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Customer-centric strategy driving innovativeness and business growth in international markets
Abstract
Purpose
The motivation for this study comes from decision making related to strategic marketing orientations in international markets. The authors examine if customer orientation and customer relationship orientation perform as two distinct constructs in driving firm innovativeness, and how together they support business growth among export firms. This study aims to suggest a customer-centric strategy for export firms that drive innovativeness and growth.
Design/methodology/approach
An international corporation specialized in company information services provided a list of the contact information of Italian companies. The authors sent an email request to respond to an online survey and received 416 effective responses from firms operating in export markets. The authors propose and empirically test a model in which customer orientation, customer relationship orientation and innovativeness predict business growth. This model controls for the effects of firm size, industry and customer type (B2B vs. B2C).
Findings
The study findings suggest that customer orientation and customer relationship orientation are two distinct strategic orientations driving innovativeness. However, they do not directly affect business growth. Instead, they require the innovativeness of an exporter to materialize as business growth.
Practical implications
The results of the study recommend business strategies focusing not only on customer needs and satisfaction but also on retaining current customers and building customer relationships in international markets. Firms can learn from international customers and develop effective customer-centric strategies to spread the acquired information into the internal decision-making as it contributes to firm innovativeness and business growth in international markets.
Originality/value
This study is one of the pioneering studies combining customer orientation and customer relationship orientation, showing their theoretical and empirical divergence. This study is also among the first which tests how the two strategic orientations together with innovativeness promote business growth among export firms. The authors add understanding of the synergistic effects both of using customer information and developing deeper relationships on firm innovativeness and performance among exporters.
... however, abid and Gulzar (2018), ighomereho et al. (2022), utami and nuvriasari (2023), and Zulfikar (2019) found no significant relationship between customer orientation and performance. Moreover, certain studies indicates that performance is not directly affected by market orientation, specifically consumer orientation (agus Zainul arifin, 2020;tuominen et al., 2022;Wahyono & hutahayan, 2021). therefore, the findings about the relationship between customer orientation and performance are inconsistent and do not lend themselves to generalizations. ...
... this reduces the misleading effect and enables a more precise and tangible understanding of the underlying relationships (liu, 2011). the literature review primarily determines innovation capability based on customer orientation, competitor orientation, and entrepreneurial orientation (akhtar et al., 2021;Kiani et al., 2021;Kim, 2017;ramírez-solis et al., 2022;tuominen et al., 2022). Furthermore, previous studies have shown that innovation capabilities are crucial for converting ideas, knowledge, and information into better goods, services, and marketing campaigns (ali et al., 2020;Guzmán et al., 2018;saunila, 2020). ...
... consumer orientation, competitor orientation, and entrepreneurial orientation are the main factors that determine innovation capability (akhtar et al., 2021;Kiani et al., 2021;Kim, 2017;tuominen et al., 2022;tutar et al., 2015). in addition, prior studies have demonstrated the importance of innovation capabilities in transforming ideas, and knowledge into improved products, processes which enhance business performance (ali et al., 2020;Guzmán et al., 2018;saunila, 2020). hence, incorporating mediator innovation capabilities into the link supports innovative behavior and validates the mediation effect suggested by earlier research (Maaodhah et al., 2021) in improving the strategic orientation-enterprise performance link. ...
There is a lack of studies that analyze simultaneously how customer, competitive, and entrepreneurial orientations affect SMEs’ innovation capabilities and performance. Hence, the main goal of this study is to examine the significance and enhance understanding of strategic orientation in relation to the innovation capabilities and performance of small and medium-sized enterprises (SMEs). This study used an explanatory research design and multi-stage sampling to gather primary data from the study area. The data and research hypotheses of the suggested structural regression model were examined using structural equation modeling (SEM), based on empirical data from 321 Ethiopian SMEs operating in Hawassa city. The SEM results indicate that small and medium-sized enterprises with a higher level of strategic orientation can ensure superior performance. The findings also indicate that innovation capabilities partially mediate the relationship between strategic orientation and SMEs performance. The study makes a valuable theoretical and practical contribution to the application of resource-based and dynamic capabilities theories within the context of SMEs. Furthermore, this study suggests that SMEs can leverage strategic insights to address the real-world challenges of entrepreneurship and innovation while offering practical solutions. Hence, strategic perspectives that spread acquired knowledge and new ideas throughout internal decision-making processes ultimately enhance SMEs’ innovation capabilities and performance.
