Fine tuning market oriented practices

Being more market oriented—in other words, getting closer to customers while keeping a wary eye on competitors in order to respond quickly and effectively to changing market conditions—has long been viewed as a key way of improving competitive advantage. However, there is still a lack of understanding about how to optimize the implementation of market oriented business strategies, particularly in the service sector. This article addresses that gap by investigating how customer and competitor focused practices can be fine tuned to create differential advantages. An in-depth qualitative study of professional, financial, and business service firms in New Zealand suggests that how well market oriented practices are implemented is much more important than the range of practices that are adopted.     

OF TIME AND POWER: LEADERSHIP DURATION IN THE MODERN WORLD

Henry Bienen and Nicolas van de Walle, Of Time and Power . Stanford: Stanford University Press, 1991.     

The business case for regulation of corporate social responsibility and accountability

This paper develops an alternative (or supplementary) theoretical justification for the regulation of corporate social responsibility (CSR) and social and environmental accounting and reporting (SEAR) to the justification contained in the extant academic literature. It does this by demonstrating how, contrary to the dominant business discourse, increased regulation designed to protect the social and environmental interests of a range of stakeholders can also serve to enhance corporate economic performance and shareholder value.

The theoretical perspectives developed in this paper are drawn from Beck's and Giddens’ theories on reflexive modernity, and indicate that reflexively appropriated knowledge can be a key factor in developing socially constructed understandings of the social and environmental risks to a range of stakeholders inherent in business operations.

In situations where voluntary self-regulation of CSR and SEAR has been ineffective in preventing corporate actions and decisions that have resulted in damaging social and environmental consequences, processes of reflexivity can substantially increase public awareness of the level of risk they face from corporate operations. Such increased perceptions of risk can lead to a loss of trust in an individual corporation or a whole industrial sector, and this can be exacerbated where stakeholders begin to actively seek out alternative risk discourses to inform themselves about possible risks of which they were previously unaware. We argue that effective statutory regulation could avoid these outcomes, and the loss of shareholder economic value that can flow from these outcomes.     

Co-Creating Value in a Retail Market Setting

It is usually assumed that the co-creation of value requires a close relationship between producers and customers. Typically, this is easier in a business-to-business context, where the numbers of customers and suppliers are relatively low and the capabilities and needs of each partner can readily be assessed. On the other hand, it could be assumed that the co-creation of value in a business-to-consumer context is likely to be more difficult, given the larger numbers of customers and more frequent, short-term, discrete transactions. This article investigates whether it is possible to co-create valuable consumer experiences in a mass market setting by examining the customer relationship strategies of eight Norwegian seafood retailers. The results show that considerable effort from both retailers and consumers are devoted to co-create valuable consumer experiences. We also reveal a repertoire of strategies to engage customers in the co-creation process. Findings are discussed and implications highlighted.     

Stake Management in Men's Online Cosmetics Testimonials

Although the Internet has opened up new avenues for identity expression, many web‐based sources have yet to be examined. Online testimonials as a form word‐of‐mouth advertising are a relatively new development. The present study examines the construction of masculinities in men's cosmetics adverting testimonials presented on the website of a leading brand. The dataset is examined using discursive psychology and membership categorization analysis methodologies. The findings indicate that when men write facial cosmetics testimonials they still justify the use of these non‐typical masculine products even in the absence of others’ responses. The analysis highlights the continued difficulty men report in using typically feminized products, frequently accounting for their cosmetic use as a "corrective" measure rather than for beautification. The implications for the marketing of masculine products are discussed.     

Optimal measure preserving derivatives revisited

This article clarifies the relationship between pricing kernel monotonicity and the existence of opportunities for stochastic arbitrage in a complete and frictionless market of derivative securities written on a market portfolio. The relationship depends on whether the payoff distribution of the market portfolio satisfies a technical condition called adequacy, meaning that it is atomless or is comprised of finitely many equally probable atoms. Under adequacy, pricing kernel nonmonotonicity is equivalent to the existence of a strong form of stochastic arbitrage involving distributional replication of the market portfolio at a lower price. If the adequacy condition is dropped then this equivalence no longer holds, but pricing kernel nonmonotonicity remains equivalent to the existence of a weaker form of stochastic arbitrage involving second-order stochastic dominance of the market portfolio at a lower price. A generalization of the optimal measure preserving derivative is obtained, which achieves distributional replication at the minimum cost of all second-order stochastically dominant securities under adequacy.     

Firm creation,entry costs,and house-price volatility∗

Amid growing work on the link between firm creation and cyclical housing-market dynamics, we document a significant, positive, and robust cross-country relationship between the level of new firm creation and the cyclical volatility of house prices. Using a business-cycle model with endogenous firm entry, housing, and housing-finance constraints and shocks, we show that, via general equilibrium effects, greater average firm entry can be a powerful amplification mechanism of housing-finance shocks. These shocks and constraints play a key role in quantitatively rationalizing the link between firm creation and house-price volatility across countries.