The hypercompetitive aspects of modern business environments have drawn organizational attention toward agility as a strategic capability. Information technologies are expected to be an important competency in the development of organizational agility. This research proposes two distinct roles to understand how information technology competencies shape organizational agility and firm performance. In their enabling role, IT competencies are expected to directly enhance entrepreneurial and adaptive organizational agility. In their facilitating role, IT competencies should enhance firm performance by helping the implementation of requisite entrepreneurial and adaptive actions. Furthermore, we argue that the effects of the dual roles of IT competencies are moderated by multiple contingencies arising from environmental dynamism and other sources. We test our model and hypotheses through a latent class regression analysis on data from a sample of 109 business-to-business electronic marketplaces. The results provide support for the enabling and facilitating roles of IT competencies. Moreover, we find that these dual effects vary according to environmental dynamism. The results suggest that managers should account for (multiple) contingencies (observed and unobserved) while assessing the effects of IT competencies on organizational agility and firm performance.

In this paper, we examine the persuasive influences of online user comments (or word-of-mouth) and of the reviews by movie critics on moviegoers’ evaluation of to-be-released movies. Two distinctive features of this study are: (1) moviegoers are considered to be heterogeneous in their movie going frequency and (2) word-of-mouth and critical reviews are concurrently available, and the views expressed in the two messages are in conflict. Using three experiments with natural stimuli, we find that the persuasive effect of online word-of-mouth is stronger on infrequent than on frequent moviegoers, especially when it is negative (Study 1). The effect of negative word-of-mouth on infrequent moviegoers is enduring even in the presence of positive reviews by movie critics (Study 2). The relative influence of word-of-mouth and critical reviews are asymmetric with infrequent moviegoers more influenced by word-of-mouth, while frequent moviegoers more influenced by the reviews (Study 3). We validate this source–segment alignment through secondary data analysis.

The budgets for research and development (R&D) and marketing should be determined by managers to attain product market advantages. However, in response to investor expectations for short-term stock returns, managers may modify these budgets myopically to avoid unexpected short-term earnings shortfalls, at the cost of long-term profitability. We propose that the past behavior of firm stock returns and volatility may create investor expectations of short-term financial performance, which drives managers to modify either R&D or marketing budgets or both. In the context of high-technology firms, a Bayesian vector autoregression model, supported by content analysis, shows that few firms exhibit high levels of managerial myopia by simultaneously cutting both R&D and marketing budgets; instead, firms display moderate myopic reactions, in the form of unanticipated decreases in R&D budgets but increased budgets for marketing functions. The tendency to manage myopically in response to past stock returns and volatility increases as firm size or industry concentration decrease. This paper was accepted by Pradeep Chintagunta and Preyas Desai, special issue editors. This paper was accepted by Pradeep Chintagunta and Preyas Desai, special issue editors.finance, marketing, research and development

S uccessful initial public offerings (IPOs) provide firms with access to valuable resources, but also put pressure on firms to impress potential investors with evidence of their current well-being and prospects for future growth. To impress investors IPO firms might curtail their marketing budgets, which appears to inflate current earnings and provide evidence of current well-being. However, curtailing marketing budgets unexpectedly during an IPO may be a myopic practice, in that the immediate benefits of these budget cuts are offset by their longer-term adverse consequences on financial well-being. The extent of these adverse consequences in turn may be moderated by external firm factors, including strategic alliances and key customer relationships, and internal firm factors, such as the strategic emphasis on value creation versus value appropriation. A sample of 1,095 IPOs during 2000-2011 reveals evidence of myopic marketing practices in more than 37% of the sample. Investors seem misled during IPOs, but they correct their beliefs in the three years following the IPO and penalize these firms. The penalty for myopic marketing budgeting practices also increases with more strategic alliances and a strategic emphasis on value creation versus value appropriation, but it decreases in the presence (versus absence) of key customer relationships.Data, as supplemental material, are available at http://dx.

Internet-based business-to-business platforms involve a buyer side transacting with a seller side, both of which are customers of an intermediary platform firm. Dyadic viewpoints implicit in conventional theories of customer orientation thus must be modified to apply to a triadic relationship system (seller–platform–buyer) in platform settings. The authors propose that customer orientation of platform firms consists of total customer orientation (customer orientation toward both the buyer and seller sides) and customer orientation asymmetry (customer orientation in favor of the seller relative to the buyer side) and examine the antecedents and consequences of these orientations. Data from 109 business-to-business electronic platforms reveal that buyer- (seller-) side concentration increases total customer orientation and customer orientation asymmetry toward sellers (buyers). These positive effects are weaker when buyers and sellers interact directly (two-sided matching) versus indirectly (one-sided matching) and are stronger when the offering prices vary (dynamic price discovery) versus remain stable (static price discovery) during negotiations. Finally, total customer orientation increases platform performance by itself and in interaction with customer concentration, but orientation asymmetry increases performance only in conjunction with customer concentration.