Separate or Integrate? Assessing the Impact of Separation Between Product and Service Business on Service Performance in Product Manufacturing Firms

Purpose: Investigating how the separation of the product and service business mediates the effect of management's commitment to the service strategy on service performance in product manufacturing firms.

Methodology: The authors surveyed 216 European manufacturers in the high-value durable equipment industry moving into the service business. After assessing adequacy of measurement scales, the authors tested statistically for mediation. Their results hold when replicating the study using a structural equation modeling approach and while testing for common method biases.

Findings: The authors find evidence that the creation of a separate service organization, organized as a profit center, has a significant positive mediating effect between managerial commitment and the services' financial performance. Although separation also has a positive mediating effect between commitment and non-financial performance, organizing services as a profit center had a negative effect on the service's non-financial indicators.

Research Limitations: Research limitations include (a) a sample limited to German-speaking firms in the high-value durable equipment industry, (b) measurements based on self-reported managerial perceptions of service performance, and (c) conceptualization of service as a single strategic response.

Practical Implications: Although the complementarity between products and services is high in the market, the authors' research suggests few synergies to leverage their integration inside the organization. Accordingly, management should, at least in transition efforts similar to the ones included in this sample, look into creating a separate and distinct service organization.

Value/Contribution: This research was driven by practical concern on how to organize service operations in a manufacturing firm. Initial framing of the research through the creation of the construct of separation of product and service business was used.     

A Two-Course Survey of “Creative Country”

Abstract

This article is adapted from a chapter on creativity in a forthcoming book which is not about the business of advertising, but which deals with the advertising of business. Titled “The Chief Executive's Journal of Capitalistic Advertising,” the book presents a most timely concept of advertising, and one which gives the Chief Executive definite responsibilities. As a student of creativity, a Chief Executive needs a grasp of the fundamentals not unlike that of a college sophomore taking Creativity 101. This article aims to provide just that.     

CSR Practices and Corporate Strategy: Evidence from a Longitudinal Case Study

This paper aims to contribute to the present debate about business ethics and Corporate Social Responsibility (CSR) that the Journal of Business Ethics is hosting. Numerous contributions argued theoretical frameworks and taxonomies of CSR practices. The authors want to ground in this knowledge and provide further evidence about how companies adopt CSR practices to address stakeholders’ claims and consolidate their trust. Evidence was provided by a longitudinal case study about an Italian food company that is one of the largest producers of baby food. This company reshaped its corporate strategy along three decades through the adoption of CSR practices in order to win stakeholders’ trust about food safety and supply chain behaviour. The empirical exercise was informed by a literature review of the relevant contributions in terms of CSR business practices and levels of efforts to adopt them. In light of this review, the authors adopted for the research framework the taxonomy of business practices proposed by Spiller (2000, “Ethical Business and Investment: A Model for Business and Society”, Journal of Business Ethics 27, 149-160) and the levels of commitment towards CSR proposed by Stahl and Grigsby (1997, Strategic Management; Total Quality & Global Competition (Blackwell, Oxford)). The main findings are discussed in order to argue theoretical implications and identify further areas of research and debate.     

A Commentary on “Business Marketing in Master's Programs: A Part of the Fabric”: Cut from the Same Cloth?

ABSTRACT

The authors of this article and their colleagues at the Richard Ivey School of Business at the University of Western Ontario are to be commended not only for this well-crafted article but also for their efforts to elevate and incorporate essential knowledge of business marketing into the fabric of their school's master's program. The provocative argument that the authors make is that business marketing behaviors, concepts and topics should not be the focus of just one elective course but that they should serve as a foundation of a school's entire master's program. According to the authors, that foundation can be built around four pillars or business marketing essentials-organizational buyer behavior, relationship marketing, customer value, and business markets. In this article, they present not only a process and guidelines for imbedding these pillars into a master's program but also recommend specific topics and cases for various master's level courses. For these reasons, this article is a “must read” for marketing scholars who seek not only to create and/or improve elective courses business marketing but also to enhance the prominence of the study of business marketing at their respective universities.     

