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Publication date: 23 September 2013

Dungchun Tsai and WeiWei Chen

The purpose of this study is to attempt to explore how host governmental restriction and interfirm trust influence telecommunications operators (telcos) to choose international…

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Abstract

Purpose

The purpose of this study is to attempt to explore how host governmental restriction and interfirm trust influence telecommunications operators (telcos) to choose international telecommunications alliance forms among equity alliances, relational alliances and recurrent alliances in three emerging markets: China, Hong Kong and Taiwan.

Design/methodology/approach

This study utilizes multiple discriminant analysis to analyze 111 international alliances established in China, Hong Kong and Taiwan during 1993-2004.

Findings

This study finds that host governmental restriction exerts greater influence on the choice of alliance form than interfirm trust. Telcos tend to develop non-equity alliances when governmental restriction is strong. In addition, they tend to develop equity and relational alliances when interfirm trust in high.

Research limitations/implications

Two limitations are: this study only explores the impacts of a number of factors (host governmental restriction and interfirm trust) on alliance form choice, and it only focuses on bilateral alliances in telecommunications services industry. This study suggests that future study should explore other strategic factors (e.g. firms' capability, competitors' strategy) and multi-lateral alliances.

Practical implications

This study provides three managerial suggestions. First, when international telcos establish alliances in emerging markets, they should primarily evaluate host governmental restrictions, and second assess interfirm trust. In addition, if local telcos intend to build relational and equity alliances to acquire international telcos' technology and marketing know-how, they should enhance interfirm trust with them. Lastly, when host governments attempt to attract foreign equity investment, they should remove restrictions on foreign ownership and provide support and friendly regulatory institutions.

Originality/value

Most literature about telecommunications service industry focuses on developed markets and uses descriptive or case analysis. To fill these research gaps, this study conducts an empirical research by analyzing the international alliances in three emerging markets: China, Hong Kong and Taiwan. The findings not only provide suggestions to international telcos, local telcos and host governments in these markets but also can be applied to other emerging markets.

Details

International Journal of Emerging Markets, vol. 8 no. 4
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 6 November 2007

Dungchun Tsai and Hsiao‐Ching Lee

The purpose of the paper is to examine perceptions of unfairness and accompanying cognitive and emotional outcomes exhibited by present versus prospective customers when faced…

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Abstract

Purpose

The purpose of the paper is to examine perceptions of unfairness and accompanying cognitive and emotional outcomes exhibited by present versus prospective customers when faced with targeted promotions. The targeted promotions were designed to be alternatively advantageous or disadvantageous to the targeted group.

Design/methodology/approach

An experiment was conducted with a two (customers categories: present /prospective customer) × two (inequality conditions: advantaged/disadvantaged condition) between‐subject design. A total of 104 valid questionnaires were completed with a minimum of 24 participants per cell.

Findings

Present customers perceive higher unfairness than prospective customers when faced with disadvantaged conditions. However, perceived unfairness was not significantly different when faced with advantaged conditions. Further, perceived unfairness cognitively and affectively influences purchase intentions through perceived value and negative emotions.

Practical implications

Although prospective customers are price‐sensitive, targeted promotions should favor present customers instead of prospective customers to lower the perceived price unfairness of present customers. In addition, when relatively low prices are necessary to attract prospective customers, firms should create a type of “segmentation fence”, where present customers are exposed as little as possible to special offers designed to attract prospective customers.

Originality/value

This research contributes to three streams of literature. The first is related to perceived reference price unfairness, focusing on self/other comparisons (present versus prospective customers) rather than self/self comparisons. The second contribution is related to the outcomes of perceived price unfairness. The mediating effect of perceived value (i.e. cognitive outcomes) and negative emotions (i.e. affective outcomes) between perceived price unfairness and purchase intentions is examined concurrently. The third contribution is that this research raises echoes with the perspective of customer relationship management.

Details

Journal of Product & Brand Management, vol. 16 no. 7
Type: Research Article
ISSN: 1061-0421

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