Journal of Applied Business and Economics

Increasing the Effectiveness of Public Service Announcements Among Gen Z by Using Influencer Advertising

Nguyen T. Pham — 2024-05-16

In this study, we aim to explore the effectiveness of influencer advertising in the realm of public policy. More specifically, we will be examining key factors that can potentially increase psychological reactance among individuals belonging to Generation Z when they are processing anti-binge drinking Public Service Announcements. We then discuss how collaboration between federal agencies and social media influencers can overcome the hurdles posed by psychological reactance. By drawing upon the existing research on persuasive messages, psychological reactance, influencer advertising, and parasocial relationships, our findings will hold significant value for policymakers in disseminating impactful Public Service Announcements that resonate with Generation Z.

Do AI-Based Voice Assistants Influence Brand Continuous Usage? The Mediating Role of AI-Driven Customer Experience

George Cudjoe Agbemabiese — 2024-05-16

This study aimed to assess the influence of artificial intelligence (AI) voice assistant (VA) on customer experience, resulting in the continuous use of mobile brands. Specifically, this article assesses the role of hedonic, utilitarian, and social benefits provided by AIVA on customer experience and continuous usage of a mobile phone brand. Using a primary data collection instrument, the quantitative approach was adopted to examine the study’s variables. Data from 348 valid responses were used for the analysis based on structural equation modeling (SEM) with AMOS version 23. Three main factors were identified to influence customer experience, which results in continuous usage of a mobile phone brand. These factors are social benefits, hedonic benefits, and utilitarian benefits. In conclusion, a significant and positive relationship exists between AI-enabled customer experience and brand continuous usage. It recommended that mobile brands consider and research their prospects’ and customers’ social, hedonic, and utilitarian needs to provide them with desired products and experiences.

Externalities of Sales Information Along the Supply Chain

Yamin Hao — 2024-05-16

Prior studies have shown that earnings information of customer firms is value relevant to the investors of their suppliers, but it remains unclear whether sales information has similar effects. In this study, we investigate the value relevance of customer firms’ sales information to suppliers’ investors using a large sample of monthly sales disclosures from U.S. retailers. We find that within the narrow window of retailers’ monthly sales disclosures, suppliers’ abnormal stock returns are positively related to retailers’ sales growth in both same-store sales and store numbers. This finding suggests that sales information has spillover effects, or externalities, along the supply chain. We further conduct cross-sectional tests and find that the externalities of sales information vary with a supplier’s dependence on the retailer. We also develop a prediction model to separate the expected and unexpected components of retailers’ sales information and find that the unexpected component of sales growth is the primary source of externalities. Overall, this study provides new insights into the value relevance of sales disclosures.

Final Step to Green En Masse Financially

Qian Mao — 2024-05-16

We make seven direct intra-brand comparisons between legacy carmakers’ electric vehicle (EV) and gas-powered vehicle who achieved top ten most-efficient electric vehicles in America. We find six out of the seven EVs will be able to breakeven the higher price relative to their gas counterparts within reasonable gas price range, electricity charge range, and federal government tax credit for buying EVs. We further find that federal government tax credit is the most effective policy tool that will induce new car buyers to choose EVs over comparable same-brand gas vehicle though other green initiatives such as solar panels on owner’s roof tops and below-market-interest-rate (BMIR) loans are effective as well.

Extensions of the Newsvendor Model – Incorporating Real Life Scenarios Using Decision Analytics

Jaideep T. Naidu — 2024-05-16

Decision Analysis is an important topic in the field of Operations Research. This article is a result of discussing the well-known newsvendor model in the classroom over many semesters. We present the newsvendor model in our MBA class but go beyond what textbooks provide. We extend this model by incorporating two specific real-life scenarios. We create the modified payoff table using spreadsheets. We then consider what-if scenarios and perform sensitivity analysis using the Data Table command in Excel. Important concepts like backordering/late shipment, cost of lost customer goodwill, and clearance pricing are discussed. The discussion of these concepts is extremely valuable even without spreadsheets.

