreme reactions in both partners, resulting in poisoned relationships. This study examines the effects of bilateral opportunism between buyers and suppliers on both partners’ relationship induced financial performance, using an automotive industrial setting of new product development (NPD) partnerships. Furthermore, we evaluate the “opportunistic fit” between both partners to assess whether partnerships are characterized by opportunistic parity or unilateral domination.     

Bold actions needed to improve civil registration data for road traffic deaths

Abstract

Persisting problems of underreporting and poor quality of road traffic mortality data exist. Bold and sustained actions need to be undertaken by countries to improve civil registration data collection and reporting. Countries need to implement three specific actions to improve civil registration and vital statistics data systems and/or road traffic injury data collection:

• Ensure that civil registration and vital statistics systems produce high-quality cause of death data by working with the health sector to improve medical certification of cause of death and statistical coding in line with the International Classification of Diseases.

• Adopt a consistent definition of a road traffic death for use in police databases, particularly in countries with incomplete civil registration and vital statistics data, where police data are the most reliable source of information

• Link data sources – including civil registration records, police data, health records, insurance data – to improve official road traffic fatality estimates while ensuring the privacy of individual identification.

     

Demarketing places: Rationales and strategies

Abstract

The concept of demarketing, originally introduced by Kotler and Levy (1971 Kotler, P. and Levy, S.J. 1971. Demarketing, yes, demarketing. Harvard Business Review, 49: 74–80. [Web of Science ®] , [Google Scholar]), can be used in the context of places to describe specific activities aimed at deflecting interest, visitors, and/or investment to a particular place. This paper presents an exploratory investigation into the use of place demarketing in the UK. Thirteen in-depth interviews were conducted with place-marketing practitioners whose work was identified as incorporating elements of place-demarketing practice and activity. Four main rationales for demarketing places were identified: sustainability of the place product; market segmentation and targeting; reducing the effect of seasonality; and crisis prevention/management. The strategies identified in the place-demarketing process include: no marketing; redirection/marketing alternative places; informational place demarketing; restricting access; and pricing mechanisms. The paper concludes by drawing together some of the issues and implications that the demarketing of places raises.     

Towards a history of critical marketing studies

Abstract

In this paper, I outline a history of critical marketing studies. The argument put forward that marketing lacks any substantive critical edge is questioned. In surveying our history and finding extensive engagement with a variety of critical perspectives, I connect these with appropriate literature from non-marketing sources to flesh out an account of our critical marketing heritage. I devote considerable attention to the period 1940 to 1990, as this is the historical range of critical marketing literature that most scholars will be unfamiliar with, linking this through citation and discussion to more recently published work. In this way, this paper provides a guide to sources of literature that may have passed marketing scholars by because they violate our disciplinary demands for ‘recency’ (Baker, 2001 Baker, M.J. 2001. “Introduction”. In Marketing: Critical perspectives on business and management, Edited by: Baker, M.J. 1–25. London: Routledge.  [Google Scholar]). As I document, critical marketing studies examines a variety of areas that represent consumer culture theory's (CCT) ‘next frontier’ if we accept Arnould and Thompson's (2005 Arnould, E.J. and Thompson, C.J. 2005. Consumer culture theory (CCT): Twenty years of research. Journal of Consumer Research, 31(4): 868–882. [Crossref], [Web of Science ®] , [Google Scholar]) diagnosis. In opposition to Arnould and Thompson's assertion, CCT's new frontier, this paper contends, is a frontier that has long been of interest to critical marketing scholars whose work might usefully be re-examined.     

