Listed peers' giving and corporate philanthropy: The motivations to imitate

The impact of industrial peers' donations on firms' charitable practices has been tested and verified in existing literatures. This paper further studies the motivations and scenarios of non-listed companies to imitate their listed counterparts in the same industry to formulate charitable policies. Deeply rooted in institutional isomorphism theory, uncertainty and professional networks are employed as philanthropic motives for unlisted companies to mimic their listed peers. Managerial decision mechanisms and network status perceptions enhance imitation by reinforcing decision uncertainty and network effect. Institutional environment heterogeneity can amplify or reduce the imitative stimulus of managers' decision mechanisms and status perceptions. Our empirical tests are based on a unique dataset of 14,873 unlisted firms and their corresponding listed counterparts in China from 2006–2016, and use Tobit regression methods. The results show a significantly positive association between listed peers' giving and non-listed firms' donation. The peer effects are intensified when non-listed firms' decentralized decision-making and higher managers' status identification are present. Furthermore, when the institutional environment changes from weak to strong, the impetus of decentralized decision-making and status identification will be weakened. These findings contribute to the corporate philanthropy literature and facilitate the development of effective corporate charity policies and government promotion of philanthropic responsibility.     

The message in the box: how exposure to money affects charitable giving

Does donation box transparency matter in regard to donation behavior? The purpose of this research is to test the effect of donation box transparency on potential donors’ charitable behavior. In a series of experimental studies, including a field experiment, data were collected on willingness to donate and donation amount in three treatments: a wooden donation box (opaque condition), transparent donation box containing very little money, and transparent box almost full of money. Participants in the transparent box treatment were both less willing to donate money and they donated less money compared to subjects in the opaque box treatment. Moreover, data was collected to demonstrate that participants in the transparent box conditions experienced a heightened state of self-sufficiency due to the effect of money exposure. Implications are discussed for theory development and future research avenues and in terms of practical considerations for charity organizations.     

Correction to: The message in the box: how exposure to money affects charitable giving

Marketing Letters - The original version of this article unfortunately contained a mistake. Carter A. Mandirk was not listed among the authors.     

Identity motives in charitable giving: Explanations for charity preferences from a global donor survey

Millions of charities compete for donor dollars, yet why people prefer to give to particular charities remains poorly understood. Informed by the social identity approach, and using mixed methods, we analyzed open-ended responses from a global donor survey (N = 1,849 from 117 countries) to understand why participants see their favorite charity as important, and how identities influence charity preferences. Nine subthemes were generated under two overarching themes: Self and Other. Theme prevalence and charity category were not independent: donors were more likely to explain giving to religious and research charities in relation to the self, but to explain giving to social service, animal, or international charities in relation to the other. We also present an inventory of the identities that consumers use to inform their giving. Together, findings show the importance of identities in charitable giving and demonstrate how consumer motives depend on the cause or beneficiary.     

Customer complaint situations: An equity theory perspective

The purpose of the study was to determine the effects of equity and outcomes in customer complaint situations. The study utilized a 2 × 2 within-subjects design with equity (inequity, equity) and outcomes (low, high) as the independent variables. The dependent variables were perceived equity, behavioral intentions, resentment, and guilt. Subjects were 128 students from a large western university. It was hypothesized that high outcome situations would be perceived as more equitable than low outcome situations, regardless of equity condition; high outcome situations would yield more favorable behavioral intentions, regardless of equity condition; subjects would perceive more resentment in inequitable, low outcome situations; subjects would perceive more guilt in inequitable, high outcome situations. Hypotheses 1, 2, and 3 were supported. Hypothesis 4 was not supported. Implications for customer complaint handling practices were discussed. © 1995 John Wiley & Sons, Inc.     

An investigation of the power of emotions in relationship realignment: The gift recipient's perspective

This study investigates the types of emotions that link a broad spectrum of idiosyncratic, gift‐exchange experiences with specific relationship realignment outcomes. Content analysis and analysis‐of‐variance procedures are used to assess the link between emotions and gift recipients' perceptions of relationship quality. The results demonstrate that rather than the overall amount of felt emotions, it is the balance of positive and negative emotions that is associated with specific relationship outcomes. It also appears that coping processes allow individuals to realize an overall neutral or positive outcome for the relationship, even if negative emotions are experienced. Moreover, different patterns of emotions characterize each of five different relational outcomes of the gift‐receipt experience. These results have theoretical and practical implications for gift exchange as well as other emotion‐laden marketing relationships, such as those found in services and personal selling contexts. © 2004 Wiley Periodicals, Inc.     

