Are analysts' cash flow forecasts useful?

This study provides evidence that the cost of equity capital decreases with the number of analysts who issue both cash flow and earnings forecasts (cash analysts). The evidence also shows that cash analysts reduce information asymmetry and predict long‐term earnings more accurately than analysts who issue only earnings forecasts. Taken together, these findings suggest that cash analysts provide market participants with high‐quality information and, as a result, firms benefit from cash analyst coverage in the form of a reduced cost of equity capital.     

Value Co-Creation Processes—Early Stages of Value Chains Involving High-Tech Business Markets: Samsung–Qualcomm Semiconductor Foundry Businesses

Purpose: This research aimed to identify both the specialized resources and competences for value co-creation when the value co-creation phenomenon is extended to the early stage of the value chain. Further, it proposes a framework that can analyze the value co-creation process in the high-tech business-to-business (B-to-B) market.

Methodology/approach: The research methodology was based on building a theory from a case study. The qualitative data was coded based on the grounded theory coding after collecting data from multiple sources.

Findings: Four critical resource types (financial resources, knowledge resources, efficiency resources, and intellectual resources) and five competence types (relational capability, collaboration capability, strategic capability, innovation capability, and managing capability) were constructed as the principal factors for value co-creation at the early stage in the value chain within the high-tech B-to-B market. Among the four resources and five competences, intellectual resource and strategic capability associated with value co-creation were unique findings in our case research.

Research implications: Our results provided new insights, which the value co-creation can be extended to the early stages in the value chain, such as the research and development (R&D) stage, in the high-tech B-to-B market, whereas extant value research was more focused on the late stages of the value chain. The reciprocal value co-creation process, which used four resources and five competences of both the supplier and customer, was proposed as an integrated framework to co-create value at the early stage of the value chain within the high-tech B-to-B market.

Practical implications: A supplier’s R&D, marketing, manufacturing, planning departments and the customer can utilize the defined resources as well as competences at different stages of the value chain in order to co-create value and improve their performance. In particular, the marketing department of the supplier needs to turn their eyes to the early stages in the value chain so as to seek a value co-creation strategy.

Originality/value/contribution: A value co-creation strategy was sought from a different perspective, extending from a late stage to an early stage in the value chain of the high-tech B-to-B market. The integrated research framework, combining resources and competences of the supplier and customer, was established to analyze the value co-creation phenomenon.     

Paying before consuming: Examining the robustness of consumers’ preference for prepayment

Prior research on consumers’ preference for timing of payment suggests that consumers prefer to prepay for certain kinds of purchases (e.g., vacations) and postpay for others (e.g., washer dryers). This research extends this finding by first comparing preference for timing of payment for products that vary by type (hedonic vs. utilitarian) and durability (nondurable vs. durable) to reveal that it is only hedonic-nondurable products that elicit a preference for prepayment (study 1). The two studies that follow examine the robustness of the prepayment preference by (1) varying the favorability of the transaction (study 2), and, (2) by eliminating the choice of payment timing from the transaction (study 3). Results reveal that the preference for prepayment for hedonic-nondurable goods is robust when transaction characteristics are favorable but shifts when transaction characteristics are unfavorable. Furthermore, when the choice of payment timing is not offered, consumers become indifferent towards when they prefer to pay for hedonic-nondurable products. The implications of these findings for marketers and retailers are discussed.     

Daily outfit satisfaction: the effects of self and others' evaluation on satisfaction with what I wear today

