High‐Reputation Firms and Their Differential Acquisition Behaviors

Research summary: E merging reputation research suggests that high‐reputation firms will act to maintain their reputations in the face of high expectations. Yet, this research remains unclear on how high‐reputation firms do so. We advance this research by exploring three questions related to high‐reputation firms' differential acquisition behaviors: Do high‐reputation firms make more acquisitions than similar firms without this distinction? What kind of acquisitions do they make? How do investors react to high‐reputation firms' differential acquisition behaviors? We find that high‐reputation firms make more acquisitions and more unrelated acquisitions than other firms. Yet, we also find that investors bid down high‐reputation firms' stock more than other firms' in response to acquisition announcements, suggesting that investors are skeptical of how high‐reputation firms maintain their reputations . Managerial summary: W e know that high‐reputation firms wish to maintain their elite standing in the face of high‐market expectations, but we know little about how they do so. We explore this puzzle by investigating how reputation maintenance influences high‐reputation firms' acquisition behaviors. We classify high‐reputation firms are those firms that make Fortune's M ost A dmired annual list, and we find that high‐reputation firms make more acquisitions and more unrelated ones than other firms. Surprisingly, we also find that the market tends to react negatively to these acquisitions. Thus, managers may want to reconsider their strategy of making acquisitions as a means to maintain their firms' high reputations . Copyright © 2017 John Wiley & Sons, Ltd.     

How digital user innovators become entrepreneurs: a sociomaterial analysis

ABSTRACT

Digital entrepreneurship has received growing interest from academics and practitioners. Another form of entrepreneurship in which interest has been greatly boosted, thanks to digital technologies, is user entrepreneurship. Drawing on the sociomaterial perspective of digital entrepreneurship, the present article contributes to this body of knowledge by exploring how user entrepreneurs frame and implement the process to create new firms to commercialise their own digital innovations. Our qualitative study reports a single case study about the process of digital entrepreneurship implemented by a patient innovator that launched a new firm to commercialise his healthcare innovative solution. Various theoretical propositions about the sociomateriality of the entrepreneurial process of digital user innovators are offered.     

Ecologies of user knowledge: linking user insight in organisations to specific projects

Failure to meet user preferences continues to prevail as a major reason for innovation project failure despite wide arrays of methods and methodologies available for addressing it. The user research and user insight availability problem appears to have become replaced by a method and insight adequacy problem. This calls for the means to better address how organisations and project teams know their users, and how this knowing is intertwined in other organisational processes. A research challenge lies in developing representational templates that are both specific enough for addressing explicit and implicit user insight and encompassing enough for linking these to the relevant project and organisational issues. We develop such a representational template based on ecologies of knowledge mapping and discuss its potential through applying it to a comparative study on two social media web service projects of the Finnish National Broadcasting Company.     

Multivariate realized volatility forecasts of agricultural commodity futures

We forecast the multivariate realized volatility of agricultural commodity futures by constructing multivariate heterogeneous autoregressive (MHAR) models with flexible heteroscedastic error structures that allow for non-Gaussian distribution, stochastic volatility, and heteroscedastic and serial dependence. We evaluate the forecast performances of various models based on both statistical and economic criteria. The in-sample and out-of-sample results suggest that the proposed MHAR models allowing for flexible heteroscedastic covariance structures outperform the benchmark MHAR models. In addition, the proposed Bayesian MHAR models allowing for t innovations improve both in-sample and out-of-sample forecast performance of the corresponding MHAR models with Gaussian innovations.     

Red flags and rave reviews: Explaining too-good-to-be-true crowdfunding campaigns

Crowdfunding platforms enable entrepreneurs to bring to life ideas that may otherwise have remained unrealized. When crowdfunding campaigns go well, campaigners are able to fulfill their vision, funders’ engagement is rewarded, and society gains access to a range of new offerings. But some recent high-profile medical-technology campaigns have failed to deliver their promised rewards despite reaching and at times far exceeding their funding goals. The objectives of this article are to shed light on why donors fund campaigns that turn out to be too good to be true and to examine how this engagement reduces trust in crowdfunding. To this end, I explore the role of product creativity as a dual mechanism for both funding success and postfunding delivery failure. Product creativity is typically associated with positive crowdfunding outcomes. But in the context of medical-technology campaigns, product creativity may make community members more attracted to campaigns that are less likely to deliver on their campaign promises. This phenomenon then increases the likelihood that the campaign will reduce trust in crowdfunding, hurting donors, the focal venture, and future campaigners. I offer practical implications for crowdfunding platforms, campaigners, and supporters interested in learning more about the pitfalls associated with initially successful crowdfunding campaigns.     

