Dark side of joint R&D collaborations: dependence asymmetry and opportunism

2020 ◽  
Vol 35 (4) ◽  
pp. 741-755 ◽  
Author(s):  
Naiding Yang ◽  
Yue Song ◽  
Yanlu Zhang ◽  
Jingbei Wang
Keyword(s):  
Information Asymmetry ◽  
Empirical Test ◽  
Dark Side ◽  
Underlying Structure ◽  
Clear Understanding ◽  
Content Type ◽  
Multidimensional Construct ◽  
Cooperative Relationships ◽  
Dependence Asymmetry ◽  
The Impact

Purpose The purpose of this study is to enhance the comprehensive understanding of the roles of resource investments, explicit contracts and three components of guanxi (i.e. renqing, ganqing and mianzi) in asymmetric research and development (R&D) partnerships. Treating dependence asymmetry as a multidimensional construct, this study examines the moderating effects of these elements on the relationships between resources and information asymmetry and opportunism. Design/methodology/approach The study was executed by issuing questionnaires to R&D managers participating in R&D projects and collaborations in the Shanghai and Jiangsu provinces via e-mail and face to face surveys. A multiple regression analysis was used to test the hypotheses. Findings The empirical test generally supported the conceptual model and produced the following findings: first, resources and information asymmetry significantly and positively affect opportunism. Second, the partner’s resource investments can weaken the effect of resources and information asymmetry on the partner’s opportunism. Third, explicit contracts can reduce the impact of information asymmetry on the partner’s opportunism. Fourth, renqing and ganqing but not mianzi can weaken the influence of information asymmetry on the partner’s opportunism. Originality/value This study provides a comprehensive and clear understanding of how opportunism can be curbed by jointly considering resource investments, explicit contracts and guanxi in asymmetric R&D cooperative relationships. Moreover, dependence asymmetry and guanxi are measured as a multidimensional construct and reveal their underlying structure, which expands previous understandings of risk management in R&D collaborations.

Curbing electronic shopper perceived opportunism and encouraging trust

2017 ◽  
Vol 117 (10) ◽  
pp. 2210-2226 ◽  
Author(s):  
Sonia San-Martín ◽  
Nadia Jimenez
Keyword(s):  
Information Asymmetry ◽  
Structural Equation ◽  
Design Methodology ◽  
External Quality ◽  
Content Type ◽  
Theoretical Approaches ◽  
Quality Signals ◽  
The Impact ◽  
Relevant Factors ◽  
Analyze Data

Purpose Consumers can face a situation of information asymmetry in electronic shopping (ES). The purpose of this paper to examine the relationships between: relational variables such as satisfaction, trust and perceived opportunism; and website cues (cognitive signals such as security and personalization, and experiential signals, such as design and entertainment). Design/methodology/approach The paper opted for the structural equation methodology to analyze data collected from 447 Spanish e-shoppers. Findings Results show different factors that relate to satisfaction, trust and perceived opportunism in ES. Satisfactory experience with ES and entertainment emerge as the most relevant factors to achieve trust and prevent perceived opportunism in e-commerce. Originality/value The five contributions of this study are: the introduction of variables from several theoretical approaches to the study of an agency problem in e-commerce; the study of different ways to gain buyer trust and reduce perceived opportunism in an electronic shopper-vendor relationship; the application of signaling theory as part of the process of helping the principal (e-shopper) to solve their shopping problem in a context of information asymmetry; the analysis of the impact of external cues from e-vendor/site, which allows for a comparison between internal experiences and external quality signals; and the study of entertainment as an important hedonic variable in order to have satisfied and confident e-shoppers.

