Marketing capabilities and innovation-based strategies for environmental sustainability: An exploratory investigation of B2B firms

While emerging literature on sustainability shows that environmentally responsible strategies can contribute to competitive advantage and enhanced financial performance, little is known about specific marketing capabilities that lead to sustainable consumption behavior, and whether implementing such strategies leads to firm competitive advantage. Using the case method approach, this study explores marketing-related strategies and practices pertaining to sustainable consumption as reported by leading sustainable firms in the B2B context. We examine case studies of forty seven B2B firms and identify key marketing capabilities that tie to innovation-based sustainability strategies, sustainable consumption behavior and firm performance. We use our findings to develop a conceptual framework linking marketing capabilities to innovation strategies for firm sustainability, sustainable consumption behavior and firm competitive advantage, and put forward propositions for future research.     

How does customer orientation (in)congruence affect B2B electronic commerce platform firms' performance?

Business-to-business (B2B) electronic platforms have become important channels for transforming traditional modes of transaction. The success of these platforms relies heavily on the platform firms' customer orientation (CO) practices, which are designed to attract both sellers and buyers. This study draws on the cross network effect theory to explore whether and how a B2B e-commerce platform firm's (in)congruent CO strategic initiatives toward sellers or buyers affect the firm's performance. In addition, the moderating effects of seller-side and buyer-side demand uncertainty on the relationship between CO (in)congruence and platform firm performance are investigated. The analysis of data collected from 185 B2B electronic platform firms in China reveals that CO incongruence is more beneficial to firm performance than CO congruence. Furthermore, when seller-side demand uncertainty is high, an increase in seller-focused CO incongruence (i.e., higher seller orientation than buyer orientation) or buyer-focused CO incongruence (i.e., lower seller orientation than buyer orientation) improves or impedes a B2B e-commerce platform firm's performance, respectively. However, when buyer-side demand uncertainty is high, an increase in either type of CO incongruence does not improve firm performance. These findings contribute to the literature on and practices of B2B e-commerce and customer orientation.     

Strengthening B2B brands by signalling environmental sustainability and managing customer relationships

Resource depletion and environmental pollution concerns are forcing manufacturers to pay greater attention to environmental sustainability. This is especially so for business-to-business (B2B) manufacturing firms who intensively use natural resources in their operations and are blamed for observable impacts on the environment. Despite investments in environmental sustainability practices by B2B manufacturers, studies provide little explanation about the extent B2B manufacturers obtain a positive brand image and superior market performance through environmental sustainability. Furthermore, research has not identified organisational practices that strengthen the path from environmental sustainability to market performance. Drawing on signalling theory, the customer relationship management (CRM) literature, attitude theory, and data collected from B2B manufacturers and their customers, we show that environmental sustainability practices provide positive benefits to B2B manufacturers' brand image, which, in turn, impacts market performance. Further, effective CRM and working with business customers with positive environmental attitudes are essential boundary conditions that strengthen the path from environmental sustainability practices to market performance.     

“Green” supply chain management: The role of trust and top management in B2B and B2C markets

“Green” supply chain management (GSCM) has often been associated with highly visible companies (Bowen, 2000) and firms within consumer-focused industries (Buysse & Verbeke, 2003; Hall, 2000; Roht-Arriaza, 1996). As such, GSCM has partly been led by development of consumer awareness of environmental issues (Beamon, 1999; Zhu et al., 2005). This suggest that firms operating in business-to-consumer (B2C) markets have strong incentives to implement GSCM, due to both institutional and stakeholder pressure. However, this leaves the role of GSCM in business-to-business (B2B) sectors relatively unexplored and to-date little is known about: 1) the relative engagement with GSCM among firms in business-to-consumer and business-to-business sectors; 2) the conditions that are necessary for successful implementation of “green” practices in B2B supply chains. This study addresses these issues within the context of 340 buyer–supplier relationships in the United Kingdom, using an innovative research methodology that captures firms' engagement with GSCM practices and minimizes social desirability and common source biases. Our results show that GSCM is relatively limited among firms in B2B markets compared to firms in B2C markets. At the same time, we show that developing trust with supply chain partners, while also having top management support, is a crucial driver of engagement with GSCM among firms in B2B sector but less important among firms in B2C sector. These findings provide considerable insights to managers and marketers of B2B supply chains that seek to respond to a growing interest of environmental performance of supply chain.     

