Antecedents and consequences of commitment in marketing research services: The client's perspective

Commitment is one of the most frequently studied variables in business-to-business relationships and several researchers propose it is the main antecedent of customer loyalty. However, while marketing relationships researchers agree on the importance of the construct, differences remain in its conceptualization and operationalization. This study examines commitment from the customer's perspective, consisting of three components: calculative, affective and normative. Relationships were tested between the three dimensions of commitment and social bonds, trust and satisfaction in the context of professional business services providers and their clients. The results of the model that was tested in Central and Eastern European companies show that affective commitment is the only one of the three components that significantly influences customer loyalty. Trust and social bonds have no significant relation either to normative or to calculative commitment while a relation of overall satisfaction with normative and calculative commitment is negative. The theoretical and managerial implications for the model to assist in the development of appropriate strategies to achieve affective commitment and loyalty in business relationships are discussed.     

A relationship value perspective of social capital in networks of software SMEs

Utilizing theories on social capital, business networks, social networks and relationship value, we explore the aspects that provide specific value in relationships with different actors in the software industry. The motive for the study is the assumption that some relationships are regarded as more important than others, and companies strive to focus on fewer relationships with greater outcomes. The study is guided by the premise that social capital is a foundation for relationship value, and its identified elements differ among relationships. We take the perspective of software companies and classify their relationships with business partners into three distinctive types according to their function in the value creation process. The findings of our empirical analysis, based on a qualitative case study of eight software SMEs indicate that the aspects of social capital, like the sources of relationship value, vary systematically by the types of relationships. Thus, we are able to provide some theoretical and managerial implications on the management of small- and medium-sized companies.     

An empirically-based typology of product innovativeness for new financial services: Success and failure scenarios

During the last decade, an increasing number of studies have been concerned with the factors that lead to new service success. Quite a few studies, however, have examined the role of product innovativeness in new service development and performance. The present article aims to test empirically a widespread, yet under‐researched argument, according to which, different innovative types may be associated with different development patterns and performance outcomes. On the basis of a detailed literature review we designed the conceptual framework for the present study. More specifically, we propose that the performance outcome of a new service is the result of the development process followed, which, in turn, is influenced by the innovativeness of the new service. The development process is examined through three blocks of variables, namely new service development activities (i.e., the “what” component), process formality (i.e., the “how” component) and cross‐functional involvement (i.e., the “who” component). Performance is viewed in relation to both financial and non‐financial outcomes. The different dimensions of innovativeness form the basis of our classification scheme. To collect the data, we followed the “dropping off method. That is, we handed in self‐administered questionnaires to participants and, a picking‐up appointment was set. Respondents were NSD project leaders who were asked to select two financial services, one successful and one unsuccessful, that they had developed within the last three years and reply to all questions relating to the development and launching of these services. Overall, 84 financial companies participated in the study, providing data for 132 new financial services (80 successes and 52 failures) developed and marketed in Greece. Data analysis revealed that six distinct service innovativeness types exist. They can be represented in the form of a continuum depending on the degree of innovativeness that characterizes each type. At the most innovative extreme of the continuum we find the new‐to‐the‐market services followed by new‐to‐the‐company services, new delivery processes, service modifications, service line extensions, while at the least innovative end service repositionings are placed. These six types are found to be associated with different development patterns in terms of activities, formality and cross‐functional involvement as well as performance outcomes. Interestingly enough, our data suggest an almost inverted U‐shaped relationship between the degree of innovativeness of a new financial service and financial performance. On the other hand, the major service innovations make the strongest contribution on non‐financial performance, while “me‐too” offerings are the least successful ones. The study has a number of research contributions as well as implications for managers involved in new service development in the financial services industry. The conceptualization of the continuum of innovativeness helps disclosing the critical points of the NSD process and its structuring which, depending of the type of new service and the degree of innovativeness that characterizes it, ensures that the management's objectives regarding the performance of the new service are attained.     

