Drawing on theories of new product adoption and intertemporal choice, the authors show in cross-sectional and longitudinal investigations (Study 1) that when adoption is in the distant future, people are more concerned about performance-and symbolic-benefit uncertainties. In contrast, in the near future, the concerns are more about switching-and affective-cost uncertainties. In Studies 2 and 2a, using theories of mental simulation, the authors show that in the distant-future adoption scenario, communication strategies that promote outcome simulations are more effective in reducing performance uncertainty, bolstering positive feelings, and enhancing behavioral intentions. In contrast, in the nearfuture adoption scenario, communication strategies that promote process simulations are better at reducing switching cost and affective uncertainties, assuaging anxiety, and increasing behavioral intentions. The authors also find positive effects of these communication strategies on actual adoption rates and postconsumption satisfaction (Study 2) and on delayed behavioral intentions (Study 2a). In addition, these communication strategies are more efficacious in increasing behavioral intentions when uncertainty levels are higher (Study 3). The key managerial implications are that communication strategies for new products need to reduce uncertainties about costs and benefits and account for temporal distance to adoption.
Organizational research frequently involves seeking judgmental response data from informants within organizations. This article discusses why using multiple informants improves the quality of response data and thereby the validity of research findings. The authors show that when there are multiple informants who disagree, responses aggregated with confidence- or competence-based weights outperform those with response data-based weights, which in turn provide significant gains in estimation accuracy over simply averaging informant reports. The proposed methods are effective, inexpensive, and easy to use in organizational marketing research.
This paper addresses the question of how distributors' channel function performance affects their relationships with organizational customers and how the impact of these actions on relationship quality is influenced by the interdependence structure of the relationship. We test our hypotheses using survey data collected from informants in the Netherlands and Belgium. Our primary finding is that the level of channel function performance by a distributor is a significant driver of customer perceptions of relationship quality. This relationship is moderated by the interdependence structure of the customerdistributor dyad, both in terms of total interdependence as well as relative customer dependence. D
How do firms' partnering strategies impact the size of their partner-based retail networks? We draw on agency theory to address this question in the context of franchising. Our econometric analyses (based on nine years of longitudinal balanced panel data) include assessment of data nonstationarity and estimation of a dynamic panel data model that accounts for unobserved heterogeneity and endogeneity. Our findings indicate that franchisee network size is driven more by franchisor strategies that mitigate agency costs than by strategies that simply lower entry and ongoing costs and barriers for franchisees.
This paper examines antecedents of ex-ante voluntary information disclosures for standardized contracts in entrepreneurial networks. Entrepreneurs (e.g., franchisors) may make such disclosures to prospective business partners in order to signal profitability of partnering, attract financial and managerial resources and develop their entrepreneurial networks. In practice, only a fraction of franchisors make financial performance representations (FPR), an ex-ante voluntary information disclosure to prospective franchisees. We address gaps in the signaling, voluntary information disclosure, franchising, entrepreneurship and small and medium enterprises (SME) literatures. We draw on signaling theory to develop a theoretical framework and investigate factors that influence a franchisor's disclosure decision. We evaluate hypotheses from our theoretical framework through econometric analyses of multi-sector panel data for the U.S. franchising industry. We estimate a logit model and use lagged independent variables to address our dichotomous independent variable and potential endogeneity respectively. Our results support the view that firms signal their quality through FPRs to attract potential business partners and expand their entrepreneurial networks. Beyond the extant literature, we find that a rigorous partner qualification mechanism is another driver of voluntary information disclosure in franchising. Our findings also provide empirical support for the complementary role played by multiple quality signaling mechanisms used by franchisors and yield public policy implications for franchising.
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