... according to RBV theory, customer-oriented approaches are valuable, unique, inimitable, and non-substitutable resources that enables the businesses to find innovative ways to boost success rates in the market (ali et al., 2020; lonial & carter, 2015). customer orientation enhances innovativeness of sMes (akhtar et al., 2021;Kamalaldin et al., 2021;tuominen et al., 2022). the research gaps are identified as: ...
... ighomereho et al. (2022), Utami and nuvriasari (2023), and Zulfikar (2019) also found insignificant relationship between customer orientation and performance. Furthermore some studies find that market orientation particularly, customer orientation does not directly influence performance (Dionysus & arifin, 2020;tuominen et al., 2022;hutahayan & Wahyono, 2021). hence, results on the relationship between customer orientation and innovative performance show conflicting results and contradictory to justify generalizations. ...
... according to academics, firms must investigate, transform, and use both internal and external knowledge to better the outcomes of innovation (naqshbandi et al., 2018). in light of this, it is crucial for sMes to investigate, transform, and use customer knowledge and ideas in an open and integrated culture to capitalize on their innovative behavior (gao et al., 2008;naqshbandi & Jasimuddin, 2022). this involves increasing customer involvement in innovation process, which boosts innovativeness and performance (Pundziene et al. 2021;tuominen et al., 2022). ...
The objective of this study was to examine the significance of customer-orientation for open innovation and performance of the SMEs. Explanatory research design and multi-stage sampling were used to acquire both primary and secondary data from the study area. The study used structural equation modeling (SEM) to examine the data and research hypotheses in the suggested structural regression model based on the empirical data of 321 SMEs operating in the study area. The SEM results indicated that small and medium-sized enterprises with higher level of customer orientation are more innovative in their performance. The findings also showed that open innovation partially mediated the relationship between consumer orientation and enterprise performance. Hence, the study found that customer orientation creates better value through open innovation, having an indirect effect on the performance of SMEs. The study’s findings suggest that enterprise performance can be realized by implementing business strategies that prioritize customer requirements and satisfaction. SMEs can leverage customer insights to create customer-focused innovation strategies that spread acquired knowledge and new ideas throughout internal decision-making processes, ultimately enhancing open innovation and performance of SMEs.
... In recent times, the retail sector has been confronted with various challenges, from the impact of the financial crisis in 2008 to the disruption created by the pandemic and, more recently, the increases in UK business rates [1,2]. In addition to these economic challenges, the rise of online retailers has intensified the competition in the retail industry, resulting in a decline in customer visits [3,4]. Figures show that over the previous five years, 6000 retail stores throughout the UK have closed, highlighting the challenging landscape facing physical retailers [1]. ...
... Facing such headwinds, it is crucial for traditional brick-and-mortar stores to revisit their retail offering by considering more customer-centric initiatives in an attempt to reestablish connections with their customers [4]. Recent studies have indicated that customers desire more augmented retail experiences that go beyond mere product transactional offerings and are willing to pay more for experiences [6,7]. ...
... Building on this point, scholars have urged retailers to recognise the significance of cultivating enduring customer relationships by considering the cultural values and operational aspects that facilitate such relationships [4] and find ways for customers to fall in love with their brands [6,7]. As highlighted by Park et al. [9], brands offer the most value to customers when they combine the benefits of enabling, enticing, and enriching. ...
