Faulds, David J., Mangold, W. G., Raju, P. S., & Valsalan S. (in press). The mobile shopping revolution: Redefining the consumer decision process.Business Horizons.
The use of mobile devices by consumers and the accompanying response by retailers is rapidly revolutionizing the retail environment. In the past, retailers have focused primarily on the outcome (to purchase or not to purchase) of the consumer decision process, but now mobile technologies give retailers the opportunity to more actively influence the entire consumer decision-making processes. The increasing use of mobile devices by consumers makes shopping a continuous rather than discrete activity that requires retailers to engage with their customers at critical touch points of the decision process in order to provide a more customer-centric experience. This change in focus from the decision outcome to the decision process signifies an important paradigm shift for the retailing industry. After an extensive review of the literature, we identify four pillars that form the foundation for the mobile shopping revolution and represent the essential ways and means through which retailers can engage with consumers during the decision process. We also discuss the different areas in which the pillars can enable retailers to achieve a sustainable competitive advantage in the mobile shopping era.
Ang, J. B., & Fredriksson, Per G. (in press). Culture, legal heritage and the regulation of labor. Journal of Comparative Economics.
According to cross-cultural psychologists, cross-country differences in individualism vs. collectivism constitute an important dimension of cultural variation. Legal-economic theorists argue that legal philosophies such as common law and civil law have developed differently over centuries and have persistent effects. In this paper, we argue that the effects of culture and institutions should not be analyzed in isolation from each other, as this disregards their interactions. We merge the two separate literatures on cultural attributes and legal origin theories, and derive a hypothesis regarding their joint effects on labor market regulations. We hypothesize that the effect of individualism on the political determination of labor regulations should be particularly pronounced in more market-oriented economic systems (as in British common law countries) compared to more rigid and bureaucratic state-centered systems (as in French civil law countries). Market oriented economies give individual effort and ability greater room to flourish, which in individualistic cultures yields weaker labor regulations. The effect of individualism should be smaller in state centered systems. Using data on the average rigidity of labor regulations during the years 1950–2004 in 86 countries, we find that the negative effect of individualism on the rigidity of labor regulations is enhanced by the presence of a common law legal system. In fact, individualism has no effect on the rigidity of labor market regulations in civil law countries. Analogously, the negative effect of common law legal origin on labor market regulations is found to be conditional on the level of individualism. Individualism and common law legal systems are complements in the determination of labor regulations.
Kwon, Mina, & Adaval, R. (in press). Going against the flow: The effects of dynamic sensorimotor experiences on consumer choice. Journal of Consumer Research.
Sensorimotor experiences of going against the flow can affect the choices consumers make. Eight experiments show that consumers who experience the sensation of going against the flow pick alternatives that are normatively not preferred (experiments 1a and 1b). These effects are evident only when the sensations are dynamic and self-experienced (experiments 2a and 2b), subjective feelings are elicited (experiments 4a and 4b), and no other objective, external norm information is supplied (experiment 5). Experiences of going against the flow typically involve both movement and direction and are represented in memory schematically. Re-experiencing these sensations leads to the activation of this schematic representation and elicits a feeling-based behavioral disposition to do something different, or to go against one’s initial inclination (experiment 3), leading participants to pick an option that is normatively not preferred.
Kroes, J. R., & Manikas, Andrew S. (2018). An exploration of ‘sticky’ inventory management in the manufacturing industry. Production Planning & Control, 2, 131-142.
Traditional models examining relationships between firm resources and revenues assume that the many expenses and asset holdings change in proportion to changes in demand. However, research has found that for many costs and assets assumed to be variable, the magnitude of a change in a cost or asset in proportion to a change in revenue is smaller during periods when revenue decreases compared to the change in the cost or asset when revenue increases. Costs and assets which behave in this manner have been denoted as ‘sticky’ costs or assets. This study examines if inventory in the manufacturing industry is managed in a ‘sticky’ manner and what implications inventory stickiness has on firm performance. Utilising firm panel data over a 25-year time window we find that inventory stickiness does exist amongst manufacturers and that it has negative implications for firm performance.
Manikas, Andrew S., Kroes, J. R., & Gattiker. T. F. (in press). Operational leanness and retail firm performance since 1980. International Journal of Production Economics.
Lean is one of the most pervasive and powerful paradigms in Operations and Supply Chain Management. As a theory, lean has been well tested in manufacturing. Lean in retail has received less attention. There is good reason to think that seminal constructs from lean, such as inventory slack reduction and capacity slack reduction, may explain a great deal of the variance in retail firm performance. Therefore this paper tests lean-based propositions pertaining to the relationships between inventory slack, capacity slack, market instability and firm market performance. Using retail firm data from a 35 year period, we find that lean thinking in its basic unadorned form helps explain retail performance remarkably well. From both a snapshot and quarterly difference perspective and regardless of whether we look at capacity slack or inventory slack, lean produces superior, lasting returns for retailers.
Munnich, Elizabeth L., & Parente, S. T. (2018). Returns to specialization: Evidence from the outpatient surgery market. Journal of Health Economics, 57, 147-167.
Technological changes in medicine have created new opportunities to provide surgical care in lower cost, specialized facilities. This paper examines patient outcomes in ambulatory surgery centers (ASCs), which were developed as a low-cost alternative to outpatient surgery in hospitals. Because we are concerned that selection into ASCs may bias estimates of facility quality, we use predicted changes in federally set Medicare facility payment rates as an instrument for ASC utilization to estimate the effect of location of treatment on patient outcomes. We find that patients treated in an ASC are less likely to be admitted to a hospital or visit an emergency room a short time after outpatient surgery. The findings in this paper indicate that factors other than patient and physician heterogeneity contribute to the observed returns to specialization in the ASC market.
In the News…
Elizabeth Munnich’s research was featured in a New York Times article on men entering the nursing profession: https://www.nytimes.com/interactive/2018/01/04/upshot/male-nurses.html
Posted in: Research Roundup