Integration of Financial and ESG Performance Indicators to Measure and Evaluate Egyptian Insurance Companies Performance

Haidy Anwer Saeed AbdelNour — 2024-05-16

This study aims to evaluate the performance of Egyptian insurance companies through the integration of financial and non-financial performance indicators through the dimensions of sustainable development as a mediator variable. The study relied on Allianz Egypt property and liability insurance company data from 2012 to 2021, and the Monte Carlo simulation method was used based on the Mathcad program. This study used structural Equations Modeling via AMOS program to extract the direct and indirect effect through path analysis. The results showed that each environmental dimension, social dimension, and governance dimension plays a mediator role in the relationship between solvency, liquidity, credit, activity, underwriting profitability, and both market share and investment profitability. Our research contributes to the literature of achieving sustainable development in the insurance sector, to keep pace with global developments. This paper presents evidence of the relationship between integrating ESG indicators into insurance companies’ performance and achieving an additional competitive advantage.

The Role of Innovation-Driven Leadership in Public-Sector Innovation: The Case in Emerging Economies

Sabah Al-Maazmi — 2024-05-16

Public sector organizations today must confront a steady stream of challenges, push against the status quo, and to be creative in capturing opportunities to effectively serve the public. Emerging economies’ public sector organizations have been slow to adopt change or innovate. Using the UAE as a case study, this study provides valuable insights into the relationship between innovation-driven leadership and innovation in public-sector organizations in emerging economies. Utilizing qualitative data from sixteen government and semi-government organizations’ leaders, the results indicate that innovation-driven leadership is essential in developing a culture of innovation and transformational leadership style is the more effective leadership style.

The Financial Recovery of Region From Economic Disruptions and Resiliency of Real Estate — Construction Sector: A Case Study of Southeast Texas Economy and Real Property Values

Gevorg Sargsyan — 2024-05-16

This study examines the financial recovery of Southeast Texas post-economic disruptions, particularly focusing on the real estate-construction sector's resilience, a key economic driver in the region. It analyzes macroeconomic indicators, emphasizing the sector's role in the region's recovery. The research highlights risk management as crucial for financial resilience in real estate-construction. Three key innovative aspects include: (1) Southeast Texas historically relies on real estate-construction for economic growth, with financial stability linked to major industries. (2) Utilizing the Participatory Analysis of Risk Management (PARM) methodology, focusing on the region's real estate-construction sector. (3) Enhancing PARM results through financial valuation of residential and industrial/commercial properties in Southeast Texas, enabling longitudinal analysis and a deeper understanding of the region's financial stability and resilience. This study underscores the importance of studying the real estate-construction sector for the region's economic well-being post-disruptions.

Generative Artificial Intelligence in Applied Business Contexts: A Systematic Review, Lexical Analysis, and Research Framework

Mark A. McKnight — 2024-06-20

Generative Artificial Intelligence (GenAI) is transforming business practices with potential applications in customer service, code generation, risk analysis, and HR functions. GenAI may simultaneously create or exacerbate ethical, legal, and security concerns in the business context despite its promise. Thus, researchers should be interested in its role and impact, especially in the applied business context. This multi-method systematic review examines GenAI literature in applied business research, revealing dominant themes like ChatGPT and language models but noting a scarcity of business-based studies. Analysis of GenAI research features in applied business studies identifies a limited focus on theoretical frameworks, data collection methods, and data analysis processes. We suggest frameworks for future research to assess GenAI’s impact on system and information quality, user satisfaction, and organizational outcomes based on our findings. This review provides a vital foundation for understanding and advancing GenAI in applied business research contexts.

