Are we overconfident in executive overconfidence research? An examination of the convergent and content validity of extant unobtrusive measures

Building understanding of overconfident executives is central to a growing literature that spans a number of disciplines. Much of this research has utilized unobtrusive, or indirect, measures to assess executive overconfidence from secondary data sources. We analyze the convergent and content validity of seven extant unobtrusive measures of executive overconfidence. The results of our analyses indicate that these measures do not exhibit adequate convergence, suggesting that existing measures are not measuring the same construct. Further, we administer a sort task to academic colleagues to assess whether scholars believe that the seven measures are adequately assessing the intended construct. The results of our sort task indicate that scholars did not categorize any of the seven measures as sufficient for measuring overconfidence. We conclude with suggestions for future research to address the inadequate convergent and content validity found in our assessment of extant measures of executive overconfidence.     

Who are the Stakeholders Now? An Empirical Examination of the Mitchell, Agle, and Wood Theory of Stakeholder Salience

Two environmental accidents in the mining industry provide the context for this study of the Mitchell, Agle, and Wood (1997, The Academy of Management Review 22, 853–886) analysis of stakeholder salience. I examine the reactions of two stakeholder groups: shareholder response is examined in terms of changing share returns and risk; management response through change in disclosure. I find the two decision-makers reacted at different times. Management responded to the first accident, though not the second. Shareholders responded to the second accident alone. My findings support the Mitchell, Agle, and Wood (MAW) assertion that stakeholder status is impermanent, and determined through the eyes of the decision-maker.     

An Ambassador for Culture and Peace with the Aim to Better the World— Zhang Zhengqun, Chairman of Singapore Bride of the World Organization, and President of International BOW Committee

Forty-four years ago,a diligent Chinese student graduated from National University of Singapore (NUS) with a Bachelor of Science degree,and also had outstanding performance in courses including finance,marketing,management and languages like German,Japanese and French.     

The growth,development and management of J. & P. Coats Ltd,c.1890–1960: An analysis of strategy and structure

The purpose of this article is to investigate the management of one of Britain's most important multinational companies, J. & P. Coats Ltd, in the period 1890–1960, a topic which has not hitherto been examined in detail. In particular, the article examines the system of committees that the enterprise used to control and direct its disparate empire over the time period concerned. As a theoretical focus, the study compares what is found in the writings of Alfred D. Chandler, Jr., who held that, in general, British family capital and management inhibited business growth and development, especially when compared with firms in the USA. The article concludes that Coats did not fit this interpretation. It provides the first in-depth study of the management of one of Britain's largest and most successful multinational companies, clarifying the relationships between organizational structure and financial arrangements, concluding that Coats' approach to management, although in some ways unique, was appropriate to its aims.     

Seamless experience in the context of omnichannel shopping： scale development and empirical validation

In recent years, delivering a superior seamless experience (SE) for customers has become one of the most crucial aspects of omnichannel marketing for omnichannel retailers. However, research lacks a common understanding of what the SE is and how customers evaluate the SE throughout their omnichannel shopping journeys, and the effects of the SE on important customer behaviors remain unexplored. Drawing on omnichannel customer experience research, following the scale development process, this research conceptualize and develop a scale to measure the SE construct. Building on the customer experience quality framework, this research further examines the effects of customers’ prior SE on repurchase intention, word of mouth (WOM), and customer influence behavior in the omnichannel shopping context. The SE scale is developed and validated by performing 15 semi-structured interviews, 62 open-ended questionnaires, and three online surveys with 884 useable respondents in total. The effects of SE are then validated via partial least squares modeling with 307 useable respondents. The findings confirm that the SE construct is a formative second-order construct composed of six reflective first-order dimensions. Our empirical findings indicate that the overall SE has a direct and significant impact on the foregoing three customer behaviors. Managers can use the SE scale as an effective omnichannel approach to design a seamless shopping journey and maintain long-term relationships with customers.     

Development and validation of the Agents’ Socially Desirable Responding (ASDR) scale

While the marketing discipline has advanced knowledge by augmenting objective measures of marketing performance with survey-solicited subjective measures, it has not adequately attended to potential response biases. The authors’ review of the literature highlights the need for a valid measure of socially desirable responding that can be used in detecting social desirability bias in managers’ responses to subjective performance measures. Agents’ Socially Desirable Responding (ASDR) scale development and validation procedures are described. Validation efforts reveal the psychometric properties of the eight-item ASDR scale and provide evidence of its utility.     