What fuzzy requests bring to frontline employees: An absorptive capacity theory perspective

This study uses absorptive capacity theory to construct a model to explain how frontline employees learn from customers’ fuzzy requests and then improve their performance. The research model is empirically examined using data collected from 364 hotel front desk service employees and further analyzed through a structural equation model. The study shows that request severity significantly influences need recognition, experience assimilation, concept transformation and inertia change. Request legitimacy has a positive effect on need recognition, experience assimilation, concept transformation, inertia change and cost assessment. Performance is positively affected by experience assimilation, concept transformation, inertia change and cost assessment. Some meditation and moderation effects are also identified. This study is the first to reveal the positive effects of fuzzy requests. These findings may help managers better handle and utilize fuzzy requests, with implications for organizational policy and for the support of frontline employees.     

A regulatory-focused perspective on philanthropy: Promotion focus motivates giving to prevention-framed causes

This research employs the framework of regulatory focus theory to examine effectiveness of donation appeals using managerially controllable variables, with results demonstrating objective and implementable outcomes. The results indicate that while individuals' promotion (vs. prevention) focus motivates philanthropic giving, it is prevention-framed (vs. promotion-framed) causes and appeals that garner greater support from donors. Moreover, we demonstrate that individuals' promotion focus motivates giving to prevention-framed causes more than to promotion-framed causes. This counter-intuitive finding that persuasion of philanthropy does not function through a traditional regulatory-fit paradigm is an insight with both theoretical and managerial implications. This research leads to the recommendation that to enhance the effectiveness of donation appeals, non-profit managers need to consider message framing, specifically the use of a prevention-framed appeal and a target market of prospective donors with a chronically dominant or situationally activated promotion focus.     

How to give and receive: An exploratory study of charitable hybrids

Most charitable organizations can only rely on appeals to purely philanthropic motivations in attempting to solicit donor contributions. The decision processes exhibited by the targets of charitable solicitations are very different from those the same individuals use in making daily purchase decisions. Although both charitable giving and purchase contexts have been studied extensively, there are numerous organizations that require targeted customers to use a decision process that merges elements of both domains. Charitable hybrids, such as museums and universities, are such organizations, supplementing traditional revenue streams by soliciting charitable contributions, thus evoking a complex consumer decision process. For these firms, giving good service may yield an added benefit of maximizing charitable contributions received. Drawing on both the services and charitable giving literatures, a model of the consumer decision process is developed in this hybrid situation. In an exploratory test of the model, initial evidence is found that both classes of effects have significant influence on donors' intentions to give. However, in charitable giving contexts, organizational identification appears to fill a central role in influencing decision outcomes, which diminishes the role of satisfaction. The findings provide provocative evidence that further research in this setting is warranted. © 2002 Wiley Periodicals, Inc.     

Situational determinants of software piracy: An equity theory perspective

Software piracy has become recognized as a major problem for the software industry and for business. One research approach that has provided a theoretical framework for studying software piracy has been to place the illegal copying of software within the domain of ethical decision making assumes that a person must be able to recognize software piracy as a moral issue. A person who fails to recognize a moral issue will fail to employ moral decision making schemata. There is substantial evidence that many individuals do not perceive software piracy to be an ethical problem. This paper applies social exchange theory, in particular equity theory, to predict the influence of situational factors on subjects' intentions to participate in software piracy. Consistent with the predictions of equity theory this study found that input and outcome situational variables significantly effect a person's intentions to commit software piracy.Richard S. Glass is an Assistant Professor of Computer Information Systems at Bryant College in Smithfield RI. His current research interests include the ethical use of information technology, decision making, decision support systems and expert systems.Wallace A. Wood is a Professor of Computer Information Systems at Bryant College in Smithfield RI. His current research interests include the ethical use of information technology and the effective use of information systems.     

Ethics in organizations: A framework for theory and research

In a climate of increasing interest and activity within the field of business ethics, as yet there exists no coherent conceptual framework for organizational theory and research. From a review of current thinking and previous writings a framework of concepts is suggested to help set an agenda for empirical research. The elements of this are, first, a taxonomy of ethical domains: the foci of organizations' and their agents' ethical concerns and conduct. Second, it is considered how ethical functioning might be analysed in terms of causal relationships between expressive forms, voluntary action and instituted forms. Third is discussed ethical process, the means by which ethical awareness is aroused. Fourth and last, the paper examines how normative evaluations might apply to the ethical condition of organizations and their agents, meaning change or stability in reputation and integrity. At each stage of the argument possible objectives for research are developed.Professor Nigel Nicholson is Chairman of the Organisational Behaviour Group and Director of the Centre for Organisational Research at London Business School. Previously, he led investigations into Individual and Organisational Change at Sheffield University's Social & Applied Psychology Unit, and has also held visiting appointments at American, Canadian and German universities. He has published 8 books and over 65 articles on a wide range of topics, and been honoured with an award from the Academy of Management for his contribution to theory.     

