Building customer loyalty in retailing: not all levers are created equal

This research examines the determinants in building and maintaining customer loyalty in grocery retailing. The first part introduces a distinction between traditional, ‘mass’ levers such as range and price, and relational, ‘targeted’ levers based on individual customer information. The second part focuses on the role ofthese two sets of levers for differentiation, that is, to what extent they are perceived by customers as distinctive to a retailer. For the first time, parallel analysis of retailers and consumers is used to obtain a dual perspective on loyalty drivers. Most supermarket chains in Italy today are found to invest marketing resources in the ‘mass’ levers of range and price. They are also starting to use other levers for differentiation, although effectiveness of their attempts varies a great deal and the perception of diversity by customers varies a lot from one banner to another. We also find that relational levers cannot be separated from traditional levers to sustain loyalty, but they clearly play a secondary role. Investment in targeted marketing is no substitute for that in traditional mass loyalty tools such as range and price.     

Subsidiary knowledge flow strategies and purpose of expatriate assignments

Although a general association between the role of international assignees and knowledge transfer has been noted in the international human resource literature, very little is known on how subsidiary knowledge flow strategies influence the purpose of expatriate assignments. Building specifically on Gupta and Govindarajan’s typology of subsidiary knowledge flow strategies and Hocking’s expatriate assignment purpose, we examine the link between subsidiary knowledge flow and the purpose of expatriate assignments using a mixed method approach. Combining survey data and qualitative interviews from 156 subsidiaries in the service and manufacturing sector in Malaysia and Singapore, we find that subsidiaries with divergent strategic roles have different knowledge flow strategies, thus leading to different purposes of expatriate assignments.     

Technology,innovation and knowledge: The importance of ideas and international connectivity

The relevance of ideas is at the core of the IB field and has been captured in concepts like technology, innovation and knowledge. While these concepts have evolved over the last decades, the point that the ideas and the international connectivity are central for IB remains genuine. This paper is an attempt to take stock of the evolution of the concepts technology, innovation and knowledge in IB literature along the past five decades with a particular focus on the role of the Columbia Journal of World Business (CJWB) and the Journal of World Business (JWB) in this evolution. Likewise, our objective is to offer a research agenda for the coming decade. We proceed in two steps. First, we scrutinize how the IB literature has progressed and expanded over the last five decades, illustrating this on the basis of articles published in CJWB and JWB. Second, we take a helicopter view on this literature and reflect on the insights we have gained and the challenges the IB field has ahead that can constitute the basis for a future research agenda. We highlight the importance of creating a micro-foundation of knowledge processes where mechanisms on the interaction between the higher levels (nation, firm, teams) and the individual level are clarified.     

Customers on the web are not all created equal: the moderating role of internet shopping experience

Consumers' previous shopping experience has been found to be an important influence on future shopping intentions. Prior internet shopping experience, however, has been largely overlooked as a moderator of attitudes and online-retail outcomes. Specifically, key influences on online retail buying behavior such as site reputation, advertising likeability, site security and hedonic and utilitarian shopping values can be expected to have differential effects on intentions to repatronize an e-commerce website based on the level of internet shopping experience by prospective buyers. This study proposes and tests an integrated model in which level of prior internet shopping experience is treated as a moderator of relationships among attitudinal variables and repatronage intentions with the variable attitude toward the site as a mediator of buying intentions. Findings are consistent with the proposed model with an interesting exception. Perceptions of site security were in the opposite direction of the model prediction. Managerial and theoretical implications are provided for consideration.     

Expatriate utilization,subsidiary knowledge creation and performance: The moderating role of subsidiary strategic context

Little research examines the mechanisms for the relationship between expatriate utilization and subsidiary performance. Building on the knowledge-based view of the firm, we propose a multi-stage mediation model to explain how expatriate staffing promotes subsidiary financial performance. Our results underscore that expatriate utilization has an indirect, mediated effect on subsidiary financial performance through its links with subsidiaries’ knowledge creation and product performance. Adopting a moderated mediation approach, we also find that the indirect relationship between expatriate utilization and subsidiary product performance via subsidiary knowledge creation is strengthened by the context of transnational strategy as a moderating contingency.     

