Showing papers by "Xueming Luo published in 2008"

The Moderating Role of Institutional Networking in the Customer Orientation – Trust/Commitment – Performance Causal Chain in China

Abstract: This study uncovers the ignored role of institutional environment for marketing strategy and customer relationship management. Hypothesis tests in a sample of Chinese firms find support that channel networking strengthens the customer orientation - customer trust/commitment - firm performance (CTP) causal chain. In addition, the results show that government networking moderates this chain in a non-linear fashion. The CTP linkages are most salient when the firm develops a moderate level, rather than a high or low level of networking ties with government agencies

The moderating role of institutional networking in the customer orientation–trust/commitment–performance causal chain in China

Abstract: This study uncovers the ignored role of institutional environment for marketing strategy and customer relationship management. Hypothesis tests in a sample of Chinese firms find support that channel networking strengthens the customer orientation–customer trust/commitment–firm performance (CTP) causal chain. In addition, the results show that government networking moderates this chain in a non-linear fashion. The CTP linkages are most salient when the firm develops a moderate level, rather than a high or low level of networking ties with government agencies.

Satisfaction, Complaint, and the Stock Value Gap

Abstract: This article introduces the concept of a stock value gap—the shortfall of a firm's actual market value from its optimal market value, as measured by a best-performing benchmark. Using a large-scale, real-world database, the authors test the effects of both customer satisfaction and customer complaint on the stock value gap of firms. The results show that customer complaint has a stronger effect than customer satisfaction on the value gap. Furthermore, there is some support for the moderating influences of working capital and firm specialization. The results provide actionable guidelines to build a more complete customer equity dashboard and encourage managers to provide a supportive organizational environment to create shareholder value.

When Marketing Strategy First Meets Wall Street: Marketing Spendings and Firms’ Initial Public Offerings

Abstract: This article examines the role of marketing in the context of initial public offerings (IPOs), a neglected issue in the extant literature. The results from a large-scale, cross-industry study indicate that firms’ pre-IPO marketing spendings help reduce IPO underpricing and boost IPO trading in the stock market. The econometric models also suggest that these effects are heterogeneous; that is, they are more salient for firms with higher cost reduction efficiency and in markets with a smaller number of historical IPOs. With regard to theory, this research ushers in a greenfield of IPOs, helping build more powerful theories of market-based assets and customer equity. With regard to practice, it builds the case for not cutting marketing before an IPO. Prudent investors may be better able to pick “star” IPOs if they can track pre-IPO marketing spendings and model firm cost reduction efficiency simultaneously. Overall, this article offers fresh implications for the marketing-finance interface, uncovering brand-new IPO-based reasons that marketing can help create shareholder value.

When Marketing Strategy First Meets Wall Street: Marketing Spendings and Firms' Initial Public Offerings

Abstract: This article examines the role of marketing in the context of initial public offerings (IPOs), a neglected issue in the extant literature. The results from a large-scale, cross-industry study indicate that firms’ pre-IPO marketing spendings help reduce IPO underpricing and boost IPO trading in the stock market. The econometric models also suggest that these effects are heterogeneous; that is, they are more salient for firms with higher cost reduction efficiency and in markets with a smaller number of historical IPOs. With regard to theory, this research ushers in a greenfield of IPOs, helping build more powerful theories of market-based assets and customer equity. With regard to practice, it builds the case for not cutting marketing before an IPO. Prudent investors may be better able to pick “star” IPOs if they can track pre-IPO marketing spendings and model firm cost reduction efficiency simultaneously. Overall, this article offers fresh implications for the marketing‐finance interface, uncovering brand-new IPO-based reasons that marketing can help create shareholder value.

The fog of oecd and non-oecd country efficiency: a data envelopment analysis approach

Abstract: Focusing on three input variables (ie, government efficiency, business efficiency, and infrastructure advancement) and one output variable (ie, economic performance), we employ the Data Envelopment Analysis (DEA) technique in an attempt to make an efficiency comparison between the developed economies (ie, OECD countries) and the less developed economies (ie, non-OECD countries) Among the studied sample nations, Indonesia and Argentina are found to outperform other nations across all efficiency measures Our findings also reveal a significant difference between the OECD and the non-OECD countries in terms of the scale efficiency and overall technical and scale efficiency We recommend further studies to incorporate additional inputs/outputs (eg, risk factor) in the DEA model and find innovative ways and means to facilitate the cross-country benchmark process

The Debate Over Doing Good: Corporate Social Performance and Firm-Idiosyncratic Risk (08-111)

Abstract: By linking corporate social performance, advertising, and R&D to firm-idiosyncratic risk, this study finds that firms gain by "doing good." Higher levels of corporate social performance boost firm legitimacy to stakeholders, thus helping to stabilize firm stock prices.