The physical retail sector is facing significant challenges, exacerbated by the disruptions caused by the pandemic. Amidst these circumstances, it becomes imperative for brands to reimagine the role of physical retail stores and counter the negative trends in the industry. Gamification has emerged as a promising strategy to enhance customer engagement and elevate brand experiences. This study explores how brands can create engaging experiences through gamification within the physical retail environments to revitalize stores and foster sustainable brand experiences. In this context, ‘sustainable’ refers to the creation and maintenance of long-lasting relationships between consumers and physical retail stores through ongoing engagement. Drawing on data collected from 17 semi-structured interviews, our findings demonstrate that gamification effectively shifts customers from passive observers to active participants, strengthens emotional connections through co-creation, prolongs footfall and engagement duration through immersive encounters, and integrates physical and online platforms for sustainable practices. This research contributes valuable insights into the transformative potential of gamification, offering practical implications for brands seeking to rejuvenate customer experiences in the realm of physical retail.
... A synthesis of multiple studies underscores the widespread recognition of a customer-centred approach as a key driver of business performance, positively impacting financial metrics such as monetary resources, increase in sales, profitability, proportion of the market, and stock valuation. Tuominen et al. (2023) and Obafemi, Onyebuchi, and Omoyebagbe (2023) confirm that understanding and responding to customer needs can significantly enhance these outcomes, while Eklof, Podkorytova, and Malova (2020) longitudinal study further supports this by demonstrating that customer satisfaction not only boosts current profitability but also predicts future financial performance, particularly in Scandinavian banks. Additionally, Rahman et al. (2021) and Idzikowski et al. (2019) emphasize the relevance of customer relationship management (CRM) strategies in improving project performance across different phases, highlighting the evolving nature of customer relationships. ...
... This outcome aligns with that of Tuominen et al. (2023) and Obafemi, Onyebuchi, and Omoyebagbe (2023), who noted that understanding and responding to customer needs positively impacts financial metrics like profitability, market share, and stock valuation. ...
The study examines the impact of Total Quality Management (TQM) on construction project performance in the Eti-Osa Local Government Area, Lagos State, Nigeria. It evaluates six practices from the Malcolm Baldrige National Quality Award (MBNQA) framework: Leadership, Strategic Planning, Customer Focus, Workforce Focus, Operation Focus, and Measurement, Analysis, and Knowledge Management. The results show that all six MBNQA practices positively impacted project performance, indicating that TQM significantly influences project outcomes. The study offers practical recommendations for construction firms and practitioners to better understand the link between TQM and project performance.
... In today's competitive marketplace, exceptional customer experience is paramount for long-term success (Roy, Gruner and Guo, 2022). The most effective marketing strategies today are those that are customercentric, emphasizing the importance of understanding and addressing the needs and preferences of the customer (Tuominen et al., 2023). It is Grounded in principles like Relationship Marketing Theory and Customer Value Theory. ...
... The next step is creating effective and personalized content. Following this, effective content must be distributed via appropriate platforms, such as LinkedIn, X, or the company website, at optimal times (Gounaris and Almoraish, 2024;Tuominen et al., 2023). Finally, success should be assessed by monitoring performance indicators and KPIs to refine and improve the strategy (Aagerup et al., 2022;TAVŞAN and ERDEM, 2021). ...
... In today's competitive marketplace, exceptional customer experience is paramount for long-term success (Roy, Gruner and Guo, 2022). The most effective marketing strategies today are those that are customercentric, emphasizing the importance of understanding and addressing the needs and preferences of the customer (Tuominen et al., 2023). It is Grounded in principles like Relationship Marketing Theory and Customer Value Theory. ...
... The next step is creating effective and personalized content. Following this, effective content must be distributed via appropriate platforms, such as LinkedIn, X, or the company website, at optimal times (Gounaris and Almoraish, 2024;Tuominen et al., 2023). Finally, success should be assessed by monitoring performance indicators and KPIs to refine and improve the strategy (Aagerup et al., 2022;TAVŞAN and ERDEM, 2021). ...
