Frank Tian Xie, Naveen Donthu and Wesley J. Johnston
This paper aims to present a new framework that describes the relationship among market entry order and timing, the advantages accruing to first-movers and late-movers, entry…
Abstract
Purpose
This paper aims to present a new framework that describes the relationship among market entry order and timing, the advantages accruing to first-movers and late-movers, entry timing premium (ETP), marketing strategy and enduring market performance of the firms. The framework, empirically tested using data from 241 business executives, expands extant research into new territory beyond first- and late-mover advantages in an attempt to reconcile a few streams of research in the area and provides an entry related, strategic assessment tool (ETP) for the managers. Contribution to marketing strategy theory and managerial implications are also presented.
Design/methodology/approach
Participants included informants in a firm’s strategic business unit who were the most familiar with a new product’s commercial launch, market condition at launch, competitor offerings, marketing activities and capabilities and eventual integration into or withdrawal from the product’s portfolio. Therefore, for the survey, the study targeted chief executive officers, vice presidents of marketing or sales, product or sales managers, general managers and regional managers. Both preference bias (Narus, 1984) and survivor biases among the respondents were addressed.
Findings
The research result of this study reveals two very significant aspects of marketing and marketing strategies. First, the importance of financial, pricing and cost strategies further attests to the fiercely competitive nature of the global market today and the tendency for firms to commoditize most products and services. An effective financial and pricing strategy, coupled with a higher level of ETP, is capable of leading a firm to initial market success in the product-market in which it competes. Both ETP (a positional advantage and resource of the firm) and financial and pricing strategies (a deliberate strategic decision of the management) are important to achieve this goal.
Research limitations/implications
This study is limited in several ways. The effects of entry order and timing on market performance could be dependent on the types of industries and types of product categories involved. However, as the hypotheses were well supported, the “industry specific” factors would provide “fine-tuning” in the future study. Second, the nature of the product (goods or services) may also present varying effects on the relationship studied (for differences between manufacturing and service firms in pioneering advantages, see Song et al., 1999). Services’ intangible nature, difficulty in protecting property rights, high involvement of boundary-spanning employees and customers, high reliance on delivery and quality, and ease of imitation may alter the proposed relationships in the model and the moderating effects. Third, although this study used a “retrospective” protocol approach in the data collection by encouraging respondents to recall market, product and business information, this study is not longitudinal. Lack of longitudinal data in any study involving strategic planning, strategy execution and the long-term effects is no doubt a weakness. In addition, due to peculiarity and complexity with regard to regulation and other aspects in pharmaceutical and other industries, the theory might be limited to a certain extent.
Practical implications
In all, the integrated framework contributes to the understanding of the intricate issues surrounding first-mover advantage, late-mover advantage, entry order and timing and the role of marketing strategy. The framework provides practitioners guidance as to when to enter a product-market to gain advantageous positions and how to maintain that advantage. Firms that use a deliberate late-mover strategy could also benefit from the research finding in mapping out their strategic courses of action.
Originality/value
This study believes that the halo effect surrounding first-mover advantage may have obscured the visions of some researchers and managers, and the pursuit of a silver bullet has led to frenzied interests in becoming a “first-mover” or a deliberate “late-mover”. The theoretical framework, which is substantiated by empirical testing, invalidates the long-held claim that entry of a particular kind (first-movers or late-movers) yields any unique competitive advantage. It is a firms’ careful selection of marketing strategies and careful execution of the strategies through effective operational tactics that would lead to enduring competitive advantage, under an adequate level of ETP.
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Frank Tian Xie and Wesley J. Johnston
An extensive, integrated review of literature precedes a new typology of alliances based on participating firms’ relative position in the supply chain (scale or link) and the…
Abstract
An extensive, integrated review of literature precedes a new typology of alliances based on participating firms’ relative position in the supply chain (scale or link) and the nature of their cooperation (equity or non‐equity). This typology helps to distinguish among a bewildering array of alliances and to explicate alliance motivations and performance on impact of e‐business technological innovations. Theoretical and managerial implications follow.
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Stewardship theory is an emergent approach for explaining leadership behavior, challenging the assumptions of agency theory and its dominance in corporate governance literature…
Abstract
Purpose
Stewardship theory is an emergent approach for explaining leadership behavior, challenging the assumptions of agency theory and its dominance in corporate governance literature. This study revisits the agency and stewardship theories by seeking to answer whether chief executive officers (CEOs) in China are committed stewards or opportunistic agents.
Design/methodology/approach
Based on 5,165 observations of 1,036 listed companies in China over the period 2005–2010, the results suggest that the corporate governance mechanisms developed from the agency theory in the West are not necessarily applicable in the Chinese context.
Findings
This study supports the stewardship theory in its findings that empowering CEOs through the practice of CEO duality and longer CEO tenure have a positive effect on firm value in China. Additionally, the positive relationships between CEO duality, CEO tenure and firm value are strengthened by the number of executive directors on the board, and weakened by the number of independent directors on the board.
