Market orientation, competitive advantage, and performance: A demand-based perspective

This study assesses how customer value affects a firm's market orientation and consequently, competitive advantage and organizational performance in a service industry — the global hotel industry. The findings show that if a firm perceives its customers as valuing service, the firm is more likely to adopt both a customer and a competitor orientation; if the firm thinks its customers are price sensitive, the firm tends to develop a competitor orientation. Moreover, the greater a firm's customer orientation, the more the firm is able to develop a competitive advantage based on innovation and market differentiation. In contrast, a competitor orientation has a negative effect on a firm's market differentiation advantage. Finally, innovation and market differentiation advantages lead to greater market performance (e.g., perceived quality, customer satisfaction) and in turn, higher financial performance (e.g., profit, market share).     

Absorptive capacity development in Indonesian exporting firms: How do institutions matter?

This paper addresses how firms from an emerging market characterized by a challenging and variable institutional environment learn about internationalizing. Building on the organizational learning and institutional literatures, and the concept of absorptive capacity (AC), and using a sample of Indonesian manufacturing-sector exporters we identify two dimensions of internationalization-related AC: international market and international strategic operation. Unlike previous literature, we find that indirect, or second-hand, experience contributes more than the firm's own experience to the development of international market AC. Furthermore, the second-hand experience feeds Indonesian manufacturing exporters’ learning in both positive (e.g., buyers) and negative (e.g., suppliers and foreign multinationals in Indonesia) ways. In contrast, the development of international operation strategy AC appears to be driven internally, with minimal contribution from either first- or second-hand experience. We posit that these outcomes are influenced by the rapid and substantial changes in the domestic institutional environment faced by the Indonesian manufacturers.     

Strategy antecedents of modes of entry into foreign markets

Although a firm's choice of mode of entry to a foreign market is central to the implementation of international strategy, we have only limited understanding of the effects of international strategy on the choice. This study explores the effects of business relatedness and corporate international experience. Data were collected on 173 ventures of Swedish manufacturing firms that were present on the German market, and multivariate techniques were applied to test hypotheses. It was found that product/market relatedness and intangible resource relatedness between the foreign business unit and the industrial firm's core business unit favored a full control entry mode based on sole ownership. This finding was also valid for importance of foreign markets. Further, market importance moderated the two relationships regarding business relatedness. Contributions to the literature are discussed.     

Foreign expansion of small firms: The impact of domestic alternatives and prior foreign business involvement

This research analyzes foreign expansions of small firms. In particular, we look at how a small firm's foreign expansion is affected by the join effects of prior foreign business involvement and other factors. We found that when encountering performance downturn and market size decline, small firms with prior foreign business involvement are more likely to use foreign expansion to deal with the problems. This suggests that organizational characteristics mediate the relationship between competitive threats and foreign expansion activities. We also found that small firms' foreign diversification is affected by their product and domestic expansions, suggesting foreign activities of small firms are closely related to their non-foreign strategies.     

The importance of structure and process to strategy implementation

A study involving over 200 senior managers demonstrates that overall firm performance is strongly influenced by how well a firm's business strategy is matched to its organizational structure and the behavioral norms of its employees. The authors identify a taxonomy comprised of four different combinations of structure/behavior types, which they label as: Management Dominant, Customer-Centric Innovators, Customer-Centric Cost Controllers, and Middle Ground. These alternative structure/behavior types are then matched with specific business strategies (i.e., Prospectors, Analyzers, Low Cost Defenders, Differentiated Defenders) in order to identify which combination(s) of structures and behaviors best serve to facilitate the process of implementing a specific strategy.     

When Bad Things Happen to the Endorsers of Good Products

We investigate how a firm's financial performance (as measured by stock returns) is influenced when celebrity endorsers become involved in undesirable events, i.e., events that have a deleterious effect on the spokespersons. We find that the stock market reaction to these events is negatively related to spokesperson blameworthiness. The lower (higher) the culpability, the higher (lower) the stock return. Interestingly, it is only those firms associated with spokespersons having high culpability that tend to experience losses in stock market value. In contrast, we find that events rated at or below the mean level of blameworthiness are associated with positive stock market returns.     

服务企业国际营销能力研究

20世纪80年代，服务企业国际营销活动开始引起人们的注意，国外学者开始进行服务企业国际市场进入模式、国际服务质量等方面的研究，但是对服务企业国际化有重大影响的国际服务营销能力问题尚没有引起人们的重视。本文从现有关于营销能力的研究出发，结合服务企业国际营销的实际情况，提出了国际服务营销能力的构成、影响因素及培育方法。     

The evolving role of organisational and personal networks in international market venturing

In a study of 1304 Australian manufacturing industry SMEs, we investigate the relationships among networking (i.e., inter-personal and inter-organisational networks), international market venturing (i.e., export intensity), and family ownership. We find evidence that (1) inter-personal networking and inter-organisational networking positively influence SME international market venturing, but this relationship is contingent on a time lag effect, and (2) family ownership negatively moderates the effect of inter-organisational networking on international market venturing. Implications for managerial practice and public policy are discussed.     

