How does acquisition experience create value? Evidence from a regulatory change affecting the information environment

We argue that acquisition experience translates more readily into learning to select than into learning to restructure. The acquisition selection stage is less causally ambiguous than the subsequent restructuring stage—because its web of activities is less complex and its outcome less delayed—and causal ambiguity undermines learning from experience. Therefore, we hypothesize that more-experienced acquirers will perform particularly well when the information environment is less transparent and thus the ability to select targets (versus to restructure them) is more important. Relying on a unique database of 1388 acquisitions realized by private equity firms in the United States between 1975 and 2005, and exploiting a regulatory change affecting the information environment faced by acquirers when selecting their targets, we find results largely consistent with our theory.     

How can perceived consistency in marketing communications influence customer–brand relationship outcomes?

This paper examines the impact of perceived consistency in marketing communications on customer–brand relationship outcomes. The perception of consistent message and image through different marketing communication tools is one of the basic principles of the integrated marketing communications (IMC) approach. Although literature suggests that IMC might have an influence on customer–brand relationship outcomes, empirical evidence that supports this assumption is still weak and inconclusive. Three main brand relationship outcomes are established for the purpose of the study, i.e. trust, commitment, and loyalty. The relationships between perceived communication consistency and brand outcomes are examined in a hospitality context on a sample of 452 respondents who had to evaluate fast-food brands. Structural Equation Modelling was employed as the main technique for data analysis using Partial Least Squares (PLS). Results reveal that communication consistency has a strong direct impact on brand trust and brand loyalty. Although its influence on affective brand commitment is found to be positive, it is not statistically significant. The interrelationship between three brand relationship outcomes is also corroborated. The study contributes to our understanding of the role of IMC in the relationship marketing paradigm and provides deeper insights into the impact of communication consistency on different relationship outcomes with fast-food brands.     

Do nonprofessional investors value the assurance of integrated reports? Exploratory evidence

Using an experimental design, this explorative study provides unique empirical evidence of the effects of an integrated reporting assurance (IRA) on nonprofessional investors’ (NPIs) financial decision-making in a laboratory experiment. For this purpose, two independent experiments were carried out, one relying on a sample of Master’s students, and one focusing on managers of large corporations. In line with our agency theoretical reasoning, we find that students value an IRA positively, evidenced through significantly higher investments, while, contrary to expectations, an IRA has the opposite effect for managers. The results reveal that, dependent on the empirical model, an IRA has either no, or even an investment-decreasing, impact on executives. In order to assess the sense-making process underlying this conundrum, subsequent interviews with the managers were carried out which revealed three dimensions that shape practitioners’ critical attitudes towards assurance engagements. First, managers expressed a general disbelief in the decision usefulness of integrated reporting (IR) to (nonprofessional) investors. Second, interlocutors referred to negative practical experiences with audit and assurance engagements and had technical doubts specific to IRA. Third, managers voiced emotional caveats regarding the audit and assurance profession. These findings indicate a prevailing divergence between the extolled theoretical contribution of an IRA to report credibility and its actual nature in practice. In the further course of the investigation, we also find that the assurance provider (Big 4 auditor versus specialized consultant) does not affect investment decisions, but that a higher assurance level leverages investments among students. The results of this study add to the growing, albeit still small, IRA research body and deliver valuable insights for research, regulators, and practice.     

How does verbal non-diagnostic information affect product evaluation?

This study examines the interaction effect of the dilution effect and the connotation transfer effect on product evaluation. We start our investigation with the finding that advertisements often contain verbal non-diagnostic information. For instance, using embellished labels or fancy names, referring to completely unknown or unneeded attributes, and providing information on sponsorships usually does not transmit information on product benefits the consumer is interested in. Thus, the consumer can not rely on this information to evaluate the product. This is a typical case where a dilution effect is expected to occur. However, this kind of information additionally could evoke positive connotations that are transferred to the advertised product. Until now, there is no systematic research on the interplay of both effects. In three experiments, we manipulate diagnostic information and the valence of verbal non-diagnostic information and analyze which effect overweighs. We found that a positive connotation transfer effect (i.e., spill-over effect) proved to dominate the negative dilution effect in the positive diagnostic information condition.     

How should managed care physicians be paid?

