Common Method Variance in Advertising Research: When to Be Concerned and How to Control for It

In this article we discuss and analyze the critical issues related to common method variance (CMV) that are particularly relevant to advertising research and recommend best practices for assessing the effects of CMV in this domain. Specifically, we cover the development of CMV as a domain-specific methodological concern and the underlying sources of CMV that are likely to operate in cross-sectional survey-based studies in the field of advertising. We discuss in detail the available procedural and statistical techniques that can be applied to control for and/or measure the effects of sources of CMV in a single study and across research domains. In addition, we provide a critical look at how these techniques have been employed in past research and make recommendations for future examinations of CMV in advertising research.     

The effect of dynamic retail experiences on experiential perceptions of value: an internet and catalog comparison

The authors introduce cognitive continuum theory (CCT) as a theoretical framework to examine the effect of consumer shopping tasks and retail information display properties on consumer perceptions of experiential value. In this empirical investigation, the nature of a consumer’s shopping task is found to exert a direct influence on consumer perceptions of efficiency, economic value, and shopping enjoyment, all active dimensions of value. In addition, congruent interactions between shopping task and retail information display properties exert an enhancing effect on the reactive dimensions of value, as evidenced by perceptions of visual appeal, entertainment value, and service excellence. Future application of CCT is outlined and managerial implications are discussed.     

Antecedents and Consequences of Cronyism in Organizations

In this paper we discuss cronyism that exists between superiors and subordinates. Cronyism is defined as favoritism shown by the superior to his or her subordinate based on their relationship, rather than the latter's capability or qualification, in exchange for the latter's personal loyalty. We argue that two cultural antecedents, namely particularism and paternalism, give rise to strong ingroup bias and unreserved personal loyalty, which in turn lead to cronyism. We examine the consequences of cronyism at the individual level with respect to job satisfaction, organizational commitment, and ingratiation. We also discuss how cronyism affects performance, morale, and inertia at the organizational level. Cronyism can be observed in all cultures; however, its manifestation is likely to vary from one culture to another.     

Secured debt and managerial incentives

Financial theory holds that firms can control agency costs through the use of short-term and secured debt. We examine the relation between the use of secured debt and the incentive of the manager to increase the risk of the firm, as measured by vega. We find that firms utilize secured debt to a lesser extent when managerial volatility sensitivity is higher. Our results suggest that these same firms employ short-term debt as the primary tool to control risk-shifting. Managers with a high risk appetite avoid secured debt, but appear to do so without compromising the interests of the shareholders.     

Explaining employee turnover in an Asian context

Employee turnover is giving sleepless nights to HR managers in many countries in Asia. A widely‐held belief in these countries is that employees have developed ‘bad’ attitudes due to the labour shortage. Employees are believed to job‐hop for no reason, or even for fun. Unfortunately, despite employee turnover being such a serious problem in Asia, there is a dearth of studies investigating it; in particular studies using a comprehensive set of variables are rare. This study examines three sets of antecedents of turnover intention in companies in Singapore: demographic, controllable and uncontrollable. Singapore companies provide an appropriate setting as their turnover rates are among the highest in Asia. Findings of the study suggest that organisational commitment, procedural justice and a job‐hopping attitude were three main factors associated with turnover intention in Singapore companies.     

Managing human resource for competitive advantage: a study of companies in Singapore

We see two major streams of research in the strategic human resource management literature: (1) the link between strategy and human resource (HR) practices and (2) the link between HR practices and firm performance. There is a plethora of theoretical perspectives on the first link. Unfortunately, there is not much empirical work. The second link has seen a spate of empirical studies. However, most of them embrace the universal perspective and the role of strategy as a contingency has not been adequately addressed. This could potentially result in the underestimation of the impact of HR practices on organizational performance. This study addressed the above two weaknesses in previous research in the strategic HR management field. Using a sample of about 200 of the largest companies representing all major industries in Singapore, we found that organizational strategy affects HR practices. Moreover, findings suggest that the strategy-HR interaction accounts for more variation in firm performance than the main effect of HR. Implications of the findings are discussed.     

Affective and Cognitive Components of Attitudes in High‐Stakes Decisions: An Application of the Theory of Planned Behavior to Hormone Replacement Therapy Use

Consumers are increasingly encouraged to take charge of high‐stakes decisions such as those regarding medical treatments. However, the important inputs into overall evaluations of risky and important behaviors, such as undergoing medical therapy, are not well understood. The purpose of this research is to study the interplay of cognitive and affective factors in determining consumer attitudes and intentions toward high‐stakes decision behaviors. This is done in the context of consumer choices regarding medical treatments, and specifically, the decision to use (or not to use) hormone replacement therapy (HRT). Overall, both affective and cognitive responses are found to be independent significant predictors of attitude toward HRT use. Moreover, the results support an extended version of the theory of planned behavior model that is useful in predicting consumer's intentions to engage in high‐stakes decision behaviors, such as using HRT. These findings have implications for the design of decision support systems and behavioral change interventions.     

Formal Rehabilitation Procedures and Insolvent Firms: Empirical Evidence on the British Company Voluntary Arrangement Procedure

The British Company Voluntary Arrangement (CVA) is a relatively new debtor rehabilitation process intended to help financially troubled companies, particularly SMEs, resolve their difficulties without being forced into liquidation by secured creditors anxious to recover their funds. This paper is based on a survey conducted by Milman and Chittenden for the Association of Chartered Certified Accountants that is the largest and most comprehensive on the subject of British CVAs. It has three principal objectives: (i) to outline the defining characteristics of CVAs; (ii) to analyse the relationships between CVA performance and contextual factors; (iii) to provide policy recommendations based on those findings. Among other things we find that CVA success is most closely associated with sound fundamental prospects for recovery and supportive creditors. Our principal recommendation is that ways should be found of lowering the fixed costs of CVAs to make the procedure feasible for a larger number of small firms.     

Virtual Reality and Innovation Potential

This article examines how companies can harness virtual reality (VR) technology to help make themselves more innovative. VR has some unique characteristics which, taken together, can help companies to develop three features common to many innovative organisations: a capacity to experiment in depth; involvement of all in the innovation process; and an ability to capture ideas generated in the innovation process. However, some obstacles need to be overcome before VR fulfils this potential.     

Managing growth: Human resource management challenges facing the Indian software industry

Indian software industry has had a phenomenal growth in the last two decades and is expected to sustain this momentum in the foreseeable future. Based on content analysis of 25 cases, the paper identifies several human resource management challenges: managing human resources in globally distributed team, shortage of software professionals having sufficient knowledge and competencies, low-skilled nature of the work, lack of well-developed HR systems and processes, high employee turnover, lack of work-life balance, and the problems associated with the use of contract employees. The paper develops a model for managing growth linking the various variables emerging from the study.