Managing Quality in a Heterogeneous Contract Manufacturing Environment

The outsourcing of production is a prominent strategy across industries. While the strategy can have many benefits, the popular press reports numerous examples of quality issues originating with contract manufacturers (CMs). Observing these quality issues, multiple scholars call for the quality management (QM) literature to be extended to explicitly address the challenges of managing quality in an inter‐organizational context. Additionally, QM researchers recognize the need to consider contextual contingencies for the effectiveness of specific QM practices. Responding to these calls, we focus on the potential contingent factor of CM heterogeneity (i.e. the degree of product and process diversity at the CM plant). We first test the direct relationship between CM manufacturing heterogeneity and CM quality conformance performance, as reported by the CM's customers, brand‐owning firms. Next, we evaluate the effectiveness of multiple practices that these brand‐owning firms can employ to mitigate the anticipated negative effect of heterogeneity on their CM's conformance quality. We utilize paired dyadic data on 106 contract manufacturing relationships in the food, drug, and medical device industries to test our hypothesized model. The results of our analysis reveal a negative association between heterogeneity at CM facilities and their conformance quality performance. Our results also identify cooperative relationships, contractual coordination provisions, and formal performance assessment programs as practices that brand‐owning firms can employ to largely eliminate the negative impact of heterogeneity on CMs’ conformance quality performance.     

Testing the Vitamin Model of job stress in Dutch health care workers

Three central hypotheses of Warr's Vitamin Model concerning the relationship between job characteristics and well-being and health outcomes were tested: (1) differential effects of job characteristics on the various well-being and health outcomes; (2) predominance of curvilinear associations; and (3) moderate influence of negative and positive affectivity on these relationships. The study participants were 162 employees from a health care organization (aged 19–54 years, 95% women) who completed questionnaires on job demands and job autonomy, as well as on the outcome variables depression, anxiety, job satisfaction, and health complaints. In addition, data on short-term sickness absence were collected. A higher level of job demands was significantly associated with a lower level of well-being and self-reported health. Job autonomy showed weaker relationships with the outcome variables. The effects of job demands were still large after controlling for negative and positive affectivity, while the effects of job autonomy in most cases became non-significant. The predicted curvilinear relationship between job characteristics and outcome variables did not have an additional value over a linear model in predicting the data. It is concluded that the present data from a homogeneous sample of mostly female nurses support Warr's Vitamin Model to a limited extent.     

功能性价值和象征性价值对品牌忠诚的影响:性别差异和品牌差异的调节作用

根据品牌资产、品牌关系和目标理论,本文从理论上阐释了价值作为品牌忠诚直接前置变量的作用,功能性、象征性价值对品牌忠诚的影响在实证研究中得到支持,而且这种影响存在非线性的特征.本研究进一步考察了性别差异和品牌差异对上述影响的调节作用,结果表明:(1)象征性价值对品牌忠诚的影响存在性别差异,其作用女性强于男性;(2)随着品牌差异的提高,功能性、象征性价值对品牌忠诚的影响增强.     

Innovation management in context: environment, organization and performance

Several decades of research into innovation management have failed to provide clear and consistent findings or coherent advice to managers. In this paper, I argue that this is because innovation management 'best practice' is contingent on a range of factors, and that we need better characterizations of the technological and market contingencies which affect the opportunity for, and constraints on, innovation. I review research on innovation together with relevant studies from organizational behaviour and strategic management, and develop a model which may help to guide future innovation research on the relationships between environmental contingencies, organization configurations and performance. I identify uncertainty and complexity as the key environmental contingencies that influence organizational structure and management processes for innovation.     

新产品开发网络资源与技术资源匹配关系:基于中国制造业企业的实证研究

新技术革命背景下新产品开发所需资源的广度和深度与日俱增,不同资源的匹配组合对于新产品开发成功具有直接决定性作用。本文结合资源基础理论与社会网络理论,深入研究了新产品开发中不同程度网络-技术资源组合对新产品开发市场绩效与风险的作用机理,并探究了产品多元化对网络-技术资源组合与新产品开发市场绩效、风险之间关系的调节效应。基于143家中国制造业企业实地调研数据,运用结构方程模型与分层回归分析方法进行实证,结果发现:网络资源广度-技术资源深度组合以及网络资源深度-技术资源广度组合对新产品开发市场绩效有正向影响,对新产品开发风险有负向作用;网络资源广度-技术资源广度组合以及网络资源深度-技术资源深度组合对新产品开发市场绩效有负向影响,对新产品开发风险有正向作用;产品多元化正向调节网络资源广度-技术资源深度组合与新产品开发风险之间的关系,以及网络资源广度-技术资源广度组合与新产品开发市场绩效、风险之间的关系。本文的研究为企业提高新产品开发资源配置效率、降低开发风险提供了决策支持与理论依据。     

Product Modularity,Process Modularity,and New Product Introduction Performance: Does Complexity Matter?