Facing global economic crisis: Foreign sales,ownership groups,and corporate value

This study extends the research on internationalization to a new organizational context – emerging market firms (EMF), and a new time context – global economic crisis. We propose a U-shaped relationship between foreign sales intensity and firm value for EMFs during global economic crisis. Further, we distinguish between EMFs’ relational owners (i.e., business groups) and transactional owners (i.e., institutional investors) to investigate their different moderating effects. We find empirical support for our hypotheses using a sample of Chinese firms during the global economic crisis in 2008. Moreover, we provide research and practice implications.     

A transaction cost perspective on foreign market entry strategies of US and Japanese firms

A large scale survey of top US and Japanese executives is conducted in order to assess the power of transaction cost economics (TCE) in explaining a firm's choice of entry mode (e.g., joint venture vs. full ownership) when it enters a foreign market. Results suggest that several TCE tenets are useful in explaining US firms' choice of entry mode. However, TCE predictions were not supported by the entry mode choices of Japanese firms. Implications of these findings for researchers and managers are discussed. © 1998 John Wiley & Sons, Inc.     

Market orientation: Review, refinement, and roadmap

Over the past ten years, significant progress has been made in the market orientation area. Scholarly attention has focused on the definition, measurement, and impact of a market orientation. Attention has also focused on organizational drivers of market orientation and its enhancement. Despite progress, several research challenges remain and rich opportunities exist for further work in the area. This paper critically reviews the state-of-the-art and offers a roadmap for future work in the area. The review primarily focuses on (1) the meaning of market orientation, (2) its relationship with several emerging topics/themes in the literature (e.g., market information processing, organizational learning, knowledge use, industry foresight and driving markets), (3) the quality of market-oriented behaviors, (4) impact of market orientation, and (5) issues in enhancing market orientation. We conclude with a conceptual synthesis and methodological suggestions.     

Foreign firm characteristics,labour market restrictions and FDI spillovers: Evidence from Moldova

This paper investigates how productivity spillovers from foreign to domestic firms are affected by foreign firm characteristics and labour market conditions in Moldova. We use firm-level administrative panel data and annual survey region-sector indicators of labour market conditions in 2005–2014. Baseline regressions show that domestic firms benefit from backward FDI spillovers, while we find no evidence of horizontal or forward spillovers. Spillover effects are heterogeneous and depend on the ownership structure and age of foreign firms. Domestic firms in upstream sectors benefit from both wholly foreign-owned companies (WFOC) and joint ventures (JV). However, JVs need less time in the market for positive spillovers to materialise, while WFOCs only lead to larger spillover effects when they are older. In regions and sectors where firms experience fewer labour market restrictions, backward FDI spillovers are larger. Interacting foreign firm characteristics with labour market restrictions, we find that spillovers through the labour market channel materialise only for older FDI, regardless of ownership type. The results are in line with our expectation that WFOCs need more time than JVs to develop linkages with local suppliers and lead to spillovers through this channel. Moreover, in developing countries labour market restrictions reduce labour mobility and consequently, the size of FDI spillovers across industries.     

Exploring customer engagement in the product vs. service context

Though customer engagement (CE) is heralded as a strategic organizational imperative, empirically derived insight into its nomological network remains sparse. Extending existing research, we therefore test service-dominant logic-informed CE vis-à-vis its key antecedents of knowledge sharing and learning, and its consequences of customer cocreation and relationship quality. We also envisage the existence of CE-based differences across physical goods (versus service) contexts, leading us to include the nature of the offering (good vs. service) as a moderating factor in our model, making a novel contribution. To test the model, a survey was conducted in the tangible sports goods (i.e., sports retail) and -service (i.e., sports club) contexts. The findings substantiate a positive effect of customer learning and knowledge sharing on CE, thus empirically validating conceptual literature-based claims. In addition, CE was found to exert a favorable effect on customer cocreation and relationship quality. Moreover, the results confirm our hypothesized moderating effect by revealing the framework’s stronger associations for service- (vs. product-based) CE. We conclude by discussing key implications that arise from our analyses.     

Employee emotional response toward healthcare organization’s service recovery efforts and its influences on service recovery performance

Previous studies on service recovery performance of frontline employees have focused primarily on the direct relationship with the organizational efforts for service recovery. However, based on the reformulation of attitude theory (appraisal-emotional response-behaviour), we believe that the emotional responses (work engagement and burnout) toward organizational efforts for service recovery of frontline employees mediate the relationship. Thus, the purpose of this study is to examine how healthcare frontline employees show their emotional response toward the organizational efforts for service recovery and it influence on actual recovery performance. This study uses two conflicting emotional responses, burnout and work engagement, to examine how employees react toward organizational efforts, helping better understand employees?? evaluations of the efforts. Research model and hypothesis were tested using a sample of frontline employees who perform none-clinical activities in hospitals. The results showed that teamwork and empowerment have positive effects on work engagement. In addition, customer complaint management, empowerment, and teamwork influenced negatively on burnout. Lastly, work engagement and burnout showed statistically significant impact of service recovery performance of frontline employees. Among the organizational efforts for service recovery, teamwork was the most important factor in improving frontline employees?? work engagement and lessened their burnout, respectively. Interestingly, customer service training had a negative effect on burnout. Besides, by comparing our research model to two alternative models, we confirmed the validity of the research model.     

