Toward a contingency theory of CRM adoption

Acknowledging the paucity of research on customers who are the targets of customer relationship management (CRM) efforts, this paper presents a contingency theory framework and set of research propositions suggesting that successful CRM adoption is contingent on a variety of contextual factors that influence value exchange in B2B channel relationships. Grounded in theoretical perspectives on the customer selection process, channel governance, transaction costs, power distribution in marketing channels, and dynamic capabilities, the authors identify five broad categories of variables potentially important in studying CRM adoption and directly affecting CRM success/failure.     

Competition and optimal departures from stock market value maximization by firms

Models of firm decisionmaking under uncertainty have done a good job of explaining the implications of spanning and competitive behavior. An opportunity set dominance argument under these conditions predicts the optimality of stock market value maximization. This paper reexamines the firm's choice rule assuming competitive behavior but without the restrictive assumption of spanning. The resulting rule breaks into two parts consisting of the traditional market value maximization component plus another term depending on the welfare effect of a change in the contract structure. Necessary and sufficient conditions, including spanning, for this term to be zero are derived.     

Estimation and Application of a Production Function in Decision Rules for Swine Producers1

Production functions are estimated for swine based on experimental data designed for the purpose. The functions are estimated with gain as output and corn and protein supplement as inputs. The gain functions are first estimated for five trials with different starting weights. With use of dummy variables, the data are then pooled for estimation of a single overall production function. Among several algebraic forms used in estimation, a quadratic equation was selected for application. Derivation and estimation of gain isoquants are illustrated and comparison is suggested with a previous study where the isoquants are estimated directly by means of an instrumental variable approach to circumvent problems of autocorrelation. The data then are used in a production decision model which considers fluctuating prices.
Des fonctions de production porcine sont estimées à partir de données expéri-mentales developées à cette fin. La fonction de production est représentée par le gain de poids avec le maïs et les supplements de proteine jouant le rôle de variables. Les gains de poids sont dabord estimés sur cinq essais à partir de divers poids ini-tiaux. Les données sont ensuite combinées à l'aide de variables annexes afin destimer une fonction de production générale. Parmi les diverses formes algebriques employées lors de l'estimation une équation quadratique fût sélectionée comme application. L'estimation et l'obtention des isoquantes gain de poids sont présentés. Une comparaison est faite avec une étude antérieure où les isoquantes sont directement estimées à partir de variables instrumentales ce qui évite les problémes d'autocorre-lation. Les donnees servent ensuite dans un model de décision de production qui comprend des fluctuations de prix.     

State regulation of accounting practices and municipal borrowing costs

This article examines the association between state regulation of accounting practices and municipal borrowing costs. The results demonstrate that stringent accounting regulations do have an effect on borrowing costs after abstracting the effects of other explanatory variables. The direction of the observed effect is difficult to assess due to presence of multicollinearity in the model. However, lower borrowing costs are suggested by the analysis.     

Creating a Bigger Bath Using the Deferred Tax Valuation Allowance

Abstract:  The provisions of SFAS No. 109 allow US companies to make an earnings big bath even bigger through the establishment of a deferred tax valuation allowance. At the time a firm recognizes a non-cash charge, it also recognizes a deferred tax asset to represent the future tax benefits of the charge. Recognition of the deferred tax asset partially mitigates the negative earnings impact of the special charge. However, if the firm does not expect to have sufficient future taxable income to utilize the future tax benefits of the charge, SFAS No. 109 requires the firm to establish a deferred tax valuation allowance, effectively eliminating the recognized deferred tax asset. Thus, the establishment of the valuation allowance amplifies the negative earnings impact of the non-cash charge. We use a valuation allowance prediction model to identify firms that create a larger-than-expected valuation allowance; these firms may be creating a large valuation allowance as a reserve to be used to manage earnings in a subsequent period. We find that the vast majority of these larger-than-expected valuation allowances apparently reflect informed management pessimism about the future in that these firms actually do have poorer operating performance in subsequent periods. We do not find any evidence that subsequent reversals of valuation allowances are used to turn a loss into a profit. However, we do find a very small number of firms that appear to have used a valuation allowance reversal to meet or beat the mean analyst forecast.     

The Management of Creative Vision and the Economics of Creative Cycles

This paper proposes a new theory of variability in innovation performance in managerial firms that contract ‘creative vision’. We argue that such firms are prone to ‘creative cycles’ that arise from uncertainty‐induced systemic overshooting that can threaten the firm's financial viability, requiring managers to shift control back to risk‐averse financial controllers. But this creates opportunities for competing firms to engage in bold creative visions, threatening the firm's market viability and inducing control to shift back to newly contracted suppliers of ‘creative vision’. We discuss how this ‘principal‐agent‐agent’ mechanism plays out, the types of uncertainty that drive it, and consider the industry‐level externalities it induces. Copyright © 2015 John Wiley & Sons, Ltd.