Practical implications
One size does not fit all. Leadership behaviors in China do not follow the agency assumptions inherent in Western practices, rather they favor the conditions of positive leadership expressed by the stewardship theory. Assuming that the motivations of managers in emerging markets such as China are similar to those in the West may lead to a poor fit between governance policies and the institutional context.
Originality/value
As one of the few studies to connect the theoretical debate between the agency and stewardship theories, this study presents new evidence to support the stewardship theory, thereby strengthening its theoretical importance and relevance in corporate governance literature.
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Min Du, Frank Kwabi and Tianle Yang
Drawing on three theoretical frameworks, this paper aims to examine the effects of state-owned enterprises (SOEs) and the interaction between SOEs and prior acquisition experience…
Abstract
Purpose
Drawing on three theoretical frameworks, this paper aims to examine the effects of state-owned enterprises (SOEs) and the interaction between SOEs and prior acquisition experience of Chinese domestic and cross-border acquirers.
Design/methodology/approach
Using a sample of 4,116 firms consisting of 3,939 domestic mergers and acquisitions (M&As) and 177 cross-border M&As over the period 2004–2017, this study adopts both accounting- and market-based performance measures, namely, return on assets, return on equity and buy-and-hold abnormal return to analyse the effects of SOEs and the interaction between SOEs and prior acquisition experience on acquirers’ performance.
Findings
First, this paper finds SOEs to exert a positive influence on acquirer performance, contrary to agency theory but in line with the resource-based view. However, the positive relationship between SOEs and performance appears more pronounced for domestic M&A compared to cross-border M&As. Second, this study also finds prior acquisition experience and the combined effect of SOE and prior acquisition experience to have a positive and significant bearing on performance.
Research limitations/implications
The limitation of this study is the lack of cross-border M&A data with all the relevant information compared to domestic M&A. Thus, the cross-border M&A sample appears lower compared to the domestic M&A sample.
Practical implications
The results imply that the moderating role of prior acquisition experience on the relationship between SOEs and performance appears to be crucial for cross-border M&A performance compared to domestic M&A.
Originality/value
The findings of this study show SOEs increase performance, contrary to the widely held view based on agency theory that SOEs are inefficient.
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The purpose of this paper is to examine the influences of negative performance feedback on firms' cost behaviors including productive behaviors (i.e. R&D behaviors) and…
Abstract
Purpose
The purpose of this paper is to examine the influences of negative performance feedback on firms' cost behaviors including productive behaviors (i.e. R&D behaviors) and non-productive behaviors (i.e. selling behaviors and business entertainment behaviors), as well as to investigate the roles of ownership types and marketization.
Design/methodology/approach
A sample of Chinese manufacturing firms from 2007 to 2018 is analyzed employing multiple regression models.
Findings
The results show that negative performance feedback has a positive but not significant effect on R&D behaviors, while its effect on selling behaviors is significantly positive. Meanwhile, there is an inverted U-shaped relationship between negative performance feedback and business entertainment behaviors. Furthermore, when facing a performance dilemma, state-owned enterprises tend to adjust selling behaviors, while nonstate-owned enterprises pay more attention to business entertainment behaviors. In terms of marketization, the firms in high-marketization regions are more likely to adjust their R&D, selling and business entertainment behaviors, while the firms in low-marketization regions are difficult to adjust these cost behaviors.
Practical implications
This study explores the role of negative performance feedback in firms' cost behaviors and provides empirical evidence about the differentiated influences regarding ownership types and marketization.
Originality/value
Integrating insights from existing studies and introducing the behavioral theory of the firm and prospect theory, this study proposes a more inclusive framework that addresses the impacts of negative performance feedback on firms' cost behaviors. This paper deepens the understanding of firms' decision behaviors in the dilemma of performance shortfall.
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Begum Sertyesilisik and Egemen Sertyesilisik
Sustainability performance of the global trade as well as of the traded products are affected by the trade policies and trade tariffs. Trade tariffs and policies can either…
Abstract
Sustainability performance of the global trade as well as of the traded products are affected by the trade policies and trade tariffs. Trade tariffs and policies can either encourage or discourage trade among the countries affecting feasibility of trade. In other words, the scope and amount of these trade tariffs have impact on the trade globally. Based on an in-depth literature review, this chapter aims to examine impacts of the trade policies and trade tariffs on the environmental footprint of the global trade. With this aim, recent trade policies and trade tariffs as well as roles of the trade policies, trade tariffs in reducing environmental footprint of the global trade are examined. It arrives at the conclusion that trade tariffs can affect environmental footprint of the global trade as well as of the traded products. They can have impact on the feasibility of the trading activities influencing their profit margins and costs. Based on these findings, recommendations for trade policies and trade tariffs are thereby provided to enhance sustainability performance of the global trade.
