This study (1) distinguishes between the effects on direct distribution of two distinctive dimensions of asset specificity (human asset specificity and physical asset specificity); (2) explores the sensitivity of these two relationships to variations in industry type (B2B versus B2C); and (3) compares the strength of these two relationships within B2B markets. In addition, we compare the sensitivity of firm decisions regarding human and physical asset specificity to firm variations in product complexity. The empirical analysis is based on data collected from Japanese manufacturers operating in B2B (n = 451) and B2C (n = 238) markets. Our results indicate that the level of physical asset specificity is positively and significantly related with the level of direct distribution in both B2B and B2C markets in Japan. In contrast, the level of human asset specificity is positively and significantly related with the level of direct distribution only in Japanese B2B markets. However, within those markets human asset specificity has a relatively larger effect, relative to physical asset specificity, on direct distribution. Given these findings, in future studies scholars should test for the appropriateness of combining items that measure human and physical asset specificity into an aggregate measure of asset specificity.

The authors examine the role of three social motivations (social bonding, social comparison, and the sharing of social norm information) in generating word-of-mouth (WOM) among consumers in a culture (Japan) where many consumers have an interdependent construal of self. Based on existing discussions of East Asian cultures in general and Japanese culture in particular, the authors hypothesized that these social motivations would be positively associated with the generation of WOM among Japanese consumers. To test these hypotheses, the authors surveyed 618 Japanese mothers who had purchased products designed to protect the health, safety, or well-being of their children. The resulting data were analyzed using structural equation modeling. Findings indicate that, among Japanese consumers, the generation of both positive and negative word-of-mouth is a function of the desire to share social information. In addition, positive WOM is positively related to the desire for social comparison, while negative WOM is positively related to the desire for social bonding. Finally, the desire for social bonding has positive and significant indirect relationships with both positive and negative WOM.

The authors examine the roles of four dimensions of risk (performance, financial, social, and emotional) in decisions to switch from a pioneer product to a follower product in a collectivist culture (Japan). The authors hypothesize that the emotional risk of switching is positively related to the perceived levels of performance, financial, and social risks of switching. These hypotheses are tested with data collected from over 500 iPad owners in Japan using structural equation modeling. Findings indicate that emotional risk has a negative relationship with follower-product purchase intent and positive relationships with the perceived performance and social risks of Android tablets. In addition, perceived social risk has a positive relationship with perceived performance and financial risk. Finally, performance, financial, and social risk have indirect relationships with purchase intent that are partially mediated by emotional risk.

The goal of this article is to identify research opportunities for scholars interested in B2B new ventures. The author focuses on opportunities that arise from a consideration of three important topics in the entrepreneurship literature: business model development, venture legitimacy, and top management teams. It is argued that significant opportunities exist for research that expands our understanding of (1) entrepreneurial paths from initial means to a fully specified business model, (2) the design of a portfolio of legitimation strategies, and (3) the impact of top management team characteristics and processes on venture characteristics, venture performance, and top management team outcomes.

Recent judicial legalizations of resale price maintenance (RPM) allow a manufacturer to establish limits to the prices that its retailers charge: a maximum price (a ceiling) or a minimum price (a floor). A manufacturer can also choose not to apply an RPM constraint. To determine how RPM affects service levels and the distribution of profit between channel members, we derive the optimal RPM strategy for a manufacturer that sells through competing retailers who provide their own optimal level of demand-enhancing customer service. Our analysis yields four key insights into a manufacturer's use of RPM in the absence of free riding. First, there are conditions for which a manufacturer benefits by applying either an RPM Ceiling or an RPM Floor, but there are also conditions that cause the manufacturer not to intervene in its retailers' pricing decisions. Second, a manufacturer's use of RPM depends on how effectively its retailers provide service, and their service-effectiveness disparity. Third, intensity of inter-retailer competition affects the manufacturer's optimal application of RPM. Fourth, RPM Floors often enhance a large retailer's profit relative to the absence of RPM - but this does not hold for a small retailer. Our findings generate significant managerial implications, insights into the consequences of laws that allow manufacturers to limit their retailers' pricing decisions. We also offer suggestions for future research. (C) 2020 New York University. Published by Elsevier Inc. All rights reserved.

Purpose The purpose of this paper is to propose and test a model in which the perceived post-purchase monetary costs and time costs of switching from a pioneer product are a function of the perceived difficulty of comparing follower products with the pioneer product, the variety of ways in which the pioneer product is used by an adopter, pioneer adopter satisfaction with the pioneer, the familiarity of the pioneer adopter with follower products and the anticipated reactions to switching of other household members who use the pioneer product. Design/methodology/approach The authors test this model with data collected from 518 Japanese iPad owners. Hypotheses are evaluated using structural equation modeling. Findings The authors find that each of the hypothesized independent variables is related in the hypothesized direction with one or both types of switching costs. Research limitations/implications - Findings indicate that the variety of pioneer product use, the perceived negative reaction of other household users of the pioneer product and comparison difficulties between the pioneer and follower product have an important influence on the perceptions of the perceived costs of switching from a pioneer to a follower product. Practical implications - Findings suggest that managers responsible for launching follower products can lower the perceived costs of switching from a pioneer product through specific product design and communication decisions. Originality/value In contrast with prior switching-cost research, this paper focuses on switching costs as perceived by pioneer adopters and examining the importance of pioneer-follower product comparison difficulties, the variety of pioneer product use and the negative reactions of other household users of the pioneer product.

