Valuation of New Products in Attribute Space

We contribute to the literature on new product valuation by presenting a model of new product introduction based on the distance metric (DM) approach of Pinkse, Slade, and Brett (2002) . Models based on the DM approach are capable of dealing with highly differentiated food categories that are often responsible for the lion's share of new product activity. Furthermore, since new products are typically characterized by differences in observable attributes, the DM approach is appropriate in that it directly accounts for such differences. Our findings reveal that consumers benefit from new products even when the number of alternatives is already high.     

The complementary effect of intellectual property protection mechanisms on product innovation performance

This study assessed the effect of simultaneous implementations of different intellectual property (IP) protection mechanisms on a firm's product innovation performance (PIP). The study categorized seven widely-used IP protection mechanisms (IPPMs) into two groups: formal and informal. Complementarity was then tested within and between the formal and informal groups of IPPMs. The result showed that there existed complementarity when multiple IPPMs were implemented from the same groups. Throughout an additional analysis on the moderating effect of the industrial complexity in technology, it was found that the ‘between groups' combination effect was also existed but varied from even negative to positive concluding that industrial complexity of technology moderates the effects of combinations of IPPMs on a firm's PIP. These results imply that the use of multiple IPPMs is effective but the effect varies by the technological complexity of industry.     

Predicting Private Company Failures in Italy Using Financial and Non‐financial Information

The study assesses the use of non‐financial information in predicting financial distress in private companies by developing credit risk models tailored to Italian private companies. The in‐sample and out‐of‐sample prediction test results are indicative of the incremental predictive ability of the two new non‐financial variables, that is, number of shareholders and number of subsidiaries, over accounting ratios and other widely used non‐financial information, including firm age and industry dummies. To be more specific, number of shareholders and number of subsidiaries are negatively associated with private company failures, and the models augmented by the two non‐financial variables improve forecasting performance from acceptable discrimination to excellent discrimination over one‐ to three‐year time horizons.     

Challenges and opportunities for pre-crisis emergency risk communication: lessons learned from the earthquake community

Abstract

Prior to the 2009?L’Aquila event, earthquake forecasting and early warning research focused specifically on earthquakes as the crisis events. Although this is still true, the manslaughter convictions of six earthquake scientists and one public official for failed risk communication in 2009 served as a catalyst for expanding these goals to also intentionally examine the challenges of communicating earthquake risk with non-scientific during the pre-crisis stage of the earthquake lifecycle. The Crisis Emergency Risk Communication (CERC) Model developed by the US Centers for Disease Control and Prevention (CDC) provides specific guidelines for doing so. Thus, based on a thematic analysis of interviews with 21 earthquake scientists, this study identifies what those responsible for communicating regularly about earthquake risk see as major communication challenges and the extent to which the CERC model recommendations are useful for addressing them. Results suggest that earthquake risk science communicators are most effective when they translate scientific and technical information simply, respond to competing messages, capitalize on relevant popular culture references, employ risk communication campaigns during ‘quiet periods’, and acknowledge uncertainty. These findings have implications not only for earthquake science risk communicators, but also for expanding the pre-crisis stage best practices proposed in the Crisis Emergency Risk Communication (CERC) model. Essentially, this study reveals that soliciting and responding to feedback in the pre-crisis stage could help spokespersons clarify or correct any messages that are perceived by audiences as unclear or are simply not accurate. Doing so may improve risk communication effectiveness not only during the pre-crisis stage but also throughout the earthquake crisis lifecycle.     

60 Years of March and Simon’s Organizations: An Empirical Examination of its Impact and Influence on Subsequent Research

We provide an analytic and systematic review of the impact of March and Simon’s seminal Organizations on management research and discuss the book’s value for current research and propose future applications of it. Building on bibliometric and text‐mining approaches, our empirical analysis reveals that although Organizations was contextually based in the industrial milieu of the 1950s, its concepts have found ongoing resonance with scholars. Further, we find that much of this resonance appears to be driven by the ability of scholars in different ‘schools of thought’ to find useful insights from March and Simon’s generalized theoretical structure. However, we also observe that scholars have been selective in their usage of ideas from the book over the last 60 years. Based our analysis, we propose a particular set of future research areas, including a focus on new organizational forms and extending March and Simon’s ideas to multi‐level research, which can benefit from more holistically drawing on Organizations and connect its original ideas to address current management problems.     

