How do consumers categorize new hybrid products?

This article investigates how consumers categorize new hybrid products (NHPs). Given the limitations of the classical theories of categorization in the specific case of NHP, affordance, mobilized infrequently in marketing, turned out to be a useful categorization concept. Five types of NHP categorizations by consumers, based on the degree of affordance (low vs. high) and type of innovation (incremental vs. radical), have been detected and filled a gap in the literature on the subject.     

How do country regulations and business environment impact foreign direct investment (FDI) inflows?

How do multinationals choose which countries to invest in? This study addresses the essential question of the impact of regulatory variables in attracting or deterring foreign direct investment (FDI). We separate regulatory variables based on different stages of a firm’s life-cycle. Using World Bank data for 189 economies, we examine which host country regulatory factors influence inward FDI. We find that countries with stronger contract enforcement and more efficient international trade regulations attract more FDI. The interaction terms suggest that multinational companies are willing to trade-off a country's poorer institutional variable in return for another where the institutional variable is stronger. For example, multinationals are willing to invest in countries with less efficient entry and exit regulations in exchange for stronger contract enforcement. These results also have important implications for government policy reform.     

Selling digital services abroad: How do extrinsic attributes influence foreign consumers’ purchase intentions?

This article investigates, through the country-of-origin effect and value-in-use lenses, how the implementation of digital services creates opportunities for cultural industries to expand internationally. We argue that intrinsic attributes of cultural content such as the capacity to entertain are difficult to parameterize because they are somewhat experiential and subjective. This means that extrinsic cues are essential to foreign consumers when making a decision to purchase digital services. We specifically evaluate the influence of Britishness, cultural distance, exoticness, brand image, and flag-brand congruence on the purchase intentions of consumers in foreign markets. This study employs a unique consumer dataset with information on the internationalization of British cultural digital services. The depth and breadth of the survey data collected through collaboration with a UK media industry partner with a globally recognised brand is significantly richer than data used in previous studies. In particular, the study exploits a survey with 5,200 usable data points from consumers residing in fourteen geographically dispersed countries. Findings support theoretical predictions that Britishness, cultural distance, exoticness, brand image and flag-brand congruence are positively linked to the purchasing decisions. Theoretical and managerial implications are discussed.     

How do Japanese consumers perceive wireless ads? A multivariate analysis

This article explores the formation of Japanese mobile users’ attitudes to pull-type wireless advertising and their willingness to ‘click’ such ads. Both theoretical and practical considerations are used to develop a structural model, which is then tested using an empirical survey conducted in the greater Tokyo area. External search, content credibility and attitude towards ads are considered as antecedents of willingness to access. Attitude towards ads is conceptualised as a consequence of two psychological motives in wireless internet adoption: perceived infotainment and perceived irritation. The structural equation modelling indicates that all the paths are statistically significant, and provides strong empirical support for our basic propositions. A further analysis classifies the sample into three groups, i.e. e-newsletter subscribers, email users and voice users, according to their demographic data. The findings reveal that e-newsletter subscribers show the most positive perceptions on all the constructs, although the mean values of the total sample are well below an anchoring point. In addition, the principal characteristics of e-newsletter subscribers indicate that so-called ‘parasite singles’ (unmarried young females living with their parents, and with high disposable income) may be playing an important role in wireless internet adoption in Japan.     

How do 3-dimensional images promote products on the Internet?

The study investigates 3D virtual advertising as it affects the online shopping environment. It examines the vividness of mental imagery as a mediator, and consumers' need for touch and product type as moderators of the effects. An experiment conducted with 207 study participants and two product types, a watch and a jacket, indicates overall that 3D advertising outperforms 2D advertising in effectiveness. The vividness of mental imagery appears to directly influence attitudes and intentions by mediating the effects of 2D versus 3D. As expected, the 3D and 2D formats consistently differed more in their effects for geometric products than for material products. Consumers' NFT affected only intentions to revisit, interacting with product type and site type. For the watch product, 3D advertising is more persuasive for both high and low NFT consumers. Comparatively, for the jacket product, 3D strongly impacts low-NFT consumers only, but has no significant difference for high-NFT study participants.     

Tipped out: How do gratuities affect restaurant operations?

Tipping is a well-established social norm in North American restaurants. Researchers have given considerable attention to the interaction between consumers and servers, but less so to the relationships within a restaurant and even less so to restaurant managers’ perspectives. Our study, the first of its kind, used interviews and a survey to explore the perspectives of both restaurant managers and servers in identifying operational issues arising from tipping. Inequity and unfairness, loss of control of service quality, and difficulties in succession planning and promotion were identified. There is clearly a need to investigate strategies to mitigate some of these impacts.     

How do bankruptcy laws affect entrepreneurship development around the world?

How do bankruptcy laws as formal institutions affect entrepreneurship development around the world? Do entrepreneur-friendly bankruptcy laws encourage more entrepreneurship development at a societal level? We posit that if bankrupt entrepreneurs are excessively punished for failure, they may give up potentially high-return but inherently high-risk opportunities to start new businesses. Amassing a cross-country database from 29 countries spanning 19 years (1990-2008), we find that lenient, entrepreneur-friendly bankruptcy laws are significantly correlated with the level of entrepreneurship development as measured by the rate of new firm entry.     

