How contract enforcement reduces opportunism? The paradoxical moderating effect of interfirm guanxi

This study investigates the hitherto largely neglected effects of contract enforcement in interfirm relationship. Based on contract functions, we conceptualize contract enforcement as a two-dimensional construct comprising contractual control enforcement and contractual coordination enforcement. We examine how the effects of these two enforcements differ as the level of interfirm guanxi varies. The findings from a survey of 190 buyers in China suggest that both contractual control enforcement and contractual coordination enforcement mitigate sellers' opportunism. Moreover, contractual coordination enforcement is more effective in reducing opportunism when the interfirm guanxi is strong, whereas contractual control enforcement is more effective in reducing opportunism when the interfirm guanxi is weak. Our research contributes to both theory and practice by revealing the complex and paradoxical moderating role of interfirm guanxi.     

The moderating effects of economic development on innovation and shadow entrepreneurship: grey or pink?

There is currently a renewed surge of interest in informal entrepreneurship around the world. One of the motives stems from how such entrepreneurship shapes and influences a substantial part of the global workforce. However, we may also verify how a major proportion of the research in this field focuses on developing economies and thus justifying the application of such analytical approaches to countries with different levels of economic development as is the case with Europe. Our research objectives, on the one hand, involve analysing the impact of R&D investment on informal entrepreneurship and, on the other hand, the moderating effect of the level of economic development on their innovative capacities and informal entrepreneurship results. To this end, and in accordance with Global Entrepreneurship Monitor, we divide the countries of Europe into two stages of development and may report that the higher the level of economic development, the greater the innovative capacity and, furthermore, the lower informal entrepreneurship becomes. The same holds for R&D investment with its increase being inversely proportionate to informal entrepreneurship. We, therefore, seek to contribute toward a better understanding of the problematic framework of informal entrepreneurship, in particular in the European context.     

How to leverage the impact of R&D on product innovation? The moderating effect of management innovation

Although research and development (R&D) is a key indicator of (technological) innovation, scholars have found mixed results regarding its effect on product innovation and firm performance. In this paper, we claim that variations in R&D effectiveness can be explained by changes in a firm’s social system, in particular in its management innovation. It is still unclear how management innovation influences R&D effectiveness in terms of product innovation. In this study, we address this theoretical and empirical gap in the innovation literature. Our theoretical arguments and findings from a large-scale survey among Dutch firms show that R&D has a decreasingly positive relationship with product innovation, particularly for firms with low levels of management innovation. However, in firms with high levels of management innovation, this relationship becomes more J-shaped, especially in small and medium-sized firms. Our findings also appear to indicate that management innovation may be more important for competitive advantage than just R&D. Overall, our insights reveal that management innovation is a key moderator in explaining firms’ effectiveness in transforming R&D into successful product innovation.     

The moderating effect of brand strength in manufacturer–reseller relationships

This study investigates the moderating effect of brand strength in manufacturer–reseller relationships. The business marketing literature has not previously addressed brand strength differences. This research tests these brand strength differences on a conceptual framework consisting of pathways from manufacturer brand benefits (manufacturer support, brand equity and customer expectations) to reseller relationship outcomes. A multi-group structural equation analysis shows that there are no differences in the manufacturer brand support and brand equity effects on reseller satisfaction between major and minor brands. However customer expectations are important when resellers evaluate minor brands, but not for major brands. Furthermore, the findings show that resellers of minor brands are more committed to and more likely to trust manufacturers of minor brands.     

Entrepreneurial orientation and SME performance in China’s changing environment: The moderating effects of strategies

Recent research has found an inverted U-shape relationship between entrepreneurial orientation (EO) and firm performance in the Chinese context. Building on Miles and Snow??s (1978) strategy framework and Scott??s (1995) country institutional profile, we propose that prospector and analyzer strategies align better with entrepreneurial orientation to allow firms to fully benefit from their risk-taking, proactiveness, and innovativeness. Data collected from 155 SMEs in China confirmed that prospector and analyzer strategies alleviated the curve significantly. The defender strategy enhanced the curvilinearity, yet this moderating effect was insignificant. Implications for policy-makers, international businesses, and entrepreneurial firms in China are discussed.     