Modularity has the potential to impact various facets of new product introduction performance including product development lead time, frequency of new product introduction, on time introduction and product innovation. The impact of modularity on new product introduction performance, however, may vary for different levels of product and process complexity. This study empirically investigates relationships between perceptual measures of product modularity, process modularity, and new product introduction performance and explores whether an objective product/process complexity measure moderates these relationships. Using survey‐based methodology we probe both manufacturers of technically simple products and technically complex products. Hierarchical regression models are used to test hypotheses concerning the main effects of product and process modularity and the effects of their interactions with complexity on new product introduction performance. The results show that the main effect of product modularity was positive and its interaction with complexity was disordinal and negative, suggesting that the positive effect of product modularity on new product introduction performance is dampened when complexity is high. For process modularity, only the interaction effect (positive) was statistically significant and it was also disordinal in nature. Thus, the effect of process modularity on new product introduction performance is heightened when complexity is high. The implications of these findings are discussed and more specific theoretical and managerial implications are delineated by examining the impacts of these main and interaction effects on individual measures of new product introduction performance (frequency of new product introduction, product development lead times, product innovation, and on‐time product launch).     

A longitudinal analysis of the impact of firm resources and industry characteristics on firm-specific profitability

Using a dynamic heterogeneous panel data model, we examine the relationship between firm-specific resources (corporate management capabilities, employee value-added and technological competence) and firm-specific profitability and the potential moderating effects of industry characteristics on this relationship. We find that firm-specific resources enhance both accounting-based measures (return on assets and return on sales) and market-based measure (Tobin’s q) of firm-specific performance. Moreover, industry characteristics moderate the relationship between firm-specific resources and firm-specific profitability. Managerial implications are discussed.

Testing the Vitamin Model of job stress in Dutch health care workers

Three central hypotheses of Warr's Vitamin Model concerning the relationship between job characteristics and well-being and health outcomes were tested: (1) differential effects of job characteristics on the various well-being and health outcomes; (2) predominance of curvilinear associations; and (3) moderate influence of negative and positive affectivity on these relationships. The study participants were 162 employees from a health care organization (aged 19-54 years, 95% women) who completed questionnaires on job demands and job autonomy, as well as on the outcome variables depression, anxiety, job satisfaction, and health complaints. In addition, data on short-term sickness absence were collected. A higher level of job demands was significantly associated with a lower level of well-being and self-reported health. Job autonomy showed weaker relationships with the outcome variables. The effects of job demands were still large after controlling for negative and positive affectivity, while the effects of job autonomy in most cases became non-significant. The predicted curvilinear relationship between job characteristics and outcome variables did not have an additional value over a linear model in predicting the data. It is concluded that the present data from a homogeneous sample of mostly female nurses support Warr's Vitamin Model to a limited extent.     

The impact of different fit dimensions on spillover effects in brand alliances

Brand alliances represent a popular business strategy in many industries, because firms hope to evoke positive consumer evaluations of both the alliance’s product and the partner brands. However, extant research offers mixed findings regarding the effects of a brand alliance on its partner brands (i.e., spillover effects). In response, this study separates spillover effects into the effects of the alliance product on the partner brands (brand alliance effects) and the effects between partner brands (brand contrast effects), while also noting the potential moderating impact of perceived attitude- and product-based fit between partner brands on resulting spillover effects. Two experimental studies consistently reveal the existence of brand contrast effects; furthermore, the partner brand’s attitude-based fit reduces undesired brand contrast effects and positively moderates spillover effects in brand alliances, whereas product-based fit does not. Therefore, a third study identifies relevant drivers of partner brand’s attitude-based fit for different brand alliances (i.e., co-branding, ingredient branding, and joint advertising). The findings have notable implications for the design and management of brand alliances.     

The risk implications of diversification: Integrating the effects of product and geographic diversification

The risk implications of product diversification have received considerable attention from scholars. However, our understanding of the effects of geographic diversification on risk is more limited. Relying on resource-based theory to frame our arguments, we argue that despite some similarities, the two types of diversification have differing effects on firm risk. We first establish the risk reducing effects for product diversification. We then integrate the unique aspects of geographic diversification that serve as a boundary condition to the RBV perspective, arguing for the risk increasing effects of geographic diversification. Finally, since many firms pursue both forms of diversification simultaneously, we explore the joint effects of both product and geographic diversification. We test our hypotheses in a longitudinal model on a sample of S&P 500 firms. Our findings suggest that total product diversification, as well as related diversification reduce risk, while total geographic diversification increases risk. Furthermore, our data provide evidence of a complex combination of joint effects of these two forms of diversification. These findings offer a more complete understanding of the risk effects of corporate diversification.     