This study investigated the satisfaction of the outfit which an individual chose to wear for the day by examining how self and others' evaluations influenced the outfit satisfaction and the intention to re‐wear. In addition, moderator variables (body satisfaction and body surveillance) that affected the effect of the evaluative factors upon satisfaction and behavioural intention were also examined. An online‐survey was conducted and the sample size used in the analysis was 349 in total. Using SPSS 18.0 and AMOS 18.0, structural equation modeling analysis and one‐way analysis of variance were implemented for hypothesis testing. The results showed that self‐evaluation as a perception of appropriateness of the outfit for that day and others' positive feedback increases outfit satisfaction. Appropriateness perception also had a significant impact on the intention to re‐wear. However, feedback from others on one's outfit did not have a significant direct effect on behavioural intention. Three‐way ANOVA was performed to verify the impact the feedback from others, body satisfaction, and body surveillance had on the respondent's intention to re‐wear, and a three‐way interaction effect was statistically significant. While individuals with high body satisfaction were likely to be confident about their appearance overall, the feedback from others did not impact their satisfaction. Individuals with low body satisfaction were influenced by others' feedback on their outfit. Individuals with high levels of body surveillance who sensitively monitored others' feedback especially displayed decreased intention to re‐wear when feedback from others on their outfit was negative. This research contributed to the deeper understanding of consumer's clothing behaviour at the post‐purchase stage. Enhanced understanding of lasting satisfaction and benefits pursued throughout the time while using the product would be essential in developing consumer‐centric marketing strategies.     

The Role of Buyer Trust in Outsourced CRM: Its Influence on Organizational Learning and Performance

Purpose: Company outsourcing of customer relationship management (CRM) functions is increasing (Kalaignanam and Varadarajan 2012). Although outsourcing CRM may provide financial benefits, the tasks of developing and utilizing the complex, cross-functional processes needed to gain enhanced customer knowledge from CRM may be more difficult when some or all CRM activities are outsourced. Trust in the information provided by the outsourced CRM supplier is vital. In this study, the authors examine the influence of buyer trust in its outsourced CRM supplier on cross-functional learning processes and firm performance within the buyer firm.

Methodology: Data were collected from a survey of marketing managers in 221 firms. LISREL 9.2 was used to assess convergent, discriminant, and nomologic validity using the two-step approach (Anderson and Gerbing 1988). Convergent and discriminant validity were evaluated in the measurement model phase, whereas the structural model provided an appraisal of nomologic validity.

Findings: The results provide evidence of buyer firm trust in the outsourced CRM supplier playing a critical role in the buyer firm’s success with information sharing, and both trust and information sharing strongly influencing information interpretation and information access in the buyer firm. All three organizational learning processes positively influence buyer firm customer satisfaction/retention and market performance.

Research implications: An important area for future research is the possibility of varying levels of trust needed for success with outsourced CRM depending on the buyer firm’s goals for its CRM system. It is possible that the simpler CRM functions could be outsourced effectively through efficiency strategies that do not require significant levels of trust, whereas the more complex CRM activities that affect organizational learning require more stringent coordination and inter-organizational development. Varadarajan’s (2009) cost versus quality classifications of outsourcing could be a useful starting point for this type of analysis. Considering the finding in this study that information sharing is critical for information interpretation and information access in the buyer firm, another area for future research is possible differences in the extent of information sharing required by firms that are outsourcing CRM versus those that conduct the CRM function in-house. One starting point could be possible differences in relevance among Maltz and Kohli’s (1996) factors affecting information dissemination.

Practical implications: For effective use of CRM data, it is important for buyer firms to develop trust in their outsourced CRM supplier. Managers can assist in this by communicating qualifications of the outsourced CRM supplier, such as any trade-specific certifications, awards, information about the supplier’s number of years in business, and examples of other companies the supplier has assisted. Managers can also help employees develop confidence in the supplier’s integrity by sharing the supplier’s code of ethics and serving as a champion for the supplier. In addition, firms engaged in outsourced CRM are encouraged to develop reward systems that motivate employees to build relationships with their counterparts in the supplier firm, and it would be useful for the buyer firm to help its employees understand the importance of the CRM outsourcing relationship to the buyer firm’s success. Finally, it is important for management to provide opportunities for interaction between the outsourcing partner and key buyer firm employees who will use the CRM data, to encourage effective processes in information sharing, information interpretation, and information access.

Contribution of the article: This article addresses the significance of outsourcing the CRM function and provides evidence that buyer trust in its CRM supplier is a critical factor in its utilization of CRM data for organizational learning and firm performance. It also demonstrates that effective sharing of information, cross-functional integration of customer data, and CRM information accessibility are critical for firm success.     

