Individual entrepreneurial orientation,value congruence,and individual outcomes: Does the institutional entrepreneurial environment matter?

Although entrepreneurial orientation (EO) at the firm-level is often conceptualized as a direct antecedent of performance, the findings of previous studies lending support to this association are inconsistent. Consequently, drawing on the attraction/selection/attrition and institutional theories and employing the moderated mediation analysis approach, this study conceptualizes the individual perception of a firm's EO or individual entrepreneurial orientation (IEO). It examines the direct and indirect effects of IEO on individual outcomes measured in terms of performance expectation, job involvement, and organizational commitment. More specifically, it examines whether these effects are mediated by value congruence and moderated by the institutional entrepreneurial environment to understand these inconsistent findings better. Using a sample of 398 environmentally concerned small and medium-sized enterprises (SMEs) in South Korea, partial least squares structural equation modeling (PLS-SEM), and the PROCESS macro were employed to analyzed the research model. This study finds that value congruence mediates the association between IEO and performance expectation, job involvement, and organizational commitment. The moderated mediation model analysis also suggests that the mediating role of value congruence increases as the level of the institutional entrepreneurial environment increases. These findings offer useful theoretical and managerial implications of the IEO on individual outcomes.     

What you touch,touches you: The influence of haptic attributes on consumer product impressions

The present research builds upon the touch literature to show that the salience of haptic product attributes related to product surface texture (smooth, rough) and weight (light weight, heavy weight) influence consumer product impressions. We propose that haptic cue congruity across texture and weight drive consumer product impressions depending on a consumer's need for touch (NFT). We show that high autotelic‐NFT consumers who touch for sensory pleasure enjoyed the incongruity between smooth texture and heavy weight haptic cues, and consequently showed favorable evaluations towards exciting brands. In contrast, low autotelic‐NFT consumers prefer the anticipated match between smooth texture and light weight haptic cues, which conformed to their expectation about the nature of a sophisticated brand personality. Further, we show how the interactive effect of haptic attributes and a consumer's autotelic‐NFT on willingness to purchase is mediated by product personality. Implications for theory and practice are discussed.     

THE EFFECTS OF OVERPAYMENT AND FORM OF FINANCING ON BIDDER RETURNS IN MERGERS AND TENDER OFFERS

In this paper I examine the effects of overpayment and form of financing on bidding firms' stock returns and the determinants of the form of financing in mergers and tender offers. First, I find that in the 1980s potential overpayments to target shareholders and the form of financing are important for explaining cross-sectional differences in bidding firms' returns upon the announcement of mergers or tender offers. Second, I find that in the 1980s cash offers were likely to be chosen by cash-rich firms relative to their industry, and stock exchange offers were likely to be chosen by normal cash-generating firms relative to their industry. The latter finding is consistent with the pecking order hypothesis and casts doubt on recent signaling explanations of the form of financing.     

Empirical risk aversion functions-estimates and assessment of their reliability

In this paper, we examine investor's risk preferences implied by option prices. In order to derive these preferences, we specify the functional form of a pricing kernel and then shift its parameters until realized returns are best explained by the subjective probability density function, which consists of the ratio of the risk-neutral probability density function and the pricing kernel. We examine, alternatively, pricing kernels of power, exponential, and higher order polynomial forms. Using S&P 500 index options, we find surprising evidence of risk neutrality, instead of risk aversion, in both the power and exponential cases. When extending the underlying assumption on the specification of the pricing kernel to one of higher order polynomial functions, we obtain functions exhibiting ‘monotonically decreasing’ relative risk aversion (DRRA) and anomalous ‘inverted U-shaped’ relative risk aversion. We find, however, that only the DRRA function is robust to variation in sample characteristics, and is statistically significant. Finally, we also find that most of our empirical results are consistent, even when taking into account market imperfections such as illiquidity.     

Understanding in‐house transactions in the real estate brokerage industry

About 20% of residential real estate transactions in North America are in‐house transactions, for which buyers and sellers are represented by the same brokerage. We examine to what extent in‐house transactions are explained by agents' strategic incentives as opposed to matching efficiency. Using home transaction data, we find that agents are more likely to promote internal listings when they are financially rewarded and such effect becomes weaker when consumers are more aware of agents' incentives. We further develop a structural model and find that about one third of in‐house transactions are explained by agents' strategic promotion, causing significant utility loss for home buyers.     

Korean unification prospects: an assessment through the BDN-model

The debate on the possible unification of South Korea and North Korea has often been assessed from the economic perspective, which is insufficient since unification entails not only the integration of two economies but political, social and technological integration of two territories. Using the box negotiation diagram model, this paper expands the scope of the study on South Korea and North Korea unification through a multidisciplinary approach encompassing the political, economic, social and technological perspectives. Given the huge imbalanced points of unification drawn from our analysis, we observed more divergence than convergence hence, hinging the possibility of unification of serious negotiation.     

Editors’ introduction transitional economies: Progress and pitfalls

Many Asian countries are undergoing transition from centrally planned to market-oriented economies. The People's Republic of China (PRC) and Viet Nam have been going through this transition since the 1980s, while Mongolia and the former Soviet republics of Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan began their transition in the 1990s with the dissolution of the Soviet Union in 1991. On the other hand, Cambodia, the Lao People's Democratic Republic, and Myanmar, while they have begun reforms, are still in the early stages of transition. North Korea has probably made the least progress in this regard. This Special Issue on Transitional Economies aims to provide valuable insights for Asia's developing countries still in transition and to provide them with policy recommendations for avoiding the pitfalls of transition experienced in the 1990s.     

Airline Travelers' Causal Attribution of Service Failure and Its Impact on Trust and Loyalty Formation: The Moderating Role of Corporate Social Responsibility

This study examines airline travelers' causal attribution (stability and controllability) and its impact on trust and loyalty formation and investigates the moderating role of corporate social responsibility (CSR) in this process. Based on a literature review, theoretical relationships between stability, controllability, CSR, trust, and loyalty were derived, and the moderating effects of CSR on relationships between stability/controllability and trust/loyalty were examined. To empirically test these theoretical relationships, quantitative data were collected from 271 airline passengers who experienced a service failure in the past year. The results provide support for effects of stability and controllability on trust as well as the effect of stability on loyalty. In addition, the perception of CSR had positive effects on trust and loyalty. Finally, a favorable CSR perception weakened the negative effects of a service failure on trust and loyalty, particularly when the failure was attributed to a stable cause. The results highlight the important role of CSR in service failure situations and have important implications for airline managers.     

The moderating effect of self-esteem on consumer responses to global positioning in advertising

The study investigates consumers' responses to global positioning in advertising from the perspective of self. It is suggested that consumers' attitudes toward the brand advertised through global positioning are influenced by their ideal selves and cosmopolitan orientations and these influences are moderated by one's self-esteem level. Study 1 shows that attitudes toward the globally positioned brand are more positive for those with ideal selves that are more congruent with personal traits associated with globally positioned brands, but only for those with high self-esteem. Interview results from study 2 suggest that low self-esteem informants make use of the global brands associated with ‘Western’ as a means of signaling their social selves in order to obtain social approval and that high self-esteem informants attend to ad content, whether the ad employs global or local positioning.