Exit, Tweets, and Loyalty

2021 ◽  
Vol 13 (2) ◽  
pp. 68-112
Author(s):  
Joshua S. Gans ◽  
Avi Goldfarb ◽  
Mara Lederman
Keyword(s):  
Simple Model ◽  
Market Structure ◽  
Empirical Analysis ◽  
Large Share ◽  
Relational Contracting ◽  
Relational Contract ◽  
The Relationship

Hirschman’s Exit, Voice, and Loyalty highlights the role of “voice” when individuals confront an unexpected deterioration in quality. Yet, voice has received little attention. To motivate our empirical analysis, we develop a simple model of voice as the equilibrium of a relational contract between customers and firms. We use data on 4 million tweets to or about US airlines to study the relationship between quality, voice, and market structure. Voice increases when quality deteriorates. This relationship is greater for airlines that operate a large share of flights in a market. Supplemental analyses support a relational contracting role for voice. (JEL D83, L15, L82, L93)

Big data analytics capabilities and organizational performance: the mediating effect of dual innovations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaofeng Su ◽  
Weipeng Zeng ◽  
Manhua Zheng ◽  
Xiaoli Jiang ◽  
Wenhe Lin ◽  
...  
Keyword(s):  
Big Data ◽  
Organizational Performance ◽  
Empirical Analysis ◽  
Data Analytics ◽  
Big Data Analytics ◽  
Mediating Effect ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeFollowing the rapid expansion of data volume, velocity and variety, techniques and technologies, big data analytics have achieved substantial development and a surge of companies make investments in big data. Academics and practitioners have been considering the mechanism through which big data analytics capabilities can transform into their improved organizational performance. This paper aims to examine how big data analytics capabilities influence organizational performance through the mediating role of dual innovations.Design/methodology/approachDrawing on the resource-based view and recent literature on big data analytics, this paper aims to examine the direct effects of big data analytics capabilities (BDAC) on organizational performance, as well as the mediating role of dual innovations on the relationship between (BDAC) and organizational performance. The study extends existing research by making a distinction of BDACs' effect on their outcomes and proposing that BDACs help organizations to generate insights that can help strengthen their dual innovations, which in turn have a positive impact on organizational performance. To test our proposed research model, this study conducts empirical analysis based on questionnaire-base survey data collected from 309 respondents working in Chinese manufacturing firms.FindingsThe results support the proposed hypotheses regarding the direct and indirect effect that BDACs have on organizational performance. Specifically, this paper finds that dual innovations positively mediate BDACs' effect on organizational performance.Originality/valueThe conclusions on the relationship between big data analytics capabilities and organizational performance in previous research are controversial due to lack of theoretical foundation and empirical testing. This study resolves the issue by provides empirical analysis, which makes the research conclusions more scientific and credible. In addition, previous literature mainly focused on BDACs' direct impact on organizational performance without making a distinction of BDAC's three dimensions. This study contributes to the literature by thoroughly introducing the notions of BDAC's three core constituents and fully analyzing their relationships with organizational performance. What's more, empirical research on the mechanism of big data analytics' influence on organizational performance is still at a rudimentary stage. The authors address this critical gap by exploring the mediation of dual innovations in the relationship through survey-based research. The research conclusions of this paper provide new perspective for understanding the impact of big data analytics capabilities on organizational performance, and enrich the theoretical research connotation of big data analysis capabilities and dual innovation behavior.

The mediating role of decentralization between strategy and performance

2019 ◽  
Vol 32 (4) ◽  
pp. 409-425 ◽  
Author(s):  
Qinglan Chen ◽  
Tor Eriksson
Keyword(s):  
Empirical Analysis ◽  
Structural Equation ◽  
Online Survey ◽  
Corporate Strategy ◽  
Group Analysis ◽  
Business Environment ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose The purpose of this paper is to empirically examine the mediating role of decentralization in the relationship between a firm’s strategy and its performance in the context of an advanced economy where the chief corporate strategy is differentiation. Design/methodology/approach The study uses data collected by an online survey targeting a stratified sample of 1,238 private firms operating in Denmark. The empirical analysis was carried out by estimating a structural equation model. Findings The key finding was that a decentralized organization (DO) can act as a mediator between a firm’s differentiation strategy and its performance. A multi-group analysis revealed that the mediating impact of decentralizing was affected by contingency factors such as firm size, strategic clarity, degrees of business environment risk and industry competition. Thus, a DO can be said to play a more important role in larger firms, in firms with less strategic clarity, and in companies with multiple plants. Research limitations/implications Although the study offers empirical evidence from a relatively large and representative sample of firms, the specificity of the context should be noted. In particular, firms in Denmark, while facing strong competition, do not compete with low costs. Clearly, studies of the mediating role of decentralization in low-cost strategy environments would be an important next step. Practical implications Several implications of the findings for organizational design and creation of beneficial conditions for strategy implementations are discussed. Originality/value The novel contribution of the study lies in the focus on decentralization as a mediator in the strategy–performance relationship. While previous research has shown that strategy is related to decentralization, and that decentralization is associated with higher performance, an empirical analysis of the relationship between the factors in the strategy-decentralization-performance path had not previously been undertaken.

