Purpose – This article aims to investigate the nature and characteristics of business model elements required for successful service innovation. The authors examine which unique resources and capabilities product-centric firms should develop and deploy to pursue service innovation. Design/methodology/approach – Data collected from several research projects support iterations across empirical data and theory, in an abductive process. Empirical data come from product-centric firms; interviews and focus groups were the main data collection methods. Findings – Specific resources and capabilities are needed for the proposed business model elements, as defined by the overarching strategy and structure. Firms can approach the process of service innovation from different starting points and sequences, depending on the context. Research limitations/implications – Because it takes a synthesizing approach, this research lacks some detail. By taking a business model approach with a holistic perspective, it forgoes detailed descriptions to provide greater breadth. Practical implications – Managers can use business models as tools to visualize changes, which should increase internal transparency, understanding, and awareness of service opportunities and necessary changes. Dependencies exist among elements; a change in one element likely affects the others. This study provides insights into which efforts are necessary and offers managers a guiding framework. Originality/value – By providing a multidimensional perspective on service innovation, this study merges various previous research into a synthesized discussion. Combining a resources and capabilities perspective with a business model framework also leads to new insights regarding service innovation and associated activities.
Purpose - This paper aims to look at what CRM 2.0 is and how it impacts customer insights. It will show how CRM 2.0's incorporation of social tools and strategies with traditional operational functions meets the demands of twenty-first century "social" customers.Design methodology approach - The paper presents a combination of independent research by the author for the last decade and third-party sources. This means direct client consulting, interviews with senior corporate management and copious access to expert sources and documents.Findings - The new breed of customer requires corporate transparency, authenticity and interaction. To affect this intelligent, aggressive social consumer, richer insight than that of the past is necessary. CRM and social tools use combined provides the capability for this insight.Research limitations implications - CRM 2.0 as a fully integrated strategy and system remains immature, though the integration of CRM traditional technologies with social networks is ongoing and increasingly coexistent. CRM 2.0 thus must be seen as strategically maturing but technologically immature.Practical implications - Any company that understands that their customers are demanding something more and different will adopt CRM 2.0 strategies to gain greater insight into their customers and to support creation of mutual value.Originality value - By systematically providing an understanding of how contemporary customers act and what they demand and how CRM 2.0 satisfies that, this adds to contemporary scholarship and modern business practice.
Purpose - The purpose of this paper is to propose and elaborate on a service-dominant-logic-based conceptualization of relationship that transcends traditional conceptualizations.Design methodology approach - The paper consists of a review of traditional conceptualizations of relationship, a review of service-dominant logic foundational premises that are useful in reframing the concept, and supporting views from the institutional economics and business ecosystems literature.Findings - A transcending, service-dominant-logic-based conceptualization of relationship as a general term representing the network-with-and-within-network nature of value creation, with transactions as "temporal isolates" of relationships is suggested.Originality value - This higher-order conceptualization of relationship provides a foundation for better understanding the role of relationship in value creation, as well as its correspondence to transactions and products.
Purpose – The purpose of this study is to clarify business-to-business (B2B) customers’ behavior regarding their social media use for B2B purposes and the antecedents of this behavior in the industrial marketing setting. It explores the influence of corporate culture, colleagues’ support and personal and psychological factors on customer behavior toward social media business use. Design/methodology/approach – The authors conducted an online questionnaire survey among key customer accounts of an information technology service company (N = 82). Partial least squares (PLS) path modeling was utilized to analyze the relationship between the dependent variable (social media business use) and the independent variables. Findings – Results show that private social media usage has the most significant relationship with the social media business use. Colleagues at work are also supporting B2B social media use and personal characteristics are also of importance. Surprisingly, perception of usability of social media for B2B use did not explain social media business use within our sample. Research limitations/implications – The chosen methodology, sampling frame and sample size may limit generalizability. Therefore, researchers are encouraged to test the proposed hypothesis in other settings, particularly as the diffusion of B2B social media increases. Practical implications – The paper provides insights into how marketing managers can make an impact with their social media marketing. For example, when planning social media activities, companies need to consider which social media services could serve their marketing and communication targets and would reach the customers. Originality/value – Studies related to social media in B2B, especially from a customer’s perspective, are still limited, and the authors do not know how customer firms value industrial marketing activities in social media. This novel paper provides insights into managers’ reasons for using social media and gives guidelines for B2B marketers on how to conduct social media marketing in the future.
