Before and after the technology sector crash: the effect of environmental munificence on stock market response to alliances of e-commerce firms

Park, Namgyoo K.; Mezias, John

doi:10.1002/smj.489

Cited by 202 publications

(148 citation statements)

References 107 publications

(187 reference statements)

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“…A better economic milieu and increasing availability of venture capital contribute to lower exit hazards. Since economic growth is tightly related to the level of resources in a particular environment, the results confirm prior findings of the relationship between environmental munificence and firm survival (Park and Mezias 2005). Looking at the equity market level represented by the fixed NASDAQ values at the time of e-tailer entry, the coefficient estimate in Model 2 is positive and highly significant, which supports the relationship proposed by H12.…”

Section: Macro Environmentsupporting

confidence: 84%

“…Perhaps the strongest argument for e-tailing being one of the industries where the theory of a U-shape does not hold is the high environmental munificence marking the formative stages of the industry (Park and Mezias 2005). The period of high munificence confutes the hostile environment characteristic of the early stage of some industries where the U-shaped relationship between population density and exit is observed.…”

Section: Industry Structurementioning

confidence: 99%

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The Dynamic Nature of Survival Determinants in E-Commerce

Nikolaeva

2006

SSRN Journal

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Section: Macro Environmentsupporting

confidence: 84%

Section: Industry Structurementioning

confidence: 99%

The Dynamic Nature of Survival Determinants in E-Commerce

Nikolaeva

2006

SSRN Journal

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“…In general, firms engage in signaling to reduce information asymmetries that exist in transactions with individuals, organizations, or states. But the signals must be both observable and credible in order for firms to derive benefits (Spence, 1974) (Gulati & Higgins, 2003;Park & Mezias, 2005) and management stability (Perkins & Hendry, 2005). Importantly, signaling strategies are not limited solely to firm-specific activities.…”

Section: Standards As Signalsmentioning

confidence: 99%

Why be first if it doesn’t pay? The case of early adopters of C-TPAT supply chain security certification

Melnyk

Ritchie

et al. 2016

IJOPM

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Purpose The purpose of this paper is to focus on adoption of certified management standards, specifically public standards. Such standards play an increasingly important role in today’s business environment. However, to generate adoption benefits, they must be first widely accepted – a situation where they have become viewed as the de facto norms. For this state to occur early adopters play a critical role. Past research has argued that early adopters, in exchange for assuming more risk, are rewarded with higher economic returns. Yet, these findings are based on private, not public standards. With public standards, early adopters do not receive such benefits. There is evidence that public standards are becoming more important. This situation leads to a simple but important question addressed in this study – if early adopters assume the risks of embracing a new public standard without economic benefits, then what is their motivation? To resolve this question, this study draws on agency theory and prospect theory. The authors argue that early adopters embrace such standards because of their desire to minimize risk resulting from failure to support the goal at the heart of the public standards. Design/methodology/approach Data were obtained from the Customs-Trade Partnership Against Terrorism (C-TPAT) Partners Cost Benefit Survey and analyzed through structural equation modeling. Findings Early adopters of public standards are not driven by economic benefits but rather by the need to minimize their exposure to the risks associated with failing to satisfy the goals associated with a public standard. In other words, they were motivated by the need to minimize costs. In the case of C-TPAT, these costs are those of failing to provide or improve network security. Research limitations/implications This study has shed new light on the standards adoption process by clarifying the specific motivations that drive early adoption of a public standard. In addition to identifying the loss aversion motives of early adopters and economic benefit motives of later adopters, the authors have also elaborated on the notion that standards have differing levels of precedence, particularly when comparing private with public standards. Practical implications In a world characterized by increasing demands for outcomes such as improved security and where governmental funding is falling, due to growing deficits and governments that are becoming more conservative, the authors expect the use of public standards to increase. Originality/value Different from prior research on private standard, the paper focuses on the organizations involved in the adoption and diffusion of a public standard, with special attention being devoted to the early adopters. The paper provides a theoretical explanation for the actions of early adopters of a public standard through the theoretical lens of prospect theory.

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“…By and large, mature phase entry is at a lower rate and qualitatively different. In the case of e-commerce, the mature phase coincides with a period of low resource munificence (Park and Mezias 2005).…”

Section: Order Of Entrymentioning

confidence: 99%

The dynamic nature of survival determinants in e-commerce

Nikolaeva

2007

J. of the Acad. Mark. Sci.

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Before and after the technology sector crash: the effect of environmental munificence on stock market response to alliances of e-commerce firms

Cited by 202 publications

References 107 publications

The Dynamic Nature of Survival Determinants in E-Commerce

The Dynamic Nature of Survival Determinants in E-Commerce

Why be first if it doesn’t pay? The case of early adopters of C-TPAT supply chain security certification

The dynamic nature of survival determinants in e-commerce

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