A Scientometric Analysis of Publications in the Journal of Business-to-Business Marketing 1993–2014

ABSTRACT

Purpose: To conduct a scientometric analysis of the contents of the Journal of Business-to-Business Marketing from 1993 to 2014.

Methodology/approach: The authors use the Leximancer computer-aided text analysis program, which reliably and reproducibly identifies the main concepts embedded in the text—their frequency and patterns of co-occurrence—based on the ways words move together in the text. They also identify key concepts that differentiate among the networks of concepts occurring in each of the first four five-year periods of the Journal’s history.

Findings: There are four common underlying conceptual themes: relationships, market, study, and business. But the focal mix of concepts has changed over time, from a narrower initial focus on distribution and power and conflict, to a greater focus on firm business marketing strategy and pedagogy, to a focus on networks, the Internet and more collaborative relations, to a focus, in the most recent period, on psycho-social network concepts, such as trust and commitment.

Research implications: The results complement and provide a baseline for evaluating and comparing researcher-conducted literature reviews of business marketing and JBBM’s contributions. The methodology provides possibilities for further analysis as it can be extended to analyze the business marketing and wider marketing literature more generally and how it has evolved.

Practical implications: Leximancer provides a comprehensive, accessible summary of the content of the JBBM and demonstrates its value as a text analysis program.

Originality/value/contribution: The authors are among the first to use this novel computer text analysis program to conduct a scientometric analyses of journal content. It provides a template for conducting studies of other journals and text.     

Investigating Graduate Business Students' Perceptions of the Educational Value Provided by an International Travel Course Experience

Abstract

Researchers agree that students' critical thinking and decision making skills are enhanced through exposure to new cultures and global markets. Thus, one way of bringing about improvement in these areas is through international travel courses. The purpose of this study is threefold. One, to describe the process involved in the creation of a required for-credit international travel course; two, present the findings of a research study designed to investigate graduate business students' perceptions of the educational value provided by an international travel course; and three, describe the ongoing process of closing the assessment loop as it relates to the internationalization of MBA and MACC curricula. The results of this study are encouraging. In general, students perceived that the international travel course added value to their educational experience and enhanced their relationships with other students. Items receiving weaker support were concerned with “thinking skills”, such as multi-disciplinary integration and improved decision-making. These results have important implications for future improvements to the international travel course.     

A longitudinal examination of positioning strategies in a liberalized developing African economy: The case of Ghana

This article examines the nature of positioning strategies pursued by companies (domestic and foreign) conducting business in a liberalized developing African economy, Ghana, over a ten‐year period. Specifically, this research deals with the aggregate behaviors of firms operating in Ghana's post‐SAP (structural adjustment program)‐induced environment. The findings reveal that the dominant positioning strategies are the brand name (branding tactics) and value for money (affordability). However, more recently, attractiveness, which implies elegance about the offering, has also emerged as a prominent positioning strategy. Evidence that supports the robustness of companies' adoption of positioning strategies within sub‐Saharan African economies is also developed. The results also suggest that firms doing business in sub‐Saharan African marketplaces characterized by an open and liberalized business climate have no choice but to become competitive in their positioning and with the aim of targeting the mass market and the lower‐middle‐class target audiences. © 2011 Wiley Periodicals, Inc.     

Trusting and Monitoring Business Partners throughout the Relationship Life Cycle

Purpose: The goal of this research is to understand the theoretical and empirical confluence of multi-dimensional trust with the role of monitoring as business partnerships unfold and evolve dynamically throughout the course of the relationship life cycle.

Methodology: A pilot study is run in which in-depth interviews are conducted with managers to glean their insights regarding the theoretical questions and to verify terminology for survey items. A large-scale survey study is then conducted to test hypotheses about the relationships among the focal constructs. The participants in both studies are real procurement professionals reporting on their primary supplier relationships. The qualitative study and the samples of real world managers enhance the external validity of this research.

