The Impact of the Corporate Mind‐set on New Product Launch Strategy and Market Performance

In the last decade, there has been an increasing interest in the link between new product launch strategy and market performance. So far, new product launch research has focused on this performance relationship without giving much attention to background factors that can facilitate or inhibit successful launch strategies. However, investigating such antecedents that set the framework in which different strategic launch decisions enable or prevent the market performance of new products is useful for enhancing the current state of knowledge. Drawing on the concept of a firm's orientation, the present study discusses the influence of the corporate mind‐set on new product launch strategy and market performance. It is hypothesized that the capability to successfully launch new products is based on the interplay between a firm's mind‐set (i.e., an analytical, risk‐taking, and aggressive posture) and its strategic launch decisions on setting launch objectives, selecting target markets, and positioning the new product. A research model with mediating effects is proposed, where the corporate mind‐set determines the launch strategy decisions, which in turn impact market performance. The model is tested with data on 113 industrial new products launched in business‐to‐business markets in Germany using a multiple informant approach. The results support the mediated model as the dimensions of the corporate mind‐set have a significant impact on most strategic launch decisions, which in turn significantly contribute to market performance. It is found that while an analytical posture relates to all three strategic launch decisions, risk taking and an aggressive posture have a significant impact on two, respectively one, launch strategy elements. These findings confirm the importance of investigating antecedents for a successful new product launch, as the corporate mind‐set serves as a background resource that sets the framework for successful new product launch decisions. In the final section implications for research and managerial practice as well as limitations of this research are provided.     

The Effects of Personality Composition and Decision‐making Processes on Change Preferences of Self‐managing Teams

Team decision‐making on organizational and strategic changes is pervasive. Yet, little is known about determinants of teams' change preferences. We analyze how composition with respect to personality traits associated with (pro‐)active behavior (locus of control and type‐A/B behavior) influences self‐managing teams' preferences for the likelihood and magnitude of changes, and whether participative decision‐making and team monitoring as core features of group decision‐making counteract or reinforce change tendencies. Results from a business simulation with 42 teams largely support predictions. Stronger type‐A orientation increases the likelihood of (drastic) changes. Teams dominated by internal locus of control members are highly responsive to performance feedback in their change preferences. Participative decision‐making encourages, whereas team monitoring restricts tendencies towards extreme magnitudes. Copyright © 2011 John Wiley & Sons, Ltd.     

Spillover effects from unintended trials on attitude and behavior: Promoting new products through access-based services

Access-based services (ABS) provide an opportunity for brands to promote their new products by enabling (unintended) trials. However, the mechanisms and impact of consumer exposure to products in ABS and the subsequent potential spillover effects on both the brand and the product perception are largely unknown. Our hypotheses are derived from the information integration theory (IIT) and subsequently tested. Study 1 is a field study investigating an unintended trial moderated by involvement and positive experience. The results indicate the positive effects of the unintended trial on product and brand attitudes, brand purchase intention, and word of mouth. In line with IIT, these effects are more pronounced for positive trial experience, although in contrast to IIT, they are less pronounced for high-involvement consumers. While the results of Study 2, an online experiment, show substantial effects of both trials compared with nontrials, they also reveal that intended and unintended trials have a similar impact on attitude, but ABS experiences have a stronger positive impact on brand purchase intention. We thus recommend that brand managers promote not only new products but also their brands in unintended trials. This study fills a gap in current discussions about the trial effect(s) of ABS.     

Water scarcity and the impact of improved irrigation management: a computable general equilibrium analysis

Increasing water scarcity combined with an increasing demand for food and water for irrigation call for a careful revision of water use in agriculture. Currently, less than 60% of all the water used for irrigation is effectively used by crops. Based on the new version of the GTAP‐W model we analyze the effect of potential water savings and the welfare implications of improvements in irrigation efficiency worldwide. The results show that a water policy directed to improve irrigation efficiency led to global and regional water savings, but it is not beneficial for all regions. The final effect on regional welfare will depend on the interaction of several different causes. For instance, higher irrigation efficiency changes opportunity costs and reverses comparative advantages, modifying regional trade patterns and welfare. For water‐stressed regions the effects on welfare are mostly positive. For nonwater scarce regions the results are more mixed and mostly negative. The results show that exports of virtual water are not exclusive of water abundant regions.     