Brand image and equity: the mediating role of brand equity drivers and moderating effects of product type and word of mouth

In today’s competitive landscape, organizations are progressively searching for valuable practices to create strong consumer-based brand equity. Managers must remain vigilant and receptive to factors that influence brand equity. Accordingly, this paper addresses this issue. Specifically, the paper empirically investigates the mediating roles of three drivers of brand equity in the brand image—consumer-based brand equity relationship and explores the moderating roles of product type and word of mouth (WOM) on the linkages between brand image and brand equity. In order to understand these relationships, a questionnaire survey was administered among brand consumers, yielding a total of 321 responses. Confirmatory factor analysis and Cronbach’s alpha were utilized to estimate the validity and reliability of the measures. Structural equation modeling with maximum likelihood estimation was employed to test the hypotheses. The authors find that brand image positively affects brand attachment, brand attitude, and brand awareness. Brand attachment and attitude positively influence consumer-based brand equity. The findings show that brand attachment and brand attitude partially mediate the relationship between brand image and brand equity. Product type and WOM have a significant moderating effect on the relationships among brand image, drivers of brand equity, and brand equity. The authors discuss the limitations of the study and provide future research directions.     

Resolving conflict over salespeople’s brand adoption in franchised channels of distribution

Many franchise-based retail outlets offer both the franchisor-owned brand and brands of competitors or independent suppliers. As salespeople may influence customers’ brand choices considerably, an important concern for franchisors is how to raise salespeople’s selling preferences for the franchisor-owned brand. However, the channel administration literature suggests that salespeople may not automatically favor the franchisor’s brand over other brand lines. While a large body of research examines franchise–channel relationships, previous investigations have conspicuously overlooked this channel conflict. In proposing a conceptual model grounded in the behavioral sciences, this study analyzes how franchisors can induce salespeople to advocate their brand by fostering the intention to promote the franchisor-owned brand (IFOB) in customer interaction. The results of an empirical field study show that individual brand promotion depends on factors such as salespeople’s identification with the franchisor and their tenure with the organization, as well as on the franchisor’s prestige and administration of the franchise. Moreover, we find that franchisees’ IFOB transfers to salespeople, but only if franchisees display a charismatic leadership style. We discuss these findings in light of extant theory and empirical evidence and derive several managerially relevant implications for the administration of franchised retail channels.     

Unpacking the relationship between post-entry speed of internationalization and export performance of SMEs: A capability-building perspective

Prior research has acknowledged the merits of firms' post-entry speed of internationalization (PSI) for export performance. However, remarkably little attention has been devoted to the transformational mechanisms that enable firms to convert their PSI into performance outcomes. Drawing on the capability-building perspective, we examine the mediating role of two key firm-specific capabilities, i.e., knowledge capability upgrading (KCU) and adaptive capabilities (ADC), on the relationship between PSI and financial and non-financial export performance. Employing a sample of 208 New Zealand exporting SMEs, we found a positive relationship between PSI and both KCU and ADC and found support that PSI's effect on export performance is conveyed through ADC. We found that although KCU does not directly mediate the PSI-export performance relationship, it acts as a driving factor for ADC, which in turn contributes to export performance. This study contributes to the evolving literature on post-entry dynamics of internationalization and capability-building perspective.     

Brand deletion implementation: The effect on performance of context and process factors

Although brand deletion (BD) is a key strategic decision within brand portfolio management, it has received very little attention in the scientific literature. This research expands the knowledge base on the BD strategy, particularly in the execution phase. Based on the literature addressing strategic change and marketing strategy implementation, this study explores the main and interaction effects of context (decentralization and consensus) and process (formalization and communication) implementation factors on the success of BD, measured in terms of its contribution to the firm’s economic performance. Using a representative sample of 155 cases of BD, we show that the four factors are related to BD performance, although these relations are complex and intertwined. Consensus, communication, and decentralization positively affect BD performance, with consensus being particularly influential. Formalization is found to be a double-edged sword as the effects of formalizing the execution of the deletion are particularly convoluted.     