Marketing capabilities: Antecedents and implications for B2B SME performance

The study provides a new perspective on SME marketing strategies in the B2B context. Using a resource-based view of the firm, the study develops a structural model linking marketing capabilities and marketing performance. A study of 367 SME Australian firms reveals that two key marketing capabilities, namely branding and innovation, have major performance outcomes in the SME B2B context. This is the first SME study to evaluate concurrently the contribution of innovation and branding marketing capabilities, with innovation capability the strongest determinant of SME performance. The study also finds market orientation and management capability act as enabling mechanisms for building marketing capabilities. Disaggregation tests indicate that the same findings apply to three size categories denoting micro firms (less than 20 staff), small firms (20-99 staff) and medium-sized firms (100-499 staff).     

Market microstructure in a global B2B network

On‐line marketplaces raise several interesting issues, among them the relevance of location when content is digitized, and the assessment of a supplier's capabilities when buyers worldwide only have electronic contact with sellers. In global B2B on‐line marketplaces, market microstructures, i.e. which firms compete for the same customers, are thus likely to be influenced by how customers value location and firm capabilities in their decisions to do business with different suppliers on‐line. We suggest that both these sets of attributes will continue to matter on‐line—firms possessing similar capabilities, as well as firms that are similar in location by country, time zones or clusters, will compete for business from the same customers. We model the similarity in competitive positions between pairs of firms based on the overlap in their customer networks, using data on actual interactions between supplier and customer banks on an electronic trading system. Using QAP network regression techniques on the 100 largest banks in this industry, we find that similarity in capabilities influences who competes with whom, and that location still matters in a global B2B exchange. Interestingly, location influences who a firm's competitors are, but not where its customers are from. Copyright © 2001 John Wiley & Sons, Ltd.     

Positioning through B2B carrier signals: Understanding how service quality is communicated via websites

Today's marketplace requires B2B motor carriers to connect with shippers in salient ways. To accomplish this, B2B carriers communicate signals of service quality in order to position themselves uniquely from the competition. Signaling theory describes how inequity in information between parties is filled by sending signals to convey missing information (Spence, 1973). Signaling theory was used as a foundation to investigate information used by B2B carriers to signal service quality and create positioning strategies. Results of a content analysis of 490 B2B motor carrier websites for signals of 12 dimensions of service quality are used to develop a typology of U.S. B2B motor carriers. These are: Minimalist, User-Friendly, and Safety First. Associations with firm revenues, firm size, credit score, and number of NAICS codes used are discussed along with implications.     

Stakeholder influences on sustainability practices in the Canadian forest products industry

We examined how managers' perceptions of different types of stakeholder influences in the Canadian forestry industry affect the types of sustainability practices that their firms adopt. Both influences involving withholding of resources by social and ecological stakeholders and those involving directed usage of resources from economic stakeholders were found to drive such practices. We found that the industry and its stakeholders have moved beyond a focus on early stages of sustainability performance such as pollution control and eco‐efficiency. However, more advanced practices, such as those involving the redefinition of business and industrial ecosystems where firms locate in a region so that they can exchange and utilize wastes generated by other firms, are in their infancy. Stakeholders and firms in the industry are focused on the intermediate sustainability phases involving recirculation of materials and redesign of processes including sustainable harvesting of lumber. Copyright © 2004 John Wiley & Sons, Ltd.     

Individual antecedents to consumer intention to switch to food waste bioplastic products: A configuration analysis

Food waste management remains a significant economic and sustainability problem and is being actively addressed by scholars, governments, and organizations around the world. Bioplastics, which are biodegradable plastics derived from food waste, are a recent innovation that might contribute to managing this waste in a more sustainable manner. Unfortunately, many of today's consumers are not necessarily ready to consider such alternatives. Consumer switching to sustainable products is a tenuous topic, as consumers often value other product attributes (i.e., cost, quality, and associated prestige) more than their sustainability attributes (i.e., fewer natural resources expended, lower carbon footprints, and end-of-life recoverability). A greater understanding of consumers' intention to switch to bioplastic products provides opportunities for firms to develop state-of-the-art, profitable, and sustainable food systems. Considering the complex set of inter-relationships surrounding consumer involvement in sustainable innovations and associated supply chain strategy, this research leverages complexity theory and a qualitative comparative analysis research approach to uncover eight different, yet equifinal, configurations of antecedents that motivate consumer intention to switch from new plastic products to equivalent products made from bioplastics.     