Not all organic food is created equal: the role of product type,perceived authenticity,and construal level

Abstract

Consumption of processed organic food is on the rise while fresh organic food still dominates organic food market. Drawing from the literature on authenticity and construal level theory, this study aims to investigate the role of perceived authenticity and message construal level in consumers’ evaluations of two types of organic food (fresh vs. processed). Two experiments were conducted among college students (N = 129, Study 1) and adults 18–70 (N = 249, Study 2). Our findings suggest that consumers’ evaluations of organic food are fully mediated by perceived authenticity of each organic food type. Specifically, compared to processed organic food, consumers perceive fresh organic food more authentic, which leads to more favorable attitudes and higher purchase intention. This research further demonstrates that the indirect effect of organic food type via perceived authenticity is moderated by construal level of marketing messages. That is, when messages are construed at a low level, consumers tend to have more positive attitudes and higher purchase intention toward fresh than processed organic food. By contrast, product type makes no difference when messages are construed at a high level. These findings have clear implications on message development strategy when promoting processed organic food, in particular. Future research directions are discussed.     

The supply-side of environmental sustainability and export performance: The role of knowledge integration and international buyer involvement

Most of previous studies seek to understand buyer perspectives in green supply chain relationships and devote inadequate attention to the strategic role of upstream suppliers. Drawing on a market-oriented approach to sustainability, this paper examines the enabling factors and processes that underpin how export suppliers from emerging economies leverage their strategic intent to develop knowledge integration capacity for achieving improved export performance. The results from a sample of Chinese exporters show that the relational capacity of knowledge integration mediates the performance impact of market-oriented environmental sustainability, and such a mediating process of leaning is further enhanced by international buyer involvement. We reveal that relationship efforts should be directed at developing integrative capacity involving key partners for implementing proactive environmental strategy in international business-to-business (B2B) markets. This study contributes to the research of supply chain sustainability in a global context.     

Transfer mechanisms and knowledge transfer: The cooperative competency perspective

This study examines the role of transfer mechanisms, including replication and adaptation, in knowledge transfer from the cooperative competency perspective. This study tests the hypotheses in a sample of 120 knowledge transfer cases. The results indicate that transfer mechanisms relate positively to cooperative competency with partnering firms, which then improves knowledge transfer performance. The results provide evidence that cooperative competency plays a mediating role between transfer mechanisms and knowledge transfer performance. The findings of this study contribute to the theoretical development of a conceptual model for explaining the interrelationships among transfer mechanisms, cooperative competency, and knowledge transfer performance. The empirical evidence of the Sobel test in line with Baron and Kenny's procedure and bootstrap analysis supports the process-oriented view and indicates that cooperative competency mediates the effects of transfer mechanisms on knowledge transfer performance. Finally, this study discusses the managerial implications and highlights future research directions.     

HRM practices affecting extrinsic and intrinsic motivation of knowledge receivers and their effect on intra-MNC knowledge transfer

This paper explores why and how human resource management (HRM) matters for knowledge transfer within multinational corporations. It is built on the premise that there are certain HRM practices influencing extrinsic and intrinsic motivation of knowledge receivers. It is found that complementarity among HRM practices exists but does not always have a positive effect on knowledge transfer. Three hypotheses derived from these arguments are tested on data from 92 subsidiaries of Danish multinational corporations located in 11 countries.     

Interlocking directorates and the knowledge transfer of supermarket retail techniques from North America to Britain

Abstract

This paper considers the importance of interlocking directorates in knowledge transfer within the retail sector. In doing so it provides a discussion of the types of knowledge and more especially the importance of tacit knowledge. Such ideas are set against a more detailed review of the changing perspectives on the role of interlocking directorships. These discussions serve as a conceptual framework to a major case study of knowledge transfer between North America and British food retailers in terms of the innovation of self-service and the development of supermarkets in post-war Britain.     

Managing global knowledge transfer: Inpatriate manager embeddedness and firm innovation

The purpose of this study is to explore the role of tacit knowledge transfer in a particular type of global manager - the inpatriate manager who is typically relocated from the MNC’s subsidiary to headquarter. To do so, we draw on social embeddedness theory. Our paper suggests that if an inpatriate manager becomes embedded within the MNCs headquarter, tacit knowledge transfer will occur resulting in innovative practices and a global mindset within the MNCs headquarters. This study takes the unique approach of studying the barriers that inpatriate managers face in the transfer of tacit knowledge and highlights the role of human resources in facilitating the transfer of knowledge across the MNC. The paper articulates the implications for policy and practice and a future research agenda.     