Analysis of the effects of visibility and warning devices on driver injury severity at highway-rail grade crossings considering temporal transferability of data

Abstract

This study explores the joint effect of visibility and warning devices on driver injury severity at the highway-rail grade crossings (HRGCs), while also considering other contributing factors. For this purpose, four mixed logit models are developed to estimate the determinants of driver injury severity considering the combinations of visibility conditions (daylight vs. no daylight) and type of warning devices (active vs. passive warning). The models were calibrated using the data obtained from the USDOT Federal Railroad Administration for HRGC crashes that occurred over a ten-year period 2008–2017 Federal Railroad Administration (FRA) Office of Safety Analysis. (2017). Accident data as reported by railroads. Retrieved July, 2018, from https://safetydata.fra.dot.gov/OfficeofSafety/publicsite/on_the_fly_download.aspx [Google Scholar] across the United States. A temporal transferability test was conducted and confirmed the stability of model specifications considering a ten-year span of collected data. The pseudo-elasticity analysis was conducted to ascertain marginal impact of the contributing factors on driver injury severity in each model. While the vehicle speed, train speed, time of day and driver age are found to be common significant factors among the four models, there are marked differences between parameters associated with various crash factors. The study provides new insight into the driver injury severity in train-vehicle collisions considering visibility and type of warning devices, which can help in setting up proper policies to improve safety at HRGCs.     

Political Marketing Strategies in Africa: Expert Opinions of Recent Political Elections in Ghana

This study focuses on expert views of the importance of political marketing and electoral victory in African nations with an emphasis on Ghana. There is a particular focus in this article on understanding political marketing communication issues pertaining to the 2008 Ghanaian presidential elections. Following Peng and Hackley (2007 Peng , N. , & Hackley , C. ( 2007 ). Political marketing communications planning in the UK and Taiwan: Comparative insights from leading practitioners . Marketing Intelligence and Planning , 25 ( 5 ), 483 – 498 .[Crossref] , [Google Scholar]), we used “elite interviews,” dyadic depth interviews with highly regarded marketing and communication practitioners who were also MBA students at Ghana's premier business school. We also employed Butter and Collins' (1994 Butler , P. , & Collins , N. ( 1994 ). Political marketing: Structure and process . European Journal of Marketing , 28 ( 1 ), 19 – 34 .[Crossref] , [Google Scholar]) political marketing structure model in eliciting and analyzing the study findings. We found that all four of the themes discussed by Butler and Collins (1994) played a role in the defeat of the incumbent party—New Patriotic Party (NPP). Product factors was the key theme followed by organizational, process, and market factors, respectively. This paper is an important initial step in highlighting the significance of political marketing to the fortunes of political parties in Africa.     

The Influence of B to B Social Media Message Features on Brand Engagement: A Fluency Perspective

Purpose: Social media is increasingly drawing the attention and interest of business-to-business (B to B) organizations. Yet, B to B organizations remain cautious in their social media pursuits, in part based on a stated lack of understanding for best practices. The purpose of the current work is to take initial steps to address this challenge by identifying specific social media message features that influence online users’ engagement with B to B organizations.

Methodology/Approach: This work examines the Twitter feeds of the top 50 social B to B brands (as reported by Brandwatch in 2015) to examine the effects of message features (hashtags, text difficulty, embedded media, and message timing) on user engagement, captured in terms of Twitter likes and retweets.

Findings: We argue that message features that enhance fluency (e.g., images) should enhance engagement. In contrast, those that disrupt fluency (e.g., hasthags) should result in lower levels of engagement. Consistent with these predictions, we find that hashtags and text difficulty correlate to lower levels of engagement whereas embedded media in the form of images and video correlate to higher levels of engagement. Also consistent with the proposed fluency framework, we find that tweets from B to B organizations generate greater engagement on evenings and weekends.

Research Implications: This research applies a fluency lens to identify specific message features that influence online engagement. In doing so, it highlights fluency as a powerful construct for understanding the drivers of B to B social media brand engagement. More generally, this work suggests fluency as a valuable conceptual lens for developing effective B to B social media strategies. This research also speaks to the complexity of B to B social media strategies – organizations must go beyond content and platform decisions, to also consider the specific features of the message.

