Customer-to-customer interactions on customer citizenship behavior

This study examines how both positive and negative customer-to-customer interactions (CCIs) simultaneously influence customer citizenship behavior. Specifically, we posit that (1) positive CCI and dysfunctional customer behavior (negative CCI) influence customers’ affection with service, (2) customers’ affection with service leads to positive customer citizenship behavior, and (3) service providers’ relationship investment moderates the relationships between positive (negative) CCI and customers’ affection with service. The study sample consisted of 362 customers at a major public recreation center in South Korea. We used latent moderated structural equation modeling and the bootstrapping technique to test the proposed hypotheses. The results offer full support for the expected differential effects of positive CCI and dysfunctional customer behavior on customer citizenship behavior, and provide important implications for research and practice.     

Firm Growth and Supply Chain Partnerships: An Empirical Analysis of U.K. SME Subcontractors

This paper examines the performance of a sample of 211 U.K.subcontractors to evaluate whether differences in how they manage their supply chain relationships are associated with differences in (sales and employment)growth rates over two consecutive 3 year periods from 1993 to 1999.We identified 34 firms that had close partnership relationships with members of their supply chain. Our empirical findings indicate that firms with inter-firm partnership arrangements with members of their supply chain experienced significantly higher growth rates. These results suggest that inter-firm partnerships may facilitate more rapid and sustained SME growth,though further research is required to determine the role played by partnerships and the extent to which this may vary to reflect differing owner-manager motivations and growth opportunities.     

Technological turbulence, supplier market orientation, and buyer satisfaction

The channel literature suggests that building a close relationship with key partners is one of the key strategies that channel members use to overcome the challenges of a changing environment. However, such a strategy may be ineffective when high technological turbulence exists in the buyer's market. This study focuses on the buyer's perspective in channel relationships and examines the buyer's satisfaction with outcomes resulting from engaging in relationships with a supplier. The results show that a buyer's performance is enhanced when a buyer develops a close relationship with a supplier whom it perceives to be market oriented but that a close relationship becomes detrimental to performance when technological turbulence increases. These findings suggest that managers need to be aware of the effect of technological turbulence and be alert in managing close relationships even with market-oriented suppliers.     

Effects of local fiscal policy on firm profitability

For decades, scholars and policy-makers have been interested in how fiscal policy influences entrepreneurship. Until now, research has focused on fiscal policy at the federal or regional level and used macro-economic outcome measures. Considerably less attention was given to how municipal governments can influence economic outcomes at the micro level. The present study examines the effect of municipal taxes, spending and tax compliance costs on firm profitability within the Flemish hospitality industry. This is an interesting research setting, since Flemish municipalities have far-ranging fiscal autonomy which has resulted in a proliferation of local taxes, many of which are specific to the hospitality industry. The findings reveal that local taxes have a negative impact on firm profitability, while aggregate public spending has a positive influence. The tax effect is economically relevant and exceeds the public spending impact. Finally, we find no impact of compliance costs from local taxes.     

Social networks and marketing cooperation in entrepreneurial clusters: An international comparative study

This research examines factors that influence the development of marketing cooperation among cluster-based firms in different regions in the world. Theorists have consistently demonstrated the role and importance of economic externalities, such as knowledge spillovers, within industrial clusters. Less research attention has been paid to the investigation of marketing-based externalities, though it has been suggested that these may also accrue from geographical agglomeration. The study focus is on the development of joint marketing activities between firms operating in a single industry sector, located in close proximity. The results suggest that social networking is important in facilitating inter-firm cooperation in marketing activities. The study also explores whether the levels of inter-firm cooperation differs between countries with distinctly different levels of social collectivism. Interestingly, this study finds few significant differences in marketing cooperation among cluster-based firms from Scotland and Chile.     

Moments of truth in gift exchanges: A critical incident analysis of communication indicators used to detect gift failure

This research examines how gift recipients communicate gift failure to givers, whether through paralinguistic indicators, direct verbal comments, and consumption (or not) of the gift. Critical incident reports identified specific communication indicators that signaled displeasure with the gift and measured the impact of these indicators on important exchange outcomes. Overall, failed gifts have a greater impact on future exchanges than on relationship quality. However, failure to appreciate the gift can have a significant negative effect on relationships. Gift failures between friends, co‐workers, and in‐laws are more susceptible to relationship harm than those involving close kin, like parents, spouses, and children. © 2006 Wiley Periodicals, Inc.     

