An approach to prioritize customer-based,cost-effective service enhancements

Service firms routinely enhance their offerings to satisfy and retain current customers and to attract new customers. We show theoretically that service improvements can be prioritized by simultaneously taking into account the likely incremental revenue (through increased customer value) and the incremental cost of making the improvement. The customer values obtained from a sample of respondents, and cost estimates obtained from managers of the service providing organization are combined to prioritize improvements using a ‘bang for the buck’ (i.e. value/cost) rule. Such a prioritization would be helpful to come up with a ‘short list’ of service improvements. The items on the short list can be evaluated in detail for their ‘Return on Quality’. The approach for prioritization is illustrated in the context of improving passenger train service between a pair of cities in India. An adaptive self-explicated approach is used for obtaining customer values and cost estimates. The customer values so elicited display substantial cross-validity.     

Layoffs and duration dependence in a model of turnover

A semi-Markov model of turnover, resulting from optimizing behavior on the part of workers, is developed. Duration dependence in the transition out of employment is modelled as resulting from a layoff probability which decreases with tenure. Some preliminary results, based on DIME data, are presented. These indicate that a declining hazard rate in the transition out of employment is a significant feature of the data.     

Choosing an optimal channel mix in multichannel environments

In the last two decades, particularly with the advent of the Internet, multichannel strategies have come to the fore in business-to-business marketing. Multichannel strategies allow firms to reach customers in multiple ways, increasing the firms' reach. In addition, multichannels allow customers to reach businesses by using their preferred channel (e.g., Internet, salesforce, or value-added reseller). The advantages of reaching increasing number of customers through multiple channels (e.g., sales, trial, profit) are partially offset by two potential negative effects of multiple channels. First, multiple channels create conflict that may dissuade some channels' members from carrying the firm's product. Second, with an increase in the number of channels carrying the product, the sales derived from each new channel drops making it difficult for a firm to recover its costs. Based on these considerations, the paper provides a framework that will allow firms to develop optimal channel mix in multichannel environments. We test the framework in the context of a software firm and provide academic and managerial implications.     

The Impact of Information Overload and Contribution Overload on Continued Usage of Electronic Knowledge Repositories

In the modern competitive organizational environment, more and more organizations are implementing knowledge management initiatives to achieve strategic advantages. One such initiative involves the implementation of electronic knowledge repositories (EKR). EKR implementation frequently results in a rapid increase in the quantity of information that must be processed daily by employees. This raises concerns about information overload (IO), and this is particularly true in relation to modern EKRs that use distributive technology. Furthermore, employees can also suffer from contribution overload (CO) because they can fulfill the functions of both knowledge seekers and knowledge contributors. This study employs the cognitive dissonance theory to determine whether IO and CO affect employees' willingness to use EKRs. The results from 144 survey respondents provide the first empirical evidence that contribution overload exerts a direct and significant negative effect on the intention to continue using EKR, whereas information overload exerts an indirect and significant negative effect on the intention to continue using EKR by altering perceived usefulness and satisfaction with the system.     

The Pattern and Determinants of Intra-Industry Trade in Australian Manufacturing

This paper presents the pattern and determinants of intra-industry trade (IIT) in Australian manufacturing since the late 1970s. The results point to a sharp rise in IIT from the mid 1980s which appears to be linked with an outward-oriented policy. Industry-level analysis indicates that industries which experienced a sharp fall in protection are the industries with the higher levels of IIT. These include textiles, garments, rubber products, and machinery and equipment. An increasing trend in IIT suggests that the short-term adjustment costs associated with trade liberalisation are likely to be lower, and that liberalisation can proceed without huge short-term adjustment costs. Using a logit model the determinants of IIT are investigated. Results indicate that IIT is positively related to product differentiation and scale economies, and negatively related to the levels of protection and foreign ownership in the pre-liberalisation period. In the post-liberalisation period, however, scale economies explain the inter-industry variations in IIT. R&D intensity and close economic integration appear to have no impact on IIT regardless of the nature of the policy regime.     

Gandhian values and consumption behavior: scale development and validation

Researchers have long been interested in the measurement of human values. Gandhi was a leading figure in the independence of India and also in the fight against racialism in South Africa. His teachings are invaluable and have inspired generations all over the world. Following standard procedure for scale development, we aim to identify the various Gandhian values that can be imbibed by an individual. We validate the applicability of the instrument by assessing its relationship with potentially related constructs like socially responsible consumption behavior and consumer frugality. We also assess its relationship with a negatively valenced construct of materialism. To develop the Gandhian values scale, we used a mix of both qualitative and quantitative methods. We conducted three data collection rounds corresponding with four separate phases of scale development. We ensured the stability of the Gandhian value scale across different contexts by testing and validating it across three different sets of sample. To the best of our knowledge, our scope of research is second only in the line of similar research like the Confucian values. Our primary contribution is the development and testing of a parsimonious Gandhian values scale that captures the value system of individuals.     

The perceived usefulness of knowledge supplied by foreign client networks

The network surrounding a firm's foreign clients has large influence on its ability to act in the market. How firms can utilize the knowledge supplied by client networks is therefore of great importance to their business with clients. Many studies show the usefulness of foreign clients and suppliers, whereas less attention has been given to the usefulness of knowledge supplied by clients’ network, such as clients’ clients, clients’ supplementary suppliers and competitors to the firm. This study contributes to international business research on networks by investigating the knowledge supplied by client networks for a firm doing business with a specific foreign client on a sample of 494 firms. A LISREL analysis demonstrates that knowledge supplied by client networks is more useful the more experienced the firm. Client networks are also more useful the more knowledge the firm has of its client, the more the firm needs knowledge of its clients and suppliers, the higher the cost of the client relationship, and the more standardized the product. A major conclusion is that the client network knowledge is more useful the further a firm's collaboration with the client, presumably as a result of the new, and more embedded business that the firm develops with the client. Implications are that client networks are resources that can be important competitive advantages for the internationalizing firm.     

The energy-GDP nexus: Evidence from a panel of Pacific Island countries

The Pacific Island countries are small island economies that are increasingly dependent on energy for growth and development, yet highly susceptible to climate change. Thus, the relationship between energy consumption and GDP is crucial for realizing their future development and growth objectives. This article tests for Granger causality and provides long-run structural estimates for the relationship between energy consumption, GDP and urbanization for a panel of Pacific Island countries. For the panel as a whole in the long-run there is bidirectional Granger causality between energy consumption and GDP and these variables exert a positive impact on each other. A 1% increase in energy consumption increases GDP by 0.11%, while a 1% increase in GDP increases energy consumption by 0.23%. The findings suggest that for the panel as a whole these countries should increase investment in energy infrastructure and regulatory reform of energy infrastructure to improve delivery efficiency, continue to promote alternative energy sources and put in place energy conservation policies to reduce unnecessary wastage. These strategies seek to realize the dual objectives of reducing the adverse effects of energy use on the environment, while avoiding the negative effect on economic growth of reducing energy consumption.