The innovativeness of Born-Globals and customer orientation: Learning from Indian Born-Globals

Born-Global firms, a newly emerging organizational form targeting international markets as a primary source of business from their inception, have innovativeness, requiring an intimate knowledge of their customer, as a primary feature. This study explores how a Born-Global's customer orientation leads to innovativeness through technological capability for customer relationship management (CRM) and external customer information management. Our empirical results, based on responses from 154 Indian managers, indicate that a Born-Global's customer orientation is an effective enabler of its innovativeness, whose effects are mediated by technological capability for CRM and external customer information management. Although significantly affected by customer orientation, the results further indicate that relationship quality with the buyer does not influence a Born-Global's innovativeness. When CRM technology and managing customer information obtained from external sources are employed, customer orientation significantly helps maintain the innovativeness of Born-Globals according to the results.     

Enhancing Dyadic Performance Through Boundary Spanners and Innovation: An Assessment of Service Provider–Customer Relationships

Firms recognize that working together through collaborative relationships offers potential benefits such as improving cooperation, information sharing, and overall performance. An additional and extremely valuable benefit of working together is the potential for creating innovative business approaches and solutions. Thus, developing external linkages has become a higher priority within many organizations. Boundary spanning employees offer one means of achieving closer cross‐firm relationships. We investigate the roles of boundary spanners by examining service providers and their relationships with customers. More specifically, we examine boundary spanning employees that are physically on‐site at customer facilities. Results provide strong support that boundary spanners perceiving higher levels of external organizational support from a client subsequently develop affective commitment to the customer. This, in turn, drives knowledge exchange and logistics innovation. A relationship between logistics innovation and performance (of service providers and of customers) was also found. Managerial implications of the research findings are discussed and suggestions presented covering future research.     

Service innovativeness in retailing: Increasing the relative attractiveness during the COVID-19 pandemic

COVID-19 primarily spreads through close contact between humans and has affected retailing industries extremely hard. To manage the situation retailers have turned to service innovation to change their operations to make consumers feel safe while shopping. This research focuses on the role of service innovativeness in retailing firms during the COVID-19 pandemic through an empirical study of almost 6000 consumers of 28 retailing firms. The results suggested that retailers with high service innovativeness performed COVID-19 imposed innovations better to improve their relative attractiveness. For retailers with physical stores, changes to the servicescape and the offering were found to be the key antecedents of service innovativeness. The findings on COVID-19 imposed service innovations demonstrate the importance of service innovativeness in successfully changing retailing services to adjust to the restrictions from governments and safety needs of customers.     

Logistics Service Providers and Their Customers: Gaining Commitment Through Organizational Implants

The current research examines the following question: how can on‐site representatives (i.e., organizational implants) be used to generate greater interorganizational relationship commitment? The relationship marketing literature explores many facets of interorganizational relationships and commitment, but until now, it has not considered the colocation of employees from separate firms. Dyadic survey data were collected from logistics service providers (LSPs) and their customers. The paired dyads were then analyzed using path analysis. Results indicate that organizational implantation can lead to greater levels of outcome interdependence between the organizations, which can then generate greater levels of commitment from the LSP toward the customer. Results also suggest that organizational implantation can lead to greater levels of relational capital and responsiveness, which is shown to generate greater levels of commitment from the customer toward the LSP.     

Competitive advantage through service differentiation by manufacturing companies

This paper examines the relationship among the complexity of customer needs, customer centricity, innovativeness, service differentiation, and business performance within the context of companies that have made a service transition from pure goods providers to service providers. A survey of 332 manufacturing companies provides the basis for the empirical investigation. One key finding is that a strong emphasis on service differentiation can lead to a manufacturing firm's strategies for customer centricity being less sensitive to increasingly complex customer needs, which can increase a firm's payoff for customer centricity. In contrast, the payoff from innovativeness appears to be higher if the firm focuses its resources on either product or service innovation; that is, a dual focus does not work well. This paper discusses the implications of these findings for researchers and managers.     

Service encounters as bases for innovation

This article examines the factors affecting the innovativeness of service encounters – either as drivers or as barriers. The assumption is that a considerable number of innovations in service industries are initiated in service encounters and that employees are the core factor in connecting customers with the innovating organization. Based on literature studies and pilot case studies, seven propositions are proposed and tested in a qualitative, hermeneutic way in field experiments in nine service organizations. Important new results are that encounter-based innovation requires mutual empathy between employees and customers, employees investing stubbornness and time can be a driver for innovation, and several layers of management can be a barrier. In the field experiments three new factors for encounter-based innovation were found: translation, multitasking, and hyper-professionalism. The two first are drivers; the third a barrier. A model that summarizes the findings is presented.     

