A note on cultural consistency within the service firm: The effects of employee position on attitudes toward marketing culture

This study represents the beginning of an exploration of the internal constraints and barriers that stand in the way of successful strategy implementation within service organizations. A determination will be made if one of the internal constraints is perhaps the lack of consistency among employees regarding marketing practices, attitudes, values, norms, and ideals. Specifically, service firm employees’ attitudes toward their actual and ideal marketing culture were measured. Attitudinal differences were examined between ground-level, middle-, and top-management employees from a cross-section of service industries. Significant differences were found for a variety of marketing culture components. Many of the differences remained even after removing possible effects of number of employees in the firm and age of the firm. Managerial implications are given.     

Involving consumers in the work of a data linkage research unit

We describe and reflect on the work of a Consumer Panel for a data linkage research unit in Wales, and show how the members are inputting into plans for the future. Our work is centred on conducting health‐related data linkage research using anonymously linked, routinely collected data from across Wales via the Secure Anonymous Information Linkage system. In recognition of the importance of including patients and the public in health‐related research, we have established a Consumer Panel to strengthen this voice in our work, and there are currently 10 members (4 men and 6 women) from across Wales, with a range of health‐related areas of interest. A review of Panel activities was carried out after the first year, and all members were invited to provide their views via a questionnaire survey using structured and free‐text responses. Initial feedback, obtained after the first meeting, was tentatively positive, and the questionnaire survey identified practical measures for improvement and future work. We have found the Consumer Panel to be a valuable addition to our work in the rapidly growing area of data linkage research. The views of Panel members provide a positive outlook and a fresh, and sometimes unexpected, perspective on various issues. The lessons we have learned, and our experience of involving the Panel in various aspects of our work, may be of value to others seeking to work with consumers in data linkage research, to researchers in general and to consumers themselves.     

Putting leadership back into strategy

In recent decades an infusion of economics has lent the study of strategy much needed theory and empirical evidence. Strategy consultants, armed with frameworks and techniques, have stepped forward to help managers analyze their industries and position their companies for strategic advantage. Strategy has come to be seen as an analytical problem to be solved. But, says Montgomery, the Timken Professor of Business Administration at Harvard Business School, the benefits of this rigorous approach have attendant costs: Strategy has become a competitive game plan, separate from the company's larger sense of purpose. The CEO's unique role as arbiter and steward of strategy has been eclipsed. And an overemphasis on sustainable competitive advantage has obscured the importance of making strategy a dynamic tool for guiding the company's development over time. For any company, intelligent guidance requires a clear sense of purpose, of what makes the organization truly distinctive. Purpose, Montgomery says, serves as both a constraint on activity and a guide to behavior. Creativity and insight are key to forging a compelling organizational purpose; analysis alone will never suffice. As the CEO--properly a company's chief strategist--translates purpose into practice, he or she must remain open to the possibility that the purpose itself may need to change. Lou Gerstner did this in the 1990s, when he decided that IBM would evolve to focus on applying technology rather than on inventing it. So did Steve Jobs, when he rescued Apple from a poorly performing strategy and expanded the company into attractive new businesses. Watching over strategy day in and day out is the CEO's greatest opportunity to shape the firm as well as outwit the competition.     

Multi-country event-study methods

We provide the first simulation evidence of event-study test performance in multi-country non-US samples. The nonparametric rank and generalized sign tests are more powerful than two common parametric tests, especially in multi-day windows. The two nonparametric tests are mostly well specified, but neither is perfectly specified in all situations. The parametric standardized cross-sectional test can provide a useful robustness check but is less powerful than the nonparametric tests and rejects too often in single-market samples and when firm-specific events affect the market index. Local-currency market-model abnormal returns using national market indexes are sufficient.     

The impact of external forces on cartel network dynamics: Direct research in the diamond industry

This paper describes the impact of external environmental forces on cartel networks. Using a case research approach, this report examines two leading business networks within one industry, over time. The results suggest that (a) bargaining power of intermediaries increases with the advent of new and powerful actors, (b) process activities that cartels previously controlled are being outsourced to new actors sometimes based in developing countries, (c) other actors are acquiring resources once dominated by a cartel, (d) external forces triggered by the illegal diamond trade, such as international regulatory constraints, no longer favour cartels like De Beers, and (e) over time, these and additional environment factors are forcing actors like De Beers who perform rigid process activities to become more flexible. For example, forces are moving cartels which relied previously on hand-picked intermediaries in highly controlled networks to market their products to adopt a flexible market-focused expansion of operations in retail contexts.     

