The information paradox in a monopolist’s credence goods market

Credence good markets, such as those for car repairs and medical treatments, are generally characterized by an ex-ante and ex-post information asymmetry between the uninformed customers and the informed expert. In this paper, we allow for both uninformed as well as informed customers to exist in a monopolist credence goods market. We analyze the implications of this kind of informational heterogeneity for the expert’s pricing decisions, incentives to commit fraud, as well as market efficiency and social welfare under different institutional arrangements. Most importantly, our approach enables us to evaluate endeavours to improve the level of customers’ information. Contrary to basic intuition, we find that recent developments and policy measures originally aimed at improving social welfare by increasing the level of information might actually backfire.     

Is your industrial marketing work working? Developing a composite index of market change

We define market work as purposeful efforts by a focal actor to perform and transform markets and focus on the connection between market work and market change. To enable an evaluation of the effectiveness of market work, we delineate the domain of market change and provide an operational definition of its elements and develop a composite index of market change. Our research process consisted of four steps: (1) Specification of the elements of market change; (2) Specification of indicators for the identified elements; (3) Reliability and validity assessments; and (4) Validating the market change index. We identified six elements of market change. Markets can be changed by changes in Products & Price, Customers & Use, Channels, Supply-side Network, Representations and Norms. In the qualitative phase of the study we identified at total of 22 facets of these elements, which were later developed into 25 indicators. The overall model was operationalized as a formative first-order, formative second-order model, where first-order elements are formatively measured latent constructs that form a more abstract general (second-order) latent construct - market change. The research process involved testing the reliability and validity of the model and the final market change index.     

Does continuity matter? Developing a new long-term orientation structure in a cross-cultural context: A study on supply chain relationships

Long-term orientation (LTO) originates from traditional Chinese culture and is of great significance to the global issue of sustainable development. However, how LTO can manifest its Chinese culture essence at the individual level remains to be solved. This study proposes a new dimension – continuity – and establishes a new scale of three dimensions for LTO to validate its effect on trust and commitment in supply chain relationships. Results show that employees' continuity has a significant influence on supply chain partners' trust and commitment while tradition and planning do not. Theoretical contributions and managerial implications are discussed in the conclusion. This study demonstrates that Chinese Confucianism has made distinct contributions to universal values.     

Does brand partnership create a happy marriage? The role of brand value on brand alliance outcomes of partners

In this paper, we investigate an under-researched issue by examining the financial performances of both partner firms in a brand alliance. We find that a participating firm's brand value and other brand characteristics are associated with not only its own financial performance but also its partner's financial gains from the collaboration. Our results show that the participating firm gains higher stock returns when its partner's brand value is higher. However, brand value differential reduces the positive effect of brand value on the partner firm's financial performance. In addition, the primary partner's brand alliance experience helps increase the positive effect of primary partner's brand value on the stock returns of the secondary partner. The secondary partner's brand exploitation attenuates the positive effect of secondary partner's brand value on the stock returns of the primary brand firm.     

The co-responsibility levy — a misnomer?

The co-responsibility levy, recently adopted by the European Community, is a policy response designed to control the cost of the cereal surplus. The levy seeks to regain from farmers some of the price they receive for their cereals. This article, written before the adoption of the levy, argues that it is just as likely to raise revenue from consumers as from farmers. Other policy options are looked at which seek to reduce the actual size of the surplus and thus the associated costs.     

Contracts as a barrier to entry: Impact of Buyer’s asymmetric information and bargaining power

An incumbent seller contracts with a buyer under the threat of entry. The contract stipulates a price and a penalty for breach if the buyer later switches to the entrant. Sellers are heterogenous in terms of the gross surplus they provide to the buyer. The buyer is privately informed on her valuation for the incumbent’s service. Asymmetric information makes the incumbent favor entry as it helps screening buyers. When the entrant has some bargaining power vis-à-vis the buyer and keeps a share of the gains from entry, the incumbent instead wants to reduce entry. The compounding effect of these two forces may lead to either excessive entry or foreclosure, and possibly to a fixed rebate for exclusivity which is afforded to all buyers.     

