How valuable is information and communication technology? A study of emerging economy enterprises

Anchored at the knowledge management perspective, we address how information and communication technology (ICT) improves the productivity of emerging economy enterprises. We present the logic that ICT enhances firm performance because it is an important channel or facilitator of effective knowledge sharing and knowledge integration. We further argue that the conditions characterizing an emerging economy (i.e., a country’s economic development) and emerging economy businesses (i.e., internationalization and quality assurance) would affect the extent to which ICT contributes to knowledge management, and thus to firm performance. Our hierarchical linear modeling analysis of 6236 firms from 27 emerging economies lends support to our arguments and predictions, suggesting that ICT is a critical investment that generates satisfactory returns for emerging economy enterprises, yet this investment–return relationship is further contingent upon the macro- and micro-level conditions facing these enterprises. ICT actually adds more value to productivity when a focal emerging economy is less economically developed, and when a focal firm reaches foreign markets or its quality control and assurance is superior.     

Pay-for-performance – Does one size fit all? A multi-country study of Europe and the United States

Are there country-level differences in the use of pay-for-performance in executive compensation contracts? We investigate how formal country-level institutions affect pay-for-performance directly and if institutions have a moderating effect on the relation between ownership structure and pay-for-performance contracts. Based on agency theory arguments, we show that substitutionary and complementary relations are conceivable, for the direct and the moderating effect. We conduct an empirical analysis based on 2766 firm-year observations for the years 2005–2008. Our empirical results show that whereas strong shareholder protection substitutes pay-for-performance, disclosure requirements complement pay-for-performance. Additionally, strong shareholder protection complements the effect of concentrated ownership on pay-for-performance while disclosure requirements substitute effects of ownership concentration. Overall, our results provide evidence for the relevance of formal institutions as determinants of executive compensation contracts. Additionally, our results indicate the general complexity of integrating institutions and internal governance mechanisms.     

How a “China-made” label influences Chinese Youth's product evaluation: The priming effect of patriotic and nationalistic news

This study is to verify whether and how a “China-made” label can influence online consumers' product evaluation as adding labels to highlight products' attributes has become an acquainted measure online by e-tailers/firms to attract online consumers' attentions. For this purpose, we conduct a 2 (label of “China-made” vs. no label) x 3 (patriotism priming vs. nationalism priming vs. no priming) between-subject factorial design to verify hypotheses. The results reveal that when consumers' nationalism is primed, the label significantly enhances the product evaluation by increasing the perceived social value of the product. Priming consumers’ patriotism, on the other hand, does not play a moderating role for this effect. A follow-up study confirms such effects for both low involvement and high involvement products. Therefore, e-tailers/firms that own China-made brands/products are advised to signal the “Chinese identity” of their products to online consumers under the current circumstance when nationalism and domestic brands are rising in China. The results also indicate that although products produced in a developing country are marked with a negative country of origin effect, marketers can turn it into a strength in marketing in certain conditions.