David K Tse

The University of Hong Kong | HKU · School of Business

Purpose Building on the scant literature on how foreign subsidiaries strategize Cause-Related-Marketing (CRM) to gain legitimacy and acceptance in host markets, this paper investigated the impact of two CRM components (post-crisis recovery, CSR activities) on subsidiary performance and future opportunities in China, a country whose institutional de...

This study investigates behavioral routes deployed by e-commerce influencers in product promotion in China. By analyzing videos posted on Douyin (China’s version of TikTok), it posits that the stature of the influencer and the reception of the content are the drivers of audience likes, shares, and sales. Further, how influencers strategically title...

Cambridge Core - Asian Studies - Dynamic Growth of Chinese Firms in the Global Market - by David K. Tse

As an economic power, China has become increasingly preoccupied with its image around the world. According to BBC-GlobeScan, China enjoys a neutral to positive national image over the past 12 years, driven by the generally positive perception of the country’s economy. Interestingly, there is a strong divide between perception by developed and devel...

This chapter discusses several emerging globalisation models: the Springboard Model; its variant, the Leapfrog Model; the Mixed Model, a hybrid globalisation approach that leverages the combined benefits of administrative and market systems; and the Effectual Model, an appropriate for entrepreneurial firms. The discussion delineates the advantages...

Achieving acceptance of Chinese-made products by developed markets is a major challenge faced by Chinese firms. This chapter examines the perception of China and Chinese-made products in overseas markets and its psychological resistance, paying special attention to the unfavourable made-in-China image. In addition to recognizing the evidence-based...

Purpose To explain and empirically test how different marketing communication channels interact with each other and contribute to brands' diverging marketplace performance. Design/methodology/approach With a unique data set combining key variables of major passenger car brands, the paper takes a source-based perspective to investigate how fir...

Emerging markets – high growth, high potential economies – across the globe from China, India, and Vietnam to Turkey, Brazil and Argentina offer handsome rewards for firms engaging in international marketing. With these great rewards come great risks which are not understood by marketers well. Intemational/Multinational/Cross-Cultural marketing was...

How to better motivate the distributor’s participation in channel collaborations is an ongoing concern for manufacturers. Previous research suggests that distributor participation is influenced by two types of variables: economic incentives and dependence dynamics. This study extends past research by investigating the role of fairness in affecting...

This paper reviews previous attempts to study retail store image. It focuses on the conceptual problems one encounters in this area. Five issues relating to the store image, namely store dimensions, image formation process, image variation in different departments, image variation in multiunit establishments and image differences among different cl...

Purpose – Service organizations and marketers have focussed too much of their energy on their core service's performance and too little emphasis on designing a customer journey that enhances the entire customer experience. There is nothing wrong with firms seeking continuous improvement in service quality and customer satisfaction. These efforts ar...

Purpose – Service organizations and marketers have focused too much of their energy on their core service’s performance and too little emphasis on designing a customer journey that enhances the entire customer experience. There is nothing wrong with firms seeking continuous improvement in service quality and customer satisfaction. These efforts are...

This study investigates (1) how immigrant consumers change their media consumption when they move across cultural boundaries and (2) whether media exposure relates to consumers' acculturation of the new social norms. A total of 938 respondents from four sample groups including Hong Kong residents, long-time and new Hong Kong immigrants to Canada an...

This study examines two central issues underlying effective media decisions in China. We pay particular attention to the issue in reaching China's upscale and status-seeking consumers and the cost/benefits of so doing. In this study, we analyzed syndicated secondary data involving 48,000 respondents in 15 cities in China, and compared the extent to...

Despite the prominence of social ties in emerging economies, it remains unclear whether and how social ties matter in cultivating marketing channels for both local and foreign firms in China. And few studies have explicitly distinguished and examined the roles of business versus political ties. Drawing on the resource-based view and social network...

