Examining the impact of managerial involvement with social media on exporting firm performance

The growth of social media presents international businesses and marketers with unprecedented risks and challenges. Marketers are becoming aware of the threat of losing control over their message and are also beginning to realize the potential of social media as a marketing tool. Based on export managers’ beliefs about social media use outcomes, as well as their attitudes, intention to use, and actual use of these applications of Web 2.0, three groups of Spanish exporters are identified according their managerial involvement with social media tools: ‘potential in SM’, ‘initiated in SM’, and ‘expert in SM’. Considering other firm characteristics and type of sector, these three clusters of exporting firms are fully characterized and their relationship with firm performance is determined. From these results, relevant implications emerge for academic researchers, entrepreneur-managers and policy-makers.     

Information direction, website reputation and eWOM effect: A moderating role of product type

This article examines how the electronic word of mouth (eWOM) information direction (positive vs. negative) and a website's reputation (established vs. unestablished) contribute to the eWOM effect. The article describes a study focusing on the moderating role of the product type (search vs. experience). The results of the experiment show that the eWOM effect is greater for negative eWOM than for positive eWOM, greater for established websites than for unestablished websites, and greater for experience goods than for search goods. The results support the moderating effects of product type on the eWOM information direction-website reputation-eWOM effect relationship. The impact of negative eWOM on the eWOM effect is greater for experience goods than for search goods. Similarly, the impact of website reputation on the eWOM effect is greater for experience goods than for search goods. The findings provide managerial implications for an Internet marketing strategy.     

Hear nothing,do nothing: The role of word of mouth in the decision-making of older consumers

Abstract

In some product categories, older consumers (aged 65+) tend to be more brand loyal, have smaller consideration sets and defer purchase more than younger consumers. This conservative behaviour may arise, in part, because older people are more socially isolated and thus receive less social influence relating to product options. In this multi-study research, the volume of word of mouth (WOM) is used as an indicator of social influence. The WOM received by men and women falls substantially beyond age 65, indicating that a deficit in advice may be part of the explanation for conservative decision-making. To test this proposition, the duration of customer tenure of the current brand (how long the respondent has been a customer) is used as a measure of purchase deferral and, as predicted, tenure is longer when less WOM is received. This evidence indicates that some older consumers experience a degree of social isolation, which affects their decision-making. In marketing and social policy, there is a need to promote procedures, technologies and institutions that help older people to connect with others.     

Brand Actions on Social Media: Direct Effects on Electronic Word of Mouth (eWOM) and Moderating Effects of Brand Loyalty and Social Media Usage Intensity

Most existing social media research has been user focused. This study looks at social media from the brand's perspective by testing (1) theoretical links between brand-action antecedents and positive electronic word of mouth (eWOM); and (2) how brand loyalty and social media usage intensity moderate the relationships between the antecedents and eWOM. Using structural equational modelling from 290 Facebook users, we find empirical support for three brand action constructs (personalization, responsiveness, and transparency) to eWOM. We also find the moderating effects of social media usage intensity and brand loyalty on the relationship between responsiveness and eWOM. Theoretical and managerial implications for these findings are discussed.     

Measuring the impact of positive and negative word of mouth on brand purchase probability

Using two methods, three measures, and data covering a large number of categories, we present findings on the respondent-assessed impact of positive and negative word of mouth (PWOM, NWOM) on brand purchase probability.For familiar brands, we find that:

1. The impact of PWOM is generally greater than NWOM. The pre-WOM probability of purchase tends to be below 0.5, which gives more latitude for PWOM to increase purchase probability than for NWOM to reduce it.

2. The impact of both PWOM and NWOM is strongly related to the pre-WOM probability of purchase, the strength of expression of the WOM, and whether the WOM is about the respondent's preferred brand.

3. PWOM and NWOM appear to be similar forms of advice-giving behavior, except for their opposed effects on choice.

4. Respondents resist NWOM on brands they are very likely to choose, and resist PWOM on brands they are very unlikely to choose.

In the Discussion section, we show how our methods could be used to construct a word-of-mouth metric.     

Word of mouth: products,conversations and consumption

While there is a rich collection of studies of consumption and identity, the role of buying practices in ordinary conversations has been largely neglected. Minor items and major purchases regularly play a key role in furnishing our talk with topics, news, jokes and formulations of what kind of people we are. This paper unpacks the idea of post-purchase conversations contained within the common phrase “word of mouth.” What happens when products are examined in ordinary talk is pursued through the close analysis of a series of conversations around a significant purchase (a mountain bike). Drawing on the work of Harvey Sacks, and conversation analysis more broadly, this paper documents how products as a topic provide not only resources for small talk, but also an opportunity to consider our identity and its transformation. In conclusion, this paper argues that the knowledge and experience that circulate outside of the actual marketplace or point of purchase are part of a domain of economics as ordinary practice.     

