Search

Drawing on equity theory, we apply Van Westendorp’s Price Sensitivity Meter (PSM) to compare the “pricing footprints” of a brand originating in countries differing in their country image favorability. This footprint is captured by the different price levels for which consumers perceive the brand to be (a) too cheap (i.e. raise concerns about its quality), (b) cheap (i.e. seem like a bargain), (c) expensive (i.e. not cheap but would still consider buying it), and (d) too expensive (i.e. priced so high as to prevent purchase). Based on two studies conducted in Ukraine and Brazil, and controlling for several consumer dispositions, we find that differences in country image do not always translate into significant differences across all components of the pricing footprint. Moreover, even if such differences are observed, they do not apply to all target countries. Implications for country-of-origin research and practice are considered and suggestions for future research made.

The increasing market globalization and the consequent enlargement of the market boarders continues to provide a multitude of growth opportunities to small and medium enterprises (SMEs). These opportunities include but are not limited to the expansion abroad through internationalization strategies. They refer also to the innovation of business models triggered by the fact that the SMEs operate in global sectors, and they can utilize global innovations and digital technologies to compete. The joint pursuit of digitalization and internationalization has proven to be most powerful in facilitating the SMEs growth processes on a global scale. The advantages that accrue to SMEs from the usage of digital technologies go beyond the mere Internet and rest mainly in the possibility to create a deep relationship with international customers, for example through the usage of social networks. This does not necessarily imply that the firms operate in two or more locations through trade, investments, and alliances, since SMEs can keep their location in the home country, while expanding their market borders by serving international customers, developing the global power of the brand and the international corporate image. At the same time they have to face international competitors in their home country as well. … to be continued

Purpose of the paper: This study examines the impact of digital transformation on business model innovation and internationalization using the context of small and medium-sized firms (SMEs) operating in the Made in Italy. The study attempts to answer the following research questions: 1) How is digital transformation changing the business model of SMEs? 2) How is digital transformation changing the internationalization strategies of SMEs? Methodology: To answer these research questions, we present a multiple case study research on the digital transformation of three Made in Italy SMEs. Results: We found that digital instruments contribute to innovate the business model of all the selected SMEs, creating new distribution channels and new ways to build and deliver value to customers; moreover, the use of social media becomes the driver and the “prerequisite” for internationalisation. Research limitations: The main limitations are related to the limited number of case studies and the difficulty in the replication of results. Practical implications: Focusing on Made in Italy, our study contributes to the existing literature on business model and digital transformation of SMEs. Second, it contributes to the internationalisation literature, identifying new paths for entering new geographical markets. In addition to the theoretical implications, this study provides some managerial implications to accomplish the digital transformation of SMEs operating in Made in Italy. Originality. To the best of our knowledge, the present is the first specific study aimed at investigating this intriguing theme for Made in Italy SMEs.

The advent and development of digital platforms has helped enhance the international visibility of brands, products and services, and has also introduced a proliferation of online reviews. This study develops a big data analysis of customer online reviews of hospitality services to gauge the extent to which the cultural distance among service providers and their customers influences online review ratings. By examining almost 715,000 online reviews written by hotel customers from more than 100 different nationalities, the effect of national cultural differences among service customers and providers (namely cultural distance) on online review ratings is innovatively scrutinized. The paper, by considering reviewers’ behavioral features, demographics, and trip-related factors, reveals that the effect of national cultural distance on online review ratings is negative. Several implications for practitioners are also discussed.

Purpose The purpose of this paper is to focus on consumers’ reactions to cross-border acquisitions (CBA) by exploring the role of consumer perceptions of the psychic distance between the country of the acquirer and that of the target firm when the acquiring corporation has a good or poor reputation. Design/methodology/approach A 2×2 experimental design which manipulated psychic distance and acquirer’s corporate reputation was conducted in Italy. The study considers an Italian food target firm and compares four foreign acquiring firms with different combinations of corporate reputation (good/poor) and psychic distance to Italy (small/large). Findings The authors found that the degree of psychic distance between the countries of the acquiring and targeted firms was inversely related to Italian consumers’ intentions to repurchase the products of the post-acquisition target, and unrelated to the acquirer’s corporate reputation. Originality/value This is the first study focusing on psychic distance in the context of CBA, especially from the perspective of consumer behavior, which can help to better understand certain negative reactions toward the acquisition of a business.

This paper explores the efficiency issue of the oil market in order to test the seasonal behavior of oil price returns, specifically day-of-the-week effect and month-of-the-year effect for the period December 1987 to January 2016. We use a dummy variable regression estimation technique to test seasonal anomalies for the Brent and WTI crude oil returns. Our empirical results find support for the negative Monday effect. The evidence of negative Monday returns is consistent with the relevant empirical literature. Moreover, the returns on Thursday are highest in a week followed by returns on Friday for both oil markets. This study also found evidence on month-of-the-year effect as the negative returns in November and December for Brent and WTI oil markets. Finally, this study is important for energy researchers, market participants, and policy-makers because anomalous oil markets’ behavior implies return predictability and the implementation of profitable investment strategies by market players and may also impact the macroeconomic variables and stock market returns.

