The Social Norms of Discrete Consumer Exchange

Abstract Social norms have been recognized as an important influence in long-term relational exchange between firms. It is here argued that social norms are equally important in short-term discrete exchange that takes place between firms and consumers. The norms of consumer exchange are, however, of a different kind. To clarify the difference, a classification system is presented. Based on the classification, the social norms of discrete consumer exchange are defined and a method of quantifying these norms is proposed. This method should help in the ongoing effort to understand how the social macro-environment influences individual behavior in dyadic exchange. Gundlach, Achrol, and Mentzer (1995)) note a recent shift in the marketing research paradigm toward a concern for the social determinants of economic exchange behavior. As they point out, this shift requires the analysis of often ambiguous concepts. One of these concepts is that of the social norm. Marketing researchers have recognized that social norms are a valuable explanatory variable. Their influence has been depicted in marketing models (e.g., Bagozzi 1978: Kalapurakal. Urbany, and Dickson 1992), tested in relational exchanges (e.g., Dant and Schul 1992; Heide and John 1992; Kaufmann and Stern 1988), and cited in the marketing orientation literature (e.g. Hurley and Hull 1998: Slater and Narver 1995). The focus here is on the social norms of economic exchange, a subset of the social norms of a given society. In economic exchange, the investigation of social norms has considered primarily the norms of long-term, relational transactions common in inter-firm exchange. Little-research has considered the social norms of the more short-term, discrete transactions common in exchanges between businesses and consumers. However, Kaufmann and Stern (1988: 535) suggest that norms “exist in all exchange behavior, from very discrete transactions to highly relational exchange.” The identification of the social norms of discrete consumer exchange is important to the understanding of the social structure of markets. On a practical level, it also helps marketers minimize consumer hostility. For example, consumers were outraged when Merck distributed its AIDS drug through a channel that charged a 37% markup (Wall Street Journal,May 7, 1996: B1). Merck did not consider the social norms that evidently sanction a 300% markup by consulting firms but not a 37% markup by distributors of pharmaceuticals. To avoid such blundering infractions of social norms. it behooves sellers to understand the social norms of discrete consumer exchange.     

Sustainable Development of Maritime Operations in Ports

Globalisation has heralded burgeoning ship movements and maritime operations in ports alongside increased international concerns regarding potential environmental impacts. In particular, smaller ports require accessible tools to manage them. A framework to facilitate environmental management applies business process principles to identify relevant inputs, processes and outputs. A case study of Falmouth Harbour Commissioners compares functional units and flows that define input–output processes for anchoring and bunkering operations. Strategic‐level processes affect present and future operations while tactical service processes guarantee service level and quality through their integrity. Operational processes occur at the output level. An accessible generic framework supports planning of more sustainable maritime operations, facilitates mitigation of potential risks and encourages authorities to engage with sustainability agendas and manage development proposals proactively. Ongoing interlocution with business strategists will refocus port managers on educational and commercial missions and increase stakeholder engagement. Simplification and optimisation phases of business process re‐engineering remain untapped by business strategists. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

Contextual analyses with QCA-methods

Contextual analyses are essential in comparative research, as they investigate the importance of contextual conditions for causal relationships. During the last decades, an increasing number of comparative studies have also focused on how contextual conditions affect causal relationships. At the same time, new comparative methods have been developed based on set-theoretical logics. Two of the most prominent methods are csQCA and fsQCA, which are used in comparative studies with increasing frequency. However, the conventional design for contextual analysis is still based on quantitative methods and the use of interaction-factors. This article discusses why the use of interaction-factors is not suitable together with QCA-methods. Instead of the conventional design, the article presents an alternative design for contextual analyses with QCA-methods grounded on subgroup-design. Based on one recently-developed methodology comparative multilevel analysis (CMA), some guidelines for performing contextual analyses with two set-theoretical methods (csQCA and fsQCA) are presented. As illustrated with examples, the combination of CMA and QCA provides opportunities to use QCA for contextual analysis.     

National differences in entrepreneurial networking

The paper reports findings of a study into the personal contact networks of Greek entrepreneurs, and compares these to results already published for other countries (Canada, Japan, Italy, Northern Ireland, Sweden, the UK, and the USA). Findings show that generic behaviour across borders cannot be assumed, although similarities exist in the under-representation of women as network members, the average age of network contacts, duration of relationships, and average monthly meetings. A clear example has also been provided of a culture where business networks are very deeply embedded in social structures, and where little or no evidence of an instrumentalist neo-classical model can be found. From a theoretical perspective, adaptation of Hofstede's four-dimensional model provides a generally robust interpretive framework for the results.     

