The Breakfast of Champions: Associations Between Champions and Product Development Environments, Practices and Performance

According to conventional wisdom, if an innovative new product development (NPD) effort is to stand any chance for success, the project must have a champion. The role of the champion has taken on almost mythic proportions, through oft-told tales of the development of such disparate products as instant cameras, automobiles, and microprocessors. Notwithstanding the purportedly essential role that champions play, however, we have only anecdotal evidence of the manner in which effective champions operate and the benefits that they offer. Stephen K. Markham and Abbie Griffin suggest that before we can explore questions about how champions affect product development performance, we must address an even more fundamental issue: whether champions actually influence performance. Using data from the 1995 PDMA study of best practices in product development, they test various widely held assumptions about champions and NDP performance. Specifically, they investigate the association between championing and the following variables: NPD performance at the program, firm, and project levels; industry characteristics; and project- and firm-related NPD characteristics. In several respects, the results of their study run counter to current beliefs about product development champions. For example, the study suggests that champions are just as likely to be found in large firms as they are in small firms. Similarly, the results indicate that the likelihood of finding a champion does not differ significantly between technology-driven firms and marketing-driven firms. For the firms in this study, champions are no more likely to support radical innovations than they are to back incremental innovations or product line extensions. The results of the study suggest that champions do not directly affect firm-level NPD performance. Instead, the results of this study associate increased championing with higher levels of NPD program performance, which positively affects firm-level performance. The results of this study also do not support the notion that a champion can directly improve the market success of a particular project.     

Role of quality management capabilities in developing market-based organisational learning capabilities: Case study evidence from four Indian business process outsourcing firms

Business-to-business marketing literature acknowledges the value firms, including business process outsourcing firms, realise through their supplier networks. Such value realisation is often possible through a dynamic exchange of complementary organisational capabilities between a firm and its network partners. However, little is known about how outsourcing firms develop these capabilities and thus realise value. This paper addresses an unexplored theoretical gap of developing market-based organisational learning capabilities in business process outsourcing firms. Using a capabilities lens, this study assesses the impact of quality management capabilities in developing market-based organisational learning capability. Findings from a case study of four business process outsourcing firms in India suggest that effective knowledge transfer, diffusion and the development of market-based organisational learning capabilities are contingent upon the strength of a firm's quality management capabilities. Implications for theory and practice are discussed.     

The impact of entrepreneurial orientation on B2B branding and business growth in emerging markets

This study examines the relation between entrepreneurial orientation and brand orientation in industrial small and medium-sized enterprises (SMEs) and the extent to which the two contribute to business growth in emerging markets. The authors develop and empirically test a structural model using data collected from Hungary, a country that has undergone a political and economic transition during the past two decades since the fall of the iron curtain. The results show that entrepreneurial orientation has a positive effect on business growth in emerging markets, whereas brand orientation has an adverse effect. Furthermore, the study examines whether there are differences (1) between B2B firms and B2C firms operating in emerging markets and (2) between B2B firms operating in emerging markets (Hungary) and in developed markets (Finland). The results from comparative analyses suggest that while B2B firms and B2C firms do not differ significantly from each other, there are notable differences between emerging markets and developed markets. Specifically, the study finds that although brand orientation does not contribute to business growth in Hungarian B2B firms, it has a positive effect on growth in B2B firms operating in Finland.     

Commercial exploitation of new technologies arising from university research: start-ups and markets for technology

The creation of start-up firms is an important method of commercializing new technologies arising from R&D at universities and other research institutions. Most research into start-ups presumes that these firms develop products or services. However, start-ups may operate through markets for technology by selling or licensing rights to use their technology to other firms – typically established firms – who develop and sell new products or services based on the technology. In this study of 57 public start-up firms created to commercialize the results of university research, we find evidence that (1) operating through markets for technology is a common approach to commercialization, (2) start-ups that operate in markets for technology can be effectively distinguished in practice from start-ups operating through product markets, and (3) there are substantive differences in the business activities of firms depending on whether they operate through product markets or markets for technology.     

