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This paper aims to examine the capital budgeting practices used by firms in Barbados using contingency theory.

The study involves the use of a self-administered questionnaire sent to the individual responsible for capital budgeting decisions (either the accountant, financial controller or senior manager) in each of the firms selected. In total, 41 completed questionnaires are received; 12 follow-up interviews are conducted with respondents to indicate the reasons for use and non-use of capital budgeting practices.

Capital budgeting practices are not widely used by firms in Barbados. The payback method (PBM) is determined to be the preferred method of choice because of its simplicity, agility and cultural practices. Based on contingency theory, organisations in Barbados believe that the PBM is a better fit for them. Top management drives the capital budgeting process with crude and non-traditional methods for the acceptance of capital projects. While there are no statistically significant differences in the capital budgeting practices used in different sectors, professional accountants are more likely to use net present value and sensitivity analysis than non-professional accountants.

The sample is small, and consequently, findings may not be generalisable to the population.

This study makes a significant contribution to the body of literature in emerging countries such as Barbados on the usage of capital budgeting practices and factors that may influence their usage. It further contributes to policymakers, practitioners, organisations and stakeholders of organisations.

While third-party food delivery continues to increase in popularity, surveys suggest nearly a quarter of deliveries suffer from service failures. With the limited research on third-party food delivery, we explore the important questions of (1) where customers place blame in the case of service failures with third-party food delivery (i.e. the platform or the restaurant) and (2) does this depend on the type of service failure? Drawing on blame attribution theory, signaling theory, and an exploratory study, we demonstrate that customers typically perceive such mishaps to be the responsibility of the restaurant rather than the delivery platform itself. We also examine the effect of visible service failure preventative actions taken by the restaurant on blame attribution and re-order intention.

We conducted two online scenario-based studies to explore customer blame attribution in the case of third-party food delivery service failure. First, an exploratory study approach (N_{Study1 = 512}) was taken to provide additional support for the hypothesis development. An experiment (N_{Study2 = 252}) was then conducted to examine the hypothesized effects.

First, the results of an exploratory study demonstrate that customers attribute service failures such as wrong items, missing items, cold food, or leaking containers to restaurants over third-party food delivery platforms. Second, the results of an experimental study suggest inclusion of an observable cue indicating preventative action, such as time-stamp information indicating when an order was received and packaged for delivery, increases customer re-order intention through the underlying mechanism of blame attribution.

We contribute to the underexplored area of third-party food delivery service failure and to our understanding of blame attribution in service failure scenarios. Further, we demonstrate a practical method to shift the blame away from restaurants for service failures that are outside of the establishment’s control.