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Article
Publication date: 1 July 2005

Wen‐chang Lin

This article aims to apply a multi‐period model of insurance market equilibrium to solve for the insureds' optimal demand for insurance, as well as insurers' optimal supply.

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Abstract

Purpose

This article aims to apply a multi‐period model of insurance market equilibrium to solve for the insureds' optimal demand for insurance, as well as insurers' optimal supply.

Design/methodology/approach

Most approaches to competitive equilibrium in the insurance market involve the construction of demand and supply curves based on maximizing the insureds' and insurers' expected utility for a single time period. However, it is important to recongnize that, for a given utility function, the demand (supply) decisions of insureds (insurers) in a single‐period model may differ substantially from those under a multi‐period formulation. In this article, first, separate multi‐period models of demand and supply are constructed, and then a dynamic solution for equilibrium price and quantity is provided.

Findings

Although a single‐period model generally requires the assumption of an exact loss distribution to compute expected utilities, the multi‐period model requires only the expected loss and its associated stochastic process (in this case, a Brownian motion). One implication of this approach is that it may explain phenomena of market prices failing to achieve Pareto optimality for a single period.

Originality/value

This approach may be used to generate new hypotheses related to the underwriting cycle. Specifically, the insureds' demand and insurers' supply decisions may both be based on expected discounted future cash flows. The non‐trivial multi‐period equilibrium insurance price may provide additional insights into the volatility of insurance market prices.

Details

The Journal of Risk Finance, vol. 6 no. 3
Type: Research Article
ISSN: 1526-5943

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Article
Publication date: 29 May 2007

Wen‐chang Lin and Jin‐ray Lu

The purpose of this study is to introduce an insurance risk‐exchange model in the presence of background risk and private information and which solves the optimal insurance and…

1272

Abstract

Purpose

The purpose of this study is to introduce an insurance risk‐exchange model in the presence of background risk and private information and which solves the optimal insurance and investment decisions simultaneously.

Design/methodology/approach

The model undertakes a continuous‐time two‐agent framework in which the decisions depend on who can determine the insurance quantity as well as the agents' risk attitudes. The decisions are solved by using dynamic‐programming techniques.

Findings

The results show that the insured may purchase full insurance even if the insurance price is actuarially unfair and the insurance risk and investment risk are uncorrelated. Further, the demand for insurance may be affected by background risk even if the two risks are uncorrelated. If Pareto optimality is impeded by private information, the paper shows that the deadweight loss can be mitigated by forming a hedging demand with respect to the parameter risk.

Originality/value

This study is not only an extension of the existing continuous‐time insurance demand model, but also may be considered a model of “enterprise risk management” for institutional agents.

Details

The Journal of Risk Finance, vol. 8 no. 3
Type: Research Article
ISSN: 1526-5943

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Publication date: 15 March 2022

Amy Yueh-Fang Ho, Wen-Chang Lin and Hung-Yuan Yu

Peer-to-Peer (P2P) lending, which makes borrowers and investors meet directly through online platforms bypassing traditional financial institutions, is an emerging financing…

Abstract

Peer-to-Peer (P2P) lending, which makes borrowers and investors meet directly through online platforms bypassing traditional financial institutions, is an emerging financing market after the traditional financial institutions crushed during the global financial crisis from 2007 to 2009. P2P lending platforms meet the credit demand more efficiently and play a vital role for the credit market and economic activity. This study sheds light on whether the credit spread of P2P lending is well predictive of economic activity compared to the bond credit spread which has been fully investigated in prior studies. Our findings show that the P2P credit spread performs similarly in predicting the economic activity as bond credit spread only during the financial crisis. However, the predictive power of P2P credit spread becomes inverse during the noncrisis periods since P2P lending platforms provide an alternative and easier financing channel to individuals who hardly borrow money for refinancing from traditional financial institutions. This study highlights the alternative role of P2P lending platform in financing and provides the evidence of different predictive powers of P2P credit spread on economic activity in different time periods.

Details

Advances in Pacific Basin Business, Economics and Finance
Type: Book
ISBN: 978-1-80117-313-1

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Article
Publication date: 18 January 2008

Heng‐Chiang Huang and Chia‐Wen Chang

Drawing on embeddedness theory, the purpose of this paper is to develop a comprehensive model that explains the incremental innovation process in the supplier‐manufacturer…

1779

Abstract

Purpose

Drawing on embeddedness theory, the purpose of this paper is to develop a comprehensive model that explains the incremental innovation process in the supplier‐manufacturer relationship.

Design/methodology/approach

Utilizing the partial least squared (PLS) technique, this study examines the incremental innovation process through the theoretical lens of the embeddedness perspective.

Findings

The overall picture emerging from this study indicates that establishing an embedded tie between a manufacturer and a primary supplier enables the creation of informal coordination mechanisms, including trust, joint problem‐solving, and commitment. These coordination mechanisms safeguard the transfer of knowledge and lead the partners to joint action. Such joint action provides an interactive forum for developing innovation capabilities that allow firms to enhance their incremental innovation performance.

Research limitations/implications

From an academic perspective, this study is the first to examine the innovation process theoretically through the embeddedness perspective.