网络口碑传播与数码产品销售研究

网络口碑传播对数码产品的销售工作有着显著的影响,通过不同传播形态流转的网络口碑对消费者的影响也各不相同。基于已有的研究成果,按照传播形态的不同对现有网络媒介进行划分,探讨不同传播形态之间发挥作用的差异。研究发现相比训话形态与注册形态,对话形态与协商形态的网络媒介对网络口碑受众的影响更深。     

The effect of characteristics of source credibility on consumer behaviour: A meta-analysis

The aim of this research is to synthesise findings from existing studies on the characteristics of source credibility of electronic word of mouth (eWOM) communications in a single model by using meta-analysis. Findings from 20 research papers show that source expertise, trustworthiness, and homophily significantly influence perceived eWOM usefulness and credibility, intention to purchase, and information adoption. The results of this study add to existing knowledge of the influence of source characteristics on consumer behaviour, which will advance our understanding of information processing. Marketers can use the findings of this meta-analysis to enhance their marketing activities.     

Analysis of commercial rumors from the perspective of marketing managers: Rumor prevalence,effects, and control tactics

This study examines commercial rumors from the perspective of marketing managers. American and French respondents (N = 133) completed a rumor questionnaire intended to assess the prevalence and types of commercial rumors that reach their ear, the severity of rumor effects, the effectiveness of rumor control tactics, and the psychological and situational variables associated with rumor onset and spread. Based on a variation of the critical incidents technique involving recalled commercial rumors, the results conform to rumor theory in terms of the psychological and situational factors (i.e. anxiety, importance, credulity, and uncertainty) underlying rumor transmission, and offer support for our proposed rumor model. The findings also highlight the prevalence and potentially negative impact of rumors in marketing sectors. As an initial attempt to discern cross-cultural differences in commercial rumor activity, preliminary findings suggest differences in effectiveness of marketing communication tactics for rumor control across the two country samples studied. Overall, the provision of requested information and attempts to increase trust emerged as the most effective rumor control tactics.     

Intraindustry marketing strategy effects on the analysis of firm performance

Data aggregation across industries has been shown to be inappropriate in describing correlates of business firm performance. This study examines firms performing a similar function within one industry and suggests a further qualification to this analysis; it may be necessary to account for dominant and varying marketing strategies when estimating performance equations in some industries.     

The OFDI patterns and firm performance of Chinese firms: The moderating effects of multinationality strategy and external factors

The purpose of this paper is to examine how multinationality strategy, home political influence, and host-country risk explain the performance consequences of OFDI patterns of firms in the most important emerging economy, China. Two main patterns of OFDI (‘born global’ natured multiple simultaneous and IP-natured gradually growing) have been dominant in China during its first OFDI as a latecomer. In contrast to the conventional IP argument, we hypothesize that the multiple simultaneous pattern of a born-global nature leads to better performance. We also hypothesize that firm multinationality strategy and home political influence play greater roles in enhancing the performance effect of the multiple simultaneous pattern than another pattern, i.e., IP-natured gradually growing pattern. Using panel data of 4619 observations from 261Chinese publicly listed firms from 1991 to 2011, we find a superior performance effect for the multiple simultaneous pattern. Further, we find a greater moderating effect of firm multinationality strategy and home political influence affecting the OFDI and performance relationship undertaken by the multiple simultaneous pattern than by the gradually growing pattern. Our study extends understanding of OFDI patterns in emerging economies and suggests that the analysis of performance consequences should focus on external and firm factors that may facilitate the performance effect.     

Volunteering personal information on the internet: Effects of reputation, privacy notices, and rewards on online consumer behavior

Accurate personal information provision is one of the most important determinants of the commercial development of the Web. However, consumers are usually reluctant to provide personal information or tend to provide false information online because of their concern about privacy violation risks. We employ a 2× 2× 2 experimental design to examine the effects of reputation, privacy notices, and rewards on online consumer behavior in volunteering two types of personal information on the Internet: demographic information and personally identifiable information. We discuss the theoretical and practical implications of the findings.     

Consumer social voice in the age of social media: Segmentation profiles and relationship marketing strategies

Service failures, once handled quietly by customer service departments, are now played out on a highly public social media stage. These failures can result in not only the loss of a loyal consumer but also can negatively affect relationships with those watching the dialogue between disgruntled customers and organizations. The phenomenon of seeking resolution to service failures online is distinct from both traditional word-of-mouth and voice behaviors. This article introduces social voice: public complaining behavior that aims to change the behavior of the organization. A qualitative methodology defines eight dimensions of social voice and categorizes them by the strength of the relationship to the organization. Results indicate that appropriate response strategies differ based on social voice segment.     

