THE IMPACT OF INTERNAL MARKETING EFFORTS IN DISTRIBUTION SERVICE OPERATIONS

Marketing efforts can offer firms a greater competitive advantage by overtly stimulating the impact of frontline logistics employees on customer value creation. In such a situation, internal marketing becomes the strategy of choice in both service and product support contexts. A broad marketing mix framework is introduced shifting the traditional application from marketing products to marketing the workplace to logistics distribution employees. Research findings support a multidimensional operationalization of internal marketing. Holistic tests indicate that internal marketing on an interpersonal level is associated with satisfied and higher performing distribution center employees and increased interdepartmental customer orientation.     

Collaborating for New Product Development: Selecting the Partner with Maximum Potential to Create Value

The partner selection process in the formation stages of collaborative new product development (NPD) is a neglected topic. The present study investigated the partner selection processes to ascertain the potential of creating competitively advantageous products through collaboration. The goal was to develop a process theory of partner selection for collaborative NPD alliances using a theory development approach. The literatures on NPD, interfirm knowledge transfer and generation, and interorganizational relationships were tapped. These literatures motivated the approach and the research questions. Parallel with the analysis of the literature, a series of case study interviews were conducted with managers currently in collaborative dyads. Managers' inputs were used (1) to guide the theory development process and (2) to validate the relevance of the literature-based assertions. The method of narrative analysis for building theory from case studies was adopted: Multiple indicators were collapsed into single constructs, and recurring sequences or divergences were analyzed. This resulted in the unveiling of phases in the partner selection process. The study's findings suggest that technological alignment of the partners triggered the partner-evaluation process. This phase was followed, in order, by the strategic alignment and relational alignment phases. These later phases were as important as the initial phase in ensuring the transfer and integration of critical know-how and in creating product value through collaboration. In addition to clarifying the definition of codevelopment alliances, this study reveals a comprehensive theoretical model of the technological, strategic, and relational aspects of partner selection in codevelopment alliances, as well as the order in which these aspects are practiced.     

How Elephants Learn the New Dance When Headquarters Changes the Music: Three Case Studies on Innovation Strategy Change

Does a product innovation strategy change at company headquarters resonate the same way at different strategic business units (SBUs)? What factors play a role in differing implementation of new innovation strategies? A collective case study was conducted at three SBUs of an international conglomerate to investigate why the SBUs implement the same corporate innovation charter in vastly different manners, both in strategic processes and in organizing for new product development (NPD). This study's contribution to the literature is twofold. First, it develops initial insights into how three SBUs implement diverse SBU‐level innovation strategies in response to the same product innovation charter. Second, it extends the findings of previous studies on NPD strategy by presenting how three SBUs reshape their structure and resource allocation, changing various dimensions of their innovation strategy while also fitting the competitive structure in their individual, non‐high‐tech, traditional manufacturing industries as they respond to the corporate mandate. In this study, several factors were observed to influence a firm when formulating a new product innovation strategy. First, past performance and strategic typology constrain the innovation paths available. Poor past performance limits available resources whereas the strategic typology managers use limits their ability to recognize other opportunities. Next, capacity constraints provide a catalyst in moving toward process improvements. Third, management involvement in the day‐to‐day implementation of change is necessary to ensure that the new processes are implemented. Finally, corporate performance metrics are quite influential in how SBUs adapt to change. This study identifies that even with the immense power corporate has over these SBUs, some still dance to their own tune, ignorant of their deviation from the corporate mandate because the metric is not sufficient to detect these deviations. This study suggests the use of multiple types of metrics to minimize the likelihood of nearsighted responses to innovation charter changes.     

Expenditure Competition

Given the temptation by government officials to use some of their budget for "perks," residents face the problem of inducing officials to reduce such "waste." The threat to vote out of office officials who perform poorly is one possible response. In this paper, we explore how the competition for residents induced by fiscal decentralization affects "waste" in government. We find that such competition reduces waste, raises the utility of residents, and increases the desired supplies of public goods (potentially above the levels that jurisdictions would choose if they could coordinate). These results are in sharp contrast to the presumed effects from "tax competition," and suggest an additional advantage of fiscal decentralization.     

New product strategy, structure, and performance in two environments

The relationships among environment, strategy, structure, and performance in the context of new product development are examined. The “fit” of strategy and structure to environment is found to be better modeled as a moderator of strength. Overall, the results support the importance of environment, strategy, and structure for the performance of new products. The basic conclusions are that the new product profile has a stronger positive effect on performance for nondominant competitors than for dominant competitors, whereas for dominant competitors, speed and first-to-market strategies are more important to long-term success.