Chiung‐Ju Liang, Tzu‐Tsang Huang and Wen‐Cheng Lin
Previous empirical studies on the nature of the relationship between ownership and corporate value have produced mixed results. Meanwhile, effective management of knowledge‐based…
Abstract
Purpose
Previous empirical studies on the nature of the relationship between ownership and corporate value have produced mixed results. Meanwhile, effective management of knowledge‐based intellectual capital has become a key factor to corporate success, both in firm performance and corporate value. Thus, this paper aims to reexamine the link among ownership, proxies for intellectual capital and corporate value in the emerging Taiwan market.
Design/methodology/approach
Using two‐stage least square estimation of panel data in a simultaneous equations framework, the authors focus on: What is the interdependent impact of ownership on corporate value through the mediating role of intellectual capital (IC)? Does ownership directly or indirectly (i.e. via IC) influence corporate value? Does it persist across industries?
Findings
The empirical results suggest that the relationship between ownership and corporate value mainly depends on industry characteristics and the nature of proxies for intellectual capital in the emerging Taiwanese market. Further, the impacts of ownership on corporate value in more traditional industries are even stronger, that is, there exists the direct impact of ownership mechanism on corporate value. Notably, for the high‐tech firms, ownership can indirectly affect corporate value through the moderating role of intellectual capital.
Research limitations/implications
The implication reminds managers and investors not merely focusing on ownership mechanisms as the main value‐creation information, but a thorough review of IC should be made in order to avoid making incorrect decisions. The limitations suggest areas for further research. For instance, it is important to extend the role of intellectual capital (i.e. to employ other variables to proxy for IC) in exploring the interdependent impact of ownership on corporate value.
Originality/value
The paper potentially adds to ongoing research by extending the importance of the concept of IC in assessing the interdependent impact of ownership on corporate value.
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Sheng-Yen Chang, Hsi-Peng Lu and Chiung-Ju Liang
The following teaching case study details an exciting and modern case of an integrated circuit distribution company in Taiwan (the Sunnic Group) as it transitions through several…
Abstract
The following teaching case study details an exciting and modern case of an integrated circuit distribution company in Taiwan (the Sunnic Group) as it transitions through several major innovation initiatives creating new products and a new role for itself in the industry while simultaneously fending off market forces, competition, and degrading profits. This case study delivers important lessons about conducting innovation via four major areas. The first area details how market forces, intense competitions, entry barriers, and corporate growth can create situations where innovating on a large scale has strong advantages over the alternatives. The second area shows how theories on innovation and customer value propositions are used to create realistic strategies for new products and feasible plans for organizational change. Topics like knowledge management, creating new capabilities, and key performance indicators are discussed. Next, the actual implementations of several innovation initiatives are explained in dramatic fashion with characters demonstrating resistance to innovation, competitor's reactions, and conflicts of interest; more importantly, it demonstrates how product development strategies can actually play out. This section also captures how transforming an organization can be stressful, leadership intensive, and difficult. Finally, the case reviews the results of the transformation and innovation efforts via the patent and financial results. This case is designed to teach students a mix of theory and practical skills. A lengthy list of questions for students is also provided and a teacher's edition from page 21 onwards of this text contains lecture notes that help in guiding class discussions and aid in creating assignments.
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Chiung‐Ju Liang, Tzu‐Yin Chen and Ying‐Li Lin
The purpose of this paper is to investigate whether value‐creating activities and intellectual capital (IC) accumulation are affected by different business models.
Abstract
Purpose
The purpose of this paper is to investigate whether value‐creating activities and intellectual capital (IC) accumulation are affected by different business models.
Design/methodology/approach
Field visitations and interview‐based questionnaires are used for data collection. This study uses the structural equation model to examine Taiwanese original equipment manufacturers (OEMs) and original brand manufacturers (OBMs) in China.
Findings
Empirical results show that Taiwanese OEMs and OBMs adopt different combinations of value‐creating activities, which results in differences in IC accumulation. Taiwanese OEMs have engaged in manufacturing and innovation activities, and have created process and innovation capitals. By contrast, Taiwanese OBMs have developed their marketing channels, human resources, innovation centres, and social networks, and have accumulated their human, customer, process and innovation capitals.