Building loyalty in e-commerce: Impact of business and customer characteristics

Abstract

Understanding, building, and predicting customer loyalty in e-commerce are critical activities for long-run profitability. Successfully carrying out these activities is challenging due to the complex mix of both business organization and customer factors that may influence and drive e-loyalty. We demonstrate that business factors, such as credibility, e-satisfaction and site knowledge, and customer factors, such as inertia, innovativeness, and aggressiveness, influence e-loyalty. Our analyses show that business credibility is affected by the reputation of the e-business and its congruence with the customers’ self-image; e-satisfaction by the customers’ value perception, care, and choice; and site knowledge by customer experience, involvement, and expertise. Business factors account for about 75% of the explained variation in e-loyalty and customer factors for the rest. Understanding the controllable business and uncontrollable customer factors that drive customer loyalty should enable e-commerce retailers to continually assess these factors and make appropriate changes in marketing strategy.     

International network management for the purpose of host market expansion: The mediating effect of co-innovation in the networks of SMEs

Research shows that innovation facilitates internationalization and that the customer network is an important source of technical and market knowledge. Yet, little is known about how co-innovation within a business relationship with a key international customer relates to international network management and international growth beyond the focal business relationship. The paper contributes to international entrepreneurship research by investigating (1) international business relationship learning mechanisms that reinforce co-innovation within a dyadic business relationship with a key customer (2) and the link between co-innovation outcome in the business relationship and international network management for purposes of foreign market expansion beyond the dyadic business relationship. Three hypotheses were developed and tested on a sample of 188 internationalizing small- and medium-sized enterprises (SMEs) using linear structural relations (LISREL) structural equation modeling. The analysis shows that an SME’s (i) awareness of a customer’s complementary knowledge and (ii) innovation-oriented customer relationships leads to increased co-innovation within a dyadic business relationship with a key customer. Moreover, successful co-innovation with a key customer increases the likelihood that the focal SME will attempt at international network management by drawing on the key customer as a bridge to new customers and suppliers on the foreign host market. The findings provide a link between innovation within a dyadic business relationship and international network management for the purpose of foreign market expansion into the wider network on the host market. The findings hence contribute to our understanding of the mediating role of co-innovation in the internationalization process of SMEs.     

Opportunities for Innovation in the Delivery of Interactive Retail Services

In today's volatile economy, innovation in providing interactive services to consumers through a variety of channels is critical in retailing. Interactive service innovations offer opportunities for retailers by creating new markets or offering new benefits in existing markets. They also pose threats as existing customers encounter new alternatives offered by competitors. This article explores some of the most promising opportunities in interactive retail services; namely, the increasing power of consumers, channel synergies, pre- and post-transaction service, optimal use of resources, and consumer heterogeneity. In discussing these areas of opportunity we identify knowledge gaps and suggest research questions relevant to these gaps that warrant attention. Collectively, these questions offer a research agenda for the topic of interactive retail service innovation.     

From local to global innovation: The role of subsidiaries’ external relational embeddedness in an emerging market

This study examines factors that influence the development and transformation of local innovations into global innovations from an emerging market subsidiary. We argue that subsidiaries’ relational embeddedness with the external local network is essential for the development of local innovations. Turning local innovations into global ones is the result of the level of innovativeness evoked by the subsidiary located in an emerging market. However, the transformation of local into global innovations is more likely to happen in the case of subsidiaries having previous reverse knowledge transfers in functional areas. Reverse knowledge transfers indicate internal embeddedness, which is essential for local innovation to be transformed into global innovation. We draw on survey evidence from 131 foreign subsidiaries operating in Brazil. Using a Structural Equation Modeling technique, our results support our hypotheses and show that subsidiaries’ relational embeddedness with the external local network is positively associated with local innovation, which is transformed into global innovation, especially when innovation is developed in the subsidiary´s functional areas with previous reverse knowledge transfers. We draw implications for the field of subsidiary management research, specifically to understand the role of local innovation from foreign subsidiaries in emerging markets.     

