Cross-Category Retailing Management: Substitution and Complementarity

Problem definition: This paper studies pricing and assortment management for cross-category products, a common practice in brick-and-mortar retailing and e-tailing. Academic/practical relevance: We investigate the complementarity effects between the main products and the secondary products, in addition to the substitution effects for products in the same category. Methodology: In this paper, we develop a multistage sequential choice model, under which a consumer first chooses a main product and then selects a secondary product. The new model can alleviate the restriction of the independence of irrelevant alternatives property and allows more flexible substitution patterns and also takes into account complementarity effects. Results: We characterize the impact of the magnitude of complementarity effects on pricing and assortment management. For the problems that are hard to solve optimally, we propose simple heuristics and establish performance guarantee. In addition, we develop easy-to-implement estimation algorithms to calibrate the proposed sequential choice model by using sales data. Managerial implications: We show that ignoring or mis-specifying complementarity effects may lead to substantial losses. The methodologies on modeling, optimization, and estimation have potential to make an impact on cross-category retailing management.

Entrepreneurship and agriculture resources on national productivity in Africa: exploring for complementarities, synergies and thresholds

Purpose Existent literature suggests that Africa is heavily endowed with agriculture resources and entrepreneurship remains an important mechanism for promoting national productivity and other economic outcomes. Despite these, empirical evidence on how agriculture resources promote the effect of entrepreneurship on national productivity in Africa is nonexistent given the abundance of agriculture resources and the need for Africa to increase its productivity, which has implications for improving welfare. Hence, this study aims to examine the interplay of how agriculture resources and entrepreneurship influence national productivity by way of exploring for threshold and complementarity effects of agriculture resources in Africa. Design/methodology/approach This uses panel data of 29 Africa economies between 2006 and 2016 in a bootstrap quantile regression model. Findings First, it is reported that initial levels of agriculture resources in the form of crop and arable lands reduce national productivity while the extreme increase in agriculture resources promotes national productivity in Africa. This implies a nonlinear direct U-shape effect of agriculture resources on national productivity indicating that the enhancing effect of agriculture resources on national productivity is only achieved beyond a certain threshold of average agriculture resources. Second, agriculture resources complement entrepreneurship (which initially reduced national productivity) to promote national productivity. This implies that there is a synergetic-complementarity relationship between entrepreneurship and agriculture resources on national productivity. Practical implications These findings suggest that governments that are interested in boosting national productivity through agriculture resources may have to commit more financial resources to develop and reclaiming more agriculture resources (in the form of crop and arable lands) given that some threshold of agriculture resources are needed to promote national productivity. Similarly, developing agriculture resources by policymakers can help complement entrepreneurship to further improve the effects of entrepreneurship on national productivity. Originality/value This study attempts to present first-time evidence on the interplay between agriculture resources and entrepreneurship on national productivity by way of exploring for threshold and complementarity effects of agriculture resources in Africa.

Placing plant-soil feedbacks in the context of plant community growth

1. Plant-soil feedback (PSF) has gained attention as a mechanism promoting plant growth and coexistence. However, because most PSF research has measured monoculture growth in greenhouse conditions, field-based PSF experiments remain an important frontier for PSF research. 2. Using a four-year, factorial field experiment in Jena, Germany, we measured the growth of nine grassland species on soils conditioned by each of the target species (i.e., PSF). Plant community models were parameterized with or without these PSF effects, and model predictions were compared to plant biomass production in new and existing diversity-productivity experiments. 3. Plants created soils that changed subsequent plant biomass by 36%. However, because they were both positive and negative, the net PSF effect was 14% less growth on ‘home’ than ‘away’ soils. At the species level, seven of nine species realized non-neutral PSFs, but the two dominant species grew only 2% less on home than away soils. At the species*soil type level, 31 of 72 PSFs differed from zero. 4. In current and pre-existing diversity-productivity experiments, nine-species plant communities produced 37 to 29% more biomass than monocultures due primarily to selection effects. Null and PSF models predicted 29 to 28% more biomass for polycultures than monocultures, again due primarily to selection effects. 5. Synthesis: In field conditions, PSFs were large enough to be expected to cause roughly 14% overyielding due to complementarity, however, in plant communities overyielding was caused by selections effects, not complementarity effects. Further, large positive and large negative PSFs were associated with subdominant species, suggesting there may be selective pressure for plants to create neutral PSF. Broadly, results highlighted the importance of testing PSF effects in communities because there are several ways in which PSFs may be more or less important to plant growth in communities than suggested from simple PSF values.