The effects of firm size and firm performance on CEO pay in Canada: A Re-Examination and Extension

Using insights from academic and practitioners' perspectives and recent data, this paper extends the literature by using pay variables that are typically used by practitioners, including those not studied in previous academic research. Consistent with previous findings, firm size, measured by three-year average revenues, has strong effects on CEO pay. However, the relationship is not the same for firms of different sizes. Revenue elasticity is strong among small companies and disappears for medium and large companies. Firm performance, measured by accounting-based measures (return on assets and return on equity), and market-based measures (total shareholder return and shareholder value), have little effects on CEO cash compensation, but strong positive effects on equity compensation. Implications for research and practice are discussed.     

Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM

This study examines how social media technology usage and customer-centric management systems contribute to a firm-level capability of social customer relationship management (CRM). Drawing from the literature in marketing, information systems, and strategic management, the first contribution of this study is the conceptualization and measurement of social CRM capability. The second key contribution is the examination of how social CRM capability is influenced by both customer-centric management systems and social media technologies. These two resources are found to have an interactive effect on the formation of a firm-level capability that is shown to positively relate to customer relationship performance. The study analyzes data from 308 organizations using a structural equation modeling approach.     

客户集中度、存货周转对电子元件企业绩效的影响实证研究

选取2013—2017年电子元件企业上市公司的面板数据,使用Eviews10软件选用OLS方法研究客户集中度、存货周转对电子元件企业绩效的影响。实证研究发现,客户集中度的提升,不利于电子元件企业绩效的提升;存货周转的加快,有利于企业绩效的提升。研究结果对于电子元件企业的科学管理、创新发展具有一定的指导作用。     

The continuing debate on firm performance: A multilevel approach to the IT sectors of Taiwan and South Korea

In the economics and strategy fields, researchers seek to understand the antecedents of firm profitability. How and why do certain private enterprise firms develop competitive advantages in environments of rapid technological change while other firms do not? This study extends recent variance decomposition research in three ways. First, this work compares IT sectors in Taiwan and South Korea by using the Standard & Poor's Compustat® Global Vantage database. Second, this investigation tests industry and firm effects using both the multilevel approach of hierarchical linear modeling (HLM) and the conventional variance components approach (VCA). Third, this study explores the question of why there are significant profitability differences among technological firms even with similar industrial structural characteristics and leveraged resources and capabilities in the same IT industry. This study uses data from the U.S. Patent Office to estimate technological diversification at the level of firm resources for knowledge-based relatedness for the IT firms of Taiwan and South Korea. The empirical results find that firm effects have great impact on performance of the IT sectors of Taiwan and South Korea when estimated by either HLM or VCA. However, industry effects dominate firm effects on South Korea's IT sectors when the variance is estimated by HLM. From the perspective of conducting patents innovation, both of the specialized and diversified corporate strategies are matter to the development of these IT sectors, and South Korea's IT firms are more technologically diversified than those firms in Taiwan.     

Assessing the effects of corruption and crime on firm performance: evidence from Latin America

This paper uses a survey of private firms to assess the effects of corruption on the economic prospects of firms. The paper studies whether corruption and crime affect sales, investment and employment growth at the firm level, and whether bribes and illegal payments by firms reduce bureaucratic interference. The paper finds that corruption and crime substantially reduce sales growth and that the reported levels of corruption and bureaucratic interferences are positively correlated at the firm level. Overall, the results of the paper suggest that corruption and crime substantially reduce firm competitiveness and that corruption is unlikely to have any positive effects.     

Brand name recall: A study of the effects of word types,processing, and involvement levels

This study extends prior research on brand naming by comparing recall for five types of words in various involvement and processing conditions. Experimental findings show that the differences in recall are higher when there is semantic processing than when there is sensory processing. Involvement is not significant and hence provides no advantage for brand name recall. Several significant interactions among word types and information processing are also observed that extend prior findings in marketing and branding. More specifically, the results showed different recall pattern for the word types between semantic and sensory processing which was not observed in academic literature. Finally, the paper discusses implications for the naming of new products.     

The effects of entrepreneurial orientation and marketing information on the performance of SMEs

In this study, we investigate the effects of entrepreneurial orientation and marketing information on the performance of small and medium-sized enterprises. We build and test a causal model using data obtained from Singaporean entrepreneurs and find support for most of our hypotheses. The results indicate that entrepreneurial orientation plays an influential role on the acquisition and utilization of marketing information, and also has a direct effect on firm performance. The utilization of information regarding marketing mix decisions (particularly the Promotion and Place elements) positively affects firm performance, and it partially mediates the relationship between entrepreneurial orientation and firm performance. The implications and future research directions are discussed.