Practical implications

The evidence reported here is consistent with the finding that relational embeddedness plays a strong role in predicting better incremental innovation. In addition to engaging in their own trial‐and‐error experimentation to develop innovation capabilities, firms learn about innovation capabilities vicariously through embedded ties with primary exchange partners.

Originality/value

In essence, these results provide valuable insights for managers who wish to draw on knowledge from external sources in their innovation activities. Whereas previous studies have shown how a firm's incremental innovation is influenced by its internal resources, this paper illustrates that relational embeddedness also represents an important source of incremental innovation.

Details

Journal of Intellectual Capital, vol. 9 no. 1
Type: Research Article
ISSN: 1469-1930

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Article
Publication date: 13 February 2017

Wen-Hai Chih, Tao-Sheng Chiu, Li-Chi Lan and Wen-Chang Fang

This study aims to investigate the relationships between consumers’ perceived justice and their behavioral intentions and explores the effects of psychological contract violation…

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Abstract

Purpose

This study aims to investigate the relationships between consumers’ perceived justice and their behavioral intentions and explores the effects of psychological contract violation on the relationships.

Design/methodology/approach

This study conducts sampling through the survey to consumers after restaurant dining. This study collected data from 400 respondents and analyzed the data with the structural equation modeling.

Findings

The results indicate that consumers who experience higher level of distribution justice and procedure justice are more likely to have behavioral intentions. This study also reveals that psychological contract violation is a partial mediator of the above relationships. Consumers will feel less psychological contract violation when they perceive more distribution justice and procedure justice and will not significantly affect them more likely to repurchase intention.

Originality/value

During restaurant service, if consumers feel distribution or procedure injustice, they are more likely to engage in negative word-of-mouth. However, the lack of significant and positive effect of interaction justice on negative word-of-mouth in this study can be because of other intervening variables, such as intensity. Furthermore, in terms of customer’s repurchase intention, the results indicate significant and positive effects for all three types of justice on repurchase intention.

Details

International Journal of Conflict Management, vol. 28 no. 1
Type: Research Article
ISSN: 1044-4068

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Article
Publication date: 27 April 2020

Wen Chang, Anyu Liu, Xuhui Wang and Bowen Yi

Leader–member exchange (LMX) theory is particularly relevant to the hospitality and tourism industry due to its labor-intensive and service-focused nature. However, the…

1473

Abstract

Purpose

Leader–member exchange (LMX) theory is particularly relevant to the hospitality and tourism industry due to its labor-intensive and service-focused nature. However, the hospitality literature regarding the impact of LMX on its various outcomes have inconsistent results. A holistic review of LMX studies is nonexistent in the current literature. Thus, the purpose of this study is to use a meta approach to quantitatively summarize and examine the relationship between LMX and its outcomes in the hospitality and tourism literature.

Design/methodology/approach

A total of 89 individual observations from 36 studies conducted between 1997 and 2018 were identified. A Bayesian random effect model was introduced into the hospitality and tourism literature for the first time to implement the meta-analysis.

Findings

The results suggest significant differences in the impact of LMX on various groups of outcomes. LMX has the strongest impact on firms’ practice-related outcomes, such as organizational justice and employee empowerment. Few moderators are identified on the impact of LMX, such as LMX measure, culture, industry sector and statistical method.

Practical implications

Findings yielded several recommendations for both hospitality researchers and organizations in developing LMX related studies, as well as managing employees.

Originality/value

This study is the first Bayesian meta-analysis in the hospitality and tourism literature; it complements LMX theory by linking it to cognitive appraisal theory. Specific characteristics of LMX in the hospitality and tourism industry, such as the measurement of LMX and the effect of industry sector, are also identified.

Details

International Journal of Contemporary Hospitality Management, vol. 32 no. 6
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 17 October 2022

Xiaoxiao Qi, Da Shi, Zixuan Huang and Wen Chang

This study aims to meta-analyze the moderating roles of Hofstede’s four cultural values in the antecedent–tourist loyalty link.

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Abstract

Purpose

This study aims to meta-analyze the moderating roles of Hofstede’s four cultural values in the antecedent–tourist loyalty link.

Design/methodology/approach

Based on 35 independent studies, a meta-regression was conducted to determine whether the heterogeneity of 11 antecedent–tourist loyalty relationships could be explained by four dimensions of Hofstede’s cultural values. Furthermore, this study tested how these relationships were contingent on each cultural value dimension, reinforced by robustness tests involving subgroup analyses.

Findings

The intensity of all associations significantly varied by at least one cultural value dimension, namely, power distance, individualism, masculinity or uncertainty avoidance.

Research limitations/implications

This meta-analytic study enriches the relevant literature by referring to a large, diverse sample to enhance the robustness of the moderating role of tourists’ national culture in loyalty formation and revealing the moderating effect of national culture in 11 antecedent–tourist loyalty links more than in extant literature.

Originality/value

For the body of knowledge of culture-moderated tourist loyalty formation, to the best of the authors’ knowledge, this study is the pioneering meta-analytic effort. It also first offers an original contribution to moderator analysis meta-analytic studies of tourist loyalty by identifying a new moderator, i.e. national culture.

