Big-box retail entry in urban and rural areas: are there productivity spillovers to incumbent retailers?

This paper empirically measures the potential spillover effects of big-box retail entry on the productivity of incumbent retailers in the entry regions, and investigates whether the effects differ depending on the size of the new establishment relative to the size of the local market. The results indicate that big-box entry increases the productivity of incumbent stores in two of three rural entry regions where the IKEA is large relative to the local retail market, while no productivity spillover effects could be found in the case of the urban IKEA entry in Gothenburg.     

Relationship commitment and value creation in sponsorship relationships

Purpose: The sponsorship industry has evolved considerably in recent years due to the strategic business opportunities that it provides. Despite increased interest in sponsorship, analysis of the relationship between relationship commitment and value creation and of relationship commitment as comprising multiple types or components in the context of sponsorship relationships is lacking. To address these gaps, this paper analyzes relationship commitment (in terms of affective commitment and value-based commitment) as a significant mediating variable, and value creation in the context of sponsorship relationships.

Methodology/approach: A questionnaire was sent to Swedish Hockey League sponsors to collect data and to verify the study’s conceptual model and relationships. The response rate for the survey was 19.8%, that is, 122 completed questionnaires out of 616 sent. The respondents represented the most common industries in Sweden, but most of them belonged to the construction, repair, and electronics industries (18.0%), manufacturing and production industry (13.1%), and commerce industry (11.5%). Most sponsoring companies (30.3%) were categorized as medium-sized (50–249 employees). Most respondents (38.5%) had invested EUR 4300–15,000, whereas 11.5% had invested less than EUR 4300. Moreover, we found that most sponsors had been in their sponsorship relationships for more than 10 years (32.8%). Structural equation modeling (SEM) was used for the data analysis.

Findings: This study demonstrates that relationship commitment is an important driver of value creation in sponsorship relationships. Furthermore, the various forms of affective commitment and value-based commitment should not be considered merely components or forms but distinct types. Certainly, there is interaction between the two types, but sequentially in such a way that affective commitment is a prerequisite for value-based commitment. This means that a sponsor must have an emotional relationship with the sponsee in order to understand, perceive, and calculate the sponsorship relationship’s future business value in terms of profits and other benefits. This study also finds that value-based commitment is the most significant type of commitment in sponsorship relationships.

Research implications: The study demonstrates that shared values, trust, and affective commitment are fundamental conditions for value-based commitment. If the parties agree on how they should behave in the relationship, the rules and objectives that apply lead to the emergence of mutual trust, which in turn makes the parties want to continue the relationship for emotional reasons. But this is not enough for value creation; they must also see that there are future business benefits from the relationship. Therefore, the parties more or less explicitly make calculations. If the calculations indicate that the long-term benefits of the relationship outweigh the short-term sacrifices, they are prepared to invest in the relationship, and this may lead to value creation. In other words, there is both interplay and tension between shared values, trust, and affective commitment, on one hand, and value-based commitment, on the other. Another theoretical contribution is that previous research has considered the links between relationship commitment and value but has ignored the different types of commitment that play key roles in the value-creation process; this study has addressed that oversight. The study demonstrates that affective commitment and value-based commitment have different roles and meanings. Affective commitment indirectly affects value creation, while value-based commitment directly affects value creation. Affective commitment has the role of partial mediator, while value-based commitment has the role of full mediator. Furthermore, they differ in their basic characteristics: affective commitment is an emotional aspect, while value-based commitment is a calculative aspect.

Originality/value/contribution: Previous studies have not analyzed the relationship between relationship commitment and value creation. However, this study demonstrates that relationship commitment is an important driver of value creation in sponsorship relationships. Furthermore, most previous research argues that relationship commitment consists of various components or forms that interact in parallel with each other. However, this study demonstrates that the various forms of affective commitment and value-based commitment should not be considered merely components or forms but distinct types. Certainly, there is interaction between the two types, but sequentially in such a way that affective commitment is a prerequisite for value-based commitment. Furthermore, previous studies have consistently noted that affective commitment is the most important component, form, or type of relationship commitment. However, this study finds that value-based commitment is the most significant type of commitment in sponsorship relationships.     

