Choice Based on Goals

This article introduces a goal-based view of consumer choice in which (1) choice is influenced by three classes of goals (consumption goals, criterion goals, and process goals), (2) goals are cognitively represented, and (3) the impact of a goal on choice depends on its activation. For each class of goals, we discuss how goal activation is influenced by direct (subconscious) goal priming, by spreading activation from choice options, from other goals, and from the context, and by goal (non-)achievement. Opportunities for modeling goal-based choice, the integration of emotions in a theory of goal-based choice, and relationships with dual-process theories of decision making are discussed. An expanded version of this paper is available from the first author.     

Towards understanding who makes corporate venture capital investments and why

This study examines when established firms participate in corporate venture capital (CVC). We build on the resource-based view of interfirm collaboration and emphasize the strategic flexibility of CVC relationships. We use longitudinal data on 477 firms from 1990 to 2000 to test our hypotheses. We find that firms in industries with rapid technological change, high competitive intensity and weak appropriability engage in greater CVC activity. We also show that firms that possess strong technological and marketing resources and resources developed from diverse venturing experience engage in greater CVC activity. Finally, we find that these firm resources moderate the influence of the observed industry effects in paradoxical ways.     

HomeGrocer.com: Anatomy of a failure

This case study examines the initiation, financing, development, and failed merger of an ambitious online grocery retail venture: HomeGrocer.com. It highlights the risks and challenges associated with developing a revolutionary venture. Even though the HomeGrocer.com team did many things right developmentally, some key errors and unfortunate timing resulted in them expanding too quickly and running low on cash. It also forced them to make a tough strategic decision about whether to scale back operations and renege on their IPO commitments or merge with a well-funded competitor, Webvan. The case discusses lessons that can be learned from business failure.     

Advances in random utility models report of the workshop on advances in random utility models duke invitational symposium on choice modeling behavior

In recent years, major advances have taken place in three areas of random utility modeling: (1) semiparametric estimation, (2) computational methods for multinomial probit models, and (3) computational methods for Bayesian estimation. This paper summarizes these developments and discusses their implications for practice.     

Managing the retail operations in the COVID-19 pandemic: Evidence from Morocco

Novel coronavirus disease (COVID-19) and resulting lockdowns have contributed to major retail operational disturbances around the globe, forcing retail organizations to manage their operations effectively. The impact can be measured as a black swan event (BSE). Therefore, to understand its impact on retail operations and enhance operational performance, the study attempts to evaluate retail operations and develop a decision-making model for disruptive events in Morocco. The study develops a three-phase evaluation approach. The approach involves fuzzy logic (to measure the current performance of retail operations), graph theory (to develop an exit strategy for retail operations based on different scenarios), and ANN and random forest-based prediction model with K-cross validation (to predict customer retention for retail operations). This methodology is preferred to develop a unique decision-making model for BSE. From the analysis, the current retail performance index has been computed as “Average” level and the graph-theoretic approach highlighted the critical attributes of retail operations. Further, the study identified triggering attributes for customer retention using machine learning-based prediction models (MLBPM) and develops a contactless payment system for customers' safety and hygiene. The framework can be used on a periodic basis to help retail managers to improve their operational performance level for disruptive events.     

The China puzzle: Opportunities for accounting research

How can China achieve phenomenal economic growth despite what is considered as 'weak' institutions in market-based economies? Xu(2011) provides a framework to u...     

The value relevance of R&D across profit and loss firms

We examine whether the valuation relevance of R&D documented for loss firms extends to profit firms. We use the residual-income valuation model and show that the valuation multiplier on R&D expenditures is likely to be negative (positive) for profit (loss) firms. This occurs because the linear information dynamics assumption of the residual-income model is more appropriate for profit firms than loss firms. Earnings of profit firms are likely to contain information on the future benefits of R&D activity, however, earnings of loss firms do not contain such information. The empirical evidence confirms our predictions for profit and loss firms. An important implication of our findings is that understanding the role of the R&D expense line item in valuation across firms and within firms, across time depends on whether the linear information dynamics assumption of the residual-income model is applicable for the sample of firms under investigation.     

Will firms go green if it pays? The impact of disruption,cost, and external factors on the adoption of environmental initiatives

Research summary : Research on the link between financial and environmental performance implicitly assumes that firms will pursue profitable environmental actions. Yet, clearly, factors beyond profitability influence firms' environmental choices. We treat these choices as organizational change decisions and hypothesize that adoption of environmental initiatives is influenced by a combination of profit, level of disruption caused, and external influences. We test our hypotheses by examining firms' choices regarding implementation of energy‐savings initiatives. We find that degree of disruption, number of prior local adopters, and strength of environmental norms affect the adoption decisions. In addition, the effect of disruption is amplified by the implementation costs, but is mitigated by the number of prior local adopters. Managerial summary : Often, in trying to improve firms' environmental performance, academics and stakeholders have focused on actions that simultaneously improve environmental and financial performance. This assumes that firms will undertake projects that offer such dual benefits. We consider what might prevent firms from pursuing such ‘win‐win’ initiatives. We focus on how the degree of disruption of an energy‐saving initiative affects its probability of adoption. We find that firms are significantly more likely to adopt moderately profitable, but easy initiatives than more profitable but disruptive ones. We also examine internal and external factors that moderate the effect of disruption. Our findings suggest that in order to incentivize firms to improve environmental performance, it might be more beneficial make these activities less disruptive than to make them more profitable. Copyright © 2016 John Wiley & Sons, Ltd.     

Achieving food security in Central Asia — current challenges and policy research needs

This paper introduces the papers of this Special Issue on Achieving Food Security in Central Asia. Identifying the current challenges, it enlists the information gaps and policy research needs for accelerating the reform process in the food, agriculture and natural resource sectors of the Central Asian Republics. The paper concludes by calling for identifying policies and institutional arrangements that facilitate economic reforms that will lead to poverty reduction, increased food security, and sustainable use of natural resources.