On the Eve of the Enforcement of the Arbitration Law——An interview with Xu Dayou, vice-chairman of China Council for the Promotion of International Trade and of the China International Economic and Trade Arbitration Commission

The Arbitration Law of the People's Republic of China will go into effect on September 1, 1995, which has become the focus of world attention. This is an important law promulgated by China for handling economic disputes. All the parties concerned are making intense preparations for the successful enforcement of the Law. As the first nongovernmental organisation engaged in arbitration affairs, the China Council for     

Product safety and product liability — An analysis of the EEC Council Directive of 25 July 1985 on the approximation of the laws,regulations, and administrative provisions of the Member States concerning liability for defective products

After more than ten years of fierce European product liability debate, the Council has finally promulgated the Directive 85/374 in an attempt to harmonize Member State law about the responsibility for defective products. The directive starts out from the principle of strict liability, but allows certain exceptions mostly concerning the so-called state of the art which, however, according to the author should be narrowly interpreted. Compensation due to the consumer because of damage suffered from a defective product includes both personal injury and property damage, but does not expressly allow for pain and suffering. The directive gives Member States power to have (global) ceilings for personal injury compensation, and contains rigid limitations for property damages. Implementation of the directive must be undertaken by the Member States by August 1, 1988, but leaves it to their discretion to have different rules concerning liability for agricultural products and for development risks, thus putting law approximation in danger. In his conclusion, the author is of the opinion that the directive is less a means to protect the consumer in the event of damage than a means of regulating safety aspects of products freely circulating in the Common Market. It is the task of the judges — of the Member States and the European Court of Justice — to determine the safety standards of products and to harmonize these within the EEC.

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Produkthaftung und Produktsicherheit — Eine Analyse der Richtlinie des Rates vom 25. Juli 1985 über die Angleichung der Rechts- und Verwaltungsvorschriften der Mitgliedstaaten über die Haftung für fehlerhafte Produkte (85/374/EWG)

Zusammenfassung Die nach über zehnjähriger heftiger Diskussion erlassene Produkthaftungsrichtlinie der Europäischen Gemeinschaft führt eine verschuldensunabhängige Fehlerhaftung des Herstellers und ihm gleichgestellter Personen für gefährliche Produkte ein. Der Fehlerbegriff knüpft dabei an die erwartbare Sicherheit an, ist also aus Abnehmersicht zu definieren. Im Zuge eines Kompromisses ist die strikte Fehlerhaftung allerdings von Ausnahmen durchlöchert worden, die vom Autor kritisch analysiert and angesichts des Zweckes der Richtlinie einschränkend ausgelegt werden. Die Ersatzansprüche des geschädigten Verbrauchers umfassen sowohl Personenwie auch Sachschaden, weisen jedoch empfindliche Einschränkungen auf, etwa die nicht ausdrückliche Gewährleistung von Schmerzensgeld, die Möglichkeit, globale Haftungshöchstgrenzen für Personenschäden vorzusehen, und die Selbstbeteiligung bei Sachschäden.Die Richtlinie ist bis zum 1. August 1988 von den Mitgliedstaaten umzusetzen, erlaubt jedoch Sonderregeln im Bereich der Haftung für landwirtschaftliche Produkte und Entwicklungsrisiken, die dem Vereinheitlichungszweck im Wege stehen. Angesichts der geringen praktischen Relevanz des Kompensationsgedankens in der Richtlinie kommt der Autor zu dem Schluß, daß sie primär als Sicherheitsregelung für gefährliche Produkte in der EG anzusehen ist. Die Bestimmung der Standards obliegt dabei letztendlich den nationalen wie europäischen Gerichten, die gleichzeitig auf eine Optimierung des Sicherheitszieles und auf eine Vereinheitlichung des Haftpflichtrechts im Interesse des freien, ungestörten Warenverkehrs zu achten haben.

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Norbert Reich is Professor of Civil Law at the University of Bremen and Managing Director of the Centre for European Legal Policy, Universitätsallee GW1, D-2800 Bremen 33, FRG. He wants to express his thanks to Hans-Claudius Taschner of the EEC Commission as well as to his colleagues Gert Brüggemeier, Hans Micklitz, and Lesley Jane Smith for valuable help and criticism.     