Practical Implications: Social media is becoming more and more important to B to B organizations and is as yet an underutilized engagement tool. The current work offers initial strategies regarding message features that business practitioners can incorporate into their content development strategies to strengthen engagement. Specifically, efforts should be made to attain high levels of fluency in B to B social media content development.

Originality/Value/Contribution of the Paper: The current work offers initial insights as to the importance of understanding not only how social media topics/content influence engagement, but also the influence of message features (e.g., hashtags, embedded media). In doing so, it highlights fluency as a novel conceptual lens for developing more effective B to B social media strategies. Finally, it draws on actual tweets from leading B to B brands to examine the proposed influence of message features on engagement.     

Commentary: Relative Presence of Business-to-Business Research in the Marketing Literature: Review and Future Directions

In this commentary we reaffirm the position taken by LaPlaca and Katrichis (2009 LaPlaca, P. J. and Katrichis, J. M. 2009. Relative presence of business-to-business research in the marketing literature. Journal of Business-to-Business Marketing, 16(1–2) [Google Scholar]) that there is an underrepresentation of business marketing research in the marketing literature. Our comments highlight the sector size of business marketing in the economy, document the degree of difference on the inherent nature of business versus consumer marketing, compare the relative representation of business versus consumer emphasis in the marketing literature with other subfields, and close by suggesting means for enhancing business marketing research.     

Extending the theory of metaphor in marketing: The case of the art gallery

Abstract

This study analyses the metaphor of spirituality in the non-profit art gallery, a metaphor overlooked in previous marketing research. Using content analysis and interviews in a single depth case study, this article illustrates how spirituality has been a staple in the non-profit art gallery over time. It was found that even though the non-profit art gallery acknowledges its use of spirituality, it has a paradoxical attitude to it. Therefore this article (a) traces the historical influences that led to the extension of metaphor in the art gallery and its relationship to marketing theory, and (b) draws on Hunt and Menon (1995 Hunt, S.D. and Menon, A. 1995. Metaphors and competitive advantage: Evaluating the use of metaphors in theories of competitive strategy. Journal of Business Research, 33(2): 81–90. [Crossref], [Web of Science ®] , [Google Scholar]) to identify deliberate and emergent strategies using metaphor in the non-profit cultural organisation.     

The coherence of inconsistencies: Attitude–behaviour gaps and new consumption communities

Abstract

Despite the growing success of well-marketed environmentally friendly products, there remains a gap between consumers' positive attitudes towards green issues and products, and their inconsistent and often conflicting consumption behaviour. Indeed, this is a challenge for social marketers seeking to advance the sustainability agenda. Therefore, this study problematises what has been conceptualised as attitude–behaviour gaps (Boulstridge & Carrigan, 2000 Boulstridge, E. and Carrigan, M. 2000. Do consumers really care about corporate responsibility? Highlighting the consumer attitude–behaviour gap. Journal of Communication Management, 4(4): 355–368. [Crossref] , [Google Scholar]), and explores how groups of consumers have re-construed such practices and their meanings through the formation of New Consumption Communities (Szmigin, Carrigan, & Bekin, 2007 Szmigin, I., Carrigan, M. and Bekin, C. 2007. “New consumption communities and the re-enabling of 21st century consumers”. In Consumer tribes, Edited by: Cova, B., Kozinets, R.V. and Shankar, A. 296–311. Oxford: Elsevier/Butterworth-Heinemann.  [Google Scholar]). Multi-sited ethnographic findings illustrate the social processes through which ethical and green forms of consumption are established and normalised. Findings also stress the importance of normative and habitual reframing through ‘ethical spaces’ (Barnett, Clarke et al., 2005 Barnett, C., Cafaro, P. and Newholm, T. 2005. “Philosophy and ethical consumption”. In The ethical consumer, Edited by: Harrison, R., Newholm, T. and Shaw, D. 11–24. London: Sage. [Crossref] , [Google Scholar]) in establishing and maintaining increased consistency in participants' consumption meanings, behaviours, and goals. Thus we re-frame attitude–behaviour gaps as coherent inconsistencies, which allows for a move away from solely trying to explain and change individual consumer behaviour, to identifying how suitable upstream and downstream (Verplanken & Wood, 2006 Verplanken, B. and Wood, W. 2006. Interventions to break and create consumer habits. Journal of Public Policy and Marketing, 25(1): 90–103. [Crossref], [Web of Science ®] , [Google Scholar]) approaches and policies can be used to facilitate more sustainable forms of consumption.     

