Liability of country foreignness and liability of regional foreignness: their effects on geographic diversification and firm performance

The costs of inter- and intra-regional diversification have been widely discussed in the existing international business literature, but the findings are mixed. Explanations for the mixed findings have important managerial implications, because business managers have to estimate accurately the costs of doing business within and across regions before they make their internationalization decisions. To explain the existing mixed findings, this study differentiates between liabilities of foreignness at the country and regional levels, and explores the joint effects of liability of country foreignness (LCF) and liability of regional foreignness (LRF) on the performance of internationalizing firms. Using data from 167 Canadian firms, we find that LCF may not necessarily be negatively correlated with intra-regional diversification, but LRF is positively correlated with inter-regional diversification. LCF moderates the relationship between LRF and inter-regional diversification, and also mediates the relationship between intra-regional diversification and firm performance. LRF mediates the relationship between inter-regional diversification and firm performance. Missing one or more of these variables may result in different cost estimates. Identification of the relationships between these variables helps to improve the accuracy of estimating the costs of doing business aboard.

Multinational subsidiary sales and performance in South East Asia

We extend the theory of the multinational enterprise (MNE) by exploring the concept of subsidiary-specific advantages (SSAs) as a driver for subsidiary performance. We investigate the relationship of host country-specific advantages (host CSAs) in the form of market attractiveness, SSAs and subsidiary sales as they affect subsidiary performance. From an original primary dataset of 101 British multinational (MNE) subsidiaries in six South East Asian countries, our analysis reveals three significant findings. First, host market attractiveness has a statistically positive impact on the performance of subsidiaries. Second, the three traditional SSAs of general management, marketing capabilities and invested capital enhance subsidiary performance. Third, we examine geographic direction and types of customers for subsidiary sales by following international accounting standards. We find that these subsidiaries generate on average 95 percent of total sales from the Asia Pacific region and 91 percent of total sales from external customers. Our findings have important research and managerial implications.

Quality management, environmental management and firm performance in the Spanish hotel industry

Comunicación presentada en el XVI Simposio Internacional de Turismo y Ocio, ESADE, 23 mayo 2007.

A multivariate examination of the relationship between strategic planning and organisational performance

Strategic planning and more specifically, the impact of strategic planning on organisational performance has been the subject of significant academic interest since the early 1970's. However, despite the significant amount of previous work examining the relationship between strategic planning and organisational performance, a comprehensive literature review identified a number of areas where contributions to the domain of study could be made. In overview, the main areas for further study identified from the literature review were a) a further examination of both the dimensionality and conceptualisation of strategic planning and organisational performance and b) a further, multivariate, examination of the relationship between strategic planning and performance, to capture the newly identified dimensionality. In addition to the previously identified strategic planning and organisational performance constructs, a comprehensive literature based assessment was undertaken and five main areas were identified for further examination, these were a) organisational b) comprehensive strategic choice, c) the quality of strategic options generated, d) political behavior and e) implementation success. From this, a conceptual model incorporating a set of hypotheses to be tested was formulated. In order to test the conceptual model specified and also the stated hypotheses, data gathering was undertaken. The quantitative phase of the research involved a mail survey of senior managers in medium to large UK based organisations, of which a total of 366 fully useable responses were received. Following rigorous individual construct validity and reliability testing, the complete conceptual model was tested using latent variable path analysis. The results for the individual hypotheses and also the complete conceptual model were most encouraging. The findings, theoretical and managerial implications, limitations and directions for future research are discussed.

Determinants of sales performance in insurance industry:a cross-cultural comparison between the UK and Malaysia

This thesis is concerned with an empirical investigation of the factors that predict a successful salesperson, using a cross-cultural comparison of two countries: the UK and Malaysia. Besides collecting quantitative data, qualitative data on organisational, environmental and cultural factors were also collected through interviews, personal and case observations. The quantitative data consist of sixteen independent factors and three dependent factors. The independent variables include self-efficacy, self-esteem, locus of control, self-monitoring, extrinsic motivation, intrinsic motivation, experience, training perception, role ambiguity, role conflict, role inaccuracy, gender, age, education, race and religion. The dependent variables are performance target achieved, performance earnings and performance ratings. Questionnaires were distributed to about 500 salespersons in each country, from three insurance companies in the UK and two insurance companies in Malaysia. Response rates were 75 and 50 percent from the UK and Malaysia respectively. The survey results indicated that a salesperson's performance in the UK is predicted by self-efficacy, internal locus of control, self-esteem, extrinsic motivation, experience, training perceptions, role conflict and gender. In Malaysia, a salesperson's performance is predicted by self-efficacy, self-monitoring, experience, role conflict, role ambiguity, education, gender, race and religion. Self-efficacy, experience, role conflict and gender are common predictors of salespersons' performance in both cultures. The likely explanation for these results is culture differences, i.e. UK has a homogeneous culture, while Malaysia has a heterogeneous one. Results from the case observations, such as organisational and environmental factors, give supporting evidence in explaining the empirical results. Implications from the findings are discussed from two aspects: (1) theoretical implications for divergence/convergence theory, Hofstede's model, Churchill's model, and (2) managerial implications for selection, training, motivation and appraisal.

