Since the advent of the Web, retailers who served consumers offline (ie in stores or via catalogue) have grappled with how to effectively integrate the Internet into their marketing strategies and tactics. Clearly, how a firm elects to integrate the Internet into its retailing process, and how it coordinates offline and online strategic decisions, can impact its performance. In this paper, we examine integration decisions from a cooperative advertising perspective to determine the profitability of various integration strategies. We find that profit is greater when using a 'partial-integration' strategy rather than a 'separation' strategy; moreover, we find that profit is yet greater when using a 'full-integration' strategy rather than a 'partial-integration' strategy.
This article aimed to examine the impacts of reportingtype corporate responsibility activities (CRA-R) on corporate social and financial performance. Academic research has explored how varying attributes of markets, industry sectors and firms might shape corporate social and financial performance, but includes little effort to examine the impacts of different kinds of CRA on corporate performance. We build on debate about the value of firms' reporting activities related to corporate responsibility. Recent literature suggests that CRA-R is superficial marketing or "greenwashing." Despite this viewpoint, corporate reporting activities related to responsibility are rising. In order to solve this puzzle, this article explores the impact of CRA-R on corporate performance. First, drawing from the institutional perspective, we propose that CRA-R will positively impact corporate social performance (CSP) oriented toward secondary stakeholders.Second, combining the stakeholder-agency perspective and corporate responsibility literature, we motivate the hypotheses that CRA-R positively influences corporate financial performance (CFP). Empirical testing with a unique dataset of large US corporations selected in the Fortune 500 support the proposed hypotheses. In particular, both corporate social responsibility and Global Reporting Initiative (GRI) activities positively influence corporate environmental performance, and financial performance. In particular, GRI reporting is a strong indicator to impact both social and financial performance. Our findings indicate that CRA-R should not simply reflect shallow motivations, but deliver value to noninvestor stakeholders as well as investors.
This paper proposes and tests the impacts of firms' innovation activities, such as patents, on their involvement in environmental sustainability, such as environmental performance. Combining resource allocation and eco-innovation perspectives assuming constant levels of trade-off costs, this study proposes diminishing trade-off costs between corporate innovation and environmental sustainability. Specifically, this research hypothesizes a U-shaped relationship, suggesting that a firm will suffer trade-off costs between innovation and environment-oriented activities up to a certain level, and that once a firm accumulates an adequate level of innovation, it may reduce trade-off costs, caring more for environmental issues. A proposed hypothesis is supported by empirical testing of a sample of 11,657 firm-year observations with 1564 firms, spanning from 1991 to 2010. We also found that corporate patenting activities are relevant to undesirable impacts on environmental performance overall, instead of satisfying outcomes. We suggest that firms and managers should care for environmental sustainability issues once they accumulate an adequate level of innovation assets through patenting activities.
Purpose This paper aims to propose and test a modified interpretation of long-standing issues on the corporate responsibility (CR)–corporate financial performance (CFP) relationship: companies involved in CR are in general no better and no worse in their level of financial performance than companies without such engagement because of the trade-off between benefit and cost at firm level and imbalance between supply and demand at industry (market) level. Design/methodology/approach The authors apply this frame to a data set with more than 12,000 observations over a 14-year period, using confidence intervals, as a useful and statistically valid approach for testing the null hypothesis. Findings The present study’s findings support neutrality between CR and CFP at the firm and industry levels, implying that a firm’s CR involvement neither penalizes nor improves its CFP. Research limitations/implications CR activities may provide windows of opportunity for companies but do not systematically improve financial performance. Practical implications “Doing good” is not a panacea for corporate achievement with respect to market-facing activities. For firms to succeed, instead, they need to create and implement their business cases and models by converting their involvement in CR activities into drivers for better outcomes because investments in CR practices do alone not guarantee improved financial performance. Originality/value The innovations in this study are twofold. Conceptually, this paper proposes a comprehensive approach for a neutral CR–CFP linkage. Empirically, it introduces a novel and appropriate method for testing neutrality. These will mark an important advance in the theoretical and empirical debates over CR and CFP.
This study investigates how collective corruption appears, using a computational method. Specifically, acknowledging that the characteristics of collective corruption process are analogous to percolation phenomena, we illuminate that collective corruption is formed by ongoing social interactions in an organizational boundary. By formulating a percolation-based system dynamics model, we consider the behavioral characteristics of collective corruption in terms of individuals’ corruption preferences governed by personal attributes on corruption. We also propose and examine scenarios regarding the formation of collective corruption.
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