Corporate reputation based theory of choice between organic, hybrid and inorganic growth strategies

2014 ◽  
Vol 19 (3) ◽  
pp. 247-259 ◽  
Author(s):  
Arpita Agnihotri
Keyword(s):  
Corporate Reputation ◽  
Growth Strategy ◽  
Relative Performance ◽  
Growth Strategies ◽  
Tobit Regression ◽  
Content Type ◽  
Organic Hybrid ◽  
Industry Competition ◽  
Organic Growth

Purpose – The purpose of this paper is to examine how organizational resources: mass media corporate reputation and relative performance influences firms choice between organic, hybrid and inorganic growth strategies and how industry competition moderates this relationship. Design/methodology/approach – Using panel data and Tobit regression on sample of firms from emerging markets, i.e. India, the study is conducted. Findings – The results indicate that firm's corporate reputation, its relative performance with respect to competitors, positively influences hybrid growth strategy and negatively influences organic growth strategies. Further, results show that competition acts as a moderator of firm's relative performance and growth choice. Originality/value – The study contribute to resource-based view of the firm and corporate reputation literature by the extending the deterministic role of corporate reputation to not only firms’ market-based performance but also strategic choice.

Typology of growth strategies and the role of social venture’s intangible resources

2018 ◽  
Vol 25 (5) ◽  
pp. 818-848 ◽  
Author(s):  
Raghda El Ebrashi
Keyword(s):  
Scale Up ◽  
Social Enterprises ◽  
Growth Strategy ◽  
Growth Strategies ◽  
Social Entrepreneurs ◽  
Content Type ◽  
Intangible Resources ◽  
Impact Scale ◽  
Social Ventures

Purpose Building on the resource-based view of the firm the purpose of this paper is to study the intangible resources available for social ventures, and presents a typology of growth strategies based on the intangible resources possessed by those enterprises. Design/methodology/approach This research applies a multiple case study technique for ten social enterprises in Egypt listed on Ashoka and Schwab Foundation websites. The research employs a purposive sampling technique. Data triangulation is used based on reports, websites, and interviews with social entrepreneurs and employees. Findings The study has three main findings: describing the intangible resources needed by social ventures to grow; detailing the growth strategies adopted by social ventures and corresponding funding mechanisms; explaining how intangible resources affect the selection of growth strategies, and how these interact with the context to produce expected outcomes. Overall, a typology for growth strategies of social ventures is presented. Research limitations/implications This paper is an original attempt to advance research on social enterprises in relation to the RBV and the domain of venture growth and impact scale-up. Practical implications This research is beneficial for social ventures and venture philanthropists who wish to learn about the specific resources important for venture growth, and understand the suitable strategies and context for organizational growth and impact scale-up. Originality/value This research is one of the few attempts to study and explain the types of intangible resources in social ventures and the role of different resource bundles in deciding social venture growth strategy.

SHEROES: entrepreneurship by acquisitions and organic growth

2021 ◽  
Vol 11 (2) ◽  
pp. 1-21
Author(s):  
Deepa Kumari ◽  
Ashutosh Dash
Keyword(s):  
Online Community ◽  
Secondary Data ◽  
Growth Strategy ◽  
Growth Strategies ◽  
Community Based ◽  
Content Type ◽  
Post Graduate ◽  
Academic Level ◽  
Organic Growth ◽  
Teaching Cases

