Data Fixation and the Use of Traditional Versus Activity-Based Costing Systems

An important debate in the contemporary accounting literature relates to the relative merits of activity-based versus volume-based product costing methodologies. Traditional volume-based costing systems are said to be flawed and may seriously mislead strategic decision making. Such arguments assume that decision makers use such information in an unproblematic way. This article reports on an experiment designed to investigate whether decision makers are able to overcome data fixation in a setting involving the use of product cost information. In response to criticisms of previous accounting studies of data fixation, subjects received some feedback after each decision, and were rewarded based on performance. The experiment involved subjects making a series of production output decisions based on detailed case information of a hypothetical firm facing different market conditions for each decision. A between-subjects design was utilized with two cost system treatments: activity-based costing (ABC) and traditional costing (TC). It was hypothesized that the group provided with ABC cost data would make 'optimal' decisions and the group provided with TC cost data would overcome fixation. The results of the experiment indicated that there was, in general, evidence of data fixation among TC subjects, but a small number of subjects did adjust to ABC costs. These results are discussed in the light of previous research and some future directions are outlined.     

Potential user factors driving adoption of IPTV. What are customers expecting from IPTV?

Internet Protocol Television (IPTV), the convergence services of television and Internet, is being rapidly developed around the world. The advent of digital technologies has changed the convergence market dramatically with the wide diffusion of the convergent services. Using the Technology Acceptance Model as a conceptual framework and method of logistic regression, this research analyzes the demand for IPTV by drawing data from 452 consumers. Individuals' responses to questions about whether they accept IPTV are collected and combined with observations of their socio-economic status and intrinsic/extrinsic factors modified from the Technology Acceptance Model. Results of logistic regression show two variables (intrinsic and extrinsic factors) that seem to explain what influences consumer behavior towards adopting IPTV. Overall, the logistic regression model explains over 50% of the variance in the IPTV adoption. The variances shed light on the multi-open platform environment that IPTV will forge.     

National culture and R&D and marketing integration mechanisms in new product development: A cross-cultural study between Singapore and New Zealand

The integration of R&D and marketing in new product development (NPD) is an important contributor to NPD performance. Of the mechanisms developed to aid functional integration, many have been developed in western cultural environments and may not have applicability in other national cultural settings. Using a sample of NPD workgroup personnel in New Zealand (NZ), the western cultural environment, and Singapore, quantitative and qualitative data have been used to measure national culture and determine the applicability of different organization integration mechanisms. Results show key differences between the two samples, indicating a link between formalization, centralization, role flexibility and interfunctional climate mechanisms with the Hofstede dimensions of Power Distance, Masculinity and Uncertainty Avoidance of national culture. Managerial implications are that national cultural values and settings of the respondents are important when determining best integration mechanisms.     

Societal trust and corporate tax avoidance

Using an international sample of firms from 25 countries and a country-level index for societal trust, we document that societal trust is negatively associated with tax avoidance, even after controlling for other institutional determinants, such as home country legal institutions and tax system characteristics. We explore the effects of two country-level institutional characteristics—strength of legal institutions and capital market pressure—on the relation between societal trust and tax avoidance. We find that the relation between trust and tax avoidance is less pronounced when the legal institutions in a country are stronger and is more pronounced when the capital market pressure is stronger. Finally, we examine the relation between societal trust and tax evasion, an extreme and illegal form of tax avoidance. We show that societal trust is negatively related to tax evasion and the negative relation is less pronounced when legal institutions are stronger.     

Cultural Differences in Online Community Motivations: Exploring Korean Automobile Online Brand Communities (KAOBCs) and American Automobile Online Brand Communities (AAOBCs)

To gain a better understanding of online brand communities, this study has examined why people joined in online brand communities and whether there were some differences in the motivations of Internet users based on different cultures. Open-ended questions were asked to the community members from both South Korean Automobile Online Brand Communities (KAOBC) and American Automobile Online Brand Communities (AAOBC) in the first stage and then generated and utilized an online survey for the study. The study found that KAOBC members tended to have a stronger social network, business, and communication motivations than AAOBC members. As a primary motivation, information seeking is the strongest motivation for members of both KAOBC and AAOBC. They had a similar level of information motivation.     

Corporate Social Responsibility,Firm Value and Corporate Governance Code Revisions: The Asian Evidence*

The present study examines the relationship between corporate social responsibility (CSR) and firm value, and the effects of corporate governance code revisions on the relationship. We examine this relationship for: (i) a high‐income country, Japan; (ii) middle‐income countries China, Malaysia and Thailand; and (iii) low‐income countries India and Indonesia. We use the Heckman two‐stage sample selection bias approach for the empirical analysis. We find that Japanese stakeholder CSR and environmental CSR have a smaller positive effect on firm value compared to the middle‐income countries, but we do not find any statistically significant association for the low‐income countries. In addition, we find that only Japanese corporate governance code revisions significantly contribute to the positive relationship between CSR and firm value, which concurs with the new recommendations documented in the revised codes of corporate governance. The present study reveals that foreign major shareholders matter to the value creation of CSR in Japan and the middle‐income countries of China, Malaysia and Thailand.     