More Than a County——-the Industrial Clustering rekindles Shaoxing''''s textile industrial dream

When we mention Shaoxing, no one in China will doubt its historical and cultural value in the tourism industry. But not only the tourism, Shaoxing, as one of the Top Ten Counties in China, its economic influence is obvious to all, especially its textile industry. Most people are interested in not only the prosperity Shaoxing show- ing us but also the real reason why Shaoxing is so vigorous in eco- nomic development. The end of this May, experts, entrepreneurs and reporters in textile indus…     

Buyer and supplier attractiveness in a strategic relationship — A dyadic multiple-case study

In a strategic buyer–supplier relationship (BSR), both the buyer and the supplier aim to leverage the relationship for gaining competitive advantage. Since strategic BSR requires a lot of effort from both parties, firms have become very selective in terms of with whom they engage in a strategic BSR. Therefore, both buyers and suppliers must shape their attractiveness in order to get the other party to put effort to the relationship. Towards this end, the present study explores the drivers of buyer and supplier attractiveness in strategic relationship through 43 interviews in six buyer–supplier dyads. We identified four main categories of both buyer and supplier attractiveness: 1) economic-based, 2) behavior-based, 3) resource-based, and 4) bridging-based attractiveness. We find economic- and behavior-based attractiveness strongly present in all dyads, while resource- and bridging-based attractiveness are emphasized when the strategic intent has more explorative elements and when the aim is to leverage the dyadic relationship in developing businesses outside the dyad. We synthesize our results to a model of attractiveness in a strategic BSR, which bring forth dyad considerations of buyer and supplier attraction.     

Flexible job shop scheduling with due window—a two-pheromone ant colony approach

Recently, the companies reduce the manufacturing costs and increase capacity efficiency in the competitive environment. Therefore, to balance workstation loading, the hybrid production system is necessary, so that, the flexible job shop system is the most common production system, and there are parallel machines in each workstation. In this study, the due window and the sequential dependent setup time of jobs are considered. To satisfy the customers’ requirement, and reduce the cost of the storage costs at the same time, the sum of the earliness and tardiness costs is the objective. In this study, to improve the traditional ant colony system, we developed the two pheromone ant colony optimization (2PH-ACO) to approach the flexible job shop scheduling problem. Computational results indicate that 2PH-ACO performs better than ACO in terms of sum of earliness and tardiness time.     

Can a powerful CEO avoid involuntary replacement?—An empirical study from China

This study examines the impact of CEO power on forced CEO turnover from five perspectives, namely firm performance, structural power, ownership power, CEOs’ political connections, and tenure power. Using panel data of listed companies in China, this study finds that firm performance has negative effects on forced CEO turnover. Similarly, CEOs’ structural power, political connections, and tenure power can increase their ability to be insulated from involuntary replacement. In addition, two factors of CEO ownership power, the state-controlling shareholder and serving as the representative of the largest shareholder, appear to be effective in reducing the likelihood of forced CEO turnover.     

Coopetition close to the customer — A case study of a small business network

Coopetition interactions are traditionally divided into competing activities close to the customer, called output activities (e.g., sales and marketing), and cooperating activities far from the customer, known as input activities (e.g., logistics, production and R&D). In many coopetition networks, most of the cooperation has been in input activities, essentially meaning that little research is conducted in coopetition business networks with cooperative activities close to the customer. This article closes the gap by investigating coopetition in an ICT business network comprising small-to-medium-sized enterprises (SMEs) in the B2B sector. The purpose of this paper is to increase understanding of cooperation between competing firms by analyzing the success factors of cooperative activities close to the customer that lead to a positive outcome of coopetition. The results of the study show that some case companies are more competition oriented, whereas the others are more cooperation oriented. At the activity level of analysis, cooperation occurs in branding, marketing, joint customers, and delivery of services; whereas companies compete in local services, marketing campaigns, and pricing. In addition, our study shows that certain success factors for coopetition are highlighted, particularly in output activities such as activeness, geographical distance and personal resources.     

Carving up the commons—emergence of a new international regime for germplasm development and transfer

No nation has ever fabricated or maintained a prosperous food system based on genetic resources of purely indigenous origin. Remarkably, many countries now seem ready and almost eager to try such an approach. We identify four separate components of an emerging regime that are interacting in ways that should worry everyone concerned with the development and transfer of plant genetic materials into the South: new provisions on intellectual property; increased concentration of new enabling technologies into a few large multinational companies; heightened anxieties over transgenic crops; and new problems arising from international agreements. We argue that the solutions now being discussed in global forums are either infeasible, incomplete, or are likely to have seriously negative effects. We call instead for creative new thinking on building human capacity in developing countries, on the legal status of plant genetic resources, and on public−private partnerships, especially those in service of the poor.     