Information asymmetry and equity issue decision of low-leverage firms

2018 ◽  
Vol 44 (11) ◽  
pp. 1330-1346
Author(s):  
Bipin Sony ◽  
Saumitra Bhaduri
Keyword(s):  
Information Asymmetry ◽  
Equity Issue ◽  
Content Type ◽  
Equity Issues ◽  
Developed Economies ◽  
Tangible Assets ◽  
Credit History ◽  
The Impact ◽  
Role Of Information

Purpose The purpose of this paper is to investigate the role of information asymmetry in the equity issue decision of two categories of Indian firms with distinct levels of information asymmetry – levered firms and unlevered firms. Design/methodology/approach This paper proposes a novel empirical approach to compare these two categories of firms. Levered firms exposed to the debt markets are under the scrutiny of lenders, reducing their information asymmetry problems. On the other hand, unlevered firms, which are smaller firms with fewer tangible assets and no credit history suffers more information problems. The authors use a propensity score matching method to identify firms that share similar firm-specific characteristics in these groups and compare equity issues to analyze the impact of information asymmetry. Findings The results show that information asymmetry plays a key role in the equity issue decision of Indian firms. Additionally, the authors find that the trends and characteristics of low-leverage (LL) firms in India are comparable to the LL from developed economies, which is consistent with the findings that they face more information problems. Originality/value Unlike the conventional approach of using proxy variables to capture information asymmetry, this study uses a novel framework where the authors compare the equity issue decision of similar firms in two categories with different degrees of information asymmetry.

scholarly journals Impact of supply chain integration on halal food supply chain integrity and food quality performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohd Helmi Ali ◽  
Mohammad Iranmanesh ◽  
Kim Hua Tan ◽  
Suhaiza Zailani ◽  
Nor Asiah Omar
Keyword(s):  
Supply Chain ◽  
Food Safety ◽  
Food Quality ◽  
Food Supply ◽  
Structural Equation ◽  
Clear Understanding ◽  
Food Supply Chain ◽  
Content Type ◽  
Halal Food ◽  
The Impact

Purpose The current complex halal food supply chain (SC) has caused food scandals, which have illustrated the weakness of multiple food quality standards and certification and audits in ensuring food safety. Drawn on the resource-based view (RBV) theory, the purpose of this study is to explore the impacts of SC integration (SCI) on halal food SC integrity and, consequently, food quality. Design/methodology/approach Empirical data were collected from 275 halal-certified food companies in Malaysia and analysed using structural equation modelling – SmartPLS3.0. Findings The results confirmed that SCI, including internal, supplier and customer integrations, has significant effects on the dimensions of the halal food SC integrity which, in turn, lead to halal food safety and quality. Practical implications The importance of SCI in halal food SC is highlighted in this study. The impact of SCI is contexted in halal food SC integrity and food quality. Therefore, it provides a clear understanding to managers of SC applicability in the halal food industry. Originality/value Based on the RBV theory, this study contributes to the limited body of research of the relationships among SCI from the context of the halal industry with a specific focus on food supply chain integrity and food quality.

Brand awareness: revisiting an old metric for a new world

2017 ◽  
Vol 26 (5) ◽  
pp. 469-476 ◽  
Author(s):  
Jenni Romaniuk ◽  
Samuel Wight ◽  
Margaret Faulkner
Keyword(s):  
Market Share ◽  
Brand Management ◽  
Brand Awareness ◽  
Underlying Structure ◽  
Cross Sectional ◽  
Content Type ◽  
Country Level ◽  
Global Brand ◽  
The Impact ◽  
Over Time

