Perceptions of IMC and organisational change among agencies in South Africa

This paper reports on the development of Integrated Marketing Communications (IMC) in an emerging market, South Africa. It also deals with the organisation of advertising agencies in an IMC environment. A brief overview of IMC is given as well as a review of the organisation of agencies. The study consisted of in-depth interviews of 20 senior advertising agency executives. The results indicate that most agencies are developing their IMC strategies and that it is growing in importance in South Africa. Some recommendations are proposed to enable agencies to become more effective in future.     

Did the goodwill accounting standard impose material economic consequences on Australian acquirers?

This research explores the empirical association between takeover bid premium and acquired (purchased) goodwill, and tests whether the strength of the association changes after the passage of approved accounting standard AASB 1013 in Australia in 1988. AASB 1013 mandated capitalization and amortization of acquired goodwill to the income statement over a maximum period of 20 years. We use regressions to assess how the association between bid premium and acquired goodwill varies in the pre‐AASB and post‐AASB 1013 periods after controlling for confounding factors. Our results show that reducing the variety of accounting policy options available to bidder management after an acquisition results in a systematic reduction in the strength of the association between premium and goodwill.     

Misleading Inferences from Panel Unit Root Tests: a Reply*

Ford et al. (this issue) point out that the SURADF panel unit root test may be sensitive to panel composition. This reply shows that they overstate the case since they focus on a short time series of 44 observations. Type II errors are much more likely in this environment so that inconsistent conclusions may arise for individual panel members across differently composed panels. We demonstrate that this problem becomes much less likely when the number of time‐series observations increases.     

Problem bank loans, conflicts of interest, and institutions

I consider problem bank loans as the outcome of decisions made by banks in the dual role they serve as financial intermediaries. This dual role necessarily introduces conflicts of interest that can lead to bank mismanagement and consequently problem bank loans. Because bank activities take place within the tangible and intangible structure of institutions, institutions may affect the quality of bank loans. I consider legal, political, sociological, economic, and banking institutions and explore their contribution to problem bank loans. I find support that a variety of institutions impact the share of bank assets that are non-performing.     

The Precursor Role of Cooperation,Coordination, and Relationship Assets in a Relationship Model

ABSTRACT

Purpose: The primary purpose of this study is to test the importance of activity-oriented precursors in a relationship model. This study supports the theoretical view that firms create trust and knowledge through activities and these activities make a commitment decision less risky (Johanson & Vahlne, 2009). The secondary purpose of this study is to collect and examine data from interorganizational relationships in both Sweden and the United States. By including data from two countries, results will be more generalizable. Results can also lead to several managerial implications.

Methodology/approach: This study focuses on a sample of distributors from both the United States and Sweden. One hundred sixty-one usable surveys were returned from the U.S. survey, for a response rate of 27%. One hundred twenty-four usable surveys were returned from the Swedish survey, for a response rate of 21%. The PLS-SEM method was used to examine the model’s constructs.

Findings: Similar to past research results show that trust and commitment have a direct positive influence on satisfaction, and that trust also has a direct positive influence on commitment. However, this study uniquely supports four out of six newly tested hypotheses. Both cooperation and relationship assets have a direct positive influence on commitment. Cooperation has a direct positive influence on trust and commitment. Relationship assets have a direct negative influence on trust but a direct positive influence on commitment. Surprisingly, two hypotheses were not supported: Coordination did not have a significant relationship with either trust or commitment.

