Product Differentiation for Software-as-a-Service Providers

The market for the new provisioning type Software-as-a-Service (SaaS) has reached a significant size and still shows enormous growth rates. By varying size of SaaS products, providers can improve their market position and profits by successfully acting in the tension area of customer acquisition, pricing and costs. We first elaborate differences concerning product differentiation between classic software provisioning models and SaaS. Then, we introduce a micro-economic based decision model to maximize the return of a provider by finding an optimal granularity, i.e. by varying the size of services. This paper makes two contributions in this context: (1) it provides a conceptual foundation for product differentiation within the scope of SaaS and (2) it presents the first implementation of variable reproduction costs for web based software offers. The model is illustrated by a real world case with data from a SaaS provider.     

Wirtschaftswissenschaften: zu wenig Pluralität der Methoden und Forschungsrichtungen?

The authors discuss the merits of including pluralist methods, theories and paradigms into the traditionally mainstream. They also evaluate the progress made by German faculties in this regard. The pluralism debate is in itself plural. There are numerous international and Germany specific dimensions and associated critiques of mainstream economics. Different approaches to economic policy must be organised in a manner which guarantees theoretical and paradigmatic pluralism — on which economic policy proposals ought to be based. Another view focuses on the educational effect and states that the mental frames of economics students are subject to manipulation; the foundation of their thinking is narrowed and recontextualised in an emotionally and politically highly charged semantic environment.     

Rezensionen

Ohne Zusammenfassung     

Organizing Flexibility: The Flexible Firm in a New Century

Research on organizational flexibility should examine the linkages between numerical and functional flexibility. Unfortunately, studies of each type of flexibility generally neglect the other. Moreover, the most popular conception of the interplay between these two forms of flexibility — the core–periphery model — is incomplete in important ways. I discuss evidence and limitations of the core–periphery model of the flexible firm, and outline some promising attempts to conceptualize how organizations may combine functional and numerical flexibility. I focus mainly on the USA and the UK, though I also review evidence and issues involved in cross‐national differences in organizational flexibility.     

INVESTIGATING ALTERNATIVE APPROACHES TO HARMONISE MULTI-REGIONAL INPUT–OUTPUT DATA

Over recent years a small number of global multi-regional input–output (MRIO) databases were developed to describe the entire global economy at high sector detail. We investigate the differences that arise out of applying different construction procedures for two global MRIO databases: The EXIOBASE database, developed as part of the EU FP6 & 7 programs and the Eora database developed at the University of Sydney. The procedures used in EXIOBASE involve a high degree of interrogation and adjustment throughout the construction of the data set, whilst the Eora MRIO relies on single-step mathematical programming techniques and high-performance computing. We unravel the effect of the different approaches taken to develop the databases by undertaking a number of combinatorial experiments in which we exchange parts of the construction process between the EXIOBASE and Eora build pipelines. We conclude that Eora's highly automated data reconciliation approach produces MRIO databases that are of comparable quality to those constructed with EXIOBASE's multi-step approach. However, the reliability and robustness of the resulting MRIO database largely depend on the level of detail and reliability of the underlying raw data.     

Modeling Farm Households' Price Responses in the Presence of Transaction Costs and Heterogeneity in Labor Markets

We develop a farm household model to analyze price responses of farm households. This model incorporates various types of transaction costs as well as labor heterogeneity. Nonproportional variable transaction costs or labor heterogeneity imply that production and consumption decisions become nonseparable, even when the household buys or sells labor. An empirical model is estimated using data from Midwest Poland. The results show that nonproportional variable transaction costs and labor heterogeneity significantly influence household behavior. Not all price elasticities, however, change significantly if these are neglected.     

The Influence of Retail Management’s Use of Social Power on Corporate Ethical Values,Employee Commitment,and Performance

Recent cases in retailing reflect that ethics have a major impact on brands and performance, in turn, demonstrating that brand owners, employees, and consumers focus on ethical values. In this study, we analyze how various sources of social power affect corporate ethical values, retailer’s commitment to the retail organization, and ultimately sales and service quality. Multi-source data based on a sample of 225 retailers indicated a strong link between power, ethics, and commitment and that these affected output performance.     

Testing Retail Marketing-Mix Effects on Patronage: A Meta-Analysis

Retailers have always worked to establish close relationships with customers through the retail marketing mix. Thus, the literature has a long tradition of testing the effects of various instruments on retail patronage. This meta-study synthesizes prior research into one comprehensive framework. We use 14,895 effect sizes reported by more than 239,000 shoppers from 41 countries extracted from 350 independent samples, to test the impact of 24 marketing-mix instruments on retail patronage. Specifically, we investigate the direct and indirect effects of these instruments on store satisfaction, word of mouth, patronage intention, and behavior. Product and brand management related instruments display the strongest effects on most outcome variables, whereas price, communication, service and incentive management instruments affect only selected outcomes. Distribution management turns out to be of secondary importance. However, the effectiveness of these instruments depends on the specific shopping context (food/non-food, shopping frequency, single store/agglomeration, hedonic/utilitarian), the retail environment (gross domestic product, country innovativeness, retail sales share, retail employment, Internet era), and the employed method (participant type, study design, data source). Specifically, we reveal most differences for hedonic shopping environments and developed countries. Also, the store’s advertising and atmosphere have gained importance in the Internet era, while purchase incentives, in-store orientation, and store location have lost relevance. This study contributes to a synoptic understanding of the comparable effectiveness of retail marketing instruments on retail patronage. It offers insights into the effectiveness of marketing-mix instruments and provides guidance on whether and when to invest in them. It also presents an agenda for future research on marketing-mix instruments.     

Development and perspectives of the Australian Coal Supply Chain and Implications for the Export Market

The Australian coal industry is critical for the nation’s domestic energy supply and economy with an export value of almost A$24 bn in the fiscal year 2007/08. With almost 75% of production destined to the export market, Australia is also the world’s largest hard coal exporter and an essential secure source of energy particularly to meet both thermal and metallurgical coal demand in the fast growing Pacific Rim. This paper examines the Australian mining sector prospects to retain its position as the world’s largest coal exporter in the mid-term, by analysing the potential increases in export capacity along the coal supply chain through expansions in mine, rail and port capacities. Despite current financial challenges and restrictions, the authors conclude that export volumes, depending on demand, could rise by 50% in the period to 2014.     

Epilogue: Popperian Perspectives on Transaction Cost Economics and Future Directions of Empirical Research

The 2009 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel Prize to Oliver Williamson was not a surprise to scholars in business research. Transaction cost economics (TCE) has been among the most important streams of empirical investigation in business research during the last four decades. TCE has formed, developed and changed business research across disciplines during this era. Williamson, (1999:1092) himself noted that “I have no hesitation, however, in declaring that transaction cost economics is an empirical success story.” The Nobel Prize is a milestone event in business research, and the use of the criterion of falsification in this essay provides a compass to navigate future efforts. We present potential avenues of TCE research based on a Popperian lens focused on research discussed throughout this milestone issue of the Journal of Retailing.