The effect of social capital on local suppliers’ exploitative and exploratory learning in global buyer–supplier relationships: the moderating role of contract specificity

Drawing on the theories of social capital (SC) and organizational learning, a contingency theoretical framework that examines the impact of structural, relational, and cognitive SC on local suppliers’ exploitative and exploratory learning in the context of global buyer–supplier (GBS) relationships in China was developed. The extent to which the impact is moderated by the contract specificity between the buyer and supplier is also examined. The empirical results show significant positive impacts of structural and relational SC on local suppliers’ exploitative learning but significant negative impacts on local suppliers’ exploratory learning. More specifically, contract specificity strengthens the positive effects of all three dimensions of SC on exploitative and the negative effects of structural SC and relational SC on exploratory learning. They put forward several potential implications for practicing managers and policymakers.     

Tit for tat? Abusive supervision and counterproductive work behaviors: The moderating effects of locus of control and perceived mobility

Previous research has identified both individual differences and perceived situational variables such as self-esteem and organizational justice as the antecedents of counterproductive work behaviors (CWB). This article focuses on employees’ perceived interpersonal interaction. More specifically, the relation between abusive supervision and subordinates’ counterproductive work behaviors toward the organization is examined. Using a sample of 198 dyads employees and their immediate supervisor (N = 396) from a multinational company in China, this research finds that abusive supervision results in increased levels of sabotage, withdrawal, production deviance, and theft. This research also examines the moderating effects of locus of control and perceived mobility on the relationships between abusive supervision and subordinates’ CWB toward the organization. The results suggest that locus of control moderates the relationship between abusive supervision and sabotage, production deviance and theft, but not abusive supervision and withdrawal; perceived mobility moderates the relationship between abusive supervision and withdrawal and theft, but not abusive supervision and sabotage and production deviance. Practical implications for human resource management are discussed.     

Manufacturer–reseller e-business arrangements: The impact of inequity on relationship performance and the moderating role of dependence

Manufacturer–reseller e-business arrangements are changing the nature of channel relationships. When manufacturers supply e-business tools to their resellers, resellers may perceive that the benefits of technology are not shared equitably. This research explores this issue by examining two technology based antecedents of perceived inequity from the reseller perspective. We also examine the impact of perceived inequity on relationship performance, and the moderating role of reseller dependence on the proposed inequity–performance link. The results of the empirical test involving a sample of 224 resellers suggest that perceived inequity negatively impacts relationship performance, while reseller dependence plays a moderating role. Implications of these findings for researchers and managers are discussed.     

The effect of upper echelons’ compensation on firm internationalization

This paper is built upon previous work concerning how three factors—an upper echelon’s compensation, the total compensation level of a chief executive officer (CEO), and compensation gaps between a CEO and a top management team (TMT)—affect a firm’s international expansion level. Using longitudinal data (2000–2005) from 528 publicly listed firms in Taiwan as our sample, we found that CEO total compensation level and TMT total compensation were positively related to firms’ international expansion level, and that the larger the compensation gap between CEO and TMT, the higher the given firm’s international expansion level. The implications that these findings have for future research are discussed.     

“Because you are a part of me”: Assessing the effects of salesperson social media use on job outcomes and the moderating roles of moral identity and gender

Although the effects of salesperson social media use have recently received significant scholarly attention, there remains critical research gaps that, if addressed, can further broaden our understanding of the impact of salesperson social media use in business-to-business settings. Grounded in construal level theory and the related psychological distance framework, we suggest that salesperson social media use increases salesperson inclusion-of-the-customer-in-the-self by reducing the psychological distance between the salesperson and their respective customers. More so, we posit that this relationship is positively moderated by salesperson moral identity, such that the relationship is strengthened at higher levels of moral identity. Furthermore, we identify a potential three-way interaction by considering the role of salesperson gender in driving this interactive relationship. Our results, based on survey responses from 158 business-to-business salespeople, lend support to our theoretical model and shows that the moderating effect of salesperson moral identity on the relationship between salesperson social media use and salesperson inclusion-of-customer-in-the-self is stronger for females than it is for males. Additionally, we find that salesperson inclusion-of-customer-in-the-self is related to higher salesperson customer knowledge, which, ultimately, improves salesperson performance. In the light of our findings, we discuss subsequent managerial and theoretical implications.     

The effects of the keiretsu on the export performance of Japanese companies: help or hindrance?