Purpose Starting from the foundations of value innovation, this paper aims to give an idea of the key drivers and barriers – internal and external to the company – and to provide insight into proven capabilities underscoring the ability to create a flow of new value initiatives. These thoughts are then confronted with the present challenges of Industry 4.0 and the Industrial Internet of Things (IIoT). The confrontation leads to the identification of five capabilities for future-proof value innovation. Design/methodology/approach Literature review based upon the work of the author with more than two decades of experience within value innovation research is included. The review is supplemented with recent literature and an overview of the challenges of Industry 4.0/IIoT, which leads into a confrontation of the present status of value innovation with future requirements. Findings Value innovation remains important specifically for established companies facing path-breaking digital disruption of their existing business models provoked by Industry 4.0 and IIoT. Five key capabilities are suggested to rejuvenate value innovation and prepare it for the Industry 4.0 challenge: capabilities for designing, adapting and marketing product service systems; capabilities for blending digital strategy and processes with value offerings; capabilities for designing and mobilizing ecosystems and integrating these into a value-based IIoT platform; capabilities for combining and integrating technological and value innovation approaches; and capabilities for linking value creation to value capturing. Research limitations/implications This paper is more of a “viewpoint” than an empirically based paper presenting new research findings. It is based on expert judgment and confrontation with extant literature. The outlook indicating five key capabilities needs further empirical corroboration. Practical implications The overview of barriers and the “toolkit” for value innovation (Figure 1) and the five capabilities for future value innovation are expected to be managerially relevant. Originality/value The paper highlights the concept of value innovation, as discussed over the past decades, and links it to recent challenges and opportunities imposed by Industry 4.0 and the IIoT. The concept of value or strategic innovation is still valid but needs a re-conceptualization in view of these developments. The paper provides five capabilities business marketers should develop to perform value innovation in an Industry 4.0 environment.
Purpose This paper aims to investigate the moderating role of co-creation in the implementation of servitization strategies in the pharmaceutical industry in a business-to-business (B-to-B) context. More specifically, this investigation explores the impact of different levels of services (base, intermediate and advanced) on servitization and on performance by using co-creation as a moderating factor. Design/methodology/approach A research framework was developed and empirically tested in the pharmaceutical sector. Data collection was conducted through the online distribution of questionnaires. The final sample included 219 pharmacy stores, and the data were analysed using structural equation modelling. Findings Main findings suggest that when the level of co-creation of the design of services is high, there are significant effects of servitization on firm performance. The moderating effect of co-creation is illustrated in regard to intermediate and advanced services, but results referring to the impact of intermediate services on servitization appear non-significant with a low degree of co-creation. No significant effects could be found for the impact of base services on performance and servitization for both high and low degrees of co-creation. Findings show an impact of advanced services on performance through the mediating effect of servitization when the degree of co-creation is high. Originality/value Most research concerning servitization has been done from the perspective of manufacturers and service providers. This study adds value to the literature because it was designed from a customer’s perspective. Moreover, it contributes towards the conceptualization of the servitization research strategy and business models in a B2B context. This is accomplished through the investigation of the moderating effect of co-creation on the impact of the different levels of services on servitization and on performance.
Purpose With the rise of digital media and content marketing, business-to-business (B2B) technology firms increasingly use narratives in their marketing strategy. If research has studied the impact of narrative on audiences, the structuration of the narrative strategies is still an overlooked area. The purpose of this paper is to understand the structuration of narrative strategies. Design/methodology/approach Authors studied the cases of narratives on the Internet of Things produced by two leading technology firms, IBM and Cisco, between 2012 and 2016. Material includes advertising campaigns, blogs, written customer cases, white papers, public speeches and selling discourses. Findings The research highlights the importance of metanarratives as the core of the structuration of seemingly different contents. It also shows how firms tap into fundamental mythic archetypes and broader sociocultural narratives to try and legitimate the emerging technology. Finally, research also introduces the concept of transmedia strategy and illustrates its use by the two firms studied. Research limitations/implications The results are based on only two cases of multinational firms, limiting the generalization of the findings. Practical implications The results of the research may encourage firms to use more narrative branding strategies. They also offer directions for the key elements to manage when elaborating a narrative strategy (defining key metanarratives, identifying and using broader sociocultural narratives, designing a transmedia strategy). Originality/value The paper is among the first to try to understand the structuration of narrative branding strategies. While exploratory, it contributes to research on B2B branding and digital branding by bringing the narrative into B2B branding research.