Applying an extended theory of planned behavior to examine state-branded food product purchase behavior: The moderating effect of gender

ABSTRACT

The purpose of this study was to use an extended model of the theory of planned behavior to investigate the antecedents which lead to consumers’ purchase of state-branded food products. Relationships among attitude, subjective norm, perceived behavioral control, health-consciousness, intention to purchase, and actual purchase were examined. In addition, the moderating role of gender on consumer purchasing was assessed. The hypothetical model was empirically tested using data collected via Amazon Mechanical Turk (Mturk). Results implicated that consumers’ attitude, subjective norm, and perceived behavioral control of purchasing state-branded products significantly predicted their intention to purchase, and consumers’ intention to purchase significantly predicted their actual purchase of state-branded products. The relationship between health-consciousness and intention to purchase, however, was not found. Gender differences were found only between consumers’ perceived behavioral control of state-branded purchasing and their intention to purchase. Implications for marketers, farmers, and restaurant owners are provided.     

The determinants of federal and state enforcement of workplace safety regulations: OSHA inspections 1990–2010

We explore the determinants of inspection outcomes across 1.6 million Occupational Safety and Health Agency (OSHA) audits from 1990 through 2010. We find that discretion in enforcement differs in state and federally conducted inspections. State agencies are more sensitive to local economic conditions, finding fewer standard violations and fewer serious violations as unemployment increases. Larger companies receive greater lenience in multiple dimensions. Inspector issued fines and final fines, after negotiated reductions, are both smaller during Republican presidencies. Quantile regression analysis reveals that Presidential and Congressional party affiliations have their greatest impact on the largest negotiated reductions in fines.     

From Voids to Sophistication: Institutional Environment and MNC CSR Crisis in Emerging Markets

Why do multinational corporations (MNCs) frequently encounter corporate social responsibility (CSR) crises in leading emerging markets in the new century? Existing research about institutional impacts on MNC CSR has developed a void-based account about how the flawed institutional system allows misdeeds to happen. But the fact that such misdeeds have turned into increasing CSR crises in the new century along with institutional change is rarely taken into account. This paper combines studies of institutional voids, institutional entrepreneurship, and stakeholder theory to develop a concept of institutional sophistication, which refers to both the top-down maturation of the regulatory system that standardizes firm behavior and the bottom-up diversification and intensification of grassroots initiatives that redefine stakeholder membership. Based on this concept, we developed a framework to comprehensively demonstrate how both institutional voids and sophistication drive the MNC CSR crisis in leading emerging markets. Empirically, we established an original database that includes 309 publicized CSR crises encountered by major foreign MNCs in China, India, and Russia, 2000–2011. Through a content analysis, the paper reveals six common sophistication processes that drive the MNC crisis across contexts and also specifies stakeholder strategies that make these processes happen and vary by social problems and national contexts. We also discussed the value of studying corporate social irresponsible behavior in understanding the institution–MNC relationship.     

Do young firms owned by recent immigrants outperform other young firms?

This study compares the performance of new businesses owned by recent immigrants with that of other new firms. It addresses an on-going unresolved discussion in the academic and professional literatures by drawing on a large sample of Canadian business owners whose firms began trading between 2000 and 2004 and using taxation data to track 2004 to 2008 performance. The results provide empirical evidence that young immigrant-owned exporter firms outperformed young domestically-founded firms whether or not they exported; however, immigrant-owned young enterprises that did not export underperformed other young firms. Owner-level factors such as gender, growth intentions and experience also influenced growth performance among young SMEs. The results provide evidence that suggests that immigrants have resources such as access to international networks that provide competitive advantage over non-immigrant owners that export or aspire to export. Not all immigrant business owners, however, are able to lever such advantages. The implications of the findings for research and policy are discussed.     

The moderating effects of gender and inside versus outside sales role in multifaceted job satisfaction

Two key trends in B2B sales organizations are increased representation by females in sales roles and a shift toward more inside sales positions than has been true in the past. Prior work on multifaceted job satisfaction among salespeople has not fully taken these elements into account. This study furthers the literature by examining the moderating role of gender and inside versus outside sales role on multifaceted job satisfaction. Results provide opportunity for provocative discussion among sales organizational leadership of more customized approaches to improve the satisfaction of the sales force.