Dimensional effects of Korean SME’s entrepreneurial orientation on internationalization and performance: the mediating role of marketing capability

This study examines how three different dimensions of entrepreneurial orientation (proactiveness, innovativeness, and risk-taking) each determine internationalization strategies and enhance international performance among small and medium-sized enterprises (SMEs) through the mediating role of marketing capabilities. An integrative theoretical framework built on international entrepreneurship and a resource-based approach was tested in the context of Korean SMEs. Analyses of 401 survey data collected from Korean exporting SMEs revealed the differential effects of each entrepreneurial orientation and the mediating effect of marketing capability on internationalization strategies and performance. Proactiveness and risk taking appeared to function as significant antecedents of marketing capability. Marketing capability, in turn, significantly decreased internationalization scope and increased the financial performance of Korean SMEs, though it did not influence internationalization scale. This study further confirms that the mediating role of marketing capability in entrepreneurial orientation-performance relationships vary by entrepreneurial orientation dimensions. Taking the direct and indirect roles of the entrepreneurial orientation dimensions together, this study recommends the critical prioritization of risk-taking over proactiveness. It extends previous approaches to the triad of resource–capability–performance. Theoretical contributions and insightful managerial implications are also provided.     

Why do satisfied customers switch? Focus on the restaurant patron variety-seeking orientation and purchase decision involvement

Company efforts to make customers switch from competitive brands to their own or induce them to repurchase their own brands are very important in their marketing activities and in this regard studies of customer variety-seeking orientation and level of involvement in decision making play a crucial role in explaining customers’ product selection activities. The purpose of this study intends to examine interrelationships among customer satisfaction, loyalty, and switching intent in family restaurants and verify the moderating effect of customer variety-seeking orientation and purchase decision involvement. A total of 305 patrons in Korea participated. The results showed a positive relationship between customer satisfaction and loyalty. Participants expressing a high level of satisfaction were more likely to switch restaurants. Whether customers feel loyalty determines their switching intent. There were moderating effects related to customer variety-seeking orientation in the causal relationships between customer loyalty and switching intent. Limitations and future research directions are also discussed.     

The role of brand schemas,information transparency,and source of message on apparel brands' social responsibility communication

In today's complex business environment, apparel brands are communicating about their socially responsible (SR) practices through marketing messages to create a niche for themselves and show their SR efforts. However, SR aspects of products are difficult to verify by consumers. To help brands effectively communicate their SR efforts, this study assessed how consumers process an apparel brand's SR messages based on their prior experiences with that brand (brand schemas). Information transparency on messages and source of messages were tested as external cues to influence consumers' brand schemas and SR message evaluations in a mixed method repeated measures online experiment using a national US consumer sample. Results from regression-based conditional process analyses indicated that increased congruity of consumers' schemas to the fact that brands are SR led to more favorable attitude toward brands' SR messages. Also, presence of high information transparency on SR messages influenced consumers' schemas positively, and in turn, they evaluated messages more favorably. However, consumers were not influenced by whether messages were made by brands or third-party organizations. The study results show the importance of brand schemas and information transparency on apparel brand communications, helping both apparel brands and educators create effective SR-related marketing strategies.     

Who shapes network neutrality policy debate? An examination of information subsidizers in the mainstream media and at Congressional and FCC hearings

Recognizing policy-making process as a communicative process, this study examines who has subsidized information relating to the net neutrality policy debate. Empirical data has been collected from net neutrality stories published in four national newspapers, as well as from hearings by Congress and the Federal Communications Commission (FCC), during the period of February 2004 through January 2009. Study findings reveal that corporate interests have played a significant role in subsidizing information on net neutrality, both to the public through the mainstream media and to legislators through Congressional hearings. Furthermore, study results show that experts played a larger role in defining net neutrality through the mainstream media and FCC hearings than they did through Congressional hearings. Finally, the role of advocacy group representatives was more apparent at Congressional hearings than via the other two available information channels.     

Microstructure-based manipulation: Strategic behavior and performance of spoofing traders

We examine how investors strategically spoof the stock market by placing orders with little chance of being executed, but which mislead other traders into thinking there is an imbalance in the order book. Using the complete intraday order and trade data of the Korea Exchange (KRX) in a custom data set identifying individual accounts, we find that investors strategically placed spoofing orders which, given the KRX's order-disclosure rule at the time, created the impression of a substantial order book imbalance, with the intent to manipulate subsequent prices. This manipulation, which made use of specific features of the market microstructure, differs from previously studied forms of manipulation based on information or transactions. Roughly half of the spoofing orders were placed in conjunction with day trading. Stocks targeted for manipulation had higher return volatility, lower market capitalization, lower price level, and lower managerial transparency. We also find that spoofing traders achieved substantial extra profits. The frequency of spoofing orders decreased drastically after the KRX altered its order-disclosure rule.     

Product Patent Reform and its Impact on Korea's Pharmaceutical Industry

Our analysis focuses on the effect of U.S. government pressure on Korea to adopt product patents for chemical and pharmaceutical products. American pressure began in November 1985 and ended with the Korean Legislature's passage of a new patent law in December 1986. We conduct an event study of the effect of the new patent law on the value of Korean pharmaceutical firms listed on the Korea Stock Exchange. Regression analysis shows that the new law induced excess returns of-74 percent over the 14-month analysis period. The results suggest that adoption of stronger patent laws reduced Korea's wealth. [G14, O34]     

Inter-industry gender wage gaps by knowledge intensity: discrimination and technology in Korea

A new gender wage gap decomposition methodology is introduced, which does not suffer from identification problems caused by unobserved nondiscriminatory wage structure. The methodology is used to measure the relative size of Korean gender wage gaps, from 1994 to 2000 across industries, differentiated by industrial knowledge intensity, where knowledge intensity is the extent to which industries produce or employ high-technology products. Korea represents an important case study, since it possesses one of the fastest growing knowledge-intensive economies among industrialized countries. Empirical results indicate that over this period, discrimination (the unexplained portion of the gender wage gaps) in Korea was statistically smaller in knowledge-intensive industries than in industries with low knowledge intensity. Also, discrimination was declining on average over the period. This suggests that continued growth in knowledge-intensive industries in Korea may lead to further declines in the overall gender gap.     

PIGS or Lambs? The European Sovereign Debt Crisis and the Role of Rating Agencies

This paper asks whether rating agencies played a passive role or were an active driving force during Europe??s sovereign debt crisis. We address this by estimating relationships between sovereign debt ratings and macroeconomic and structural variables. We then use these equations to decompose actual ratings into systematic and arbitrary components that are not explained by previously observed procedures of rating agencies. Finally, we check whether systematic, as well as arbitrary, parts of credit ratings affect credit spreads. We find that both do affect credit spreads, which opens the possibility that arbitrary rating downgrades trigger processes of self-fulfilling prophecies that may drive even relatively healthy countries towards default.