The impacts of acquisition modes on achieving customer behavioral loyalty: an empirical analysis of the credit card industry from China

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yaxin Ming ◽  
Jing (Elaine) Chen ◽  
Chenxi Li
Keyword(s):  
Credit Card ◽  
Service Industry ◽  
Negative Relationship ◽  
Marketing Practice ◽  
Data Set ◽  
Content Type ◽  
Behavioral Loyalty ◽  
Joint Influence ◽  
The Gift ◽  
Negative Effect

PurposeThis study aims to investigate the effect of acquisition modes on customer behavioral loyalty to enrich our knowledge of the effectiveness of acquisition modes and how to better target customers in the service industry.Design/methodology/approachUsing a data set from a large commercial bank in China, this study conducts a series of empirical analyses to examine the impacts of two types of acquisition modes (i.e. the gift acquisition mode and customer referral) on customer behavioral loyalty.FindingsGift acquisition has a negative effect on customer behavioral loyalty, as measured by the dropout probability, consumption amount and consumption frequency. Furthermore, this negative relationship could be weakened if the customer is referred by an existing customer.Originality/valueAlthough prior studies have investigated the effectiveness of some acquisition modes in terms of customer loyalty, customer acquisition through the provision of gifts, which is widely implemented in marketing practice, has not been well investigated. This study addresses this research gap and identifies the joint influence of acquisition modes on customer behavioral loyalty, further enriching our knowledge of the effectiveness of different acquisition modes.

scholarly journals Crime and social media

2019 ◽  
Vol 32 (5) ◽  
pp. 1215-1233 ◽  
Author(s):  
Simplice Asongu ◽  
Jacinta Nwachukwu ◽  
Stella-Maris Orim ◽  
Chris Pyke
Keyword(s):  
Social Media ◽  
Negative Relationship ◽  
Sub Saharan Africa ◽  
Quantile Regressions ◽  
Data Set ◽  
Middle Income ◽  
Content Type ◽  
Income Levels ◽  
Sub Saharan ◽  
Development Outcomes

PurposeThe purpose of this paper is to complement the scant macroeconomic literature on the development outcomes of social media by examining the relationship between Facebook penetration and violent crime levels in a cross-section of 148 countries for the year 2012.Design/methodology/approachThe empirical evidence is based on ordinary least squares (OLS), Tobit and quantile regressions. In order to respond to policy concerns on the limited evidence on the consequences of social media in developing countries, the data set is disaggregated into regions and income levels. The decomposition by income levels included: low income, lower middle income, upper middle income and high income. The corresponding regions include: Europe and Central Asia, East Asia and the Pacific, Middle East and North Africa (MENA), Sub-Saharan Africa and Latin America.FindingsFrom OLS and Tobit regressions, there is a negative relationship between Facebook penetration and crime. However, quantile regressions reveal that the established negative relationship is noticeable exclusively in the 90th crime quantile. Further, when the data set is decomposed into regions and income levels, the negative relationship is evident in the MENA while a positive relationship is confirmed for Sub-Saharan Africa. Policy implications are discussed.Originality/valueStudies on the development outcomes of social media are sparse because of a lack of reliable macroeconomic data on social media. This study primarily complemented three existing studies that have leveraged on a newly available data set on Facebook.

Minding the gap: the effect of CEO underpayment on firm-specific knowledge

2020 ◽  
Vol 24 (9) ◽  
pp. 2107-2125
Author(s):  
Linlin Wang ◽  
Zhaofang Chu ◽  
Wan Jiang ◽  
Yifan Xu
Keyword(s):  
Ceo Compensation ◽  
Equity Theory ◽  
Chief Executive ◽  
Specific Knowledge ◽  
Data Set ◽  
Content Type ◽  
Knowledge Based ◽  
Negative Effect ◽  
Compensation Gap ◽  
Specific Human Capital

