Business Commons^™

Social Media Engagement For Global Influencers, Kara Bentley, Charlene Chu, Cristina Nistor, Ekin Pehlivan, Taylan Yalcin

Business Faculty Articles and Research

Consumers use social media to create content, generate online word-of-mouth, and communicate with brands and other consumers. Consumers engage with influencers who deliver content that is timely, entertaining, and interesting to them. Many influencers have a truly global following across the world. However, there is little research on international aspects of social media influencers. Our paper leverages Hofstede’s cultural dimensions to study consumer engagement using a novel dataset of global sustainability influencers. Our results indicate that the cultural distance between the influencer and the followers is an important driver of engagement in a nuanced way. While the level of superficial, …

A Multimodal Analysis Using An Exemplar From Japanese Television Advertising, Noel Murray

Business Faculty Articles and Research

A multimodal analysis is used to investigate for the presence of situated meanings of uchi/soto in Japanese advertising. The analysis supports the proposition that discourses of gendered relations of uchi/soto may be found in contemporary Japanese television advertising. The article argues that relations of uchi/soto provide a unique window into Japanese consumption behavior. I advocate for multimodal critical discourse analysis as a preferred methodology and theoretical framework for multimodal advertising research applications. I discuss social and economic implications of reproducing gendered relations of uchi/soto in advertising and offer suggestions for future research on situated meanings.

Unrequited: Asymmetry In Interorganizational Trust, Melissa E. Graebner, Fabrice Lumineau, Darcy Fudge Kamal

Business Faculty Articles and Research

Many studies of interorganizational relationships assume that trust between organizations is symmetric. In this essay, we explore the origins of this assumption and examine relevant quantitative and qualitative evidence from the literatures on strategy, marketing, supply chain management, and information systems. We conclude that no systematic evidence currently exists to support the assumption that interorganizational trust is typically symmetric. We explore how the possibility of asymmetry complicates interpretation of previous research on the effects of interorganizational trust. We encourage further research to identify conditions under which symmetry is likely, and offer a variety of strategies that scholars may use to …

Mutually Supportive Or Trade-Offs: An Analysis Of Competitive Priorities In The Emerging Economy Of India, Ravi Kathuria, Narinder Nath Kathuria, Abhishek Kathuria

Business Faculty Articles and Research

To refine the theories of operations strategy, we need research from all different situational contexts, including different countries—both developing and developed. There have been many studies, including some replications, done in various parts of the world to further the debate on whether competitive priorities are mutually supportive or if they present potential trade-offs, but hardly any from a rapidly growing economy, such as India. This study is a significant attempt in that direction. After a thorough review of the literature, a set of hypotheses is introduced to test whether Indian manufacturers view competitive priorities as mutually supportive or trade-offs. The …

Creating Trust In Piranha-Infested Waters: The Confluence Of Buyer, Supplier And Host Country Contexts, Akbar Zaheer, Darcy Fudge Kamal

Business Faculty Articles and Research

Research by Dyer and Chu (2000) suggests that trust in exchange varies significantly across borders and influences the level of trust in cross-border exchange dyads. However, while a good start, research has yet to develop the concept that not only can the countries of origin of the partners to the exchange influence the nature and outcomes of dyadic trust, but also the country where the exchange dyad is located. Furthermore, such home and host country differences may interact with dyad-level differences in trust creation capabilities and influence trust violation and repair. We develop a framework and propositions along these lines.

Capm In Up And Down Markets: Evidence From Six European Emerging Markets, Jianhua Zhang, Clas Wihlborg

Business Faculty Articles and Research

The pricing of equity in six European emerging capital markets is analysed using both the conventional CAPM and a ‘conditional’ CAPM wherein up and down markets are separated. International influences on the stock markets are also analysed. The empirical evidence from a sample of 1,131 firms from the six markets indicates that there exists a significant relationship between beta and returns when up and down markets are separated. The international CAPM performs well in some markets that have become increasingly integrated with the world market. The general implication of the analysis is that beta can be a useful risk-measure for …

Competitive Priorities And Strategic Consensus In Emerging Economies: Evidence From India, Ravi Kathuria, Stephen J. Porth, N. N. Kathuria, T. K. Kohli

Business Faculty Articles and Research

Purpose

– The purpose of this paper is to understand the competitive priorities of manufacturers in India, and examine the level of agreement or strategic consensus between senior executives and manufacturing managers on manufacturing competitive priorities in light of the prevalent culture.

Design/methodology/approach

– Survey data collected from 156 respondents from 78 manufacturing units based on a national sample in India are used to test the hypotheses using the paired samples t‐tests and multivariate analysis of variance.

