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IT-enabled knowledge ambidexterity and innovation performance in small U.S. firms: The moderator role of social media capability
International audienceThis study examines the impact of information technology (IT)-enabled knowledge ambidexterity on innovation performance, and the potential moderator role of social media capability on a sample composed of 100 small U.S. firms. The empirical analysis suggests that IT infrastructure enables the firm to explore new knowledge and exploit existing/new knowledge to innovate more and better. We also find that social media capability has a positive moderator role in this equation: IT infrastructure and social media capabilities work together to enable knowledge ambidexterity
A High-Frequency Analysis of Price Resolution and Pricing Barriers in Equities on the Adoption of a New Currency
International audienceWe use ultra high frequency (trade by trade) data to demonstrate that equity price clustering and pricing predictability around psychologically important prices in Greece switches away from drachma-focused with the introduction of the euro, but does not immediately switch to euro-clustering. The change in trader price focus around the euro introduction addresses an open debate in the clustering literature on whether the presence of clustering is a bias related to current prices or anchoring to past prices. Our findings of a decline in drachma clustering, but lack of switch to euro effects supports the case for clustering being a trading feature that is slow to transfer to new pricing regimes. A key advantage of the ultra high frequency dataset is we are also able to demonstrate the presence of psychological pricing barriers related to each currency that are not detectable in daily data
Impact of Information Technology Infrastructure Flexibility on Mergers and Acquisitions
International audienceAlthough mergers and acquisitions (M&A) are a common strategy to reduce costs and pursue growth, the variance in returns from M&A is very high. This research examines how information technology (IT) infrastructure flexibility affects M&A. We use a combination of secondary as well as matched-pair survey data from 100 mid-size firms in Spain to investigate this relationship. The empirical analysis suggests that IT infrastructure flexibility affects M&A through two key pathways: a flexible IT infrastructure facilitates the development of business flexibility that provides the responsiveness to seize M&A opportunities and make acquisitions, and a flexible IT infrastructure facilitates the development of post-M&A IT integration capability that provides the control to integrate the IT and business resources of the acquired firm and realize the economic benefits from M&A
Consumers’ responses to product design: Using a Semantic Priming Task to assess automatic understanding of product positioning
International audienceLack of understanding of new products’ positioning is one of the reasons proposed for their failure. Through a process of semantic transformation, product design can communicate a new product’s positioning to consumers. Drawing on the theoretical foundations of implicit cognition and the results of an empirical study, this article demonstrates that the Semantic Priming Task is a valuable tool to evaluate perceived product positioning conveyed by product design and to help practitioners in their decision-making with regard to product design
Design du produit et processus de persuasion hiérarchisé : application à trois produits électro-ménagers
International audienceLe design d’un produit peut être appréhendé comme étant un vecteur de communication générant des réponses affectives et cognitives. Cette recherche s’appuie sur les modèles de persuasion publicitaire de MacKenzie et al. (1986). Elle propose que le processus de persuasion induit par le design d’un produit opère selon une voie hiérarchisée directe, par transfert d’affect, et indirecte, à travers les croyances à l’égard du produit. Les résultats indiquent l’existence de la voie directe et de la voie indirecte, aussi bien pour les croyances fonctionnelles que pour les croyances symboliques. Ils mettent en évidence l’effet des choix stylistiques sur les réponses affectives, cognitives et comportementales des consommateurs
Easy to read, easy to cite?
International audienceEase of readability of Economics Letters abstracts, and number of works cited in an article, is positively related to future citations. Readability appears to particularly matter for mathematical and quantitative methods and macroeconomics papers, while number of works cited is generally important across all articles
Understanding the interplay between covariance forecasting factor models and risk-based portfolio allocations in currency carry trades
International audienceWith the exception of naive methods for portfolio selection, such as the equal weighted approaches, all other methods of portfolio allocation are more or less sensitive to the quality of the inputs considered in constructing the models and risk measures utilised in the allocation framework. The extensively used factor model proposed initially by Sharpe has provided a robust backdrop for development of relevant, micro, macro and context specific or asset specific explanatory variables to be incorporated in a statistical manner as inputs to forecasting models that can then be used to obtain risk measures upon which portfolio allocations are based. However, like all statistical models a set of statistical assumptions accompany this factor model regression framework, one of which has recently been highlighted as seemingly non-validated in financial data. This is of course the assumption such factor models make on homoskedasticity or weak sense covariance stationarity of the returns processes being modelled. Such factor models, therefore have typically failed to cope with an important and ubiquitous feature of financial assets data which often demonstrates heteroskedasticity of the returns variances and covariances
Technology-enabled community data for gaining pre-release brand insights
International audienceIn the past, studies have investigated brand equity only in the ‘post-launch’ context, hence missing opportunities to make early corrections in cases of negative favourability. Using technology-enabled online community data, this study examines whether ‘pre-launch’ brand favourability can predict community's post-launch purchase decisions, by introducing a new construct called community-based brand equity (CoBBE). This study also investigates whether CoBBE can predict future sales of new products. Weekly data are collected for eight weeks before and after product launch from a movie-based online community for a period of 16 months. The results show that community-based variables such as pre-launch brand awareness level, brand favourability and brand strength have a significant influence on 1) community members' post-release purchase decisions both in the opening week as well as the entire lifetime of products, and 2) satisfaction level. The study also finds that CoBBE is a significant predictor of future market sales, thus showing the usefulness of CoBBE as an early warning diagnostic tool which will enable movie studios to gain early brand-related insights as well as to make early corrective actions when needed
Gulf Cooperation Council Cross-Border M&A: Institutional Determinants of Target Nation Selection
International audienceWe provide a first formal study of target nation selection by Gulf Cooperation Council (GCC) firms in the Persian Gulf seeking to internationalize. We initially show the economic drivers behind target nation selection and then demonstrate the additional influence of a target nation’s formal and informal institutions. Effective formal institutions (good governance) and close informal institutions (cultural similarity) in a target nation are preferred. We further examine interactions between formal and informal institutions to demonstrate that these institutional influences act as substitutes to each other in determining the attractiveness of potential target nation when we consider a generalized culture measure, but as complements when we consider a GCC-specific cultural measure. This research therefore provides a starting point for understanding the myriad of drivers involved in the rapidly growing pattern of GCC firms seeking to expand by acquiring overseas
Excessive use of online video streaming services: Impact of recommender system use, psychological factors, and motives
International audienceWith the growing relevance of the Internet as a tool for communication and entertainment, researchers have examined the effects of individual's psychological factors and media use motives on their excessive use of Internet. Since Internet use has significant nuances, the excessive use of particular Internet application, such as social network services and online games, has been studied separately. However, as the major Internet application, online video streaming service has not been investigated. Moreover, other than psychological factors and media use motives, the IT features implemented in the application, such as the recommender system, could also induce excessive use behavior. This paper aims to examine individual's excessive use of online video streaming services and the effects of recommender system in such services. A survey of 490 video streaming service users was conducted. The results show that the use of recommendations, along with lack of self-control, lack of self-esteem and use motive of information seeking, lead to excessive usage of video streaming services. This study contributes to the literature of excessive Internet use by exploring individual's excessive use behavior in video streaming services and incorporating the salient role of recommender system in Internet applications