Debt maturity and firm productivity—The role of intangibles

Does the maturity of debt matter for productivity? Using data on Italian firms from 1997 to 2015, we study the relationship among debt maturity, productivity, and firm characteristics. We find that productivity is positively associated with short-term debt and negatively associated with long-term debt. This result supports the hypothesis that the less intense monitoring of firm performance and fewer liquidation fears stemming from the long maturity of debt causes a moral hazard, while short-term debt serves as a disciplinary device to improve firm performance in the short run. This effect is evident in small- and medium-sized enterprises and old firms. In contrast, large firms can utilize long-term financing to improve productivity through long-term investments. Firms improve productivity by purchasing intangible assets financed by short-term debt.     

Managing socio-political risk at the subnational level: Lessons from MNE subsidiaries in Indonesia

Within emerging markets, institutional conditions vary significantly at both the country and subnational levels. Although the extant literature recognises the types of risk faced by multinational enterprises (MNEs) in emerging markets, it has hitherto paid scarce attention to explaining how MNEs manage such risk at the subnational level. Reporting on four case studies from Indonesia, we outline how MNEs ensure their success by maintaining active relationships with a variety of non-market actors—including opinion leaders, government officials, and communities at the subnational level. In our study, we developed a conceptual framework, showcasing how MNEs can manage socio-political risk within heterogeneous institutional settings.     

The impact of customer-generated evaluation information on sales in online platform-based markets

As the online platform-based market expands, research into the impact of consumer-accessible information in this market on performance has received significant attention in recent years. In this study, we focus on customer-generated evaluation information (CGEI). The purpose of this study is to demonstrate the effect of CGEI—both quantitative (i.e., star rating, star rating volume) and qualitative (i.e., customer review content) aspects—on actual sales in an online platform-based market. We analyze the regression of quantitative GCEI on sales and for qualitative GCEI we apply the Latent Dirichlet Allocation (LDA) topic modeling. We discover that star ratings do not always lead to increased sales, implying that star ratings and sales have an inverted U-shaped relationship. Furthermore, the results demonstrate that star rating volume has a positive effect on sales. We reveal that the review contents of product quality and added value have a positive effect on sales, whereas those of seller service have no effect on sales. This study provides some insight into how customer-generated information can increase actual sales in online platform-based markets.     

Rethinking value co-creation and loyalty in virtual travel communities: How and when they develop

For marketers of virtual travel communities (VTCs), a vital issue is to understand how to maintain consumer stickiness and loyalty. Although existing studies have tried to explore this issue, researchers have not given detailed and specific answers from the value co-creation theoretic lens. Therefore, the present paper aims to bridge this research gap by investigating the relationship among consumer trust in VTCs, consumer co-creation behaviors and their loyalty. The moderating impact of community service quality (CSQ) on loyalty is also explored. Data from a two-wave survey were collected from 214 active users in a Chinese VTC (Mafengwo) and then analyzed using the ordinary least squares (OLS) technique with STATA 13. Results indicated that (1) consumer trust positively impacts on two dimensions of value co-creation behavior, namely, breadth participation and depth participation. (2) Depth participation is more conducive to cultivating both attitudinal and behavioral loyalty, while breadth participation has an inverted U-shaped influence on behavioral loyalty. (3) CSQ positively moderates the relationship between depth participation and attitudinal loyalty. But after controlling for the effect of attitudinal loyalty on behavioral loyalty, this study found that CSQ negatively moderates the relationship between depth participation and behavioral loyalty. This paper developed a comprehensive framework involving antecedent and consequence of consumer co-creation behavior and showed the importance of CSQ as a key boundary condition, enriching the existing VTC and consumer loyalty research from the perspective of value co-creation and trust theory. Corresponding practical implications and limitations are also discussed.