Is the learning community of economics and accounting effective? Empirical assessment of class achievements

Learning communities are increasingly used at colleges and universities, as one of the goals of a learning community is to increase interaction among students and teach them how to apply knowledge. The goal of this research is to assess the learning community of the economics and accounting students in their class performance measured by class grades. By controlling individual characteristics (e.g., gender, high school performance, First Year Experience program) and class-related characteristics (e.g., instructor and major), the authors found that the learning community of economics and accounting, which is organized into both economics and accounting classes on a back-to-back basis, is no more effective for class grades than for non–learning community students.     

Does Religion Affect the Materialism of Consumers? An Empirical Investigation of Buddhist Ethics and the Resistance of the Self

This paper investigates the effects of Buddhist ethics on consumers’ materialism, that is, the propensity to attach a fundamental role to possessions. The literature shows that religion and religiosity influence various attitudes and behaviors of consumers, including their ethical beliefs and ethical decisions. However, most studies focus on general religiosity rather than on the specific doctrinal ethical tenets of religions. The current research focuses on Buddhism and argues that it can tame materialism directly, similar to other religions, and through the specific Buddhist ethical doctrines of the Four Immeasurables: compassion, loving kindness, empathetic joy, and equanimity. The empirical results show the following: (1) Buddhism reduces materialism directly and through some of the Four Immeasurables, and (2) despite the doctrine of non-existence of the self, positive emotions toward the self are still present, and the self absorbs the effects of Buddhist ethics on materialism. The latter finding suggests a “resistance of the self” that is coherent with the idea of a consumer who leverages the self to go beyond it.     

“Service Encounter 2.0”: An investigation into the roles of technology,employees and customers

The service encounter – one of the foundational concepts in service research – is fundamentally changing due to rapid evolutions in technology. In this paper, we offer an updated perspective on what we label the “Service Encounter 2.0”. To this end, we develop a conceptual framework that captures the essence of the Service Encounter 2.0 and provides a synthesis of the changing interdependent roles of technology, employees, and customers. We find that technology either augments or substitutes service employees, and can foster network connections. In turn, employees and customers are taking on the role of enabler, innovator, coordinator and differentiator. In addition, we identify critical areas for future research on this important topic.     

An Investigation into the Meaning of the Term Commitment in Sino Foreign Higher Educational Alliances—An Adventure into the Heart and Soul of Successful Alliances

Abstract

There is now a substantial body of research evaluating various aspects of educational alliances between Chinese and foreign universities, and one of the key aspects of success seems to be the degree of commitment made by the two sides. Yet the term commitment continues to remain elusive and very broad in scope. This paper attempts to identify what commitment meant to managers from a number of Chinese and foreign university alliances and concludes that it was a complex and deeply felt sentiment encompassing affective and cognitive aspects related to the personal and operational dimensions of an alliance over time. Commitment-in its various forms and guiseslay at the very core of a successful alliance. It enabled people-and their respective institutions-to devote considerable levels of emotional and cognitive energy to the alliance: it was about passion, and results; about enthusiasm and value; and about empathy and measurable quality.     

Italy and China:Trade,Culture and History An Interview with Antonino Laspina,Commissioner of the Italian Trade Commission's Beijing office

Italy is a modern, industrialized nation which has managed to preserve its traditional culture intact. It is China's old friend, and its long-time trade partner. In 2006, the Year of Italy in China, various measures were taken to broaden the scope of China and Italy's relationship, not only in terms of economic cooperation and trade, but also concerning historical and cultural awareness. What sort of new opportunities for cooperation will we be seeing in the new year? China's Foreign Trade interviewed Antonino Laspina, Commissioner of the Italian Trade Commission's Beijing office, about this question and more.     

Is the Red Dragon Green? An Examination of the Antecedents and Consequences of Environmental Proactivity in China

China is the world’s second largest economy and the largest emitter of carbon dioxide, yet we know little about environmental proactivity in the most populated country in the world. We address this gap through a survey of 161 Chinese companies with two respondents per firm (N = 322), where we seek to identify the antecedents and consequences of environmental proactivity. We identify two categorizations of environmental proactivity: Environmental operational improvements and environmental reporting. We find that ecological motivations and regulatory stakeholder pressure are positively related to both types of environmental proactivity, and external stakeholder pressure is negatively related to environmental reporting. Furthermore, we find that (1) if a firm is environmentally proactive (as it relates to either measure) and they are ecologically motivated, there is a positive and significant cost advantage, and (2) if a firm makes use of environmental operational improvement and they are competitively motivated, there is a positive and significant reputation advantage. Implications for researchers, managers, and policy-makers in China are discussed.     