Mobile Search and Advertising

Mobile advertising is a rapidly growing sector providing brands and marketing agencies the opportunity to connect with consumers beyond traditional and digital media and instead communicate directly on their mobile phones. Mobile advertising will be intrinsically linked with mobile search, which has transported from the internet to the mobile and is identified as an area of potential growth. The result of mobile searching show that as a general rule such search result exceed 160 characters; the dialog is required to deliver the relevant portion of a response to the mobile user. In this paper we focus initially on mobile search and mobile advert creation, and later the mechanism of interaction between the user’s request, the result of searching, advertising and dialog.

Effects of susceptibility to normative influence and type of testimonial on attitudes toward print advertising

In two experiments, we show how a consumer’s susceptibility to normative influence (SNI) offers useful insights into the effectiveness of two types of testimonials: a typical person endorsement (Study 1) and a celebrity endorsement (Study 2). Specifically, we suggest that two variables moderate testimonial effects—SNI and product attribute information. Results show that in forming their evaluations, high-SNI consumers place a greater emphasis on the testimonial than on the attribute information. In contrast, low-SNI consumers are more influenced by attribute information. A mediation analysis shows that advertising attitudes for high-SNI consumers are mediated by testimonial thoughts, whereas the attitudes for low-SNI consumers are mediated by their attribute thoughts. Theoretical and managerial implications are presented.

The impact of susceptibility to informational influence on the effectiveness of consumer testimonials

In this article we examine how a consumer's susceptibility to informative influence (SII) affects the effectiveness of consumer testimonials in print advertising. More specifically, we show that consumers that are high in SII and that seek consumption-relevant information from other people are more influenced by the strength of the testimonial information than the strength of the attribute information. Conversely, consumers low in SII place greater emphasis on the strength of the attribute information when forming their evaluations. Our results show that consumer psychological traits can have an important impact on the acceptance of testimonial advertising. Theoretical and managerial implications of our findings are discussed.