Learning outcomes The students should be able to understand the potential and competitive advantage of community-based business model. The students should be able to familiarise themselves with the concept of entrepreneurship through acquisitions. The students should be able to decide when a firm should use acquisition as a key driver coupled with fewer efforts on organic growth or vice-versa. The student should be able to evaluate the success or failure acquisition as a growth strategy. The student should be able to evaluate the key metrics and other variables in the acquisition of target companies. The students should be able to wear the shoes of the protagonist and resolve the dilemma. Case overview/synopsis The teaching case looks at the dilemma of Sairee Chahal. Chahal is the founder of SHEROES, an online community for women. SHEROES started as an online career ecosystem for women. As time progressed Chahal witnessed conversations beyond career and moved towards women-centric themes. Chahal decided to pivot it into an online community for women. Her growth strategy for SHEROES has primarily been driven by serial acquisitions coupled with dispersed efforts on organic growth. In the meanwhile, Chahal had harboured an ambition to bring 100 million users to SHEROES by the year 2024. In a period spanning from 2016–2020, SHEROES acquired six niche women-centric companies. SHEROES grew to be a community of 1 million users to 20+million women users by 2020. On the other hand, the industry leader, Mogul used a diametrical approach to grow the platform into 30+million users by 2020. It had primarily used organic growth strategies such as content development, designing courses, referrals and many more. However, Chahal found herself in a dilemma when a reporter posed a question to Chahal. Chahal’s growth strategy depended on acquisitions, coupled with less effort in organic growth. Conversely, Mogul grew primarily via organic growth strategies. The reporter’s question forced her to question and revisit her growth strategies. She wondered if a target of 100 million users could be achieved with the acquisition as a major driver and less effort invested in organic growth or whether it might be better to make organic growth the key growth strategy while pushing acquisitions to the back seat. The uniqueness of the case lies in the female protagonist who is trying to build a larger-than-life community primarily via acquisitions with little effort on organic growth. Such a phenomenon has rarely been explored in teaching cases. The case is based on secondary data and the information is available in the public domain. Complexity academic level The case is designed for post-graduate students in the entrepreneurship curriculum. Within entrepreneurship, it is well-suited for use in specialised courses on “growth of an entrepreneurial venture” or “entrepreneurial strategies”. An instructor may take it up in the middle of the module as students would have familiarised themselves with various growth strategies. An instructor may use the case for a very niche course such as entrepreneurship through acquisition. An instructor may take it up as an introductory case in such a course. It can also be used in the executive programme aimed at “women entrepreneurship”, “community-based model” and “serial acquisitions” to teach how women or founders create and grow entrepreneurial ventures with acquisitions or communities as their focal tenet. The case has been tested in the authors’ post-graduate student’s entrepreneurship course. An instructor can use it when the instructor wants to discuss the various growth strategies available to an entrepreneurial firm. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 3: Entrepreneurship.

Corporate reputation and retail bank selection: the moderating role of brand image

2019 ◽  
Vol 48 (2) ◽  
pp. 109-127 ◽  
Author(s):  
Bedman Narteh ◽  
Mahama Braimah
Keyword(s):  
Service Provider ◽  
Corporate Reputation ◽  
Structural Equation ◽  
Banking Sector ◽  
Brand Image ◽  
Retail Banking ◽  
Content Type ◽  
The Relationship ◽  
Moderating Role

Purpose Even though scholars have proposed multiple dimensions to measure corporate reputation, the relationship between these dimensions and service provider selection has received a dearth of research. Moreover, the moderating role of brand image on this relationship has hardly been considered. The purpose of this paper is to fill these gaps in the literature. Design/methodology/approach The study employed a quantitative approach, collecting data from 540 retail bank customers using surveys. Results were analyzed using structural equation modelling in AMOS. Findings The study found out that emotional engagement, corporate performance, customer centricism and service quality directly predicted customer selection of retail banks in Ghana. The results further indicated that brand image moderates the relationship between social and ethical engagement, which was not directly significant and bank selection. Practical implications The findings of the study indicate that some of the dimensions of corporate reputation have a direct impact on bank selection by customers, and that brand image could also be used to improve social and ethical dimension of corporate reputation to ensure bank selection by retail customers. The study thus provides practical guidelines for managing corporate reputation to achieve retail bank selection in Ghana. Originality/value The paper provides support to some of the prior studies on corporate reputation in the retail banking sector. Thus, the study provides useful insights into how corporate reputation can be managed to ensure service provider selection by retail bank customers.