Purpose Brand awareness is a pivotal, but often neglected, aspect of consumer-based brand equity. This paper revisits brand awareness measures in the context of global brand management. Design/methodology/approach Drawing on the method of Laurent et al. (1995), this cross-sectional longitudinal study examines changes in brand awareness over time, with sample sizes of approximately 300 whisky consumers per wave in three countries: United Kingdom, Taiwan and Greece. Findings There is consistency in the underlying structure of awareness scores across countries, and over time, extending the work of Laurent et al. (1995). Results show that a relevant operationalisation of brand awareness needs to account for the history of the brand. Furthermore, the nature of the variation of brand awareness over time interacts with a brand’s market share. Research limitations/implications When modelling the impact of brand awareness researchers need to consider two factors – the brand’s market share and whether a more stable or volatile measure is sought. This avoids mis-specifying the country-level contribution of brand awareness. Practical implications Global brand managers should be wary of adopting a “one size fits all” approach. The choice of brand awareness measure depends on the brand’s market share, and the desire for higher sensitivity or stability. Originality/value The paper provides one of the few multi-country investigations into brand awareness that can help inform global brand management.

The bright and dark sides of green customer integration (GCI): evidence from Chinese manufacturers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taiwen Feng ◽  
Hongyan Sheng ◽  
Minghui Li
Keyword(s):  
Financial Performance ◽  
Information Sharing ◽  
Positive Impact ◽  
Resource Dependence Theory ◽  
Dark Side ◽  
Opportunistic Behavior ◽  
Moderating Effects ◽  
Customer Integration ◽  
Content Type ◽  
The Impact

PurposeBased on resource dependence theory and transaction cost economics this study explores how green customer integration (GCI) affects financial performance via information sharing and opportunistic behavior, and the moderating effects of dependence and trust.Design/methodology/approachThis study develops a theoretical model and tests it using data from two-waved survey data of 206 Chinese manufacturers. The hypotheses were tested using hierarchical linear regression analysis.FindingsThe results show that GCI has a significant and positive impact on information sharing, but its impact on opportunistic behavior is insignificant. Notably, information sharing has a significant and positive impact on financial performance, while opportunistic behavior has an insignificant impact on financial performance. In addition, dependence negatively moderates the impact of GCI on information sharing and positively moderates the impact of GCI on opportunistic behavior. Trust negatively moderates the impact of GCI on opportunistic behavior.Originality/valueAlthough GCI has received widespread attention, how it affects a firm's performance remains unclear. Most previous studies have focused only on its bright side and ignored its dark side. This study highlights how GCI affects financial performance through information sharing and opportunistic behavior, and the moderating effects of dependence and trust. This enriches the understanding of how and under what conditions GCI affects a firm's performance.

Empirical classification of European Foundation for Quality Management (EFQM) model enabler sub-criteria using a quadrant matrix

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Narasimha Murthy ◽  
Kuldip Singh Sangwan ◽  
Nuggenahalli S. Narahari
Keyword(s):  
Quality Management ◽  
Organizational Context ◽  
Underlying Structure ◽  
Content Type ◽  
Assessment Scores ◽  
Business Results ◽  
Efqm Model ◽  
European Foundation ◽  
The Impact ◽  
First Time

PurposeThe purpose of this paper is to examine how sub-criteria of the European Foundation for Quality Management (EFQM) model is structurally connected and influence each other. This paper also tries to find the underpinning logics in the EFQM model.Design/methodology/approachThe study uses the empirical methodology based on assessment scores of 58 different organizations to gauge the underlying structure, develop the construct and establish interlinkages among the various sub-criteria in the EFQM model. Statistical analysis is used to find the impact on results and cross influencing of criteria at the sub-criteria level. The factorial analysis is carried out using the Doe technique to create factorial plots for result categories (customer results, people results, society results and business results). The approach is to unravel (1) the role played by each sub-criterion of the model, (2) the effects of sub-criteria on the results of the EFQM model and (3) the influence of sub-criteria on the managerial aspects of the model in an organizational context.FindingsThe EFQM sub-criteria are categorised as promoters, proponents, defenders or detractors based on their impact on the results and cross-influence on each other. The study unfolded seven sub-criteria positively impacting the results and one sub-criterion negatively impacting the results if not handled properly. Out of 32 sub-criteria, nine sub-criteria are influencing more than six other sub-criteria.Originality/valueThe paper investigates, for the first time: (1) the role played by each sub-criteria of the model; (2) the relationships that are produced between these sub-criteria on the EFQM results and (3) identify how such sub-criteria would influence the managerial aspects of the model in an organizational context. This research develops underlying logics in the EFQM model using Doe factorial methods for overcoming the multi-collinearity.

