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Applied customer knowledge in a manufacturing environment: Flexibility for industrial firms |
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| Authors: | Cindy Claycomb [Author Vitae] Cornelia Dröge [Author Vitae] Richard Germain [Author Vitae] |
| Institution: | a Wichita State University, W. Frank Barton School Business, Department of Marketing and Entrepreneurship, 1845 Fairmount, Wichita, KS 67260-0084, USA b Michigan State University, Department of Marketing and Supply Chain Management, N370 North Business Complex, East Lansing, MI 48824-1122, USA c University of Louisville, Department of Marketing, 154 College of Business and Public Administration, Louisville, KY 40292, USA |
| Abstract: | Dynamic business markets are forcing B2B marketers to create flexibility in their firms. The present study investigates: (1) made-to-stock (MTS) versus made-to-order (MTO, which is considered more flexible); (2) production technology routineness (with nonroutine considered more flexible); and (3) a marketing-based enabler of flexibility, i.e., applied customer knowledge. SEM analysis shows that applied customer knowledge completely mediates the relationships of both MTO and routineness with financial performance. This delineates two routes to financial performance, beginning with manufacturing-based flexibility constructs and operating through marketing-based applied knowledge. In addition, exploratory analysis of a subsample confirmed empirically that the financial success of mass customization depends on extensive customer knowledge application and low finished goods inventory levels. Managerial implications are discussed, along with ideas for future research. |
| Keywords: | Business-to-business Knowledge Performance Manufacturing strategy Flexibility |
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