Purpose This study aims to build on equity theory to assess the effect of chief executive officer (CEO) underpayment on the accumulation of firm-specific knowledge, accounting for the moderating effects of the CEO compensation gap and the clarity of the board’s informal hierarchy. Design/methodology/approach This study starts with all firms listed in the Execucomp database for the period 1992 to 2006. Then, all data sources are merged and entries with missing information are excluded. The final data set used for model estimations includes 1,152 firm-year observations. The command xtreg in Stata 12 with the fixed-effect option (fe) is used to estimate the relationship between CEO underpayment and firm-specific knowledge. Findings This study proposed and examined the role of CEO underpayment in discouraging CEO willingness to invest firm-specific human capital and, accordingly, to adopt a strategy of accumulating lower levels of firm-specific knowledge assets. The empirical analyses strongly support this argument. Moreover, CEO compensation gaps and the informal hierarchy of boards negatively moderated this relationship. That is, CEO underpayment had a weaker negative effect on firm-specific knowledge when the CEO compensation gap and the clarity of the board’s informal hierarchy were high. Originality/value Prior studies from the knowledge-based perspective have focused on the importance of firm-specific knowledge in enabling a firm to achieve superior financial performance. However, relatively little attention has been paid to CEOs’ willingness to accumulate firm-specific knowledge. The present study contributes to the knowledge-based view of the firm. This study integrates equity theory with the knowledge-based view of the firm by highlighting how unfair compensation of CEOs may discourage them to fully realize a firm’s potential to generate specific knowledge. By incorporating the fairness issue of CEO compensation into the knowledge-based view, this study contributes to a deeper understanding of the origins of firm-specific knowledge.

Talent management under a big data induced revolution

2019 ◽  
Vol 57 (8) ◽  
pp. 2010-2031 ◽  
Author(s):  
Kaidi Zhang ◽  
Xiao Jia ◽  
Jin Chen
Keyword(s):  
Big Data ◽  
Servant Leadership ◽  
Boundary Conditions ◽  
Negative Relationship ◽  
Talent Management ◽  
Mediating Effect ◽  
Hierarchical Regression ◽  
Content Type ◽  
Negative Effect ◽  
The Relationship

PurposeThe emerging natures of big data – volume, velocity, variety, value and veracity – exert higher stress on employees and demand greater creativity from them, causing extreme difficulties in the talent management of organizations in the big data era. The purpose of this paper is to explore the effect of challenge stressors on creativity and the boundary conditions of the relationship.Design/methodology/approachMultisource data were collected including 593 followers and their 98 supervisors from organizations that are confronting a big data induced management revolution. Hierarchical regression analysis and bootstrapping analysis were used to test the mediation and moderation mechanism.FindingsThe results showed that job burnout mediated the negative relationship between challenge stressors and creativity and that this indirect effect was attenuated by an employee’s core self-evaluation (CSE) and servant leadership. In contrast, whether work engagement mediated the relationship between challenge stressors and creativity was contingent on the level of an employee’s CSE and servant leadership. Specifically, the mediating effect was significant only when an employee’s CSE or servant leadership was high.Originality/valueThe results contribute to our understanding of the relationship between challenge stressor and creativity in the big data era. Specifically, relying on the job demands–resources model, this study empirically opens the “black box” between challenge stressors and creativity by exploring two opposing intermediate mechanisms. In addition, this study reveals boundary conditions by investigating dispositional and contextual factors that can accentuate the positive effect while attenuating the negative effect of challenge stressors on employee creativity.

Series of successive B2B contracts: impact on contract length and rental rate

2019 ◽  
Vol 34 (7) ◽  
pp. 1570-1579 ◽  
Author(s):  
Shanfei Feng ◽  
Trichy V. Krishnan
Keyword(s):  
Service Sector ◽  
Continuous Series ◽  
Economic Factors ◽  
Data Set ◽  
Content Type ◽  
Oil Drilling ◽  
Service Contracts ◽  
Negative Effect ◽  
Rental Rate ◽  
Contract Length

Purpose Companies in the B2B service sector often sign a series of successive contracts instead of one long contract with their vendors. Economic researchers have shown how the lengths of stand-alone contracts are influenced by economic factors such as asset specificity and economic volatility, but have not researched into contracts that are part of a continuous series. The purpose of this study was to explore if being a part of a series of contracts influences the length of the focal contract and the rental rate. Design/methodology/approach The authors use data collected from the oil drilling industry to empirically test their hypotheses. The data set consists of 2,621 contracts involving jack-up rig hiring in the Gulf of Mexico region. Findings The authors empirically show that the series duration affects both the length and rental rate of each constituent contract, even after considering all other plausible economic factors. Specifically, the duration of a series has a positive effect on the length and a negative effect on the rental rate of the constituent contract. Originality/value Although contract length is as vital as the rent in B2B service transactions, it is rather unfortunate that marketing scholars have not researched much into this topic. The findings offer a new insight into the forces that shape the B2B service contracts and thus help the B2B managers make a better decision in service contracts.