Findings

– A relatively high emphasis by both levels of managers on quality, compared to the other three competitive priorities, is noteworthy and …

The Impact Of Monetary Regimes On International Trade Are Eu Experiences Relevant For Asia?, Apanard P. Angkinand, Clas Wihlborg

Business Faculty Articles and Research

We extend much research that has been devoted to the effects of the European Monetary Union (EMU) on international trade by introducing monetary regime variables in bilateral export equations with the objective of capturing the effects on trade of changes in monetary regimes relative to the pure EMU effects. To make the analysis relevant from an Asian perspective trade effects of the EU’s internal markets are also separated from EMU effects. To identify these different effects we include three groups of countries in our sample: EMU countries which are also members of the EU, EU countries outside the EMU and …

Endogenous Oca (Optimum Currency Area) Analysis And The Early Euro Experience, Thomas D. Willett, Orawan Permpoon, Clas Wihlborg

Business Faculty Articles and Research

Some have argued that the endogenous responses to the formation of a currency area are so strong that one need not worry about optimum currency area conditions ex ante. We argue that this is much too strong a conclusion. We draw on a number of recent studies to evaluate the endogeneity experiences of the eurozone in three major areas; trade flows, business cycle synchronisation and structural reforms to improve labour and product market flexibility. Simple before-and-after comparisons are insufficient for analysis of endogeneity. The experiences of non-euro Western European economies suggest that broader trends also had considerable influence on trade …

Origins And Resolution Of Financial Crises: Lessons From The Current And Northern European Crises, Finn Ostrup, Lars Oxelheim, Clas Wihlborg

Business Faculty Articles and Research

Since July 2007, the world economy has experienced a severe financial crisis that originated in the U.S. housing market. Subsequently, the crisis has spread to financial sectors in European and Asian economies and led to a severe worldwide recession. The existing literature on financial crises rarely distinguishes between factors that create the original strain on the financial sector and factors that explain why these strains lead to system-wide contagion and a possible credit crunch. Most of the literature on financial crises refers to factors that cause an original disruption in the financial system. We argue that a financial crisis with …

Origins And Resolution Of Financial Crises: Lessons From The Current And Northern European Crises, Finn Østrup, Lars Oxelheim, Clas Wihlborg

Business Faculty Articles and Research

Since July 2007, the world economy has experienced a severe financial crisis that originated in the U.S. housing market. Subsequently, the crisis has spread to financial sectors in European and Asian economies and led to a severe worldwide recession. The existing literature on financial crises rarely distinguishes between factors that create the original strain on the financial sector and factors that explain why these strains lead to system-wide contagion and a possible credit crunch. Most of the literature on financial crises refers to factors that cause an original disruption in the financial system. We argue that a financial crisis with …

International Growth Strategies Of Service And Manufacturing Firms: The Case Of Banking And Chemical Industries, Ravi Kathuria, Maheshkumar P. Joshi, Stephanie Dellande

Business Faculty Articles and Research

Purpose

– The purpose of this paper is to examine the differences in growth strategies – domestic and international – of manufacturing and service firms. Hardly any literature exists that empirically investigates the differences on account of the distinctive characteristics of goods and services, and such studies rarely draw from the operations management field.

Design/methodology/approach

– Multiple analysis of variance is used to analyze longitudinal data from multiple secondary sources.

Findings

– Mixed services, such as banks, focus more on domestic growth and less on international growth. Manufacturers, such as chemical firms, focus more on international activities as compared to …

Evaluating The Nordea Experiment: Evidence From Market And Accounting Data, Lawrence G. Goldberg, Richard J. Sweeney, Clas Wihlborg

Business Faculty Articles and Research

This paper discusses results and difficulties of comparing banks’ performance based on publicly available data for the case of Nordea, a pan-Nordic bank created through mergers of important national banks. The objective is to determine whether Nordea’s unique strategy of functional integration across four countries can be advantageous. For stock-market data, however, Nordea does not have stable betas on risk factors, and thus the comparables method must be used with great care. The Nordea holding company performed about as well as the comparables, both in terms of stock-market and accounting data. Nordea banks in individual countries outperformed comparable holding companies; …

Outsourcing Central Banking: Lessons From Estonia, Sarkis Joseph Khoury, Clas Wihlborg

Business Faculty Articles and Research

An orthodox currency board (CB) renders central banking redundant for interest and exchange rate determination. Thereby, monetary policy is de facto outsourced. Foreign direct investment (FDI) in banking can lead to outsourcing of the second important central bank function, responsibility for banking supervision. Economic and political conditions for outsourcing of central banking are discussed. Estonia's experience with a CB and expanding foreign involvement in banking is reviewed. The Argentine CB experience is discussed briefly to provide a contrast. The conclusion outlines the conditions for successful currency outsourcing to another country or regional authority.

Relative Price Changes And Exchange Rate Determination With Slow Price Adjustment: An Empirical Analysis, Clas Wihlborg, Madelyn Antoncic

Business Faculty Articles and Research

The general purpose of this paper is to analyze empirically sectoral price adjustment in the exchange rate adjustment process. Relative price changes may occur within a sector between countries, and within a country between sectors. Our main objective is to test the hypothesis that both kinds of relative price changes occur in the adjustment process to disturbances in money demand and supply. In particular, we expect that the relative prices among goods of different "tradedness"--ranging from perfectly traded to non-traded goods--are affected by such disturbances. Our second objective is to test empirically whether the nature of exchange rate adjustment is …