The impact of user perceptions of AR on purchase intention of location-based AR navigation systems

As new AR supported products such as location-based AR navigation systems become available in the consumer market, it is particularly important to understand how user perceptions of AR can be optimized to enhance customer satisfaction and increase purchase intention of these products. However, little research has addressed this gap in the literature so far. Therefore, this study developed a theoretical framework including user perceptions of AR, experience, satisfaction and purchase intention employing experience economy theory. This study's main theoretical contribution is that three user perceptions of AR – spatial ability (sensory domain), sense of presence (feeling domain), and conceptual understanding (cognitive domain) – were found to be key antecedents of consumers' intention to purchase location-based AR navigation systems through the mediation of educational, entertainment, aesthetic, and escape experience. The findings have important implications for future development of location-based AR systems.     

User preference for an IoT healthcare application for lifestyle disease management

The current convergence between information and communications technology (ICT) and medical fields reflects a shared vision of seamlessly connected sensors and devices that can improve healthcare services, and an expectation of the emergence of Internet of Things (IoT) healthcare. This study provides a relevant guide for IoT healthcare service developers, from the perspective of the technology user. Particularly, we propose critical factors that will potentially influence users’ acceptance of an IoT lifestyle disease management service. Information on the profession of service providers, task scope, devices, expert support, and a range of shared personal medical data were suggested as important attributes. Conjoint analysis was adopted to estimate the relative importance of proposed attributes and preferences for service specifications. Data and medical history were collected from 435 respondents. The model was analyzed and compared between the groups with different medical histories, respectively. The results showed that potential users, in general, require a safe and trustworthy healthcare service, rather than greater functionality, while medical history has a considerable influence on the perceived importance of the proposed attributes.     

“New and old”: Consumer evaluations of co-branding between new brands and Chinese time-honored brands

Nowadays, rejuvenation of Chinese time-honored brands, a symbol of Chinese traditional culture, is manifested in their co-branding with new brands. With focus on sincerity and excitement, two fundamental dimensions of brand personality, the authors explore this co-branding strategy which remains unexplored by the extant literature. Based on the integration of brand personality and Stereotype Content Model, a new mechanism is constructed from the perspective of consumers, with brand admiration being the underlying mechanism, as well as product category—hedonic vs. utilitarian—being a boundary condition. Through three experimental studies, the results show that the exciting (vs. sincere) personality of new brands increases consumers’ admiration for both allied brands, which in turn enhances co-branding evaluations, and that the advantage of the exciting personality holds for the hedonic co-branded product, but disappears for the utilitarian one. The research contributes to the co-branding literature and provides implications for brand partner selection and co-branded product design.     

The role of blockchain-enabled traceability,task technology fit,and user self-efficacy in mobile food delivery applications

The working pattern of the food industry has entirely changed with the emergence of mobile food delivery apps (MFDAs), which deliver an innovative method to interact with and offer high-quality services to customers. This study pinpoints the imperative factors affecting the customer's attitude and continued intention in light of the task technology fit (TTF) model. The required data were collected from MFDA users and analyzed by the structural equation modeling technique via Amos-23 and SPSS-22. The results confirm that customer rating, ordering review, food tracking, navigational design, and user self-efficacy positively impact TTF. Further, self-efficacy positively moderates the relationship between visual design and TTF, navigational design and TTF, and food tracking and TTF. Moreover, TTF positively influences attitude and continued intention, and in turn, attitude positively influences continued intention. Additionally, blockchain technology (BT) enabled traceability positively moderates the relationship between TTF, attitudes, and continued intention to use MFDAs. The developers of MFDAs should consider how customers perceive BT-enabled traceability and take steps to embrace it to increase customer trust in MFDAs. Furthermore, the theoretical and managerial applications are explained in detail so that developers can offer what MFDA users need.