Driven by the growing pressure to justify the contributions of marketing activities, marketers have shown considerable interest in improving their marketing performance…
Abstract
Purpose
Driven by the growing pressure to justify the contributions of marketing activities, marketers have shown considerable interest in improving their marketing performance measurement systems (MPMSs). The purpose of this study is to examine the neglected mediating effect of marketing capabilities on the MPMS–firm performance relationship and to focus on specific aspects of MPMSs that have been largely omitted in the prior research, namely, the comprehensiveness and uses of MPMSs.
Design/methodology/approach
A survey was conducted with marketing and senior managers from 210 Irish-based companies. The proposed research model was tested by using the SPSS Process macro and structural equation modeling in AMOS 24.
Findings
The three characteristics of MPMSs influence firm performance in different manners: while the diagnostic use of MPMSs hinders the development of market-linking capability and thus negatively influences firm performance; the comprehensiveness of MPMSs positively influences firm performance through its impact on architectural marketing capability; and the interactive use of MPMSs via externally focused learning and market-linking capabilities.
Research limitations/implications
Although this study used objective firm performance data to validate subjective data, the use of single-informant and self-reported measures may still be a concern, as the strong relationships between variables may be because of single-informant bias.
Practical implications
This study provides insights into how companies can use a comprehensive MPMS to cultivate specific crucial marketing capabilities and thereby enhance firm performance.
Originality/value
This study contributes to the marketing performance measurement literature by proposing and empirically validating the mediating effect of marketing capabilities on the MPMS–firm performance relationship.
Details
Keywords
Henry L. Petersen and Fred Lemke
– The purpose of this paper is to explore reputational risk that are borne in the supply chain and contribute to this contemporary but growing research stream.
Abstract
Purpose
The purpose of this paper is to explore reputational risk that are borne in the supply chain and contribute to this contemporary but growing research stream.
Design/methodology/approach
First, a theoretical framework is provided to help in the characterisation of reputational risks and how they impact supply chain members that may be multiple tiers away from the manufacturer. Then, semi-structured interviews were conducted with practitioners who were familiar with reputational risks and who were engaging in varying mitigating techniques. Cognitive modelling was utilised to report the findings.
Findings
The practitioners in this paper were very familiar with the risks and were active in varying mitigating practices as budgets and resource constraints would allow. The brevity of the risks identified and the significance of specific risks with how they impact a reputation was revealed. Mitigation is an ongoing and haphazard process with very little information available as would be expected with a typical risk management approach.
Research limitations/implications
This paper serves to provide practitioners insight into the varying methods used by firms with supply chain members that number in hundreds. Based on our findings, a recommendation was made that utilise corporate social responsibility as a foundation that is proposed to address a number of risks including those related to price, availability and quality. The limits of this work are that it is specific to a select group of practitioners specialised in this area. Although the information is rich, it is not generalisable.
Originality/value
This paper makes a significant contribution to the literature by providing insight into the perceptions of practitioners who make decisions on mitigating reputational risks. The results suggest that this is a very new area of management that is striving to find a way to minimise their exposure.
Details
Keywords
Fred Lemke and Henry L. Petersen
In the supply chain context, professionals manage various risks that have the potential to disrupt supplies. Surprisingly, one kind of risk is often overlooked: reputational risk…
Abstract
Purpose
In the supply chain context, professionals manage various risks that have the potential to disrupt supplies. Surprisingly, one kind of risk is often overlooked: reputational risk. It is critical to recognise the risk potential that impacts on the reputation of the organisation. Furthermore, managers require an appropriate tool set to control it. The present paper aims to have a twin focus: first, it will lay out the basic premises behind corporate reputation, reputational risk, and corporate social responsibility (CSR). Second, the practical implications will be addressed that lead to a substantial teaching component.
Design/methodology/approach
The present paper is based on two research stages. Initially, the authors adopted the “reflective practitioner” philosophy that aimed at discovering the common beliefs in practice that explain working processes and management thought. In particular, they explored the foundation of CSR, reputation and risk management with specialists in dedicated workshops (electronics, energy, life sciences, telecommunications and defence industries, located at different stages of the supply chain). To gain more insight, the authors subsequently conducted in‐depth interviews in these topic areas with key informants. The combination allowed them methodological triangulation.
Findings
Reputation can be created and controlled as soon as its nature is fully understood (Reputational Owner). Interestingly, it is a transceiving business phenomenon that crosses organizational boundaries. Spillover effects can thus be observed at all stages of the supply chain by mere business association (Reputational Borrower). Reputation can range from positive to negative extremes and needs to be managed. The results of the authors' exploratory work are presented as quotations to provide the substance of the current and relevant subject.
Research limitations/implications
The present work is exploratory in nature. Quantitative research methods are now required to validate and substantiate the findings.
Practical implications
CSR is a contemporary foundation to mitigate reputational risk throughout the supply chain. The authors outline the reputational risk factors in this context and the ways of managing those.
Social implications
In the market place, reputation is a reflection of the supply chain offering (products, services), communication (promotion, PR), and action (behaviour and views expressed). Consumers adopt supply chain reputation as a yardstick when making purchase decisions. It is therefore critical to manage reputational risk in the supply chain and this paper outlines the cause and effect relationships that this topic entails in modern society.