Online communities offer attractive opportunities and challenges to advertisers. Using a revised source credibility framework, this study proposes that interpersonal trust and platform credibility are core to consumer search and consumption behaviors that allow advertisers to harvest value from online communities. We postulate that (1) quality Web...

Online communities offer attractive opportunities and challenges to advertisers. Using a revised source credibility framework, this study proposes that interpersonal trust and platform credibility are core to consumer search and consumption behaviors that allow advertisers to harvest value from online communities. We postulate that (1) quality Web...

Ensuring joint program participation by distributors is essential to channel management. Although studies confirm that firms can promote distributor participation by attending to their participation motivations, the authors argue that distributors may change their motivations over the course of a joint program, driven by an increase of program-rela...

Effective governance of distributors represents a critical success factor for firms operating in emerging markets such as China. To understand this governance issue, this article adopts a role theory framework to delineate the effect of fit between governance strategies and distributor role orientations on channel outcomes. It also examines the way...

Ensuring joint program participation by distributors is essential to channel management. Although studies confirm that firms can promote distributor participation by attending to their participation motivations, the authors argue that distributors may change their motivations over the course of a joint program, driven by an increase of program-rela...

This study extends the existing satisfaction-trust-loyalty paradigm to investigate how customers' affectionate ties with firms (customer-firm affection)-in particular, the components of intimacy and passion-affect customer loyalty in services. In a bilevel model, the authors consider customer-staff and customer-firm interactions in parallel. Throug...

As multinational enterprises increasingly enter the Chinese market, channel researchers are paying increasing attention to the efficiency of channel governance mechanisms in this nontraditional market. Yet current research neglects different distributor characteristics, such as risk preferences and long- or short-term orientations. In China, an eme...

Guanxi refers to the durable social connections and networks a firm uses to exchange favors for organizational purposes. This study examines how and when guanxi operates as a governance mechanism that influences firm marketing competence and performance in the transitional economy of China. Drawing on social capital theory, the authors propose an i...

Guanxi refers to the durable social connections and networks a firm uses to exchange favors for organizational purposes. This study examines how and when guanxi operates as a governance mechanism that influences firm marketing competence and performance in the transitional economy of China. Drawing on social capital theory, the authors propose an i...

This study extends the existing satisfaction–trust–loyalty paradigm to investigate how customers’ affectionate ties with firms (customer–firm affection), and its components of intimacy and passion in particular, affect customer loyalty in services. Applying Sternberg’s triangular theory of love in a bilevel model, the authors consider customer–staf...

To survive and prosper in today’s highly competitive environment, firms are increasingly engaging in cooperative alliances with their rivals. However, the impact of these competitor alliances on financial performance is largely unknown. This research examines this issue. Using both survey and archival data, the authors conduct two studies that reve...

Consumer satisfaction has been defined as an objective or subjective state variable. This paper presents an emerging view where satisfaction is construed as a subjective process of consumption experience. We examine studies that have explicitly or implicitly explored the conceptual and empirical domain of satisfaction as a multidimensional process...

In this study, the authors examine market share performance of foreign and domestic brands in China. Drawing on the resource-based view and brand management literature, they investigate the impacts of three sets of factors: brands' competitive advantages, external market environments, and the length of brand existence. The authors also examine the...

Organizational change in emerging economies, although difficult, is inevitable. The authors study the drivers and consequences of organizational changes in an emerging economy, China. The results of a firm-level survey show that organizational changes in technical vs administrative areas are differentially driven by firms' motivation to change (pas...

This paper examines the impact of market liberalization on firm performance through institutional changes during the economic reform in China. The conceptualization focuses on the decentralization of control, ownership restructuring, and industrial policy as the primary institutional changes to implement market liberalization in China. These instit...

Does market orientation impede breakthrough innovation? To date, researchers have presented opposing arguments with respect to this important issue. To address this controversy, the authors conceptualize and empirically test a model that links different types of strategic orientations and market forces, through organizational learning, to breakthro...

