International collaboration and innovation: Evidence from a leading Chinese multinational enterprise

This paper investigates the impact of international collaboration and its characteristics on the quality of the innovation of multinational enterprises (MNEs) in emerging markets. Using a unique dataset of 1428 international and comparable domestic collaboration projects over the 2010–2016 period, it finds that while international innovation collaborations are associated with high innovation quality, cultural distance has a negative effect on collaboration outcomes. Moreover, proximity to the focal firm's overseas R&D centres and the size of expenditure budgets play significant moderating roles in overcoming cultural barriers. Based on the RBV and dynamic capabilities theory, we investigate how firms from emerging markets can acquire these two crucial requisites for innovation. The characteristics of partners and intellectual property (IP) arrangements are also found to have a significant impact on the quality of innovations.     

Rethinking value co-creation and loyalty in virtual travel communities: How and when they develop

For marketers of virtual travel communities (VTCs), a vital issue is to understand how to maintain consumer stickiness and loyalty. Although existing studies have tried to explore this issue, researchers have not given detailed and specific answers from the value co-creation theoretic lens. Therefore, the present paper aims to bridge this research gap by investigating the relationship among consumer trust in VTCs, consumer co-creation behaviors and their loyalty. The moderating impact of community service quality (CSQ) on loyalty is also explored. Data from a two-wave survey were collected from 214 active users in a Chinese VTC (Mafengwo) and then analyzed using the ordinary least squares (OLS) technique with STATA 13. Results indicated that (1) consumer trust positively impacts on two dimensions of value co-creation behavior, namely, breadth participation and depth participation. (2) Depth participation is more conducive to cultivating both attitudinal and behavioral loyalty, while breadth participation has an inverted U-shaped influence on behavioral loyalty. (3) CSQ positively moderates the relationship between depth participation and attitudinal loyalty. But after controlling for the effect of attitudinal loyalty on behavioral loyalty, this study found that CSQ negatively moderates the relationship between depth participation and behavioral loyalty. This paper developed a comprehensive framework involving antecedent and consequence of consumer co-creation behavior and showed the importance of CSQ as a key boundary condition, enriching the existing VTC and consumer loyalty research from the perspective of value co-creation and trust theory. Corresponding practical implications and limitations are also discussed.     

Managing socio-political risk at the subnational level: Lessons from MNE subsidiaries in Indonesia

Within emerging markets, institutional conditions vary significantly at both the country and subnational levels. Although the extant literature recognises the types of risk faced by multinational enterprises (MNEs) in emerging markets, it has hitherto paid scarce attention to explaining how MNEs manage such risk at the subnational level. Reporting on four case studies from Indonesia, we outline how MNEs ensure their success by maintaining active relationships with a variety of non-market actors—including opinion leaders, government officials, and communities at the subnational level. In our study, we developed a conceptual framework, showcasing how MNEs can manage socio-political risk within heterogeneous institutional settings.     

Can't touch this? Conceptualizing the customer touchpoint in the context of omni-channel retailing

Due to the rise of omni-channel management, the customer touchpoint concept has become more important. However, research lacks a common understanding of this concept. This article addresses this research gap by conceptualizing the customer touchpoint following the design science research paradigm. As a result, an overview of the constructs and their respective properties, as well as their possible manifestations that collectively define the customer touchpoint, is provided. The conceptualization has implications for researchers and practitioners alike as it comes as a tool to design and evaluate touchpoints in the field as well as to provide fertile soil for future research.     

What drives the growth of shadow banks? Evidence from emerging markets

The present study analyses the factors affecting the growth of Non-Banking Financial Institutions (NBFI) and finance companies in 11 emerging market economies (EMEs) that the FSB monitors. Using data for the period 2002 to 2019 and employing the panel corrected standard errors (PCSE) method, the results indicate that the growth of banks, search for yield, demand from institutional investors, and bank regulations are the key factors affecting the growth of NBFI.Further, the study highlights the impact of different types of bank regulations on the NBFI growth in EMEs. While the capital regulations tend to restrict their growth, activity restrictions and restrictions for financial conglomerates boost NBFI growth. Thus, stringent bank regulations create arbitrage opportunities for non-banks.     