The impact of brand and product placements in electronic games

In an environment where it has become increasingly difficult to attract consumer attention, marketers have begun to explore alternative forms of marketing communication. One such form that has emerged is product placement, which has more recently appeared in electronic games. Given changes in media consumption and the growth of the games industry, it is not surprising that games are being exploited as a medium for promotional content. Other market developments are also facilitating and encouraging their use, in terms of both the insertion of brand messages into video games and the creation of brand-centred environments, labelled ‘advergames’. However, while there is much speculation concerning the beneficial outcomes for marketers, there remains a lack of academic work in this area and little empirical evidence of the actual effects of this form of promotion on game players. Only a handful of studies are evident in the literature, which have explored the influence of game placements on consumers. The majority have studied their effect on brand awareness, largely demonstrating that players can recall placed brands. Further, most research conducted to date has focused on computer and online games, but consoles represent the dominant platform for play (Taub, 2004). Finally, advergames have largely been neglected, particularly those in a console format. Widening the gap in the literature is the fact that insufficient academic attention has been given to product placement as a marketing communication strategy overall, and to games in general. The unique nature of the strategy also makes it difficult to apply existing literature to this context. To address a significant need for information in both the academic and business domains, the current research investigates the effects of brand and product placements in video games and advergames on consumer attitude to the brand and corporate image. It was conducted in two stages. Stage one represents a pilot study. It explored the effects of use simulated and peripheral placements in video games on players’ and observers’ attitudinal responses, and whether these are influenced by involvement with a product category or skill level in the game. The ability of gamers to recall placed brands was also examined. A laboratory experiment was employed with a small sample of sixty adult subjects drawn from an Australian east-coast university, some of who were exposed to a console video game on a television set. The major finding of study one is that placements in a video game have no effect on gamers’ attitudes, but they are recalled. For stage two of the research, a field experiment was conducted with a large, random sample of 350 student respondents to investigate the effects on players of brand and product placements in handheld video games and advergames. The constructs of brand attitude and corporate image were again tested, along with several potential confounds. Consistent with the pilot, the results demonstrate that product placement in electronic games has no effect on players’ brand attitudes or corporate image, even when allowing for their involvement with the product category, skill level in the game, or skill level in relation to the medium. Age and gender also have no impact. However, the more interactive a player perceives the game to be, the higher their attitude to the placed brand and corporate image of the brand manufacturer. In other words, when controlling for perceived interactivity, players experienced more favourable attitudes, but the effect was so weak it probably lacks practical significance. It is suggested that this result can be explained by the existence of excitation transfer, rather than any processing of placed brands. The current research provides strong, empirical evidence that brand and product placements in games do not produce strong attitudinal responses. It appears that the nature of the game medium, game playing experience and product placement impose constraints on gamer motivation, opportunity and ability to process these messages, thereby precluding their impact on attitude to the brand and corporate image. Since this is the first study to investigate the ability of video game and advergame placements to facilitate these deeper consumer responses, further research across different contexts is warranted. Nevertheless, the findings have important theoretical and managerial implications. This investigation makes a number of valuable contributions. First, it is relevant to current marketing practice and presents findings that can help guide promotional strategy decisions. It also presents a comprehensive review of the games industry and associated activities in the marketplace, relevant for marketing practitioners. Theoretically, it contributes new knowledge concerning product placement, including how it should be defined, its classification within the existing communications framework, its dimensions and effects. This is extended to include brand-centred entertainment. The thesis also presents the most comprehensive analysis available in the literature of how placements appear in games. In the consumer behaviour discipline, the research builds on theory concerning attitude formation, through application of MacInnis and Jaworski’s (1989) Integrative Attitude Formation Model. With regards to the games literature, the thesis provides a structured framework for the comparison of games with different media types; it advances understanding of the game medium, its characteristics and the game playing experience; and provides insight into console and handheld games specifically, as well as interactive environments generally. This study is the first to test the effects of interactivity in a game environment, and presents a modified scale that can be used as part of future research. Methodologically, it addresses the limitations of prior research through execution of a field experiment and observation with a large sample, making this the largest study of product placement in games available in the literature. Finally, the current thesis offers comprehensive recommendations that will provide structure and direction for future study in this important field.

The effectiveness of literalism-symbolism in business-to-business advertising

A basic element in advertising strategy is the choice of an appeal. In business-to-business (B2B) marketing communication, a long-standing approach relies on literal and factual, benefit-laden messages. Given the highly complex, costly and involved processes of business purchases, such approaches are certainly understandable. This project challenges the traditional B2B approach and asks if an alternative approach—using symbolic messages that operate at a more intrinsic or emotional level—is effective in the B2B arena. As an alternative to literal (factual) messages, there is an emerging body of literature that asserts stronger, more enduring results can be achieved through symbolic messages (imagery or text) in an advertisement. The present study contributes to this stream of research. From a theoretical standpoint, the study explores differences in literal-symbolic message content in B2B advertisements. There has been much discussion—mainly in the consumer literature—on the ability of symbolic messages to motivate a prospect to process advertising information by necessitating more elaborate processing and comprehension. Business buyers are regarded as less receptive to indirect or implicit appeals because their purchase decisions are based on direct evidence of product superiority. It is argued here, that these same buyers may be equally influenced by advertising that stimulates internally-directed motivation, feelings and cognitions about the brand. Thus far, studies on the effect of literalism and symbolism are fragmented, and few focus on the B2B market. While there have been many studies about the effects of symbolism no adequate scale exists to measure the continuum of literalism-symbolism. Therefore, a first task for this study was to develop such a scale. Following scale development, content analysis of 748 B2B print advertisements was undertaken to investigate whether differences in literalism-symbolism led to higher advertising performance. Variations of time and industry were also measured. From a practical perspective, the results challenge the prevailing B2B practice of relying on literal messages. While definitive support was not established for the use of symbolic message content, literal messages also failed to predict advertising performance. If the ‘fact, benefit laden’ assumption within B2B advertising cannot be supported, then other approaches used in the business-to-consumer (B2C) sector, such as symbolic messages may be also appropriate in business markets. Further research will need to test the potential effects of such messages, thereby building a revised foundation that can help drive advances in B2B advertising. Finally, the study offers a contribution to the growing body of knowledge on symbolism in advertising. While the specific focus of the study relates to B2B advertising, the Literalism-Symbolism scale developed here provides a reliable measure to evaluate literal and symbolic message content in all print advertisements. The value of this scale to advance our understanding about message strategy may be significant in future consumer and business advertising research.

Entrepreneurship : from denial to discovery in nonprofit art museums?