Absorptive capacity in foreign subsidiaries: The effects of language-sensitive recruitment,language training,and interunit knowledge transfer

Are multinational corporations able to enhance the development of absorptive capacity in foreign subsidiaries through language-oriented human resource management (HRM) practices? Taking into account that a shared language enhances absorptive capacity and that many multinational corporations are multilingual entities, this question is relevant but given little focused attention in international business research. In this paper, we hypothesize that two language-oriented HRM practices – language-sensitive recruitment and language training – enhance absorptive capacity in foreign subsidiaries. In addition, we hypothesize that interunit knowledge transfer partially mediates the positive relationship between these language-oriented HRM practices and absorptive capacity. Analyses of survey data derived at three points in time from 574 foreign subsidiary units in Japan provide support for these hypotheses.     

When same is (not) the aim: A treatise on organizational cultural fit and knowledge transfer

Multinationals (MNCs) need to find the balance between developing a globally standardized organizational culture and having multiple locally- adapted organizational cultures. Past literature embodies the bias that differences between MNC units, unless managed, would lead to adverse consequences. To counter this negative bias, we focus on cultural fit, which is the amount of difference yielding maximum benefit. We argue that depending on comparison criterion and desired outcome, fit could be achieved by establishing similarities or maintaining differences. Using evolutionary economics, we explore knowledge transfer within MNCs and test our hypotheses on fit using a unique dyadic dataset from 186 MNCs.     

Mobility of public researchers, scientific knowledge transfer, and the firm's innovation process

The present study provides evidence on the mobility effects of researchers from the public R&D system with regard to firm's innovation process. This issue is particularly novel and important as these researchers contribute to the production and transfer of knowledge previously developed and accumulated in the public R&D system. The findings confirm that scientific knowledge which public researchers provide has a positive influence on both inputs and outputs of the firms' innovation process. The fact that firms have access to additional knowledge which is complementary to that they already hold represents a spur for exploiting and applying this new knowledge. The firms in this study continually increased their in-house R&D investments. As a result of these investments firms create new knowledge of a unique and valuable type. The study draws two important conclusions geared to providing a greater efficiency in human resource management and to improve the design of technology policies.     

Exploring reverse knowledge transfer and asset augmentation strategy by developed country MNEs: Case study evidence from the Indian pharmaceutical industry

Using an in-depth qualitative longitudinal case study approach, we examine strategic asset and knowledge augmentation strategies of an advanced economy multinational enterprise (MNE). Our study is unique as it is contextualized in the knowledge-intensive pharmaceutical industry within the changing institutional landscape in India. And, in contrast to previous studies, it focuses on RKT from a newly acquired subsidiary where the protocol for knowledge transfer and relationship between MNE headquarters (HQ) and subsidiary does not exist. We contribute to the evolving literature on reverse knowledge transfer (RKT) which assumes that MNEs extract knowledge from their existing subsidiaries to strengthen their competitive advantages. We also reveal that MNEs design an architecture, that is reflected in the mechanism, governance structure, and timing, for efficient transfer and effective absorption of the knowledge and assets acquired. We introduce a novel concept of ‘reverse asset augmentation’ (RAA) to capture the MNE’s behavior of strategic asset seeking from emerging economies. RAA is parallel to and entwined with RKT conceptualization as knowledge is embedded within certain physical assets, other assets, such as brand name/image, may not embody knowledge. Thematic and processual analysis of interview data, collected in three phases, suggests that RAA complements RKT and that both concepts together capture the unconventional strategies of advanced economy MNEs acquiring emerging economy MNEs in search of strategic assets and knowledge.     

Entrepreneurial growth: The role of international knowledge acquisition as moderated by firm age

In line with repeated recent calls for research on specific forms of growth rather than on an undifferentiated notion of “total growth,” our study contributes to the understanding of entrepreneurial growth. By this we mean growth through expansion into new geographic markets and/or via the introduction of new products or services. Building on Penrose's theory of the growth of the firm and on the research streams she has in part inspired, we investigate the impact of knowledge acquisition from international markets on entrepreneurial growth both at home and abroad. We further suggest that the effects of international knowledge acquisition on entrepreneurial growth will vary with firm age. Utilizing longitudinal data on 138 small and medium-sized enterprises (SMEs), we find that the acquisition of knowledge from international markets fuels growth through market development, and that this effect is stronger for international expansion than domestic expansion. Our results also show that firm age negatively moderates the relationship between international knowledge acquisition and entrepreneurial growth via the introduction of new products or services. Specifically, international knowledge acquisition has a positive effect on growth via new products/services development in young firms, but a negative effect in mature firms. We assume this reflects changes over time in how international knowledge is managed.     