Different roads to servitization success – A configurational analysis of financial and non-financial service performance

Much servitization research is ambiguous regarding its conceptualization of servitization success and the results are often inconclusive or even contradictory. The present study argues that this is because servitization success is understood best as a multidimensional, causally complex phenomenon, and adopts a configurational approach. The purpose of this study is to shed light on prominent, but inconclusive success factors, their interdependencies, and their causal role in leading to servitization success. A state-of-the-art fuzzy set qualitative comparative analysis is applied to a sample of 143 German manufacturing companies. The complex relationships between focus of the service offering on services supporting the product and services supporting the clients actions, the existence of a separate service organization, decentralization of decision making, management commitment to services, service orientation of corporate culture, and financial, non-financial, and overall service success are disentangled. A service oriented corporate culture, decentralized decision making, and management commitment to services are identified as necessary for servitization success; 3 configurations as sufficient for servitization success and 3 configurations as sufficient for a lack thereof. These findings paint a more realistic and multifaceted image of the causal relationships underlying servitization success, thus yielding useful suggestions for the management of servitizing businesses.     

Buyer attractiveness as a catalyst for buyer–supplier relationshipdevelopment

The concept of buyer attractiveness has received increasing scholarly attention in the recent business marketing literature, yet empirical studies of the dynamics between buyer and supplier attractiveness and their implications for relationship development are scarce. The research framework presented in this study suggests that buyer attractiveness is connected, first, to supplier's experienced and expected business outcomes within the focal relationship, and second, to the leverage impact of the focal relationship on supplier's other relationships. A qualitative case study of two buyers and their key suppliers scrutinizes the dimensions of attractiveness associated with relationship development. The findings indicate that attractiveness and adaptations performed by the buyer and the supplier are interlinked in a mutually reinforcing or deteriorating manner, forming a mechanism that catalyzes relationship development. These findings and the resultant empirically grounded framework provide a conceptualization and enhanced understanding of the dynamics between attractiveness, adaptations and relationship development.     

Internationalization, Local Adaptation, and Subsidiary's Entrepreneurship: An Exploratory Study on Taiwanese Manufacturing Firms in Indonesia and Malaysia

This inductive research attempts to explore the dynamics of firm internationalization process, with a focus on a manufacturing firm's first-time foreign entry endeavor. By conducting comparative analyses based on six cases of Taiwanese manufacturing firms who have established production bases in Indonesia and Malaysia, we postulate a conceptual framework entailing relationships among entry decision, implementation strategy, and local adaptation. We highlight the role of subsidiary's entrepreneurial initiatives play in achieving required extent of local adaptation and hence successful implementation for companies lacking sufficient experiential knowledge of internationalization. Propositions based on the conceptualization are detailed and the implications of these qualitative insights are discussed, with an expectation of contributing to the extant theories of internationalization.     

Contingent contingency: Knowledge heterogeneity and new product development performance revisited

This paper re-conceptualizes the meaning of knowledge heterogeneity—an important but under-developed collective-level concept that influences innovation. The new conceptualization extends the construct of knowledge heterogeneity beyond the traditional assessments of variability in professional background. This research further explores the quadratic relationship between knowledge heterogeneity and new product development performance. Drawing on and synthesizing knowledge clarity and uncertainty avoidance literature to consider work context, the possibility of a positive quadratic, rather than a linear or a negative quadratic, relationship between knowledge heterogeneity and innovation is suggested. This relationship is explored using data collected from 128 new product development teams from companies in knowledge-intensive and innovation-oriented industries located in Taiwan. Results are discussed in terms of the hypothesized positive quadratic relationship. The outcome of the study is discussed in terms of the influence of the knowledge structure and cultural factors, which suggest potential contingent contingencies across different contexts.     

Building B2B relationships via initiation contributors: Three cases from the Norwegian-South Korean international project business

Initiation is still an unclear phase of B2B relationship development. Here, we build on existing theoretical knowledge derived from relationship development, project marketing and international business literature. We use this to analyze three cases of business relationship initiations between Norwegian and South Korean actors in the shipping industry. By piecing together theoretical and empirical insights, we develop a dynamic model of the relationship initiation process that highlights the role of initiation contributors in international project business. The developed model reveals that multiple entities— such as contacts, rituals and standards—serve as initiation contributors. These trigger or facilitate the focal dyadic relationship initiation, while also preparing future initiations in the focal context. Thus, our key contribution is to bring processual and contextual dimensions to business relationship initiation. Our research also suggests practical insights as to which actors and entities suppliers need to mobilize, in order to initiate new business relationships in international project business contexts.     

