When is dependence on other organizations burdensome? The effect of asymmetric dependence on internet firm failure

Although critical resource providers offer ample access benefits to deficient firms, dependence on these resource providers is burdensome because dependency places deficient firms into a vulnerable position, especially when the dependency is asymmetric. Thus, we ask: Is it better to balance dependence among critical resource providers or asymmetrically depend on one if there is more than one resource provider? We use a unique context of the internet industry where satellite internet firms depend on portals that provide Web traffic and find that asymmetric dependence on portals increases the likelihood of failure, but market leaders suffer less from asymmetric dependence, while satellite internet firms with higher dependence on portals suffer more from asymmetric dependence. Copyright © 2014 John Wiley & Sons, Ltd.     

The Influence of Tourist Experience on Perceived Value and Satisfaction with Temple Stays: The Experience Economy Theory

Temple stays are emerging global cultural attractions that provide tourists with unique experiences and influence perceptions of value and satisfaction. This study examines the influence of escape, entertainment, esthetic, and educational experiences on perceptions of functional and emotional values as well as tourist satisfaction with temple stays. The results of the study show that escape and entertainment experiences are important predictors of both functional and emotional values. Esthetic experience influences emotional value, whereas educational experience affects functional value. Both functional and emotional values influence tourist satisfaction. Theoretical and practical implications of the study results are discussed.     

Celebrity Endorsement for Nonprofit Organizations: The Role of Celebrity Motive Attribution and Spontaneous Judgment of Celebrity-Cause Incongruence

This study investigated relationships among celebrity motive attribution, celebrity-cause congruence, and involvement with a cause. A 2 (altruistic motive: high vs. low) X 2 (congruence: high vs. low) X 2 (involvement: high vs. low) experimental study examined perceptions of celebrity credibility, attitudes toward celebrity endorsement and nonprofit organization, and intentions to donate money and volunteer time. The findings attest to main effects of causal attribution of a celebrity's altruistic motive and interaction effects between motive attribution and congruence (i.e., spontaneous judgment of celebrity-cause incongruence). Further, three-way interaction effects suggest the role of involvement in spontaneously activating celebrity-cause disassociation.     

Meeting the Needs of Organic Farmers: Benchmarking Organizational Performance of University Extension

A stochastic frontier model is used to explain the performance evaluation by organic producers of programs provided by the U.S. university extension systemproviders. We identify nonmanagerial factors that influence both performance ratings and performance efficiency, defined as achieving a rating as close to the highest rating as possible. Results based on the organic farmer evaluators indicate that extension agents are performing at high mean efficiency of 0.95, but that the average rating is relatively low at 2.66 on a four-point scale. Years of experience in organic farming and the severity of production problems facing farmers have significant impacts on performance ratings.     

Looking Attractive until You Sell: Earnings Management,Lockup Expiration,and Venture Capitalists

Earnings management occurs when managerial discretion allows managers to influence reported earnings and thus mislead some investors about the underlying economic performance and quality of the firm. This study considers how potential investors may guard against earnings management by observing negative stock price reaction at the lockup expiration period of initial public offering (IPO) firms as a negative signal. Findings from a sample of 160 newly public firms show that earnings management behaviour is stronger in IPO firms backed by venture capitalists (VCs). Moreover, VC reputation negatively moderates this relationship such that IPO firms backed by reputable VCs are less likely to manage earnings, suggesting that reputable VCs serve an auditing function following an IPO. Overall, we provide insights into signalling theory by examining negative signals arising from the behaviour of multiple agents in an IPO firm.     

Do Consumers Discriminate Against Foreign Companies Even When They are Green?

The international business literature has long investigated the role of corporate environmentalism, or “going green,” in business. However, this research has been limited regarding the dynamics of a firm's eco-friendly image and consumers' intention to purchase the firm's products in light of the consumer's complex social viewpoint and how that eco-friendly image is perceived. This limitation is due in part to the complex nature of the eco-friendly image-purchase intention relationship, especially when taking into account the consumers' identification with the firm, as well as the role of consumer ethnocentrism. Through the use of an experimental survey, we found differences between countries and the role of the firm's eco-friendly image and consumer ethnocentrism. In particular, an eco-friendly image was positively related to identification with the firm in a German company sample. The findings also show that this identification mediates the effect of eco-friendly image on purchase intention. Consumer ethnocentrism significantly moderated the effect of this identification on purchase intention as well in the Chinese company sample. Implications for managers of multinational enterprises are discussed, as are avenues for future research.     

Corporate Environmental Responsibility and the Cost of Capital: International Evidence

We examine how corporate environmental responsibility (CER) affects the cost of equity capital for manufacturing firms in 30 countries. Using several approaches to estimate firms’ ex ante equity financing costs, we find in regressions that control for firm-level characteristics as well as industry, year, and country effects that the cost of equity capital is lower when firms have higher CER. This finding is robust to addressing endogeneity through instrumental variables, to using alternative specifications and proxies for the cost of equity capital, and to accounting for noise in analyst forecasts. We conclude that investment in CER reduces firms’ equity financing costs worldwide.     

Bring institutions into FDI spillover research: Exploring the impact of ownership restructuring and institutional development in emerging economies

Extant studies exploring the influences of foreign direct investment (FDI) spillovers on the productivity of local firms have provided conflicting evidence. In particular, they have largely overlooked the important role of institutional mechanisms in the host market in understanding the sources of the variation in FDI spillover effects on the productivity of local firms, especially in the context of emerging markets. Using a comprehensive panel data set of manufacturing firms in China during 1998–2007, our paper presents an integrative framework of how FDI spillovers affect the productivity of local firms in emerging markets. We identify an inverted U-shaped relationship between FDI spillovers and the productivity of local firms in China. This result suggests the coexistence of and the interplay between the opposing mechanisms of FDI spillover learning opportunity and adverse competition. Drawing on the institution-based view, this study also develops contingency frameworks and arguments to explore the question of if FDI spillover effects are contingent on, or independent of, a local institutional context especially in emerging markets. We find that institutional mechanisms, such as the institutionally determined ownership restructuring and the different levels of subnational institutional development within the host emerging market, significantly shape the variation of FDI spillover effects on the productivity of local firms. This research highlights the importance of incorporating institutional effects in understanding the FDI spillover effects in emerging markets.     

Taste and nutrition: the uses and effectiveness of different advertising claims in women's magazine food advertisements

A multi-method study was conducted to examine different advertising claims in current food advertising and to determine the effectiveness of different advertising claims on females’ evaluative judgments of food advertisements. Content analysis results of 678 women's magazine food ads indicated functional food ads appeared to adopt nutrition appeals without taste claims and a combined use of nutrition appeals and taste claims, whereas hedonic food ads tended to use taste claims without nutrition appeals. Nevertheless, these food advertising practices were called into question by the results of two experiments, showing the combined use of nutrition appeals and taste claims was the most effective strategy for both hedonic and functional foods. However, for hedonic foods, advertisers need to include more congruent than extremely incongruent claims. Implications for food advertisers and policy-makers were discussed.