Managing the Next Generation of Sales,Gen Z/Millennial Cusp: An Exploration of Grit,Entrepreneurship, and Loyalty

Purpose: The current study explores the latest generation of the workforce, Generation Z/Millennial cusp, and the loyalty concerns hiring managers’ experience. The authors explore how the characteristics of entrepreneurship and grit can potentially impact employee loyalty to an organization.

Methodology/approach: A content analysis using responses from 51 hiring managers and their views of the advantages and challenges of hiring from the millennial generation yielded patterns focused on grit, loyalty, and entrepreneurship.

Findings: Based on the feedback from hiring managers using a grounded theory approach, we propose a conceptual model that includes three constructs that emerged from the analysis: individual entrepreneurship orientation, grit, and loyalty. The results from the content analysis suggest grit moderates the relationship between entrepreneurship and loyalty. The conceptual model proposes sales managers can hire individuals with grit to decreased employee turnover.

Originality/value contribution: This study provides several contributions to the stream of research focused on Generation Z and employee loyalty. First, due to the changing demographic of the workforce, sales managers need to hire and retain younger sales professional that have different expectations; therefore, thinking differently of their hiring process. Second, the study creates an exploratory discussion that can help sales managers evaluate future talent for their organization. Sales managers may evaluate an applicant’s “grittiness” vs. those who are more entrepreneurial in spirit in order to retain those sales professionals long term.     

When Does Relational Exchange Matters? Social Bond,Trust and Satisfaction

Purpose: The extant literature on business-to-business relationship has shown that trust, relationship duration, and social bond are the key drivers of relationship satisfaction. Notwithstanding, studies on the examination of when and why these variables translate into successful relationship are still scarce and need further exploration. This research investigates the conditions under which trust and social bonds influence satisfaction in a business-to-business relationship.

Design/methodology/approach: The data were collected from 159 footwear producers using a structured questionnaire. Four hypotheses were developed and tested using hierarchical multiple regression.

Findings: The authors found support for all hypotheses. Social bonds and longevity are crucial in enhancing supplier relationship satisfaction. Likewise, the role of social bonds in inducing supplier satisfaction heightens over time. However, the positive association between exchange partner trustworthiness and supplier satisfaction works well only in high degree of dependence situation.

Research limitations/implications: The study was based on the report on monadic data and cross-sectional design. Future research should adopt longitudinal design to overcome the shortcomings.

Theoretical implications: This study advances the social exchange theory (SET) by elucidating the condition in which social bonds and trust fail to produce relationship satisfaction. Social bonds fail to enhance relationship satisfaction at the beginning of the relationship. Moreover, trust alone cannot be good enough to boost relationship satisfaction in a lose dependence context.

Managerial implications: This study acclaimed a relationship-driven approach as the best choice for those firms who aspire to build a good relationship with their exchange partner. Managers should understand how and when to develop a strong social relationship with their trading partners, and recognize the situations in which to deal with honest and fair business partners in an exchange relationship.

Originality/Contribution: This is one of the very few studies, which have been conducted to investigate the conditions under which the relational variable influences satisfaction in a business-to-business relationships context. It expanded the boundary of the current literature as it investigated the moderating role of relationship duration and dependence in the relationship between relational constructs and relationship satisfaction.