The Adani Controversy: A Price Efficiency Analysis

Abdul A. Rasheed — 2024-06-20

After the publication of the Hindenburg report on the Adani Group, one of the biggest Indian industrial conglomerates, there has been considerable debate about whether the Adani group engaged in stock price manipulation. Based on Multifractal Detrended Fluctuation Analysis (MF-DFA) of daily and intraday data for share prices of all listed companies in the Adani group for the period between 2010 and 2022, we find that Adani group companies had lower levels of price efficiency than other large, listed companies in India. Although low price efficiency does not necessarily imply price manipulation, it suggests the existence of considerable information asymmetries.

The Sunk Costs of Cybersecurity Testing: Who Bears Responsibility?

Natalie Epp — 2024-06-20

This paper intends to bring further clarity regarding the role of the auditor when there is a consideration of a cybersecurity. It seems there is an expectation gap between what the public expects and what the auditor role is, and that cybersecurity testing requires additional skills and efforts. Are auditors currently compensated for the cybersecurity testing? Do they want the scope of the audit to expand to include cybersecurity assessment? Will this lack of clarity impact the corporate governance model that is based on transparency and monitoring? There is limited data available regarding cybersecurity audits and whether such audits lower the threat of cybersecurity. Our analysis suggests that auditors should not have direct responsibility for testing the cybersecurity of a client, rather direct testing should be accomplished by a third party, primarily an auditor specialist. Also, it is time to expect the auditor to become familiar with general cybersecurity skills and standards.

Asymmetric Impact of Real Effective Exchange Rate Shocks on Economic Growth in Africa: Evidence From Symmetric and Asymmetric Panel ARDL-PMG Model

Emmanuel Anoruo — 2024-06-20

This paper examines the effects of the real effective exchange rate on economic growth in 11 African countries from 1990 to 2022 using linear and nonlinear panel ARDL estimators. The linear panel ARDL-PMG results indicate that broad money supply and general government consumption positively impact economic growth in the short and long term, while the real effective exchange rate has an insignificant effect. The negative and statistically significant error correction term (ECTt-1) suggests a long-term relationship between the variables. Similarly, the nonlinear panel ARDL-PMG results show that broad money supply and general government consumption have positive and significant effects on economic growth in both the short and long term. Negative shocks in the real effective exchange rate hinder economic growth in the short and long term, while positive shocks do not significantly affect economic growth. The paper discusses the policy implications of these findings.

Optimized Location and Assignment of Emergency Response Assets in Offshore Energy Basins

Jeremy T. Navarre — 2024-06-20

The global energy industry engages in exploration, drilling, production, and abandonment activities in pursuit of crude oil and natural gas. This paper provides a methodology to optimize the location and assignment of oil spill response containment systems to limit environmental damage. Utilizing 1,802 active offshore sites and 13 eligible service depots in the Gulf of Mexico’s offshore energy basin, this study locates and assigns deployable land-based containment systems while evaluating the progressive enhancement of including additional service depots. The model solves the practical problem of locating and allocating oil spill containment systems to a global optimum. Adding service depots reduces the average distance, or travel time, of response vessels, which minimizes the dispersion of the oil spill. This study represents a critical component of a broader emergency oil spill response plan. Specifically, it addresses the preparation phase of a comprehensive oil spill response plan, which is preceded by the mitigation phase and followed by the response and recovery phases.

A Critical Investigation of Lagos State Socioeconomic and Economic Challenges: Does Urban Growth Policy Matter in Nigeria?

Gbolahan Solomon Osho — 2024-06-20

Lagos State’s transformation into a critical urban hub highlights its economic promise and challenges, including rising unemployment, police brutality, and poverty amidst rapid growth. This study delves into how population increase, government spending, and financial policies affect the economy, revealing the critical role of education and job creation in tackling unemployment and enhancing living conditions. It underscores the impact of capital expenditure and monetary policies on economic stability, advocating for balanced development and targeted interventions to foster prosperity. The experience of Lagos offers valuable lessons for nationwide policy formulation and informed efforts for sustainable urban development and progress.

