Managing the transfer of capabilities within multinational corporations:: the dual role of the subsidiary

In this article, the relation is explored between the external technical embeddedness of the subsidiary, its assigned role, and capability development in the MNC. It is argued that assigning roles of responsibility or mandates to certain subsidiaries can effect integration of subsidiary-developed knowledge in the MNC. Departing from literature on the market-as-networks perspective and writings from recent years on subsidiary roles, hypotheses are developed and a model outlined. The model describes a significant link between the external technical embeddedness of the subsidiary and its assigned role within the MNC, and a significant relation between the subsidiary's assigned role and its importance for other units’ capability development. The model is tested on a sample of 97 subsidiaries using the LISREL 8.3 statistical method. The final model implies that by assigning specific roles to different subsidiaries, headquarters can exploit the knowledge developed in the external environments of these subsidiaries.     

Issues in the estimation and application of latent structure models of choice

Our paper provides a brief review and summary of issues and advances in the use of latent structure and other finite mixture models in the analysis of choice data. Focus is directed to three primary areas: (1) estimation and computational issues, (2) specification and interpretation issues, and (3) future research issues. We comment on what latent structure models have promised, what has been, to date, delivered, and what we should look forward to in the future.     

The Impact of Non-Normality and Estimation Methods in SEM on Satisfaction Research in Marketing

This paper discusses consequences of violating the normal distribution assumption imbedded in Structural Equation Modeling (SEM). Based on real data from a large sample customer satisfaction survey we follow the procedures as suggested in leading textbooks. We document consequences of this practice and discuss its impact on decision making in marketing.     

Consequences of ambivalence on satisfaction and loyalty

The key objective of this study was to understand the consequences of subjective ambivalence on customer satisfaction, loyalty, and the satisfaction–loyalty relationship. The conceptual and theoretical discussions were derived largely from recent research in social psychology and integrated with marketing literature on satisfaction and loyalty. Given that product evaluations are typically positive and extreme, these findings indicate a negative relationship between ambivalence and satisfaction. Even though a great deal of the variance in ambivalence is shared with satisfaction, ambivalence did prove to have an independent and direct effect on loyalty. Ambivalent consumers are not only less loyal because they are less satisfied, but for other reasons, as well. Ambivalence was not found to moderate the satisfaction–loyalty relationship. The results of the study underscore the importance of taking ambivalence into consideration when measuring satisfaction and modeling satisfaction–loyalty relationships. © 2005 Wiley Periodicals, Inc.     

A combination of differentiation and consolidation theory and risk-benefit analysis to examine decisions on mastitis prevention

Abstract

Mastitis infections cause severe pain in dairy cows and are the most costly illness to farmers. This study combined differentiation and consolidation (Diff-Con) theory with risk-benefit analysis to explore how risky decisions are perceived and justified after a decision has been taken. More specifically, using survey data from 428 Swedish dairy farmers, their decisions about adopting preventive measures to control mastitis (mastitis control options, MCO) in dairy herds were examined. The analyses included group comparisons with non-parametric rank tests and use of both ordinary least squared regression and seemingly unrelated regression analysis to examine how prior adoption of MCO affects farmers’ attitudes to the MCO. The results showed that MCOs already adopted were rated higher in perceived riskiness (if not implemented) and in expected benefit (for illness prevention) than non-adopted MCOs. Having made the decision to implement a strategy increased the likelihood of that decision being perceived as more beneficial (reducing mastitis) and risky (in terms of disease increase if not implemented), irrespective of the combination of strategies used on the farm, during the post-consolidation stage. No difference in perceived illness prevalence could explain the farmers’ rating of the MCOs. These findings suggest that there may be a path dependency in farmers’ decision-making with respect to MCO. This implies that novel MCOs may have difficulty in achieving wider implementation. These results have implications for the development of strategies to communicate best practices for use of MCOs and for new research on MCOs and farmers’ decision-making.