Does negative information in MD&A can reduce stock crash risk?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jianmai Liu
Keyword(s):  
Information Asymmetry ◽  
Information Disclosure ◽  
Stock Price ◽  
Negative Information ◽  
Bad News ◽  
Practical Significance ◽  
Crash Risk ◽  
Content Type ◽  
The Impact

Purpose As an important part of the disclosure of listed companies' annual reports, MD&A will disclose some "bad news" about the company. The purpose of this paper is to study whether such "bad news" can reduce information asymmetry and alleviate the risk of stock price crash remains to be seen. Design/methodology/approach Based on the sample of A-share listed companies from 2007 to 2016, the authors examine whether the negative information in MD&A could reduce stock price crash risk. Findings It is found that the negative information in MD&A does not reduce future crash, which indicates that the negative information in MD&A does not alleviate the information asymmetry. Further, it is also found this is due to the low readability of negative information which leads to the negative information not successfully released into the market timely. Only highly readable negative information can alleviate information asymmetry and suppress crash risk. In addition, the authors also find in the companies with more investor surveys negative tone is negatively correlated with crash risk, which means that investor surveys could help investors interpret the negative information in MD&A and alleviate stock price crash risk. Practical implications The practical significance of this article: this paper suggests that investors should carefully identify the quality of negative information in MD&A and pay attention to other quality characteristics besides credibility. This paper suggests that the regulator should pay attention not only to whether to disclose and the amount of disclosure but also to the quality of information disclosure, such as readability, so as to restrict management's strategic behavior in information disclosure. Originality/value First, different from previous studies on the impact of information disclosure on crash risk, this paper directly explores the impact of information in MD&A on stock price crash risk from the perspective of negative information disclosure that management most want to hide. It supplements the literature on the impact of information disclosure on stock price crash risk. Second, this paper studies the interaction between information tone and readability and its impact on the risk of stock price crash. Some studies believe that the credibility of negative news is higher and investors' reaction may be stronger. However, this paper finds that the disclosure of negative information may not be absorbed by the market because of the low readability. Third, this paper finds that investor surveys can help information users to interpret negative information and alleviate the risk of stock price crash, which shows that information disclosure of different channels will complement each other and improve information efficiency. Therefore, it advocates different information disclosure channels which has important practical significance for improving market pricing efficiency and reducing investment decision-making risk.

scholarly journals Leverage and firm investment: the role of information asymmetry and growth

2019 ◽  
Vol 27 (1) ◽  
pp. 56-73 ◽  
Author(s):  
Albert Danso ◽  
Theophilus Lartey ◽  
Samuel Fosu ◽  
Samuel Owusu-Agyei ◽  
Moshfique Uddin
Keyword(s):  
Information Asymmetry ◽  
High Growth ◽  
Firm Investment ◽  
Financial Leverage ◽  
Content Type ◽  
Growth Firms ◽  
The Impact ◽  
The Relationship ◽  
Role Of Information

PurposeThis paper aims to demonstrate how financial leverage impacts firm investment and the extent to which this relationship is conditional on the level of information asymmetry as well as growth.Design/methodology/approachThe paper relies on data from 2,403 Indian firms during the period 1995-2014, generating a total of 19,544 firm-year observations. Analysis is conducted by using various panel econometric techniques.FindingsDrawing insights from agency theories, the paper uncovers that financial leverage is negatively and significantly related to firm investment. It is also observed that the impact of financial leverage on firm investment is significant for high information asymmetric firms. Finally, the paper shows that the relationship between leverage and firm investment is significant for low-growth firms. However, no significant relationship is found between leverage and investment for high-growth firms.Originality/valueThis paper provides fresh evidence on the leverage–investment nexus and, to the authors’ knowledge, it the first paper to examine the extent to which this leverage–investment relationship is driven by the level of information asymmetry.

