What do Corporations have to do with Fair Trade? Positive and Normative Analysis from a Value Chain Perspective

The job of a leader includes caring for others, or taking responsibility for them. All leaders face the challenge of how to be both ethical and effective in their work. This paper focuses on the requirement that leaders be present to care for their followers in times of crisis. It examines the story of Nero playing his fiddle while Rome burns. This is a tale that has been repeated in various forms by ancient historians and modern writers. The fact that the story gets repeated through the ages tells us about the kind of care that people expect from their leaders.

Rethinking the Role of Value Communication in Business Corporations from a Sociological Perspective – Why Organisations Need Value-Based Semantics to Cope with Societal and Organisational Fuzziness

Why is it so plausible that business organisations in contemporary society use values in their communication? In order to answer this question, a sociological, system theoretical approach is applied which approaches values not pre-empirically as invisible drivers for action but as observable semantics that form organisational behaviour. In terms of empirical material, it will be shown that business organisations resort to a communication of values whenever uncertainty or complexity is very high. Inevitably, value semantics are applied in organisations first when the speakers are uncertain about which stakeholders to whom they have to address (uncertainty) or when different stakeholder groups have to be addressed simultaneously (complexity); second, when the identity of the organisation has to be described; and third, when future strategic options that cannot be expressed by quantitative terms have to be communicated. Values accordingly play a role in organisational practice when certain aspects are indeterminate. Therefore, they are a means for organisations to communicate under fuzzy circumstances. On the basis of these findings, new approaches to value management can now be formulated.     

Does Business and Society Scholarship Matter to Society? Pursuing a Normative Agenda with Critical Realism and Neoinstitutional Theory

To date, B&S researchers have pursued their normative aims through strategic and moral arguments that are limited because they adopt a rational actor behavioral model and firm-level focus. I argue that it would be beneficial for B&S scholars to pursue alternate approaches based on critical realism (CR) and neoinstitutional theory (IT). Such a shift would have a number of benefits. For one, CR and IT recognize the complex roots of firm behavior and provide tools for its investigation. Both approaches also note the importance of social context and IT, in particular, points to tangible sites where changes in (and outcomes of) corporate practices can be assessed. CR also has an emancipatory ethos which harkens a role for scholars in social change, while IT provides mechanisms to ground this ethos in tangible activities that go beyond appealing to managers’ strategic or moral sensibilities.     

Trade Policy and Export Diversification: What Should Colombia Expect from the FTA with the United States?

Sectoral concentration of exports has been a longstanding matter of concern for policymakers in developing countries. According to economic theory and recent empirical evidence, improved market access through trade agreements is likely to favor export diversification. In this article, it is assessed whether this has been the case for Colombian exports to the United States and whether an FTA with the United States would help Colombia diversify their exports. We find that lower tariffs have indeed favored exports of new products from Colombia. Predictions suggest that the FTA is likely to induce further diversification, but only up to a certain point.     

Barriers to Exporting: What are They and Who do They Matter to?

The international trade literatures on gravity modelling and firm‐level export behaviour have established that nontariff barriers are important impediments to international trade flows. In this paper, we provide fresh evidence on the actual barriers to exports firms face and how they vary with firm‐level characteristics. Our results indicate that the higher the export experience of firms the lower are the trade costs they face. These barriers are not related to other firm‐level characteristics, such as productivity and size, found by the literature to be associated with export market entry. Overall, these results suggest the existence of a process of learning to export whereby firms learn how to cope with export barriers through direct experience in export markets.     

Socially responsible entrepreneurs: What do they do to create and build their companies?

This paper examines 30 entrepreneurs who created profitable companies, and who were also exemplary in their efforts towards social responsibility. It examines their management practices to understand how these socially responsible entrepreneurs created and built their companies. The study reveals that these socially responsible entrepreneurs founded their companies, at least in part, to achieve idealistic objectives, and pursued financial and non-financial objectives simultaneously. Most avoided financing from institutional sources, hired employees for their shared values, and shrewdly leveraged their social identities to differentiate themselves in the marketplace. Many of these entrepreneurs made unusual efforts to create a strong organizational culture and implement sustainable operational processes to meet their self-imposed ethical standards. These socially responsible entrepreneurs gave a substantial amount of their profits to causes of their choosing, and volunteered themselves as role models for other businesses and entrepreneurs to follow.     