How can overseas headquarters actively build the trust of their local senior managers? Building on the theory of active trust development, this study examines the roles of three strategies—localization, communication, and control—and their combinations in building the trust of local senior managers in international joint ventures (IJVs). On the bas...

Extending marketing activities and strategies from a firm's domestic market to its foreign markets is often viewed as being synonymous with standardization of activities/strategies. However, they can be distinctly different. Standardization generally is an end result and a process, while extension (also a process and end result) can be viewed as be...

This paper investigates the significance of how firms manage their human resources (HRs) within the confines of powerful social institutions in a transitional economy, the People's Republic of China (China). We propose that two dimensions, the role of human resource management (RHR) and followers' perception of the leader (TOP), are important contr...

This paper examines the effects of institutional forces on change schemas of senior managers, mid-level managers and front-line workers of different types of firms in China. We postulate that several socio-economic forces including regional economic prosperity, firm type (state-owned and foreign-invested), within-firm ranks, and organizational cult...

This paper expands existing international business literature by examining the impact of FDI on domestic firms. It investigates how FDI affects the productivity of domestic firms in China. The results show that FDI may exert a different impact on firms at the regional level than it does on firms at the industrial level. Domestic firms in regions th...

The authors examine how firms adapt different components of ABSTRACT their marketing strategies in foreign markets compared with their domestic market and how such adaptation decisions influence the firms' competitive positions and performance in foreign markets. The authors conceptualize that adaptation of a marketing-mix component is a purposeful...

This paper focuses on institutional change as the central and most consequential contextual aspect of China's transition. Identification of key characteristics of China's emergent institutions leads to propositions on their relevance for international business practice. China's transition also raises issues for theory development, including the way...

In this study, we propose and test a hierarchical model of market entry modes. Entry modes can first be viewed as equity-based versus non-equity-based. Within equity-based modes, the choice is between wholly owned operations and equity joint ventures, while within non-equity-based modes, the choice is between contractual agreements and export. Empi...

Restoring demand for commodity housing is crucial for the success of housing reform in previously centrally planned economies; yet weaning workers away from publicly subsidized housing is a difficult task. Taking advantage of a unique survey, we show that the intention to buy commodity housing by Chinese urban workers is sensitive to various incent...

Market share performance and profitability of overseas business activities has long been an important issue in international business. In this study, we explore the impact of order and mode of market entry into an overseas market. We find that early entrants have significantly higher market shares and profitability than late followers. We also find...

How families resolve their disagreements in consumption decisions has long been a topic of interest in marketing. Past findings have broadened our understanding on how family consumption decisions are made, which in turn provides insights to marketing managers. In particular, studies have identified six types of conflict resolution strategies in fa...

This study examine two dimensions of firms' foreign market entry strategy: mode of entry and formation of alliances. Based on the existing literature, we propose a model that describes how host country-, home country- and industry-specific factors affect foreign firms' decisions on how they enter the market and whether they will enter with a partne...

In this paper, we study the cooperative strategies between two firms in an overseas country. In part 1, we examine the circumstances under which foreign firms would cooperate with another foreign firm in a third country market. Drawing upon existing literature, we develop and test a set of hypotheses using a longitudinal data set from China. The ty...

The authors conduct an experimental study to examine the impact of two types of waiting information - waiting-duration information and queuing information - on consumers' reactions to waits of different lengths. The authors test a model that includes three different constructs - perceived waiting duration, acceptability of the wait, and affective r...

The authors conduct an experimental study to examine the impact of two types of waiting information—waiting-duration information and queuing information—on consumers’ reactions to waits of different lengths. The authors test a model that includes three different constructs—perceived waiting duration, acceptability of the wait, and affective respons...

Financial transition is not Hong Kong's only concern after 1997. This paper examines issues that senior human resource management executives must address as Hong Kong's deadline approaches. Within Hong Kong's particular political context, Farh, Leung and Tse identify the major social and economic trends that directly affect the management of heman...