Gaijin invasion? A resource dependence perspective on foreign ownership and foreign directors

While boards around the globe are becoming more international, the reasons behind this internationalization are not fully understood. In this study, we suggest that foreign ownership increases the presence of foreign directors on boards. Based on resource dependence theory, we argue that the dependence on foreign owners makes foreign nationals an important resource for firms. Using data from large Japanese stock market firms and employing logistic regression analysis, we find empirical evidence that greater dependence on foreign, i.e. gaijin, owners is associated with a higher probability to have foreign directors on the board. We also demonstrate that the link between foreign ownership and foreign directors is positively moderated by a firm’s foreign market exposure. We conclude that firms consider foreign directors a viable response to the deviant expectations of foreign owners.     

Playing away to win at home

This paper presents a model of the interaction between two rival firms based in the same country. Each firm must decide how to serve a foreign market (export or foreign production) and how much to invest in a corporate-wide asset that reduces production costs and/or augments the willingness-to-pay for their product. In this scenario, the firms’ foreign direct investment decisions are interdependent. Furthermore, strategic motives for FDI relate to a firm's domestic, as well as foreign, market profits. One possibility is that a firm sets up overseas production even though its foreign market profits would be higher by exporting.     

How Customer Requests Influence Frontline Employee Job Outcomes: The Role of Personal Appraisal Tendencies and Situational Customer Demandingness

This study investigates how customer requests, a common phenomenon, influence frontline employee (FLE) job outcomes. We propose and demonstrate that (1) FLEs possess tendencies to appraise customer requests in both positive (i.e., challenge appraisal tendency) and negative (i.e., hindrance appraisal tendency) ways, (2) higher levels of challenge appraisal tendency result in higher levels of FLE performance and lower levels of turnover (mediated through job engagement), (3) higher levels of hindrance appraisal tendency lead to increased FLE turnover (mediated through job stress), (4) the effects of FLE appraisal tendencies on situational engagement and stress are magnified when a specific customer request is deemed to be more (rather than less) demanding, and (5) customer request appraisal tendencies are shaped by the interaction between FLEs’ level of prosocial motivation and intrinsic motivation. These results are very encouraging for managers as they imply that FLE responses to customer requests are not determined by the nature of the requests themselves (which is beyond their control) but, rather, they are a function of how FLEs construe customer requests, a process that can be influenced through organizational human resource practices.     

FDI entry mode choice of Chinese firms: A strategic behavior perspective

This study investigates the determinants of foreign direct investment (FDI) entry mode choice between a wholly owned subsidiary and a joint venture by Chinese firms that invest overseas. We argue that the FDI entry mode choice of a Chinese firm is primarily influenced by the variables related to the firm's strategic fit in host industry and its strategic intent of conducting FDI. Using survey data of a sample of 138 Chinese firms, the results suggest that a Chinese firm prefers wholly owned subsidiary entry mode when it adopts a global strategy, faces severe host industry competition, and emphasizes assets seeking purposes in its FDI. A joint venture is preferred when the firm is investing in a high growth host market.     

Hysteresis in adjusting the ownership structure of foreign subsidiaries

In this paper we study the insight that multinational companies might delay the adjustment of the ownership structure of their foreign subsidiaries despite the fact that the fundamentals call for an immediate adjustment (hysteresis). Based on company-level data, we empirically investigate the company and industry conditions that influence the strength of the hysteresis in adjusting this ownership structure. Exchange rate volatility and adjustment cost strengthen the hysteresis in ownership adjustment decisions, while the growth of sales in the foreign market weakens it.     

The Effect of Ownership Structure on Corporate Social Responsibility: Empirical Evidence from Korea

Relatively little research has examined the effects of ownership on the firms’ corporate social responsibility (CSR). In addition, most of it has been conducted in the Western context such as the U.S. and Europe. Using a sample of 118 large Korean firms, we hypothesize that different types of shareholders will have distinct motivations toward the firm’s CSR engagement. We break down ownership into different groups of shareholders: institutional, managerial, and foreign ownerships. Results indicate a significant, positive relationship between CSR ratings and ownership by institutions and foreign investors. In contrast, shareholding by top managers is negatively associated with firm’s CSR rating while outside director ownership is not significant. We conclude that different owners have differential impacts on the firm’s CSR engagement.