Analysis of Vertical Differentiation Strategy of a Monopolistic Company under Network Externality

SUMMARY In this study, we report two 2 × 2 between-subjects experiments that investigate the effect of strategic relevance of reported sustainability information and its assurance on nonprofessional investors' investment decisions. The first experiment manipulates strategic relevance of reported environmental, social, and governance (ESG) indicators between “high” and “low” by varying the company strategy (sustainability-based differentiation strategy versus cost leadership strategy unrelated to sustainability). The second experiment manipulates the strategic alignment of the ESG indicators (holding strategy constant). We also manipulate the presence (absence) of assurance in both experiments. Results from both experiments document that investors perceive ESG indicators to be more important, and are more willing to invest in the company if ESG indicators have higher strategic relevance. Experiment one also provides evidence that assurance increases investors' willingness to invest to a greater extent when ESG indicators have high relevance to the company strategy. Our findings suggest that the assurance of ESG indicators has a beneficial signaling role in communicating the importance of this reported information to investors.

Download Full-text

The Impact of Working Capital Management on Financial Performance of Cost Leadership and Differentiation Strategy Firms in Different Business Cycles: Evidence from New Zealand

Journal of Asia-Pacific Business ◽

10.1080/10599231.2021.1866398 ◽

2021 ◽

pp. 1-19

Author(s):

Rashid Ameer ◽

Radiah Othman

Keyword(s):

New Zealand ◽

Business Cycles ◽

Financial Performance ◽

Capital Management ◽

Working Capital ◽

Working Capital Management ◽

Cost Leadership ◽

Differentiation Strategy ◽

The Impact

Download Full-text

Examining Protection Motivation and Network Externality Perspective Regarding the Continued Intention to Use M-Health Apps

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph18115684 ◽

2021 ◽

Vol 18 (11) ◽

pp. 5684

Author(s):

Yumei Luo ◽

Guiping Wang ◽

Yuwei Li ◽

Qiongwei Ye

Keyword(s):

Self Efficacy ◽

Network Externalities ◽

Network Externality ◽

Intention To Use ◽

Protection Motivation ◽

Direct Impact ◽

Perceived Vulnerability ◽

Response Efficacy ◽

Health Apps ◽

Direct Network

M-health apps have developed rapidly and are widely accepted, but users’ continued intention to use m-health apps has not been fully explored. This study was designed to obtain a better understanding of users’ continued intention to use m-health apps. We developed a theoretical model by incorporating the protection motivation theory and network externalities and conducted an empirical study of a 368-respondent sample. The results showed that: (1) perceived vulnerability has a direct impact on users’ self-efficacy and response efficacy; (2) self-efficacy and response efficacy have a direct impact on users’ attitudes and continued intention; (3) network externalities affect users’ attitudes and continued intention, among which direct network externalities have an indirect impact on users’ continued intention through attitude; and (4) the impacts of self-efficacy, response efficacy, and indirect network externalities on continued intention are partially meditated by attitudes.

Download Full-text