Stock prices and exchange rate dynamics in Nigeria: An asymmetric perspective

This paper investigates the asymmetric effect of exchange rate changes on stock prices in Nigeria. Using the nonlinear ARDL framework and monthly data from 2000:1 to 2016:12, the nominal exchange rate is separated into currency depreciation and appreciation through a partial sum decomposition process. Asymmetry is examined both in the long-run relationship and short-run error correction mechanism. The results show that the effects of exchange rate changes on stock prices is asymmetric both in the short- and long-run. That is, stock prices react in different magnitude to depreciation and appreciation. However, currency depreciation has a strong pass-through effect on stock prices than appreciation in the long-run. In the absence of asymmetry, exchange rate has only short-run effect on stock prices. This implies that the symmetry assumption underestimates the impact of exchange rate changes on stock prices in Nigeria.     

Knowledge diffusion in the African context: An institutional theory perspective

Multinational companies have been increasing their investments in Africa as they become aware of the high returns available there. These investments often require relations with African partners and rely on knowledge transfer for their success. For these relations to be successful, we argue that multinationals must eschew the knowledge‐transfer approaches that reflect the ethnocentric assumption that codifiable knowledge can be disseminated with little regard to the unique circumstances of the African context, and by disregarding culturally embedded tacit knowledge. This article offers the conceptual lens of institutional theory as a way to improve the processes of knowledge diffusion and learning. We show how this theory can lead to a better understanding of the process of knowledge diffusion within the African context by requiring foreign investors and expatriates to improve their understanding of the African business environment. We then assess the role of boundary spanners in the diffusion process and identify some circumstances that might impinge on knowledge diffusion. © 2006 Wiley Periodicals, Inc.     

The financial impact of loyalty programs in the hotel industry: A social exchange theory perspective

With increased competition across the hotel industry for frequent travelers, who generate a disproportionate portion of revenue, loyalty programs appear to be a rational response to the competitive environment. The question remains, however, as to whether these programs are effective at increasing the profitability of hotel operators. This study analyzes the impact of customer loyalty programs on the industry specific performance metrics of occupancy rate, revenue, and operating margin. Utilizing a comprehensive database of 36 different hotel brands (e.g., Marriot, Hilton) encompassing 31 loyalty programs and 435 different hotel properties, we examine whether a loyalty program is indeed an effective tool to increase operating margin. In summary, empirical results suggest that investment in hotel loyalty programs has a positive impact on occupancy rates and profitability. And although the overall effect is modest, these results have several managerial implications for the hotel industry.     

Triple-testing the quality of multinationality–performance research: An internalization theory perspective

The international business literature has suggested various linkages between multinationality (M) and performance (P). A number of authors have recently put forward an S-shaped curve, allegedly describing a generalized MP relationship. However, internalization theory, in line with Buckley and Casson (Buckley, P.J., & Casson M. (1976). The future of the multinational enterprise. Macmillan: London) and Hennart (Hennart, J. F. (1982). A theory of multinational enterprise. Ann Arbor, University of Michigan Press; Hennart, J. F. (2007). The theoretical rationale for a multinationality–performance relationship, Management International Review, 47(3), 423–452), challenges the concept itself of such a generalized relationship between these two parameters. This paper adopts an internalization theory perspective, meant to improve the design of MP studies, and cautions against assuming too quickly a generalized MP relationship. In line with internalization theory, we argue that firm-level performance depends primarily on the characteristics of the companies’ firm specific advantages (FSAs) rather than on their degree of multinationality. We propose triple-testing the quality of MP studies, by assessing how well they address the various challenges related to conceptualizing and measuring M, P and the MP relationship itself.     