Paranoid personality and frontline employee’s proactive work behaviours: a moderated mediation model of empathetic leadership and perceived psychological safety

2020 ◽  
Vol 31 (1) ◽  
pp. 113-135
Author(s):  
Shaker Bani-Melhem ◽  
Faridahwati Mohd. Shamsudin ◽  
Rawan Mazen Abukhait ◽  
Samina Quratulain
Keyword(s):  
Customer Service ◽  
Personality Trait ◽  
Psychological Safety ◽  
Dark Side ◽  
Content Type ◽  
Customer Complaints ◽  
Moderated Mediation Model ◽  
Paranoid Personality ◽  
Willingness To Report ◽  
The Impact

PurposeThis study expands on research related to the dark side of personality traits by examining how individual dark personality affects proactive work behaviours. Specifically, the authors consider paranoia as a dark personality trait and propose that it negatively relates to perceived psychological safety and indirectly affects frontline employees' (FLEs) willingness to report customer complaints as well as their extra-role customer service. The authors also posit that empathetic leadership is a focal, contextual factor that mitigates the impact of paranoia on perceived psychological safety and, consequently, the willingness to report customer complaints and engage in extra-role customer service behaviour.Design/methodology/approachThe model was tested on a sample of 252 FLEs using process macro (Hayes, 2017) and AMOS. Data were collected from FLEs working in different hospitality organisations using a time-lagged design; supervisor-rated employee extra-role customer service was also measured.FindingsThe authors found that FLEs with a paranoid personality trait had a lesser sense of psychological safety at work, which reduced their willingness to engage in proactive work behaviours. However, this negative effect was mitigated by the presence of an empathetic leader.Originality/valueThe results are important because research has yet to determine which actions managers should take to counter the negative effects of dark personalities in the workplace.

The double-edge resource-based view of logistics performance and governance in Asian countries

2018 ◽  
Vol 30 (3) ◽  
pp. 652-668 ◽  
Author(s):  
Bee Hui Koh ◽  
Wai Peng Wong ◽  
Chor Foon Tang ◽  
Ming K. Lim
Keyword(s):  
Ordinary Least Squares ◽  
Moderating Effect ◽  
Dark Side ◽  
Series Data ◽  
Asian Countries ◽  
Trade Facilitation ◽  
Content Type ◽  
Effect Model ◽  
The Impact ◽  
The Relationship

PurposeAsia has been transformed into a well-regulated dynamic platform for trade and is today world’s fastest-developing economic region. However, the increasing cross-border economic activities create new opportunities for corruption. The purpose of this paper is to assess the impact of corruption on trade facilitation using logistics performance index (LPI). This paper also examines the moderating effect of governance or government effectiveness (GE) on the relationship between corruption and LPI within Asian countries.Design/methodology/approachA panel of time-series data from year 2007 to 2014 of 26 Asian countries was collected for analysis. Static linear panel models which comprised of pooled ordinary least squares, fixed-effect model and random-effect model were utilised to analyse the panel data.FindingsThe findings show that corruption significantly affects LPI and each of the six dimensions in LPI. The results also show that governance or GE has a moderating effect on the relationship between corruption and LPI.Practical implicationsThis study benefits Asian governments to gain a better understanding on influences of corruption on trade facilitation and triggering suggestions of a government role in the relationship. Practically, the results could be used as a guideline in improving national LPI. Besides, the findings could be used to support policy decision to modify corruption regulations at the national and regional levels.Originality/valueThis study reveals that the optimistic view of sands in the wheel overcomes the dark side of the grease in the wheel practices. To be corrupt free or less corrupt is a rare and inimitable resource capability that makes nations logistically competitive.

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