This study investigates the effect that membership in a financial keiretsu has on the export performance of Japanese manufacturing companies. Companies that belong to one of the six major financial keiretsu are found to have lower export ratios than similar companies who are not members. The negative effects of keiretsu membership appear confined to producer goods companies where intergroup linkages such as preferential trading relationships are tightest. Additional evidence from the producer goods sector showing that keiretsu members do less well on other measures of company performance supports the argument that the cartel-like properties sometimes ascribed to the keiretsu actually reduce competitiveness, thus dampening export performance. In general, the data do not support recommendations that non-Japanese companies might look to keiretsu-type alliances as an organizational strategy that will lead to competitive advantage in global markets. © 1998 John Wiley & Sons, Ltd.     

Creating relational rents: The effect of business groups on affiliated firms’ performance in Indonesia

This research attempts to extend the discussion of business groups in emerging economies by treating business groups as a form of interorganizational network that generates relational rents among affiliated firms by creating technological and managerial capabilities. Based on the relational view, this research investigates whether value created by business groups depends upon sharing, combining, and exchanging unique and specific resources or assets among affiliated firms. Results show that technological capabilities contribute to create relational rents in terms of affiliated firms’ investment in R&D and human capital. Managerial capabilities also contributed to generating relational rents through investment in managerial knowledge acquisition for affiliated firms without R&D units and in training for affiliated firms with R&D units. However, learning by exporting and learning from imported input do not yield relational rents within business groups. Overall, these findings reveal that business groups as interorganizational networks are contingent on their internal, unique, and specific capabilities, as social capital theory argues.

The effect of using consumption taxes on foods to promote climate friendly diets – The case of Denmark

Agriculture is responsible for 17–35% of global anthropogenic greenhouse gas emissions with livestock production contributing by approximately 18–22% of global emissions. Due to high monitoring costs and low technical potential for emission reductions, a tax on consumption may be a more efficient policy instrument to decrease emissions from agriculture than a tax based directly on emissions from production. In this study, we look at the effect of internalising the social costs of greenhouse gas emissions through a tax based on CO₂ equivalents for 23 different foods. Furthermore, we compare the loss in consumer surplus and the changed dietary composition for different taxation scenarios. In the most efficient scenario, we find a decrease in the carbon footprint from foods for an average household of 2.3–8.8% at a cost of 0.15–1.73 DKK per kg CO₂ equivalent whereas the most effective scenario led to a decrease in the carbon footprint of 10.4–19.4%, but at a cost of 3.53–6.90 DKK per kg CO₂ equivalent. The derived consequences for health show that scenarios where consumers are not compensated for the increase in taxation level lead to a decrease in the total daily amount of kJ consumed, whereas scenarios where the consumers are compensated lead to an increase. Most scenarios lead to a decrease in the consumption of saturated fat. Compensated scenarios leads to an increase in the consumption of added sugar, whereas uncompensated scenarios lead to almost no change or a decrease. Generally, the results show a low cost potential for using consumption taxes to promote climate friendly diets.     

The performance implications of power–trust relationship: The moderating role of commitment in the supplier–retailer relationship

The current research examines how coercive power and non-coercive power affect trust and how these relationships are affected by affective and calculative commitment. It also expands the understanding of the role of an under-researched dimension of performance, i.e., strategic performance, and studies it as a mediating variable in the relationship between trust and financial performance. The proposed model is empirically tested using Partial Least Squares (PLS) in supplier–retailer channel in Taiwan. The findings reveal that affective commitment has a positive moderating effect on the negative relationship between coercive power and trust, while calculative commitment has a negative moderating effect on the positive relationship between non-coercive power and trust. The results also indicate that strategic performance partially mediates the effect of trust on financial performance. The research advances theoretical understanding on the complex power–trust relationship and provides insights into the role of commitment in both enabling and undermining channel relationships. The findings highlight the importance of building affective commitment in channel relationships and the critical role of strategic performance in the trust–financial performance relationship.     

‘Globesity’? The effects of globalization on obesity and caloric intake

We examine the effect of globalization, in its economic and social dimensions, on obesity and caloric intake, namely the so –called ‘globesity’ hypothesis. Our results suggest a robust association between globalization and both obesity and caloric intake. A one standard deviation increase in globalization is associated with a 23.8 percent increase in obese population and a 4.3 percent rise in calorie intake. The effect remains statistically significant even after using an instrumental variable strategy to correct for some possible reverse causality and ommited variable bias, a lagged structure, and corrections for panel standard errors. However, we find that the primary driver (of the ‘globesity’ phenomenon) is the ‘social’ rather than the ‘economic’ dimension of globalization, and specifically the effect of changes in ‘information flows’ and ‘social proximity’ on obesity. A one standard deviation increase in social globalization increased the percentage of obese population by 13.7 percent.     

