B2B relationship calculus: quantifying resource effects in service-dominant logic

Increasingly, knowledgeable business-to-business (B2B) customers and evolving customer needs are leading to seismic shifts in vendor–client interactions. Across industries, sellers are changing their business models from a simple goods orientation to a hybrid goods–services model, placing greater emphasis on delivering complete customer solutions. In such an environment, companies must find ways to prioritize investments in resource development. The service-dominant (S-D) logic framework offers significant insights into this challenge; however, these effects have not been tested quantitatively. This study addresses that gap, examining the influence of various seller resources on buyer satisfaction. An empirical analysis of buying organizations that purchased and implemented business intelligence systems finds that “augmented” operant resources that the buyers ascribe to the software’s sellers—resources that go above and beyond expectations—are the most significant predictors of both successful technology assimilation and overall customer relationship quality. In particular, an augmented operant resource reflecting a seller’s ability to see value creation opportunities from the buyer’s perspective (value mindset) has up to three times the effect on relationship satisfaction as “core” operant resources such as product-specific expertise or basic interpersonal service skills. These results can help sellers prioritize resource investments.     

Income diversification and risk: Does ownership matter? An empirical examination of Indian banks

We examine the impact of ownership on income diversification and risk for Indian banks over the period 2001–2009. We investigate both the determinants of non-interest income and the impact of diversification on various profitability and insolvency risk measures for public sector, private domestic, and foreign banks. We document that ownership does matter in the pursuit of non-interest income. Relative to private domestic banks, public sector banks earn significantly less fee-income, while foreign banks report higher fee income. Public sector banks with higher levels of governmental ownership are significantly less likely to pursue non-interest income sources. Fee-based income significantly reduces risk, measured by profitability variables, for public sector banks. Default risk is also reduced for these banks. From a regulatory perspective, it appears that diversification benefits India’s public sector banks. Our research has implications for the changes in the risk profile for banks in emerging banking markets pursuing non-interest revenue sources.     

The influence of remittances on education and health outcomes: a cross country study

We study the effect of international remittances on aggregate educational and health outcomes using a sample of 69 low- and middle-income countries. We find that remittances play an important role in improving primary and secondary school attainment, increasing life expectancy and reducing infant mortality. Our results suggest that as migration laws continue to support greater emigration and remittances, policies should be enacted to facilitate the flow of remittances as they represent a significant source for economic development.     

A model for projecting flight delays during irregular operation conditions

On-time performance of airlines schedule is key factor in maintaining current customer satisfaction and attracting new ones. This requires management of the different operation resources (crew/aircraft) to ensure their on-time readiness for each flight in the planned schedule. However, flight schedules are often subjected to irregularity. In particular, weather accounts for nearly 75% of system delays. Due to the tight connection among airlines resources, these delays could dramatically propagate over time and space unless the proper recovery actions are taken. This paper presents a model which projects flight delays and alerts for possible future breaks during irregular operation conditions. The results of applying the model at the operation control center of a major airlines company in the US are presented.     

Trade-related intellectual property rights and product versus process innovations

The incentives of southern governments to protect process and product patents are examined in a game with endogenous research and development and licensing. Patent protection results in the licensing of cost-reducing process innovations to southern firms. By increasing competition, licensing provides an incentive for southern governments to protect process patents. However, optimal patent policy may involve restrictions in the form of licensing contracts. In the case of product innovations, licensing does not occur regardless of whether or not patents are protected. Thus, patent protection serves to reinforce monopoly power without increasing technology diffusion. Southern governments thus have a lower incentive to protect product patents.     

Channel design,coordination, and performance: Future research directions

The marketing literature has made significant progress toward a better understanding of how firms can effectively design and manage their channels of distribution. However, the complexity of today’s channel systems raises additional issues that remain unaddressed. The purpose of this article is to suggest promising research directions in this domain. We suggest several possible avenues to relate multiple channel design and management to channel-system, channel-relationship, and customer-level outcomes. In particular, we see a great opportunity to integrate multichannel customer management and traditional channel design research. We argue that future research should account for cross-level effects and incorporate variables at more than one relationship level.     

North-South technology transfer through licensing

The incentives of Southern governments to protect intellectual property rights are examined when Northern innovating firms license technology to Southern firms in a game with asymmetric information. Southern firms may or may not be able to imitate after they license the technology, and Northern firms do not know whether the Southern firm can imitate. The form of the licensing contract and the distribution of the gains from licensing will affect the incentives of Southern countries to protect patents. Southern consumers gain from patent infringement but at the expense of Southern firms that cannot acquire licenses at the most favorable terms.     

Building local legitimacy into corporate social responsibility: Gold mining firms in developing nations

A transnational model of global strategy suggests that multi-national enterprises generally rely on proven global capabilities to adapt existing business models. Alternatively, this paper argues that the transnational model needs to be amended to allow for a hybrid approach that balances local and global strategies for multi-national gold (MNGs) firms working in developing nations. This is illustrated by Newmont Mining's efforts to develop local legitimacy through contributions to community development around its gold mining operations in Peru. We then compare the Newmont case with corporate social responsibility (CSR) at other MNGs. We have found that there appears to be an industry-wide institutional environment developing which includes local CSR projects in an attempt to balance the effects of capitalism between global markets and developing nations.     

An investigation of the usage of capital budgeting techniques by small and medium enterprises

Quality & Quantity - This paper examines the extent or usage of capital budgeting techniques in Small and Medium Enterprises (SMEs) and the effect of non-financial factors on the choice of...     

Tax Evasion and Equity Theory: An Investigative Approach

Traditional economic theory assumes rational individuals with stable preferences who, given an array of options and probabilities, maximize their expected utility. However, experimental research finds that individuals make systematic mistakes when attempting to maximize their expected utility. The economic psychology approach includes aspects of the traditional economic approach and the psychological approach that emphasizes values, attitudes, norms, conformity and morals.This paper investigates equity theory and tax evasion using the framework of prospect theory pioneered by Tversky and Kahneman. We design an investigation to identify if individual behavior follows the usual results of prospect theory, given a scenario that frames a perception of inequity. The investigation frames a scenario to invoke a controlled tax regime. The frame varies according to which inequity is being measured, exchange or social. Once the scenario is established, a questionnaire is designed to determine how the individual responds when filing taxes. The responses to the control questions are consistent with prospect theory. However, in general the responses to the framed questions, depicting inequity, are more consistent with expected utility theory.