The effect of communication practice on deviance among Korean salespeople: The mediating role of intrinsic motivation

Previous research on salesperson behavior largely focused on positive and productive behavior and less on the negative side of the salesperson behavior. This research examines the effect of leader–member communication exchange on salesperson workplace deviance and the mediating role of trust and intrinsic motivation in this relationship. Data were collected from 469 salespeople in the Korean banking industry. Results of the structural equation model show that indirect and bi-directional communication between manager and salesperson decrease salesperson workplace deviance by increasing trust and motivation. However, communication frequency and mood have no significant effects on salesperson trust. Finally, motivation (achievement, status, and communion striving) plays a mediating role in the negative relationships between salesperson trust and his/her deviant behavior toward specific targets (organization, coworker, and customer).     

The effect of language use on the financial performance of microfinance banks: Evidence from cross-border activities in 74 countries

This multi-year study examines the relationship between financial performance and language use, observing 405 partnerships between microfinance banks and their international financial partners in 74 countries. Drawing on language research in international business, we find that microfinance banks based in English-speaking, French-speaking, and Spanish-speaking countries have higher performance. Furthermore, the linguistic distance between the home country of a microfinance bank and the home country of its international partner(s) is negatively related to its financial performance. Our large-scale study confirms the effect of language use on organization-level financial performance and extends research on language in multinationals from intra-firm to inter-firm relationships.     

A Framework for Supplier Relationship Management (SRM)

ABSTRACT

Vertical co-ordination of business-to-business relationships figures prominently as an effective response to inter-firm dependence. Current empirical works based on transaction costs economics, however, have scantily examined whether the alignment of inter-firm coordination really serves governance efficacy and lowers transaction costs. This study focuses on the transaction costs efficacy of vertical co-ordination in industrial purchasing relationships. Building on transaction costs arguments and related works within marketing and contingency theory, the author explores whether vertical co-ordination is an effective means to adapt to technologcal and economic inter-firm ties.

This research examines in particular possible impacts the buyer's manufacturing technology and deployment of specific assets on the governance efficacy of vertical co-ordination. Empirical findings from a survey of 171 industrial buying firms demonstrate that when asset specificity is substantial, increased vertical co-ordination reduces ex post transaction costs. Further, the governance efficacy of inter-firm co-ordination turned out to be more evident in purchasing relationships among buyers with flexible manufacturing technology (e.g., order based industries) than was the case in process production with high workflow rigidity.     

Order frequency and the co-ordination of industrial purchasing relationships

Transaction cost analysis (TCA) includes the frequency of exchange as a significant dimension of the transaction, and order frequency is expected to influence the efficacy of inter-firm co-ordination arrangements. To date, transaction frequency has received little attention in empirical TCA-studies. This research focuses in particular on the frequency of inter-firm exchange and how it affects the calibration of inter-firm co-ordination efforts in supplier–buyer relationships. Empirical findings from a survey of 161 industrial purchasing relationships indicate that increased transaction frequency gives rise to administrative economics of scale, and there is a positively and logarithmic-shaped association between the order frequency of standardised items (low asset specificity) and inter-firm co-ordination efforts.Furthermore, increased asset specificity seems to improve the economics of specialised inter-firm co-ordination efforts when the transaction frequency increases. As asset specificity becomes substantial, the marginal co-ordination efforts of increased inter-firm exchange are significantly reduced. This research provides some new insight into the economics of inter-firm organisation and supports the TCA-assumption that the frequency of inter-firm exchange improves the utilisation of specialised co-ordination arrangements in business to business relationships.     

Deception and defection from ethical norms in market relationships: a general analytic framework

Market relationships built on trust and governed by commonly accepted ethical norms are generally viewed as economically positive and beneficial to both parties; however, such relationships are occasionally the situs of a variety of unexpected and ethically questionable behaviours. This study examines the narratives provided by participants who share their experience as an exchange partner in a market relationship or as a close observer of an exchange partner in a market relationship to identify the use of short‐term deceptions and ethics defections in managing these relationships. The data demonstrate a number of instances in which one exchange partner is willing to deceive another. Situations identified include deceiving current customers, new customers, current suppliers, governmental bodies, and employees and managers for the purposes of: protecting an existing relationship, pursuing a new relationship, ensuring product or service quality, and exerting control over a relationship. This research develops a general analytic framework for the occurrence of deception and defection from ethical norms in market relationships from elements of the study participants' narrative reports. This framework can be used by future researchers to design studies that examine the specific antecedents of these behaviours.     