Value propositions as market-shaping devices: A qualitative comparative analysis

Forward-looking firms are increasingly viewing markets as malleable and plastic systems that can be influenced. Hence, they are engaging in market-shaping to proactively augment existing business opportunities or to create new ones. One of the recurring themes in the emerging market-shaping literature is the importance of value propositions. Consequently, the purpose of this paper is to identify configurations of value proposition characteristics that are effective for focal firms engaging in market-shaping strategies. In our empirical study, we analyze market-shaping actions carried out by 21 case firms using fuzzy-set qualitative comparative analysis. We identify four characteristics of market-shaping value propositions: (1) enhanced resource integration and related support as the core content of market-shaping value propositions, and (2) collaborative value proposing process, (3) systemic and verified value promise, and (4) new representations used in communication as the design characteristics of market-shaping value propositions. Further, we show that even though value propositions can shape markets without displaying all four of these characteristics, none of these characteristics alone can create all the expected outcomes. Hence, we identify distinct configurations of value proposition characteristics that are successful in either changing the elements comprising the market system or inducing an overall system-level market change.     

CRM systems and organizational learning: An exploration of the relationship between CRM effectiveness and the customer information orientation of the firm in industrial markets

The firm's customer relationship management (CRM) system is frequently a central element of the knowledge management function of the firm. It integrates information from internal and external sources to guide managers and field personnel in the development and presentation of the firm's value proposition. But despite the widespread adoption of CRM systems by firms operating in business-to-business markets, there is continued management skepticism concerning the effectiveness of these systems and their association with the firm's overall “customer information orientation.” The present study seeks to shed light on these topics by evaluating the relationship between the customer relationship orientation of the firm and its use of CRM, as well as the association of CRM use with overall firm performance in B-to-B settings across a range of traditional business performance measures. The authors employ a multi-method approach to determine the key variables, including: database currency, internal database utilization, database accuracy and performance based reward systems utilized to operationalize the construct “the firm's customer information orientation” in order to develop statistical measures of the relationships of selected variables. The results of the study provide support for the finding that customer information orientation is indeed associated with CRM system implementation and that CRM use is associated with firm performance in B-to-B markets.     

Selling Value in Business Markets: Individual and Organizational Factors for Turning the Idea into Action

Modern business-to-business firms focus increasingly on understanding and selling value, as a strategic priority and to achieve marketing and sales excellence. Yet many companies struggle to implement their value orientation, without sufficient knowledge of how to translate it into sales practice. This study therefore examines value-based selling (VBS) as an implementation of value-based marketing at the sales force level. The proposed motivation–opportunity–ability framework integrates individual- and organizational-level antecedents, outcomes, and moderators in an attempt to explain the adoption and performance outcomes of VBS in business markets. Multilevel path modeling with cross-sectional survey data from 944 salespeople and managers in 43 sales organizations confirms the prediction that VBS enhances salespeople's performance, beyond that achieved with established selling approaches. However, firms need specific types of salespeople and dedicated organizational support for effective VBS implementation. A salesperson's learning orientation and networking competencies emerge as critical antecedents. Organizational value assessment tools can compensate for individual salespeople's lack of learning orientation; reference marketing efforts also strengthen the performance outcomes of VBS. Finally, VBS is most effective in organizational settings where perceived customers value demandingness is lower, enabling salespeople to use VBS as a proactive selling approach.     

The influence of brand image and company reputation where manufacturers market to small firms: A customer value perspective

Branding research has largely focused on consumer goods markets and only recently has attention been given to business markets. In many business markets the company's reputation has a strong influence on buying decisions which may differ from the more specific product related influence of the brand's image. In this paper we investigate these differences by testing the hypotheses about the influences of brand image and company reputation on customers' perceptions of product and service quality, customer value, and customer loyalty in a business market where there are three manufacturers marketing their brands directly to a large number of small firms. The results indicate that the brand's image has a more specific influence on the customers' perceptions of product and service quality while the company's reputation has a broader influence on perceptions of customer value and customer loyalty.     