Research implications: Managers who want to achieve a satisfactory relationship based on trust and commitment need to prioritize their attention toward cooperation. They should also be aware that participation in joint activities (i.e., coordination and relationship investments) does not guarantee higher levels of trust or commitment in the relationship. It is the quality of the joint activities and the how dependent firms are on each other and not just participation in joint activities that are likely to create higher levels of trust or commitment. The quality of coordination and manageable levels of dependence may counteract the higher costs associated with joint activities compared to the costs associated with cooperation. Managers may be wise to not make major commitments to other firms unless high quality joint activities have created knowledge and trust between firms. Originality/value/contribution: The model adds the joint activity-oriented antecedents associated with collaboration which is essential to a successful relationship. Because of the high failure rate of collaboration may be due to cooperation and coordination failures and because these two constructs are underspecified in interorganizational research, this study is unique in examining activity-oriented antecedents in a trust/commitment model of relationship satisfaction in a cross-cultural context (i.e., with U.S. and Swedish samples).     

Does Lecture Capturing Impact Student Performance and Attendance in an Introductory Accounting Course?

ABSTRACT

The study empirically examines the interplay between lecture capturing viewership, performance and attendance for students in the Middle Eastern country of Qatar. The sample consists of 254 students enrolled in an introductory accounting class either in the Fall semester or in the Spring semester. We show a weak positive relationship between lecture capturing and performance, especially in the presence of other variables such as GPA, attendance, gender and seniority. However, we do not find that lecture capturing reduces attendance. Actual performance results are contrasted with students’ perception of the usefulness and effectiveness of lecture capturing. Survey responses reveal that, overall, students attribute a great deal of credit to this pedagogical resource. They stated that lecture capturing clarifies concepts discussed in class, assists in studying for exams, enhances exam results and increases interest in the course. However, the majority of low-performing students believe lecture capturing to be a substitute for attending traditional lectures.     

BIG Writing: The Fundamental Discipline of Business Writing

BIG Writing presents a strategy for creating a culture of disciplined business writing within a large organization. In today's service‐oriented economy, virtually everyone is doing some form of writing on the job. Yet there is no organized effort to train people in this important skill. Universities don't do it, nor does it typically happen on the job except among a handful of branding specialists—and most books on business writing focus either on grammar and style or how to overcome writer's block. BIG Writing addresses the need for guidelines on business writing as it is actually practiced in the workplace. The article describes how organizations should connect their top‐level messages—their statements of mission, business strategy, and value proposition—with more routine writing activities such as annual reports and sales letters. At a time when CEOs and CFOs are held accountable for the accuracy of every line item in their financial reports, companies are responding by implementing complex systems of financial controls. BIG Writing can help senior management secure better control of its core messages by defining the way in which they are created and disclosed.     

Setting the stage for creative new products: Investigating the idea fruition process

This article attempts to understand the idea fruition process, or the fuzzy front-end set of activities that an organization may informally engage in before it adopts a formal process for developing a new product. The authors propose that the idea fruition process consists of three sub-processes: idea creation, idea concretization, and idea commitment. They also propose and test the individual and organizational factors that influence the idea’s degrees of creativity, concretization, and commitment to further the understanding of the phenomenon and, thus, boost the creation and harnessing of worthwhile ideas in organizations. Astra Zeneca Janice Griffiths-Hemans (jaiuce.griffith-hermans@astrazeneca.com) holds a Ph.D. in business administration (marketing strategy and new product development) and a master’s in market research from the University of Georgia, an MBA in marketing from the University of Miami, and a bachelor of science degree in pure and applied chemistry from the University of the West Indies, Jamaica. Janice is currently a Senior Manager of Consumer Insights with Astra Zeneca, Wilmington, Delaware. Rajiv Grover (rgrover@terry.uga.edu) is the head of the department and holder of the Terry Chair of Marketing at the Terry College of Business, the University of Georgia in Athens, Georgia. He has received several honors for his research and teaching efforts—the O’Dell award for the Best Paper in theJournal of Marketing Research and the Hugh O. Nourse Outstanding MBA Teacher Award. He has authored the bookTheory and Simulation of Market-Focused Management, published by Dry den Press. He is currently editingThe Handbook of Marketing Research: Do’s and Don’ts, which will be published by Sage Publications. He received his Ph.D. from the University of Massachusetts at Amherst in 1983.