The evolution of financial reporting quality for companies listed on the Tadawul Stock Exchange in Saudi Arabia: New emerging markets' evidence

Motivated by the Saudi Arabian government's objective to diversify its economy away from oil and correct deficiencies associated with the Saudi stock market crash of 2006, a series of significant capital market infrastructure reforms were initiated that began with the 2007 reorganization of the Tadawul Stock Exchange (TSE) and the Capital Market Authority (CMA) as its sole regulator. This paper adds to the growing body of emerging market literature by providing new evidence of the effects of these initiatives on earnings quality for firms listed on the TSE. The results of tests of this study provide robust evidence that earnings quality increased during the 2007 to 2018 reform period. In particular, we document that relative to pre – reform years, reform period R squares, earnings response coefficients (ERCs) increased and discretionary accruals decreased. We rationalize these findings by asserting that improved regulatory oversight in juxtaposition with significant reform period investments into Saudi Arabia's capital markets infrastructure enhanced earnings quality (Jiambalvo et al., 2002; Latif et al., 2017; Zhong et al., 2017).     

Effect of community relationship management,relationship marketing orientation,customer engagement,and brand trust on brand loyalty: The case of a commercial bank in Thailand

Business uncertainty due to the COVID-19 pandemic has brought financial and banking industries under stress. This study examines brand loyalty (BL) in the Thai banking industry by integrating community relationship management (CoRM) (4Cs model), relationship marketing orientation (RMO), customer engagement (CE), and brand trust (BT). It analyzes how a Thai commercial bank used four success factors to create new client acquisition, business efficiency, long-term relationships, and BL. We use quantitative data and structural equation modeling (SEM) to identify variables influencing the BL of 1650 customers of a Thai commercial bank. We found CoRM and RMO's key success factors indirectly affected BL by mediating CE and BT. These results may improve sustained performance effectiveness in the banking industry now and in the future.     

The moderating role of a corporate life cycle with the impact of economic value-added on corporate social responsibility: Evidence from China's listed companies

The moderating role of corporate life cycle stages with the impact of relative economic value added (EVA) indicator on corporate social responsibility participation index (CSRPI). Chinese A-share listed companies are investigated. The CSRPI weights are calculated by Analytic Network Process. Fractional regression with interaction is used. The corporate life cycle stages moderate the relationship between relative EVA measure and CSRPI. Surprisingly, this impact is confirmed for companies at non-mature stages, but not for mature companies. Model type, weights and corporate life cycle robustness were confirmed. The findings have implications for stakeholders in understanding companies' social behaviour in the Chinese market.     

A neurophysiological exploration of the dynamic nature of emotions during the customer experience

This paper explores the benefits of measuring emotions and their dynamic nature during the customer experience with neurophysiological measures. In this study, emotions are measured during a service interaction (with self-service technology or a human employee) going through a series of touchpoints, including a service failure. We show that creating a loyalty card with the help of a service employee or self-service technology did not impact customers’ perceived service satisfaction and their behavioral intentions. This paper demonstrates that neurophysiological measures such as Galvanic Skin Response might be better equipped to unveil the dynamic nature of emotions (e.g., arousal) during the customer experience and that valence measured by neurophysiological tools (using electroencephalography) better reconciles with the effect found for satisfaction and behavioral intentions. Our findings have implications for both researchers and practitioners who want to understand and bolster customer experiences, thereby taking customer emotions and its appropriate measurement tools into consideration.     

New products or remanufactured products: Which is consumer-friendly under a closed-loop multi-level supply chain?