Effects of two staffing decisions on the performance of MNC subsidiaries

2014 ◽  
Vol 2 (1) ◽  
pp. 85-101 ◽  
Author(s):  
Naoki Ando ◽  
Yongsun Paik
Keyword(s):  
Multinational Corporations ◽  
Foreign Subsidiary ◽  
Foreign Subsidiaries ◽  
Data Set ◽  
Subsidiary Performance ◽  
Content Type ◽  
Host Country Nationals ◽  
Negative Effect ◽  
Curvilinear Relationships ◽  
The Relationship

Purpose – The purpose of this paper is to examine the relationship between foreign subsidiary staffing and subsidiary performance by focussing on two staffing practices: first, the ratio of parent country nationals (PCNs) to foreign subsidiary employees and second, the number of PCNs assigned to the foreign subsidiary. Design/methodology/approach – Hypotheses predicting curvilinear relationships between the assignment of PCNs and subsidiary performance are tested using a panel data set consisting of 4,858 foreign subsidiaries of Japanese multinational corporations (MNCs). Findings – The results demonstrate that the two staffing practices have different effects on subsidiary performance. The ratio of PCNs to foreign subsidiary employees has an inverted U-shaped relationship with subsidiary performance, while the number of PCNs assigned to the subsidiary has a linear and negative effect on subsidiary performance. Research limitations/implications – The results of this study are subject to limitations. First, the sample used in this study consists solely of the foreign subsidiaries of Japanese firms. This research design limits the generalizability of the findings of this study. Second, other decisions related to subsidiary staffing such as the ratio of PCNs in the subsidiary's top management team need to be examined to advance understandings of the relationship between subsidiary staffing and subsidiary performance. Practical implications – MNCs need to identify the appropriate number of PCNs at which they can achieve the optimal trade-off with the PCN ratio to enhance the competitiveness and the performance of a foreign subsidiary. In doing so, they need to take into consideration that an increase in the number of PCNs has an immediate negative effect on the workplace morale of host country nationals. Originality/value – This study incorporates two staffing practices into its analyses and shows that they have different implications for subsidiary performance. The results suggest that focussing on one staffing practice alone limits understanding of the complex relationship between foreign subsidiary staffing and subsidiary performance.

The effects of board experience and independence on mitigating agency conflict

2017 ◽  
Vol 7 (4) ◽  
pp. 445-467
Author(s):  
Ebenezer Agyemang Badu ◽  
Kingsley Opoku Appiah
Keyword(s):  
Resource Dependence ◽  
Generalized Method Of Moments ◽  
Negative Relationship ◽  
Board Independence ◽  
Corporate Board ◽  
Data Set ◽  
Content Type ◽  
Agency Conflict ◽  
Human And Social Capital ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of board experience and independence on mitigating agency conflict between shareholders and managers. Design/methodology/approach This paper uses a panel data of 137 firms listed on stock exchanges in Ghana and Nigeria over a period of seven years. System generalized method of moments and other estimation techniques were adopted for the study. Using agency and resource dependence theories, board experience and independence ignored in previous studies are selected for the study. Findings The findings of this paper indicate a negative and statistically significant relationship between board experience, board independence, and agency conflict. A further examination using an agency score computed from the principal factor analysis of the four main agency proxies indicates a significant and negative relationship between board independence and agency conflict, but a negative and statistically non-significant relation between board experience and agency conflict. Practical implications The authors’ evidence has important implications for countries that are currently or contemplating pursuing board reforms to recommend the appointment of more independent and experience directors to corporate board. Originality/value This paper introduces a new proxy for assessing human and social capital of directors to test the integration hypothesis of a unique data set from Ghana and Nigeria toward mitigating agency conflict.