Does an extrinsic reward for R&D employees enhance innovation outcomes? Evidence from a Japanese innovation survey

This paper examines the effects of extrinsic rewards for R&D employees on innovation outcomes based on evidence from a Japanese innovation survey. Theoretical and empirical studies present conflicting findings regarding the relationship between extrinsic rewards and innovation outcomes. This article seeks to shed light on the relationship between rewards and outcomes, as represented by the development of new products and services and their technological superiority and profitability. The analysis produced the following findings. First, companies that have introduced an evaluation system based on R&D performance are more likely to develop new products and services. The introduction of the evaluation system brings about success in product innovation with greater technological superiority. Second, monetary compensation has a negative impact on the development of new products and services and technological superiority. Third, these effects vary with the company size. Small- and medium-sized companies achieve higher technological superiority with performance-based evaluations. Large companies tend to adversely impact the development of new products and services and their technological superiority with monetary compensation.     

How value and trust influence loyalty in wireless telecommunications industry

Despite making significant investments in enhancing the customer service experience, long-term customer loyalty remains an elusive dream for many service providers. Particularly in the telecommunications industry, switching providers even from within continuous contract relationships is easy and companies struggle to retain their customers. Trust and value are considered cornerstones of long-term relationships, so it is perhaps surprising that previous research on how relationship age and usage level actually affect value, trust and loyalty is inconclusive. The current research is set in the telecommunications services field and draws on a large-scale survey undertaken in Finland. The findings support the contention that perceived value relates positively to loyalty, and that trust mediates that relationship. Surprisingly, in the telecommunications industry, increasing relationship age and usage level strengthen neither value and loyalty nor the links between trust and loyalty. The results may be explained by the unique characteristics of the highly competitive mobile telecommunications sector, and confirm the view that loyalty does not pay without strategies that value long-term customers and thereby build trust with new customers.     

Measuring inter-organizational trust—a critical review of the empirical research in 1990-2003

This study reviews empirical research on inter-organizational trust. Since the early 1990s, researchers on inter-organizational relationships have consistently argued that mutual trust is an essential factor of relationship quality and performance. The purpose of the study was to evaluate the advancements and setbacks in current empirical research in terms of measuring inter-organizational trust. This paper analyzes the theoretical approach, the conceptualization and operationalization, and the measurement issues covered in studies on inter-organizational trust conducted from 1990 to 2003. Although trust has emerged as an important factor in inter-organizational relationships, there are still major conceptual and methodological challenges to be met in studying this complex concept. The results show major inconsistencies in conceptualization, operationalization, and measurement of trust. The paper concludes with suggestions for further empirical research.     

Analyzing business relationships and distinguishing different interaction levels

Over the years, there have been a large number of attempts to understand relationships in industrial markets. However, even if relationships are built up on the basis of series of interactions, these studies have not offered systematic categorization of different types of relationship interactions. The present article proposes a refined conceptualization for identifying different types of relationship interaction units, labeled interaction levels, ranging from a single exchange to a relationship portfolio. Compared to the current use of two interaction levels in relationship studies, the proposed conceptualization allows a more elaborate analysis of single relationships and better comparisons of different relationships.     

Analyzing an industry in change: the Irish software manual printing industry

This article is concerned with the application in a case study of three inter-related theoretical issues: new perspectives on technological change, learning organizations, and the question of market versus hierarchy in the relationships between firms. The case study is of the software manual printing industry in Ireland, and its relationship with the major, international software companies.     

Reconfiguring supplier relationships between local and global: History matters

Small and medium-sized companies are increasingly facing international markets as part of their processes of growth and development. A great deal of literature deals with different patterns of growth and international development that are specific to SMEs with respect to large companies. Fewer studies have been conducted on the reconfiguration of company supplier relationships involved in these processes. This paper focuses on the role played by the consolidated set of company supplier relationships when the firm faces some critical stages in its process of development, i.e., growth from small to mid-sized and the implementation of new ventures abroad accessing new business relationships with international suppliers. A multiple and longitudinal case study shows how the local set of supplier relationships of four mid-sized Italian mechanical companies acting in industrial districts has played an important role in shaping the emerging set of supplier relationships and addressing companies' actions in their growth and internationalization processes.     