Practical implications
Taiwanese OEMs have cultural advantages and have built productive infrastructure in China. Therefore, these enterprises should transform their business models into OBMs to enhance their market performance. Foreign investors could leverage the experiences and IC of Taiwanese enterprises to make their investments run more smoothly.
Originality/value
This paper contributes to the existing literature by investigating relationships among business models, value‐creating activities, and IC. This study also provides useful guidance for enterprises considering investing in China and for academics researching in this area.
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Chiung‐Ju Liang and Wen‐Hung Wang
The purpose of the paper is to summarize existing evidence about the behavioral sequence of relationship marketing at the individual customer level, and to offer a conceptual…
Abstract
Purpose
The purpose of the paper is to summarize existing evidence about the behavioral sequence of relationship marketing at the individual customer level, and to offer a conceptual model of the impact of particular behaviors that signal whether customers remain with or defect from the company.
Design/methodology/approach
Based on the SEM tool of Lisrel (Linear Structure Relation), this study develops and empirically tests a model examining the relations among relationship bonding tactics, perceived relationship investments, customer satisfaction, trust, commitment and customer behavioral loyalty, as relationship duration was used as a controllable variable in a relationship marketing system.
Findings
Based on a sample collected from PC school, the largest information services institute in Taiwan, the results show that all three kinds of relationship bonding tactic do have significant influence on perceived relationship investment except for financial ones. Besides, the results show that customer satisfaction is very important in reinforcing customers' trust, commitment and repurchase intentions within the relationship marketing system. Finally, relationship duration does have a positive influence on both customer satisfaction and customer behavioral loyalty.
Practical implications
According to this research, managers should effectively segment their customers into several groups and use different marketing programs for customers of various characteristics, so as to get effective and efficient results.
Originality/value
The research suggests that managers of information education services institutes should be serious about targeting investment dollars to improve customer satisfaction, and know why customers buy what they are selling.
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Wen‐Hung Wang and Chiung‐Ju Liang
The purpose of this article is to develop a model for examination of the relations among attributes, benefits, customer satisfaction, trust, commitment, and customer behavioral…
Abstract
Purpose
The purpose of this article is to develop a model for examination of the relations among attributes, benefits, customer satisfaction, trust, commitment, and customer behavioral loyalty in a marketing system.
Design/methodology/approach
In order to observe the behavioral sequence of relationship marketing and relationship quality, this paper aims to collect the relevant literature and infer to the conceptual framework.
Findings
The conceptual model is at the level of the individual customer and proposes that benefits and customer satisfaction are positively related with respect to information services. This model also proposes that customer satisfaction and behavioral intentions are positively related and, thus, that product‐related and/or non‐product‐related attributes – functional, symbolic and/or experiential benefits – are determinants of whether a customer ultimately remains with or defects from a company.
Originality/value
Suggesting a research agenda whereby information about individual‐level behavioral sequence of product‐related and/or non‐product‐related attributes and benefits can be monitored and linked to customer satisfaction data, in order to provide ongoing evidence of the impact of attributes and benefits on customer behavioral sequence.
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Chiung‐Ju Liang and Ying‐Li Lin
The purpose of this paper is to investigate value‐relevant information provided by intellectual capital (IC) beyond financial performance under different life‐cycle stages.
Abstract
Purpose
The purpose of this paper is to investigate value‐relevant information provided by intellectual capital (IC) beyond financial performance under different life‐cycle stages.
Design/methodology/approach
The life‐cycle classification method and the residual income model are used to examine the information technology industry.
Findings
The empirical results show that the value‐relevant information provided by IC under the growth, maturing, and stagnant stages can be ranked in order (from high to low) of custom, innovation, process, and human capital. Specifically, the empirical results indicate that overall IC provided the most value‐relevant information in the stagnant stage and the lowest value‐relevant information in the growth stage.
