The Relational Value of Perceived Brand Globalness and Localness

Despite the well-documented importance of consumer-brand relationships, international branding research has not yet investigated whether a brand's perceived globalness and localness influence consumers' identification with the brand. Drawing on brand relationship theory and global/local branding literature, the present research theorizes on how perceived brand globalness and localness influence consumer-brand relationship building and discusses how these influences vary for brands of domestic versus foreign origin. Two studies in mature and emerging markets, using several brands across multiple product categories, reveal that both perceived brand globalness and localness have positive effects on consumer-brand identification. These effects (1) hold in both mature and emerging market settings, (2) are independent of brand quality assessments, (3) interact in a mutually-reinforcing way, and (4) are moderated by brand origin in a substitutional manner indicating that the relational effects of brand localness (globalness) are stronger for foreign (domestic) than for domestic (foreign) brands

The Global/Local Product Attribute: Decomposition, Trivialization and Price Tradeoffs in Emerging and Developed Markets

Accelerating anti-globalization challenges previously undisputed assumptions about the importance of a product’s globalness/localness in purchase decisions. Putting these assumptions to test, we conceptualize globalness/localness as a distinct product attribute and decompose its utility into weight and preference components. Subsequently, we offer an equity-theory-based prediction of the attribute’s declining relevance and quantify its tradeoffs with other attributes by calculating global/local price premiums. Conjoint experiments in two countries (Austria-India) reveal that (1) emerging (developed) market consumers exhibit relative preference for global (local) products, (2) emerging market consumers perceive higher preference inequity between global and local products than developed market consumers, and (3) the corresponding inequity triggers consumers’ cognitive inequity regulation (manifested through attribute trivialization in developed markets) and behavioral inequity regulation (manifested through asymmetrical willingness to pay for global/local products across developed/emerging markets). We also find that attribute trivialization and price premium tolerance are moderated by consumers’ spatial identities and price segment. The findings contribute to the theoretical debate on the relevance of product globalness/localness in de-globalizing times and inform competitive strategy, segmentation-targeting-positioning, and international pricing decisions

Exploring the role of individual level and firm level dynamic capabilities in SMEs’ internationalization

This paper presents a multi-level model that examines the impact of dynamic capabilities on the internationalization of SMEs while taking into account the interactions among them. The purpose of the research is to understand the applicability of dynamic capabilities at the individual and the firm level to the SME internationalization process in developing country context and to assess to what extent a firm’s asset position and individual level dynamic capabilities influence the generation of firm level dynamic capabilities in SMEs. First, the dynamic capabilities theory was theoretically linked to the internationalization phenomenon. The relationships among firm-level dynamic capabilities, individual-level dynamic capabilities (owner specific dynamic capabilities), and internationalization were identified. The research framework and hypotheses were developed and empirically tested with 197 SMEs. The findings established that owner-specific dynamic capabilities have a positive influence on both firm dynamic capabilities and internationalization, and firm dynamic capabilities positively influence internationalization. It was also found that the market assets position measured as perceptual environmental dynamism positively influenced firm dynamic capabilities but structural and reputational asset positions of SMEs did not influence generation of firm dynamic capabilities. Moreover, firm dynamic capabilities had a mediation effect in the relationship between owner-specific dynamic capabilities and internationalization. Theoretically, this confirms the relevance of dynamic capability theory to internationalization and the possibility of integrating existing internationalization theories. Entrepreneurs, SME managers, and policy-makers could gain valuable insights on how entrepreneur and firm capabilities lead to better international prospects from this outcome

Explaining social exchanges in information-based online communities

Purpose – The purpose of this paper is to provide platforms for members to exchange information by information-based online communities (IBOCs, like LinkedIn or Facebook). Because member participation is vital for IBOCs, this research aims to identify and validate factors that drive member participation. Design/methodology/approach – With reference to social exchange theory the authors developed a model of antecedents of participation in IBOCs that was tested with survey data using PLS. Because some of the results contradicted the theory, the authors examined those results in a mainly qualitative study with online community providers. These experts offered explanations that inform the discussion and managerial implications. Findings – Role clarity, provider’s responsiveness, and enjoyment all influence member participation. Contrary to theory, the cooperation of other members affects member participation negatively while a member’s ability shows no effect. Practical implications – This research has several implications for IBOC providers. Because ability does not affect participation directly, providers do not need to worry about lacking ability and can effectively target all potential members. The importance of provider responsiveness signals that IBOC providers should proactively monitor members’ compliance with social norms to lower the social risk for members. The impact of community-specific knowledge and enjoyment on participation puts emphasis on careful community design and the thoughtful implementation of new features that might enhance enjoyment, but reduce role clarity. Originality/value – Whereas most of the participation literature focusses on a dyadic relationship, the research investigates the triadic relationship in which the provider is only an enabler of exchange. Furthermore, the authors bring together two streams of the literature: the participation literature, which tends to focus on offline participation; and the online community literature, which has not yet investigated participation. This is also the first paper to investigate nonlinear effects on participation. Keywords World wide web, Social exchange theory, Information exchange, Customer participation, Customer integration, Online communit

Ten basic questions about structural equations modeling you should know the answers to – But perhaps you don't

Structural Equations Modeling (SEM) has enjoyed increased popularity as an analytical method among Industrial Marketing Management (IMM) authors over the last years. Despite such popularity, many authors fail to understand the basic principles of the method and reviewers are frequently confronted with manuscripts suffering from erroneous applications, insufficient reporting and questionable interpretation of SEM-based findings. Addressing this issue, the present article presents – in non-technical language – the most basic concepts related to SEM, resolves common misconceptions about the method's application and provides hands-on advice to IMM authors and reviewers dealing with SEM-based manuscripts. Structured along ten fundamental questions, the article covers issues related to (1) latent variables and their scaling, (2) types of parameters in SEM, (3) unstandardized and standardized estimates, (4) model identification, (5) model constraints, (6) model fit, (7) independence and saturated models, (8) modification indices, (9) nested models, and (10) equivalent models. After illustrating these concepts with the use of examples, the article concludes with a list of guidelines addressed both to IMM authors crafting manuscripts using SEM and the peers reviewing them