Omotenashi is the Japanese term for a conception of service hospitality rooted in the Japanese tea ceremony. This research explores the ways in which contemporary hospitality executives have drawn on the historical tradition of omotenashi in the tea ceremony, as well as older Japanese cultural and spiritual traditions underlying omotenashi, to re-envision encounters between service employees and customers. In high context cultures like Japan, information is widely shared, which reduces the amount of information that must be shared verbally. The nature of Japan‟s high-context culture is manifested in two important principles of the philosophy of the tea ceremony. One important principle is mutual understanding, which arise from the process of “consideration,” which involves “putting oneself in the position of others to anticipate their desires” (Surak, 2012, p. 51). A second important principle involves ritualized social interactions. As Kondo explained (1985), “… the Japanese tea ceremony is a highly ritualized version of the host/guest interaction, and a heightened expression of the emphasis on etiquette in Japanese culture in general.” He continues: “The theory is that mere good intentions are insufficient; one must know the proper form in order to express one‟s feelings of hospitality effectively (Kondo 1985, p. 288). The importance of ritualized behavior also emerges in the kata of Kendo and other Japanese martial arts, where the term kata refers to a sequence of stylized movements that are designed to cultivate “speed of movement, dynamic execution, and realistic character” (Kiyota, 2002, p. 24). Similarly, Zen discussions of secular work emphasize the value of ritualized behavior. According to Musimi (1990, p. 821), “Deeply ingrained in the minds of the Japanese people is the belief that „work‟ makes for moral culture, and man‟s character is formed through the process of working.” Arai (2006, p. 110) observed that domestic work also can be viewed as “ritualized [Zen] activity done in accord with wisdom and compassion.” We argue that current attempts to implement the spirit of omotenashi in employee training have emphasized the spiritual, attitudinal, and behavioral dimensions of omotenashi. The meaning of these dimensions reflect the ways in which executives understand and interpret the high-context nature of Japanese culture and Zen Buddhism on the Tea Ceremony and Japanese martial arts such as Kendo.

The study of congruence is central to organizational research. Congruence refers to the fit, match, similarity, or agreement between two constructs and is typically framed as a predictor of outcomes relevant to individuals and organizations. Previous studies often operationalized congruence as the algebraic, absolute, or squared difference between two component variables. Difference scores suffer from numerous methodological problems, which stimulated the development of alternative procedures. For algebraic and squared difference scores, the primary alternatives involve linear and quadratic regression equations. For absolute difference scores, the extant alternative is piecewise regression, which avoids certain problems with absolute difference scores but relies on untested assumptions that are central to congruence research. In this article, we develop an alternative to absolute difference scores based on spline regression, yielding a comprehensive approach for testing hypotheses that underlie absolute difference scores while avoiding the shortcomings of piecewise regression analysis. We demonstrate the advantages of spline regression over absolute difference scores and piecewise regression using an empirical example.

Amazon is part of the answer: in Japan no one offered a large selection of e-books to feed the devices, write Mark E. Parry and Tomoko Kawakami

The authors examine factors that affect the encroachment speed of disruptive innovations with indirect network externalities. The authors focus on the 2010 introduction of a new generation of e‐readers in Japan and explore the reasons why, relative to comparable e‐readers in the United States, the Japanese e‐readers were introduced later and adoption rates have been lower. Existing research suggests several possible explanations for these cross‐country differences, including the attitudes and behaviors of the firms that compose the paper book value network in Japan, environmental variables such as legal and regulatory constraints, and cultural differences between Japan and the United States. To assess the importance of these explanations, the authors interviewed 20 key figures in the United States and Japan and reviewed a variety of published information sources. Findings indicate that the slower encroachment speed of e‐readers in Japan reflects a kind of myopia among publishing industry insiders arising from three sources: (1) organizational factors, (2) technology factors, and (3) environmental factors. Important elements within these categories include the interpretation of the market performance of earlier generations of e‐readers, the interdependence of partners within the value network for e‐books, the presence of competing technology formats that create uncertainty among consumers regarding the availability of e‐books for a specific platform, and the existence of regulations and institutionalized activities that constrain the supply of e‐books and retail pricing flexibility. Findings have important implications for future studies of encroachment speed, the management of disruptive technologies, and strategic responses to potentially disruptive innovations launched by fringe competitors and new entrants.

