Non-linear relationship between industrial service offering and sales growth: The moderating role of network capabilities

In an effort to approach the mixed findings regarding the relationship between a firm's industrial service offering and its performance, this study analyzes the impact of the industrial service offering on sales growth and the moderating role of network capabilities. The proposed research model is tested based on data from 91 Finnish manufacturing firms. Our results demonstrate a non-linear effect of the service offering on sales growth. We also find that network capabilities enhance the effect of the service offering on sales growth. For managers of manufacturing firms, the results imply that the active development of a comprehensive service offering should be implemented in conjunction with the development of organizational capabilities, such as network capabilities, to create value and promote improved performance.     

Value logics for service innovation: practice-driven implications for service-dominant logic

Service-dominant logic (SDL) provides a conceptual understanding of and widens the view on value creation in service innovation for product-centric companies. However, empirical research linking SDL and service innovation is still limited albeit expanding. This study provides insights beyond existing discussions on product and service dimensions using the theoretical lens of the value logic perspective. More specifically, the purpose of this study is to examine how value can be understood, targeted, and created in the pursuit of service innovation by product-centric manufacturing companies. Building on a previous investigation of two multinational product-centric manufacturing companies, this paper identifies and develops a theoretical model to describe the space shift in service innovation with four different kinds of value logics, namely, product-based value logic, service-based value logic, virtual-based value logic, and systemic-based value logic. Using a digitalization-driven new service innovation, namely the My Control System, which is a web-based service delivery platform, this paper describes space shifts to enhance value through four value logics as efforts. Further, challenges associated with different value logics are described in terms of complexity traps and service gaps. The study also contributes to bridging the gap between SDL theory and practice by developing a midrange theoretical model for value creation as a specification and amendment to SDL that supports SDL-guided service innovation and servitization in practice.     

Response to social media influencers: Consumer dispositions as drivers

Brand managers use social media influencers (SMIs) to influence consumers' attitudes and intentions. However, there is still ambiguity about the mechanisms by which SMIs influence their followers, as well as the metrics by which their performance can be evaluated. The existing literature has restricted itself to consumers' purchase intentions in order to evaluate SMIs influence and is silent on the role of the consumers' individual characteristics in SMIs influence mechanisms. Based on these research gaps and to provide a clearer picture of the SMI influence mechanism to practitioners, the present study assesses the role of consumer characteristics such as their social media attachment (SMA), parasocial relationships with social media influencer (PSR-SMIs), and susceptibility to SMIs influence (SSMII) in driving consumer response to SMIs influence through SMI compliance intentions. Study 1 found the sequential mediational role of PSR-SMIs and SSMII in the SMA-SMI compliance intentions relationship. Study 2 found the same sequential mediation and demonstrated how SMI skepticism negatively moderates the relationship between PSR-SMIs and SMI compliance intentions. To the best of the authors' knowledge, this is the first time that this skepticism variable is being explored in the SMI literature.     

Realization of Open Innovation: A Case Study in the Manufacturing Industry

Continuous innovation is regarded as an imperative for most companies. In this regard, open innovation suggests a successful approach to new product development, wherein the emphasis is on external collaboration. Previous research has provided examples from some industries, whereas mature and traditional companies such as manufacturing firms have gained limited interest. Thus, this paper seeks to answer two critical questions: why should manufacturing companies shift toward open innovation approaches and how can they adopt open innovation for product development. Based on case study in two companies, a list of opportunities, challenges, and efforts for organizational change toward open innovation are discussed.     

Exploring Brand Personality–Celebrity Endorser Personality Congruence in Celebrity Endorsements in the Indian Context

The objective of the research reported in this paper was to develop and test a model of brand personality–celebrity endorser personality congruence and its impact on consumers’ attitudes and intentions. In particular, the study drew on social adaptation and attribution theories to develop hypotheses related to the impact of this congruence on consumers’ perceptions of endorser credibility and suitability, and the subsequent impact of these perceptions on consumers’ attitudes and intentions. The study was motivated by recent attention being paid to the importance of personality in choosing celebrities for product endorsements and the fact that the brand personality–celebrity endorser personality congruence has not been explored before. The model was tested based on data obtained from a sample of participants in India. Results from path analyses indicated a positive and significant impact of personality‐based congruence on endorser credibility and suitability, which, in turn, positively and significantly impacted ad believability. Ad believability in turn significantly impacted attitude toward the ad, which had a significant impact on brand attitude and purchase intentions. Research and managerial implications are discussed, as are directions for future research.     

Manipulation of endowments and sunspot equilibria

We study the connection between occurrence of manipulation via reallocating endowments by coalitions and sunspot equilibria. The uncertainty about which coalition will form introduces extrinsic uncertainty into the economy. Under certain conditions, manipulation of endowments by coalitions can occur if and only if sunspots matter. We would like to thank Bill Ethier, Atsushi Kajii, Cuong Le Van, Karl Shell, Koji Shimomura, Nicholas Yannelis, an anonymous referee, as well as seminar participants at the Second Asian General Equilibrium Theory Workshop, 2005, Tokyo; Workshop on Uncertainty and Information, IMS, NUS, 2005; Kobe Institute of Economic Research; Public Economic Theory 2005 Conference, Marseille; and the South and South East Asia Econometric Society Meetings, 2006, Chennai for helpful discussions and comments.     

A viable and cost-effective weather index insurance for rice in Indonesia

The potentially adverse effects of droughts on agricultural output are obvious. Currently, Indonesian rice farmers have little financial protection from climate risk via catastrophic weather risk transfer tools. Done well, a weather index insurance (WII) program can not only provide resources that enable recovery, but can also facilitate the adoption of prevention and adaptation measures and incentivize risk reduction. However, implementations of WII programs have faced difficulties because of basis risk—among several other obstacles. Here, we quantify the applicability, viability, and likely cost of introducing a WII for droughts for rice production in Indonesia. To reduce basis risk, we construct district-specific indices that are based on the estimation of Panel Geographically Weighted Regressions models. With these spatial models, and detailed district level data on past agricultural productivity and weather conditions, we identify an algorithm that can generate an effective and actuarially sound WII in some districts but not in others. We then measure its effectiveness in reducing income volatility for farmers by reducing this basis risk, at the district level. We end by calculating an actuarially robust and welfare-enhancing price for this scheme and prioritize the districts in which it can be implemented.     

How source cues impact consumer evaluations of direct and indirect persuasion attempts

This research demonstrates how the directness of a persuasion attempt by a sales agent, in this case flattery, changes how source cues influence consumers’ evaluation of the shopping experience. When the persuasion attempt is direct, source cues do not influence consumer evaluations. However, when an indirect persuasion attempt is used, it is only effective when positive source cues are present. In particular, when the persuasion attempt is indirect, evaluations are more effective when the sales agent is attractive to or shares similar opinions with the consumer. Copyright © 2013 ASAC. Published by John Wiley & Sons, Ltd.     

Managing the front-end phase of process innovation under conditions of high uncertainty

Using a fuzzy-set qualitative comparison analysis, we identify and examine key conditions for success in early front-end phases of process innovation projects. We focus on the very initial stage of the innovation process—the front-end phase—and a selection of conditions for managing highly uncertain process innovation projects. In high-uncertainty projects coupled with high levels of equivocality, formalizing roles and processes should be consistently avoided; however, idea screening is beneficial. Moreover, in successful innovation projects formalized processes but not formalized roles are beneficial. The findings suggest that formalizing roles and processes, a success factor in prior studies of innovation, does not result in success of process innovation projects.