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This paper investigates internal and external barriers influencing the different dimensions of firm service innovativeness and the moderating effect of transformational leadership on these relationships in an emerging economy, namely, Turkey.

The hypotheses were tested using cross-sectional survey data from 148 hotels. The authors use regressions to analyze the data set.

The results demonstrate that barriers to innovation need not necessarily impede firm service innovativeness at all times; some of these so-called “barriers” may even act as catalysts that improve firm’s likelihood of adopting innovations. More importantly, the findings suggest that a transformational leadership style alleviates the negative influence of internal barriers on internal service innovativeness dimensions of process, strategic and behavioral innovativeness.

The positive effect of transformational leadership lessening the detrimental impact of barriers to innovation is a topic in need of research. In addition to examining this phenomenon in a developing country, the authors choose a service retailing industry as a study context: hospitality/tourism. The main reason for choosing this industry is that there is little empirical evidence of service innovation activity in this industry despite the fact that it contributes to a large extent to employment and gross domestic product in most emerging economies, and it is, in fact, a fairly innovative industry. Furthermore, this study presents a unique perspective by investigating small- and medium-sized enterprises (SMEs).

Pharmaceutical marketers use detailing, sampling and direct-to-consumer advertising (DTCA) to promote a branded prescription drug (brand drug) to health-care professionals and consumers. These promotion mix elements help raise brand awareness, increase prescription likelihood and guard a product market against competing brand drugs. However, the extent to which these elements remain effective when a brand drug goes off patent and its marketing exclusivity expires, allowing low-price generics to enter the market, remains unclear. This study aims to explore the effectiveness of promotion mix elements before and after the market entry of a generic drug.

The authors collected and analyzed a panel data set of 41 brand drugs from 7 therapeutic classes between 2007 and 2014 (3,201 observations) using the two-stage control function approach to address potential endogeneity.

The effectiveness of promotion mix elements changes significantly, but not in a universally uniform way, during a market transition. Detailing and DTCA are increasingly effective after a brand drug’s generics enter the market. In contrast, sampling is more effective before the market transition. The positive effects of sampling on brand sales are stronger when the price of a brand drug is higher than the average price of its competing brands. Sampling also helps amplify the positive influences of detailing and DTCA on brand sales.

This study shows that pharmaceutical promotion is not equally effective in the brand drug market with/without generic competitors. Detailing and DTCA are increasingly effective when generic competition intensifies. In contrast, the distribution of free drug samples is less effective after more generic drugs enter the market.

Incumbent brands’ promotion expenditures often drop dramatically when the expiration of their patents is near, a practice that likely continues after generics enter the market. Taking into consideration these industry norms and their findings, the authors suggest that promotional decisions during a market transition should not overly focus on cutting promotional expenditures across the board. Since a firm’s promotional expenditure tends to be expensive, factoring in information on the effectiveness of each promotion mix element helps marketers make well-informed strategic decisions on resource allocation during the transition from a market without generics to a market with generics.

Previous studies do not explicitly account for structural changes in the brand drug market over time. However, the expiration of patent and marketing exclusivity marks a transitional period in which a brand drug eventually competes with its generic counterparts. Given the criticality of such structural change, the authors examine brand drugs’ promotion effectiveness in the presence of their generic counterparts.

March’s 1991 work on exploitation and exploration has been studied in many different industries. The purpose of this paper is to analyze signals emanating from exploration and exploitation alliances within the pharmaceutical industry context. Specifically, the authors explore market reactions to announcements of alliance formations based not only on alliance type but also in terms of their marketing intensity and leverage.

The authors employ a two-stage event-study market model using a two-day event window (event days 0, +1), creating cumulative abnormal returns (CARs). In the second stage, the authors regress the CARs against an array of control and explanatory variables.

Findings suggest that even though firm announcements of exploration and exploitation formations initially generate favorable market reactions, the former has a greater impact on CAR relative to the latter. Furthermore, leverage and marketing intensity moderate the relationship between firms’ alliance formation announcements and CARs generated. In particular, firms’ alliance formation announcements generate relatively greater market reactions at lower (higher) levels of the firm’s leverage (market intensity).

Event studies are valuable for gauging initial impressions of management action, but they are not meant to address long-term value creation. While market reactions suggest the likelihood of an alliance’s success or failure, managers also assess the risk to a firm’s financial health should the alliance fail. As a result, announcements that signal the firm has discretionary capabilities to ameliorate the effect of a failed alliance are better received.

This study is the first to analyze the stock market’s perception and valuation of different types of risk, classified by exploration vs exploitation alliances. The study also contributes to the literature by analyzing how investors use the information about a firm’s financial leverage and marketing activities to fine-tune their valuation of different types of risk-taking activities.

The purpose of this paper is to test the weak form of the efficient market hypothesis (EMH) using monthly data from 2004M08 to 2018M04 for two Canadian stock indices: the Islamic (DJICPI) and the conventional (CCSI). This paper investigates whether Islamic and/or conventional stock market would be efficient through the non-stationarity test of the stock indices.

The authors conduct the linearity test of Harvey et al. (2008) to identify whether the considered series has linear or nonlinear behavior. If the time series exhibits nonlinear evolution, then the authors apply nonlinear unit root tests (three KSS type tests and Sollis tests).

Linearity test results say that LCCSI has nonlinear behavior, while Dow Jones Islamic Canadian Price Index, LDJICPI, is a linear process. Then, the findings of this paper show that only Canadian Islamic Price Index (DJICPI) has the characteristics of random walk indicating that only conventional stock markets are inefficient. The major implication is that in Canada, fund managers and investors can (cannot) enjoy excess returns to their investment in conventional (Islamic) stock market.

Numerous empirical studies of the weak EMH are carried out within a linear framework. However, stock indices can show nonlinear behavior as a result of 2008 global financial crisis. To contribute to the existing literature on the Islamic and conventional stock market efficiency, the authors take into account both structural breaks and nonlinearity. Thus, as a testing strategy for weak EMH, the authors perform (Harvey et al., 2008) linearity test to examine the presence of nonlinear behavior and correct for outliers effect when it is needed.

This study aims to investigate the impact of brand engagement on consumer responses to brand extensions, particularly in terms of value perception, attitude and purchase intention in a masstige context. The study examines low-fit/high-functionality and high-fit/low-functionality products. It also explores the crucial role of self-congruence in enhancing brand engagement, which leads to positive consumer responses towards brand extensions.

After establishing the theoretical foundations, pre-tests identified the product types and their fit level. In this quantitative study, 464 questionnaires were administered. Confirmatory factor analysis and structural equation modelling validated the model and tested the hypotheses for low-fit/high-functionality and high-fit/low-functionality products of a masstige brand.

Data analysis shows that brand engagement positively affects value perception, attitude and purchase intention. However, consumers’ responses to brand extension differed for low-fit versus high-fit products. Moreover, social self-congruence and actual and ideal self-congruence positively impact consumers’ active engagement with masstige brands.

This research shows that low-fit extensions of masstige brands can succeed with high functionality, while high-fit extensions mitigate the negative effects of low functionality, a key attribute of masstige brands. The study adds to the limited literature on self-congruence and engagement by identifying actual and ideal self-congruence as determinants of brand engagement. It is also among the first to demonstrate that social self-congruence drives brand engagement for masstige brands.