ABSTRACT Scholars suggest that fairness is a precursor to ethical firm behaviour. Existing resear... more ABSTRACT Scholars suggest that fairness is a precursor to ethical firm behaviour. Existing research suggest that (1) commonly used single item fairness measures lack reliability and validity, and (2) single item scales do not contribute to understanding fairness as a multidimensional concept. Using the means-end framework, we develop a measure of fairness quality (FQ) of service experience purchases. We conceptualise, construct, refine and test the FQ scale over multiple stages of data collection. Using the soft-laddering interviewing technique, we initially explore fairness quality attributes. Subsequently, we design and conduct two surveys to test the FQ measure. The final scale contains 21 items in four dimension s: transparency, associations, moderations and process. The FQ scale demonstrates good psychometric properties, passing all reliability and validity tests. The scale extends existing research on fairness and provides a new conceptualisation of fairness quality. Marketers are encouraged to manage their fairness quality systematically in order to stimulate social and ethical behaviour. We present theoretical and managerial implications, with future research directions.
Purpose – The purpose of this study is to (a) develop a conceptual framework exploring the relati... more Purpose – The purpose of this study is to (a) develop a conceptual framework exploring the relationships between perceived negative firm customization, unfairness perceptions, and customer loyalty intentions, and (b) investigate the moderating effects of trust in these relationships. The study explores how customizing offers to match customers’ individual needs and how treating customers differentially provoke unfairness perceptions among those not being considered most important. While the literature discusses unfairness perceptions of pricing, promotion, and service, less is known about unfairness in customization practices. Design/methodology/approach – Using a survey approach, 443 completed questionnaires we collected. Following validation of our item measures, a hierarchical linear regression analysis was conducted to test the conceptual model and hypothesized linkages between our constructs. Findings – The results demonstrate that customers’ negative perceptions of customizati...
PurposeThe aim of this viewpoint paper is to discuss the impact of social ties between chief exec... more PurposeThe aim of this viewpoint paper is to discuss the impact of social ties between chief executive officers (CEOs) and board directors.Design/methodology/approachThis is a viewpoint paper, which looks at social ties between CEOs and board directors.FindingsThe paper finds that diversifying candidate backgrounds and giving shareholders more power in nominating directors might lead to more independent and more effective boards.Originality/valueThe paper discusses the findings of research carried out at Judge Business School, which suggests that a broader selection committee for appointing directors increases the likelihood of an effective, impartial board.
We investigate whether managerial ownership enhances firm value by exploiting exogenous variation... more We investigate whether managerial ownership enhances firm value by exploiting exogenous variation resulting from stock price reactions to blockholder deaths. We find, first, that the average stock price reaction to the sudden death of inside blockholders ranges from -5% for small ownership stakes to 4% for large ownership stakes. The positive and significant relationship between ownership and stock price reactions implies that the beneficial effect of managerial ownership disappears as ownership increases. Second, this relationship is stronger when outside blockholders and inside non-blockholders are used as control groups. Third, we show that stock price reactions to the sudden death of outside blockholders are negatively related to their ownership stake. Our results are robust to controlling for anticipated control activity and various specifications of the tests. Overall our results provide empirical evidence of the incentive and entrenchment effects of managerial ownership.
Purpose– Today marketers operate in globalised markets, planning new ways to engage with domestic... more Purpose– Today marketers operate in globalised markets, planning new ways to engage with domestic and foreign customers alike. While there is a greater need to understand these two customer groups, few studies examine the impact of customer engagement tactics on the two customer groups, focusing on their perceptual differences. Even less attention is given to customer engagement tactics in a cross-cultural framework. In this research, the authors investigate customers in China and UK, aiming to compare their perceptual differences on the impact of multiple customer engagement tactics.Design/methodology/approach– Using a quantitative approach with 286 usable responses from China and the UK obtained through a combination of person-administered survey and computer-based survey screening process, the authors test a series of hypotheses to distinguish across-cultural differences.Findings– Findings show that the collectivists (Chinese customers) perceive customer engagement tactics differ...
This paper investigates the impact of social ties on the effectiveness of boards of directors. Wh... more This paper investigates the impact of social ties on the effectiveness of boards of directors. When the chief executive officer (CEO) and a number of directors belong to the same social networks, the CEO is less likely to be dismissed for poor performance. The results are robust to different measures of performance and networks, and consistent after controlling for CEO ability and connected boards' superior information. Although being ousted is costly for all CEOs—who must then devote time to finding new employment and only succeed in 62% of cases—socially connected CEOs are more likely to find new and better employment after a forced departure. Evidence from this paper suggests that close social ties between board members and CEOs impact the workings of the board of directors. This paper was accepted by Brad Barber, Teck Ho, and Terrance Odean, special issue editors.
