Flexible estimation of price response functions using retail scanner data

Kalyanam and Shively [1998. Estimating irregular pricing effects: a stochastic spline regression approach. Journal of Marketing Research 35 (1), 16–29] and van Heerde et al. [2001. Semiparametric analysis to estimate the deal effect curve. Journal of Marketing Research 38 (2), 197–215] have demonstrated the usefulness of nonparametric regression to estimate pricing effects flexibly. The empirical results of these two studies, however, also revealed that nonparametric regression may suffer from too much flexibility leading to nonmonotonic shapes for price effects. In this paper, we show how the problem of nonmonotonicity can be dealt with without losing the power of flexible estimation techniques. We propose a semiparametric approach based on Bayesian P-splines with monotonicity constraints imposed on own- and cross-price effects. In an empirical application, we illustrate that flexible estimation of own- and cross-price effects can improve the predictive validity of a sales response model substantially, even when price response curves were constrained to show a monotonic shape, as suggested by economic theory. We also discuss the consequences from an unconstrained estimation of price effects.     

The US current account deficit: A fundamentally flawed development?

The American current account deficit has once more become the subject of public debate. The size of the deficit is seen by some observers as the main cause of the recent decline in the exchange rate of the dollar. Can the latter be taken as confirmation of the increasing warnings that, in view of the dependence of the US economy on capital imports, adjustment processes such as a dramatic slump in the dollar exchange rate are imminent? What fundamental developments lie behind the US current account deficit, and do they give cause for significant adjustment reactions?     

Organizational ambidexterity: Integrating deliberate and emergent strategy with scenario planning

In this article we propose scenario planning as a tool for fostering organizational ambidexterity. The concept of organizational ambidexterity continues to gain attention, however, clear methods for developing this organizational ability are generally not offered. We therefore describe organizational ambidexterity and situate it in the general strategy literature. Key characteristics of organizational ambidexterity are provided, and the logical link to scenario planning is made. As the concept of organizational ambidexterity is relatively novel, our proposal highlights the use of scenario planning as a potential tool for developing this organizational “skill”, and clear next steps are described to examine our proposal as well as leverage the concept of organizational ambidexterity beyond that of a simple metaphor.     

Limit to improvement: Myth or reality?: Empirical analysis of historical improvement on three technologies influential in the evolution of civilization

The evolution of civilization appears to have primarily resulted from continuous improvement made possible by technological advances. A group of social evolutionists and economists have identified, among others, energy, transport, as well as information and communication to be the three most influential technologies. On the other hand, a number of eminent scholars have cited several forces, natural, physiological, technological, as well as environmental which can place a limit on on-going improvement.The purpose of this paper is to empirically explore the continuous improvement process as well as the limit placed on these three technologies. Using the framework of both connected and disconnected multiple technology S-curves and X-factor, historical improvement data on these three elements have been analyzed. The results of our analysis indicate that improvement in general has continued without limit mainly due to a series of emerging new technologies. These emerging technologies can be either connected or disconnected from the existing mature technologies. Our preliminary analysis shows that much of the past improvement comes from new technologies that on first serious application appear to be substantially superior from earlier technologies. In addition, enormous continuous improvement, which has accompanied both connected and disconnected new technologies appear to have played the critical role in sustaining the evolution of civilization. The paper discusses a number of policy implications and suggests topics for future research.     

Power, conflict, and cooperation: The impact of guanxi in Chinese marketing channels

This paper tests the impact of guanxi on behaviors among firms in a Chinese marketing channel. Guanxi is operationalized in this paper as emotional closeness and interactive state. We find that the emotional closeness between channel-boundary personnel of firms has a positive impact on their exercise of noncoercive power, a negative impact on their exercise of coercive power, and a negative impact on the perceived conflict between them. In addition, emotional closeness has an indirect but positive impact on perceived cooperation. Interactive state between the boundary personnel of two firms has a positive impact on a firm exercising noncoercive power and a negative impact on perceived conflict between them. At the same time, it is positively related to a firm exercising coercive power. This shows not only the significant influence of guanxi on a firm's channel behaviors but also the constructive effects of both emotional closeness and interactive state on marketing channel behaviors in China.     

Utilization of business technologies: Managing relationship-based benefits for buying and supplying firms

There is increasing evidence to suggest that organizations often fail to fully capitalize on the purchased business technologies due to their failure to utilize the new procurement throughout their corporate system. To this end, this study sets out to identify the factors that play a tangible role in facilitating the utilization of procured business technologies. In this context, we not only examine the direct effects of technology and organizational culture on utilization, but also assess the moderating effects of user environments and supplier service orientation on these direct relationships. More importantly, we focus on the impact of utilization in creating the relationship-based benefits for both the technology user and supplier. Using data on purchase and use of customer relationship management (CRM) system, we empirically validate that the user firm's corporate culture, perceived technology attributes, environmental turbulence, and the supplying firm's service orientation are critical in increasing the utilization level of business technologies, which in turn helps to create/sustain relationship-based advantages for both parties.     

The impact of external forces on cartel network dynamics: Direct research in the diamond industry

This paper describes the impact of external environmental forces on cartel networks. Using a case research approach, this report examines two leading business networks within one industry, over time. The results suggest that (a) bargaining power of intermediaries increases with the advent of new and powerful actors, (b) process activities that cartels previously controlled are being outsourced to new actors sometimes based in developing countries, (c) other actors are acquiring resources once dominated by a cartel, (d) external forces triggered by the illegal diamond trade, such as international regulatory constraints, no longer favour cartels like De Beers, and (e) over time, these and additional environment factors are forcing actors like De Beers who perform rigid process activities to become more flexible. For example, forces are moving cartels which relied previously on hand-picked intermediaries in highly controlled networks to market their products to adopt a flexible market-focused expansion of operations in retail contexts.