Transformational Leadership and Organizational Innovation: The Roles of Internal and External Support for Innovation*

Leadership has been suggested to be an important factor affecting innovation. A number of studies have shown that transformational leadership positively influences organizational innovation. However, there is a lack of studies examining the contextual conditions under which this effect occurs or is augmented. Therefore, this study aimed to investigate the impact of transformational leadership on organizational innovation and to determine whether internal and external support for innovation as contextual conditions influence this effect. Organizational innovation was conceptualized as the tendency of the organization to develop new or improved products or services and its success in bringing those products or services to the market. Transformational leadership was hypothesized to have a positive influence on organizational innovation. Furthermore, this effect was proposed to be moderated by internal support for innovation, which refers to an innovation supporting climate and adequate resources allocated to innovation. Support received from external organizations for the purposes of knowledge and resource acquisition was also proposed to moderate the relationship between transformational leadership and organizational innovation. To test these hypotheses, data were collected from 163 research and development (R&D) employees and managers of 43 micro‐ and small‐sized Turkish entrepreneurial software development companies. Two separate questionnaires were used to collect the data. Employees' questionnaires included measures of transformational leadership and internal support for innovation, whereas managers' questionnaires included questions about product innovations of their companies and the degree of support they received from external institutions. Organizational innovation was measured with a market‐oriented criterion developed specifically for developing countries and newly developing industries. Hierarchical regression analysis was used to test the hypothesized effects. The results of the analysis provided support for the positive influence of transformational leadership on organizational innovation. This finding is significant because this positive effect was identified in micro‐ and small‐sized companies, whereas previous research focused mainly on large companies. In addition, external support for innovation was found to significantly moderate this effect. Specifically, the relationship between transformational leadership and organizational innovation was stronger when external support was at high levels than when there was no external support. This study is the first to investigate and empirically show the importance of this contextual condition for organizational innovation. The moderating effect of internal support for innovation, however, was not significant. This study shows that transformational leadership is an important determinant of organizational innovation and encourages managers to engage in transformational leadership behaviors to promote organizational innovation. In line with this, transformational leadership, which is heavily suggested to be a subject of management training and development in developed countries, should also be incorporated into such programs in developing countries. Moreover, this study highlights the importance of external support in the organizational innovation process. The results suggest that technical and financial support received from outside the organization can be a more important contextual influence in boosting up innovation than an innovation‐supporting internal climate. Therefore, managers, particularly of micro‐ and small‐sized companies, should play external roles such as boundary spanning and should build relationships with external institutions that provide technical and financial support. The findings of this study are especially important for managers of companies that plan to or currently operate in countries with developing economies.     

Innovation in Process Plant: A Case Study of Ethylene

Successful companies in any industry recognize the importance of involving customers and suppliers in the design and development of products and services. When complex product and process technologies are involved, these relationships create a network of companies and industries, each of which is a potential source for technological innovation. At the same time, however, such interrelationships further complicate the already challenging task of analyzing the evolving nature and sources of innovation. Using ethylene manufacture as a case study, Peter Hutcheson, Alan Pearson, and Derrick Ball present a three-stage model of innovation. The model provides a framework for understanding the evolution of technological innovation in ethylene manufacturing, as well as the changing roles of the equipment suppliers, the process plant suppliers, and the operating companies througout this evolution. The applicability of this approach to other sectors of the chemical processing industry is also evaluated. In much the same way that a product's life cycle can be traced through distinct phases of creation, growth, maturity, and decline, technological innovation progresses through three main phases: uncoordinated, segmental, and systemic. The progression through these three phases is marked by changes in the relative levels of product and process innovation activity. In this three-stage model, innovative activity progresses from an extreme of high product and low process innovation during the uncoordinated phase, through the segmental period of low product and high process innovation, to the low product and medium process innovation levels of the systemic phase. In other words, as the industry matures, the focus of innovative activity gradually shifts from the product to the process. As illustrated by the example of ethylene manufacturing, companies operating in an industry that has reached the systemic stage will find little or no scope for innovation in the end product or the core manufacturing technologies. In such a mature market, the product is a commodity item, and the fundamentals of the manufacturing process are well known. At this stage, the quest for productivity improvements focuses on cost reductions from task structuring and specialization, task integration, and automation. As such, equipment manufacturers play an increasingly important role in refining existing technologies and improving equipment reliability and capabilities. Such efforts are facilitated by close cooperation with the operating companies, which can contribute process expertise that the equipment manufacturers might otherwise lack.     