Consumers’ reactions to cross-border acquisitions

2019 ◽  
Vol 122 (2) ◽  
pp. 655-677
Author(s):  
Riccardo Resciniti ◽  
Michela Matarazzo ◽  
Gabriele Baima
Keyword(s):  
Experimental Design ◽  
Corporate Reputation ◽  
Design Methodology ◽  
Consumer Perceptions ◽  
Psychic Distance ◽  
Target Firm ◽  
Content Type ◽  
Cross Border ◽  
Acquiring Firms

Purpose The purpose of this paper is to focus on consumers’ reactions to cross-border acquisitions (CBA) by exploring the role of consumer perceptions of the psychic distance between the country of the acquirer and that of the target firm when the acquiring corporation has a good or poor reputation. Design/methodology/approach A 2×2 experimental design which manipulated psychic distance and acquirer’s corporate reputation was conducted in Italy. The study considers an Italian food target firm and compares four foreign acquiring firms with different combinations of corporate reputation (good/poor) and psychic distance to Italy (small/large). Findings The authors found that the degree of psychic distance between the countries of the acquiring and targeted firms was inversely related to Italian consumers’ intentions to repurchase the products of the post-acquisition target, and unrelated to the acquirer’s corporate reputation. Originality/value This is the first study focusing on psychic distance in the context of CBA, especially from the perspective of consumer behavior, which can help to better understand certain negative reactions toward the acquisition of a business.

The choice of growth method: strategies and resources

2014 ◽  
Vol 27 (1) ◽  
pp. 30-45 ◽  
Author(s):  
Marta Ortiz-de-Urbina-Criado ◽  
Luis Ángel Guerras-Martín ◽  
Ángeles Montoro-Sánchez
Keyword(s):  
Latin American ◽  
Growth Strategy ◽  
Previous Experience ◽  
Growth Options ◽  
Content Type ◽  
Organic Growth ◽  
European Experience ◽  
Growth Method ◽  
Prior Literature ◽  
External Growth

Purpose The purpose of this paper is to investigate the effect of a firm's growth strategy (specialization and diversification) and its specific resources, such as intangible assets and previous experience in the choice of growth method (organic or external). Design-methodology-approach The paper analyses 859 external growth arrangements and 1,057 cases of organic growth. A binomial logistic regression is used to test the hypotheses. Findings Results show that firms prefer to grow internally when their growth strategy is specialization, but prefer external growth methods – such as mergers, acquisitions and alliances – when their growth strategy is diversification and they have previous experience in these methods. Research limitations-implications This study applies only to the European case and could be extended to Latin American companies for a comparative analysis. Practical implications This paper may help managers to identify important factors and issues to be considered when deciding upon a growth method. The European experience can be useful for Latin American companies following a similar growth strategy. Originality-value The results confirm a large part of the prior literature, but also go a stage further by including in the same study all the growth options available to a firm and providing empirical evidence of each one's preference according to the different situations analysed.

Effects of customer-based corporate reputation on perceived risk and relational outcomes: empirical evidence from gender moderation in fashion retailing

2017 ◽  
Vol 26 (3) ◽  
pp. 227-238 ◽  
Author(s):  
Gianfranco Walsh ◽  
Mario Schaarschmidt ◽  
Stefan Ivens
Keyword(s):  
Corporate Reputation ◽  
Perceived Risk ◽  
Structural Equation ◽  
Online Survey ◽  
Equation Modeling ◽  
Firm Reputation ◽  
Content Type ◽  
Relational Outcomes ◽  
Customer Outcomes

Purpose Given the strategic importance of firm reputation because of its potential for value creation, extant reputation research focuses on favorable customer outcomes. This study proposes and tests a model that relates the customer-based corporate reputation (CBR) of fashion retailers to customer-perceived risk and two relational outcomes – trust and commitment. In addition, this study aims to test whether or not the hypothesized paths are equally strong for male and female shoppers. Design/methodology/approach Data for this study were collected through an online survey approach. Using a sample of more than 300 retail customers and structural equation modeling, the authors tested the hypotheses. Findings Drawing on previous research, the commitment–trust theory of relationship marketing and signaling theory, the authors find support for direct and indirect links between retailers’ reputation and relational outcomes, the intervening role of perceived risk and the partially moderational role of gender. Practical implications The findings of this research suggest that a retailer’s positive reputation can reduce customers’ risk and engender trust, which in turn promotes customer commitment. Originality/value A growing number of examples suggests that retailers (specially fashion retailers) need to manage their reputation, which can come under threat in myriad ways, and its outcomes. However, so far, no individual study empirically investigated any of these reputation outcomes simultaneously or considered gender differences. Thus, the authors address an important research gap by examining the mechanism through which CBR affects relevant customer outcomes and by considering contextual factors.