Review of Guillaume Plantin and Jean‐Charles Rochet,When Insurers Go Bust: An Economic Analysis of the Role and Design of Prudential Regulation

When Insurers Go Bust applies agency theory and the theories of adverse selection and moral hazard as the motivation for prudential regulation of insurance. The resulting scheme has strong flavors of verifiability, simplicity, consistency, and transparency. In consequence, ruin theory does not have an operational role. Theory is applied in familiar ways that are at best convenient shorthand for correct ideas and at worst acceptably suggestive. As in other sources, there is inappropriate emphasis on the general theory of excessive risk‐taking, which tends to deflect attention from the specific nature of insurance firms, but the theoretical excess is adequately counterbalanced by thoughtful case studies. This book is useful for the insurance scholar and feasible as a segment of an advanced undergraduate course.     

Hi,May AI help you? An analysis of the barriers impeding the implementation and use of artificial intelligence-enabled virtual assistants in retail

Artificial Intelligence enabled Virtual Assistants (VAs) are evolving rapidly, offering promising opportunities to provide personalized shopping assistance and 24/7 frontline service. They can reduce the workload of human employees while delivering a seamless customer experience. Despite these benefits, the adoption of AI VAs as a retail marketing channel is patchy. The objective of this study is to reveal the multidisciplinary factors impeding the adoption of AI VAs in retail using the Fuzzy AHP method. Seven main barriers and thirty-seven sub-barriers are identified, classified, and ranked. Findings reveal that customer-related barriers are the most significant. These are followed by technical and financial barriers that retailers face in implementing AI chatbots.     

Are services advertised differently? An analysis of the relationship between product and service types and the informational content of their advertisements

This study examines the informational content of service and product advertisements and analyses the relationship between the amount and type of information in an advertisement and the type of product or service being advertised. The influence that service characteristics have on advertising strategy is still not well understood. One theory is that services need to be more tangible in order to assist in the consumer decision-making process and advertising can assist with this by providing factual information. The purpose of this paper is to establish whether this theory is recognized and adopted in advertising practice. This is achieved by performing a content analysis. The results indicate that product advertisements contain more information than services, which indicates a discrepancy between advertising theory and practice. The results also prove that there are variances in the amount and type of information included in product and service advertisements. The paper examines these variances and applies existing classification frameworks to explain them. Areas for further research are also identified.     

Is the system reliability profitable for retailing and consumer service of a dynamical system under cross-price elasticity of demand?

Retailing strategy is one of the most crucial factors for industries. A proper retailing strategy can help to enhance consumer service and increase the industry's profit. An improved approach to retailing is suggested in this research to deliver superior customer service while maximizing profits in a dynamic system. The study analyzes a retailing strategy for a demand with cross-price elasticity upon the retail price. A product's cross-price elasticity and the system reliability are critical factors in retailing. Understanding the cross-price elasticity of demand between products helps retailers to make pricing decisions that maximize profits by maintaining demand. Imperfect products are produced due to an imperfect production system. The imperfect ones must be adjusted with some costs to make them perfect for better retailing. The system failure rate is crucial for retailing under cross-price elasticity of demand patterns. Production system reliability, cross-price elasticity of demand, and consumer service are all essential factors that can impact a company's success in the market. The production rate is considered time- and system failure rate-dependent. Contradictory to the literature, a dynamical system is proposed for improved retail management, which is solved using the Euler-Lagrange theory. Finally, one can achieve the expected maximum profit for this retail system with optimum selling prices for different products by reducing the system failure rate. Some numerical illustrations with graphical representations are provided to validate the current study. Numerical examples show that applying cross-price elasticity of demand for more than two identical products provides 35% more profit for the retail industry than a single type of product.     

Between the firm and the market: An international comparison of the commercial structures of the cotton industry (1820–1939)

This article describes the ways in which cotton goods were commercialised during the nineteenth century and the first third of the twentieth. Several national cases are analysed: Britain as the Workshop of the World; France, Germany, Switzerland and the US as core economies; Italy and Spain as countries on the European periphery; and Japan as a successful export latecomer. The main question that we address is why some cotton industries vertically integrated their production and selling processes, but others did not. We present a model that combines industrial district size and product differentiation to explain why vertical integration was present in most cases and why there was vertical specialisation of production and selling in Lancashire, Lowell and Japan.