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Article
Publication date: 27 March 2019

Rania W. Semaan, Stephen Gould, Mike Chen-ho Chao and Andreas F. Grein

Country-of-origin (COO) effects on product evaluations have been widely applied in international marketing, albeit with mixed results. One stream of research values its importance…

1161

Abstract

Purpose

Country-of-origin (COO) effects on product evaluations have been widely applied in international marketing, albeit with mixed results. One stream of research values its importance in decision-making, whereas another stream posits that COO has little effect when compared to the greater diagnosticity of other product attributes. This suggests that how and along what other attributes (extrinsic or intrinsic) COO is presented play an important role in its relative impact. The purpose of this paper is to address these mixed results by applying one such framing perspective based on evaluation mode (i.e. separate versus joint evaluation) and preference reversals and their biasing effects to a study of COO and willingness to pay (WTP) for a product.

Design/methodology/approach

A three between-subject (joint evaluation, separate evaluation-domestic and separate evaluation-foreign) experimental design was used to assess whether evaluation mode moderates COO effects on product evaluations.

Findings

Similar results are mirrored across three/four countries. When evaluated separately, consumers value an inferior domestic-made product more than a superior foreign-made one. However, when the domestic- and foreign-made products are presented in joint evaluations, the better foreign-made product is favored.

Research limitations/implications

A number of limitations in terms of countries, consumers within the countries and products studied are addressed along with future research that may address these factors and test the robustness of domestic–foreign preference reversals.

Practical implications

The results of this study reveal practical insights to marketers. Marketing managers for better-quality foreign brands are encouraged to engage in comparative advertising appeals and sell their products in retail stores that hold both domestic and foreign products, whereas marketers for domestic products should create a selling environment that facilitate only a separate evaluation mode to enhance WTP.

Originality/value

This paper provides insights on the diagnosticity of COO when presented alongside intrinsic attributes and the role of evaluation mode in shaping consumers’ preferences. This research suggests that COO has different effects in different evaluation modes, thus explaining some of the mixed results in literature regarding its importance. On the one hand, COO has a decisive effect on product evaluations when products are presented separately. On the other hand, COO effect is overridden by intrinsic cues, which become more apparent when products are presented jointly. Overall, these results demonstrate the robustness of the preference reversal effect across countries and products.

Details

European Journal of Marketing, vol. 53 no. 5
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 21 December 2017

Nancy Chen, Mike Chen-ho Chao, Henry Xie and Dean Tjosvold

Scholarly research provides few insights into how integrating the western values of individualism and low power distance with the eastern values of collectivism and high power…

4191

Abstract

Purpose

Scholarly research provides few insights into how integrating the western values of individualism and low power distance with the eastern values of collectivism and high power distance may influence cross-cultural conflict management. Following the framework of the theory of cooperation and competition, the purpose of this paper is to directly examine the impacts of organization-level collectivism and individualism, as well as high and low power distance, to determine the interactive effects of these four factors on cross-cultural conflict management.

Design/methodology/approach

This is a 2×2 experiment study. Data were collected from a US laboratory experiment with 80 participants.

Findings

American managers working in a company embracing western low power distance and eastern collectivism values were able to manage conflict cooperatively with their Chinese workers. Moreover, American managers working in a company valuing collectivism developed more trust with Chinese workers, and those in a company culture with high power distance were more interested in their workers’ viewpoints and more able to reach integrated solutions.

Originality/value

This study is an interdisciplinary research applying the social psychology field’s theory of cooperation and competition to the research on employee-manager, cross-cultural conflict management (which are industrial relations and organizational behavior topics, respectively), with an eye to the role of cultural adaptation. Furthermore, this study included an experiment to directly investigate the interactions between American managers and Chinese workers discussing work distribution conflict in four different organizational cultures.

