A meta-analysis of the determinants of organic sales growth

We present the results of a meta-analysis on drivers of organic sales growth conducted using a Hierarchical Bayes estimation technique. Based on a comprehensive review of a diverse set of literatures on organic sales growth, we identify eleven drivers of organic sales growth performance of firms: (i) innovation, (ii) marketing orientation (iii) advertising (iv) interorganizational networks, (v) entrepreneurial orientation, (vi) management capacity, (vii) firm age, (viii) firm size, (ix) competition, (x) munificence, and (xi) dynamism. Among the variables under a manager's control, innovation, advertising, market orientation, interorganizational networks, entrepreneurial orientation and managerial capacity serve as positive drivers of organic growth. Older firms and firms operating in dynamic and competitive environments face constraints in terms of organic growth. We find that the omission of marketing variables in empirical models biases the elasticities of eight of the drivers of organic growth. Three study design characteristics impact the magnitude of elasticity of organic growth drivers: using cross-sectional data instead of panel data, using growth rates instead of absolute change as operationalization of growth and using market share instead of sales as a measure of revenues.     

How product aesthetics cues efficacy beliefs of product performance

Aesthetics of package design is an important consideration when consumers make purchase decisions. We argue that this is particularly the case for purchase decision of products in the beauty category. This paper advances current understanding of the role of packaging in product purchase behavior by identifying heuristic cues exhibited in packaging (i.e., that beautiful packaging is more effective at making the consumer more beautiful). Across a pilot field study and four lab studies, we demonstrate that package aesthetics informs inferences of how well the product can perform, which, in turn, drives purchase decisions. Importantly, we show that in the presence of a diagnostic cue such as a brand name, or an explicit promise (e.g. tagline of an advertisement), this effect is attenuated and rendered irrelevant. Further, we show that this effect is rendered ineffective to a category to which beauty is irrelevant. Hence, by signaling product efficacy, the beauty-in-a-bottle heuristic appears to inform purchase decisions.     

Marketing,market growth,and endogenous growth theory: An inquiry into the causes of market growth

Market growth plays a central role in virtually all strategic marketing models developed in the past 30 years. Although marketing scholars seem implicitly to assume that marketing efforts contribute in some way to market growth, market growth per se remains a conceptual black box in marketing. Using new developments in endogenous growth theory, this article explores the link between marketing actions and market growth. In particular, the authors develop a conceptual model arguing that the effect of endogenous actions on market growth is mediated by knowledge creation, matching, and diffusion. Propositions are proposed to guide future research. The authors discuss the implications for marketing strategy at both business discipline and public policy levels. Sundar Bharadwaj (Sundar_Bharadwaj@bus.Emory.edu) is an associate professor of marketing in the Goizueta Business School at Emory University. He received his Ph.D. from Texas A&M University. His research interests focus on marketing strategy, performance, and risk. His research has appeared in theJournal of Marketing, Management Science, and theitJournal of the Academy of Marketing Science, among others. Terry Clark (tclark@cba.siu.edu) is a professor and chair in the marketing department at Southern Illinois University, Carbondale. He received his Ph.D. from Texas A&M University. His research interests include the intersection of international marketing and marketing strategy. His research has appeared in theJournal of Marketing and theJournal of the Academy of Marketing Science, among others. Songpol Kulviwat (mktszk@hofstra.edu) is an assistant professor of marketing and international business at Hofstra University. He received his Ph.D. in marketing from Southern Illinois University. His research interests include Internet marketing, hightech marketing, international business (sncross-cultural research), and information technology. Prior to his academic career, he worked in the area of international sales management in Thailand.     

An application of the extended Technology Acceptance Model in understanding technology-enabled financial service adoption in South Africa

The last 10 years have seen a significant increase in the provision of consumer services through technology. Computers, mobile phones, the Internet and self-service kiosks are examples of technology platforms that have enabled services to be offered to consumers in new ways. In South Africa, technology-enabled financial services have the potential to expand financial inclusion, especially at the bottom of the pyramid. There is a need to understand how consumers adopt technology-enabled services. Using grounded theory, an enhancement to the Technology Acceptance Model is proposed and developed to explain adoption of technology-enabled financial services. Confirmatory factor analysis is used to validate the model against data obtained from a survey. The proposed model fits the data well. Implications of the model are discussed.     

COMPLEXITY AND RANDOMNESS IN MATHEMATICS: PHILOSOPHICAL REFLECTIONS ON THE RELEVANCE FOR ECONOMIC MODELLING

Abstract Mathematics itself is a complex system. It exemplifies complexity at the level of structure, hierarchy and so on. There is also an interesting notion of complexity present in the meaning of mathematical ‘alphabets’. These are unique writing strategies of mathematics. Yet another marker of complexity lies in the process of applying mathematics to models. Using mathematics in modelling is a process of deciding what kinds of models to construct and what types of mathematics to use. Modelling can be seen as a decision‐making process where the scientists are the agents. However in choosing mathematical structures the scientist is not being optimally rational. In fact, fertile uses of mathematics in the sciences show a complicated use of mathematics that cannot be reduced to a method or to rational principles. This paper argues that the discourse of satisficing and bounded rationality well describes the process of choice and decision inherent in modelling.     

When and why do customer solutions pay off in business markets?

Manufacturers invest in customer solutions to differentiate their offerings and sustain profitability despite declining margins from goods sales. Notwithstanding strong managerial and academic interest, an examination of whether and explanations for when and why solutions translate into superior performance are lacking. We test hypotheses developed from the resource-based theory and transaction cost economics, supplemented with in-depth theory-in-use interviews, on primary and secondary data collected from 175 manufacturers. From a model that corrects for endogeneity, the findings suggest that, compared with other service offerings, solutions are associated with increased return on sales. This positive profitability effect is enhanced in firms with greater sales capabilities; it is stronger in industries with greater buyer power but weaker in technology-intensive industries. These results caution against the simplistic view of solutions as a universal route to gaining competitive advantage and aid in better identifying the role of solutions in a manufacturer’s offering portfolio.     

Structural transformation away from agriculture in growing open economies

Understanding how and why economies structurally transform away from agriculture as they grow is crucial for developing sensible growth strategies and farm and food policies. Typically, analysts who study this and related structural change issues focus on sectoral shares of gross domestic product (GDP) and employment. This article draws on trade theory to focus as well on exports. It also notes that the trade costs of some products are too high at early stages of development to make international trade profitable, so a nontradables sector is recognized. The general equilibrium model presented in the theory section provides hypotheses about structural transformation in differently endowed open economies as they grow. Those hypotheses are tested econometrically with a new annual endowments dataset covering 1995–2018 for more than 130 countries. The results are consistent with long run de-agriculturalization in the course of national economic growth in terms not only of sectoral shares of GDP and employment but also of exports. We find those shares are not significantly affected by either differences across countries in relative factor endowments or relative rates of sectoral assistance from government; but the agricultural GDP and employment shares are higher the higher is the share of agriculture in national exports.