Findings: In early stages of business relationships, monitoring and benevolence trust interact to positively impact business performance. Continued monitoring in later stages interact with benevolence trust to performance detriment. Conversely, monitoring and competence aspects of trust hurt business performance in earlier life stages.

Research Implications: Theoretical frameworks that include the constructs of multidimensional trust, monitoring, and relationship life cycle stages can build on the nuanced 3-dimensional contingencies established in this research. In particular, this research furthers the concepts of monitoring and the relationship life cycle.

Practical Implications: There is a time and a place to trust one's business partners, and a time and a place to verify their trustworthiness. As business partnerships are forged, monitoring and benevolence trust can be particularly fruitful.

Contribution: In this research, the authors build on the business marketing literature that has begun to delineate the benevolence and competence dimensions of trust in business relationships; they demonstrate the role that partner monitoring has in maintaining business commitments; and establish how these effects are modified over the stages of the relationship life cycle; i.e., from exploration, to build-up, maturity, and decline.     

Are the World's Largest Firms Regional or Global?

There has been vigorous debate about whether the world's largest firms are regional or global in their operations and strategy. Some authors argue that global vision and strategy are essential for most firms in today's interconnected world, while others claim that even the largest multinational firms are mostly confined to their home regions—and that global strategy is a myth. Using a novel data set of over 1,000 of the world's largest firms, we provide a new perspective on this debate. We show that these firms range from domestic to regional, transregional, and global, with the implication that global strategy is alive and well in international business. © 2015 Wiley Periodicals, Inc.     

Teaching Business Strategy for an Emerging Economy

Abstract

An Internet-based simulation about a business in an emerging economy is presented and described as a crucial ingredient for a business strategy course dealing with emerging economies. The development of the course took place in three separate classes where experiments were conducted regarding the key ingredients necessary for a course designed to teach Business Strategies for an Emerging Economy. The simulation, when coupled with today's dominant strategy paradigm, the Resource Based View, appears to yield a course design that attracts students while emphasizing the actual substance which is crucial in such a course.     

Ethical claims and labelling: An analysis of consumers' beliefs and choice behaviours

Abstract

Although consumers' growing interest in ethical consumption has been well-documented, their understanding of specific claims, and the link between their stated concerns and behaviour, has not. Using a framework from systematic-heuristic and behaviour modification theory, this study explored consumers' understanding of varied ethical claims and a specific eco-label, and then estimated the effect these stimuli had on their choice behaviours. In-depth interviews revealed a strong interest in environmental and social attributes but considerable scepticism about specific claims. However, a choice modelling experiment found ethical attributes nevertheless influenced respondents' choices. Two distinct clusters whose views and choice behaviours differed markedly existed: one was primarily price-driven and the other more responsive to specific claims. Discrepancies between the qualitative and quantitative studies appear attributable to differences in information processing; many consumers respond strongly to heuristics, even though they believe themselves sceptical of the claims these communicate. The findings raise important policy questions about the scientific basis of many ethical claims, since consumers were strongly influenced by these, despite their views to the contrary.     

Unilever's Latin American Strategy in Yellow Fats,Ice Cream and Teas

Abstract

The article investigates the interplay between the changes in the large corporate strategy of a multinational and changes in the business environment in Latin America. In its international expansion, Unilever has traditionally used a decentralized national responsive strategy where local subsidiaries develop their markets with a great degree of autonomy. In response to globalization, Unilever moved towards greater business coordination and a more focused approach in the nineties. The article examines the impact of this reorganization on the firm's regional strategy in Latin America. We examine the firm's strategy in three food categories: fat oils, ice cream and tea-based products. We conclude that Unilever continues to use a strategy of national responsiveness with no attempt to coordinate its experiences across the region.     