Opening Local Retail Food Stores: A Real-Options Approach

A real-options approach was used, incorporating uncertainty and irreversibility of investments, to study the number of stores entering the Swedish retail food market during the period 1994–2002. It was found that uncertainty affected the entry-decision. Entry was less frequent in highly concentrated local retail food-markets characterized by a high degree of uncertainty, whereas higher profit opportunities seem to have increased the probability of entry.     

Mehrwert durch Transparenz kommunizieren

Die zunehmende Discountausbreitung fordert Hersteller und Detailh?ndler heraus, den Mehrwert ihrer Produkte besser aufzuzeigen. Es braucht Argumente jenseits des Preises. Stellt die Kommunikation transparenzf?rdernde Informationen zur Lieferkette der Produkte in den Vordergrund, werden bislang kaum evidente, aber aus Konsumentensicht entscheidende, Unterschiede aufgezeigt, die Konsumenten helfen, beim Einkauf nicht nur einseitig auf den Preis zu achten.     

How symmetrical assumptions advance strategic management research

We develop the case for symmetrical assumptions in strategic management theory. Assumptional symmetry obtains when assumptions made about certain actors and their interactions in one of the application domains of a theory are also made about this set of actors and their interactions in other application domains of the theory. We argue that assumptional symmetry leads to theoretical advancement by promoting the development of theory with greater falsifiability and stronger ontological grounding. Thus, strategic management theory may be advanced by systematically searching for asymmetrical assumptions in existing theory in order to identify the instances where new and useful insights can be derived from adopting symmetrical assumptions. Copyright © 2013 John Wiley & Sons, Ltd.     

Mind the gap: the role of HRM in creating,capturing and leveraging rare knowledge in hostile environments

Abstract

Multinational enterprises (MNEs) have increasingly entered markets in less developed regions of the world afflicted with weak institutions and political conflict. Some are characterised by ‘extreme’ cases of institutional voids and terrorism, creating a hostile environment for the organisation and its people. This in-depth qualitative study of a service company, a European telecommunications joint venture in Afghanistan, seeks to shed light and build theory on the human resource management (HRM) dimension of managerial learning and knowledge acquisition in hostile environments, as part of the MNE’s organisational learning process. Specifically, we investigate how knowledge gaps can be addressed through supportive HR practices, and how knowledge classified as ‘rare’ can be captured and leveraged through HR interventions such as debriefing. We stipulate that HR practices and interventions adapted to hostile environments, together with expatriate willingness to learn and share new knowledge, play a critical role in the creation, capturing and leveraging of rare knowledge for subsequent use by the MNE in other hostile locations. The study has implications for international HRM and organisational resilience, under the proposition that competitive advantage can be gained through exploitation of rare knowledge acquired in hostile environments.     

CO2-Stabilization May Be a 'No-Regrets' Policy

Restricting CO₂ emissions requires changing today's consumption pattern away from energy and emission intensive commodities towards cleaner goods. The cost of stabilizing CO₂ emissions at the 1990 level by the year 2000, say, as compared to a business-as-usual trend, is estimated by several researchers to be on the order of 1% of GNP. We will argue that the cost may be overestimated because of a too simple model describing the working of the economic system and the evaluation of welfare. We demonstrate that by expanding a model to include the actual tax system and negative externalities, the cost to present generations from restricting emissions by a CO₂ tax may be negative. That is, some reduction may actually correspond to a 'no-regrets' policy. The reasons are inefficiencies in today's tax system and non-optimal handling of negative externalities. Our analysis suggests that a CO₂ tax and reduced emissions will lessen such inefficiencies.