The Influence of Leader Legacy Beliefs on Intergenerational Decision-Making

MD Haque — 2024-06-20

This grounded theory study aimed to explore the perceptions or thinking of legacy held by organizational leaders and how legacy thinking shaped their decisions and life experiences. Using the theory of planned behavior, the authors analyzed 52 semi-structured interviews with leaders to build an understanding of their perspectives on legacy. A framework emerged from the data that can help understand the process through which life experiences shaped legacy thinking and the values of legacy thinking held by participants. Our findings offer insights that can help develop leaders focused on the organization’s sustainability past their tenure.

The Effects of Government Protectionism: An Awareness, Motivation, Capability Approach

James M. Bloodgood — 2024-06-20

Firms in developed countries frequently struggle with low-cost foreign competition. This is somewhat perplexing given the historical advantages firms have in developed countries. We examine how these firms respond to market entry by low-cost foreign competitors. Their responses and outcomes vary depending on the government’s degree of intervention. Using the global steel industry as an example, the awareness, motivation, capability (AMC) framework is used to structure firm decision-making. We find that applying the AMC suggests that firm responses depend on government trade interventions, thus recommending firms and their governments integrate their efforts to enhance beneficial outcomes for firms and society.

A New Tool in the Battle against Global Bribery

Kurt Stanberry — 2024-06-20

This is a policy paper that analyzes a significant new development in U.S. regulatory policy designed to enhance the effort to fight global corruption. In a bold attempt to protect and promote fair competition in the global economy, the U.S. has provided government regulators with a powerful new tool. In a reversal of previous policy, the U.S. now allows prosecutors to go after foreign officials who demand bribes, even if the act of bribery occurred outside the United States. The use of this new anti-bribery tool is considered a major political and ethical development in the field of international business.

Expanding Patient Access and Engagement

Justin Binik-Thomas — 2024-06-21

Access to healthcare in the United States is drastically changing. The governmental response to the coronavirus greatly upended our ways of business. Rationing care damaged trust, instilled hesitancy for treatments and prevention, and functionally introduced medical deserts to poor and rural areas. The response by the practitioners was positive - empowering nurses, physician associates, and pharmacists to perform most patient-facing functions. This paper focuses on community care, primarily by nurse practitioners, where practitioners provide primary care and urgent care near or in existing pharmacies and supermarkets, building on relationships and convenience, thus maximizing patient access and mitigating risks.

Why Petty IT Tyrants Are the Real Enemy of Cybersecurity, Productivity, and Innovation

John H. Batchelor — 2024-06-21

Despite purportedly acting in the best interests of the organization, many Information Technology (IT) managers succumb to desires for control and power that result in behavior that is detrimental to employees and, ultimately, the organization as a whole. Drawing from Ashforth’s seminal work on petty tyranny, we highlight the unique dynamics of IT-related tyranny, characterized by micromanagement and arbitrary control over user activities. Employing models that both illustrate petty tyranny emergence and delineate the lifecycle of IT petty tyranny, this work describes how individual predispositions and organizational factors catalyze and perpetuate tyrannical behaviors. In addition, we examine the harmful effects of IT petty tyranny on employee morale, productivity, and even organizational cybersecurity. We conclude with practical advice on how organizations can recognize and mitigate IT petty tyranny to avoid negative outcomes for employees and the organization.

Social Mobility and Societal Impact: Transformative Initiatives at an AACSB Accredited College of Business at a Predominantly Black Institution

Jacob Chacko — 2024-06-21

This article explores the pivotal role of an AACSB-accredited business school at a predominantly Black institution in enhancing social mobility and addressing societal challenges through education and community engagement. It delves into how the institution integrates societal impact into its mission and curriculum, demonstrating a commitment to shaping students who are adept in business and conscious of their societal responsibilities. The article emphasizes a shift towards more socially responsive business education by aligning educational programs with real-world social issues. It highlights various initiatives and centers within the school that drive these efforts, fostering a deep connection between academic pursuits and community needs, ultimately enhancing social mobility and societal impact.