Regulated Firms with Transboundary Pollution: Does International Competition Improve Efficiency?

We consider a model of strategic trade and environmental policies with transboundary pollution. A regulated monopoly produces in each country and emits pollution. Under complete information, opening borders leads to a reallocation of the production from the large country to the small one. Total production increases, leading to an increase in the total level of pollution. The creation of a common market sometimes leads to a deterioration of total welfare. Under asymmetric information, the international competition generated by the common market decreases the informational rents of the firms, thereby reinforcing the potential gain to open markets to international competition.     

Towards a better understanding of mobile banking: the impact of customer experience on trust and commitment

In the current context of ubiquitous connectedness through portable mobile devices and services, it is important to comprehend more fully the nature of consumer/bank interactions and relationships. At the same time, firms in the service sector are trying to provide customers with impactful positive experiences. This article examines the impact of mobile banking experience on trust and commitment based on the customer experience dimensions defined by Schmitt and expanded to include the negative aspect of the affective dimension. A total of 396 panellists of a recognized Canadian research firm responded to a self-administered online questionnaire. Findings demonstrate that the cognitive and negative affective dimensions of mobile experience impact trust, whereas the positive affective/sensory dimension influences commitment. The behavioural and social dimensions do not have significant impacts. This study enriches the theoretical corpus of knowledge in customer experience, relationship marketing and m-banking literature, lending practical implications for mobile services managers. Financial institutions, for example, should offer sensory mobile applications designed to appeal to the eye or to the touch (positive affective/sensory dimension), provide tools and information intended to arouse user curiosity and provoke reflection (cognitive dimension), while avoiding negative experiences which can lead to damaging feelings/emotions such as disappointment and anger (negative affective dimension).     

Impact of website characteristics on relationship quality: a comparison of banks financial cooperatives

This study seeks to investigate differences exhibited by bank customers and members of financial cooperatives respecting website characteristics (website design, convenience, information quality, ease of use and security/confidentiality) and their impact on online relationship quality (composed of trust, commitment and satisfaction). An online survey was conducted with 476 banking sector customers (banks and financial cooperatives), followed by a confirmatory factors analysis and multigroup analysis using EQS 6.2 software. Results evidence a significant difference in terms of website design and security/confidentiality. The impact of these variables on relationship quality proves significantly higher in the case of banks. This study submits that web strategies used by banks and financial cooperatives to develop online relationship quality may vary based on the type of organization.     

Product Innovation Processes in Small Firms: Combining Entrepreneurial Effectuation and Managerial Causation

This article reports a multimethod study of product innovation processes in small manufacturing firms. Prior studies found that small firms do not deploy the formalized processes identified as best practice for the management of new product development (NPD) in large firms. To explicate small firms' product innovation, this study uses effectuation theory, which emerged from entrepreneurship research. Effectuation theory discerns two logics of decision‐making: causation, assuming that means are selected to attain goals; and effectuation, assuming that goals are created based upon available means. The study used a process research approach, investigating product innovation trajectories in five small firms across 352 total events. Quantitative analyses revealed early effectuation logic, which increasingly turned toward causation logic over time. Further qualitative analyses confirmed the use of both logics, with effectual logic rendering product innovation resource‐driven, stepwise, and open‐ended, and with causal logic used especially in later stages to set objectives and to plan activities and invest resources to attain objectives. Because the application of effectuation logic differentiates the small firm approaches from mainstream NPD best practices, this study examined how small firms' product innovation processes deployed effectuation logic in further detail. The small firms: (1) made creative use of existing resources; (2) scoped innovations to be realizable with available resources; (3) used external resources whenever and wherever these became available; (4) prioritized existing business over product innovation projects; (5) used loose project planning; (6) worked in steps toward tangible outcomes; (7) iterated the generation, selection, and modification of goals and ideas; and (8) relied on their own customer knowledge and market probing, rather than early market research. Using effectuation theory thus helps us understand how small firm product innovation both resembles and differs from NPD best practices observed in larger firms. Because the combination of effectual and causal principles leverages small firm characteristics and resources, this article concludes that product innovation research should more explicitly differentiate between firms of different sizes, rather than prescribing large firm best practices to small firms.     

