Dysfunctional Customer Behavior Severity: An Empirical Examination

Although many studies assume that customers monotonically act in both a functional and a good-mannered way during exchange, considerable anecdotal evidence suggests that customers routinely behave negatively and often disrupt otherwise functional encounters. However, to date, rigorous empirical evidence of this phenomenon is lacking. This study synthesizes extant literature from a broad range of areas and advances two alternative conceptions of the factors associated with dysfunctional customer behavior severity. That is, after controlling for a variety of factors, the authors suggest that psychological obstructionism, disaffection with service, and servicescape variables are significantly associated with the severity of deliberate dysfunctional customer acts. The results provide insights for researchers interested in the darker side of service dynamics and generate useful implications for services practitioners charged with reducing the severity and the frequency of episodes of deviant customer behavior.     

Foreign direct investment via M&A and domestic entrepreneurship: blessing or curse?

There are conflicting predictions in the literature about the relationship between FDI and entrepreneurship. This paper explores how foreign direct investment (FDI) inflows, measured by lagged cross-border mergers and acquisitions (M&A), affect entrepreneurial entry in the host economy. We have constructed a micro-panel of more than two thousand individuals in each of seventy countries, 2000–2009, linked to FDI by matching sectors. We find the relationship between FDI inflows and domestic entrepreneurship to be negative across all economies. This negative effect is much more pronounced in developed than developing economies and is also identified within industries, notably in manufacturing. Policies to encourage FDI via M&A need to consider how to counteract the prevailing adverse effect on domestic entrepreneurship.     

Sustainable development and profit? A sensemaking perspective on hybrid organisations and their founders

This article explores the sensemaking process of the individual entrepreneurs behind hybrid organisations that seek to both initiate environmental/social change and also generate profit. The work sheds light on how founders of six such organisations set-up initially in between 1978 and 1991 make sense of themselves and their firm and how this impacts on their business strategies. We examine the life-stories of these individuals to illuminate their perspectives on their experiences, motives and values. We suggest that both ambition and altruism motivate individuals to become involved in these firms, echoing the paradox of firms seeking both social change and value creation. The work enhances our understanding of both sensemaking theory and success factors for hybrid organisations and strategizing more broadly.     

Product—Market Choices and Growth of New Businesses

The relationship between product–market strategies and the growth of new firms is incompletely understood. The lack of understanding reflects the absence of a conceptual framework that would explain why certain product–market strategies achieve specified goals more effectively than do others. Prior research links product and market strategy to business growth, but does not clearly separate product line choices from market choices, and provides little guidance with respect to the sequence in which product and market changes should be made. Richard Cardozo, Karen McLaughlin, Brian Harmon, Paul Reynolds, and Brenda Miller propose a "wave" model of product–market choice, which yields hypotheses they evaluate with data from a subsample of 120 firms drawn from a representative sample of new businesses. Results yield preliminary guidelines for product–market strategy for managers of fledgling businesses.     

Stochastic innovation and product market organization

Summary This paper analyzes how different types of product market organization affect firms' R&D investments in a stochastic innovation framework. Product market competition determines payoffs to successful and unsuccessful firms. Restrictions on the research project success probability distribution are identified that yield an invariance result for expenditure per R&D project. The impact of the number of firms (n) on the amount of market R&D is shown to be sensitive to product market organization. For a major process innovation, firms undertake more R&D projects under Cournot product market competition than under Bertrand competition, forn sufficiently large. A numerical example is used to illustrate welfare tradeoffs.Tom Lyon, Herman Quirmbach, Ferenc Szidarovszky, Mark Walker and two anonymous referees gave us helpful comments and suggestions on prior versions of this paper. Lucy Atkinson provided expert research assistance on numerical computations. Special thanks to Ted Bergstrom who gave us valuable suggestions about the first proposition.