Originality/value
This paper discusses the importance of reputational risk in the supply chain. It also explains the ways it can be mitigated via CSR. This is the management baseline that adds tremendous value for theory builders and present and future managers. Having the education of Master students in mind, the authors outline three specific teaching units that bring the conceptual underpinnings alive in an interactive learning environment.
Details
Keywords
Herbert Kierulff and Henry L. Petersen
There are many reasons why companies drift – or plunge – into financial disaster. Factors such as market share loss, excess debt, management problems, technology changes or credit…
Abstract
Purpose
There are many reasons why companies drift – or plunge – into financial disaster. Factors such as market share loss, excess debt, management problems, technology changes or credit fluctuations can all play roles. In fact, the number of risks facing corporate officers is enormous today and simply keeping abreast of it all is a colossal task. As a result, not all managers and firms can cope, often resulting in a turnaround situation. The purpose of this paper is to highlight what sets successful turnarounds apart from failures and the most frequent underlying causes of the problems faced by companies in turnaround situations.
Design/methodology/approach
This paper makes use of previous literature and work with clients to identify a relevant top ten list of management practices for keeping companies out of trouble.
Findings
The academic and professional literature on turnarounds leaves many unanswered questions with respect to what sets successful turnarounds apart from failures. This paper describes ten basic lessons the authors have learned in turning around companies that managements can use to keep their companies healthy.
Originality/value
This paper sets the stage for identifying fundamental, but often overlooked, management practices that lead to financial crisis. Given the disparity in the literature on turnaround success‐rates, the authors suggest that this paper contributes to this literature and also provides unique and timely advice for practitioners.
Details
Keywords
Randal S. Franz and Henry L. Petersen
The purpose of this paper is to explain people's divergent perceptions of companies' corporate social responsibility (CSR) activities in order to help organizations strategically…
Abstract
Purpose
The purpose of this paper is to explain people's divergent perceptions of companies' corporate social responsibility (CSR) activities in order to help organizations strategically manage their global responsibilities.
Design/methodology/approach
Combining institutional theory and role‐theory, the authors examine how people's expectations for the role of business (RoB) in society define the standard by which corporate activities are judged. Where conformity to institutional models confers “legitimacy” and compliance to social scripts constitutes “appropriate” behavior, the authors contend that congruence with RoB expectations is what defines corporate responsibility. This research utilized a quasi‐experimental method to explore the effects of stakeholder status and individuals' RoB expectations on their assessments of CSR activities.
Findings
Significant differences were found between stakeholder groups on all but one of the CSR activities scales. Of substantially more impact, subjects' RoB expectations were found to significantly shape their assessment on all CSR activities scales. A factor analysis of the RoB items identified five dimensions to the role business plays in society, which together define a holistic model for global responsibility.
Research limitations/implications
Subjects were recruited by convenience and randomly assigned to the four experimental conditions, so they are not representative of the general population. Future research would benefit from cross‐cultural, longitudinal and qualitative explorations into people's RoB expectations.
Practical implications
The five RoB components provide managers with a tool to strategically manage a multi‐dimensional portfolio of corporate CSR activities.
Originality/value
This research applies role‐theory concepts to the study of CSR, thereby introducing some emergent, situational, negotiated and idiosyncratic dynamics to our understanding of global responsibility.
Details
Keywords
Henry Petersen and Harrie Vredenburg
The purpose of this paper is to extend our understanding of corporate governance, social issues and capital markets by distinguishing between the socially responsible investing…
Abstract
Purpose
The purpose of this paper is to extend our understanding of corporate governance, social issues and capital markets by distinguishing between the socially responsible investing phenomenon and mainstream investing with respect to social issues. It attempts to clarify the domain by casting it in the theoretical frame of prospect theory and mental modeling. With a qualitative study done among large institutional investors in the Canadian securities industry, the article derives a proposed mental model of these institutional investors' cognitive model of social issues as they impact investments.
Findings
The institutional investors in this study know exactly where value is derived from social investments suggesting that there may be more alignment between directors, investors and societal expectations than has been previously suggested.
Research limitations/implications
The limited number of organizations in the study reduces the generalizability of the findings.
Practical implications
Managers and directors must have an understanding of how shareholder value and responsibilities intersect. In our research, we have found that these executives positioned their firms as leaders on the social responsibility front. Interestingly, their major shareholders also understood how responsibility and shareholder value intersected and as a result, financial performance was not sacrificed.
Originality/value
The findings from this research shed light on previous scholars' questions regarding the alignment of interests between managers, directors and social expectations. The firms analyzed make strategic investments that are considered to meet social expectations but that are also perceived to add value to the organization making the firm more attractive to institutional investors.
Details
Keywords
Just‐in‐time (JIT) production methods were popularized by the excellent results achieved by Japanese industry. When it became evident during the 1970s that the Japanese were…
Abstract
Just‐in‐time (JIT) production methods were popularized by the excellent results achieved by Japanese industry. When it became evident during the 1970s that the Japanese were gaining markets previously dominated by Americans, there was considerable interest in learning how Japanese industry operates. Then, during the early 1980s, Toyota’s highly effective JIT production system had a particular appeal to Americans who were trying to understand Japanese production methods. While Taichi Ohno, creator of Toyota’s production system, credits Henry Ford as the originator, it is now known that Ernest Kanzler, one of Ford’s subordinates, played a major role in developing JIT production methods. This article reports Ford’s and Kanzler’s contributions and explores the possible influence that Frederick W. Taylor may have had on the development of this approach at the Ford Motor Company.