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Vincent K. Chong, Gary S. Monroe, Isabel Z. Wang and Feida (Frank) Zhang
This study examines the effect of employees' perceptions of political connections on performance measurement systems (PMS) design choice and firm performance. In addition, this…
Abstract
This study examines the effect of employees' perceptions of political connections on performance measurement systems (PMS) design choice and firm performance. In addition, this study explores the moderating effect of social networking, a very common and widely used factor by domestic and foreign multinational firms operating in China, and its joint effect with political connections or PMS design choice on firm performance. We collected survey responses from a sample of 110 managers from manufacturing firms in China. Our results reveal that highly politically connected managers use nonfinancial measures, leading to improved firm performance. Our results suggest that social networking interacts significantly with political connections, and nonfinancial and financial measures on firm performance. The theoretical and practical implications of our findings are discussed.
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Aleksandra Nikolić, Alen Mujčinović and Dušanka Bošković
Food fraud as intentional deception for economic gain relies on a low-tech food value chain, that applies a ‘paper-and-pencil approach’, unable to provide reliable and trusted…
Abstract
Food fraud as intentional deception for economic gain relies on a low-tech food value chain, that applies a ‘paper-and-pencil approach’, unable to provide reliable and trusted data about food products, accompanied processes/activities and actors involved. Such approach has created the information asymmetry that leads to erosion of stakeholders and consumers trust, which in turn discourages cooperation within the food chain by damaging its ability to decrease uncertainty and capability to provide authentic, nutritional, accessible and affordable food for all. Lack of holistic approach, focus on stand-alone measures, lack of proactive measures and undermined role of customers have been major factors behind weaknesses of current anti-fraud measures system. Thus, the process of strong and fast digitalisation enabled by the new emerging technology called Industry 4.0 is a way to provide a shift from food fraud detection to efficient prevention. Therefore, the objective of this chapter is to shed light on current challenges and opportunities associated with Industry 4.0 technology enablers' guardian role in food fraud prevention with the hope to inform future researchers, experts and decision-makers about opportunities opened up by transforming to new cyber-physical-social ecosystem, or better to say ‘self-thinking’ food value chain whose foundations are already under development. The systematic literature network analysis is applied to fulfil the stated objective. Digitalisation and Industry 4.0 can be used to develop a system that is cost effective and ensures data integrity and prevents tampering and single point failure through offering fault tolerance, immutability, trust, transparency and full traceability of the stored transaction records to all agri-food value chain partners. In addition, such approach lays a foundation for adopting new business models, strengthening food chain resilience, sustainability and innovation capacity.
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Tagreed Ali and Piyush Maheshwari
Blockchain technology, renowned for its decentralization, security, reliability, and data integrity, has the potential to revolutionize businesses globally. However, its full…
Abstract
Blockchain technology, renowned for its decentralization, security, reliability, and data integrity, has the potential to revolutionize businesses globally. However, its full potential remains unrealized due to adoption barriers, necessitating further studies to address these challenges. Identifying these barriers is crucial for businesses and practitioners to effectively tackle them. This systematic review analyzed 70 eligible studies out of 1944 gathered from various databases to understand and identify common blockchain adoption barriers. The Technology–Organization–Environment (TOE) framework was the most popular theory used in these studies. Despite differences in variable definitions, financial constraints, lack of stakeholder collaboration and coordination, and social influences like resistance to change and negative perceptions emerged as the top three barriers. The supply chain domain had the highest number of studies on blockchain adoption. Notably, there was a significant increase in studies addressing blockchain adoption in 2023, comprising 34.2% of the total reviewed studies. This review provides a comprehensive overview of identified barriers, serving as a valuable foundation for future research. Understanding these challenges allows researchers to design targeted studies aimed at developing solutions, strategies, and innovations to overcome obstacles hindering blockchain adoption.
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Vasim Ahmad, Lalit Goyal, Tilottama Singh and Jugander Kumar
This chapter explores the significance of blockchain technology in protecting data for intelligent applications across various industries. Blockchain is a distributed ledger that…
Abstract
This chapter explores the significance of blockchain technology in protecting data for intelligent applications across various industries. Blockchain is a distributed ledger that ensures the immutability and security of transactions. Given the increasing need for security measures in industries, understanding blockchain technology is crucial for preparing for its future applications.
This chapter aims to examine the use of blockchain technology across industries and presents a compilation of existing and upcoming blockchain technologies for intelligent applications. The methodology involves reviewing research to understand the security needs of different industries and providing an overview of methods used to enhance multi-institutional and multidisciplinary research in areas like the financial system, smart grid, and transportation system.
The findings highlight the benefits of blockchain networks in providing transparency, trust, and security for industries. The Responsible Sourcing Blockchain Network (RSBN) is an example that utilizes blockchain's decentralized ledger to track sustainable sourcing from mine to final product. This information can be shared with auditors, corporate governance organizations, and customers.
The practical implications of this chapter are significant, serving as a valuable resource for industries concerned with identity privacy, traceability, immutability, transparency, auditability, and security. Understanding and implementing blockchain technology can address the growing need for secure and intelligent applications, ensuring data protection and enhancing trust in various sectors.