Purpose The purpose of this paper is to investigate whether, in the context of a cross-border acquisition, the acquirer’s country image (CI) could moderate the relationship between the acquirer’s corporate reputation (CR) and consumers’ repurchase intentions towards the products of the post-acquisition target. Design/methodology/approach The authors examined the roles played by the acquirer’s CR and the acquirer’s CI on consumer behaviour by considering an Italian target firm with a high reputation and comparing four foreign acquiring firms with different combinations of CR (poor/good) and CI (high/low). Findings It was found that both CR and CI have a significant impact on Italian consumers’ intention to repurchase the products of the post-acquisition target. Furthermore, the results show a greater increase in consumers’ repurchase intentions when a good reputation of the acquirer is paired with a high CI for the acquirer, but a high CI cannot compensate for a poor CR. Originality/value The research investigates, in the context of cross-border acquisitions (CBAs), the impact of the acquirer’s CR and the acquirer’s CI on the host country consumers’ repurchase intentions after the CBA, which has not previously been thoroughly examined. It can help managers to understand the conditions under which CBAs will be favourably evaluated.

This study examines the impact of digital transformation on customer value creation in the context of small and medium-sized firms (SMEs) operating in the Made in Italy sectors, with the aim of understanding how dynamic capabilities, as enabling mechanisms, may foster digital transformation. We use multi-case study research on the digital transformation of six Made in Italy SMEs, belonging to the food, fashion, and furniture design industries. The results show that, for the selected SMEs, digital instruments contribute to innovation of their business model, creating new distribution channels and new ways to create and deliver value to customer segments. The results highlight the relevance of sensing and learning capabilities as triggers of digital transformation. In addition to the theoretical contribution to the existing literature on digital transformation and organizational capability, this study provides some managerial implications for digital transformation in SMEs operating in the Made in Italy sectors.

Digital revolution has turned into a pervasive phenomenon that individuals and firms of any kinds and size cannot afford to overlook (Verhoef et al. 2017). Digital technologies are enabling many changes in firms’ boundaries driving firms’ internationalization and market entry strategies. Despite the increasing interest of firms in expanding abroad throughout online channels, there is a lack of research investigating aspects related to the use of e-commerce websites and/or platforms for firms international growth.

Purpose of the paper : Italy is one of the most attractive European destinations for FDI inflows worldwide. It has witnessed a rapid increase in mergers and acquisitions, to the point of overcoming the EU 15 mean in the years 2008-2013 (with the exception of 2012) (UNCTAD, 2014). The question of whether governments should foster foreign take-overs is crucial, since the Italian economy has been traditionally founded on “national champions”. The purpose of the paper is to present a broader research project that aims at investigating (at firms’ level) the performance differences of all the mid-sized foreign-controlled firms, compared with the non acquired firms in the manufacturing industry. Methodology : the paper analyzes firms acquired in the period between 1999 and 2009 by using data from Mediobanca Research Department. Findings : first results in terms of composition of the acquired mid-sized companies are shown. Practical implications : the paper defines the different perspectives of analysis describing the managerial effects of foreign acquisitions on the acquired firms, the MNE acquirers, and the target country with respect to the industrial development, the employment and the supply chains of the territory. Originality of the paper : the study uses Mediobanca Research Department database for the first time in order to investigate the topic of cross border acquisitions.

‘Green tourism’ is defined as tourism that enhances local cultural elements, which are operating under the control of local communities, providing employment and maintaining economic benefits within the local communities. In fact, many times the above definition is poorly utilized, since there are times when the economic benefits dim from local communities. Tourism industry uses the term as a message to tourists on energy saving, avoiding coastal pollution and so on. Sometimes, the same tourist businesses are accused of using the term or labelling ‘green’ primarily for marketing purposes. Although it is a fact that tourism industry is starting to respond to the changing values of tourists regarding environmental issues, however, the purpose of this research is to infer if there is a future for sustainable tourism development concerning the enterprises that provide sport tourism in Greece.

The term ‘green tourism’ is often used in conjunction with the desire for a balanced approach to tourism planning. ‘Green tourism’ is defined as tourism that enhances the local cultural elements, operating under the control of local communities, providing employment and maintaining the economic benefits within the local communities. In fact, the above definition is often poorly attested, since there are times when the economic benefits escape from local communities. For its part the tourist industry uses the term ‘green tourism’ as a message to tourists on energy saving, avoiding coastal pollution etc. Sometimes the same tourist businesses are accused of using the label ‘green’ primarily for marketing purposes. This paper shows that governments have a crucial role regarding encouragement to use cleaner technologies in the tourism sector and presenting different approaches for sustainability to be achieved in developing countries. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

The present paper aims at analyzing the influence of cultural distance on acquisitions from MNEs of Italian mid-sized firms in terms of the economic performance of target firms. In literature a variety of works has focused on cultural distance as an explicative variable of the results of cross-border acquisitions. Using data from the Mediobanca Research Department Database we analyze Italian midsized firms acquired from MNEs between 1999 and 2009, in order to understand whether or not their performance improved over the post-acquisition period. Using a multidimensional measure of cultural distance, we tested the relationship between cultural distance and target firm’s performance in cross-border acquisitions by means of a regression analysis. Our study is the first to examine the impact of cultural distance on post-acquisition performance using the universe of Italian acquired midsized firms. The findings support our hypothesis that cultural distance has a negative effect on post-acquisition performance.