KKCL: exploring growth opportunities

2015 ◽  
Vol 5 (4) ◽  
pp. 1-11 ◽  
Author(s):  
Jyoti Kainth ◽  
Gautam Kainth
Keyword(s):  
Subject Area ◽  
Growth Strategy ◽  
Situational Analysis ◽  
Product Management ◽  
Growth Strategies ◽  
Content Type ◽  
Data Points ◽  
Fashion Apparel ◽  
To Come ◽  
Internal And External Factors

Subject area Product Management, Marketing Strategy, Growth Strategies. Study level/applicability Bachelor of Business Studies, MBA, Executive MBA. Case overview The case documents the humble beginning of Kewal Kiran Clothing Limited (KKCL) in 1981 to its current position as a leading fashion apparel brand in India. However, competition from new national players, emergence of global players in India, private labels of retailers and dawn of Internet retailing has created significant growth challenges for the firm. Mr Jain, the Managing Director of KKCL, is contemplating the growth strategies for the firm and possible changes in the business model, as he is developing the 2014-2015 strategic plan for KKCL. This is imperative to reach the ambitious sales target of INR 10 billion by 2018-2019. The students are expected to assess the performance of KKCL on multiple quantitative and qualitative data points given in the case and exhibits. It encourages them to come up with possible growth strategies for the firm. Expected learning outcomes The case is expected to guide students in comprehending the multi-thronged challenges pertaining to fashion apparel industry; in Situational Analysis of the firm, which includes assessing internal and external factors; and in recommending the best possible growth strategy after due evaluation and deliberation using Ansoff's Matrix. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Yuppiechef: from clicks to bricks – an omnichannel approach for a South African business

2019 ◽  
Vol 9 (3) ◽  
pp. 1-17
Author(s):  
Mignon Reyneke ◽  
Claire Barnardo
Keyword(s):  
Learning Outcomes ◽  
South African ◽  
Business Students ◽  
Growth Strategy ◽  
Master Of Business Administration ◽  
Content Type ◽  
Teaching Case ◽  
Academic Level ◽  
Buying Behaviour

Learning outcomes The learning outcomes are as follows: understanding online, traditional and omnichannel retail and the challenges and benefits of each method; evaluating the effect of consumer buying behaviour on a company’s growth strategy; assessing the effect of changing industry dynamics and technology on consumer behaviour; and understanding the role of consistent customer experience across different retail mediums. Case overview/synopsis This case looks at Yuppiechef, a successful e-commerce business, and their move from “clicks to bricks” with the introduction of retail stores. Founder and CEO of Yuppiechef, Andrew Smith, shares the current business status and considers how to maintain the brand’s culture with the growth of retail and being an omnichannel pioneer. Complexity academic level The primary target audience for this teaching case is postgraduate business students, especially students of digital marketing, strategy and e-commerce. This teaching case is intended to be used as case study in postgraduate business programmes such as Master of Business Administration (MBA), a specialist masters’ programme such as MM (Entrepreneurship), post-graduate diploma in management (PGDip), as well as selected executive education programmes. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 8: Marketing.

scholarly journals The Tide that lifts all boats? Acquisitions and CEO-TMT pay disparity in the Netherlands

2018 ◽  
Vol 56 (9) ◽  
pp. 2038-2059 ◽  
Author(s):  
Padma Rao Sahib ◽  
Gerwin Van der Laan ◽  
Hans Van Ees
Keyword(s):  
The Netherlands ◽  
Firm Growth ◽  
Firm Strategy ◽  
Two Dimensions ◽  
Managerial Compensation ◽  
Growth Strategies ◽  
Content Type ◽  
Fine Grained ◽  
Organic Growth ◽  
Pay Disparity