Research limitations/implications
This paper reveals that evaluating the company market value merely by financial performance involves a number of limitations, thereby requiring IC to supplement the process. The internet downturn in the mid‐2000s might have likewise affected the categorization of life‐cycle stages and the value‐relevant information provided by intellectual capital during the “bubble” period.
Practical implications
Managers and investors should not merely focus on financial performance as the main value‐relevant information, but a thorough review of IC in different life‐cycle stages should be made in order to avoid making incorrect decisions.
Originality/value
This paper contributes to the existing literature by exploring customer, process, innovation, and human capital which, significantly, have different value‐relevant information in different life‐cycle stages.
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Chiung‐Ju Liang, Wen‐Hung Wang and Jillian Dawes Farquhar
The purpose of this study is to develop and empirically test a model examining the relationship between customer perceptions (product attributes, benefits, customer satisfaction…
Abstract
Purpose
The purpose of this study is to develop and empirically test a model examining the relationship between customer perceptions (product attributes, benefits, customer satisfaction, trust, commitment and customer behavioral loyalty) and financial performance of a merchant bank.
Design/methodology/approach
Based on the SEM tool of Linear Structure Relation (LISREL), this study develops and empirically tests a model examining the relationships between customer perspectives (product attributes, benefits, customer satisfaction, trust, commitment and customer behavioral loyalty) and the financial perspective (financial performance). A cross‐department study in the financial services industry was conducted based on three consumer samples (department of Loans, Deposits, and Credit Cards) drawn from XYZ bank, one of the most famous banks providing merchant banking services in Taiwan.
Findings
SEM results indicate that: customer perceptions positively affect financial performance; and customers purchase financial services with dissimilar benefits, all of which come with corresponding attributes, and hence result in different levels of customer satisfaction and behavioral sequence, which is important in reinforcing customers' trust, commitment, repurchase intentions and corporate financial performance.
Practical implications
The findings suggest that financial service managers could consider treating consumers as partners in their provision of existing services or their quest to develop successful new services. Reciprocal behavior will foster a positive atmosphere, remove barriers arising from risk, and enable relationships to progress, ultimately improving financial performance.
Originality/value
The research proposes an empirical model of the customer perceptions in the consumption of financial services that has a positive impact on the financial performance of the company. The findings are based on data from one company across three product departments.
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Chiung‐Ju Liang and Wen‐Hung Wang
The purpose of the paper is to summarize existing evidence about the behavioral sequence of relationship marketing at the individual customer level, and also to offer a conceptual…
Abstract
Purpose
The purpose of the paper is to summarize existing evidence about the behavioral sequence of relationship marketing at the individual customer level, and also to offer a conceptual model of the impact of particular behaviors that signal whether customers remain with or defect from the company.
Design/methodology/approach
Based on the SEM tool of Lisrel (Linear Structure Relation), This study develops and empirically tests a model for examination of the impact of different relationship efforts (financial bonding, social bonding, and structural bonding) made by a retailer on key relationship marketing outcomes (perceived relationship investment, customer satisfaction, trust, relationship commitment, and behavioral intentions). A cross‐department study in the financial services industry was conducted, based on three customer samples (from the departments of loans, deposits, and credit cards) drawn from XYZ bank, one of the most famous banks providing merchant banking services in Taiwan.
Findings
SEM results indicate that retailers who undertake relationship efforts with loyal customers can positively affect these customers' attitudes and behavioral intentions. The findings suggest that financial services with different attributes require different kinds and levels of customer treatments and relationship efforts. They support the contention that the aggregation of customer satisfaction from continuous exchange leads to trust between the two parties (retailers and customers). They also suggest the direction of resource reallocation. Consequently, managers and employees of retail banks need to be trained, motivated, and rewarded for making relationship efforts with regular customers.
Practical implications
According to the research, managers should segment their customers into several groups effectively and use different marketing programs for customers of various characteristics, so as to get correct and efficient results.
Originality/value
The research suggests that managers of financial services institute should be serious about targeting investment dollars to improve customer satisfaction, and know why customers buy what they sell.