Global Versus Local Consumer Culture Positioning in a Transitional Market: Understanding the Influence of Consumer Nationalism

To shed cultural insights on the complex interplay between globalization and local ideologies, this study presents an online experiment that tested the comparative effects of global and local consumer culture positioning strategies in China. Reflecting the prevailing trend of nationalism around the globe, the study findings highlight the power of consumer nationalism on driving the effects of these culture-oriented positioning strategies. Furthermore, self-brand connection was found to be a critical mediator of the effects of consumer nationalism on brand evaluation. Based on the findings, this study provides strategic guidelines for both domestic and global brands to craft culturally relevant campaigns that capitalize on the growing trend of consumer nationalism in transitioning markets such as China.     

Underwriter reputation,earnings management and the long‐run performance of initial public offerings

This study contributes to the extant literature on the nature of earnings management surrounding initial public offerings (IPOs) by investigating the role of underwriter reputation. We argue that prestigious underwriters will protect their reputation by carefully monitoring and certifying financial information on IPO firms, thereby limiting any potential earnings manipulation. As a result, those IPO firms that are associated with more prestigious underwriters are likely to exhibit substantially less‐aggressive earnings management. Conversely, we find the existence of a negative relationship between earnings management and the post‐offer performance of an IPO firm’s stocks only for those firms associated with less‐prestigious underwriters.     

An Optimal Product Mix for Hedging Longevity Risk in Life Insurance Companies: The Immunization Theory Approach

This article investigates the natural hedging strategy to deal with longevity risks for life insurance companies. We propose an immunization model that incorporates a stochastic mortality dynamic to calculate the optimal life insurance–annuity product mix ratio to hedge against longevity risks. We model the dynamic of the changes in future mortality using the well‐known Lee–Carter model and discuss the model risk issue by comparing the results between the Lee–Carter and Cairns–Blake–Dowd models. On the basis of the mortality experience and insurance products in the United States, we demonstrate that the proposed model can lead to an optimal product mix and effectively reduce longevity risks for life insurance companies.     

Information systems and technology sourcing strategies of e-Retailers for value chain enablement

In the e-Retail industry, a well-designed IT infrastructure is essential in creating a tightly integrated value chain and delivering high quality service. With intense competition for market share and profits, information systems and technology (IST) sourcing decisions are becoming increasingly important to e-Retail firms to support continued growth and market responsiveness. Drawing on the contingency theory, we examine organizational and environmental factors that influence an e-Retailer's IST sourcing strategy of make versus buy in enabling its value chain activities, and we also look at firm-level performance impacts of IST sourcing decisions that involve bundling across value chain activities. We test the proposed model and hypotheses using a panel data set of 307 firms over the period of 2006–2010. The results show that firms that make transformative IT investments tend to source a smaller portion of IST for their e-Retail value chain activities than firms that pursue automate or informate as their strategic role for IT investment. Capabilities are positively associated with IST sourcing. Firms experienced in e-Retail are more likely to build rather than buy their IST. In addition, we find mimicking behavior for IST sourcing among firms in the same merchandizer category. We find that IT strategic role is strongly associated with growth metric, whereas sourcing decisions predominantly impact operational performance measures. There is partial evidence that alignment between IT strategic role and IST sourcing decisions results in better performance effects. Moreover, complementary IST sourcing of synergistic marketing and sales activities positively impacts Web sales and conversion rate, but the sourcing combination of logistics, operations, and sales activities is associated with lower Web sales and conversion rate.     

A multiple objective particle swarm optimization approach for inventory classification

This paper presents a particle swarm optimization approach for inventory classification problems where inventory items are classified based on a specific objective or multiple objectives, such as minimizing costs, maximizing inventory turnover ratios, and maximizing inventory correlation. In addition, this approach determines the best number of inventory classes and how items should be categorized for the desired objectives at the same time. Experiments are employed to determine the best combination of algorithm parameter values. Extensive numerical studies are conducted and results are compared to other known classification methods. The performance of the algorithm on a practical case is also presented.     