An innovation perspective on Chinese retailers' competitive advantage

Given the emergence of strong local retail firms in China over the last two decades, this paper aims to explore their competence enhancement and capability building process from the innovation perspective. Innovative measures on retail format, activity and governance dimensions of three leading local retailers in China are investigated using an in-depth case study approach. After each case is studied on the three dimensions, a cross-case analysis is conducted using thematic analysis to examine their innovative strategies and to explore their sources of innovation. The three cases share notable similarities in their strategies that are in sharp contrast to those of foreign retailers. On the retail format dimension, they have all achieved differentiation by formulating niche strategies and succeeded in creating a strong reputation among customers and retaining the same. On the retailing activities dimension, they have all developed a profit-making model through unique supply chain management and stressed construction of logistics centres and operational standardisation. On the governance dimension, they have established an efficient incentive and reward mechanism to motivate employees and encourage innovative practice. They have also built long-term collaborative relationships with their suppliers. Based on these three cases, it is also found that local embeddedness, latecomers' advantages, business agility and a risk taking entrepreneurial mentality are the crucial factors behind the generation of efficient innovations of China's local retailers. With these findings, this paper has extended and enriched existing knowledge on latecomers' catch up and service innovation. It has constructed an analytical framework for retail innovation by building on relevant attempts in the existing literature. A theoretical framework that explains how indigenous Chinese retailers have managed to successfully compete with foreign retailers in China using innovative strategies has also been established based on empirical data.     

Understanding the drivers of organizational innovations

Organizational innovations involve the implementation of significant changes in business practices, the workplace organization, and external relations. The article reports an analysis of organizational innovations' objectives and adoption in 240 Spanish healthcare businesses. Statistical tests find a dynamic behavior in healthcare organizations with 40.8% having developed an organizational innovation in the period from 2007 to 2009. The main objectives pursued are related to improved knowledge sharing and innovation skills. Results also reveal a close relationship between organizational and product/process innovations. Specifically, healthcare companies developing new organizational methods to improve innovation skills and knowledge sharing are more successful in adopting product and process innovations.     

External sources for innovation in public organisations

This article's objective is twofold: First, to provide a framework for understanding the role of external information sources in service innovation, with particular attention to innovation in public organisations. The second part of the article's objective is to test the proposed framework. Method of analysis is based on data at European level from the 2010 Innobarometer Survey on Public Innovation. Data is used for estimating a bivariate probit with sample selection, where the selection variable indicates whether or not organisations have recently implemented service innovations and the estimated variable indicates whether organisations have introduced services that are new to the whole public sector. Results indicate a significant relation between the use of both internal and external sources of information and the implementation of innovations by public organisations. External sources are shown to be more relevant for the implementation of services that are new to the public sector.     

Managing retention

To build this process it is necessary to consult customers for preferences, build familiarity and knowledge to build a relationship and conduct business in a customized fashion. The process takes every opportunity to build customer satisfaction with each customer contact. It is an important process to have, since customers today are more demanding, sophisticated, educated and comfortable speaking to the company as an equal (Belk, 2003). Customers have more customized expectations so they want to be reached as individuals (Raymond and Tanner, 1994). Also, a disproportionate search for new business is costly. The cost to cultivate new customers is more than maintaining existing customers (Cathcart, 1990). Other reasons that customer retention is necessary is because many unhappy customers will never buy again from a company that dissatisfied them and they will communicate their displeasure to other people. These dissatisfied customers may not even convey their displeasure but without saying anything just stop doing business with that company, which may keep them unaware for some time that there is any problem (Cathcart, 1990).     

Knowledge of Inter-customer Relations as a Source of Value Creation and Commitment in Financial Service Firm's Intermediation

This paper develops a knowledge perspective on value creation in organisations that employ mediating technology to facilitate inter-customer relations. Mediators, individually and collectively, build networks of customers between whom linking can take place, and they provide services that facilitate inter-customer exchanges. Earlier research has shown the importance of size and standardisation in mediation. A different stream of research has shown that contextual knowledge is important for problem solving and innovation in organisations. Combining theories of mediating technology and situated problem solving, the paper posits that inter-customer relations constitute the fundamental context for value creation of firms using the mediating technology. LISREL is used to test relationship-level, cross-sectional hypotheses that link knowledge of inter-customer relationships, added value, and customer commitment to bank services for small firms. This work extends Thompson's work on mediating technology with implications for organisation action by demonstrating that mediators' knowledge of inter-customer relationships is an important resource in intermediation. Three contributions are made to strategic management and organisation theory. First, the paper provides a deeper understanding of the relationship between knowledge and committed customers. Second, fundamental resources are developed for firms using mediating technology. Finally, the use of the situated knowledge concept is extended to inter-customer relations, thus explaining performance beyond the contexts to which the concept has previously been applied. The findings have implications for segmentation practices, organisation domain decisions and the corresponding organisational structures, and practices that can provide effective service to inter-customer relations rather than to atomistic independent customers.     