Customers' participation in product development through crowdsourcing: Issues and implications

This paper focuses on customers' participation in a product development process through crowdsourcing practices. Results from five case studies of consumer goods companies suggest that the implementation of crowdsourcing operations affects the components of an existing business model and requires rethinking the marketing function. Moreover, despite some organizational constraints and fears, crowdsourcing generates a win–win relationship, creating value for both firms and customers. However, the findings reveal two negative consumer reactions to crowdsourcing practices, i.e., feelings of exploitation and being cheated, that may jeopardize their success. The results suggest the need to establish an open business model based on crowdsourcing.     

The Formation of Fairness Perceptions in the Cooperation between Entrepreneurs and Universities

For entrepreneurs who intend to exploit university‐owned technologies, a cooperative relationship with the university is critical. This study aims to better understand this entrepreneur–university cooperation. A key factor influencing the quality of this cooperation is the fairness perception of the entrepreneur. However, little is known about how these fairness perceptions are formed in this context. Therefore, to increase insight in entrepreneur–university cooperation, this study explores the formation of fairness perceptions by entrepreneurs who cooperate with universities (in so‐called university spin‐offs). This study assesses how the rules these entrepreneurs employ to form fairness perceptions differ from fairness rules that have been established in previous studies on organizational justice. The results show that, in addition to established fairness rules, there are also fairness rules that are more specific to this entrepreneurial setting. These specific rules complement the established fairness rules to provide a more comprehensive understanding of the formation of fairness perceptions by entrepreneurs cooperating with a university. Moreover, this study explores to what extent different entrepreneurs form fairness perceptions differently and finds that both experience and relational capital of the entrepreneurs within the university are two key sources of heterogeneity. Overall, this study contributes to the literature by conceptualizing how entrepreneurs form fairness perceptions in cooperating with universities and how this extends established wisdom in organizational justice theory. Moreover, the rules identified in this study provide clues for entrepreneurs who wish to improve their collaboration with universities, and may also apply to the relationships between entrepreneurs and large corporations and between entrepreneurs and venture capitalists.     

Examining emotions linked to live chat services: The role of e-service quality and impact on word of mouth

The purpose of this article is twofold: (1) to investigate the emotions experienced by banking customers when using live chat services and their impact on positive word-of-mouth intentions; and, (2) to identify which dimensions of e-service quality (accessibility, customer service and support, perceived security/privacy and design) impact these emotions. A survey was conducted with 682 members of a Web-based panel. Findings demonstrate that emotions, both positive and negative, significantly impact word of mouth. Results further reveal that customer service and support followed by design of live chat services mostly influence consumer emotions. On a practical level, the recommendations provided will improve consumer experience and encourage consumers to use live chat services. This is all the more important since such services are now part of the promotion and contribution of a sustainable mode of consumption that is accessible to all.

     

‘There will be no law,or people to protect us’: Irregular Southeast Asian seasonal workers in Taiwan before and during the pandemic

This paper investigates the everyday lived realities of Southeast Asian migrant workers who left the formal sector of the labour market and entered the informal agricultural sector before and during the COVID-19 pandemic in Taiwan. Drawing on observations of migrants' daily lives and farm work and 19 in-depth interviews, it delves into migrants' subjective experiences of vulnerability, paternalism, exploitation, and control at work due to a lack of legal protection and the illegality of their employment. Although the literature has identified a link between ‘running away’ from formal employment and seeking freedom, this research suggests a continuum between experiences of work in the formal and informal economic sectors. The paper sheds new light on mobility, work, illegality, and informality and how these have constantly shaped ‘runaway’ workers' subjective experiences of freedom and unfreedom during the pandemic.