Service Competitiveness – An Anglo-US Study

This article reports on the latest in a series of international comparisons of management practices and performance outcomes of industries in various countries. Here, it is the service industries in the UK and the US which come under the microscope. Among the companies surveyed, there were more world-class performers in the US than the UK, but also more low performers. The concluding part of the article is diagnostic – the authors also suggest measures which could improve performance.     

Building Brands through Brand Alliances: Does a Second Ally Help?

Several papers have been published demonstrating the positive effects a single, reputable ally has on evaluations of a focal brand. Interestingly, little research has been published examining the effects of multiple brand allies. We examine the effect of an alliance with two, one, or zero well-known brand allies on evaluations of a previously unknown focal brand. The presence of a single brand ally significantly increased perceived quality and hedonic and utilitarian attitudes. While multiple alliances improved focal brand evaluations relative to the no ally condition, the second ally did not increase evaluations relative to the single ally condition.     

Managing New Product Design and Development: an Anglo-German Study

This article reports the results of a study of innovation and product development at 245 manufacturing sites in the UK and Germany. It examines the relationship between design and performance and the competitiveness of the UK and Germany in design and manufacturing. Overall, few sites reached "world-class" standards - 9% in Germany and 3% in the UK, although many sites were not far below these standards.     

SERVCON: development and validation of a multidimensional service convenience scale

As customers have demanded greater convenience in service exchanges, researchers have responded by incorporating the convenience construct into their conceptual models and empirical studies, but a comprehensive, formally validated measure of convenience remains lacking. This study conceptualizes service convenience as a second-order, five-dimensional construct that reflects consumers’ perceived time and effort in purchasing or using a service. Service convenience dimensions are salient at different stages of the purchase decision process. Given this conceptualization, the study presents the development and validation of the SERVCON scale, a comprehensive instrument for measuring service convenience. The five dimensions are independent within a nomological network that illustrates distinct antecedent and consequent effects, and the results reinforce the multidimensional representation, offering insight into the distinctive relationships between each service convenience dimension and its antecedents, such as competitive intensity, and consequences, such as repurchase behavior. The findings help researchers and managers understand a fully conceptualized convenience construct and facilitate the measurement of convenience in future empirical studies.     

An Alternative Approach to the Measurement of Emotional Attachment

Emotional attachment (EA)—the emotional bond connecting an individual with a specific target—has been identified as an important construct within the marketing domain. Despite all the research, there is no consensus on how the construct should be measured. A major factor contributing to this confusion is that current definitions and, consequently, scales of EA focus on describing reactions toward specific referents of attachment rather than on capturing the extent of emotion an individual feels; hence, hindering construct validity. In this article, the authors scrutinized the concept validity of EA. After defining the construct, scale development procedures were followed to propose an alternative one‐dimensional scale that reflects the abstract nature of EA. Three studies support the scale's reliability as well as the discriminant, convergent, criterion, and nomological validity of the measure. The studies tested the scale under different marketing contexts. Moreover, by employing the new measure, the findings showed that EA and self‐concept maintenance (SCM) are related, yet different constructs. Specifically, the results showed that these constructs interact to predict willingness to pay (WTP) for a brand such that when SCM is low, WTP is predicted by EA. However, when self‐concept is high, the effect of EA on WTP is not that strong. This new scale will help researchers extend research on EA to a broader set of contexts, explore the relationship between EA and related constructs, develop nomological networks, and prevent the confounding of terms.     

Public–Private Partnerships and Supply Chain Security: C‐TPAT as an Indicator of Relational Security

Following the attacks of September 11th, public and private entities recognized a need to protect the global supply chain from terrorist disruption. In response to this need, the U.S. Government partnered with industry to create the Customs‐Trade Partnership Against Terrorism (C‐TPAT) program. This research investigates the public–private partnership (PPP) relational aspects of C‐TPAT. C‐TPAT encourages firms to voluntarily improve their security competence and that of their supply chain partners. We introduce the concept of relational security in the context of PPPs. We define relational security as all activities that establish, cultivate, and maintain successful security exchanges between parties. We establish C‐TPAT as one indicator of relational security by demonstrating its ability to establish, cultivate, and maintain successful security exchanges between parties. Results indicate certified firms outperform noncertified firms in security performance, firm performance, and resilience.     

Pricing exotic options with L-stable Padé schemes

In this paper we develop a strongly stable (L-stable) and highly accurate method for pricing exotic options. The method is based on Padé schemes and also utilizes partial fraction decomposition to address issues regarding accuracy and computational efficiency. Due to non-smooth payoffs, which cause discontinuities in the solution (or its derivatives), standard A-stable methods are prone to produce large and spurious oscillations in the numerical solutions which would mislead to estimating options accurately. The proposed method does not suffer these drawbacks while being easy to implement on concurrent processors. Numerical results are presented for digital options, butterfly spread and barrier options in one and two assets. In addition, the methods are tested on the Heston stochastic volatility model.     

The Need for a Field of Study of Implementation of Innovations

The study of innovation has been approached from many disciplines and from the point of view of different real life problems. As a result, we have a series of clusters of knowledge that are related but seldom integrated. Chris Voss suggests it is time we closed at least one of these gaps. He suggests there should be a field of study should be established that will build a bridge between work on the process of innovation and work on the diffusion of innovation. He presents a starting point for the new field of study.     

Determinants of Success in the Development of Applications Software

In this article, the third in the trio of software innovation articles, Chris Voss outlines the key factors that determine whether a new software development is likely to be successful. His research draws on an innovation framework that has emerged from previous research. His results are similar to those of the earlier studies and suggest that the software innovation process has many demands that are common to innovation in other product areas.