Purpose In the digital era, business-to-business (B2B) salespersons are encouraged to communicate with buyers on social media platforms and shape customer loyalty. However, the effect of social media usage and its mechanism remain unexplored. The purpose of this paper is to investigate how salespersons’ social media usage influences B2B buyers’ trust beliefs and purchase risk, and therefore, customer loyalty. Design/methodology/approach The authors conduct an online-survey, use partial least squares structural equation modeling to analyze the data, and adopt SPSS PROCESS macro 2.13 to test mediation effects. Findings Salespersons’ social media usage can enhance buyers’ trust beliefs on salespersons’ ability, integrity and benevolence, but only the latter two can improve customer loyalty. Social media usage does not directly affect purchase risk, and only benevolence can reduce purchase risk. Serial mediation models reveal that the effect of social media usage on customer loyalty is mediated by buyers’ trust beliefs on salespersons’ integrity/benevolence and purchase risk. Originality/value First, the authors confirm the effect of social media usage on customer loyalty in B2B context and refute the fallacy of social media uselessness in B2B practices. Second, the research shows that buyers’ trusting beliefs on salesperson’s ability and integrity do not significantly influence perceived risk. The finding is different from the stereotypical judgment in B2C scenarios. Third, the authors distinguish differently weighted influences of buyers’ trusting beliefs on salesperson’s ability, integrity and benevolence, and highlight the role of salespersons’ altruism attributes in shaping customer loyalty.
Purpose The purpose of this paper is to explain the technological phenomenon artificial intelligence (AI) and how it can contribute to knowledge-based marketing in B2B. Specifically, this paper describes the foundational building blocks of any artificial intelligence system and their interrelationships. This paper also discusses the implications of the different building blocks with respect to market knowledge in B2B marketing and outlines avenues for future research. Design/methodology/approach The paper is conceptual and proposes a framework to explicate the phenomenon AI and its building blocks. It further provides a structured discussion of how AI can contribute to different types of market knowledge critical for B2B marketing: customer knowledge, user knowledge and external market knowledge. Findings The paper explains AI from an input–processes–output lens and explicates the six foundational building blocks of any AI system. It also discussed how the combination of the building blocks transforms data into information and knowledge. Practical implications Aimed at general marketing executives, rather than AI specialists, this paper explains the phenomenon artificial intelligence, how it works and its relevance for the knowledge-based marketing in B2B firms. The paper highlights illustrative use cases to show how AI can impact B2B marketing functions. Originality/value The study conceptualizes the technological phenomenon artificial intelligence from a knowledge management perspective and contributes to the literature on knowledge management in the era of big data. It addresses calls for more scholarly research on AI and B2B marketing.
Purpose The purpose of this paper is to examine the moderating factors that could affect the relationship between coopetition (the interplay between cooperation and competition) and company performance. Design/methodology/approach Under the relational view and resource-based theory, key articles surrounding coopetition were reviewed. A conceptual framework (with six research propositions) was developed to understand the nature of the relationship between coopetition and company performance. Findings While the coopetition – company performance relationship has been well-studied, this link could be moderated by the competitive business environment, organizational resources and capabilities, and trust between rivals. Further, most authors have explored the linear relationship between coopetition and company performance; however, in this paper, the non-linear (inverted U-shaped) link is also conceptualized, whereby firms might experience “too little” and “too much” coopetition in their business strategies. Practical implications Management teams should engage in an “optimal-level” of coopetition by sharing resources and capabilities with rival firms, but not to the extent where they depend on such competitors. If firms rarely collaborate with their competitors, they risk not being able to achieve their performance objectives. Likewise, if businesses engage in excessive degrees of coopetition, there could be tensions between the rival companies involved. Also, practitioners should be aware of the factors that can improve or reduce their performance when they implement coopetition activities. By taking: the competitive business environment, organizational resources and capabilities, and trust between rivals into consideration, the themes of this paper should be used to help managers to maximize company performance (considered in multiple capacities). Originality/value This paper is used to help scholars and practitioners to understand the factors that could help or hinder the performance outcomes of coopetition activities. By appreciating the moderating roles of the competitive business environment, organizational resources and capabilities, and trust between rivals, managers are anticipated to provide themselves with scope to alter their coopetition activities to improve their performance. This article ends with a series of managerial implications, alongside some limitations and avenues for future research.