The Stability of European Money Demand: An Investigation of M3H

The paper assesses the stability and predictive performance of a European money demand function as compared to national money demand functions. With respect to the explanatory accuracy, the national functions perform better than the aggregated function. Examination of the residuals of the national money demand equations indicates that currency substitution is not the major cause for the stability of the aggregated money demand function. The aggregate relation mainly seems to reflect German money demand. This conclusion is supported by the instability of aggregated money demand resulting from the exclusion of Germany from the aggregate.     

Window on Eastern Europe

Commercial cooperation between transBaltic neighbours Denmark and Poland is thriving, yet relationships between business people in the two countries are not always easy as a consequence of differing cultural histories and misunderstandings. The author is Associate Professor in the Department of Intercultural Communication and Management in Copenhagen Business School, Dalgas Have 15, DK-2000 Frederiksberg, Denmark.     

An Incomplete Markets Explanation of the Uncovered Interest Rate Parity Puzzle

A large literature attributes failure of uncovered interest rate parity (UIP) to the existence of a time‐varying risk premium. This paper presents a mechanism in a simple two‐country two‐good endowment economy with incomplete markets that generates sizeable deviations from UIP. In a parameterization where international wealth effects are important, liquidity constraints on an internationally traded bond and agents’ strong resulting precautionary motives successfully generates a time‐varying risk premium: countries that have accumulated large outstanding external positions have, being closer to the constraints, stronger precautionary motives and their asset carries a risk premium.     

Comprehensive Support for Creativity-Intensive Processes

Creativity is an important precondition of innovation. However, the management of creativity-intensive processes (CIPs) is beyond the scope of standard methodologies for business process standardization and automation because of the contradictory properties of CIPs, which require both process structure and creative freedom. We develop an explanatory design theory based on theoretical constructs from BPM theory, creativity research, and collaboration engineering, with the core component of an integrated IS architecture that facilitates the design of systems providing comprehensive support for CIPs. Automated control of structured processes and support of idea development in groups increase process efficiency and creative performance. Evaluation of a sub-portion of an expository instantiation (CreativeFlow) of the architecture in a laboratory experiment suggests that working with CreativeFlow leads to ideas that are more specific, while working without the tool generates ideas that are more feasible. Further, idea evaluation support of CreativeFlow must be improved in order to increase ideas’ feasibility and relevance. The validity of our theory is derived from a deductive development approach. We indicate limitations and further research.     

Tourism in India: Policy pitfalls

Tourism destination marketing is now widely recognized as an essential component in the management of destinations. In harmony with the general marketing literature, which understands marketing as a management tool, some researchers understand destination marketing as a form of ‘market-oriented strategic planning’ and hence as a strategic approach to place development rather than a promotional tool. Based on the results of a case study of tourism destination marketing in the Nelson/Tasman Region, New Zealand, this article examines the suitability of tourism destination marketing as a tool and of Destination Marketing Organizations (DMO) as a vehicle for tourism destination management and development. A discussion of several difficulties in the implementation of tourism destination marketing in Nelson/Tasman Region leads to the conclusion that DMOs are unlikely to be able to claim too much responsibility for destination management but that they can play an important part in the management of the destination product.     

Deutsche Leistungsbilanzüberschüsse in der Kritik

Germany runs large current account surpluses. Recently the surplus has been higher than seven per cent of GDP. This has provoked many different criticisms. First, some argue that the euro is the main problem. Second, German wages and prices have been criticised for being too low. Third, according to some critics, German domestic demand should be higher. Fourth, current account surpluses have been assumed to be unsustainable. The article discusses all those arguments and analyses their validity.