This research explores the function of entrepreneurship in nonprofit art museums. Traditionally, entrepreneurship literature features debates on customer orientation and innovation. This paper reviews a tension in entrepreneurship: the relationship between limited funding and the need to innovate in nonprofit art museums. The paper develops a construct by which to explain the structure of entrepreneurship in nonprofit art museums in Australia and New Zealand since 1975. From this discussion, different strategies and tensions are highlighted that nonprofit art museum directors have used. The dynamics are explored in ten large art museums and the managerial implications are developed.

Performance analysis of PTP components for IEC 61850 process bus applications

New substation automation applications, such as sampled value process buses and synchrophasors, require sampling accuracy of 1 µs or better. The Precision Time Protocol (PTP), IEEE Std 1588, achieves this level of performance and integrates well into Ethernet based substation networks. This paper takes a systematic approach to the performance evaluation of commercially available PTP devices (grandmaster, slave, transparent and boundary clocks) from a variety of manufacturers. The ``error budget'' is set by the performance requirements of each application. The ``expenditure'' of this error budget by each component is valuable information for a system designer. The component information is used to design a synchronization system that meets the overall functional requirements. The quantitative performance data presented shows that this testing is effective and informative. Results from testing PTP performance in the presence of sampled value process bus traffic demonstrate the benefit of a ``bottom up'' component testing approach combined with ``top down'' system verification tests. A test method that uses a precision Ethernet capture card, rather than dedicated PTP test sets, to determine the Correction Field Error of transparent clocks is presented. This test is particularly relevant for highly loaded Ethernet networks with stringent timing requirements. The methods presented can be used for development purposes by manufacturers, or by system integrators for acceptance testing. A sampled value process bus was used as the test application for the systematic approach described in this paper. The test approach was applied, components were selected, and the system performance verified to meet the application's requirements. Systematic testing, as presented in this paper, is applicable to a range of industries that use, rather than develop, PTP for time transfer.

Project 27 : insights into a production-centred study on art direction and love

This paper offers insight into the development of a PhD in advertising art direction. For over half a century art directors within the advertising industry have been adapting to the changes occurring in media, culture and the corporate sector, toward enhancing professional performance and competitiveness. These professionals seldom offer explicit justification about the role images play in effective communication. It is uncertain how this situation affects advertising performance, because advertising has, nevertheless, evolved in parallel to this as an industry able to fabricate new opportunities for itself. However, uncertainties in the formalization of art direction knowledge restrict the possibilities of knowledge transfer in higher education. The theoretical knowledge supporting advertising art direction has been adapted spontaneously from disciplines that rarely focus on specific aspects related to the production of advertising content, like, for example: marketing communication, design, visual communication, or visual art. Meanwhile, in scholarly research, vast empirical knowledge has been generated about advertising images, but often with limited insight into production expertise. Because art direction is understood as an industry practice and not as an academic discipline, an art direction perspective in scholarly contributions is rare. Scholarly research that is relevant to art direction seldom offers viewpoints to help understand how it is that research outputs may specifically contribute to art direction practices. There is a need to formally understanding the knowledge underlying art direction and using it to explore models for visual analysis and knowledge transfer in higher education. This paper provides insight into the development of a thesis that explored this need. The PhD thesis to which this paper refers is Strategic Aesthetics in Advertising Campaigns: Implications for Art Direction Education.

Privacy concerns and the purchasing of travel services online

The travel industry has come to rely heavily on information and communication technologies to facilitate relations with consumers. Compiling consumer data profiles has become easier and it is generally thought that this has led to an increase in consumers' privacy concerns, which may have an adverse impact on their willingness to purchase online. Three specific aspects of privacy that have received attention from researchers are unauthorized secondary use of data, invasion of privacy, and errors. A study was undertaken to examine the effects of these factors on prior purchase of travel services via the Internet and future purchase probability. No evidence was found to indicate that such privacy concerns affect online purchase behavior within the travel industry. Managerial implications are discussed.

Rubbing shoulders with mobile service robots

This paper is not about the details of yet another robot control system, but rather the issues surrounding realworld robotic implementation. It is a fact that in order to realise a future where robots co-exist with people in everyday places, we have to pass through a developmental phase that involves some risk. Putting a “Keep Out, Experiment in Progress” sign on the door is no longer possible since we are now at a level of capability that requires testing over long periods of time in complex realistic environments that contain people. We all know that controlling the risk is important – a serious accident could set the field back globally – but just as important is convincing others that the risks are known and controlled. In this article, we describe our experience going down this path and we show that mobile robotics research health and safety assessment is still unexplored territory in universities and is often ignored. We hope that the article will make robotics research labs in universities around the world take note of these issues rather than operating under the radar to prevent any catastrophic accidents.