Purpose The purpose of this paper is to examine the following research question in partner selection decisions in business-to-business strategic partnerships/collaborations literature: How do inertia and uncertainty affect partner selection? Explicitly, the paper analyzes how inertia of previous alliance selection routines and uncertainty of entire market movement shape firms’ preferences regarding exploratory partner selection (i.e. selecting new partners who never collaborate with the focal firm). Design/methodology/approach Grounded on inter-firm partnerships, partner selection and network theory literature, the study empirically tests a fine-grained sample of 511 open-end funds initiated by 61 fund management firms in China. To do so, it runs Tobit regression for main analysis and applies a variety of sensitivity analyses to check the robustness. Findings Results show that inertia in previous partner selection has a negative effect on exploration. Importantly, these inertial forces impact domestic firms but not international firms. Market uncertainty also affects exploratory partner selection: short-term market uncertainty encourages exploration, whereas long-term uncertainty inhibits it. These effects also depend on firms’ type: long-term market uncertainty has a negative effect on exploration for international firms but not for domestic firms. Both types of firms exhibit a stronger tendency toward exploration when they encounter short-term uncertainty. However, this inclination is stronger in international firms. Originality/value Earlier research has examined how inertia affects exploitation but largely overlooked its effect on exploration. A critical examination of firm and environment level factors provides a deeper understanding of why and when firms have inconsistent preferences for specific partner selection strategies. Thus, this study offers a unique perspective for understanding firms’ exploratory partner selection by focusing on two important characteristics of focal firms: one internal (inertia) and one external (market uncertainty) in nature.
Purpose The purpose of this paper is to examine the relationships between environment turbulence, knowledge transfer and innovation performance for emerging market multinationals (EMNEs) in an asymmetric international R&D alliance. Design/methodology/approach Data were collected through a survey of high-tech firms in Zhejiang Province of China from 2013 to 2015. Findings Innovation performance of EMNEs is positively influenced by knowledge transfer activities (knowledge replication and knowledge adaption), technological and market turbulence, while negatively influenced by institutional turbulence. In addition, different aspects of environmental turbulence moderate the relationship between knowledge transfer practices and innovation performance of EMNEs differently. Research limitations/implications Future studies could use a longitudinal design to capture the dynamism driving innovation performance of EMNEs through R&D alliances. Practical implications Practical guidelines are provided particularly for EMNE managers on how to develop an innovation strategy by leveraging external knowledge, adaptive innovation and environmental turbulence. Originality/value This study deepens the knowledge of how EMNEs enhance their innovation by building the linkage between environmental turbulence and absorptive capacity through knowledge transfer activities in an asymmetric international R&D alliance.
Purpose Marketing literature, while acknowledging the relevance of organizational learning for a better market understanding, has shown remarkably little effort to develop a framework for organizational wisdom (OW). A learning organization becomes wiser through time. Knowledge acquisition and exploitation are the foundation for differentiation between firms and sustain value creation. Therefore, this paper aims to integrate OW with previously validated marketing concepts in a broader nomological network. Design/methodology/approach The authors review extant literature associated to OW and offer a theoretical model to clarify the conceptual domain of this construct. Findings This study develops the theory of OW, arguing that when a firm clusters a specific set of knowledge dynamically through time, the organization reaches a level of exceptional understanding about the market and improves the judgment and communication of decision-making. Moreover, this study partializes the effect of the market orientation construct through its components for better outcomes in the value innovation process. Originality/value Based on the theoretical support, therefore, the authors provide a framework identifying the properties of OW, as well as the antecedents (a set of organizational knowledge) and consequences of OW (innovation and marketing capabilities development), specifying the moderation role of the marketing function influence.
