Small firm networks: a successful approach to innovation?

This paper considers the increasing trend of inter–working among small firms. Networks of small firms co–operate in certain activities, such as marketing, purchasing, R&D, training or manufacturing. But does co–operation lead to innovation? To answer this question published evaluations of small firms co–operating for mutual benefit are reappraised. Inter–working among small firms is then investigated further by interviewing three network brokers. The brokers were funded by regional governments and they facilitated co–operation between small firms. These semi–structured discussions explored the key characteristics of successful networks, the responsibilities of the broker and the level of innovation occurring. Networking is primarily a competitive response. It needs to evolve into a mechanism to enable small firms to develop innovative products and processes jointly. Small firms may have to rethink their approach to co–operation, and their motives for initiating inter–working if they are to benefit fully from co–operation.     

Does Cost-Share Replicate Water Quality Trading Projects? Implications for a Possible Partnership

Water Quality Trading (WQT) and federal conservation programs such as the Environmental Quality Incentives Program (EQIP) employ incentive payments to encourage agricultural best management practices (BMPs). In many cases, WQT and EQIP are encouraging the same types of farmers to implement the same types of BMPs using similar incentive payments. A number of analysts have recommended that WQT partner with EQIP to recruit farmers, yet the literature lacks an analysis of whether EQIP could adequately substitute for WQT's project selection process. In this article, we systematically compare the project ranking procedures used by WQT and EQIP and suggest which partnership structures might be most appropriate.     

Intra-tourism trade,income distribution and tourism endowment: an econometric investigation

Empirical investigation (Nowak et al., 2012) points out that vertical intra-industry trade (VIIT) in Europe is the dominant type of intra-industry trade (IIT) in the tourism sector. This article is the first in tourism literature to test separately the determinants of vertically and horizontally differentiated services, using the most recent models in the theory of IIT. We examine bilateral trade among all trading partners of the sample of European countries, covering the period from 2000 to 2008. We show that differences in gross domestic product per capita and the income-distribution overlap, as well as cultural proximity, are the most significant driving forces behind VIIT for European countries. Geographic distance has a negative effect, whereas specific tourism endowments and relative size of the economies are less conclusive. These results confirm theory predictions and most of the empirical findings related to the pattern of VIIT for the manufacturing sector. As expected, we find that determinants of VIIT cannot explain horizontal intra-industry trade in tourism. We suggest two alternative methods of estimation: generalized least squares logistic function and the fractional logit estimator. We conclude that there are common factors explaining IIT in the manufacturing and tourism trades.     

A practitioner-led strategic place brand-management model

Abstract

As a relatively new field, research into place branding is predominately case-study based, focusing specifically on single place entities. This paper reports on an exploratory study that uses semi-structured interviews with place-branding practitioners working in various geographical locations (towns, cities, regions). The study tests the relevance of the components of strategic place brand management and elucidates their meaning and explores the relationships between these components. The research confirms the relevance of the components but suggests that relationships between components may be context dependent. The study makes both theoretical and managerial contributions by offering a refined, holistic, and new practitioner-led strategic place brand-management model along with structural meanings for each component that describe to those embarking on the process the key processes, activities, and success factors that are integral for an effective place-branding approach.     

A Diagnostic Tool for Assessing the Relative Importance of Information in Impression Formation: Application in Order Effects

This paper describes a diagnostic tool for assessing relative impact weights of time-dependent information on an impression or judgment and illustrates its use in the area of order effects. A novel and somewhat counterintuitive finding, based on applying this tool, is that the bit of information associated with the greatest impact weight is not necessarily the bit of information associated with the greatest relative impact weight. At the heart of this tool is the ability to compute precisely the relative impact weights associated with each piece of information, which are, in general, different from the actual impact weights associated with each piece of information. This provides the opportunity to determine relative impact weights under various assumptions about, and theories of, or related to, impression formation. In turn, this diagnostic information may be used to deepen understanding of a particular theory or, perhaps, to propose or define new theory.     

Do organizational life-cycle and venture capital investors affect the management control systems used by the firm?

This paper investigates how the organizational life-cycle stage of the firm and the existence of venture capital investors affect the use of management control systems. The study consists of three types of management control systems, i.e. business planning, budgeting and management control techniques. Our empirical analyses are based on a survey questionnaire of 105 Finnish firms operating in all industries at different life-cycle stages. The results indicate that the business planning and use of management control techniques differ between the organizational life-cycle stage of the firm and the existence of venture capital investors. However, the existence of venture capital investors is also essential in maturity and revival firms while the earlier literature emphasizes their role in start-up and growth firms. Our results remain the same after conducting various robustness checks.     