Does ICT create a new driving force for manufacturing?—Evidence from Chinese manufacturing firms

The Internet has changed the global economic landscape. In particular, the fast-changing Information and Communication Technology (ICT) has directly led to a far-reaching impact on the production and operation of firms. Many previous studies have discussed the relationship of ICT and the total factor productivity (TFP) of firms, but failed to reach a consistent conclusion. This paper, based on the data of Chinese listed manufacturing firms from 2010 to 2019, explores the impact of ICT on manufacturing firms' TFP and its mechanism, and concludes that ICT have positive correlation with the TFP of manufacturing firms. According to the estimated results of this paper, TFP will increase by about 1.8 % for every 1 % of additional ICT investment. Through channel analysis, this paper finds that the positive effect can be achieved through the following four channels: cutting information search costs, enhancing information processing capabilities, reducing internal capital misallocation, and promoting R&D efficiency. This paper is a supplement to research on firm TFP, provides new micro-evidence for exploring the relationship between ICT and TFP of manufacturing firms, and brings important implications for understanding the role of ICT in firm production activities.     

Managing salespeople strategically when promoting new products—Incorporating market orientation into a sales management control framework

Salespeople play a pivotal role in promoting new products. Therefore, managers need to know what control mechanism (i.e., output-based control, behavior-based control, or knowledge-based control) can improve their salespeople's new product sales performance. Furthermore, managers may be able to assist salespeople in performing better by having a strong market orientation. The literature has been inconsistent regarding the effects of sales management control mechanisms and has not yet incorporated market orientation into a sales management control framework. The current study surveyed 315 Taiwanese salespeople from publicly traded electronics companies with the aim of contributing to the sales management literature. The results show that sales management controls can directly affect salespeople's innovativeness, which, in turn, affects new product sales performance. However, sales management controls cannot affect performance directly. Furthermore, market orientation can positively moderate the relationship between salespeople's innovativeness and new product sales performance.     

Perspectives—New Era,New Realities: Musings on a New Research Agenda… from an Old Timer

This paper provides an overview of my three primary research streams and the six principles that have guided me in topic selection in the past and which will continue to assist me in choosing research topics in the future. The paper then outlines several important themes that pertain to Asia that merit research attention in the next five to ten years.     

Every cloud has a silver lining — Exploring the dark side of value co-creation in B2B service networks

This research explores the dark side of value co-creation (VCC) in B2B service networks. Whilst VCC is attracting a great deal of academic attention and a number of studies have highlighted the benefits of VCC, researchers often fail to consider the potentially negative consequences of VCC, especially in the context of business networks. This study explores the negative aspects associated with VCC in advertising service networks and identifies role conflicts and ambiguity, opportunism and power plays on the dark side of VCC. Tensions created by role conflicts during VCC interactions are highlighted. Also sharing of responsibilities during VCC can result in managers having a lack of clarity about what is expected of them, leading to role ambiguity and misunderstandings between firms. Managers engaging in VCC display weak-form opportunistic behaviors. These softer forms of opportunism are found to be tolerated and almost expected within long-term relationships. This research suggests that the exertion of power often shapes VCC activities within the advertising service network. Power plays are used as a means to mobilize appropriate resources and to influence network actors to adhere to value co-creation objectives. The presence of role conflicts, role ambiguity, opportunistic behaviors and power plays indicate that there is indeed a dark side to VCC that is currently omitted from existing VCC frameworks. A further contribution of our study is to highlight that a bright-dark dichotomy does not fully describe the complexity of VCC in B2B service networks and we show how the dark side may lead to positive outcomes.     

‘It's almost like taking the sales out of selling’—Towards a conceptualization of value-based selling in business markets

While the creation of superior customer value is regarded as fundamental to a firm's long-term survival and growth, little is known about the effective implementation of a firm's value orientation at sales force level. As the sales force plays a pivotal role in implementing marketing strategies, this study adopts a discovery oriented approach and conceptualizes value-based selling as an effective sales approach in business markets. Based on in-depth interviews with sales managers in a variety of industries, we identify and portray three salient dimensions of value-based selling, namely (1) understanding the customer's business model, (2) crafting the value proposition, and (3) communicating customer value. The selling behavior entails a mutual orientation and focuses on the value-in-use potential of the offering for the customer's business profits. We argue that value-based selling is a unique concept that differs from the established selling approaches and propose a conceptual model linking value-based selling to performance outcomes. To further advance our knowledge about the effective implementation of a firm's value orientation, we identify future research avenues embracing qualitative and quantitative research methodologies.