Outward-looking and future-oriented customer value potential management: The sales force value appropriation role

The management of customer relationships based on customers’ value to the selling firm has been a central topic in marketing research for decades. Yet, extant research has devoted only scant attention to the management of customer future value potential, focusing mostly on advanced statistical modeling based on firm-internal and historical data, which often lacks relevance in B-to-B settings. We employ a longitudinal intervention study, rooted in a constructive research approach, to assess the relevance of a novel customer value potential management model in business markets. The results, based on realized sales and customer portfolio dynamics, demonstrate that a firm can effectively manage customer value potential by adopting a non-statistical, sales force-driven analysis perspective. Further, the study presents evidence for the effectiveness of combinative outward-looking and future-oriented value potential criteria in value potential analysis. Finally, the findings demonstrate how a supplier can proactively manage customer portfolio dynamics in the long run by systematically enhancing its competitive position and capitalizing on customers’ organic growth at individual customer account level, through the interplay of organizational value management and sales force value appropriation efforts.     

Customer referencing as business actor engagement behavior – Creating value in and beyond triadic settings

The rising impact of customer engagement is increasingly evident in business markets. This paper studies customer referencing as an important manifestation of engagement behavior in the business-to-business (B2B) context. To extend extant research, which has thus far examined referencing almost exclusively from the seller's viewpoint, we study how referencing affects value creation in business networks. We explore resources contributed and gained though referencing and the resulting value outcomes for the entire reference triad (the seller, the reference customer, and the prospective buyer). Empirically, the paper draws on an extensive field study conducted in knowledge-intensive business service industries. The results explicate how customer referencing affects value creation within and beyond the triad, by i) enhancing or impairing actors' internal processes; ii) strengthening or damaging relationships between the triad actors; and iii) facilitating exchange in their broader business network. The paper contributes to research on customer referencing by explicating its role in value creation on a network level. As one of the first studies on engagement in the B2B context, this paper contributes to the emerging actor engagement research by analyzing how influencing behavior operates in a business network. These insights can help firms to facilitate exchange in complex markets.     

Investigating the implications of business and culture on the behaviour of customers of international firms

For many years international firms have been leveraging from the consistent growth rate of the Indian economy and, considering forecasts, will continue to do so in the future. This study identifies factors that influence the behaviour of business customers of international firms in emerging markets such as India. Based on the extant literature and in-depth personal interviews with practitioners, combined with a field survey, the authors have tried to understand the impact these factors have on the behaviour of business customers of international firms. The data were useful for testing the model developed using regression analysis and were found to be significant. The model demonstrates that the behaviour of local firms as customers of international firms in emerging markets is governed by factors such as business risk and a propensity to business sustainability. The model will be useful for international firms who wish to operate in emerging markets through local business firms that seek to associate with international firms.     

Institutions and business networks: A comparative analysis of the Chinese, Russian, and West European markets

The paper analyses business networks originating from three markets: Chinese, Russian, and West European. So far, little attention has been given to the fact that business networks in particular markets may be dissimilar because of differences among institutions. The paper advances a model where institutions are assumed to influence five major characteristics of business; (1) the processual aspects of the network, (2) the structural aspects of the network, (3) the function of firms and relationships in the network, (4) the meaning of strategy and planning, and (5) social relationships in the context of inter-firm relationships. The analysis builds on three types of substances of institutions — cognitive, normative, and regulative, which in turn are specified according to different aspects. The cognitive substance of business networks is explored through the aspects of self, time, and causality. The normative substance is explored through the aspects of achieved versus ascribed status, inner versus outer direction, universalism versus particularism, and trust. The regulative substance is specified as an authority system and a sanction system. The analysis demonstrates that, as institutions differ in these three markets, the business among them also differs in terms of the five characteristics, and this variation calls for different strategies for firms operating in these markets.     

The Importance of Social Capital to the Management of Multinational Enterprises: Relational Networks Among Asian and Western Firms

Social capital is an important concept for multinational firms. Firms operating in global markets rarely have adequate resources to compete effectively in global markets; they access the needed resources through formal and informal relationships with other firms. The cultures in Asian countries have emphasized relationships much more strongly than Western firms. Thus, relational capital, based on guanxi (China), kankei (Japan) and inmak (Korea), provides the framework for business dealings in many Asian countries. As a result, the social capital of many Asian firms gives them a potential competitive advantage in global markets. Western firms must develop social capital and learn to manage relational networks to gain and sustain a competitive advantage in global markets. Western firms can learn how to develop and manage social capital from Asian firms. Alternatively, social capital has some disadvantages. Firms are limited by their networks and thus experience opportunity costs and path dependence. Additionally, while Asian firms often have strong network ties in their domestic markets, they have to develop many more ties globally to operate effectively in global markets. As a result, the development and management of social capital has become of critical importance for competitive advantage in global markets.     