If the remanufactured and fresh products are in the market at the same price and quality, then it is difficult for the retailer to sell them all together simultaneously. There is differentiability in the market by the consumers even though they are of similar quality and price. These remanufactured products are the effect of a closed-loop supply chain. The closed-loop type supply chain problems have pulled much attention to tackling environmental and social issues for these remanufactured products. Based on the concern, a closed-loop formation of the supply chain is formulated with four players. Two types of quality are assigned for the manufactured and remanufactured products as remanufactured products maintain less quality than the newly manufactured products. The production system is imperfect, then all products are not perfect. A mathematical model with a multi-cycle closed-loop supply chain is discussed here, where the reworking process happens within the same cycle. An acceptance quality level influences the regaining rate of consumed products. The non-integrated phenomenon uses the inventory management policy operated by the vendor and the consignment-type stock policy. This mathematical problem is solved by employing algorithms, developed to achieve the local optimum (non-integrated situations) and global optimum (integrated situations). A numerical example and sensitivity analysis are provided to establish the mathematical model numerically. Results obtain that the retailer can tackle the situation in a proper way such that the closed-loop supply chain always is in profit. The profit is globally maximized, and the best results are obtained from different situations.     

Do market prices correspond with consumer demands? Combining market valuation and consumer utility for extra virgin olive oil quality attributes in a traditional producing country

The objective of this research is to examine whether there is a relationship between the value of attributes based on the market price and on consumer utilities. To address this objective, the results from a hedonic price (HP) approach are combined with the actual consumer utilities from a real choice experiment (RCE) for extra virgin olive oil (EVOO) attributes. The results indicate that the origin of production attribute positively influences consumer utility and it is also positively related to market EVOO prices. Conversely, the PDO quality certification positively influences consumer utility and willingness to pay, although it is not related to EVOO prices in the real market.     

Responses of FDI to geopolitical risks: The role of governance,information, and technology

We show that rising geopolitical risk and geopolitical uncertainty (GPR) deter foreign direct investment (FDI). We further explore the role of governance, information, and technology in shaping the responses of FDI to GPR and document three main findings. First, effective governance in the destination market safeguards FDI against GPR. Second, multinational corporations with better information gained from closer geographic, cultural, and commercial ties choose to delay FDI in response to rising GPR instead of managing it. Third, FDI in more R&D-intensive industries is more resilient to GPR because intangible technology can more easily be transferred across borders.     

Digitalization,internationalization, and firm performance: A resource-orchestration perspective on new OLI advantages

Digital forces and digital global connection weaken traditional ownership, location and internalization (OLI) advantages and intensify new OLI advantages (open resources, linkages and integration). However, by building on the resource-orchestration theory, we raise the question of how digitalization (utilization and orchestration of digital resources) and internationalization (firm-level outward internationalization and country-level inward internationalization) affect firm performance. We introduce the degree of outward internationalization and home-country inward foreign direct investment (FDI) inflows as moderators in achieving firm performance as a result of digitalization. Using a panel dataset of 571 U.S. manufacturing firms, we find a curvilinear relationship between digitalization and performance. The top quartile of digitalization efforts is rewarded by significant profitability. Moreover, high levels of outward internationalization and high net-FDI inflows increase the performance gains attributable to high levels of digitalization. Overall, the resource-orchestration theory complements new OLI advantages in explaining firm performance in the digital world.     

Television food ads aimed at children in South-Eastern Europe: Cultural outlook and implications

South-East Europe (SEE) has the highest obesity rates and the most substantial consumption of television programs among young people compared to other parts of the continent. However, studies on this subject are notably absent from the existing body of literature. This research investigates differences in ad recall and preferences related to the healthiness of featured products and the alignment of advertising settings with specific cultural dimensions of SEE's ethos. The study utilizes two multidisciplinary theoretical frameworks: the social cognitive theory and the two-dimensional Minkov-Hofstede model of culture, and it employs a mixed-methods approach. Results from a survey conducted with children and a content analysis of TV ads from the region reveal that commercials promoting low-nutrition foods are more persuasive than those featuring healthy products. Consistent with the collectivist nature of SEE's culture, ads using group settings are predominantly recalled. Contrarily, in opposition to prior knowledge, the use of monumentalistic (vs. flexibility) attributes in commercials does not enhance the memory retrieval of ads. Children's ad preferences are significantly influenced by their self-concept. The implications of these findings for various stakeholders are discussed.     