What drives consumers to shop on mobile devices? Insights from a Meta-Analysis

The penetration of mobile devices has reshaped consumers’ shopping journeys, drawing the attention of both scholars and practitioners. Over the last two decades, a rich strand of empirical studies across disciplines has been conducted on the factors underlying mobile shopping behavior. We provide and test a comprehensive framework for both the key drivers of consumers’ initial adoption and the continuance intention to use mobile devices for purchasing. To achieve this goal, we conduct a meta-analysis, in which we integrate the findings from the literature and apply a structural equation modeling approach. Our work builds on the existing theories (Technology Acceptance Model, Theory of Planned Behavior, and Unified Theory of Acceptance and Use of Technology) and offers an extensive understanding of the variables that shape mobile shopping behavior. Based on 207 articles, with 228 studies, 4,354 effect sizes, a total sample size of 68,944 shoppers, our findings show that mobile shopping is influenced by variables that reflect the evolution of technological innovations and the consequent improvement of the functionality and convenience of mobile devices (previous digital experience and ubiquity). Managerially, based on these findings, we provide a future research agenda and the key implications for firms to develop for a successful marketing strategy throughout the mobile customer journey. Companies should focus on both utilitarian and hedonic variables to stimulate the intention to use the mobile for the first time. In addition, to increase continuance intention to use mobile for shopping, they improve customer satisfaction, through enjoyment and the three dimensions of quality of the mobile channel.     

The Importance of the Indirect Transfer Mechanism for Consumer Willingness to Pay for Fair Trade Products—Evidence from a Natural Field Experiment

A natural field experiment is conducted on the determinants of consumer’s willingness to pay for “fair trade” (FT) products. In four treatments, subjects are offered different choices in connection with a coffee purchase, such as buying regular coffee or FT coffee at a premium, regular coffee with or without a premium, or donating directly or not donating. Depending on the treatment, the premium or direct donations are either given to FT or a well-known charity. A large part of the willingness to pay a premium for FT coffee over regular coffee is shown to be not related to the specific attributes of FT coffee but rather caused by the indirect transfer mechanism that FT uses, i.e., selling products at a premium which goes to the cause of FT.     

What type of cooperation with suppliers and customers leads to superior performance?

This research evaluates cooperation with key suppliers and customers, correlating cooperation to financial performance. Four cooperative behaviors represent cooperation as a multidimensional concept and the research explores the effect of each of these different dimensions of cooperation on performance. Results show that not all cooperative behaviors have similar and positive impacts on performance. Flexibility has no significant effect while shared problem solving has a negative effect. The other two cooperative behaviors, information exchange and restraint in the use of power, have positive impacts on performance. Results also indicate that cooperation with customers affects mostly firm growth while cooperation with suppliers affects firm profitability. Based on a survey of 124 packaging manufacturers, the analysis uses CFA (Confirmatory Factor Analysis) to validate the measurement of constructs and multiple regressions to analyze the relationships between the cooperative behaviors and financial performance.     

The art of writing literature review: What do we know and what do we need to know?

A literature review article provides a comprehensive overview of literature related to a theme/theory/method and synthesizes prior studies to strengthen the foundation of knowledge. In the growing International Business (IB) research field, systematic literature reviews have great value, yet there are not many reviews published describing how researchers can design and develop classic review articles. In explaining the purpose, methodology, and structure of a systematic review, we provide guidelines for developing most insightful and useful review articles. By outlining steps and thumb rules to keep in mind, we present an overview of different types of review articles and explain how future researchers could potentially find them useful. In addition, we introduce nine articles finally selected for this special issue of systematic literature review-Looking back to look forward International Business research in the days to come.     

What can Johnson & Johnson do to remain a giant in the health care industry?

As a major Fortune 500 corporation and manufacturer of significant drug products for the pharmaceutical industry, Johnson & Johnson has also had its share of marketing crisis, including the classic case example of The Tylenol Scare in Fall, 1982, so they can appreciate the need for effective marketing performance and customer responsiveness. This article will examine how Johnson & Johnson has adapted to a highly volatile business environment and how they can be benchmarked for highly competitive marketing strategies and practices.     

What do consumers want? A methodological framework to identify determinant product attributes from consumers’ online questions

Determinant attributes play an important role in consumers’ purchase decisions. Firms rely on them to differentiate their products. Determinant attributes are typically identified using direct methods or indirect methods. However, the voice of the customer online can also provide key insights regarding attributes that are part of the consumers’ pre-purchase search process. The purpose of this study is to propose a framework to identify determinant attributes from online consumer questions. Our method uses semi-supervised Latent Dirichlet Allocation to identify product attributes initially. This is followed by the application of sequence pattern mining to identify temporal sequences of determinant attributes. Finally, hierarchical time series is used to forecast consumer interest in determinant attributes over time. The results show that our study can be used to identify determinant attributes of competing brands and can also be used to forecast consumer interest in these attributes. Brands can use this framework to have a pulse on what consumers look for before purchase. This will aid their decisions related to promotion as well as product development processes.     