An investigation into apprenticeship completion and retention in Northern Ireland: a social exchange perspective

This paper investigates effective strategies for enhancing completion rates of apprentices and their retention after completing their training. The study was cross sectional and qualitative, involving semi‐structured interviews with managers and four focus groups involving current and completed apprentices from within the engineering sector. The findings revealed that the factors that can enhance intentions of completing an apprenticeship were perceived organisation support (POS) factors such as apprentice pay, recognition and employer support. Leader Member Exchange (LMX) factors such as support from trainers and supervisors, would increase their intentions to complete an apprenticeship and stay on with an organisation after training. The key Percieved Organisational Support factors that would enhance intentions to stay with the organisation after completion were post apprenticeship pay, career progression and challenging and interesting work. Participants with high Perceived Organisational Support and Leader‐Member Exchange, had higher intentions of completing an apprenticeship and staying with the employer after completion and vice versa. This research added to the literature on apprenticeships as it analysed the factors influencing current and completed apprentices’ intentions to discontinue or complete an apprenticeship and stay with or leave their employer after completion through the lens of social exchange theory (SET) (Blau, 1964). This is unlike previous studies that emphasised motivation theory. Social Exchange Theory was supported as both employers and apprentices weighed the costs and benefits of their relationship which impacted on their completion and retention choices. The implication of this study is that employers should develop effective strategies for enhancing completion and retention rates to reap the full benefits from apprenticeships.     

Developing strategies for global markets: An evolutionary perspective

As the global landscape becomes populated by an increasingly diverse array of companies of different sizes, from different industries and of varied national origins, developing a strategy to compete effectively in global markets becomes ever more complex. How can companies of all kinds compete effectively in an increasingly diverse global landscape? The authors suggest that the appropriate response depends on a firm's level of involvement in international markets: whether a firm is just entering international markets, is aggressively expanding its international presence or is attempting to rationalize far-flung global operations. Focusing on three different industries, processed foods, automobiles and motor scooters, the authors identify appropriate strategies for leveraging competitive advantage at each phase of international involvement. They show how three paramount tasks, learning, building and leading, must evolve through each phase.     

How foreign knowledge spillovers by returnee managers occur at domestic firms: An institutional theory perspective

Instead of treating the spillover process as a black box, this paper conducts a qualitative study of foreign knowledge spillovers by returnee managers at Chinese firms. Unlike mainstream spillover studies which adopt economics approaches, this paper uses an institutional theory perspective and regards returnee managers as boundary spanners. Results show that returnee managers' boundary-spanning activities in the form of social interaction, including building relationships with colleagues and transforming their identities from outsiders to insiders, help gain legitimacy for their new roles. Their boundary-spanning activities in the form of grafting foreign knowledge, including understanding existing knowledge resources, introducing foreign knowledge to colleagues, and integrating foreign knowledge with domestic firms, help gain legitimacy for foreign knowledge. Foreign knowledge' contributions in new product development at product, process, and cultural perspective levels reinforce its institutionalization at domestic firms. Absorptive barriers include domestic firms' administrative heritage and returnee managers' arduous relationship with others.     

Adolescent injuries in relation to economic status: An international perspective

The primary objective of the study was to examine the relationship between patterns in car-to-car crashes involving young drivers and car and driver characteristics and the research design was a national register-based prospective cohort study. Individual records in a cohort born 1970 – 1972 are linked to road-traffic-crash data (1988 – 2000). Subjects' first police-registered two-car crash leading to severe or fatal injury (n = 4875) are identified. Typical crash patterns are highlighted and associations between pattern and both car and individual socio-demographic characteristics are tested. Four crash patterns are highlighted. Male drivers and those with lower educational attainment are over-represented in all patterns. Pattern-based risk levels vary considerably according to car safety level and driver's age at time of injury and socio-economic status. Crash patterns might be considered in young adult driver education systems, bearing in mind the consistent higher risks of male drivers and of drivers with lower educational attainment.     

Exposure to the new wave of offshoring: An unemployment perspective

This paper examines the impact of increasing service offshoring in a two‐sector economy. We find that it leads to lower domestic unemployment if the marginal task‐specific offshoring cost in the service sector is sufficiently large. Under this condition, the jobs created due to enhanced productivity outweigh the jobs that are destroyed. The reduction in unemployment increases the cost of hiring domestic workers, thus encouraging firms in the manufacturing sector to increase their offshoring scale and productivity. This, in turn, increases their cost savings and may lead to a further decrease in unemployment. Hence, complementarity between two sectors’ offshoring activities may emerge. We calibrate the model using economic parameters from Belgium, and the calibration results predict varied unemployment trends and impacts on manufacturing‐sector offshoring activities with different task‐specific offshoring cost schedules.