The role of brand communications on front line service employee beliefs,behaviors, and performance

Frontline service employees often vary in their delivery of the brand promise, leaving service firms with less direct control on other stakeholders’ brand perceptions. Internal branding efforts have been suggested as a way to improve employee performance. With this in mind, we develop a two-process model based on identification and internalization theories to explain how internally disseminating brand-relevant information to frontline employees enhances performance. Using multi-source data from the employees, managers, and customers of a business-to-business firm in the hospitality industry, we find that providing brand-specific information directly to frontline employees increases their identification with the brand (as evidenced in perceptions of firm authenticity) and enhances their internalization of brand values. Additional results suggest that firms should make an extra effort to communicate brand-specific information to frontline employees if they desire brand-consistent performance that is observable to managers and customers alike.     

Risks,Resilience, and Reforms: Indonesia’s Financial System in 2019

Indonesia has managed the complex challenges of the global economy well. The country's capital outflows were smaller in 2018 than during the Taper Tantrum in 2013; the rupiah had regained most of its lost ground by January 2019; the Indonesian stock market has outperformed its peers; growth is forecast to remain stable; inflation is low; unemployment remains below its five-year average; consumer and business confidence are robust; and the government budget has improved through a smaller deficit and cheaper borrowing costs. But significant risks remain. This paper assesses these risks and evaluates the adequacy of Indonesia's crisis management framework. It finds that the framework has serious deficiencies that could see liquidity challenges become systemic solvency crises. The framework effectively removes Bank Indonesia as the lender of last resort, risks politicising the process of crisis response, and could mean slower, less effective responses to crises. This paper explores how the framework could be improved and what reforms could be undertaken to deepen Indonesia's financial system, strengthen financial resilience, and boost the long-term growth outlook.     

Nectar for the taking: the popularization of scientific bee culture in England, 1609-1809

This essay expands and refines academic knowledge of English beekeeping during the seventeenth and eighteenth centuries. Scientific beekeeping focused on improvement, which, in turn, depended on the dissemination of ideas and practices. This analysis, therefore, encompasses the mentalities and tactics of popularizers. The article also identifies two neglected concepts in the popularization campaign. First, popularizers saw scientific beekeeping as a way to end the tradition of killing the bees in order to safely harvest. Second, they sought to promote a rural industry for the economic welfare of the nation. The case study of Exeter's Western Apiarian Society reveals precisely how popularization functioned in reality. The result is a more thorough history of scientific beekeeping and how the rhetoric of improvement related to the culture of practice.     

Farmer responses to changing risk aversion,enterprise variability and resource endowments

The focus of this article is on assessing how risk aversion, enterprise variability and resource endowments affect farm land‐use decisions and economic returns. A theoretical model of a two‐enterprise, two‐constraint farm is developed, and then, an empirical illustration for an Australian farm is provided. The methodology used builds on previous expected mean‐variance (EV) models by incorporating land and budget constraints. The Kuhn–Tucker conditions of the EV model are examined to highlight that changes in resource endowments have larger effects on economic returns, than do changes in risk aversion or enterprise gross margin variability. It was also found that combinations of enterprise mixes that do not use all available resources can produce higher economic returns, relative to some enterprise mixes that use all available resources.     

A model of liability dollarization and myopic governments

Abstract

Liability dollarization of the domestic banking system represents a source of vulnerability for emerging market countries. The root cause is a lack of faith in the domestic currency, which ultimately stems from the belief that the government will not follow policies that promote long-run currency stability. This paper presents a model in which government myopia determines the unofficial dollarization of bank credit. Specifically, myopic politicians will choose low interest rates to expand short-run output in order to get re-elected, but this choice has the long-run consequence of increasing dollar lending. Increased liability dollarization is shown to force the hand of future decision-makers into choosing fixed exchange rates because of the fear that large depreciations will destroy balance sheets. The results imply that institutional reforms are necessary to reverse liability dollarization.     

Organizational antecedents to and consequences of service business orientations in manufacturing companies

Although various manufacturing companies have developed into total solution providers, no research addresses their service orientations. Building on the literature on organizational service climate, this study explores the organizational parameters and service business orientations that explain relative product sales and service volume of manufacturing companies. Following an exploratory study involving in-depth interviews, the authors conducted an empirical survey of 137 companies in The Netherlands, Belgium, and Denmark. The study assesses the effects of organizational parameters on the implementation of service business orientations and validates the important distinction between services in support of the client’s actions (SSC) and services in the support of the product (SSP). The findings demonstrate that services in support of the client’s action leverage relative product sales, while services in support of the product generate service volume. In addition to the main effects, the moderating effects of the organizational parameters are discussed.

Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM

This study examines how social media technology usage and customer-centric management systems contribute to a firm-level capability of social customer relationship management (CRM). Drawing from the literature in marketing, information systems, and strategic management, the first contribution of this study is the conceptualization and measurement of social CRM capability. The second key contribution is the examination of how social CRM capability is influenced by both customer-centric management systems and social media technologies. These two resources are found to have an interactive effect on the formation of a firm-level capability that is shown to positively relate to customer relationship performance. The study analyzes data from 308 organizations using a structural equation modeling approach.     

An Evaluation of Government and Industry Proposed Restrictions on Television Advertising of Breakfast Cereals to Children

In the United States, both industry and the federal government have worked to establish voluntary guidelines for how firms market food to children and to establish a threshold for the nutritional quality of foods marketed to children. The authors evaluate three US guidelines that deal with television advertising of breakfast cereals, which is both heavily advertised and a common meal item for children. They find that the majority of cereals advertised primarily to children from 2006 to 2008 do not meet any of the current and proposed self-regulatory nutrition guidelines, and that this is generally due to excessive sugar content. Further, children and adolescents are exposed to more advertising for products that do not meet the nutritional guidelines. We evaluate the extent to which each of the guidelines impacts advertising of cereals that are most viewed by children and purchased by households with children. The results provide insight for policy makers concerned with limiting the extent to which children see television advertising and ultimately consume unhealthy breakfast cereals.     

Practitioners' Corner

The first 150 words of the full text of this article appear below. The article by Christian Gourieroux and Razvan Sufana providesa complete characterization of two-factor affine diffusion termstructure models. The presentation of the article may seem forbiddingto the practitioner audience, so it is perhaps useful that thisinstallment of the column provide some context for the resultsof this article. Prominent among affine diffusion models in the term structureliterature are the Gaussian and square-root diffusion modelsof Vacisek (1977) and Cox, Ingersoll, and Ross (1985). The seminalcontribution of Duffie and Kan (1996) had been to provide anecessary and sufficient condition on the stochastic model toobtain the desirable property of "affine yields," whereby theyield of any zero-coupon bond is seen as a maturity-dependentaffine combination of a selected "basis" set of yields. SubsequentlyDuffie, Pan, and Singleton (2000) proved that the aforementionedcharacterization is even more general, both for the stochasticmodel that may . . . [Full Text of this Article]