The purpose of the paper is analysing the performance differences (labour productivity, employment and wages) of all the mid-sized firms acquired in the period between 1999 and 2009, compared with purely domestic firms (non-acquired), with two specific research focuses: 1) differences between industrial and financial investor; 2) geographic distance between acquirer and target firm. This study conducts a t-test analysis by using firm-level accounting data from the Italian Mediobanca Research Department database. Results suggest that the performance of the acquired firms improve. Furthermore, the results show prospective industrial and European acquirers adopt a cherry picking approach and tend to keep pre-acquisition performance levels unchanged, whereas financial and non-European acquirers take the opposite approach with an explicit view to increase post-acquisition performance. This study for the first time analyses the performance implications of cross border acquisitions of all the acquired mid-sized firms, which carry remarkable economic weight within the Italian economy.

The aim of the study is to investigate the effect of cultural distance on the reputation transferability from a made in Italy target firm to a foreign acquirer by analyzing local country consumers. The work compares two foreign acquiring firms a Chinese firm (large cultural distance to Italy) and a Spanish firm (small cultural distance to Italy). The findings show that Italian consumers have more negative attitudes toward the acquired firm and lower intentions to repurchase its products if the acquirer has large cultural distance rather than it has small cultural distance. Furthermore, the study aims at verifying that the case of small cultural distance fosters the reputation transferability more than the opposite case of large cultural distance. The work may be of value and interest because little has been studied dealing with the acquisition process in relation to market-based performance, particularly analyzing the consumer behavior toward a post-acquisition target.

Building on the formula of "Figure of Merit" used in technology studies, this work aims at findings analogism in place marketing by presenting "Figure of Merit for Places"; the identified formula represents the possible decision making algorithm that the cluster of Digital Nomads could use to choose a place to live for a period of life. The framework is useful both to place marketers and managers - identifying value proposition and the cost-of-living and cost for accessibility - and to the place demand - discovering the benefits to choose a place to live for a period. The analogism comes from the opportunity to study the Digital Nomads (DNs) that are emerging as a maximizer cluster. They live for different periods in different territories respecting the places and diffusing traditions, cultures, impressions and e xperiences; these characteristics stimulate the place marketing activities of the territories (demand driven) and contribute, indirectly, to place branding strategies (supply driven).

This research analyzes the marketing potential of "made in Europe", which has been little studied in literature on country of origin to date. In particular, the paper shows under what conditions a brand like "made in Europe", may be a viable alternative to the nation brand. To this end, two experiments were employed through an online questionnaire administered to two samples of Italian and German consumers. The results suggest that in situations of product country mismatch, particularly when a product is not associated to the manufacture tradition of the European country, the consumers prefer goods labeled "made in Europe" rather than nationally labeled ones. A number of managerial implications and suggestions for future researches are discussed.

Studies on country-of-origin effect (COO) largely show that product and country image is relevant in the field of perceptions and of quality evaluations of unfamiliar products. Roth and Romeo (1992) highlight that country image is product-specific and in situation of favorable product country match the emphasis of the perceived origin associations of products, created either through the language associated with the brand name or through advertising, can be very beneficial. This paper analyzes the remarkable case of a virtuous mid-sized company of the “made in Italy” operating in the bathroom furnishings industry, Gessi, in order to highlight how it exploits the congruent country image and the effects on its international marketing strategy. We start from the framework of Roth and Romeo (1992), which is discussed in the literature review and then refined through the empirical research.The findings suggest that while Gessi emphasizes the Italian origin of its products, rather than using the generic slogan “...

In fast growing markets, technology-grafting acquisitions provide rapid and exclusive access to technologies and capabilities of the acquired firm. This paper focuses on the impact of cross border acquisitions on RD RD developments of their research and growth in sales worldwide. Managers may benefit from a mutual exchange of knowledge and competences between acquired firms and MNEs. Policy makers should encourage FDI attraction strategies. This study for the first time analyses the post-acquisition innovation performance of all the Italian acquired mid-sized firms.

As Italian SMEs increasingly expand their markets overseas, the internationalization processes evolve towards more complex market entry modes based on equity forms of international expansion and investment such as JVs and WOSs. Research on international high-control entry mode has tended to concentrate on large firms. In order to test the choice between equity and non-equity entry modes to the specific category of the mid-sized companies, the paper provides two main contributions: 1) it proposes an integration of three perspectives, transaction cost, institutional and resource-based theory; 2) it empirically verifies the applicability to the medium sized firms of the proposed framework.

Altana was founded in 1982 in Treviso (north-east Italy) as a small company within the Benetton group. In 1992, it becomes independent thanks to Marina Salamon, 100% owner of the Alchimia holding, that controls Altana together with the Doxa and Methodos companies (both involved on the frontline of market research).