Purpose The purpose of this paper is to examine how firm growth, and its decomposition into acquisitive and organic growth, can serve as an antecedent to the disparity in pay between the CEO and other top management team (TMT) members. Design/methodology/approach Drawing on tournament theory, the authors argue that acquisitive and organic growth strategies have different effects on CEO-TMT pay disparity. Findings The authors find that acquisitive growth, measured through the number and size of acquisitions, increases CEO-TMT pay disparity while organic growth has no effect on CEO-TMT pay disparity. Practical implications The findings, based in the context of the Netherlands, imply that boards in their monitoring activity may need to take into account the potential incentive effects of acquisitive activity as CEOs may have a greater motivation to engage in acquisitions than their fellow TMT members. Originality/value This paper contributes to the literature on relative compensation and incentives and the literature on managerial compensation and firm strategy. To investigate the role of firm growth in increasing CEO-TMT pay disparity, the authors adopt a fine-grained approach along two dimensions. First, the authors disaggregate firm growth into organic and acquisition driven firm growth. Second, the authors disaggregate pay disparity in these components.

Up-Fuse: International growth of an Egyptian eco-friendly social enterprise

2022 ◽  
Vol 12 (1) ◽  
pp. 1-24
Author(s):  
Ayman Ismail ◽  
Seham Ghalwash ◽  
Noha El Sebaie
Keyword(s):  
Consumer Behavior ◽  
International Business ◽  
Social Enterprise ◽  
Marketing Strategies ◽  
Social Enterprises ◽  
Growth Strategy ◽  
The Other ◽  
Growth Strategies ◽  
Content Type ◽  
Academic Level

Learning outcomes The case is meant as a way for students to develop ideas related to the challenges facing environmental eco-friendly social enterprises that sell their products in a country like Egypt where consumers are way behind considering the value of their products. In response to these challenges, students learn to evaluate the company status quo by analyzing its weaknesses, strengths and opportunities to grow and expand geographically to a new market. Students also learn about the growth expansion strategies and internationalization modes, options and associated barriers. Accordingly, they can plan the marketing strategies associated with entering this new market for up-cycled products. Objective 1: Analyze the international geographical growth alternative for an enterprise that improves its scalability applying weaknesses, strengths, threats and opportunities analysis. Objective 2: Propose a strategic plan for growth and scalability. Objective 3: Discuss the various modes of doing business in foreign countries. Recommend an internationalization mode for a social enterprise to explore in a new market. Objective 4: Assess the possible barriers associated with internationalization modes and how to overcome them. Objective 5: Propose marketing strategies for an eco-friendly enterprise to enhance its efficiency and effectiveness in the international host market. Other topics that might be discussed in this case include consumer behavior toward environmentally friendly products. Pricing challenges faced by ecologically friendly firms in developing countries. Case overview/synopsis Rania and Yara were inspired by Germany’s approach to waste reduction, particularly plastic bags. In 2017, after winning several competitions and awards, Up-Fuse was officially established as a social enterprise. The entrepreneurs faced great challenges selling sustainable products made of plastic waste to Egyptian consumers. Egyptian consumers were not fully aware of the value of eco-friendly products which presented a great challenge for Up-Fuse to grow and sell their products in Egypt. After shifting its pricing strategy and expanding beyond the local recycled product markets, Up-Fuse further faced fierce competition from well-established local and international brands with larger market shares. Thus, most of Up-Fuse’s sales were generated from expats and foreigners. In response to local obstacles and limitations, Rania began to consider targeting international markets. Rania thought it was the opportune time to drive growth through geographic expansion. After all, in 2020, Up-Fuse had some minor success when the co-founders experimented with exporting their products to the US market. Rania’s co-founder Yara, on the other hand, felt that the enterprise was not yet ready to enter a new market and it would be wiser to emphasize growth in the local Egyptian market. The co-founders were torn between two growth strategies. On one hand, they faced intense local competition for their products. On the other, expanding by entering a new market came with many challenges. Which growth strategy should Up-Fuse adopt? How could Up-Fuse determine which market to penetrate? What were the possible scalability challenges they faced by entering a new market? How could Up-Fuse reach and increase their international customer base abroad? What was the best marketing strategy for their products? Complexity academic level This case would be appropriate for graduate students enrolled in marketing, consumer behavior, international marketing, international business and social entrepreneurship courses. This case is written at a graduate level and would also be appropriate for use in customized or short programs. Supplementary materials Teaching notes are available for educators only. Subject code CCS 5: International Business.

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