企业间关系质量：渠道影响策略的权变模型

文章基于渠道行为与嵌入理论,探讨了营销渠道中的经济型影响策略（组织间强制性影响策略和非强制性影响策略）与社会型影响策略（组织间人际影响策略）对企业间关系质量的影响。通过对152家制造商的调查数据分析发现：企业在治理渠道关系时,使用组织间强制性影响策略会降低它与合作伙伴之间的关系质量;使用组织间非强制性影响策略对它与合作伙伴之间关系质量的影响不显著;使用组织间人际影响策略则有助于提高它与合作伙伴之间的关系质量。此外,组织间人际影响策略还会减弱组织间强制性影响策略对企业间关系质量的负面影响。     

Two-sided effects of customer participation: roles of relationships and social-interaction values in social services

This research aims to extend customer participation and value co-creation theory to the social-services sector, where consumer choice is restricted. This study examines the relationship between the value creation of participation and customer satisfaction in social services. The perceived value corresponding to different types of relationships was divided into company–customer (relationship value) and customer–customer (social-interaction value). To test hypotheses, data were collected via an online survey of customers using child-care centers in Korea. The participating customers had children who attended day-care centers, and the proposed hypotheses were tested using structural equation modeling. Empirical result shows that customer participation as information resource and customer participation as co-developer affect the relationship and social-interaction values. The most important and interesting result is that the relationship value has a positive effect, but the social-interaction value has a negative one on customer satisfaction. These results suggest that customer participation in social services has both positive and negative outcomes, which means that the social-interaction value of co-creation does not always lead to customer satisfaction in a choice-limited service such as child care. This study explains a counterintuitive and interesting relationship between the social-interaction value and customer satisfaction by validating the moderating role of social network service-based interaction intensity in child-care services.     

Antecedents of satisfaction in a marketing channel

Because of the importance of satisfaction to inter-firm relationship quality and thus inter-firm relationship continuity, this research investigates previously unstudied antecedents of satisfaction in a marketing channel. These antecedents include the attractiveness of alternative relationships, relationship investment, and switching cost. The research also tests reciprocal relationships between satisfaction and alternative attractiveness, and between satisfaction and voice. This helps suggest answers to questions such as, does satisfaction reduce alternative attractiveness as it is generally believed, or does alternative attractiveness reduce satisfaction? Many of the study variables were antecedents of satisfaction in the study context. Together they explained almost half of the variation in satisfaction. Nevertheless, alternative attractiveness, relationship investment, and voice were the most important antecedents of satisfaction in the study. The paper concludes with suggestions for the cultivation of customer satisfaction in the study context.     

Policy Interventions for Industrial Network Formation: Contrasting Historical Underpinnings of the Small Business Policy in Japan and the United States

This article examines the role of policies in promoting inter-firm networks, by contrasting policy frameworks for small businesses in Japan and the United States. While the policies in two countries share similarities in many respects, different historical underpinnings have led small business policies to play different roles in economies of Japan and the United States. This paper analyzes how Japan's small business policy came to encourage inter-firm collaborations over the course of its history, while policies in the United States have not had explicit orientation toward the development of inter-firm networks until the 1990s.     

The Effect of Agency Creativity on Campaign Outcomes: The Moderating Role of Market Conditions

This study examines the effect of agency creativity on campaign outcomes as moderated by different levels of market dynamism and competitive intensity. Using data from matched interviews of advertisers and agency creative teams in China, the study reveals complicated relationships among agency creativity, market conditions, and campaign outcomes. The impact of agency creativity on campaign outcomes is positive but the impact of excessive creativity is negative, and agency creativity is more powerful in high rather than low competitive intensity and in low rather than high market dynamism. Theoretical and managerial implications as well as directions for future advertising creativity research are derived from findings of the study.     