Change and the development of entrepreneurial networks over time: a processual perspective

Although it is now well established that networks contribute to entrepreneurship by extending the individual entrepreneurial asset base of human, social, market, financial and technical capacity, little work, empirical or theoretical, has examined the dynamics of networking processes in a temporal framework. Drawing on evidence from three longitudinal case studies of entrepreneurs operating in the oil industry in the North East of Scotland, this paper presents an extensive empirical investigation into network transformation over time. We are thus able to chart networks in their historical contingency. This chronological lens allows us to view patterns in network continuity and change and enables us to develop a rich conceptual framework. The study demonstrates that networks are vital living organisms, changing, growing and developing over time. Yet set in their history, networks are much more than an extension of the entrepreneurial asset base. Our data shows how a reconceptualization of the nature of networking is called for; one which privileges an understanding of the relational dynamic as a structural configuration representing the social construction of the entrepreneurial environment. Thus our conceptualization proposes that networks actually create the environment, as it is understood and operated by the entrepreneur, and that consequently the networking process is the enactment of the environment.     

Small and Medium‐Sized Enterprises and Sustainability: Managers' Values and Engagement with Environmental and Climate Change Issues

This article reports on an in‐depth, qualitative study into the pro‐environmental engagement of small businesses in the east of England, with respect to climate change in particular. Managers of environmentally pro‐active small businesses were asked about the pro‐environmental measures they had implemented in their firms, their motivations for doing so, and their understanding of climate change. The managers in this study had a relatively good understanding of environmental issues in general and climate change in particular, and had implemented a range of pro‐environmental measures in their firms. Their understanding of climate change was a holistic one, which sat within their overall understanding of environmental and social issues. While economic arguments and external pressure played a role in their pro‐environmental engagement, perhaps the most notable motivation for managers in this study to engage with environmental and climate change issues was personal values and beliefs. Environmentally engaged managers exhibited an internal locus of control. Some of these findings contrast with the views of key informants in local government and business advice organisations, who tend to emphasise the business case and cost arguments when trying to encourage small businesses towards greater environmental engagement. These findings suggest that public policy and business advice in this area should perhaps focus more strongly on personal values and a sense of being able to contribute to environmental protection in their engagement with small businesses. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.     

Supervisor Heterogeneity: An Analysis Of Uk Microdata

We investigate the attributes of supervisors and the key correlates of the extent of their supervisory responsibilities. We find a strong correlation between wages, education, experience, firm size and the extent of supervision. One implication of this is that firms may be indifferent between employing a few, 'high responsibility' or many 'low responsibility' supervisors. Our findings, suggestive as they are of supervisory heterogeneity, should be taken into account in studies that proxy the intensity of monitoring primarily by the number of supervisors employed.     

Do government purchases crowd out investment?

The objective of this study is to determine whether federal government purchases negatively impact private investment using times series regression analysis. This study uses quarterly data from the years 1986.1 to 2004.4 in order to provide a relatively contemporary evaluation of the effects of federal purchases on private investment. The empirical results in this study reveal that increases in federal urchases, expressed as a percent of GDP, act to reduce new investment, which provides further support for the theory that government expenditures crowd out private investment. (JEL: E22, E62)     

Nonaudit Services and Earnings Conservatism: Is Auditor Independence Impaired?*

We examine whether the provision of nonaudit services (NAS) by incumbent auditors is associated with a reduction in the extent to which earnings reflect bad news on a timely basis (that is, news‐based conservatism). Reduced conservatism is expected to occur if relatively high levels of NAS result in reduced auditor independence and, ultimately, lower‐quality auditing. Because client‐specific demand for NAS is expected to vary, our proxy for the auditor‐client economic bond is the extent to which NAS purchases (relative to audit fees) are greater or less than expected. Using several different methods for identifying news‐based conservatism, we consistently find that higher than expected levels of NAS are not associated with reduced conservatism. This result is robust to allowing for endogenous NAS demand, as well as several explicit factors that may be associated with differences in conservatism. Similar conclusions arise from tests that use alternative measures of the economic bond between auditors and their clients, as well as in tests confined to either the Big 6 or non‐Big 6 audit firms. Our results are consistent with factors such as market‐based incentives, the threat of litigation, and alternative governance mechanisms offsetting any expected benefits to the audit firm from reducing its independence. We therefore conclude that recent legislative intervention aimed at restricting the supply of NAS is unlikely to result in increased independence in fact, although independence in appearance may be improved.