Volume 7 Number 2 (October 2007- March 2008)

  PRICE-ENDING STRATEGIES AND MANAGERIAL PERSPECTIVES: A RECIPROCAL PHENOMENON - PART I
H.G. Parsa , Sandra Naipaul
 


Psychological pricing has been used by marketers for a long time to influence buying behaviour. It is the practice of structuring and presenting prices to appeal to consumers’ emotions and to influence their decision-making processes. The odd-even psychological pricing strategy, a common practice in the marketplace, uses certain odd and even digits as price endings, which have the potential to influence consumers’ perceptions of the price or the product. The current paper presents Part I of the Price-Endings and Consumer Behavior Model (PCBM) in order to provide a theoretical explanation for restaurateurs’ use of the odd-even psychological pricing strategy. Based on a mail survey of fine-dining restaurants and quick-service restaurants the results support the concept that restaurant operators intentionally use the odd-even psychological pricing strategy to signal quality and value.
 

  COMPETITIVENESS THROUGH CO-EVOLUTION BETWEEN INNOVATION AND INSTITUTIONAL SYSTEMS - NEW DIMENSIONS OF COMPETITIVENESS IN A SERVICE-ORIENTED ECONOMY Chaojung Chen , Chihiro Watanabe
 


Contrary to a conspicuous economic accomplishment till the end of the 1980s, Japan experienced the economic stagnation in the 1990s due to its failure to maintain high productivity and increase in the efficiency of technological investment. Given that this contrast can be attributed to a co-evolution and disengagement between innovation and institutions, this paper attempts to elucidate the unique mechanism of technological co-evolution in Japan. First, a comparison of the development trajectory in Japan and the US is conducted by comparing their total factor productivity (TFP), R&D intensity and marginal productivity of technology. The clear decline of these factors in Japan is observed. It implies that the fundamental problem in Japan is the process of shifting from an industrial society to an information society. However, a surge of the co-evolutionary dynamism emerged in the information and communication technology (ICT) industry. With the focus placed on the service oriented mobile phone market in Japan, the success of mobiledriven innovation is analyzed from both supply and demand sides. The increasing learning coefficient of the market and the significant penetration rate of new functionality such as mobile camera and mobile Internet suggest that customers in Japan are rich in curiosity and smart in assimilation. On the other hand, in order to satisfy the demanding customers, service operators and handset vendors intertwine with each other leading to constructing a strong link, thereby developing new product and services by satisfying demanding customers. Thus, handset vendors and service operators themselves construct a co-evolution structure and then coevolve with the demand side. This dual co-evolutionary dynamism leads Japan’s mobile phone industry to keep creating new innovations and provides other industries invaluable suggestion to their competitiveness in a service-oriented economy.
 

  ORGANISATIONAL ADOPTION OF MEDICAL TECHNOLOGY IN HEALTHCARE SECTOR
B. M. Ghodeswar , J. Vaidyanathan
 


Healthcare is undergoing a change both in the aspects of delivery and consumer acceptance of treatment options. Hospitals are reorganising infrastructure to be able to prepare better for meeting this challenge. Technology adoption relates to a hospital’s decision to acquire a technology and make it available to physicians and hospital staff for supporting or enhancing their task performance. This paper contributes to the extension of the existing literature on organisational adoption of innovation and marketing literature on buyer behaviour in medical technology markets. Authors have brought out the critical dimensions of organisational characteristics in buying technology products in healthcare, and suggest the framework in understanding the organisational buyer behaviour in adoption of medical technologies. This paper identifies and describes organisational buying behaviour to be affected by organisational factors, organisational processes, individual characteristics, group factors, technological factors and external environment. The suggested framework can be useful to the marketers of innovative medical technology in evaluating the decision-making process in hospitals.
 

  DETERMINANTS OF AGGREGATE ACCESS DEMAND FOR TELECOM SERVICES IN INDIA: EVIDENCE FROM A REGIONAL STUDY M.R. Narayana
 


This paper argues that institutions in social and economic sectors are major creates of demand for telecommunication (or telecom) services. Using the panel data models, determinants of aggregate access demand (measured by teledensity) for telecom services are estimated by types and number of institutions in social and economic sectors and by employing district level data from Karnataka State (India). This approach is unconventional with no familiar income and price determinants. The estimation results offer evidence for positive and significant impact of number of industrial, educational, and financial institutions on aggregate access demand for telecom services. These results have implications for formulation of national and sub-national policies for promotion of access demand by both public and private providers of telecom services in India.
 