Preferences for improvements in attributes associated with basal insulin: a time trade-off and willingness-to-pay survey of a diabetic and non-diabetic population in Sweden

Objective: Apart from improved health outcomes, treatment convenience per se may have a value to individuals. This is sometimes referred to as process utility and can be estimated in terms of willingness-to-pay (WTP) or quality-adjusted life-years (QALYs). Previous research has produced multiple studies on QALY gains and WTP estimates of insulin-related attributes. There are, however, significant variations between studies, and it is not clear to what extent the value is a reflection of the true preferences or a consequence of the methodological approach. The aim of this study is to estimate the preferences for treatment attributes associated with basal insulin (administration frequency, administration flexibility, and treatment-induced weight gain) using both QALYs—elicited using time trade-off (TTO) and WTP—among a sample of the Swedish general population and among a sample of the Swedish diabetes population.

Methods: Data was collected using web-based surveys which were distributed to members of internet panels. The WTP survey presented five hypothetical scenarios with an offer to pay the incremental cost to receive basal insulin with improved attributes. The TTO survey presented six hypothetical scenarios where the respondent could choose between living for the rest of his/her life with diabetes and receiving treatment with a basal insulin with certain attributes or live for a shorter time with full health. The scenarios were combined with either a basal or a basal–bolus treatment regimen. Results from the TTO analysis were translated into monetary estimates using a threshold value of SEK500,000 per QALY.

Results: In total, 2012 responses were included. The ratings of the attributes were almost identical, irrespective of method for the general population, while it differed to some extent for the diabetes population. The methods produced the same value for flexibility, but the estimates generated with the TTO approach were higher for one less injection and avoided weight gain. The general population assigned a higher utility gain to convenience attributes, while the diabetes population assigned a higher utility gain to avoiding weight gain.

Limitations: About a quarter of the respondents did not accept the scenario in the WTP survey, i.e. protesters.

Conclusions: The ranking of the attributes was generally independent of evaluation method, but the TTO method resulted in similar or higher values compared to the WTP method.     

A new model of how celebrity endorsements work: attitude toward the endorsement as a mediator of celebrity source and endorsement effects

This research introduces attitude towards the endorsement as a mediating variable in the relationships between celebrity source and endorsement factors and brand attitude. It also includes perceived celebrity motive, a variable rarely studied in the previous literature, as an endorsement factor. In a survey study, respondents evaluated four celebrity endorsement campaigns. Mediation analyses show that attitude towards the endorsement mediates the effects of three variables on brand attitude; these variables are celebrity expertise, celebrity–brand fit, and perceived celebrity motive. Moreover, results show that if consumers perceive that the celebrity was motivated to do the endorsement not only by money but also by product quality, this has a significant positive effect on attitude towards the brand.     

Primed Authenticity: How Priming Impacts Authenticity Perception of Social Media Influencers

ABSTRACT

Though organizations increasingly collaborate with social media influencers, such as bloggers and videobloggers, little is known as to how the contextual cues related to sponsored content affect the authenticity perception of the social media influencers among audience members. This study explores how positive and negative priming of sponsored content shapes the authenticity perception of the vlogger among its audience members. Four different manipulation conditions were constructed to study a U.S. based travel vlog on Qualtrics, with data collected via Amazon’s Mechanical Turk. A theory-guided content analysis of 211 open viewer responses was conducted to compare perceptions of authenticity between the manipulation groups. The results verified the significance of priming: the same sponsored content can result in opposite reactions among the audience members depending on the positive/negative valence of the introductory text attached, highlighting the central importance of strategic communication related to the perception of sponsored content. The results also point out the importance of audience member engagement for experienced authenticity: The manipulation of audience participation with the vlog had a stronger effect on the perception of authenticity of the vlogger than the positive/negative valence of the introductory text.     

The application of Aristotle’s rhetorical theory to the sharing economy: an empirical study of Airbnb

ABSTRACT

Sharing economy businesses require extensive trust-based communication between users and service providers to facilitate users’ positive persuasion processes. Based on Aristotle’s rhetorical theory, this study identifies three key persuasive cues (credibility, emotional bonding, and accommodation characteristics) and validates their roles in establishing users’ trust in an Airbnb setting. The moderating role of interactivity is further analyzed. Research findings from a survey sample of 171 Airbnb users indicate that persuasive cues are positively associated with trust in Airbnb hosts, which significantly leads to Airbnb brand trust. Interestingly, the moderating role of interactivity is only found in the relationship between emotional bonding and trust in Airbnb hosts. This study contributes to a better understanding of the factors that affect users’ trust building in the sharing economy context, and it offers guidance for platform providers to better operate their businesses by highlighting the important roles of persuasive cues and interactivity in users’ trust-building processes.