NGOs and the creation of value in supply chains

Research Summary: Firms and nongovernmental organizations (NGOs) often collaborate to establish new supply chains. With a formal model, we analyze how NGOs can alleviate market failures and improve supplier economic inclusion while strategically interacting with firms. We account for the specific goals of the NGO and the need to induce collaboration between firms and their suppliers. The analysis reveals a “valley of frustration,” when NGO efforts benefit all actors but only marginally the firm. We also show that more powerful firms might prefer to internalize NGO functions, while firms with lower bargaining power and higher investment requirements are better off collaborating with NGOs. Finally, we study NGOs-firms matching patterns and find that firms with higher bargaining power match with NGOs holding stronger capabilities. Managerial Summary: This article analyzes interactions between firms and nongovernmental organizations (NGOs) aiming to improve the economic inclusion of suppliers or to promote the adoption of specific (e.g., sustainable) practices. For firm executives, this study shows the constraints and benefits associated with working with NGOs, the conditions under which integration of NGO functions is preferable as well as the types of NGOs that offer better prospects for a successful collaboration. For NGO executives, it highlights the need to provide enough economic incentives to firms and suppliers alike to ensure their collaboration and the trade-offs associated with this constraint, in particular, if NGO capabilities are limited. Overall, the study provides a comprehensive understanding of how NGO activities can influence value creation in a vertical value chain.     

When does guanxi bolster or damage firm profitability? The contingent effects of firm- and market-level characteristics

This paper advances that a nuanced approach is necessary to understand the effectiveness of managerial ties (guanxi) in improving firms' financial performance. We take a contingency approach to examine how the effects of managerial ties on performance may be moderated by firm-level factors (i.e., firm age and entrepreneurial orientation) and market-based forces (i.e., demand uncertainty and technological turbulence). Using a survey of 289 firms in China, we find that managerial ties are more salient with regard to enhancing performance for more entrepreneurial-oriented and younger firms. Managerial ties fail to provide performance benefits to firms when high demand uncertainty exists or when the level of technological turbulence is high, which suggests a performance limitation of established ties with government officials, buyers, suppliers, and competitors. The theoretical and managerial implications of the findings are further discussed.     

The relationship between innovation culture and innovation outcomes: exploring the effects of sustainability orientation and firm size

Being sustainability‐oriented has become a key strategy for many firms. Equally, innovation culture and innovation outcomes have long been recognized as important contributors to the growth of firms. However, the literature on sustainability and innovation provides limited understanding of the important relationship between sustainability orientation, innovation culture and innovation outcomes. Given that large firms and small firms differ in building and employing their strategic assets, firm size matters in understanding the relationship. Through the lens of resource‐based view, we develop a theoretical model embedding the four components and test it using data from a global survey: the 2012 Comparative Performance Assessment Study. Our research contributes to sustainability literature and innovation theory by providing an integrated framework to explicate the mechanism through which the innovation culture of the firm impacts on innovative performance through the sustainability orientation of the firm. The findings advance our understanding of the extent to which sustainable orientation can explain the relationship between innovation culture and innovation outcomes. Our evidence shows that the innovation culture of a firm facilitates the sustainability orientation of the firm and that the converse also applies. The research also contributes to our knowledge of the differences between large and small firms in leveraging their strategic assets in terms of innovation culture and sustainability orientation to facilitate superior innovation outcomes. Although firm size moderates the relationship between innovation culture and innovation outcomes, the research shows that this no longer holds when sustainability orientation is included in the relationship. A strong sustainability orientation can be a competitive advantage for firms in the R&D Management delivery of superior innovation outcomes.     