scholarly journals Output Volatility and Government Size in Nigeria

2020 ◽  
Vol 20 (1) ◽  
pp. 286-301
Author(s):  
Philip I. Nwosa ◽  
Chris Ehinomen ◽  
Ephraim Ugwu
Keyword(s):  
Fiscal Policy ◽  
Government Size ◽  
Output Volatility ◽  
Large Share ◽  
Role Of Government ◽  
Automatic Stabilization ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
The Relationship

AbstractResearch background: Output volatility has potentially adverse consequences on the economy and the stabilizing role of fiscal policy is linked to the share of government size in an economy. Hence, given the relative large share of government in developing countries, government size is expected to play an important role in stabilizing output volatility.Purpose: This study examines the relationship between output volatility and government size in Nigeria. The study seeks to establish if government size mitigates output volatility in Nigeria.Research methodology: The study employs the Autoregressive Distributed Lag (ARDL) technique after conducting stationarity and co-integration tests.Results: The results of the ARDL estimate showed that government size lessens output volatility but the magnitude was insignificant. Further, the study found that volatility in aggregate government spending; international oil price and public debt were significant determinants of output volatility in Nigeria.Novelty: This showed that the automatic stabilization role of government size on output volatility could not be established. The automatic stabilization role of fiscal policy can be improved by increasing social security transfers (pension payment), payments of unemployment benefits and increasing civil servants minimum wage.

scholarly journals The Role of Temperature in Economic Exchange - An Empirical Analysis

2015 ◽  
Vol 4 (3) ◽  
pp. 65-89 ◽  
Author(s):  
Bojan Dimitrijević ◽  
Ivan Lovre
Keyword(s):  
Empirical Analysis ◽  
Statistical Physics ◽  
Wealth Distribution ◽  
Modern Science ◽  
Developed Countries ◽  
Economic Exchange ◽  
The Relationship ◽  
The Empirical Analysis ◽  
Income And Wealth Distribution

Abstract As a synthesis of economics and physics and an attempt to apply the methods and models of statistical physics to economics, econophysics is presently a new, growing and very dynamic branch of modern science. Therefore, the subject of this paper is to analyse the relationship and interdependence between thermodynamics and economics, and it aims to show similarities, analogies and correspondence between the main categories, methods and models of thermodynamics on one hand, and economics on the other. The paper analyses the relation between economics and thermodynamics, as well as the probability distribution in the kinetic theory of gases corresponding to money, income and wealth distribution, connects entropy with utility and the principle of operation of the thermal engine with economic exchange. The final part of the paper empirically analyzes temperature differences in the exchange between Serbia and the selected EU countries. There are differences in temperature between Serbia and the group of selected countries. Results of the empirical analysis shows that the exchange between countries is based on principles of thermodynamics and that developed countries generate more profits and benefits from exchange.

scholarly journals The Optimality and Statistical Detection of Price Rigging in Betting Markets

2013 ◽  
Vol 1 (1) ◽  
pp. 13-29
Author(s):  
Adi Schnytzer ◽  
Yuval Shilony
Keyword(s):  
Simple Model ◽  
Empirical Analysis ◽  
Betting Markets ◽  
Statistical Detection ◽  
Betting Behavior ◽  
The Relationship

The purpose of this paper is to determine empirically whether or not there is systematic price rigging in three Australian betting markets: Horse, harness and greyhound racing.  We present a simple model which shows the conditions under which it is optimal for insiders to rig prices by deliberate under-performance in some races.  We then show how an empirical analysis of the relationship between win and place probabilities in conjunction with observed patterns of betting behavior, may be used to establish the presence of price rigging.  It is shown that there is no significant systematic price rigging in these markets.