Details

International Journal of Contemporary Hospitality Management, vol. 35 no. 5
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 13 May 2022

Chia-Wen Chang and Chiu-Ping Hsu

This study aims to provide a conceptual framework for exploring the relationship between online game product engagement and online brand community engagement and how these two…

1554

Abstract

Purpose

This study aims to provide a conceptual framework for exploring the relationship between online game product engagement and online brand community engagement and how these two types of customer engagement affect subsequent offline benefit for customers and online and offline benefits for firms. This study also investigates the antecedents of online game product engagement from the virtual experience perspective.

Design/methodology/approach

This study collected data from online gamers in Taiwan. Of the 580 responses, 548 were valid. Smart PLS 3 was used to test the measurement model and the hypotheses in the research model.

Findings

The conceptual model is supported. First, the findings show that learning, entertainment, flow and social interaction play key roles in explaining online game product engagement. Second, online game product engagement has a positive effect on online brand community engagement. Finally, online game product engagement and online brand community engagement are crucial drivers of customers’ offline benefit and firms’ online and offline benefits.

Originality/value

Four contributions are made by this study. First, this study explores firms’ online benefit (virtual item purchase intention) and offline benefits, including licensed product and co-branded product purchase intention. Second, this study explores the customer’s offline benefit (offline skill development). Third, it focuses on two types of customer engagement, including online game product engagement and online brand community engagement, and explores the relationship between them. Finally, the concept of virtual experience is used to explore the antecedents of online game product engagement.

Details

Journal of Product & Brand Management, vol. 31 no. 8
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 6 June 2020

Wen Chang, James Busser and Anyu Liu

This study aims examine the impact of authentic leadership on the career satisfaction of hospitality employees through the lens of thriving. The two components of thriving, that…

2258

Abstract

Purpose

This study aims examine the impact of authentic leadership on the career satisfaction of hospitality employees through the lens of thriving. The two components of thriving, that is, learning and vitality, are tested as mediators, and psychological contract fulfillment is tested as a boundary factor.

Design/methodology/approach

Data are collected using an online survey through the Qualtrics panel service in the USA. Structural equation modeling and an invariance test are conducted to investigate the framework.

Findings

The findings show that authentic leadership can determine career satisfaction through the influence of learning and vitality. Moreover, psychological contract fulfillment exerts a conditional effect on this mediation.

Practical implications

The findings of this study extend the understanding on authentic leadership and its impact under specific conditions. This study offers several meaningful recommendations to hospitality managers on how to influence employees’ career success to maintain sustainable performance. Detailed approaches include establishing practices for regular and authentic leadership development, increasing attention on employee thriving states and addressing employee psychological contracts.

Originality/value

This study enriches research on authentic leadership and career management in the hospitality industry. Moreover, this study provides meaningful insights by examining the relationships between authentic leadership, thriving, career satisfaction and psychological contracts.

Details

International Journal of Contemporary Hospitality Management, vol. 32 no. 6
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 6 February 2017

Sheng-Hsiung Chang and Chin-Wen Chang

Set in an emerging economy context, the purpose of this paper is to examine the determinants of green consumers’ purchase behavior on organic food by analyzing the impact of…

2113

Abstract

Purpose

Set in an emerging economy context, the purpose of this paper is to examine the determinants of green consumers’ purchase behavior on organic food by analyzing the impact of word-of-mouth (WOM) effects (i.e. tie strength, sender’s green expertise, receiver’s green expertise), conformity behaviors (i.e. normative interpersonal influence and informational interpersonal influence) on green purchase intention, and the relationship between green purchase intention and green purchase behavior.

Design/methodology/approach

Data were collected by self-administered questionnaire completed by respondents who had purchase experience of organic food in the last six months. The specific context of this study is green consumption for organic food in Taiwan. Data collection was implemented in a convenience sampling method. Among the 578 consumers who had filled the questionnaire, 147 did not have any purchase history of organic food, resulting in a final usable sample of 431 (response rate 74.57 percent) in Taiwan. The data were collected during a five-week period in late 2015.

Findings

Through structural equation modeling analysis, data were analyzed and the empirical results indicate that tie strength, sender’s green expertise, and receiver’s green expertise have a positive influence on green consumer’s susceptibility to informational interpersonal influences and normative interpersonal influences, separately. In addition, informational interpersonal influences and normative interpersonal influences both have a positive relationship on green purchase intention, which will further positively influence the green purchase behavior.

Originality/value

This study reminds marketers of the impact of WOM effects as well as interpersonal influences on consumers. It examines the impact of tie strength, senders’ green expertise, and receivers’ green expertise on green purchase intention and green purchase behavior. This study also explores the mediation effects of green consumers’ susceptibility to interpersonal influences. Consumers’ susceptibility to interpersonal influence is discussed in the marketing literature. However, few prior studies have explored its effect in the green setting. Last, few attempts have discussed the relationship between green purchase intention and green purchase behavior. This study contributes to the literature by examine the relationship between green purchase intentions and green purchase behavior.

Details

British Food Journal, vol. 119 no. 2
Type: Research Article
ISSN: 0007-070X

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