Franchise systems and lobbying: implications for Olsonian collective action theory

2018 ◽  
Vol 56 (11) ◽  
pp. 2357-2372
Author(s):  
Richard S. Brown
Keyword(s):  
Collective Action ◽  
Action Theory ◽  
Negative Relationship ◽  
System Size ◽  
Industry Structure ◽  
Political Activity ◽  
Corporate Political Activity ◽  
Data Set ◽  
Content Type ◽  
Political Activities

Purpose Previous research combining corporate political activity and collective action theory has focused solely on industry structure and its role in predicting group lobbying or PAC participation. The purpose of this paper is to use a different context—franchise systems—to apply Olsonian collective action theory to political activities. Design/methodology/approach Using a random-effects technique in STATA on an unbalanced panel data set, this paper empirically models the effects of franchise system size and degree of franchising on the level of lobbying intensity. Findings Since franchise systems are made up of differing unit ownership structure, the author first model if those systems that are fully franchised lobby less than those with franchisor unit ownership (supported). Next, since collective action theory predicts that more participants in a space will lead to less collective action, the author predict that franchise systems with larger unit counts will lobby less than those with smaller counts (not supported). Finally, the author test the interaction of these two effects as systems that are fully franchised and of higher unit totals should have an even greater negative relationship with political activity (supported). Originality/value This paper uses both a novel data set and a novel context to study collective action. Previous research has utilized an industry structure context to model the level of lobbying and collective action, while the current research uses an analogous logic, but in the context of franchise systems.

The implications of the revised code of corporate governance on firm performance

2015 ◽  
Vol 5 (3) ◽  
pp. 350-380 ◽  
Author(s):  
Abdifatah Ahmed Haji ◽  
Sanni Mubaraq
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Ownership Structure ◽  
Market Performance ◽  
Negative Relationship ◽  
Future Research ◽  
Data Sets ◽  
Data Set ◽  
Content Type ◽  
The One

Purpose – The purpose of this paper is to examine the impact of corporate governance and ownership structure attributes on firm performance following the revised code on corporate governance in Malaysia. The study presents a longitudinal assessment of the compliance and implications of the revised code on firm performance. Design/methodology/approach – Two data sets consisting of before (2006) and after (2008-2010) the revised code are examined. Drawing from the largest companies listed on Bursa Malaysia (BM), the first data set contains 92 observations in the year 2006 while the second data set comprises of 282 observations drawn from the largest companies listed on BM over a three-year period, from 2008-2010. Both accounting (return on assets and return on equity) and market performance (Tobin’s Q) measures were used to measure firm performance. Multiple and panel data regression analyses were adopted to analyze the data. Findings – The study shows that there were still cases of non-compliance to the basic requirements of the code such as the one-third independent non-executive director (INDs) requirement even after the revised code. While the regression models indicate marginal significance of board size and independent directors before the revised code, the results indicate all corporate governance variables have a significant negative relationship with at least one of the measures of corporate performance. Independent chairperson, however, showed a consistent positive impact on firm performance both before and after the revised code. In addition, ownership structure elements were found to have a negative relationship with either accounting or market performance measures, with institutional ownership showing a consistent negative impact on firm performance. Firm size and leverage, as control variables, were significant in determining corporate performance. Research limitations/implications – One limitation is the use of separate measures of corporate governance attributes, as opposed to a corporate governance index (CGI). As a result, the study constructs a CGI based on the recommendations of the revised code and proposes for future research use. Practical implications – Some of the largest companies did not even comply with basic requirements such as the “one-third INDs” mandatory requirement. Hence, the regulators may want to reinforce the requirements of the code and also detail examples of good governance practices. The results, which show a consistent positive relationship between the presence of an independent chairperson and firm performance in both data sets, suggest listed companies to consider appointing an independent chairperson in the corporate leadership. The regulatory authorities may also wish to note this phenomenon when drafting any future corporate governance codes. Originality/value – This study offers new insights of the implications of regulatory changes on the relationship between corporate governance attributes and firm performance from the perspective of a developing country. The development of a CGI for future research is a novel approach of this study.