The effect of government 5G policies on telecommunication operators’ firm value: Evidence from China

To lead the world's fifth-generation mobile communication networks (5G) market, China introduced several policies to support 5G industry development that will impact telecommunication operators, the main implementers in this industry. Thus, this study examines the impact of the government's 5G policy announcements on telecommunication operators' firm value in China, where the state exerts a strong influence on industry development. We find that government policy announcement in general affects telecommunication operators' stock returns negatively, and when the government announces policies with a higher level of interference, the decline in firm value is more pronounced. To understand the comprehensive impact of 5G technology on telecommunication operators, we also examine the effect of institution-driven corporate technology R&D and investment activities on firm value. We find that the firms' 5G activities also decrease their firm value, and this effect is more significant than government policy announcements. These results imply that the market has a negative evaluation of the introduction of 5G technology due to its immaturity and uncertainty. This study provides a basis for understanding the market's views on 5G technology and development policies.     

The behavioral additionality effects of a tax incentive program on firms’ composition of R&D investment

This paper investigates the behavioral additionality effects of a unique high- and new- technology enterprise (HNTE) program in China. The program provides a reduced corporate income tax to certificated HNTEs. By distinguishing research expenses from development costs, we examine if the tax incentive program affects firms’ composition of R&D investment, based on a sample of Chinese listed firms. The results indicate that the tax incentive program encourages firms to focus more on development than on research. The effects are also found to be heterogeneous among the first-time, repeated, and one-time certification users. The results imply that tax incentives prompt firms to invest in short-term development opportunities with promising private returns. Conversely, they are less likely to stimulate risky research projects with potential high rates of social and long-term economic returns. Our study highlights the importance of understanding the behavioral additionality effects for innovation policy evaluations and better policy designs.     

When is dependence on other organizations burdensome? The effect of asymmetric dependence on internet firm failure

Although critical resource providers offer ample access benefits to deficient firms, dependence on these resource providers is burdensome because dependency places deficient firms into a vulnerable position, especially when the dependency is asymmetric. Thus, we ask: Is it better to balance dependence among critical resource providers or asymmetrically depend on one if there is more than one resource provider? We use a unique context of the internet industry where satellite internet firms depend on portals that provide Web traffic and find that asymmetric dependence on portals increases the likelihood of failure, but market leaders suffer less from asymmetric dependence, while satellite internet firms with higher dependence on portals suffer more from asymmetric dependence. Copyright © 2014 John Wiley & Sons, Ltd.     

Always play against par? The effect of inter-team coopetition on individual team productivity

Current research lacks a deeper explanation of inter-team coopetition as a potential source of improved organizational performance on a micro-level. To fill this gap, our paper explores how inter-team coopetition influences individual team productivity. Building on social identity theory, we hypothesize that inter-team competition and inter-team coopetition both have a positive influence on individual team productivity with inter-team competition having a stronger influence. We further argue that organizational identification has a positive moderating effect on the link between inter-team coopetition and individual team productivity. To test our hypotheses, we conducted a laboratory experiment with 240 university students in which we simulated team scenarios using the puzzle board game Ubongo. Our findings confirm a positive effect of inter-team competition and coopetition on individual team productivity. In case of a high organizational identification, inter-team coopetition will boost individual team productivity further. Our paper improves the understanding of coopetition within the boundaries of the firm and the circumstances under which inter-team coopetition enhances individual team productivity and ultimately organizational performance. We also advance the literature on social identity theory by applying it to the organization’s micro-levels in the context of inter-team coopetition.     

Extending the “P” perspective: An institutional account of management research in Australia

In commenting Meyer’s article “Asian management research needs more self-confidence” in APJM (2006), Yang and Terjesen (Asia Pacific Journal of Management, 24(4):497–507, 2007) described ground realities in Australia that may have inhibited the development of a robust management research community. As an Australia-trained and Australia-based Asian management scholar, I extend the “P” perspective by exploring how the formal and informal institutions interact in shaping Australia-based scholars’ publication strategies and research performance. Reflecting on my experience in Australia, I argue that like in any other businesses, institutions matter in our business of research and publication. They matter because they can shape the local “rule of the game” within which a country’s or a region’s scholars conduct and publish their research. A full institutional account of the current state of management research in the Asia Pacific region requires a deeper understanding of both formal and informal local institutions. From such an institutional perspective, this commentary concentrates on why Australian management research lags behind that in the US and Europe and yet leads the Asia Pacific region.