Resolving the innovation puzzle of latecomers: the case of Taiwan

In the currently rapidly changing business world, innovation has not only become the key to survival and success, but also the defining challenge of organisations. For latecomer firms, however, because of their inherent resource constraints, innovation has become a far more complex undertaking, similar to a multidimensional puzzle. Although there have been an increasing number of practitioner-based surveys, a discrepancy still remains between academia and industry concerning the role and importance of R&D in innovation. Therefore, this study carried out an industry–university–institution survey of Taiwan, based on a multidimensional framework of the innovation puzzle: human, R&D, flow and connection. The results reveal several interesting clues and provide a better understanding of the innovation puzzle for latecomers, and more importantly, resolves the puzzle that could help latecomers identify where new opportunities lie and what weaknesses they must strengthen.     

Individual Preferences for Trade Partners in Taiwan

This article investigates economic factors and non‐economic factors of individual attitudes toward free‐trade agreements with different countries. Based on the Stolper–Samuelson theorem, highly skilled workers in Taiwan should be more supportive of free trade with China and less supportive of free trade with the United States than should unskilled workers in Taiwan. Using survey data from Taiwan, we find that highly educated people in Taiwan are more supportive of free trade with both the United States and China, and the effects of education are much stronger with respect to free trade with China. We also find that individual risk attitudes, national identity, and ethnicity play important roles in explaining trade preferences.     

Extending the link between entrepreneurial self-efficacy and intention: a moderated mediation model

This study extended the research on the relationship between entrepreneurial self-efficacy and intention by developing a moderated mediation model. This model posits that the link between entrepreneurial self-efficacy and intention is mediated by attitudes toward entrepreneurship and planned entrepreneurial control, and that these mediation processes are further moderated by subjective norms. Based on a sample of 308 valid responses, regression analysis yielded two noteworthy results. First, entrepreneurial self-efficacy positively affects intention through attitudes toward entrepreneurship and planned entrepreneurial control. Second, the direct effect of entrepreneurial self-efficacy on intention decreases as subjective norms increase. By contrast, the indirect intention effects of entrepreneurial self-efficacy through attitudes toward entrepreneurship and planned entrepreneurial control increase as subjective norms increase. In addition, the results indicated that subjective norms positively affect entrepreneurial intention. These findings indicated that the model advances the use of the theory of planned behavior and can be used to define a person as an entrepreneur.     

Social comparison among competing firms

Extending social comparison theory to the context of interfirm competition, we investigate whether and under what conditions firms may benefit by deviating from consumers' views concerning firm comparisons. Based on all of the possible dyadic competitive comparisons among the 26 automakers in the United States, we found that: (1) a focal firm enjoys a greater increase in sales than the target firm when it compares itself with a more reputable target firm, even though consumers do not perceive the focal firm to be comparable to the more reputable firm; and (2) a focal firm enjoys a greater increase in sales than the target firm when it avoids comparison with a less reputable target firm, even though consumers compare the focal firm with the less reputable firm. Copyright © 2011 John Wiley & Sons, Ltd.     

贸易财属性与贸易政策竞争均衡

本文利用两国两异质财货的产业内贸易模型,讨论贸易财属性与贸易政策竞争均衡的决定,并获得以下结论:(1)当两国政府均采取相同的进口或出口政策时,不论产品的消费性质,最适进口贸易政策均为课税;最适出口贸易政策将随贸易财的消费性质而定.替代品为出口补贴,互补品为出口课税.(2)当产品为替代品且厂商在两国市场均实行数量竞争的情况下,进口课税政策虽将成为两国政府的优势策略,但出口补贴政策则更具有效率.在产品为互补品且厂商在两国市场均实行价格竞争的情况下,当产品的互补程度较小(大)时,进口课税(出口课税)政策将成为两国政府的优势策略;当互补程度中等时,两国政府有可能采取差异性的贸易政策.