Financial transition is not Hong Kong's only concern after 1997. 'I his paper examines issues that senior human resource management executives must address as llong Kong's deadline approaches. Within Hong Kong's particular political context, Farh, Leung and 'Ise identify the major social and economic trends that directly affect the management of hu...

By examining Hong Kong immigrants in Canada this study investigates how people change their consumption as they move across cultural boundaries. Anglo-Canadians, new Hong Kong immigrnats (less than seven years), long-time Hong Kong immigrants and Hong Kong residents were surveyed about their product ownership and participation in a set of value-rel...

A study on conflict resolution strategies of Canadian and Chinese (Peoples Republic of China) executives was conducted. Responses to two types of joint project conflicts—task-related and person-related with potential partners from their own culture or from the other culture—were examined. Neither group of executives altered its strategy when negoti...

This article reports two studies on how negative country images can be removed by investigating the effects of decomposing country image into component and assembly origins, as well as the effects of global branding and product experience. Study 1 examines the psychological mechanism consumers use when a country image is decomposed into component a...

This study investigates the salience of country-of-origin effects in an era when firms are globalizing their operations. Country-of-origin (positive or negative) and global brand name (internationally known or new) were manipulated in a 2 by 2 design in which subjects’ evaluations were obtained both before and after they tried a product. In contras...

Previous research in the price-quality area has largely limited its focus to the normal price range and has concentrated on physical goods almost entirely. This study examines the effect of offering a service for free and at an exaggerated price on the perception of its quality. Consistent with the theory developed in this paper, the experimental r...

The success and resilience of Japanese firms have led many scholars and practitioners to theorize and speculate about the impact of what they have termed the 'Japanese management style' upon performance. There have been few studies that have attempted to explore empirically the links between the way Japanese firms organize, manage and decide, and t...

This study surveys 155 executivesfrom the People's Republic of China (PRC), Hong Kong, and Canada to investigate whether norms for organizational design and management are subject to a process of globalization. The survey consisted of structured questionnaires using two different sets of Likert-like importance rating scales. One set of scales exami...

China's adoption of advertising in its pursuit of modernization is traced. How Chinese consumers currently react to advertising, yesterday's villain, is documented. Chinese consumers were very positive about advertising and its consequences but disliked some aspects of current ads from Chinese firms and perceive them to be inferior to those of fore...

Experienced executives frequently try to modify the risky situations they face in order to make them more favorable rather than simply choosing from among available decision options. This article investigates several types of risk adjustments such as trying to influence the situation through bargaining and spending resources, gathering information,...

Results of a longitudinal study of ads from Hong Kong, the People's Republic of China (PRC), and Taiwan depict distinctive consumer cultures. PRC ads emphasize utilitarian appeals, promise a better life, and focus on states of being as a consumption theme. Hong Kong ads stress hedonistic values, promise easier and American lifestyles, and focus on...

The authors investigate whether a manager's home culture significantly influences his or her international marketing decisions. They also examine whether the impact of home culture diminishes in an open economy with intense exposure to international markets, giving way to a process of "globalization." Decision making in four simulated international...

The authors investigate whether a manager's home culture significantly influences his or her international marketing decisions. They also examine whether the impact of home culture diminishes in an open economy with intense exposure to international markets, giving way to a process of “globalization.” Decision making in four simulated international...

The authors extend consumer satisfaction literature by theoretically and empirically (1) examining the effect of perceived performance using a model first proposed by Churchill and Surprenant, (2) investigating how alternative conceptualizations of comparison standards and disconfirmation capture the satisfaction formation process, and (3) explorin...

The authors extend consumer satisfaction literature by theoretically and empirically (1) examining the effect of perceived performance using a model first proposed by Churchill and Surprenant, (2) investigating how alternative conceptualizations of comparison standards and disconfirmation capture the satisfaction formation process, and (3) explorin...