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Research has shown brand equity to moderate the relationship between online customer reviews (OCRs) and sales in both the emerging Blu-ray and mature DVD player categories. Positive (negative) OCRs increase (decrease) the sales of models of weak brands (i.e., brands without significant positive brand equity). In contrast, OCRs have no significant impact on the sales of the models of strong brands, although these models do receive a significant sales boost from their greater brand equity. Higher sales lead to a larger number of positive OCRs, and increased positive OCRs aid a brand's transition from weak to strong. This creates a positive feedback loop between sales and positive OCRs for models of weak brands that not only helps their sales but also increases overall brand equity, benefiting all models of the brand. In contrast to the view that brands matter less in the presence of OCRs, we find that OCRs matter less in the presence of strong brands. Positive OCRs function differently than marketing communications in that their effect is greater for weak brands.

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It is generally assumed that improved outcomes accompany the use of trust as a governance mechanism in an interfirm relationship. Briefly, trust is a social lubricant that reduces the friction costs of existing trade and/or serves to increase the scope of trade. In contrast to this universalistic view, we posit that the performance of trust-based governance is contingent on the ability of trading partners to "read" each other and learn about counterpart behavior. These information-processing abilities allow firms to assess partner trustworthiness better, which reduces the risk of misplaced trust. The increased efficacy of communication and leaming from one another also enables them to better capitalize from the adaptation and revision possibilities uncovered through trust-based governance during the taskexecution phase. Given the central role of these cognitive requirements, we assess these contingent effects with data from a knowledge-intensive task setting. Using a sample of 129 firms that have engaged outside contractors on client-sponsored R&D projects, we find strong support for our thesis. Specifically, we find that trust-based governance has a larger positive impact on task performance when the client is more skilled at understanding the outsourced tasks at hand, the task itself requires skills that are relatively more readily taught (less tacit), and the task itself is organized in parallel with work being done at the contractor as well as the client. As a corollary, we also find that firms adopt trust-based governance to a greater extent as these information-processing abilities increase, as well as with the colocation of the contractor and client. Suggestions for engineering trust-based governance are offered.