When paying a physician for medical or surgical services, most patients expect the traditional bill or charge for that encounter or visit. While most people also pay health insurance premiums, few patients expect to prepay for their health care. But that is the foundation of most managed health care systems-prepaid medicine. PPOs, IPAs, and HMOs are typically health care providers linked together to provide services to a set population for a specific prepaid fee or "capitation" payment. Other providers contract with these managed care insurers to receive a predetermined and often "discounted" professional fee for services. These managed care organizations have already gone through a number of stages in determining how physicians are to be compensated for their services, and further changes loom on the horizon.     

How can I motivate you to do it my way?

Want to motivate others? Establish meaningfulness and value to them of what they are supposed to do for you, and provide the tools they need to do it. Until they see the value to them, and that value outweighs their perceived risks or costs of doing it, you may get motion but you won't get motivated behaviors. Without motivated behaviors, you'll waste a lot of time trying to goad them on toward your goal, which they don't share. What we want is bilateral motivation toward a common goal. If we're smart, we don't want to be the only ones who are motivated, and others just move.     

Is advertising for losers? An empirical study from a value creation and value capturing perspective

Does advertising lead to higher profits? This question has preoccupied company executives and academic researchers for many decades. Arguments have been put forth in both directions, and evidence is mixed at best. In this article, we re-examine the question from a value creation and value capturing perspective, which allows us to re-interpret and reconcile the different views and empirically validate the resulting hypotheses. Using a database of the top 500 brands of established companies during the 2008–2015 period, we find that advertising spending has no significant impact on profitability, while both brand value and research and development (R&D) spending have a clearly positive effect. In addition, we observe a positive interaction effect between advertising spending and R&D spending and a negative interaction between brand value and R&D spending on profitability. These findings corroborate the view that advertising in and of itself does not improve profitability; rather, its effect is positive only when it acts in support of customer value creation as a result of R&D.     

How Should a Firm Manage Deteriorating Inventory?

Firms selling goods whose quality level deteriorates over time often face difficult decisions when unsold inventory remains. Since the leftover product is often perceived to be of lower quality than the new product, carrying it over offers the firm a second selling opportunity, a product line extension to new and unsold units, and the ability to price discriminate. By doing so, however, the firm subjects sales of its new product to competition from the leftover product. We present a two period model that captures the effect of this competition on the firm's production and pricing decisions. We characterize the firm's optimal strategy and find conditions under which the firm is better off carrying all, some, or none of its leftover inventory. We also show that, compared to a firm that acts myopically in the first period, a firm that takes into account the effect of first period decisions on second period profits will price its new product higher and stock more of it in the first period. Thus, the benefit of having a second selling opportunity dominates the detrimental effect of cannibalizing sales of the second period new product.     

Challenges in assessing intent to die: can suicide attempters be trusted?

Assessing a person's intent to die in a suicide attempt is crucial for risk assessment and research, yet suicidal intent is notoriously difficult to measure. People who intended to die when they hurt themselves may deny it, and others may feign intent for secondary gain. Additionally, ambivalence, memory gaps, impulsivity, and fluidity of intent can hinder accurate assessment of intent. Circumstantial evidence, such as a suicide note, may illuminate true intentions but also has substantial limitations. This article summarizes disparate challenges to the measurement of suicidal intent; describes strengths and weaknesses of circumstantial indicators; reviews evidence from studies using the Suicide Intent Scale to show that subjective and circumstantial indicators do not strongly correlate with each other; and concludes with a call to place more trust in individuals whose disclosures of suicidal intent are questionable, even if the possibility for manipulation exists.     

How does training improve customer service quality? The roles of transfer of training and job satisfaction

This study explores the roles of transfer of training and job satisfaction in the relationship between training and customer service quality. The data were collected from 230 employees and their supervisors and analyzed using structural equation modeling. The results show that training indirectly influences customer service quality through the mediation of transfer of training and job satisfaction. Moreover, training directly and indirectly affects transfer of training through the mediation of job satisfaction, which in turn partially mediates the relationship between transfer of training and customer service quality. Furthermore, perceived organizational support (POS) moderates the relationship between training and transfer of training. This study extends social exchange theory, norm of reciprocity, and goal setting theory. Practical implications and future research directions are discussed.     

How Long Should a Customer Wait for Service?