消费者品牌忠诚对品牌商再制造市场策略的影响

独立再制造商IR的市场进入给品牌商带来了显著的竞争压力。品牌忠诚源于消费者对某个产品品牌的信任和特殊情感,在产品选择中具有明显的倾向性和排他性,进一步增加了品牌商市场策略的复杂性。针对这一现象,本文采用博弈论结合数值仿真研究了消费者具有品牌忠诚特性下的品牌商再制造市场策略问题。建立并求解了IR不进入且品牌商不再制造（n）、IR不进入且品牌商再制造（nR）、IR进入且品牌商不再制造（nr）、IR进入且品牌商再制造（nrR）四种市场模式,对模型结果进行了灵敏度分析,并探讨了各成员的模式偏好。研究表明：新产品价格、品牌再制品价格、一般再制品价格均与品牌忠诚度正相关;品牌忠诚度的提高一定增大品牌商的利润,但不一定会降低IR利润;当新产品制造成本较高时,品牌商的模式偏好始终为nR$\succ$nrR$\succ$n$\succ$nr,较低时模式偏好受到消费者品牌忠诚度的大小的影响;nr和nrR模式下,品牌忠诚度仅可能提高品牌消费者剩余,但会降低普通消费者剩余、总消费者剩余和社会总福利。     

Notes from an Introspective Behaviorist

Abstract

Based on the three-contingency model of performance management, I make the following argument: (1) Often, we fail to behave as we should because the natural contingencies supporting appropriate behavior are ineffective; the natural contingencies involve outcomes for each individual response that are either too small, though of cumulative significance, or outcomes that are too improbable. The delay of the outcome is essentially irrelevant. The psychodynamic model of the cognitive motivational theorists provides a poor explanation for why we fail to behave as we should. (2) The performance-management contingencies in organizational behavior management (OBM) must usually involve deadline-induced aversive control, even when they are based on powerful reinforcers. Furthermore, such performance management succeeds only to the extent that the person's behavioral history, “Jewish mother,” has inculcated an appropriate value system. Wiegand and Geller's critique of the necessity of the use of aversive control fails to take into account the necessity of deadlines and the difference between instrumental and hedonic reinforcers; furthermore, it greatly over values the power of intrinsic reinforcement contingencies in OBM.     

Dual-class shares,external financing needs,and firm performance

Whereas the agency theory predicts that dual-class shares decrease firm performance, the stewardship theory predicts that dual-class shares increase firm performance. The cumulative findings on the performance consequences of dual-class shares have been weak and/or inconclusive. Because endogeneity is a constant challenge in empirical corporate governance studies, this study uses a unique law change in Switzerland as a source of exogenous variation in the fraction of firms with dual-class shares. Controlling for firm fixed effects and time-varying confounders, we find that dual-class shares neither harm nor benefit firm performance on average. However, dual-class shares increase firm performance if the firm requires external finance and dual-class shares decrease firm performance if the firm does not require external finance. External financing needs mitigate the agency costs between controlling and minority shareholders and create a context in which dual-class shares facilitate firm-specific investments instead of private perquisites. The study’s results have both managerial and policy implications.     

Towards an adaptive framework of low-end innovation capability – A systematic review and multiple case study analysis

Low-end innovations, defined as new products or services that expand a market by addressing consumers with a low willingness or ability to pay, have a dual purpose – they can be a prerequisite for firm survival and growth and a major driver of societal change. To overcome the scattered nature of existing low-end innovation research and its lack of an explicit capability conceptualization, which limits academia's ability to move extant knowledge about the domain forward and limits firms' abilities to reliably produce successful low-end innovations, we present the results of a systematic review of the literature (99 journal articles) and a multiple case study analysis (7 cases). The resulting framework helps understand what constitutes a low-end innovation capability. The findings show that firms need a specific and interdependent capability set consisting of internal dimensions (low-end culture and commitment, integrated cost-reducing innovation, high volume scaling), interface dimensions (distant customer needs acquisition, iteration, total solution development) and external dimensions (access creation, low-end support networking) to cope with low-end markets' unique characteristics. The study also identifies market- and firm-specific contingencies for each capability dimension and analyzes the relationship between low-end and “regular” innovation capability.     

公司品牌与产品品牌对购买意向影响的实证研究

以在校学生为研究对象,通过实验研究方法,实证了公司品牌及产品品牌对购买意向均具有显著的正向影响关系,并且,公司品牌比产品品牌对购买意向的正向影响更为显著.进一步实验表明,在产品品牌强度相同的条件下,被试对具有较强公司品牌的购买意向更为显著.研究结果说明,在中国市场,顾客的购买决策主要依赖"从公司到产品"的思维模式.研究结论弥补了现有品牌理论对购买意向实证研究的缺乏,为企业选择公司品牌与产品品牌的创建顺序提供了理论支持.