The role of contractual governance flexibility in realizing the outcomes of key customer relationships

An entrepreneurial firm's relationships with customers, suppliers, investors, universities, and other organizations have a significant and long-lasting impact on the survival and success of the firm. Yet, little research has focused on how the management of these relationships influences outcomes for entrepreneurial firms.This paper focuses on the customer relationships of new, technology-based firms (NTBFs). We aim to contribute to the literature on the governance of exchange relationships between NTBFs and their customers. Further, in so doing, we seek to explore the implications of such governance for the performance of new firms.Because of their small size, their “liabilities of newness,” and their highly specialized, knowledge-intensive resources, NTBFs are able to maintain only a limited number of close customer relationships. Consequently, NTBFs often become highly dependent on one or a few of their customers. In this study, we focus on the relationships between NTBFs and their single largest customers. We refer to the customer that accounts for the highest proportion of an NTBF's total revenue as the “key customer.”Strategic management literature, resource dependence theory, and transaction cost economics emphasize the risks associated with being dependent on an exchange relationship, focusing on the opportunistic use of power by the exchange partner. These perspectives suggest that firms can minimize their external dependencies and protect themselves against opportunism through the use of contracts. The present paper expands this view by also examining how flexibility in exchange governance may unlock potential benefits or dampen potential dangers that an NTBF faces in its commitment to its single largest customer, e.g., sharing the costs and risks of R&;D with the customer, improving the reputation of the NTBF, and realizing savings in sales and marketing costs. We examine the extent to which the realization of the potential positive and negative outcomes of a high level of dependence are moderated by the flexibility of the exchange partners' attitudes toward contractual agreements. The research question that we seek to answer is: Does the manner in which a contractual agreement is implemented affect the outcomes of a customer relationship for an NTBF at high levels of exchange dependence on the key customer?We develop a set of hypotheses that examines how the governance of the key customer relationship affects the NTBF's new product development, reputation, and sales costs when exchange dependence on the key customer is high. We use the term “contractual governance flexibility” to refer to the extent to which the exchange partners are willing to adjust to changes in the relationship instead of relying on the contract. We test the hypotheses with survey data from 195 NTBFs in the UK. The results of regression analyses reveal that contractual governance flexibility moderates the relationship between exchange dependence and outcomes. In relationships with a high level of exchange dependence, greater contractual governance flexibility was associated with greater new product development and sales cost advantages. No such benefits were realized for relationships in which exchange partners relied heavily on the contract.These findings are important because they suggest that by relaxing formal contractual mechanisms governing a relationship, NTBFs can derive benefits from key customer relationships that are characterized by a high level of dependence. Our findings suggest that at high levels of exchange dependence on key customers, NTBFs can benefit when greater contractual governance flexibility is present. Our data indicated that, interestingly, NTBFs tend to do just the opposite: at higher levels of exchange dependence, NTBFs are inclined to rely increasingly on the contract. By so doing, they may fail to realize the potential benefits of the relationships, such as gaining access to complementary resources and reducing costs. These outcomes, which may be derived from dependent exchange relationships by means of contractual governance flexibility, can have a significant influence on the long-term development and competitive advantage of an entrepreneurial firm.     

Relationship duration and buyer influence in just-in-time relationships

Heavy investments tailored to a specific JIT-relationship highlight the trade-off between improved value-added and inter-firm dependence in industrial purchasing relationships. The main reason for dedicating specific investments in a JIT-relationship is to enhance production efficiency and logistics performance. On the other hand, such investments induce substantial inter-firm dependence and high switching costs, which must be offset by stronger inter-firm co-ordination. Using transaction costs analysis (TCA) and relational contracting theory (RCT), the authors have examined whether the buyer's influence on a JIT-relationship is contingent upon the length of that relationship. Data from a survey of 165 industrial purchasing relationships demonstrate that as a JIT-relationship evolves over time, inter-firm co-ordination tends to increase reliance on relational governance. When the level of the JIT-investment is substantial, hierarchical buyer control relaxes significantly as the length of the relationship increases.     

Is globalization what it’s cracked up to be? Economic freedom,corruption, and human development

This paper examines the effect of economic globalization on human development and argues that the relation between economic globalization and human development is mediated by economic freedom and corruption. Findings suggest that economic globalization affects economic freedom positively and corruption negatively. In turn, economic freedom has a positive effect and corruption has a negative effect on human development. All relations are in the hypothesized directions and significant. Research, business, and public policy implications as well as directions for future research are presented.     

In good company: The role of personal and inter-firm networks for new-venture internationalization in a transition economy

Although personal and inter-firm networks are critical for the survival and growth of entrepreneurial ventures in transition economies, their role in new-venture internationalization has been understudied. Exploring the internationalization of entrepreneurial ventures (n = 623) in Bulgaria, we find that domestic personal networks have a positive effect on internationalization. Firm age negatively moderates the effect of inter-firm networks: the earlier the new venture engages in inter-firm collaboration, the higher the degree of its internationalization. Internationalization is positively associated with new venture size and varies by industry. Implications for managerial practice and public policy are discussed.