A major concern for service managers is the determination of how long a customer should wait to be served. Services, due to the customer's direct interaction with the process, must face a trade-off between minimizing the cost of having a customer wait and the cost of providing good service. A total cost model is presented for determining how long a customer should wait when these two conflicting cost components are considered. An integral part of this model includes a measure of customer satisfaction with waiting time which is used to develop a waiting cost function. The model is then applied to a major fast food chain, using data collected at several locations. Analysis of the data reveals that the “ideal” waiting time for this firm is significantly less than the current corporate waiting time policy. Thus, as indicated by the model, a corporate policy change is recommended to provide much faster service. The adoption of such a policy would result in increased labor costs, and would simultaneously increase the firm's overall profits. Although appearing contradictory, increases in current labor costs and long-term profits are both possible when management takes the long-range perspective suggested in this paper.     

Where is context? Advancing status research with a contextual value perspective

Most of the numerous studies on social status over the last decade have focused on how individual characteristics influence status attainment and effects, while much less research has examined the role of context in status dynamics. Given how important and pervasive contextual values are in all types of status hierarchies and all aspects of social life, studies on contextual influences are crucial. In order to spur more research on this critical factor, we review existing theories and empirical findings on the antecedents and effects of social status and closely inspect the untested underlying assumptions of the most prominent theory in status research: the functionalist perspective. We aim to expand the functionalist perspective by incorporating the importance of context and proposing the contextual value perspective. We discuss the different influences of cooperative versus competitive relationships—as an example of contextual factors—on status conferral and experience. We also examine the implications of the contextual value perspective for new and promising directions in status research.     

Am I a leader or a friend? How leaders deal with pre-existing friendships

We studied employees who were promoted into a leadership role from within their workgroup and explored how they dealt, psychologically, with being both a leader and a friend of their subordinates. In an inductive, qualitative study of 33 individuals from across three organizations (two mining companies and one childcare organization) we found that these people experienced psychological conflict that resulted in them feeling vulnerable to being exploited or being afraid to use their power over subordinate-friends. We identified five strategies that were used, namely abdicating responsibility, ending the friendship, establishing the divide, overlapping the roles, and using friendship to lead. We developed a model whereby the type of psychological conflict and the person's leader identity (either “the boss”, just a role, or a weak or non-existent leader identity) leads to the choice of resolution strategy. This exploration into understanding pre-existing friendships demonstrates the ongoing need to consider those in a leadership role as “people” and not just “leaders”.     

Synchronous flow shop problems: How much can we gain by leaving machines idle?

In synchronous production lines it may be beneficial to leave machines idle instead of processing the next job immediately. In this paper, the effects of inserting voluntary idle times are discussed in more detail for different objective functions (minimization of makespan, total completion time, maximum lateness). Besides deriving theoretical bounds on how much can be gained by inserting idle times, an extensive computational study is conducted to empirically examine the actual improvements. For this, exact algorithms and heuristics capable of incorporating voluntary idle times are proposed to find (near-) optimal schedules. It can be seen that the potential gain is very large in theory, while the empirical results indicate that in general only small improvements are achievable in practice.     

Who mentors? Contextual prosocial motivation and willingness to be a mentor

This study provides insights for theory and practice into employee willingness to mentor. This is especially important in passing knowledge from one generation of employees to another at a time when ageing populations are seen in many parts of the world. The study examines the relationship of contextual prosocial motivation with willingness to be a mentor while simultaneously considering various individual level influences on contextual prosocial motivation. Hypotheses were evaluated through a structural equation model. Results showed a positive relationship between contextual prosocial motivation and willingness to be a mentor. Additionally, organization-based self-esteem was positively related to contextual prosocial motivation, while proximity to retirement was negatively related to contextual prosocial motivation. Implications of the findings for human resource development are discussed with suggestions offered to strengthen contextual prosocial motivation of employees.     

How can we ascertain,understand and interpret the performance level of a production system? A visual method: 'The plan of preferences'

The general context of this study is the parameterizing of the production system. The aim is to regulate the physical flow according to objectives, usually expressed in terms of performance indicator values. Performance control requires mastery of the consequences of the choices made. It then becomes essential to be able to articulate the potential effects of the various decisions. The existing approaches to solving this problem all imply the use of means of simulation capable of assessing the value of the performance indicators for each configuration of the action parameters. Taking this assumption as a basis, and focusing on the user, a multiple criteria approach is developed towards the understanding and schematization of the behaviour of a given system. The particularity of this approach lies in combining both data analysis and user expertise. The instrumentation approach uses tools for data analysis and assistance in decision making to achieve an original visualization of the structure of performance levels in a plan, called the plan of preferences .