Leveraging collective intelligence: How to design and manage crowd-based business models

Advances in digital technologies have increased the possibilities for outsourcing business activities to crowds of independent contributors. Using the collective intelligence of a crowd opens a new range of business opportunities. In fact, crowdsourcing has led to the emergence of entirely new business models. Such crowd-based business models (CBBMs) can lead to an important competitive advantage while simultaneously presenting new challenges to entrepreneurs and executives. This article identifies and discusses three key challenges in designing and managing CBBMs: determining (1) the crowd's value to the firm, (2) how to create superior value for the crowd, and (3) how to capture value from the crowd effectively. Building on the crowd capital perspective and an analysis of the tactics and practices of successful CBBMs, this article offers propositions on how to overcome these challenges and manage such business models effectively. The identified practices can inspire decision makers when designing innovative CBBMs for their industries. Finally, the article concludes with a framework with the key decisions and tactics for effectively managing CBBMs.     

Understanding the omnichannel customer journey: The effect of online and offline channel interactivity on consumer value co-creation behavior

Building on the service dominant logic, this study explores the effect of online and offline channel interactivity on consumers’ value co-creation behavior (VCB), the mediating effect of brand involvement, and the moderating effect of cross-channel consistency (CCC). We surveyed 387 customers who engage in omnichannel shopping. The relationship between online and offline channel interactivity and VCB was positive and partially mediated by brand involvement. The interaction effect of online channel interactivity (ONI) and offline channel interactivity (OFI) had a negative effect on brand involvement when CCC was low but a non-significant positive effect when CCC was high. These findings enrich the theoretical understanding of value co-creation and provide insights into omnichannel management.     

Employee Motivation to Co-Create Value (EMCCV): Construction and Validation of Scale

Value Co-Creation (VCC) is an emerging concept that has vast applications in theory and practice. Though previous research has provided enough insights on the customers' role in VCC, relatively less research exists on employee motivation to co-create value (EMCCV) with customers. Among other reasons for such less empirical investigations, one is the unavailability of measurement scale for EMCCV. Therefore, the drive of this study is to conceptualize, develop, and validate a scale to measure EMCCV. Drawing from the expectancy theory and adapting the standard scale development procedure, this study develops EMCCV as a higher-order construct that constitutes four dimensions namely professional identity, financial motives, recognition motives, and career opportunities motives measured by 17 items. The measurement scale is developed in the context of automotive service centers; however, it has a broader application on the frontliners of all service industries and can be adapted in other service-oriented contexts. The scale is tested in a theoretical framework and has provided sound reliability, convergent, discriminant, and nomological validity.     

Note: A new approach to the modeling of spatially dependent and heterogeneous geographical regions

We propose a new spatial modeling approach to calibrate the potential impact of spatial dependency and heterogeneity on the underlying drivers of customer service and/or satisfaction measurement. The newly proposed procedure derives regionally varying coefficients, provides more flexible fitting, improves calibration fit and predictive validation, and can potentially result in augmented managerial implications compared to existing procedures by utilizing a hierarchical Bayes framework with geographical boundary effects. Using synthetic datasets, we illustrate how the proposed model outperforms four relevant benchmark models including ordinary linear regression, a Spatially Dependent Segmentation model (Govind, Rabikar, and Mittal 2018), classic Geographically Weighted Regression, and Bayesian Geographically Weighted Regression. The improved performance is most prominent when there exist significant differences between geographic boundaries and/or irregular patterns of observation locations. In our automobile customer satisfaction application study, the proposed approach also demonstrates favorable performance compared to these benchmark models. We find a dramatically heterogeneous pattern regarding two covariates in the Mountain U.S. geographic division: dealership service is more important in urban areas (e.g., Phoenix, Salt Lake City and Denver) than in rural areas, but vice-versa concerning vehicle quality.     

A cross cultural investigation of retailers commitment to CSR and customer citizenship behaviour: The role of ethical standard and value relevance

Factors promoting customer citizenship behaviour are of great interest to both practitioners and academics because customer citizenship behaviour is a notable driver of business success. This study examines the role of value relevance and ethical standards in shaping consumers perceptions about retailers commitment to corporate social responsibility (CSR) and its effects on customer citizenship behaviour under different cultural contexts. It also examines the critical role of personality in shaping citizenship behaviours. Data from the UK and Egyptian consumers were collected and analysed. Data were collected from 1757 consumers and analysed using structural equation modelling (PLS/SEM). The findings indicated that value relevance and ethical standards are key drivers of retailer commitment to CSR, which in turns lead to customer citizenship behaviour. Moreover, the multiple-group analysis revealed that the degree of effect of these variables on customer citizenship behaviour differs between customers in Egypt and the UK. Specifically, the effect of value relevance and ethical standards on retailer commitment to CSR is stronger for the Egyptian customers than for the UK customers, while, CSR has stronger effects on customer citizenship behaviour for the British consumers than for the Egyptian customers. The managerial and theoretical implications were identified.     

Examining the effect of flow experience on online purchase: A novel approach to the flow theory based on hedonic and utilitarian value

The literature indicate that when flow is approached as unidimensional, its effects on online purchase intention are always positively significant, however the results of the studies where the flow is approached as a multidimensional level, is far from indicating a general tendency. The inconsistent results appeared in the literature are regarded as a result of overlooking both the utilitarian and hedonic significance of research context and the hedonic and utilitarian characteristics of the flow's sub-dimensions. In this direction, the effects of flow on online purchase intention are examined upon consideration of those two factors. Research's data were gathered via e-mail survey from an online shopping website's database. A total of 490 samples obtained in this study were analyzed with structural equation modeling. The results indicates that the flow's most valuable antecedent is feedback in the context of online purchase. The dimensions of “enjoyment”, “perceived control” and “merging of action and awareness” has positive and time distortion has negative significant effects on online purchase intention. However, no significant effects of the concentration and curiosity on online purchase intention were determined.