Hao Shen, Yu Gao, Chuan Liu and Xiangru Chen
Integrating the coopetition perspective with institutional theory, this study aims to determine how balanced patterns (BPs) and combinative patterns (CPs) of coopetition impact…
Abstract
Purpose
Integrating the coopetition perspective with institutional theory, this study aims to determine how balanced patterns (BPs) and combinative patterns (CPs) of coopetition impact firms’ new product development (NPD) and how these effects are contingent on the various types of interactions between firms and the institutional environments in which they are embedded.
Design/methodology/approach
To test the hypotheses, 303 firms in China were surveyed. Based on the responses, the proposed model was estimated using structural equation modeling and hierarchical regression analysis.
Findings
The findings indicate that CP of coopetition enhances NPD but a BP of coopetition impedes NPD. Further, the results suggest that obtaining government support positively moderates the effect of the CP on NPD but negatively moderates the effect of the BP. Conversely, influencing government policy negatively moderates the effect of the CP but positively moderates that of the BP on NPD.
Research limitations/implications
The findings indicate that different patterns of inter-firm coopetition may have different effects on NPD, thus, providing a holistic and dynamic understanding of the contingent value of coopetition for NPD. The findings also suggest that the complex effects of coopetition on NPD are influenced by institutional interactions, introducing further contingencies to the process of coopetition-based innovation.
Practical implications
This study provides guidelines for managers seeking to fully understand and capitalize on the dual nature of coopetition: they should be cautious about the different patterns of competition – cooperation interaction and manage their interactions with institutional environments to increase the benefits and avoid the potential damage that different types of coopetition may bring.
Originality/value
This study offers direct insights into the balanced nature of coopetition and opens up an avenue for further exploration of the specific effects of cooperation dominance and competition dominance on firm performance in the business-to-business context. Moreover, the proposed contingency model offers a potential interface between institutional and coopetition research on NPD in marketing and strategic fields.
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Hao Shen, Yu Gao and Xiuyun Yang
The purpose of this paper is to explore how organizational climate impacts the speed of strategic change (SSC) for firms in transitional economies and whether if the effects were…
Abstract
Purpose
The purpose of this paper is to explore how organizational climate impacts the speed of strategic change (SSC) for firms in transitional economies and whether if the effects were contingent on internal control mechanisms.
Design/methodology/approach
A theoretical model including five constructs is developed. The questionnaire survey is deployed to scale main constructs, including organizational climate, such as open communication and hierarchical bureaucracy, internal controls such as strategic and financial control, and SSC. The moderation regression method in five steps is employed to test all hypotheses using the survey data from the 120 sampled Chinese firms.
Findings
The findings show that open communication has a positive effect on SCC, whereas hierarchical bureaucracy has a negative effect on SSC. Furthermore, strategic control positively moderates the relationship between open communication and SSC but negatively moderates the relationship between hierarchical bureaucracy and SSC; meanwhile, financial control negatively moderates the relationship between open communication and SSC but positively moderates the relationship between hierarchical bureaucracy and SSC.
Originality/value
This research integrates organizational climate and internal control mechanisms into the framework of strategic change to investigate how firms achieve fast strategic change through aligning organizational climate with proper organizational control mechanisms. The findings advance the authors’ understanding of the organizational climate, internal controls, and strategic change literature, and offer valuable managerial insights for managers in situations when strategic change is of central importance in the transitional economies.
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This study examines the effects of technological and marketing capabilities on administrative and product innovativeness, and the mediation effects of resource flexibility.
Abstract
Purpose
This study examines the effects of technological and marketing capabilities on administrative and product innovativeness, and the mediation effects of resource flexibility.
Design/methodology/approach
This study tests a conceptual model based on survey data from 303 Chinese firms using structural equation modeling.
Findings
Technological and marketing capabilities are found to have positive effects on administrative and product innovativeness, as well as resource flexibility. Resource flexibility positively influenced administrative innovativeness and product innovativeness, and resource flexibility mediated the relationships between technological and marketing capability and administrative and product innovativeness.
Originality/value
This study advances the authors' understanding of firm innovativeness and resource flexibility, addresses the missing link between firm capability and firm innovativeness, and contributes to the authors' knowledge of value-generating paths in resource management research.
