Sustainability and business-to-business marketing: A framework and implications

Researchers in several business disciplines have convincingly argued that environmentally responsible strategies can contribute to competitive advantage and superior financial performance. While debates on ecological conservation and environmental practices within marketing have raged for over three decades, much of the focus has been on identifying and targeting the environmentally-conscious consumer. Less attention has been given to marketing's role in a green supply chain and its interface with environmentally-friendly manufacturing and operations. We integrate disparate streams of research and develop a broader framework to understand the appropriate role and focus of business-to-business marketing in the supply chain for achieving environmental sustainability objectives. We identify three major strategies - the reduction of surplus supply of products, reduction of reverse supply, and internal marketing - where marketing's role in environmental sustainability is crucial for achieving superior competitive advantage and financial performance.     

Cost-effectiveness of pembrolizumab versus brentuximab vedotin for patients with relapsed or refractory classical Hodgkin’s lymphoma: a United States payer perspective

Aims: Patients with classical Hodgkin’s lymphoma (cHL) who have relapsed after or are ineligible for autologous stem cell transplantation (ASCT) have limited treatment options and generally a poor prognosis. Pembrolizumab was recently approved in the US for the treatment of such patients having demonstrated clinical benefit and tolerability in relapsed/refractory cHL; however, the cost-effectiveness of pembrolizumab in this population is currently unknown.

Materials and methods: A three-state Markov model (progression-free [PF], progressed disease, and death) was developed to assess the cost-effectiveness of pembrolizumab (200?mg) vs brentuximab vedotin (BV; 1.8?mg/kg) in patients with relapsed/refractory cHL after ASCT who have not received BV post-ASCT over a 20-year time horizon from a US payer perspective. PF survival was modeled using a naïve indirect treatment comparison of data from KEYNOTE-087 and the SG035-003 trial. Post-progression survival was modeled using data from published literature. Costs (drug acquisition and administration, disease management, subsequent treatment, and adverse events) and outcomes were discounted at an annual rate of 3.0%. Uncertainty surrounding cost-effectiveness was assessed via probabilistic, deterministic, and scenario analyses.

Results: In the base case, pembrolizumab was predicted to yield an additional 0.574 life-years (LYs) and 0.500 quality-adjusted life-years (QALYs) vs BV and cost savings of $63,278. Drug acquisition costs were the biggest driver of incremental costs between strategies. Pembrolizumab had a 99.6% probability of being cost-effective compared with BV at a willingness-to-pay threshold of $20,000/QALY and dominated BV in all scenarios tested.

Limitations: The analysis was subject to potential bias due to the use of a naïve indirect treatment comparison and, given the current immaturity of OS in KEYNOTE-087, PPS was assumed equivalent across both treatments.

Conclusion: Pembrolizumab is a cost-effective alternative to BV for patients with relapsed/refractory cHL after ASCT.     

The impact of the product to service shift in industrial markets and the evolution of the sales organization

Marketing is undergoing a paradigmatic shift that involves a change in focus from the exchange of goods, which are usually manufactured output, to providing a service, which is fundamental to economic exchange (Vargo & Lusch 2004).Evidenced by three decades of marketing transformation in B2B (business-to-business) sales organizations, this paper examines the evolution of sales organizations as a result of the shift from product- to service-focused commerce. This paper also identifies areas of future research and practice in marketing. Findings suggest that the traditional product-focused sales organization will evolve in two directions. First, enhanced use of technology will reduce some traditional sales functions and even face-to-face contact. Second, customers who are important to marketers will experience improvements in the level of customer contact—leading to growth in customer-focused sales organizations and an increase in global account management teams. Changes in sales organizations will also lead to changes in the selection, training, and recruitment of salespeople as well as their roles.Direction for future research and managerial implications are highlighted throughout the paper as are changes likely to occur in sales organizations.     

Designing management control in hybrid organizations: The role of path creation and morphogenesis

Path-creating change in organizational form is proposed as an important element in achieving management control in hybrid organizations. Using case examples from large-scale projects in the architectural, engineering, and construction industry, as well as from joint ventures in the oil and gas industry, we highlight the role of mindfully synthesizing new organizational forms in the design of management control systems. A series of paradoxes is disclosed, in which attempts to achieve control through mimetic adoption of established management control techniques lead to reduced control. On the other hand, path-creating deviations from institutionalized practices, resulted in improved project and venture performance. It has been argued that the design of inter-organizational management control systems seeks to enable organizations to compete for resources and efficiency, and also to obtain institutional legitimacy. Institutional theory proposes that isomorphism permits organizations to obtain that legitimacy and explains their design. In this paper, we propose that path creation and morphogenesis, which deviates from isomorphism, is an additional consideration in explaining management control system design.     

Subordinate board structures

The board of directors is a flat governance structure where each director has an equal vote in determining the collective actions taken by the group. Yet, some boards choose to delegate authority for specific tasks to numerous committees, while others choose to create relatively few subcommittees of the board. We investigate the determinants of subordinate board structures, exploring both their benefits and costs. Using a sample of the S&P 1500 we find that subordinate board structures are positively related to board size and the proportion of outside directors, even after controlling firm characteristics such as complexity and ownership structure. Further tests indicate that these board structures can offset the negative associations that board size and the proportion of outsiders can have with firm performance. Yet, in firms with relatively small or insider oriented boards, where co-ordination problems among directors or social loafing may be less pronounced, we find that subordinate board structures are negatively related to firm performance. Categorizing committees as either monitoring or advisory, we find that both types of committees appear related to firm performance. Taken as whole, these results are consistent with the idea that subordinate board structures can be a costly remedy to alleviate problems that arise with larger, more outsider dominated boards.     

Stochastic reaction functions in 2 × 2 duopoly

A reaction function is a contingency plan that specifies how a firm will react to a move made by its competition. This includes the classical Cournot reaction function. Our stochastic reaction functions are the rules by which firms revise their prior distributions on their competitors' sets of actions. The asymptotic stability of a class of stochastic reaction functions is examined in this paper. It is shown that there exists a class of reaction functions that are either asymptotically stable in the Cournot-Nash sense or asymptotically Pareto optimal. Our analysis does not rely on differentiability and other assumptions traditionally imposed in the literature.