The right metrics for marketing-mix decisions

This study addresses the following question: For a given managerial, firm, and industry setting, which individual metrics are effective for making marketing-mix decisions that improve perceived performance outcomes? We articulate the key managerial takeaways based on testing a multi-stage behavioral framework that links decision context, metrics selection, and performance outcomes. Our statistical model adjusts for potential endogeneity bias in estimating metric effectiveness due to selection effects and differs from past literature in that managers can strategically choose metrics based on their ex-ante expected effectiveness. The key findings of our analysis of 439 managers making 1287 decisions are that customer-mindset marketing metrics such as awareness and willingness to recommend are the most effective metrics for managers to employ while financial metrics such as target volume and net present value are the least effective. However, relative to financial metrics, managers are more uncertain about the ex-ante effectiveness of customer-mindset marketing metrics, which attenuates their use. A second study on 142 managers helps provide detailed underlying rationale for these key results. The implications of metric effectiveness for dashboards and automated decision systems based on machine learning systems are discussed.     

The Role of Innovation in Upgrading in Global Value Chains

ABSTRACT

We examine the role of innovative efforts in industries from the perspective of global value chains (GVCs). We set up a simple model and empirically test it using patent and bilateral export decomposition data. The model shows that innovative activities assumed to decrease the cost of conducting high-skilled tasks can upgrade the position of the industry in GVCs. This is also supported by data on patents and GVC-related data from the OECD and the Asian Development Bank. The empirical results reveal that a higher number of patent applications are closely related to more production of intermediate goods rather than assembly.     

Understanding fashion communication between Korean middle‐aged mothers and daughters

Daughters can be considered important social role models for middle‐aged mothers in fashion communication such as the clothing purchase or conformity. This study explores antecedents (trust in daughters as fashion informants and internalized social pressure for appearance management) and outcomes (solidarity between mother and daughter, psychological well‐being of mother) of fashion communication (mother–daughter shopping, clothing conformity) between middle‐aged mothers and daughters. The data were collected using a self‐administered online survey of 307 middle‐aged Korean women between ages of 45 and 65. The result shows that mothers’ trust in daughters as fashion informants and internalized social pressure for appearance positively influence mother–daughter shopping and mothers’ clothing conformity to daughters. Next, mother–daughter shopping and mothers’ clothing conformity have a positive influence on the solidarity of mothers and daughters. When solidarity becomes stronger, the degree of the mothers’ psychological well‐being increases.     

Health state utilities associated with treatment options for acute myeloid leukemia (AML)

Abstract

Aims: Acute myeloid leukemia (AML) treatment typically involves remission induction chemotherapy followed by consolidation chemotherapy. New treatments for AML have recently been introduced, including a chemotherapy formulation called CPX-351, which is administered via less time-intensive IV infusion than the standard “7?+?3” continuous infusion regimen of cytarabine plus an anthracycline. The purpose of this study was to estimate utilities that could be used in economic modeling of AML treatment.

Materials and methods: In time trade-off interviews, participants from the UK general population valued 12 health states drafted based on literature and clinician interviews. To identify disutility associated with chemotherapy, two types of induction and four types of consolidation were added to an otherwise identical health state describing AML. The decrease in utility when adding these chemotherapy regimens represents the disutility of each regimen. Five additional health states were valued to estimate utilities associated with other AML treatments.

Results: Two hundred participants completed interviews. Mean (SD) utilities were 0.55 (0.31) for pre-treatment AML and 0.66 (0.29) for AML in temporary remission. Adding any chemotherapy significantly decreased utility (p?<?0.0001). Induction had a mean disutility of –0.11 with CPX-351 and –0.15 with 7?+?3. Mean disutility for consolidation ranged from –0.03 with outpatient CPX-351 to –0.11 with inpatient 5?+?2. Utilities are also reported for other AML treatments (e.g. transplant, low-intensity chemotherapy).

Limitations: One limitation is that the differences in adverse event profiles between the treatment regimens were based on clinician opinion. Future use of CPX-351 in clinical trials or clinical settings will provide additional information on its adverse event profile.

Conclusions: While all chemotherapy regimens were associated with disutility, regimens with shorter hospitalization and less time-intensive infusion were generally perceived as preferable. These utilities may be useful in cost-utility models comparing the value of AML treatments.