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The purpose of this paper is to investigate the proper matches between institutional business ties (to state-owned enterprises (SOEs) and to banks) and firm capabilities…
Abstract
Purpose
The purpose of this paper is to investigate the proper matches between institutional business ties (to state-owned enterprises (SOEs) and to banks) and firm capabilities (technological capability and marketing capability) in impacting the radical innovation of manufacturing firms in China.
Design/methodology/approach
Using the samples of 208 manufacturing firms in China, this study runs three regression models to test all hypotheses.
Findings
Ties to SOEs and ties to banks are positively related to radical innovation of manufacturing firms in China. Further, the technological capability and marketing capability have different functions on moderating the relationship between institutional business ties and radical innovation.
Practical implications
The results imply that managers of manufacturing firms should strive to establish close connections to those organizations that are set-up by government in China. In addition, managers should cautious about the synergies between different institutional business ties and different internal capabilities, and properly matching them to develop radical innovation.
Originality/value
This study enriches and extends the managerial ties literature by going beyond previous narrow focus on either business ties or political ties to address a particular type of organization that is set-up by the governments but operate in the business world. The findings of proper ties-capabilities matches provide nuanced understandings to dynamically manage external resources and internal capabilities for the synergetic benefits (e.g. radical innovation). This study also offer a theoretical paradigm (i.e. resource management model) for manufacturing firms to lessen the striking tension between the urgent needs for radical innovation and the hostile ground for conducting radical innovation.
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Ying-Feng Kuo, Hsin-Hsien Liu and Tso-Hao Shen
Inaction inertia occurs when people are less likely to act on a similar but inferior option after missing a superior opportunity, compared to if they had not missed out. This…
Abstract
Purpose
Inaction inertia occurs when people are less likely to act on a similar but inferior option after missing a superior opportunity, compared to if they had not missed out. This study aims to explore how promotional formats and their sequence affect the inaction inertia effect in online shopping, under the assumption of economic equivalence.
Design/methodology/approach
The authors performed two online experiments and analyzed the data by analysis of variance.
Findings
The findings indicate that, under the premise of economic equivalence: Monetary promotions exhibit a higher inaction inertia effect on consumers than nonmonetary promotions. When consumers miss a more favorable promotion and subsequently encounter a relatively less attractive one presented in a different promotional format, the inaction inertia effect is lower than when reencountering the same promotion format. When consumers miss a better monetary promotion and presently encounter a relatively less attractive nonmonetary promotion, the inaction inertia effect is lower than when they miss a superior nonmonetary promotion and currently encounter a relatively less attractive monetary promotion.
Originality/value
This study reveals the sequence effects of promotional formats, indicating that nonmonetary promotions following monetary ones effectively reduce inaction inertia. A strategically sequenced set of formats enhances consumer recommendations, mitigating inaction inertia. These findings open new research paths, providing insights into the impact of promotional format sequences on the inaction inertia effect. Consequently, this knowledge helps e-retailers in implementing effective promotional strategies and driving online purchases.
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Hui Li, Hao Shen, Bo Wang and Haizhi Wang
We aim to empirically investigate the effect of affiliated banker directors (ABDs) on corporate tax avoidance. Furthermore, we conduct cross-sectional analyses on the impact of…
Abstract
Purpose
We aim to empirically investigate the effect of affiliated banker directors (ABDs) on corporate tax avoidance. Furthermore, we conduct cross-sectional analyses on the impact of ABDs and explore the underlying mechanisms through which ABDs might influence corporate tax avoidance.
Design/methodology/approach
Using a large sample between 1999 and 2016, we empirically examine the impact of ABDs on corporate tax avoidance. We address the endogeneity concerns through an instrumental variable approach and robustness tests with alternative measures of ABDs and corporate tax avoidance.
Findings
Our results demonstrate that firms with ABDs exhibit lower levels of corporate tax avoidance. This negative association persists after controlling for potential endogeneity issues and is robust to alternative measures. We further document that the negative effect is stronger when firms are more bank-dependent and financially constrained. Our results indicate that ABDs limit corporate tax avoidance by strengthening corporate governance, mitigating information risks and protecting their reputational capital.