Discussion of “Recognizing Ethical Issues: An Examination of Practicing Industry Accountants and Accounting Students”

Although the political and consumer consciousness has turned increasingly green, many firms continue to resist the adoption of environment-friendly technological innovations—even in the face of higher costs, negative health effects, and stricter government oversight. This article examines how business owners weigh the trade-offs associated with environment-friendly innovations by examining the role of prosocial motivation in their decision-making process. We use primary data to overcome a common restriction in studying environmental innovations—the scarcity of relevant data—to analyze how business owners’ expectations, perceptions, and motivations affect innovation in organizational processes and, consequently, the level of environmental friendliness of their products or services. We found that prosocial motivation had a significant negative impact on innovation adoption and that it is expressed differently under high and low levels of customer compatibility—possibly because business owners have a larger number of competing social objectives and priorities. Our results further showed that the innovation’s ability to satisfy downstream customer demands has the greatest impact on environment-friendly innovation adoption decisions by business owners. This study enhances our understanding of how business owners make innovation decisions based on competing business, environmental and social objectives and provides a foundation for future research in this area.     

我国通信业客户忠诚驱动因素研究

客户忠诚指客户行为的持续性,它对确立企业的核心竞争力具有重要影响。文章认为,客户忠诚是内外部环境因素共同作用的结果。而通讯服务质量、信任、转网成本、员工忠诚是影响通讯业客户忠诚的重要因素。其中,良好的通讯服务质量是维系客户忠诚的保障;信任是客户再购买行为产生的前提;转网成本对通讯业客户忠诚有着不可忽视的影响;员工忠诚有助于客户忠诚的建立。我国通讯运营商要建立客户忠诚,必须以客户导向的营销理念作为企业经营管理的主导思想;加强技术创新,为客户提供全方位的优质服务;与客户之间建立相互信任的合作关系,为长远合作奠定基础;提高转网成本和员工忠诚度,为建立客户忠诚打下坚实的内部基础。     

大型零售商场顾客忠诚驱动因素实证分析——以杭州市为例

制定与实施顾客忠诚管理策略,为顾客提供综合性、差异化的服务,履行高度的顾客承诺,是大型商场保持与顾客长期、双向互动关系的重要保障。本文以规范分析和实证研究相结合的方法分析顾客忠诚的影响因素,构建大型商场顾客忠诚的基本驱动因素模型,选取杭州四大商场为数据采集对象,实证检验各种影响因素对大型商场顾客忠诚的影响,并提出了提高大型商场顾客忠诚度的相应策略。     

Customer defection due to service elimination and post-elimination customer behavior: An empirical investigation in telecommunications

Service industries require rapid innovations in their service portfolios to gain and maintain competitive advantages. Service elimination is a potential tool for portfolio renewal, though it might threaten increased defection rates. To contribute to both service elimination and customer defection literature, this paper proposes a model of customer responses to service elimination, with practical implications for decision-makers in rapidly innovating telecommunication markets.In particular, the main study, conducted in the context of Hungary’s telecommunications sector, reveals that customers’ tenure, usage intensity, and age reduce the negative effects of a price increase on their defection; the price increase, degree to which customers interact with service providers, customer defection, and competitive effects in turn increase post–service elimination usage intensity.These findings suggest implementation strategies that can reduce customer defection following price increase due to service elimination, by focusing on new customers, light users, and the quality of customer interactions.     

餐饮企业客户关系管理研究

客户是餐饮企业生存与发展的基础,客户关系管理可以提高餐饮企业的顾客忠诚度。当前,餐饮业客户关系管理还存在着对客户关系管理重视不够,对客户的服务意识不到位,吸引客户的营销手段单调,企业内部组织结构不完善,对企业的价值顾客群判断不准等问题。餐饮企业应利用CRM管理系统,了解顾客,并建立良好客户关系;加强员工培训,提升员工的服务素质;制定合理的价格,维系客户永久关系;树立顾客成本概念,通过提高客户满意度和忠诚度,达到提升客户价值和提升品牌形象的目的,从而实现企业利润最大化。