Performance effects of entrepreneurial orientation, strategic intent and absorptive capacity within coopetitive relationships

PurposeWhile the significance of organizational resources and capabilities is widely discussed, little is known about their interrelationships as well as benefits for firms that are involved in coopetitive relationships. Against this backdrop, the purpose of this paper is to investigate the performance effects of entrepreneurial orientation, strategic intent and potential absorptive capacity as well as their complementarity effects on operational and innovation performance for firms involved in horizontal coopetitive relationships.Design/methodology/approachDrawing upon the resource-based-view, dynamic capabilities and the relational view theories, this study forwards numerous hypotheses between the constructs of interest. The proposed hypotheses are tested utilizing survey data collected from 313 horizontal coopetitive relationships.FindingsThe results clearly suggest that entrepreneurial orientation, strategic intent and potential absorptive capacity could positively impact innovation and operational performance outcomes independently. In addition, the authors also find strategic intent and potential absorptive capacity to have differential moderating effects on the relationships between entrepreneurial orientation and the performance outcomes.Originality/valueThe findings suggest that although strategic intent and potential absorptive capacity could lead to performance benefits independently, when it comes to coopetitive relationships, the use of both these capabilities may not substantially increase the positive impact of entrepreneurial orientation on performance outcomes. Specifically, given that these capabilities could intensify competitiveness as well as hostility between partners, they seem to affect the firm's performance differently.

Soil legacies and drought regulate plant diversity-productivity relationships

How historical and concurrent drought regulate plant diversity-productivity relationships through altering soil microbial communities remains a key knowledge gap. We addressed this gap with plant diversity-productivity relationship experiments under drought and ambient conditions over two phases (Phase I: soil conditioning, and Phase II: plant response). Our results reveal that plant diversity and drought interacted and caused divergent soil microbial communities in Phase I, leading to soil microbial legacies. These soil legacies interacted and caused more pronounced plant diversity-productivity relationships in Phase II, reflecting increased net biodiversity effects over time. Complementarity effects were most positive in plant communities with highest plant richness and in the Drought-Ambient (Phase I-II) treatment, and selection effects were most negative in these communities. Our results highlight the importance of soil microbial communities in driving positive plant diversity effects, and future rainfall changes can cause complicated patterns in the biodiversity-ecosystem functioning relationships through soil microbial legacy.

Collaborative e-business efforts and firm performance

PurposeThe purpose of this study is to examine how e-business (EB) practices and performance are directly and indirectly related, and to examine the complementary effects of adopting various types of EB practices on both business and operational performance, where the latter is conceptualized as a mediator between EB practices and business performance.Design/methodology/approachThe structural equation modelling was used to examine the conceptual model using data collected through a survey of 108 Omani manufacturing firms. EB was conceptualized as a second-order factor resulted from a production of a simultaneous adoption of three distinct groups of EB practices to examine the complementarity effect of EB practices on performance.FindingsControlling for the variations of firm size and age effects, the empirical analysis of this study found support for the superior effects of the complementarities amongst various EB practices on business performance, but this effect will be indirect through the operational performance.Research limitations/implicationsThe research findings may lack generalisability due to the possible effects of other contextual factors which should be considered by future research studies.Practical implicationsSeveral implications are highlighted for the effective deployment of collective EB competencies, and for the role of operational performance on achieving higher business benefits.Originality/valueThis paper satisfies the need to validate the complementarity effects model in different contexts such as EB, and the need to investigate the mediating effect of other factors on EB practices and business performance.