Reflective versus unreflective country images: How ruminating on reasons for buying a country’s products alters country image

Based on the excitation-transfer model, this study considers how pondering on reasons for buying a particular country’s products influences country image (CI). We use an experimental approach to test our hypotheses and check for differences between unreflective/ad lib CI and reflective/reasoned CI measurements. The findings indicate differences between reflective and unreflective CI perceptions. These differences are more prominent for CI measurements relating to less well-known countries. Only a minority of consumers seem to knowingly buy a country’s products because of its reputation. Our research extends existing approaches to CI based only on country knowledge activation by incorporating the concept of motivational relevance and the applicability of activated knowledge. We also propose a segmentation scheme based on the motivational relevance of CI.     

How do consumers co-create their experiences? An exploration in the heritage sector

Abstract

Whilst the body of work around co-creation has grown, co-creation continues to be considered from a value perspective with key questions, such as what is actually being co-created, remaining unanswered. This article moves beyond value to experiences and explores co-creation of the consumption experience. The research examines the manifestations and antecedents of co-creation of the consumption experience from a consumer angle and presents a co-creation framework. Customer critic analysis with consumers from two exemplar heritage organisations is used to investigate co-creation. The findings illuminate three facets of co-creation: co-production, engagement, and personalisation. This paper addresses a gap in Service-Dominant Logic theory, arts/heritage, and broader marketing literature by distinguishing between co-creation of value and co-creation of the consumption experience and proposing a definitive conceptualisation of the latter. The proposed model progresses the co-creation discussion to an empirical level and provides a foundation for future research.     

How does FX liquidity affect the relationship between foreign ownership and stock liquidity?

This study investigates the roles foreign investors play in a representative emerging market, focusing on the relationship between foreign ownership and stock market liquidity as well as this relationship's response to foreign exchange (FX) liquidity. Our analyses yield three main results. First, the bid–ask spread and price impact of stock trades decrease along with foreign ownership, supporting the view that foreign investors tend to improve stock liquidity. Second, foreign ownership decreases along with a decline in FX liquidity, suggesting that foreign investors care about FX liquidity when determining their stock holdings. Third, stock liquidity increases continuously along with foreign ownership as FX liquidity decreases. Overall, this study's evidence indicates that foreign investors, as liquidity providers, can play a positive role in an emerging economy even when FX liquidity declines.     

Collective action clauses: How do they affect sovereign bond yields?

We study the effects of the adoption of collective action clauses (CACs) on government bond yields by exploiting secondary market data on sovereign bonds quoted in international markets from March 2007 to April 2011. CACs are assessed security by security. Using a panel data approach, we find a U-shaped effect of CACs on yields according to the credit rating of the issuer. While the impact is negligible for the highest ratings, a significant yield discount emerges for mid-range ratings, which is smaller for bad ratings and possibly insignificant for the worst ratings. This relationship appears fairly robust across a number of checks. This evidence may reflect the fact that CACs are valuable because they help with orderly restructuring unless the perceived probability of default is too small. Nevertheless, at low ratings, this effect can be weakened by an increasing risk of moral hazard.     

How do local and foreign firms compete? Competitive actions in an emerging economy

When foreign and local firms compete, they face competitors acting quite differently from themselves. Specifically, their ability to engage in timely and frequent actions is influenced by, respectively, the Liability of Foreignness (LoF) and the Liability of Localness (LoL). We explore how the trade-off between LoF and LoL influences the aggressiveness of competitive actions firms take in emerging markets. Specifically, we argue that LoF results in weaker government ties that inhibit the aggressiveness of competitive actions of multinational subsidiaries, while LoL results in weaker technological capabilities that inhibit competitive aggressiveness of domestic firms. We apply structural equation modelling on Chinese survey data to test hypotheses derived from these arguments and find empirical support. Our results shed new light on competitive dynamics in an emerging economy.     

Foreign company misconduct and how consumers’ punitive intent is influenced by country stereotypes and the perceived similarity between the foreign country and the home country

Using a previously untested similarity contingency model of country stereotypes, this study assesses the effects of country stereotypes, perceived country similarity, and their interplay on emotion-driven punitive intent toward foreign, wrongdoing companies. In Study 1, positive country stereotypes (warmth, competence) mitigate punitive intent by diminishing agonistic emotions (contempt, anger, and disgust). Study 2 demonstrates that perceived similarity with a wrongdoing company’s country of origin moderates the indirect effects of country stereotypes on emotion-driven punitive intent. Compensatory effects between country stereotypes and perceived country similarity emerge; with greater (lower) perceived country similarity, the indirect effects of country stereotypes on emotion-driven punitive intent are weaker (stronger). The results provide companies with relevant insights into (1) why consumers emotionally react as they do to wrongdoing companies of different nationalities and (2) how to counterbalance negative effects of company misconduct by harmonizing elements of countries’ warmth, competence, and perceived country similarity in branding and communication content.     

