The relational value of loyalty programs in luxury retailing

In the last decade loyalty programs have gained popularity across various industries. However and until recently, it was debatable if loyalty programs can be effective and appropriate in luxury retailing. If loyalty programs were to succeed in the luxury sector they had to deliver the kind of recognition and rewards that make luxury shoppers feel remarkable. Thus, this study examines how the utilitarian, hedonic and symbolic perceived benefits from loyalty programs can influence the satisfaction and trust with the program and consequently store loyalty. These relationships are compared between luxury and low-end retailers through data collected form a sample of 984 consumers from an online panel in US, using a structured questionnaire. Findings support that the effectiveness of loyalty programs is important to both settings but the strength of this effectiveness varies across the two settings. Specifically, hedonic and symbolic benefits found to be more important in the luxury context and utilitarian benefits in the low-end retailing setting. The results of this research address an important research gap and help to better understand customers' perceptions of loyalty program benefits. Finally, findings provide clear guidelines for managers in luxury retailing on how to design effectively their loyalty program rewards

Linking identity and heritage with image and a reputation for competition

Our study investigates the role of identity and heritage of a place in creating competitiveness of the place and its retailers by utilizing its image and reputation to improve its attraction to tourists. We explored the perceptions of tourists to test a conceptual model which was developed using concepts available in current academic literature. Data were collected relating to a famous retail store in London which is a popular destination. Findings from a survey of 294 store tourists visiting the store suggest that place heritage is the key to driver of competitiveness of both the retailer and place, through their image and reputation. The study has important implications for the expansion of current literature, theory development and business practices. Limitations of the study are outlined and directions for future research are considered

Why consumer animosity reduces product quality perceptions: The role of extreme emotions in international crises

School of Business and Management, Queen Mary University of Londo

Equity Ownership Strategy in Greenfield Investments : Influences of Host Country Infrastructure and MNE Resources in Emerging Markets

This chapter addresses equity ownership strategy in greenfield investments by multinational enterprises (MNEs) in the emerging markets (EMs). It is one of the few studies to hypothesize and analyze influences of host EM physical infrastructure in relation to investment decisions of MNEs. We use resource dependence theory (RDT) as a theoretical basis and test the moderating effects of firm resources like size and host country investment experience. Moreover, the current study assumes a more nuanced approach to studying equity ownership by analyzing wholly owned subsidiaries versus joint ventures (JVs) and including majority versus minority JVs in the analysis as well. The empirical results based on greenfield investments undertaken by Nordic (Danish, Finnish, Norwegian, and Swedish) MNEs in EMs during 1990–2015 reveals the importance of host country physical infrastructure for high equity ownership strategy. Moreover, host country investment experience moderates the effect of physical infrastructure on equity ownership strategy. Finally, the analysis of a sub-sample of greenfield JVs reveals that determinants of equity ownership strategy differ somewhat between greenfield JV or greenfield wholly owned subsidiaries (WOS).© The Author(s) 2019.fi=vertaisarvioitu|en=peerReviewed

Inter-organizational governance and trilateral trust building: a case study of crowdsourcing-based open innovation in China

In a case study of a Chinese crowdsourcing intermediary, we explore the impact of inter-organizational governance on trilateral trust-building. We show that formal control and relational governance mechanisms are essential for swift and knowledge-based trust in R&D crowdsourcing. The case also indicates that Chinese businesses continue to use guanxi (informal personal connections) as a relational and contingent mechanism to maintain affect-based trust, but guanxi is shown to inhibit the growth of Internet-based crowdsourcing for open innovation in China

International Business as disciplinary tautology: an ontological perspective

The identity, legitimacy, and sustainability of international business (IB) as a research field are at stake. IB is being overtaken by the evolution of industries and technology, and critical voices challenge its distinctiveness and value. We identify IB’s ambiguous conceptual space, articulate the roots of the problem, and suggest a perspective for re-legitimizing the discipline. Specifically, we contend that redrawing legitimate knowledge boundaries for IB requires an ontological shift. In this respect, we promote a focus on the processual constitution of international entities across time and a reconceptualization of IB as the amalgamation of local and international forces. The perspective we advocate aims to counterbalance the disciplinary tautology suffered by current IB conceptualizations and to open up the discussion on boundary identification in the field