The objective of the article is to discuss a framework of central processes in relationship marketing. The framework includes an interaction process as the core, a planned communication process as the marketing communications support through distinct communications media, and a customer value process as the outcome of relationship marketing. If the interaction and planned communication processes are successfully integrated and geared towards customers' value processes, a relationship dialogue may merge.
Purpose - The purpose of this paper is to explore the determinants of users' adoption momentum of e-banking in Malaysia.Design methodology approach - A questionnaire with four-point Likert scale is applied to 324 usable responses. Ten attributes are tested, namely convenience of usage, accessibility, features availability, bank management and image, security, privacy, design, content, speed, and fees and charges.Findings - Results indicate that all elements for ten identified factors are significant with respect to the users' adoption of e-banking services. Privacy and security are the major sources of dissatisfaction, which have momentously impacted users' satisfaction. Meanwhile, accessibility, convenience, design and content are sources of satisfaction. Besides, the speed, product features availability, and reasonable service fees and charges, as well as the bank's operations management factor are critical to the success of the e-banks. WAP, GPRS and 3G features from mobile devices are of no significance or influence in the adoption of e-banking services in this study. Results also reveal that privacy, security and convenience factors play an important role in determining the users' acceptance of e-banking services with respect to different segmentation of age group, education level and income level.Research limitations implications - The use of convenience sampling in this study weakens research objectivity. This study excludes the voice of non-users and non-users' views should be taken into account in future study.Practical implications - The results are expected to provide a practical contribution in the area of retail banking and in understanding consumer behavior in the Malaysian business-to-business financial services industry.Originality value - This paper is the extension of an earlier study by Suganthi et al. which identified seven factors affecting the adoption of internet banking, with 17 elements. This study examines a wider scope of factors that consist of ten attributes with 78 elements based on the extant literature.
Purpose The purpose of this paper is to understand how Open Innovation Digital Platforms (OIDPs) can facilitate and support knowledge co-creation in Open Innovation (OI) processes. Specifically, it intends to investigate the contribution of OIDPs-oriented to successfully implement all the phases of interactive coupled OI processes. Design/methodology/approach The paper carries out an exploratory qualitative analysis, adopting the single case study method. The case here investigated is Open Innovation Platform Regione Lombardia (OIPRL). Findings The case study sheds light on how OIPRL supports knowledge co-creation through its processes, tools and services as a co-creator intermediary. In its launch stage, the platform simply aimed at giving firms a tool to “find partners” and financial resources to achieve innovative projects. Now, however, the platform has developed into an engagement platform for knowledge co-creation. Research limitations/implications One limitation lies in the particular perspective used to perform the case study: the perspective of the digital platform itself. Future research should focus on the individuals engaged in the platform to better investigate the processes, tools and services used to implement the OI approach. Practical implications The paper suggests ways in which OIDPs could be used by firms for effective exploration, acquisition, integration and development of valuable knowledge. Originality/value The study conceptualizes the role of OIDPs in shaping knowledge co-creation, assuming that the platforms act as Open Innovation Intermediaries (OIIs). Specifically, OIDPs can be observed to function as “co-creator intermediaries” that define, develop and implement dedicated processes, specific tools and appropriate services for supporting knowledge co-creation activities.
Purpose This study aims to analyze the relationship between the adherence to critical chain project management (CCPM) practices and the new product development performance, in terms of the results of product development programs and product portfolio management (PPM). Design/methodology/approach A survey was conducted with 79 innovative companies operating in Brazil. Data were analyzed using correlation analysis and non-parametric tests. Findings Significant and positive correlations were found between CCPM adoption and the performance factors proposed. The adoption of CCPM offered stronger correlation with PPM performance than with the adoption of traditional methods. The results further indicate a possible indirect contribution of CCPM practices to the product development program by means of PPM improvement. Originality/value This study deepens the knowledge of the joint study between project management and new product development, by bringing empirical evidence that the adoption of specific practices suggested by CCPM is used by organizations with superior performance. Moreover, the results broaden CCPM literature by attesting that companies do not necessarily have to apply the CCPM approach in a formal and explicit way to obtain the performance results given. The analyses still have practical value when indicating which CCPM practices should be prioritized by managers seeking high performance in PPM.