Sustainable Urban Landscaping: Consumer Preferences and Willingness to Pay for Turfgrass Fertilizers

Residential lawns provide diverse benefits, including social (e.g., enhancing humans’ physical and psychological well‐being), economic (e.g., increasing real estate values), and environmental (e.g., supporting local ecosystems) benefits. However, improper lawn fertilizer applications can cause adverse environmental consequences, such as excessive chemical runoff into adjoining watersheds leading to water contamination. Currently, the importance of eco‐friendly fertilizers to homeowners has not been assessed. This study uses a discrete choice experiment to test whether eco‐friendly fertilizer attributes influence homeowners’ preferences for sustainable landscape management. The findings show that eco‐friendly fertilizer attributes positively influence homeowners’ preferences and willingness to pay, supporting the premise that the promotion of eco‐friendly fertilizer features could improve local ecosystems through increased adaptation. Furthermore, this study tests whether certain fertilizer attributes influence homeowners’ preferences in states with and without fertilizer restrictions. Since the regulatory environment affects homeowners’ preferences for sustainable landscaping, this study compares the results between regulated and unregulated states. The findings reveal that homeowners are more likely to use and are willing to pay higher premiums for sustainable fertilizers in states with residential fertilization regulations. This suggests that with strict fertilizer ordinances, homeowners are more geared toward eco‐friendly landscaping options and that related educational programs should be made available. Les pelouses résidentielles offrent divers avantages, incluant les avantages sociaux (comme la valorisation du bien‐être physique et psychologique humain), économiques (comme la valeur immobilière), et environnementaux (comme l'appui des écosystèmes locaux). La mauvaise application des fertilisants a parfois des conséquences environnementales négatives comme le ruissellement chimique excessif dans les bassins hydrographiques attenants menant à la contamination des sources d'eau. En raison de l'importance des fertilisants respectueux de l'environnement pour la protection de ce dernier, cette étude emploie une expérience avec choix discrets pour évaluer si les attributs écologiques des fertilisants influencent les préférences des consommateurs et leur volonté de payer pour une gestion durable de l'aménagement. Les résultats indiquent que les attributs écologiques des fertilisants influencent positivement les préférences des consommateurs et leur volonté de payer, appuyant ainsi la prémisse selon laquelle la promotion des attributs écologiques des fertilisants de gazon pourrait améliorer les écosystèmes locaux. De plus, cette étude évalue l'influence des attributs de certains fertilisants sur les préférences des propriétaires résidentiels dans les états avec et sans restrictions sur l'application des fertilisants. Puisque le cadre règlementaire peut avoir un impact sur les préférences des consommateurs pour une gestion durable de l'aménagement paysager, cette étude compare les prévisions des états avec et sans cadre règlementaire. Les résultats démontrent que les consommateurs sont plus aptes à utiliser, et sont disposés à payer un surplus pour les fertilisants durables dans les états où des règlements concernant l'utilisation de fertilisants résidentiels sont en vigueur, portant donc à croire que les programmes éducatifs concernant l'aménagement paysager respectueux de l'environnement devraient être accompagnés d'ordonnances strictes en matière de fertilisants.     

The impact of CSR on relationship quality and relationship outcomes: A perspective of service employees

Corporate social responsibility (CSR) has gained increasing attention over the past decade. While many studies examined an impact of CSR on consumers, only dearth of research is found that attempts to understand the impact of CSR on employees from the relationship marketing perspective. The purpose of this study is to investigate the role of CSR in predicting relationship quality and relationship outcomes. The four dimensions of CSR used in the study include economic, legal, ethical, and philanthropic aspects. Data were collected via survey from employees of franchised foodservice enterprises located in South Korea. The findings of the study show that not all dimensions of CSR have the same effect on relationship quality. While economic and philanthropic dimensions have a significant influence on organizational trust, only ethical dimension has a positive effect on job satisfaction. As expected, relationship quality has a significant impact on relationship outcomes.     

Organizational attraction toward a company that adopts a smoke-free policy

The current study investigated Korean smokers’ and non-smokers’ evaluations of an organization implementing a policy which either mandated or recommended that employees quit smoking. Undergraduates (n = 268) were randomly assigned to one of 2 (high vs. low severity of smoke-free policy implementation) × 2 (high vs. low organizational assistance) conditions and indicated their attraction to a hypothetical organization, posing as job applicants. The findings showed that non-smoking individuals’ perception of organizational support was more strongly and positively related to organizational attraction when they were more likely to endorse employers’ right to control employee smoking behaviors. Ex-smokers indicated greater attraction toward the organization when it was described as implementing a high severity policy than a low severity policy. Non-smokers indicated greater attraction toward the organization when it was described as offering a high level of assistance than a low level of assistance for smokers’ cessation efforts. These and other findings concerning individuals’ perception of severity, perception of organizational support, smoking sensitivity, and employer control are presented in detail, and the implications thereof are discussed.