Details

Cross Cultural & Strategic Management, vol. 25 no. 1
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 6 June 2016

Mike Chen-ho Chao, Fuan Li and Haiyang Chen

Motivated by the heated discussion with regard to the Chinese milk powder incident, this paper aims to explore the determinants of Chinese managers’ moral judgment. Are Chinese…

1287

Abstract

Purpose

Motivated by the heated discussion with regard to the Chinese milk powder incident, this paper aims to explore the determinants of Chinese managers’ moral judgment. Are Chinese professional managers’ moral judgments on an ethical dilemma influenced by their commitment to the norms and values recognized by a prestigious professional association outside of China? Do Chinese managers’ moral development and level of relativism impact their ethical decisions?

Design/methodology/approach

A structured survey was conducted, generating 544 valid responses from Chinese managers.

Findings

The results showed that moral maturity and relativism, independently and together, were significantly related to Chinese managers’ moral judgment on a hypothetical business dilemma, though no significant effect was found for their commitment to ethics codes.

Originality/value

The findings confirm the important role of moral development and relativism in Chinese mangers’ moral judgment and suggest the need for further research on the impact of professional ethics codes.

Details

Nankai Business Review International, vol. 7 no. 2
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 23 April 2010

Mike Chen‐Ho Chao and John E. Spillan

This paper aims to investigate the link between market orientation and performance of US and Taiwanese small‐ and medium‐sized enterprises (SMEs). This study is primarily centred…

1654

Abstract

Purpose

This paper aims to investigate the link between market orientation and performance of US and Taiwanese small‐ and medium‐sized enterprises (SMEs). This study is primarily centred on empirically investigating two issues: test the effectiveness of MARKOR (a widely used market orientation measure developed by Kohli et al.) in US and Taiwanese SME contexts, and investigate the factors influencing US and Taiwanese SMEs’ performance.

Design/methodology/approach

This study's participants were owners or managers from 138 SMEs located in three states in the USA (i.e. Maryland, New York, and Pennsylvania) and 151 SMEs located in Taiwan. A survey was created to collect data: market orientation scale items used in this survey were mainly adopted from MARKOR; performance scale items were adopted directly from previous studies. Structural equation modelling was employed to analyse the data collected.

Findings

This study finds that neither US and Taiwanese SMEs’ intelligence generation, nor intelligence dissemination had a significant relationship with their firm performance. However, the findings do indicate that there was a significantly positive link between US and Taiwanese SMEs’ responsiveness and their firm performance.

Originality/value

In almost all previous studies in this field, the primary emphasis has focused on the market orientation of large businesses. Research on market orientation in SMEs has been scarce. Hence, this paper contributes to the extant literature by changing the research direction and studying market orientation in SME context. In addition, this paper provides SME managers with a more understandable guide to specific market‐oriented activities.

Article
Publication date: 11 May 2010

Nancy Yi Feng Chen, Mike Chen‐Ho Chao and Dean Tjosvold

Applying the theory of cooperation and competition, this paper proposes that entrepreneurial firms can obtain social capital in terms of trust and reciprocity by developing…

Abstract

Purpose

Applying the theory of cooperation and competition, this paper proposes that entrepreneurial firms can obtain social capital in terms of trust and reciprocity by developing cooperative goals with other firms, rather than competitive and independent goals. Such cooperative relationships may then enhance the firm's strategic resources, including corporate reputation and market access.

Design/methodology/approach

Results were obtained from structural equation modeling of data from 120 entrepreneurial firms in Shanghai, China.

Findings

The hypotheses were supported, except that reciprocity was found to affect corporate reputation negatively. The results suggest that cooperative interdependence and trust in the network of entrepreneurial firms, not self‐sacrificing reciprocity, can foster a firm's business development.

Originality/value

Although there is evidence in the literature suggesting that social capital influences the performance of entrepreneurial firms both directly and indirectly, there is less evidence addressing the mechanisms by which entrepreneurial firms can acquire and maintain social capital. This study addresses this research gap.

Details

Leadership & Organization Development Journal, vol. 31 no. 3
Type: Research Article
ISSN: 0143-7739

Keywords

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