  SME ENTREPRENEURSHIP, FIRM PERFORMANCE, AND CORPORATE GOVERNANCE PRACTICES IN INDIAN SERVICE FIRMS J.Raja ,A. Suresh Kumar
 


This paper shows an important relationship between Indian private service firms’ corporate governance practices and firm performance for sample firms from Bombay Stock Exchange (BSE) Small CAP Index. The underlying assumption, is unlike affiliate and foreign service firms, Indian Private service firms’ corporate governance implementation is unaffected by any other external forces. So, the final sample consists only of Indian private service firms and these firms have been classified as SME based on market capitalization. The research hypothesis has been constructed to prove that corporate governance practices in Indian service firms have positive influence on firm performance. In this regard, the factor analysis is used to reduce the corporate governance data into meaningful factors. Subsequently, factor analysis results are submitted for OLS regression analysis. It is evident from the analysis that corporate governance data are grouped under four different factors: ownership component, board component, committee component, and board procedure component. OLS regression analysis proved that committee component has statistically significant relationship with firm performance. It is concluded that corporate governance practices in the Indian service firms have positively influenced the firm performance.
 

  HUMAN RESOURCE MANAGEMENT ISSUES AS GROWTH BARRIERS IN PROFESSIONAL SERVICE FIRM SMEs
Mohammed Shahedul Quader
 


This paper analyses how SMEs and more specifically Professional Service Firm (PSF) SMEs, face the growth barriers that arise when the managerial roles in the firm need to change. Human resource issues will be important in every organisational setting. These issues will, however, be of paramount importance for service firms as the human contingent within the firm is effectively its only real ‘asset’, and constitutes 100% of the product portfolio. Growth within PSFs requiring the mass production of specialist service, will change the nature and shape of the organisation and increase the requirement for ‘managerial’ processes to exist within the so-called middle line. The very existence of management, in a professional context, can be the source of organisational tension as professionals tend to regard themselves as self-regulating individuals government by the standards and codes of practice established by their own professional body. The natural resistance to external managerial influences, and a desire to progress, both professionally and financially, will mean the firm has to ‘strike’ a delicate balance between the desires of its professionals for advancement, and its own organisational objectives which will, inevitably, require the creation of congruent environments. The purpose of the paper is to look at the growth issues typically facing entrepreneurial start-up and small firms. The intention is to focus on the issues of a Human Resources and to consider how these act as growth barriers. More specifically, this will be considered for PSFs as they rely solely on ‘human capital’ as their primary source of production, and because the complex nature or professional working environments give rise to particular management challenges. To clarify, the study focussed on firms located in the UK and the US.
 

  THE EFFECTS OF TECHNOLOGICAL TRAJECTORY IN PRODUCT CENTRIC FIRMS UPON THE TRANSITION TO SMART SERVICE PROVISION – THE CASE OF SMART SOLAR PHOTOVOLTAIC (PV) Kwok L. Shum , Chihiro Watanabe
 


In light of an emerging paradigm of service provision leading the manufactured products getting smarter and smarter, this paper takes the smart service paradigm as a departure point and explores factors that may influence the transition to smart service provision for product centric industrial manufacturers. The key contention is that smart service involves increasing activities of inter-firms coordination. However, some smart service strategies are relatively standalone product centric while other are more concerned about opportunities that cannot be tapped by a single standalone product or vendor. Manufacturers’ existing firm governance structures, which influence its coordination capability, may therefore influence the choice of smart service strategies. The case of solar photovoltaic (PV) is taken to demonstrate the hypothetical view. Industry structures of the PV industry are compared for Japan and the US in the context of respective institutionalized profession based productive organization. Japan’s vertical integrated structure which is due to a closed mass PV deployment model may facilitate the firms to take a product innovation approach to meet the hardware requirement for smart services. On the other hand, US’s fragmented industry structure, mediated by industry standards in an open PV deployment model, may facilitate the industry to take a decentralized and software-based approach to meet emerging service variety requirements•@for smart services. Innovation during the digital-based smart service era is therefore both enabled and constrained by the previous technological trajectories associated in different deployment models.

 

  KNOWLEDGE MANAGEMENT FOR INDIAN BUSINESS SCHOOLS
Rajesh K. Pillania
 


India is increasingly being hyped as an emerging economy. There are various predictions which show India will be one of the leading economies in the global knowledge. The knowledge economy, which is increasingly dominated by services sector, needs and depends on knowledge workers. Institutions of higher learning, like business schools (B-Schools), have a critical role in creation of knowledge and supply of knowledge workers. B-Schools are going to face a lot of challenges and opportunities in the global knowledge economy. The big issue is how to compete in this changed scenario and take advantage of emerging opportunities. To take advantage of these opportunities and fight the competition Knowledge Management (KM) could be the best tool for B-Schools. Knowledge management is globally accepted tool for creating sustainable competitive advantage. This paper tries to emphasis how KM in B-Schools can be an effective tool for competing in the emerging global scenario.

   
   
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