This article aims to specify the performance implications of neutral user-generated content (UGC) on product sales by differentiating mixed-neutral UGC, which contains an equal amount of positive and negative claims, from indifferent-neutral UGC, which includes neither positive nor negative claims. The authors propose that positive and negative UGC only provide opportunities for consumers to process product-related information, whereas both mixed- and indifferent-neutral UGC affect consumers’ motivation and ability to process positive and negative UGC. The results of three studies using multiple measures (text and numerical UGC), contexts (automobiles, movies, and tablets), and methods (empirical and behavioral experiment) indicate contrasting premium and discount effects such that mixed-neutral UGC amplifies the effects of positive and negative UGC, whereas indifferent-neutral UGC attenuates them. Empirical evidence further indicates that ignoring mixed- or indifferent-neutral UGC leads to substantial under- or overestimates of the effects of positive and negative UGC. The effects of neutral UGC on product sales thus are not truly neutral, and the direction of the bias depends on both the type of UGC and the distribution of positive and negative UGC.
Purpose
Although coopetition has been studied for decades, most prior studies shed light on interfirm coopetition across firms instead of intrafirm coopetition across functional departments within a firm. To fill the research gaps, this study aims to investigate the differential effects of cross-functional coopetition on both product and service innovations and the moderating roles of environmental turbulence.
Design/methodology/approach
This study surveyed both senior and middle managers from 149 pharmaceutical firms in China.
Findings
This study discovers the opposite relationships of cross-functional coopetition on product and service innovations such that cross-functional coopetition enhances product innovation but hurts service innovation. Furthermore, market turbulence attenuates the positive effect on product innovation but strengthens the negative effect on service innovation. However, technological turbulence attenuates the negative impact of cross-functional coopetition on service innovation.
Originality/value
The effects of cross-functional coopetition have been ignored in the innovation literature. By identifying the double-edged sword of cross-functional coopetition, this study contributes to the literature by providing new insights into the differential effects of cross-functional coopetition on product and service innovations.
The adoption of marketing innovations can contribute to the sustainability of a firm. However, research on the types of marketing innovations and their effects is limited. The purpose of this study is to analyze the dimensions of marketing innovations, their effects on firm performance, and how market environmental factors moderate those effects. Based on an analysis of the literature, this study discovered two types of marketing innovations and established a model to explain the dynamics of marketing innovation and firm performance under different market environments. Empirical data were collected and used to validate the model. Results show that both market-driven and market-driving innovations significantly contribute to a firm’s performance. Moreover, their effects are significantly moderated by competition intensity and technological turbulence but not demand uncertainty. This study contributes to the literature because it elaborates the conceptualization of marketing innovation and presents the dynamics of marketing innovation, market environment, and firm performance. It also provides practical implications on how firms can utilize marketing innovations to achieve business sustainability.
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