Yi-Chi Hsiao, Cheng-Hsi Liu and Chun-Ping Yeh
The purpose of this study is to scrutinize the relationship between the founder’s control level over the startup and the startup’s board size on fundraising efficiency, in…
Abstract
Purpose
The purpose of this study is to scrutinize the relationship between the founder’s control level over the startup and the startup’s board size on fundraising efficiency, in addition to examining how these factors are influenced by different resource combinations that the startup attracts.
Design/methodology/approach
A sample of 1356 firm-year observations is collected from both the startup database of Business Next Media Corp. in Taiwan and the Company Registration and Business Registration Database of Taiwan’s Ministry of Economic Affairs’ Department of Commerce. The panel data analytic approach with fixed effect is used for hypothesis testing.
Findings
The founder’s shareholding negatively correlates with fundraising efficiency; such a negative relationship can be alleviated by incorporating foreign investors. The board size positively correlates with fundraising efficiency; such a positive relationship can be mitigated by the inclusion of external corporate directors.
Originality/value
While a conventional understanding posits that startups with diverse, multiplex and symmetrical boards can rapidly construct a diverse alliance portfolio, henceforth always being beneficial to growth, this research challenges this notion by probing the possible adverse effects of having an excessive number of outside corporate directors on a startup’s fundraising efficiency.
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Cheng‐Hsi Fang, Tom M.Y. Lin, Fangyi Liu and Yu Hsiang Lin
Strong evidence suggests that word‐of‐mouth (WOM) communication varies in its influence according to product type; however, empirical research remains deficient. The purpose of…
Abstract
Purpose
Strong evidence suggests that word‐of‐mouth (WOM) communication varies in its influence according to product type; however, empirical research remains deficient. The purpose of this paper is to propose a procedural model to examine the influence of product type on both the effect and spread of related WOM information at the same time.
Design/methodology/approach
Using a self‐administered questionnaire, a sample of 895 consumers across 16 different products was collected; results were analyzed using structural equation modeling.
Findings
WOM was found to be more influential and more widely spread for services than for goods. In addition, although the level of receivers' perceived risk (PR) is generally assumed to be a significant antecedent of WOM influence (WI), the results of the study indicate that PR is not a direct function of WI. Instead, WOM request (WR) mediates the effect of PR on WI.
Originality/value
To the authors' knowledge, this is the first study to examine the relationship between product type and WOM from a dyadic perspective. Moreover, the authors introduced two important mediators – namely, PR and WR – in the model in order to identify different potential effects of WOM in a seeker‐initiated context. The results of this study will enhance knowledge about the influences of WOM information.
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Yimiao Chen, Fangyi Liu, Cheng‐Hsi Fang and Tom M.Y. Lin
With the increasing usage of social networking sites, there has been considerable interest in Word‐of‐Mouth (WOM) research. The purpose of this paper is to propose that economic…
Abstract
Purpose
With the increasing usage of social networking sites, there has been considerable interest in Word‐of‐Mouth (WOM) research. The purpose of this paper is to propose that economic elasticity theory can be applied to evaluate WOM effects and serve as the basis for cross‐product comparison. The practicality of the proposed methodology is demonstrated through a case study. It is hoped that the result of this study solves the argument of WOM effects as shown in past research.
Design/methodology/approach
In order to remove restrictions of measuring WOM objectively, the research asked consumers to form their positive evaluation of WOM about a product or service. In the event that consumers can assess feelings accurately, the WOM consumption function can be constructed and the marginal effect of WOM estimated. The study uses a self‐reported questionnaire to estimate WOM elasticity for 13 products. In total, 465 valid questionnaires were collected.
Findings
Empirical results demonstrate that: first, for all 13 product categories, a significant percentage of respondents are very sensitive to the WOM of product they want to buy; and second, the WOM elasticity of the 13 product categories is between 0.24 and 1.31; the average elasticity was 0.84 for service product and 0.43 for physical goods.
Originality/value
This study may lead to a better understanding of the effectiveness of WOM. WOM elasticity provides an alternative view to examine WOM effects across different products; moreover, it offers an opportunity to re‐evaluate the results of past research.