ABSTRACT Scholars suggest that fairness is a precursor to ethical firm behaviour. Existing resear... more ABSTRACT Scholars suggest that fairness is a precursor to ethical firm behaviour. Existing research suggest that (1) commonly used single item fairness measures lack reliability and validity, and (2) single item scales do not contribute to understanding fairness as a multidimensional concept. Using the means-end framework, we develop a measure of fairness quality (FQ) of service experience purchases. We conceptualise, construct, refine and test the FQ scale over multiple stages of data collection. Using the soft-laddering interviewing technique, we initially explore fairness quality attributes. Subsequently, we design and conduct two surveys to test the FQ measure. The final scale contains 21 items in four dimension s: transparency, associations, moderations and process. The FQ scale demonstrates good psychometric properties, passing all reliability and validity tests. The scale extends existing research on fairness and provides a new conceptualisation of fairness quality. Marketers are encouraged to manage their fairness quality systematically in order to stimulate social and ethical behaviour. We present theoretical and managerial implications, with future research directions.
Purpose – The purpose of this study is to (a) develop a conceptual framework exploring the relati... more Purpose – The purpose of this study is to (a) develop a conceptual framework exploring the relationships between perceived negative firm customization, unfairness perceptions, and customer loyalty intentions, and (b) investigate the moderating effects of trust in these relationships. The study explores how customizing offers to match customers’ individual needs and how treating customers differentially provoke unfairness perceptions among those not being considered most important. While the literature discusses unfairness perceptions of pricing, promotion, and service, less is known about unfairness in customization practices. Design/methodology/approach – Using a survey approach, 443 completed questionnaires we collected. Following validation of our item measures, a hierarchical linear regression analysis was conducted to test the conceptual model and hypothesized linkages between our constructs. Findings – The results demonstrate that customers’ negative perceptions of customizati...
PurposeThe aim of this viewpoint paper is to discuss the impact of social ties between chief exec... more PurposeThe aim of this viewpoint paper is to discuss the impact of social ties between chief executive officers (CEOs) and board directors.Design/methodology/approachThis is a viewpoint paper, which looks at social ties between CEOs and board directors.FindingsThe paper finds that diversifying candidate backgrounds and giving shareholders more power in nominating directors might lead to more independent and more effective boards.Originality/valueThe paper discusses the findings of research carried out at Judge Business School, which suggests that a broader selection committee for appointing directors increases the likelihood of an effective, impartial board.
We investigate whether managerial ownership enhances firm value by exploiting exogenous variation... more We investigate whether managerial ownership enhances firm value by exploiting exogenous variation resulting from stock price reactions to blockholder deaths. We find, first, that the average stock price reaction to the sudden death of inside blockholders ranges from -5% for small ownership stakes to 4% for large ownership stakes. The positive and significant relationship between ownership and stock price reactions implies that the beneficial effect of managerial ownership disappears as ownership increases. Second, this relationship is stronger when outside blockholders and inside non-blockholders are used as control groups. Third, we show that stock price reactions to the sudden death of outside blockholders are negatively related to their ownership stake. Our results are robust to controlling for anticipated control activity and various specifications of the tests. Overall our results provide empirical evidence of the incentive and entrenchment effects of managerial ownership.
Purpose– Today marketers operate in globalised markets, planning new ways to engage with domestic... more Purpose– Today marketers operate in globalised markets, planning new ways to engage with domestic and foreign customers alike. While there is a greater need to understand these two customer groups, few studies examine the impact of customer engagement tactics on the two customer groups, focusing on their perceptual differences. Even less attention is given to customer engagement tactics in a cross-cultural framework. In this research, the authors investigate customers in China and UK, aiming to compare their perceptual differences on the impact of multiple customer engagement tactics.Design/methodology/approach– Using a quantitative approach with 286 usable responses from China and the UK obtained through a combination of person-administered survey and computer-based survey screening process, the authors test a series of hypotheses to distinguish across-cultural differences.Findings– Findings show that the collectivists (Chinese customers) perceive customer engagement tactics differ...
This paper investigates the impact of social ties on the effectiveness of boards of directors. Wh... more This paper investigates the impact of social ties on the effectiveness of boards of directors. When the chief executive officer (CEO) and a number of directors belong to the same social networks, the CEO is less likely to be dismissed for poor performance. The results are robust to different measures of performance and networks, and consistent after controlling for CEO ability and connected boards' superior information. Although being ousted is costly for all CEOs—who must then devote time to finding new employment and only succeed in 62% of cases—socially connected CEOs are more likely to find new and better employment after a forced departure. Evidence from this paper suggests that close social ties between board members and CEOs impact the workings of the board of directors. This paper was accepted by Brad Barber, Teck Ho, and Terrance Odean, special issue editors.
Uploads