Purpose The principal purpose of this study is to examine the moderating influence of selling experience on the following two relationships – adaptive selling and job satisfaction and customer orientation and job satisfaction – using unionized salespeople as respondents. It also tests for the mediating role of adaptive selling in the customer orientation–job satisfaction relationship. Design/methodology/approach This paper uses data from a survey conducted on 208 pharmaceutical unionized salespeople from 46 pharmaceutical firms in India. The model was tested using structural equation modeling. Moderation hypotheses were estimated using process macro and the Johnson–Neyman technique. Findings The data fitted the model well. This research found that customer orientation drove adaptive selling behavior and job satisfaction, and that adaptive selling influenced job satisfaction (all positively); it was found that adaptive selling partially mediated the relationship between customer orientation and job satisfaction. Results revealed that job experience negatively moderated the adaptive selling behavior–job satisfaction and customer orientation–job satisfaction relationships. Practical implications The results show that pharma firms may hire young recruits and, importantly, measure their customer orientation and adaptive selling levels. For the purposes of training to enhance customer orientation and adaptive selling, pharma firms may send only their less experienced salespersons. Originality/value To the authors’ knowledge, this study could be the first to examine the interaction of job experience and customer-directed selling behaviors such as adaptive selling and customer orientation on job satisfaction. Moreover, this is possibly the only study in this domain that uses unionized salespeople in an emerging market (India).
Purpose Empirical studies have found that cost-based pricing remains dominant in pricing practice and suggest that practice conflicts with marketing theory, which recommends value-based prices. However, empirical studies have yet to examine whether cost-plus formulas represent the pricing approach or essence. Design/methodology/approach This study aims to address the factors that explain price setting whereby the cost-plus formula is not just the pricing approach but also the pricing essence. This examination is grounded in a survey conducted on 380 Brazilian industrial companies. Findings The results show that, for price-makers, the cost-based pricing essence is positively associated with four factors (two obstacles to deploying value-based pricing, company size and differentiation), but it is negatively related to one factor (premium pricing strategy). For price-takers, the cost-based pricing essence is positively associated with four factors (two obstacles to deploying value-based pricing, coercive isomorphism and use of full costs), but it is negatively related to five factors (one obstacle to deploying value-based pricing, company size, competitors’ ability to copy, normative isomorphism and experience). Originality/value The key contribution of this paper is demonstrating that cost-plus formulas do not go against the incorporation of competitors and value information. This study reveals that it is possible to set prices based on either value or competitors’ prices while simultaneously preserving the simplicity of the cost-plus formulas. Via the margin, firms may connect costs to information about competition and value. The authors also demonstrate the drawbacks of not segregating companies into price-makers and price-takers and an excessive focus on the pricing approach at the expense of pricing essence.
Purpose The purpose of this paper is to develop a model to predict the antecedents of the integration level among marketing, logistics and production, considering the influence of formal and informal factors that generate integration and the existence of conflicts. Design/methodology/approach A survey of 179 participants from all regions of Brazil was conducted. A parsimonious model including four dimensions and 34 variables was developed through confirmatory factor analysis and structural equation modeling. Findings The field data corroborate studies dealing with the impact of various formal and informal integration factors on the cross-functional integration level as a construct. Furthermore, this paper concludes that the level of cross-functional can be defined as: the intensity of the relationship among internal functions which can be measured by the mutual existence of formal and informal factors and the absence of manifest conflicts. Research limitations/implications The findings of this paper cannot be generalized because of the convenience sampling. Future research could apply a probabilistic sampling and try to explore other geographical settings in both national and international contexts. Practical implications The proposed model can generate important information for managers by pointing out variables that can predict the integration level and their impacts on the organizational performance. The paper concludes with examples about how the model could be useful in several practical situations. Originality/value This paper proposes a model with reasonable accuracy to predict the integration level and overcomes prior research limitations with respect to models to predict the antecedents of the integration level, particularly the role of conflicts in the integration processes.