The long‐term benefits of organizational resilience through sustainable business practices

Research summary : Prior work on the benefits of business sustainability often applies short‐term causal logic and data analysis. In this article, we argue that the social and the environmental practices (SEPs) associated with business sustainability not only contribute to short‐term outcomes, but also to organizational resilience, which we define as the firm's ability to sense and correct maladaptive tendencies and cope positively with unexpected situations. Because organizational resilience is a latent, path‐dependent construct, we assess it through the long‐term outcomes, including improved financial volatility, sales growth, and survival rates. We tested these hypotheses with data from 121 U.S.‐based matched‐pairs (242 individual firms) over a 15‐year period. We also tested, but did not find support for, the relationship between SEPs and short‐term financial performance. Managerial summary : Most managers look for short‐term financial benefits to justify socially responsible or sustainable practices. In this article, we argue that such practices also help firms become more resilient, which helps them avoid crises and bounce back from shocks. However, it is difficult to measure the avoidance of shocks, so we analyzed long‐term outcomes. We show that firms that adopt responsible social and environmental practices, relative to a carefully matched control group, have lower financial volatility, higher sales growth, and higher chances of survival over a 15‐year period; yet, we were unable to find any differences in short‐term profits. We hope this research provides good reasons for firms to practice sustainability beyond the pursuit of short‐term profits. Copyright © 2015 John Wiley & Sons, Ltd.     

The role of linked legitimacy in sustainable business model development

In this paper we use legitimacy as a lens to explore how sustainable business models (SBMs) develop within and across business ecosystems. We explore legitimacy as a resource that is created through sustainable development projects. We introduce the idea of linked legitimacy as a key driver for developing SBMs both within the business ecosystem of the focal firm, and in the overlapping ecosystems of their stakeholders. Using data from three business cases we explore different ways firms build and exploit linked legitimacy and how this leads to SBM development. We suggest that linked legitimacy can cross firm boundaries as a resource to be exploited broadly by ecosystem stakeholders. Finally, we re-conceptualize the rules of engagement for developing SBMs. In our model of SBM development, each firm then takes advantage of the resource (linked legitimacy) available in the ecosystem and is free to use it opportunistically, which drives SBM development.     

A service design perspective on the stakeholder engagement journey during B2B innovation: Challenges and future research agenda

Innovation in business-to-business (B2B) contexts deals with highly dynamic, complex, and heterogeneous constellations of stakeholders with a diversity of goals, motives, and capabilities that further challenge successful management of B2B innovation processes and outcomes. Complex challenges, such as sustainability and digitization trends, push these B2B firms to embrace new innovation methods that help them manage disruptive change. Service design thinking has emerged as an innovation management practice emphasizing a human-centered innovation process of user interactions, creativity, and learning mindsets. In this article, we aim to evaluate the challenges and develop a research agenda on how service design can effectively enable stakeholders' engagement during the B2B innovation process. We argue that to advance service design opportunities for stakeholder engagement, we need to address the unique complexities and challenges of stakeholder engagement during innovation from a systemic and dynamic process perspective. From a systemic perspective, we zoom in on the building blocks of stakeholder engagement and address multi-level stakeholder engagement platforms (i.e., innovation networks). From a dynamic process perspective, we treat stakeholder engagement as an emerging process and zoom in on the temporal and relational connections and hybrid orchestration to allow for both structural and emerging stakeholder engagement during innovation. We develop a stakeholder engagement journey in which we integrate service and innovation stages and propose how service design activities can support and facilitate the aforementioned challenges and complexities. Finally, we identify concrete research questions and, accordingly, develop a research agenda for future research on stakeholder engagement in B2B innovation trajectories.     