The EU ETS and corporate environmental abatement

This article studies the relationship between firm-level emissions-to-cap ratio (ETC) and environmental abatement, by using a unique and extensive data set of 10 762 installations covered by the European Union Emission Trading Scheme (EU ETS) matched to 5931 firms. We find that a shortage of emissions allowances is related to more abatement in later years while a surplus of emissions allowances results in worse subsequent environmental performance. This finding underscores the importance of reducing the global amount of allowances in the ETS system. Our results also suggest that stakeholder pressure and the creation of transparency concerning corporate environmental performance are likely to support the effectiveness of the system.     

Identification and estimation of Gaussian affine term structure models

This paper develops new results for identification and estimation of Gaussian affine term structure models. We establish that three popular canonical representations are unidentified, and demonstrate how unidentified regions can complicate numerical optimization. A separate contribution of the paper is the proposal of minimum-chi-square estimation as an alternative to MLE. We show that, although it is asymptotically equivalent to MLE, it can be much easier to compute. In some cases, MCSE allows researchers to recognize with certainty whether a given estimate represents a global maximum of the likelihood function and makes feasible the computation of small-sample standard errors.     

Strategic human resource management and supply chain orientation

Most SHRM research has concentrated on single, focal organizations and on activities taking place within the firm. The purpose of this article is to lay a foundation for studying SHRM in the supply chain. We present a framework which identifies factors that influence whether adopting a supply chain orientation (SCO) is effective, and articulates the contingencies that shape SHRM practices needed to achieve and capitalize on SCO. We make several contributions to the strategic human resource management and supply chain literatures. First, we highlight this neglected area of research. Second, we expand the boundary conditions of strategic human resource management and HR systems from a primarily single firm, intra-organizational focus to one which includes both intra- and inter-organizational relationships. Third, we provide a framework for understanding the links between HR systems, SCO, and strategic outcomes. Fourth, we build upon previous theorizing in strategic human resource management and provide a framework for research in the supply chain context. And finally, we offer propositions for future research, along with a decision making model which has implications for both research and management practice.     

Music to Your Brain: Background Music Changes Are Processed First,Reducing Ad Message Recall

Background music captures attention, evokes images, and creates ambience, but may interfere with processing of advertised messages, reducing recall. Brains are hardwired to process unexpected background sound changes first, automatically preempting processing of brand message elements and reducing recall. The degree of this recall reduction depends on the structural characteristics of the music, as well as the advertised brand. Backgrounds with more frequent harmonic and textural changes create more frequent distraction, reducing message recall. Faster tempos increase the frequency of those distractions. However, faster tempos also enable streaming of like distractions, improving message recall. In Experiment 1, backgrounds, varying in harmonic, textural, and temporal characteristics, were compared across ads for six brands. Message recall was higher for ads with backgrounds with less‐frequent change. Message recall from ads for new, unfamiliar brands suffered more from background music interference than from ads for established brands. In Experiment 2, background change frequency was reduced in two ads, holding all else constant, which improved message recall.     

Operational planning and competitive strategies of male and female retailers

Interest in the managerial practices of females in business has increased over the past decade due to women's increased representation in business. Anecdotal evidence has suggested that women approach decision making differently from men. The purpose of this study is to determine if gender differences regarding managerial strategies exist in the retail setting. Targeted managerial strategies focused on short-term planning processes (personnel, financial, inventory and market planning) and competitive strategies in operation (differentiation, cost leadership and focus). In a sample of 459 retailers from a twelve-state region, MANOVA was used to determine if significant differences in managerial strategies existed between genders. The data on retail competitive strategies suggest that men and women more likely than male business owners to recognize in the importance of differentiation and focus as retail competitive strategies in their business operations. Gender differences were also found in the operational planning areas of market and inventory planning.