What causes Chinese listed firms to switch bank loan provider? Evidence from a survival analysis

This paper analyses the duration of firm-bank relationships and examines what drives firms in China to change from one bank loan provider to another. Matched data of firm-loan-duration to bank provides a unique panel data set of relationship between China's listed firms and their lending banks consisting of 2102 firms listed on both the Shanghai Stock Exchange and Shenzhen Stock Exchange in the period of 1996–2016. The Cox proportional hazard model is used to allow for a semiparametric hazard function after parametrically controlling for firm-specific financial factors, industry factors, ownership characteristics, internal management changes, and external macroeconomic changes. In addition, we explore the impact of the 2008 financial crisis, bank-financial and ownership characteristics. The main finding of this study is that in an environment of growing commercialisation of relationships the firm-bank relationship between state-owned enterprises (SOEs) and state-owned banks (SOBs) in China remains super-stable. However, a change in the CEO of a firm even of a SOE increases the probability of the loan-provider being changed.     

To What Extent is Business Responding to Climate Change? Evidence from a Global Wine Producer

Most studies on climate change response have examined reductions in greenhouse gas (GHG) emissions. Yet these studies do not take into account ecosystem services constraints and biophysical disruptions wrought by climate change that may require broader types of response. By studying a firm in the wine industry and using a research approach not constrained by structured methodologies or biased toward GHG emissions, the findings suggest that both “inside out” and “outside in” actions are taken in response to climate change. While attempts are made by the firm to curtail and reverse climate change through management of carbon emissions, evidence suggests a clear pattern of actions designed to adjust to the adverse consequences of climate change as well. The results both confirm and extend previous findings and suggest that the level and breadth of response to climate change is shaped by situated attention, structural controls, and industry type.     

When do domestic alliances help ventures abroad? Direct and moderating effects from a learning perspective

While the importance of strategic alliances for new venture internationalization is well acknowledged, the effect of domestic partners remains less understood. Building on organizational learning theory's vicarious learning arguments, we suggest that internationally experienced domestic partners positively influence new ventures' international intensity. Moreover, acknowledging that ventures may have multiple learning sources, we argue that the effect is more pronounced when substituting for the lack of new ventures' top management teams' international experience, or when complementing the insights about foreign markets received from foreign alliance partners. The analysis of 194 publicly held new ventures largely supports our hypotheses.     

What Makes a Business Ethicist? A Reflection on the Transition from Applied Philosophy to Critical Thinking

Using a sample of 21,030 US firm-year observations that represents more than 3000 individual firms over the 1998–2012 period, we investigate the relationship between Corporate Social Responsibility (CSR) and investment efficiency. We provide strong and robust evidence that high CSR involvement decreases investment inefficiency and consequently increases investment efficiency. This result is consistent with our expectations that high CSR firms enjoy low information asymmetry and high stakeholder solidarity (stakeholder theory). Moreover, our findings suggest that CSR components that are directly related to firms’ primary stakeholders (e.g. employee relations, product characteristics, environment, and diversity) are more relevant in reducing investment inefficiency compared with those related to secondary stakeholders (e.g. human rights and community involvement). Finally, additional results show that the effect of CSR on investment efficiency is more pronounced during the subprime crisis. Taken together, our results highlight the important role that CSR plays in shaping firms’ investment behaviour and efficiency.     

Is it better for salespeople to have the highest customer orientation or a strong fit with their group's customer orientation? Findings from automobile dealerships

The purpose of this study is to examine how retail salesperson-group fit on customer orientation impacts sales performance. Customer orientation fit will be compared against the amount of customer orientation to answer the question of whether it is better to have higher customer orientation or consistent customer orientation. This study shows that fit with the group's customer orientation is more important than having a high customer orientation; individuals who deviate from the group's customer orientation have lower performance than individuals who fit their group's customer orientation. Although previous research finds that group-level performance is stronger in groups that have consistently high customer orientation, we find that individual sales performance depends on fit with other group members, regardless of the orientation of the group.     

What is SMS advertising and why do multinationals adopt it? Answers from an empirical study in European markets

This study examines the factors associated with the intention of multinational corporations operating in Europe to implement SMS advertising. It hypothesizes that managerial intentions to use this medium are related to the perceptions of four factors: (1) the ability to build brand image; (2) the ability to use location-based marketing; (3) the perceptions of how well consumers accept SMS advertising; and (4) the perceptions of the technological infrastructure. Results support the notion that managers from the European Union, Japan, and the United States will be more likely to adopt SMS advertising if they perceive it has the ability to help build the brand. They are also likely to perceive information security as a threat to the ability to “push” the product through the wireless channel. Results also suggest that managers give significant weight to the penetration of the technological infrastructure needed to run the ads through SMS-based messaging service.     

Predicting satisfaction and intentions to use online food delivery: What really makes a difference?

ABSTRACT

Online food delivery (OFD) is no longer a new concept for the majority of Americans. Large food delivery companies make millions in revenues and those numbers are expected to increase. This study was conducted to investigate customer intentions to use OFD services through the evaluation of satisfaction, food quality, and OFD service quality. The OFD service quality was assessed via e-SELFQUAL dimensions, and included perceived control, service convenience, customer service, and service fulfillment. The study determined that food quality, control, customer service, and service fulfillment affect customer satisfaction in online food delivery services. Customer satisfaction showed a strong positive impact on behavioral intentions to use OFD.