Matthew B. Myers

An Investigation of National Culture's Influence on Relationship and Knowledge Resources in Interorganizational Relationships Between Japan and the United States

The increasing globalization of business has heightened the importance of understanding national cultural influences in interorganizational relationships from both a cross-cultural and an intercultural perspective. The authors use Hofstedes (2001) multidimensional national cultural framework to theorize differences in the relationships between key firm resources. Specifically, they explore relationship resources (i.e., the influence of trust on commitment), knowledge resources (i.e., the influence of information sharing on problem resolution), and their linkage (i.e., the influence of commitment on information sharing) both cross-culturally and interculturally from the perspective of Japanese and U.S. firms. The authors use a sample of Japanese and U.S. firms that report on their primary intra-and intercultural business partners to test the hypotheses. The results indicate that national culture influences relationship resources (i.e., the relationship between trust and commitment) and the linkage of relationship resources to knowledge resources (i.e., the relationship between commitment and information sharing). The authors address implications for both academics and practitioners.

Price-Based Global Market Segmentation for Services

In business-to-business marketing, managers are often tasked with developing effective global pricing strategies for customers characterized by different cultures and different utilities for product attributes. The challenges of formulating international pricing schedules are especially evident in global markets for service offerings, where intensive customer contact, extensive customization requirements, and reliance on extrinsic cues for service quality make pricing particularly problematic. The purpose of this article is to develop and test a model of the antecedents of business customers’ price elasticities of demand for services in an international setting. The article begins with a synthesis of the services, pricing, and global marketing literature streams and then identifies factors that account for differences in business customers’ price elasticities for service offerings across customers in Asia Pacific, Europe, and North America. The findings indicate that price elasticities depend on service quality, service type, and level of service support and that horizontal segments do exist, which provides support for pricing strategies transcending national borders. The article concludes with a discussion of the managerial implications of these results for effective segmentation of global markets for services.

Academic Insights: An Application of Multiple-Group Causal Models in Assessing Cross-Cultural Measurement Equivalence

In cross-national marketing research, the question whether measurement accuracy, reliability, and validity are achieved across samples traditionally has hampered research efforts. Measurement equivalence across samples has particularly perplexed researchers in their efforts to evaluate responses regarding latent variables. Recently, multiple-group structural equations modeling has been suggested as a reliable method for determining measurement equivalence. To date, however, the use of this approach has remained limited. In this study, the authors apply multiple-group structural equations modeling to assess measurement equivalence in three distinct constructs across U.S. and Korean samples on data derived from cross-cultural advertising research. The authors propose an extension of this method using the measurement error covariance matrices, which will enable researchers to evaluate measurement reliability across samples better and to attempt to disentangle cultural differences in instrument usage from measurement-related differences. The authors evaluate the results and discuss the findings, as well as outline the implications and limitations of this method for further research.

The Value of Pricing Control in Export Channels: A Governance Perspective

In this article, the authors expand traditional channel control models to investigate the value of absorbing pricing decisions within an exporters decision-making domain. From a governance perspective, pricing control is considered a structured continuum driven by factors both internal and external to the firm. More specifically, the authors investigate the organizational and environmental influences driving pricing control decisions and the impact of pricing control on both the economic and strategic performance of the firm. Using linear and moderated regression analysis, the authors find that both the strategic perspectives and the organizational characteristics of exporters significantly influence pricing control, yet in ways counterintuitive to traditional thinking. Similarly, the performance implications add new insight to the value of pricing control in dynamic overseas environments. The authors discuss managerial and research implications.

Managing knowledge sharing networks in global supply chains

As firms face the pressure of global competition and increase their participation in a global economy, developing an in-depth understanding of supply chain networking issues becomes increasingly important. This study synthesises the findings in the literature with a multiple-case research design and identifies several potential opportunities, motivations as well as dilemmas that exist in a global strategic network. It proposes a framework to explore several factors that could contribute to the sustainability of a knowledge sharing network in global supply chains. These factors include: management fit, market-related fit, resource fit, shared identity, relational capital, and flexibility.

The managerial issues associated with global account management

The increase in cooperative global arrangements between suppliers and customers has grown precipitously in the last five years. These global account management (GAM) programs are frequently brought about owing to the initiative of the global customers, requiring their suppliers to service their total global needs. Suppliers in turn perceive GAM programs as a means to develop long‐term relationships with key global customers in order to hinder competitive inroads. The managerial issues in implementing GAM strategies/programs and developing GAM teams are the focus of this paper. Based on the bargaining framework of relational contracting theory, a step‐by‐step process for management to follow when implementing a GAM program is proposed.

International Production Sharing Opportunities in Mexico and the Caribbean

Abstract In an effort to take advantage of access to valuable resources and increased market presence, many U.S. manufacturers have pursued production sharing relationships in a variety of overseas locations. These efforts are seen as methods of combating several threats to firm performance: increased domestic production costs, escalating international manufacturing competition, and ever changing barriers to entry regulations. From the perspective of an integrated North American competitive strategy, two geographic areas-Mexico and the Caribbean Basin-have received much attention as potential operating locations. Using a survey of corporate managers responsible for strategic business unit operations, this study investigates and compares the manufacturing and logistics performance of U.S. manufacturers operating in Mexico and the Caribbean. Relationships between logistics performance, manufacturing performance, and firm performance are examined and managerial implications are discussed.

Customer Value Perceptions in Global Business Markets: Exploring the Strategic Potential for Standardization

Using survey data from 800 managers across India, Singapore, Sweden, the United Kingdom, and the United States, this study advances the generalizability and strategic potential for understanding customer value perceptions in business markets. Value drivers reveal strong cross-national similarities which challenge recent studies and indicate potential for standardizing value propositions and crafting horizontal segments.

What Do We Know About Base-of-the-Pyramid Marketing? A Review of the Bop Literature

The recent development in globalization has seen multinational corporations (MNCs) recognizing and exploring the enormous opportunities in new and emerging markets when developed world markets are becoming increasingly saturated. Most global marketing strategies in emerging markets have been targeting mainly at the wealthy elite segment and the middle-income class. In the latest development, an increasing number of MNCs started to launch new initiatives to explore the opportunities in the underserved segment – the base of the economic pyramid (BOP), the largest and fastest growing segment of the world’s population. Our understanding of the BOP markets is going through a seismic shift in the last decade. Increasingly, the BOP consumers are recognized as highly resourceful entrepreneurs who possess valuable knowledge, resources and capabilities. As such, business development and enterprise creation driven by the poor has emerged as a powerful philosophy and tool for addressing poverty and marginality, bringing both social and economic value to the BOP markets. While the opportunities associated with BOP markets are becoming increasingly apparent to researchers and practitioners, there are crucial and unique challenges when MNCs attempt to balance firm’s profitability responsibility and social responsibility in their BOP ventures. The purpose of this paper is to synthesize previous studies and present a review of the accumulative knowledge in this important topic area. Implications to practitioners and researchers are drawn, and further research directions and propositions are suggested.