The impact of customer-generated evaluation information on sales in online platform-based markets

As the online platform-based market expands, research into the impact of consumer-accessible information in this market on performance has received significant attention in recent years. In this study, we focus on customer-generated evaluation information (CGEI). The purpose of this study is to demonstrate the effect of CGEI—both quantitative (i.e., star rating, star rating volume) and qualitative (i.e., customer review content) aspects—on actual sales in an online platform-based market. We analyze the regression of quantitative GCEI on sales and for qualitative GCEI we apply the Latent Dirichlet Allocation (LDA) topic modeling. We discover that star ratings do not always lead to increased sales, implying that star ratings and sales have an inverted U-shaped relationship. Furthermore, the results demonstrate that star rating volume has a positive effect on sales. We reveal that the review contents of product quality and added value have a positive effect on sales, whereas those of seller service have no effect on sales. This study provides some insight into how customer-generated information can increase actual sales in online platform-based markets.     

Learning from Older Siblings: Impact On Subsidiary Performance

Newer subsidiaries of a multinational enterprise (MNE) in a foreign (host) country will rarely possess the knowledge required for its performance. As such, a newer subsidiary will learn vicariously from the experiences of older subsidiaries of similar industries and the same MNE operating in the same host country. In particular, the newer subsidiary will learn two types of knowledge from older subsidiaries, namely, operational knowledge related to their experiences in the host country and their knowledge about local markets. Furthermore, we theorize that higher parent MNE ownership in newer subsidiaries will facilitate vicarious learning. We add that as newer subsidiaries gain experience, they become less dependent on vicarious learning from older subsidiaries. We find support for our hypotheses using a longitudinal sample of MNE subsidiaries in India. We conclude with implications for future research.     

Subsidiary roles,vertical linkages and economic development: Lessons from transition economies

Vertical supply chain linkages between foreign subsidiaries and domestic firms are important mechanisms for knowledge spillovers, contributing to the economic development of host economies. This paper argues that subsidiary roles and technological competences affect the extent of vertical linkages as such as well as their potential for technological spillovers. Using survey evidence from 424 foreign subsidiaries based in transition economies, we tested for the effect of subsidiaries’ autonomy, initiative, technological capability, internal and external technological embeddedness on the extent and intensity of forward and backward vertical linkages. The evidence supports our main argument that the potential of technology diffusion via vertical linkages depends on the nature of subsidiary roles. We discuss the implications for transition as well as other developing countries.     

Entrepreneurial leadership and MNE subsidiary performance: The moderating role of subsidiary context

Managers of international subsidiaries, especially subsidiary CEOs, operate at critical interfaces within multinational enterprises (MNEs) and hold strategic responsibility for the operations in their country. Yet, their impact on subsidiary performance has received scant research attention. Building on the subsidiary entrepreneurship and strategic leadership literatures, we develop a model of how subsidiary CEOs’ entrepreneurial leadership affects subsidiary performance, and how this relationship is moderated by the subsidiary context that determines managerial discretion. We combine survey data of 291 international subsidiaries in South Korea with archival data to test our hypotheses. Our results show that subsidiary CEOs’ entrepreneurial leadership enhances subsidiary performance and that this relationship is strengthened by managerial discretion. Our study highlights the pivotal role of subsidiary CEOs within MNEs and contributes to a microfoundational understanding of international subsidiary management.     

How “space” and “place” influence subsidiary host country political embeddedness

As a part of multinational corporations (MNCs), subsidiaries operate in distinct host countries and have to deal with their external context. Host country political embeddedness, in particular, helps subsidiaries to obtain knowledge and understanding of the regulatory and political context, and to get access to local networks. Moreover, they get some guidance and support from their headquarters. Distance between MNC home and host countries, however, alienates subsidiaries from the MNC and influences the extent of subsidiary host country political embeddedness. We suggest that the host country political and regulatory context moderates the effect of distance on subsidiary host country political embeddedness by reducing the need and/or value of headquarters support. Using a sample of 124 European manufacturing subsidiaries, we find that distance (space) and context (place) matter jointly: the impact of distance is stronger for subsidiaries that operate in host countries with low governance quality and low political stability in place.