The authors consider how a change in product form impacts the adoption decision for an innovative product based on digital technology. Examples of changes in product form often arise in products that feature indirect network externalities, such as MP3 players, PDAs and e‐readers. Existing research suggests that, for innovations with indirect network externalities, the consumer's hardware adoption decision is influenced by the availability of complementary products. However, these studies of complementary products tend to focus on products that exist only as complementary products, such as DVDs, CDs, and video games. This research focuses on the case of an innovative hardware product that uses digital complementary products that compete with standalone versions of the same products. The authors argue that high levels of experience with a standalone product that competes with an innovative hardware/software bundle should increase the consumer's appreciation of (1) the utilitarian benefits of the hardware/software bundle and (2) the hedonic benefits of the standalone product, some of which may not be transferable to the electronic hardware. An analysis of data collected from 549 potential adopters of e‐readers in Japan support these hypotheses. The findings have important implications for the design and marketing of digital innovations that involve a change in product form.

Creativity plays a crucial role in the entrepreneurial process since it aids in the development of novel and feasible opportunities. We develop a series of propositions linking the preference for convergent and divergent thinking, both essential for creativity to occur, to the entrepreneurial process consisting of opportunity identification, evaluation and exploitation. Specific propositions suggest that a preference for convergent thinking is most useful for opportunity recognition, feasibility analysis, decision speed, and speed to market. In contrast, a preference for divergent thinking positively affects opportunity creation and the decision to exploit an opportunity. A balanced use of both types of thinking is better suited for opportunity discovery, business planning and resource gathering.

Purpose– Recent discussions of value-in-use from the perspective of service dominant logic have focused on the customer’s determination of value and control of the value creation process. The purpose of this paper is to extend these discussions by exploring the value creation process in the Japanese tea ceremony and in thekaiseki ryoristyle of Japanese cuisine, which is based on the Japanese tea ceremony.Design/methodology/approach– A historical analysis is used to describe the history of the Japanese tea ceremony in Japan and its influence on Japanese culture. key principles underlying the Japanese tea ceremony and their relationship to Zen Buddhism are summarized and the ways in which these principles are reflected in the service provided by Japanese restaurants are explored.Findings– The two elite restaurants examined in this analysis have designed their service experience to reflect four principles of the tea ceremony: the expression of seasonal feelings, the use of everyday items, ritualized social interactions, and the equality of host and guest. Given these principles, we argue that the tea ceremony and restaurants based on this ceremony imply a co-creation process that is different in three important ways from the process discussed in the co-creation literature. First, the tea ceremony involves dual experiential-value-creation processes. Both the master and the customer experience value-in-use during the delivery ofkaisekicuisine, and the value-in-use each receives is critically dependent on that received by the other. Second, the degree to which value-in-use is created for both parties (the customer and the master) depends on the master’s customization of the service experience based on his knowledge of the customer and that customer’s with the tea ceremony,kaiseki ryoricuisine and Japanese culture.Research limitations/implications– We hypothesize that the dual experiential-value-creation model is potentially relevant whenever the service process contains an element of artistic creation. Potential examples include concerts, recitals, theatre performances and art exhibitions, as well as more mundane situations in which the service provider derives value-in-use from aesthetic appreciations of the service provider’s art.Originality/value– Recent discussions of value co-creation argue that the customer controls the value creation process and the determination of value. The authors argue that the tea ceremony can serve as a metaphor for value co-creation in service contexts where the customer’s value creation process depends on the creation of value-in-use by the service provider.

The authors examine the impact of virtual word‐of‐mouth (vWOM) communication on willingness to pay (WTP) for an innovation. A series of hypotheses are developed that link vWOM to the credibility of innovation information, perceived utilitarian value, and the perceived hedonic value of an innovation, which are in turn hypothesized to influence WTP. The authors test these hypotheses using data collected in Japan from 658 potential adopters of e‐readers and from 565 potential adopters of smartphones. Findings indicate that, in both samples, vWOM is positively correlated with the perceived credibility of innovation information, which in turn is positively correlated with both perceived utilitarian value and perceived hedonic value. WTP is also positively correlated with an innovation's perceived utilitarian and perceived hedonic value. In addition, the path between vWOM and perceived hedonic value is positive and significant in both samples. However, the path between vWOM and perceived utilitarian value is positive and significant in the smartphone sample, but not in the e‐reader sample.The empirical findings provide support for theoretical arguments that link WTP for complex consumer electronic products to consumer perceptions of utilitarian and hedonic value. The results also have important implications for the creation of vWOM strategies designed to reduce the price sensitivity of potential adopters.

This article applies spline regression to the study of congruence in which the similarity, match, or fit between two variables is used to predict an outcome. Like polynomial regression, spline regression avoids problems with difference scores that have plagued congruence research. Spline regression also offers some advantages over polynomial regression that can be appealing in various situations of interest to congruence researchers. We review spline regression methods for two-dimensional functions and extend these methods to three-dimensional surfaces. We empirically demonstrate the use of spline regression for estimating three-dimensional surfaces using data from 189 job seekers who reported actual amounts, desired amounts, and satisfaction with job attributes. We conclude by discussing strengths, limitations, and areas for further development of spline regression in congruence research.