scholarly journals Design centrality, design investments and innovation performance: an empirical analysis of European firms

2019 ◽  
Author(s):  
Sandro Montresor ◽  
Antonio Vezzani
Keyword(s):  
Empirical Analysis ◽  
Innovation Performance ◽  
Firm Level ◽  
Large Sample ◽  
Per Se ◽  
New Evidence ◽  
The Relationship ◽  
Positive Effect

Abstract This article provides new evidence on the relationship between design and innovation performance at the firm level. In particular, we integrate previous analyses of the link between design investments and innovation by considering the extent to which firms put design at the center of their business activities. Moreover, we distinguish between the effect of design on innovation and its effect on the success of innovation, as captured by firms’ innovative turnover. The use of the European Innobarometer survey, covering a unique set of questions on the topic, allows us to test a set of hypotheses about these relationships on a large sample of firms. The results show that a firm’s approach to design plays an important role in its propensity to innovate: the more central the role of design within a firm, the higher the likelihood it innovates. The same holds true when considering the share of turnover from innovation. However, sales associated with innovation do not increase linearly with design investments, as we find a positive effect only for firms investing intensively in design. Overall it emerges that the centrality of design is strongly associated with firms’ innovation performance, while design investment per se has a more nuanced role.

scholarly journals Participation of SME distributors in the gray market: An empirical analysis of Spanish firms

2021 ◽  
Vol 5 (2) ◽  
pp. e372
Author(s):  
Fernando Gimeno-Arias
Keyword(s):  
Empirical Analysis ◽  
Consumer Goods ◽  
Fast Moving ◽  
Distribution Channel ◽  
Distribution Channels ◽  
Marketing Channels ◽  
Gray Market ◽  
Fast Moving Consumer Goods ◽  
The Relationship

Within the distribution channels of fast-moving consumer goods (FMCG), the negotiating of agreements with official suppliers is critical for the performance of small and medium-sized (SME) distributors. These distributors are limited by their size and negotiating power, which is significantly lower than that of their suppliers, leading them to seek alternative supply sources, such as that provided by the gray market. The participation of SME distributors in the gray market is not only conditioned by the negotiations with their official suppliers, but also by the role played by the size of the gray market and by the relationship with their suppliers. The literature shows very few studies into SMEs within this area of the distribution channel, so this article contributes an explanatory model of this phenomenon. Based on a sample of 181 Spanish distribution companies, our results confirm that negotiation is a favorable element, while granting limited importance to the role of the relationship. In addition, we find evidence of the key role of commitment between parties in a situation as peculiar as that of parallel marketing channels.

scholarly journals Research on the Relationship Between Self-improvement Values and Green Brand Identity

2021 ◽  
Vol 261 ◽  
pp. 04016
Author(s):  
Xuedong Liang ◽  
Yong Yang ◽  
Qunxi Gong ◽  
Sipan Li ◽  
Gengxuan Guo
Keyword(s):  
Empirical Analysis ◽  
The Self ◽  
Brand Identity ◽  
Self Monitoring ◽  
Mediating Role ◽  
Consumer Values ◽  
Antecedent Variable ◽  
The Impact ◽  
The Relationship

In order to clarify the relationship between self-improvement values and green brand identity, we take the consumers’ self-improvement values as the antecedent variable, consider the self-monitoring as the moderating variable, regard consumers’ environmental self-accountability as the intermediary variable, and conduct an empirical analysis of the impact of consumers’ self-improvement values on green brand identity. The research found that:1) Self-improvement values positively affect consumers’ recognition of green brands;2) Self-improvement values positively affect consumers’ environmental self-accountability;3) Environmental self-accountability positively mediates the relationship between self-improvement values and green brand identity;4) Self-monitoring positively regulates the impact of consumer values on consumers’ environmental self-accountability and the mediating role of environmental self-accountability.

Choosing a Markov blanket

2020 ◽  
Vol 43 ◽  
Author(s):  
Thomas Parr
Keyword(s):  
Markov Blanket ◽  
Target Article ◽  
The Relationship

Abstract This commentary focuses upon the relationship between two themes in the target article: the ways in which a Markov blanket may be defined and the role of precision and salience in mediating the interactions between what is internal and external to a system. These each rest upon the different perspectives we might take while “choosing” a Markov blanket.

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