Is doing more doing better? The relationship between responsible supply chain management and corporate reputation

Responsible supply chain management (RSCM) can help protect a firm's corporate reputation by shielding it from negative media attention and consumer boycotts. RSCM can also enhance a firm's corporate reputation, which allows firms to secure business contracts and penetrate new market segments successfully. This study empirically examines: (i) the extent to which responsible supply chain management practices is driven by a desire to protect corporate reputation; and (ii) whether responsible supply chain management can enhance corporate reputation and thereby generate competitive advantage to the firm. We draw on primary and secondary datasets across seven firms, spanning the publishing, technology, beverage, tobacco, finance and home improvement sectors. We find compelling evidence to suggest that firms often engage in RSCM due to a desire to protect corporate reputation. Similarly, we find empirical evidence to suggest that responsible supply chain practices can enhance reputation and thereby create competitive benefits, although this link is not as profound as the relationship between RSCM and reputation protection and there are significant variations across industries. These findings have significant implications for marketing theory and, in particular, industrial marketers, who are increasingly expected to implement responsible supply chain practices.     

Sharing is the name of the game: Exploring the role of social media communication practices on B2B customer relationships in the life sciences industry

The inclusion of social media as a communication channel in a vendor's B2B digital marketing strategy is growing in importance. Understanding the effect of such practices upon customer relationships is crucial for firms as they increasingly engage in this way. This paper presents and tests a model that explores the effect of vendor social media communication practices upon trust and loyalty in B2B customer relationships. A study using quantitative data from 196 business customers of a United States life sciences firm is reported. The model indicates that trust and loyalty are influenced by a) the social media shared beliefs between the vendor and the customer; b) the nature of the vendor's social media communication with the customer; and c) the extent to which the vendor's social media communication practices enable effective customer-to-customer communication. Trust is found to have a mediating role between these indicators and loyalty. Managerial implications are discussed.     

Modular interconnected processes,fluid partnering,and innovation speed: A loosely coupled systems perspective on B2B service supply chain management

In this paper, we examine whether and how loosely coupled systems in service supply chains influence the speed of innovation in service organizations. Drawing upon the nomological network of loosely coupled systems, we propose a way for supply chains in the business to business (B2B) market context to be conceptualized as loosely coupled systems and explain how the dialectical elements of modularity at the interface of standard process and content interfaces (SPCI) and structured data connectivity (SDC) enable the sharing of high-quality information through fluid partnership in service supply chains to improve innovation speed. Results that are based on a sample of service firms indicate that SPCI and SDC are positively associated with modular interconnected processes, and they, in turn, positively influence the ability to reconfigure supply chain partners (fluid partnership). Fluid partnership enhances information quality, which in turn, influences innovation speed. Implications are discussed for B2B service supply chain efforts in improving innovation speed.     

Examining institutional effects on B2B relationships through the lens of transitioning economies

Our study addresses the limited attention paid to the role of indigenous institutional environments in framing the legitimate forms of governance used to shape buyer-supplier exchanges. Drawing on institutional theory and marketing channel literature, the study suggests that the emphasis in buyer-supplier exchanges on communication modalities and norms has much to do with the effectiveness of legal systems in a buyer's country. Three contexts for legitimacy are conceptualized from an examination of exchanges in developed economies with strong formal institutions and transitioning economies with underdeveloped institutions. Using surveys of US buyers to represent strong formal institutional environments, we conclude that buyers heavily influenced by regulative enforcement place a relatively greater emphasis on formal information sharing in their partnership efforts to build trust and enhance supplier performance. From surveys of buyers in India and China, we conclude that buyers place a relatively greater emphasis on informal information sharing when their legitimacy derives from the endogenously enforced moral codes of their private networks. Finally, surveys administered in Brazil and Russia revealed that buyers in environments pressured by the familial loyalty practices of their private networks place a relatively greater emphasis on the norm of solidarity to build trust in their suppliers.     

An exploratory study into brand alignment in B2B relationships

B2B relationships are characterized by strategic partnerships between firms and the suppliers of goods and services integral to their offerings. Failure to choose the right partner could jeopardize the survival of both partners. While a number of studies suggest that partnering firms need to be aligned operationally, few studies look at whether there should be alignment between the brands of firms and their suppliers. Therefore, we build on existing studies on sexual selection to develop a theory of whether similarity in brand attributes affects the success of B2B relationships. We propose that firms wishing to portray particular brand images to their customers choose suppliers whose images mirror their own. To develop our proposition, we investigate the brand personality alignment between well-known firms and their suppliers in four industries. The findings of our analysis have significant implications for scholars and managers interested in the nature and success of B2B partnerships.