New Product Portfolio Management: Practices and Performance

Effective portfolio management is vital to successful product innovation. Portfolio management is about making strategic choices—which markets, products, and technologies our business will invest in. It is about resource allocation—how you will spend your scarce engineering, R&D, and marketing resources. It focuses on project selection—on which new product or development projects you choose from the many opportunities you face. And it deals with balance—having the right balance between numbers of projects you do and the resources or capabilities you have available. In this article, the authors reveal the findings of their extensive study of portfolio management in industry. This study, the first of its kind, reports the portfolio management practices and performance of 205 U.S. companies. Its overall objective was to gain insights into what portfolio methods companies use, whether they are satisfied with them, the performance results they achieve with the different approaches, and suggestions for others who are considering implementing portfolio management. The research first assesses management's satisfaction with portfolio methods they employ and notes that some firms face major problems in portfolio management. Next, businesses are grouped or clustered into four groups according to management's view of portfolio management: Cowboys, Crossroads, Duds, and Benchmark businesses. The research first assesses management's satisfaction with portfolio methods they employ and notes that some firms face major problems in portfolio management. Next, businesses are grouped or clustered into four groups according to management's view of portfolio management: Cowboys, Crossroads, Duds, and Benchmark businesses. Various performance metrics are used to gauge the performance of the business's portfolio. The results reveal major differences between the best and the worst. Benchmark businesses are the top performers. Their new product portfolios consistently score the best in terms of performance—high-value projects, aligned with the business's strategy, the right balance of projects, and the right number of projects. The authors take a closer look at these benchmark businesses to determine what distinguishes their projects from the rest. Benchmark businesses employ a much more formal, explicit method to managing their portfolio of projects. They rely on clear, well-defined portfolio procedures, they consistently apply their portfolio method to all projects, and management buys into the approach. The relative popularity of various portfolio methods—from financial methods to strategic approaches, bubble diagrams, and scoring approaches—are investigated. Not surprisingly, financial approaches are the most popular and dominate the portfolio decision. But what is surprising is the dubious results achieved via financial approaches. Again, benchmark businesses stand out from the rest: they place less emphasis on financial approaches and more on strategic methods, and they tend to use multiple methods more so than the rest. Strategic methods, along with scoring approaches, yield the best portfolios; financial methods yield poorer portfolio results. The authors provide a number of recommendations and suggestions for anyone setting out to implement portfolio management in their business.     

Does salesperson's customer orientation create value in B2B relationships? Empirical evidence from India

Although value creation in business relationships has taken an important position in the literature, yet scant attention has been paid to the precise nature of creation or destruction of value in b2b customer-oriented selling. Moreover, very few empirical studies in the b2b customer value research have focused on emerging markets, especially the BRIC countries. This study carried out in the context of small and medium sized firms in India, empirically examines from the SOCO perspective (Saxe and Weitz, 1982), value creation in customer-oriented selling, and value destruction in sales-oriented strategies. We model value creation, relationship development, and customer satisfaction as direct and indirect consequences of salesperson's customer orientation. Based on a sample of 249 small and medium sized Indian firms, we show that salesperson's customer orientation directly leads to value creation and relationship development with customers. On the other hand, a sales orientation destroys value, although it may lead to relationship development in the short-term. We also found that customer satisfaction was unrelated to both types of salesperson's orientations. Our study has considerable impact for small and medium sized businesses in emerging BRIC markets such as India, as it throws light on how supplier firms can leverage their salesforce to create value creation with their customers.     

The role of corporate image in business-to-business export ventures: A resource-based approach

Although a growing body of studies suggests that good corporate images have strategic value for the firms that possess them, no research to date has looked at the role of corporate image in export markets. To fill this gap in the extant literature, this study draws on the resource-based view and insights from qualitative interviews to develop a model that links an exporter's financial resources and relationship management capabilities with its corporate image advantage and its performance in the export market. Findings reveal that both financial resources and relationship management capabilities are significant contributors of corporate image advantage, which, in turn, is an important determinant of superior export performance. The study concludes with a discussion of the implications of the findings for marketing theory and practice and suggestions for future research.     