How do accounting standards and insiders' incentives affect earnings management? Evidence from China

Chinese listed companies recently experienced two important institutional changes: split share structure reform (SSSR) and the mandatory adoption of IFRS-convergent new accounting standards (NAS). We find that the introduction of NAS significantly increased earnings management. Although we do not find evidence that SSSR directly decreased earnings management of the average firm, the increase in earnings management surrounding the introduction of NAS is negatively related to the reduction in non-tradable shares. These results suggest that accounting standards are the more important factor associated with the level of earnings management. Insiders' incentives affect earnings management given a specific set of accounting standards.     

How do personality interactions affect service quality? the perspective of processing efficiency theory

Conscientiousness and emotional stability are important independent predictors of service outcomes. However, previous studies have not investigated the effects of their interaction on service outcomes. Thus, this study adopted processing efficiency theory to investigate how the interaction between conscientiousness and emotional stability affects service quality. This study adopted a cross-sectional design, used questionnaires to collect data. The results indicate that the interaction of conscientiousness and emotional stability influences service quality. Additionally, the study found that the conscientiousness of emotionally stable service personnel was positively related to service quality.     

Does founder ownership affect foreign investments? Evidence from India

We study the effect of founder ownership on foreign investments for Indian firms. We show that foreign investors underinvest in firms with higher level of founder ownership, since these firms are more vulnerable to information problems and expropriation risk. This effect is particularly stronger when founder ownership exceeds a threshold beyond which founders hold effective control on firms. We exhibit that information problems are the main cause of the relation between foreign investments and founder ownership. This is because the relationship is more pronounced in case of business group firms and firms that are engaged in more earnings management.     

How much does host country matter,really?

How much does the host country matter in explaining foreign affiliate performance? Using a global sample of 34,708 foreign affiliates operating in 91 host countries, we revisit the relative importance of the host country effect as a performance determinant. Our variance decomposition results suggest that the host country effect is less salient than previously identified, often explaining a small portion of affiliate performance differences. We offer implications for future international strategy research on foreign affiliate performance, advancing an understanding of the relative importance of external and internal determinants. We direct scholarly attention to other effect classes, namely the affiliate effect.     

How do work-family balance practices affect work-family conflict? The differential roles of work stress

This paper investigates the relationship between employees’ perception of work-family balance practices and work-family conflicts. It examines the role of challenge stress and hindrance stress as moderators. Based on survey data collected from 841 civil servants in Beijing, we found that perceived work-family balance practices may reduce work-family conflict, while challenge and hindrance work stresses were positively related to work-family conflict. In addition, challenge and hindrance stresses differentially moderated the relationship between perceived work-family practices and work-family conflict. When challenge stress is high then work-family balance practices will reduce work-family conflict. However, under high hindrance stress, work-family balance practices will serve to reduce work-family conflict less. More detailed analysis of the configurational dimensions of work-family balance practices (work flexibility, and employee and family wellness care) are also tested. This study provides additional insight into the management of work-family interfaces and offers ideas for future research.     

Marketing capabilities and innovation. How do they affect the financial results of hotels?

From the point of view of firms’ managers, the knowledge of the factors which explain their firms’ financial results is considered of great usefulness to propose the most appropriate and profitable marketing strategies and actions. This research sets out from this central idea and proposes a model of relationships that considers the marketing results, the marketing capabilities, and the innovation capability as key factors for achieving good financial results. This model is verified via an empirical investigation carried out among 200 directors of hotel establishments in Andalusia, a region in the south of Spain which is one of the country's main tourist destinations. The results indicate that innovation capability is strongly conditioned by marketing capabilities and resources and that this innovation capability affects the financial results of the firms analyzed. Likewise, it is deduced that a market-oriented management philosophy contributes to the development of these marketing capabilities. The implications for management are considered very relevant as they must lead these firms to invest in the development of marketing resources and capabilities, and apply a market-oriented management philosophy if they wish to improve their financial results.     

How do manufacturing exports react to the real exchange rate and foreign demand? The Chilean case

How do manufacturing exports react to the real exchange rate and to foreign demand? We investigate this question with a Chilean panel data spanning from 2003Q1 to 2016Q4, using publicly available data. In the long term, we find that exports strongly co-integrate with external demand, whereas not with the level of the real exchange rate. The short-run elasticities of manufacturing exports differ in size: (a) the elasticity of foreign demand—approximated by trading partners' activity aggregates—ranges between 0.8 and 1.4; and (b) the elasticity with respect to the bilateral real exchange rate is comprehended in the interval [0.4–0.6]. Core estimated elasticities pass usual robustness checks. The fall in manufacturing exports' growth in 2014–16 is consistent with a persistent slowdown in foreign demand, which has been partially offset by an average depreciation of the bilateral real exchange rate (with respect to destination countries of these exports). The transience of the effect of the real exchange rate is coherent with its exhibited stationarity and also consistent with its role of shock absorber.