Managing the Brand in a Corporate Advertising Environment: A Decision-Making Framework for Brand Managers

Abstract

Corporate advertising has become a significant business activity. That fact is important for brand managers because consumers' knowledge formed from corporate advertising may influence the way they think about brands the company markets. Brand managers must understand how such potential influence may occur and manage it to their advantage. The authors explore four key questions brand managers should consider in that context. In presenting answers, they integrate several literatures and propose a conceptual framework with a set of research propositions. Finally, they describe general directions for future research.     

Perceived vs. Actual Benefits Operating as a Fast-Food Franchisee

Abstract

The franchising form of business is experiencing rapid growth. The authors conducted a survey of 355 fast-food franchisees to determine-from two time perspectives-the benefits of operating as a franchisee, compared to independent business ownership. The franchisees' initial thoughts were obtained prior to affiliating with a franchiser, then, subsequently, as experienced franchisees. Their responses are valuable to franchisors and prospective franchisees.     

The moral legitimacy of intellectual property claims: American business and developing country perspectives

Private property forms the bedrock of the business/society relationship in a market economy. In one way or another most societies limitwhat people can claim as property as well as theextent of claims they can make regarding it. In the international arena today intellectual property rights are a focal point of debate. Many developing countries do not recognize the monopoly claims of patents and copyrights asserted by business as legitimate. This paper reviews contemporary areas of dispute and then presents the tasks facing the construction of a fair intellectual property rights regime.Paul Steidlmeier is Associate Professor of business policy at the State University of New York in Binghamton. He is the author of a number of articles on business and society and of a recent book,People and Profits: The Ethics of Capitalism (Prentice Hall).     

Thinking critically about critical thinking: Assessing critical thinking of business students using multiple measures

Critical thinking is a skill that potential employers expect all graduates to possess. Hence, most business management programs consider critical thinking as an important student learning goal. Unfortunately, there is ambiguity about how to best assess critical thinking, both as a skill and a learning outcome. The authors empirically demonstrate how they measure the critical thinking ability of their students in different settings, and how their critical thinking ability improves as they progress through the business program.     

A Cross Cultural Analysis of the Geographical Knowledge of U.S., Irish,Israeli, Mexican,and South Korean Business School Students

ABSTRACT

Geographical knowledge about foreign countries is considered to be a significant factor related to the successful marketing of goods and services in international markets-a not insignificant conclusion by experts given the sizable trade deficits run up by the United States in 2000 ($365 billion), 2001 ($346 billion), and 2002 ($435 billion).

Unfortunately, previous research has concluded that U.S. business school students-tomorrow's executives who will make decisions that will impact their firms' international operations-have inadequate levels of international geographical knowledge.

This article compares the geographical knowledge of U.S. business school students to that of business school students in four countries: Ireland, Israel, Mexico, and South Korea. The sub-par performance exhibited by the U.S. students and the impact of six independent variables on global geographical knowledge are used to develop a number of pedagogical conclusions designed to enhance the international geographical knowledge of U.S. business school students and students in foreign business schools and overcome the antipathy toward this subject matter that apparently exists within business schools and their various external constituencies.     

Regionalization in Central and Eastern Europe

SUMMARY

Regional players among the MNCs operating in Central and Eastern Europe have to decide if they should regard their businesses as a collection of individual markets or as a homogeneous region. The purpose of this paper is to examine if and how regionalization concepts have actually been implemented by foreign MNCs in CEE. The analysis focuses on the preconditions for the emergence of a regional strategy, on the identification of the main areas of regional integration, and the relationship between strategy and organizational structure. By using a longitudinal case study approach a better insight is gained on how regional strategies have emerged during the internationalization process of the firm and, if they have emerged, in which way they have manifested themselves in business decisions. The findings raise new questions about the regionalization construct with regard to the operationalization of regionalization, the relationship between strategy and structure, and its applicability to services.     

Japan's Quest for M-Commerce Dominance

Abstract

NTT DoCoMo's I-mode system is one of the most successful stories in mobile communication industry. The system has expanded the spectrum for mobile phone users to do more than just phone calls. Although I-mode is primarily used in Japan, its business model and the strategy of doing business may have a profound impact on world's m-commerce in the near future.