Is advertising an underappreciated driver of sales growth in B2B markets? Theoretical perspectives and empirical evidence

While firms in consumer markets spend hundreds of billions of dollars on advertising each year, firms in business markets are comparably hesitant to adopt advertising as a means to drive business and generate sales growth. Instead, a widespread belief is that sales success in business markets results from a quality focus and sales force support. Challenging these beliefs, this study proposes that B2B advertising can have effects that are meaningful and unmatched by effects resulting from a quality focus and sales force spending. Furthermore, we hypothesize that B2B advertising can help unlock dormant potentials in the established success drivers. We test the proposed effects empirically, drawing on more than 12,000 observations of the advertising expenses, quality focus, sales force spending, and sales growth of more than 2000 U.S.-based B2B firms between 1990 and 2015. This research provides novel insights for researchers and managers concerning the benefits of B2B advertising spending and the interplay between different success drivers in generating sales growth in business markets.     

Building the BoP Producer Ecosystem: The Evolving Engagement of Fabindia with Indian Handloom Artisans

Recent research on the base of the pyramid (BoP) has called on firms to initiate market‐driven interventions directed at the BoP population with the objective of identifying and pursuing mutually profitable means of attaining meaningful poverty alleviation outcomes. In response, firms as well as scholars have engaged at length with the creation of new products and services for the BoP consumer but paid far less attention to the BoP producer—a member of the BoP population who creates value by producing goods and services for sale in nonlocal markets. Additionally, extant studies have largely focused on snapshot views of BoP interventions by firms, thereby limiting our understanding of the emergence of meaningful poverty‐alleviating outcomes over time from these interventions. This paper seeks to redirect attention toward the dynamic of the long‐term engagement between the firm and the BoP producer. Using rich qualitative data from Fabindia—an Indian handloom retailer—this paper examines how the engagement between Fabindia and communities of handloom artisans in India has persisted over a period of five decades. We found that, even as it encountered changes in the external environment and pursued newer organizational goals, Fabindia repeatedly renewed its engagement with handloom artisans and facilitated progression in poverty‐alleviation outcomes. Building on the insights from the case study, this paper presents a process model that highlights the role of innovative management practices in sustaining engagements between firms and BoP producers over time. Additionally, this paper proposes the concept of the “bridging enterprise”—a business enterprise that originates at the intersection of specific BoP communities and the corresponding nonlocal markets—as an interpreter and innovator reconciling the interests of stakeholders across the pyramid.     

The business model in entrepreneurial marketing: A communication perspective on business angels' opportunity interpretation

Entrepreneurial marketing has emerged as a recent perspective within the marketing field, taking the challenges and characteristics of small firms and founding teams into account. Specifically, in the early stages of entrepreneurial marketing, besides potential customers a variety of other stakeholders tend to be in the center of attention. Among these stakeholders, business angels as early-stage investors represent a vital target group. In this paper, we aim to shed light on entrepreneurial marketing in the early phases of new venture creation, in which entrepreneurial firms have an inherent need to market the value of a business opportunity toward potential investors. In particular, we contribute to the literature by introducing the business model as a narrative device for the marketing of early-stage new ventures toward potential business angels. In this regard, the business model is suggested as playing a critical role through making the inherent economic value of a technology explicit. Building on narrative theory, we investigate the role that the business model plays in the decision-making process of 17 business angels. Based on our findings, we propose a model that links the business model to a business angel's interpretation of an investment opportunity and discuss implications for theory and practice.     

Business groups and corporate transparency in emerging markets: Empirical evidence from India

This study examines the difference in corporate transparency of firms affiliated with business groups and unaffiliated firms in India. Based on previous studies we measured corporate transparency using equity analysts’ forecast error and dispersion. We find that firms affiliated with business groups are less transparent than unaffiliated firms. Lack of transparency leads to higher analyst forecast error and dispersion. This study also finds that business group-affiliated firms with more intra-group capital transactions have higher forecast error and dispersion. The findings of this study suggest that firms affiliated with business groups are less transparent due to their reliance on internal capital markets, and therefore lack incentives to disclose information to market participants. As a result, the information asymmetry between business groups and the capital market is higher, restricting the activities of information intermediaries such as equity analysts, who play an important role in the external capital market.