New Product Development For Service Companies

It is well known that services differ from manufactured goods in a number of significant ways. Services are largely intangible, produced and consumed simultaneously, heterogeneous and perishable. These differences can lead to changes in service management. Christopher J. Easingwood has investigated how new products development practices in service organizations may reflect these differences. He has profiled practices found in a sample of service companies in the United Kingdom on topics ranging from idea generation to post-launch assessment, together with the strategic role and organizational location of new products. A number of special characteristics of the new product activity in services companies are identified. For instance, the number of new product introductions may be restricted due to customer and staff confusion when faced with a proliferation of service products. Test markets are used primarily to ensure the proper functioning of the service rather than to provide a base for a national sales projection. These and other characteristics appear to be appropriate adaptations to the special features of services. They are part of a pattern that shows some of the ways that service companies have adapted the new product development process to meet unique problems in the service environment.     

Initial relationship development in new business ventures

This paper seeks to investigate some of the issues faced by an existing company when developing the initial customer relationships for a new venture. All companies face the challenge of new-relationship development in order to achieve growth and to replace relationships which have been lost or are in decline. But the challenge of developing the first customer relationships of a new venture is likely to be particularly acute because the new venture's marketing function and its offering to customers are likely to be undefined and undeveloped. This paper is based on a case study of initial customer relationship development in a new venture of an established business. The paper analyses the issues that the company faced in developing these initial relationships and the approaches to relationship development that it took. The case analysis leads to the conclusion that the development of initial relationships can be facilitated by an ‘open marketing function’ involving a number of functional areas both in the supplier and in the initial customers. The paper draws managerial implications from the case analysis for the task of marketing in this situation.     

NSD Processes and Practices in Experiential Services*

This paper examines new service development (NSD) in a distinctive set of services: experiential services. Organizations delivering experiential services place the customer experience at the core of the service offering. They focus on the experience of customers when interacting with the organization rather than just the functional benefits following from the products and services delivered. Increasingly, organizations are recognizing that managing customer experiences is a powerful way of differentiating from competitors, establishing emotional connections, and increasing customer loyalty. Studying experiential services sheds light on this highly intangible type of services and, by representing an extreme end of the service spectrum, can advance the knowledge on the wider area of new product and service development. This paper addresses three research questions: (1) What are the processes and practices used in the development and design of experiential services? (2) How are these processes and practices similar to or distinct from established NSD practices? (3) How do these findings reflect on the wider area of NSD? The study concentrates on five dimensions of NSD: (1) the process; (2) market research; (3) tools and techniques; (4) metrics and performance measurement; and (5) organization. For each of these areas propositions are formulated and refined with empirical data. Using the case research methodology, empirical data were collected in 17 case companies: experiential service providers, design agencies, and consultancies known for focusing on the customer experience. The main method of data collection was interviews with those involved in experiential service design, such as founders, executives, or experienced designers. The case data revealed a number of practices specific to experiential services. These include a strong emphasis on gathering customer insights, in several cases obtained through empathic research and ethnographic research techniques. Other specific practices for experiential services include mapping customer journeys or touchpoints and storytelling. The case study companies also revealed a trade‐off between relatively formal, tight methodologies and more flexible, loose methodologies in NSD. More research is required to investigate the contingency factors surrounding tight or loose methodologies. The results also revealed the use of more broadly used NSD practices, such as a systematic NSD process, multiple performance measures, cross‐functional teams, and front‐line involvement. The observations from this study are captured in a set of seven propositions concerning NSD in experiential services. Reflecting on NSD in general, this study highlights the important role of service process innovation compared with service product innovation and the importance of continuous innovation requiring NSD processes and practices that are more flexible, iterative, and nonlinear. The study also supports the argument that different types of services may require different NSD processes and practices.