Local and international knowledge search and product innovation: The moderating role of technology boundary spanning

Drawing on the external knowledge search literature and the literature on international diversification, this study examined the interactive effect of local and international search for new knowledge on product innovation and the moderating role of a firm's technology boundary spanning activities. Specifically, it proposed that extensive local and international search interact to positively predict product innovation success and this relationship is weaker for firms entering a new technology domain. The results using data on 343 Chinese manufacturing firms across 5 industries indicated the support for the predictions.     

Generalizing patterns of store-type patronage: an analysis across major Chinese cities

A systematic, analytical study is presented of patterns of patronage across store types (including hypermarkets, supermarkets, grocery stores and free/wet markets) in urban China. Using consumer panel data collected from a cumulative sample of almost 5000 households, results are generalized across 8 major cities (from the North, South, East and West of China) and 6 packaged goods categories (including traditional Chinese items like soy sauce and more contemporary items such as packaged laundry detergent). Analyses show that there are definite patterns of store-type patronage in urban China, most of which are predictable from the NBD–Dirichlet model (e.g. double jeopardy and the duplication of purchase rule). These patterns generalize across all the city/category combinations studied in this paper, although some important deviations are also identified (e.g. an excess loyalty premium). It is shown how retailers and planners can make use of the observations and theoretical predictions to assess key measures of patronage.     

Repatriate knowledge transfer: Antecedents and boundary conditions of a dyadic process

In this study, we build on the ability-motivation-opportunity framework to test whether both repatriates’ disseminative capacity and domestic employees’ absorptive capacity as well as their opportunities for interaction affect repatriate knowledge transfer. Further, we examine the moderating effects of two distinctive factors associated with repatriate knowledge transfer: repatriate knowledge characteristics and characteristics of international assignments. Using multi-source time-lagged data from 101 dyads, we find support for most of our hypotheses. Our study contributes to theory and practice by providing an integrated analysis of antecedents and boundary conditions of repatriate knowledge transfer and by highlighting its dyadic nature.     

Determinants of knowledge transfer strategy in franchising: integrating knowledge-based and relational governance perspectives

This study presents an integrative model on the franchisor's choice of knowledge transfer strategy by deriving hypotheses from the knowledge-based theory and the relational governance view. First, based on the knowledge-based view, tacitness of system-specific knowledge influences the choice of the knowledge transfer strategy of the franchisor. The higher the degree of tacitness of knowledge, the more knowledge-transfer mechanisms with a high degree of information richness (HIR) are used, such as training, seminars, visits and formal meetings, and the more likely the franchisor chooses a personalization strategy (P-S). Conversely, the lower the degree of tacitness of system-specific knowledge, the more knowledge transfer mechanisms with a low degree of information richness (LIR) are used, such as reports, emails, intranet, databases, and the more likely the franchisor chooses a codification strategy. Second, based on the relational view of governance, trust influences the choice of knowledge transfer strategy of the franchisor. If trust reduces relational risk, more trust reduces the franchisor's use of HIR-knowledge transfer mechanisms and increases the franchisor's use of LIR-knowledge transfer mechanisms. If trust increases knowledge-sharing between the network partners, it increases the franchisor's use of both HIR- and LIR-knowledge-transfer mechanisms. The hypotheses are tested by using data on the use of the P-S in the Austrian franchise sector. The data provide some support for the hypotheses. A new model on the franchisor's choice of knowledge transfer strategy, using knowledge-based theory and relational view of governance is developed, and specifically, the knowledge-based view of Windsperger and Gorovaia [(2011). Knowledge attributes and the choice of knowledge-transfer mechanisms in networks: The case of franchising. Journal of Management and Governance, 15(4), 617–640] is extended by considering trust as additional explanatory variable of the knowledge-transfer strategy.