Originality/value
This research extends the existing literature by exploring the influence of ABDs on corporate accounting policies, particularly tax avoidance. These findings enhance our understanding of how directors’ banking experience bolsters corporate governance, information transparency and reputation, ultimately safeguarding stakeholder interests. This paper offers valuable implications for both financial practitioners and policymakers.
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Dawei Jin, Hao Shen, Haizhi Wang and Desheng Yin
The purpose of this paper is to empirically explore whether and to what extent the changes in state corporate income tax rates affect corporate tax aggressiveness.
Abstract
Purpose
The purpose of this paper is to empirically explore whether and to what extent the changes in state corporate income tax rates affect corporate tax aggressiveness.
Design/methodology/approach
Using a differences-in-differences approach with dynamic treatment, the authors investigate the effect of staggered changes in state corporate income tax rates in the USA on corporate tax aggressiveness.
Findings
Firms become more aggressive in avoiding taxes following state tax increases but are insensitive to tax cuts. The effect of state tax increases on tax aggressiveness is weaker for firms with greater debt tax shields and marginal tax rates. Firms are more likely to shift their operations and relocate their headquarters out of states experiencing tax increases.
Originality/value
To the best of the authors' knowledge, this paper is the first to study the relation between state tax policy changes and corporate tax aggressiveness. This paper finds an asymmetrical pattern of corporate tax aggressiveness in response to state tax changes.
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Defeng Yang, Hao Shen and Robert S. Wyer
This study aims to examine the relationship between consumers’ emotional expressions and their self-construals. The authors suggest that because an independent self-construal can…
Abstract
Purpose
This study aims to examine the relationship between consumers’ emotional expressions and their self-construals. The authors suggest that because an independent self-construal can reinforce the free expression of emotion, the expression of extreme emotions is likely to become associated with feelings of independence through social learning.
Design/methodology/approach
The paper includes five studies. Study 1A provided evidence that priming participants with different types of self-construal can influence the extremity of their emotional expressions. Study 1B showed that chronic self-construal could predict facial expressions of students who were told to smile for a group photograph. Studies 2–4 found that inducing people to either manifest or to simply view an extreme facial expression activated an independent social orientation and influenced their performance on tasks that reflect this orientation.
Findings
The studies provide support for a bidirectional causal relationship between individuals’ self-construals and the extremity of their emotional expressions. They show that people’s general social orientation could predict the spontaneous facial expressions that they manifest in their daily lives.
Research limitations/implications
Although this research was generally restricted to the effects of smiling, similar considerations influence the expression of other emotions. That is, dispositions to exhibit extreme expressions can generalize over different types of emotions. To this extent, expressions of sadness, anger or fear might be similarly associated with people’s social orientation and the behavior that is influenced by it.
Practical implications
The paper provides marketing implications into how marketers can influence consumers’ choices of unique options and how marketers can assess consumers’ social orientation based on their observation of consumers’ emotional expressions.
Originality/value
To the best of the authors’ knowledge, this research is the first to demonstrate a bidirectional causal relationship between individuals’ self-construals and the extremity of their emotional expressions, and to demonstrate the association between chronic social orientation and emotional expression people spontaneously make in their daily lives.
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Japanese regional banks have actively expanded their overseas business in emerging markets, and this topic is quite important for regional banks that have confronted severe…
Abstract
Japanese regional banks have actively expanded their overseas business in emerging markets, and this topic is quite important for regional banks that have confronted severe business environments over the decades. An aging population suppresses long-term increases in loan demands, and stagnant economic conditions lead to lowered interest rates in the medium-term. Overseas business is a promising business field for regional banks, but recent developments have not been investigated in detail.
This chapter examines overseas investments using data from regional banks’ financial reports. Our sample comprises 44 regional banks without overseas branches, and a research period from FY2011 to FY2015. We demonstrate different overseas business patterns among regional banks. This investigation uses X-means clustering, which is nonhierarchical, as this method automatically presents an optimal number of clusters, and sorts regional banks into their appropriate clusters.
The X-means clustering method indicates five business patterns among regional banks. This also characterizes respective clusters and demonstrates that medium-sized banks actively develop security investments, which increases overseas business’s contributions to profits. Meanwhile, small banks cannot expand overseas investments, which differ from other banks. These banks must seek other business models to compensate for this decline in their earning power.