Introduction of the trend-adjusted crop insurance program

2017 ◽  
Vol 77 (3) ◽  
pp. 412-428 ◽  
Author(s):  
HongSeok Seo ◽  
Taehoo Kim ◽  
Man-Keun Kim ◽  
Bruce A. McCarl
Keyword(s):  
Crop Insurance ◽  
Data Set ◽  
Content Type ◽  
Yield Level ◽  
Before And After ◽  
Production History ◽  
Negative Effect ◽  
Risk Protection ◽  
The Individual ◽  
Changes Over Time

Purpose Recently, USDA-RMA introduced a Trend Adjusted-Actual Production History (TA-APH) program, which increases APH by a trend factor to cover yield changes over time. The purpose of this paper is to examine the effects of the TA-APH program on farmer participation, coverage election, and risk by analyzing data before and after the program. Design/methodology/approach Since the program was carried out in selected counties, the authors employ a difference in differences approach doing comparisons of insurance participation and coverage levels between eligible and ineligible counties. Findings The authors find that farmers within the counties where the TA-APH program was available experienced an increase in insured acres of 3 percent for corn and 5 percent for soybeans. The authors also find the farmers eligible for the program purchased lower coverage levels relative to those not eligible. However, the magnitude of that negative effect is relatively small, −0.9 percent in corn and −1.3 percent in soybeans. Collectively the evidence shows the TA-APH program does increase the guaranteed yield level mitigating farmer risk. Research limitations/implications The data set used only permitted analysis at the county level, thus the authors could not look at the individual farmer choices. Practical implications The results suggest that if a greater level of farmer risk protection is desired from crop insurance, the authors find that the trend adjustment as implemented was a successful way to achieve this. Originality/value This paper contributes to the literature on the crop insurance by evaluating the program controlling for a non-participating groups, farming experience, liability rates, and subsidy rates. In doing this, it fulfills an identified need to study the actual impact on participation rates and coverage levels elected.

Professional identity in service work: why front-line employees do what they do

2018 ◽  
Vol 28 (3) ◽  
pp. 315-335 ◽  
Author(s):  
Per Echeverri ◽  
Maria Åkesson
Keyword(s):  
Professional Identity ◽  
Service Industry ◽  
Service Work ◽  
Service Research ◽  
Contextual Knowledge ◽  
Data Set ◽  
Service Workers ◽  
Content Type ◽  
Wide Range ◽  
Cognitive Understanding

Purpose The purpose of this paper is to identify the key elements of professional identity in service work in order to provide more in-depth theoretical explanations as to why service workers do as they do while co-creating service. Design/methodology/approach This study takes a multi-perspective on professional identity, i.e. using both an employee and a customer perspective, arguing that the phenomenon mainly consists of what these interactants jointly do during the service interaction and of the meanings that are attributed to it. The authors draw on a detailed empirical study of professionals working at a customer centre. Methodologically, the study is based on practice theory, which helps us to illuminate and analyse both the micro practices and the meaning attributed to the professional identity of service workers. Findings The key elements of professional identity in service work are outlined within a framework that describes and explains three different facets of the service workers’ professional identity, i.e. as a core (i.e. individual resources, cognitive understanding, interaction), as conditions (i.e. service prerequisites), and as contour (i.e. demeanour and functions). Research limitations/implications The findings are based on an empirical data set from a public transport customer centre. As the results are limited to one context, they do not provide statistical generalizability. Although limited to one service industry, the findings may still be of high relevance to a wide range of service organisations. Practical implications The study shows the significance of managers not just talking about the importance of being service-minded; more exactly, a wide range of service prerequisites, beyond cognitive understanding, needs to be in place. It is crucial that service workers are given the time to develop their contextual knowledge of their customers, and of other parts of the service organisation. Originality/value This study offers original empirical contributions concerning the key elements of professional identity. An alternative conceptualization of professional identity is provided, through which the paper adds to service research, explaining more specifically what kinds of knowledge and skills are in use during the co-creation of services.

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