" This research is the first phase of a broader study, into the performance of GPT-4 as a Generative AI (GenAI) model in crafting specialized marketing content ideas, for the aviation Maintenance Repair and Overhaul (MRO). The study emphasizes three primary content types including short informative articles, case studies, and white papers. Using the Analytic Hierarchy Process (AHP), six industry experts evaluated the AI-generated content ideas based on their relevance to the industry, trendiness, and appropriateness for the content type. The findings revealed that GPT-4 was most effective at generating white paper ideas, with an effectiveness score of 93.13%, followed by short article ideas at 90.44% and case study ideas at 86.88%. The findings demonstrate how GenAI models, like GPT-4 can improve content marketing in sectors such, as aviation MRO where accurate and trustworthy information is essential. This study stands out for its use of GenAI, in the MRO industry showcasing proof of its ability to generate unique content ideas tailored to the sector setting the groundwork, for content development.
... La gerencia tiene la capacidad de utilizar los recursos, adecuar la estructura organizacional y modificar las funciones y procesos necesarios para alinear las estrategias y las actividades hacia el cumplimiento de la propuesta de valor (Zakerian et al., 2017). A nivel organizacional, implica una orientación al mercado y el comportamiento de la compañía hacia los clientes; mientras que a nivel individual involucra el desarrollo de actitudes y habilidades para el manejo del contacto interpersonal empleados-clientes (Tuominen et al., 2022). Bajo el enfoque de la innovación en marketing, esta dimensión pretende personalizar la experiencia de los usuarios (Camilleri, 2020), fomentar relaciones de largo plazo, personalizar la relación e interacción con los clientes para aprovechar nuevas oportunidades en función de sus necesidades y expectativas (Alshurideh et al., 2023), así como reforzar la posición competitiva en el mercado (Tuominen et al., 2022). ...
... A nivel organizacional, implica una orientación al mercado y el comportamiento de la compañía hacia los clientes; mientras que a nivel individual involucra el desarrollo de actitudes y habilidades para el manejo del contacto interpersonal empleados-clientes (Tuominen et al., 2022). Bajo el enfoque de la innovación en marketing, esta dimensión pretende personalizar la experiencia de los usuarios (Camilleri, 2020), fomentar relaciones de largo plazo, personalizar la relación e interacción con los clientes para aprovechar nuevas oportunidades en función de sus necesidades y expectativas (Alshurideh et al., 2023), así como reforzar la posición competitiva en el mercado (Tuominen et al., 2022). ...
Marketing innovation contributes to commercial and organizational success; therefore, it is important to have a scale that measures such construct comprehensively. Hence, this research aimed at developing and validating a scale to measure the perception of marketing innovation from consumers of small and medium-sized restaurants’ point of view. The process was carried out in five stages: design of the instrument, content validity, pilot test and exploratory analysis of the scale (with 52 diners), confirmatory factor analysis (with 286 diners), and verification of the scale through a structural model. Results show a high-order scale with five dimensions: technology, management, market research, competitiveness and marketing mix; and sixteen items.
... Furthermore, the present research satisfies requests for additional studies to determine what factors will be able to enhance SME export performance in developing nations like Nigeria (Haddoud et al., 2021;Paul, 2020). Although the vast majority of this kind of study approach was used in developed nations (Haddoud et al., 2021;Paul, 2020;Tuominen et al., 2022), their findings cannot be generalized and applied to developing economies due to contextual dissimilarities. Since the measurements of the variables were initially used in developed settings, their relevance in Nigeria and other developing nations may not be appropriate without contextual validation. ...
... Although these constructs were used in the past, most were either used as a single variable or a combination to measure export performance. Similarly, developed countries were the primary focus of most studies on the factors influencing SME export performance (Haddoud et al., 2021;Paul, 2020;Tuominen et al., 2022). Exports are crucial for businesses, especially those in developing nations, as they help them expand from their small local markets (2021). ...
This research is aimed at enhancing comprehension and validation of the variables that drive the export performance of small and medium enterprises (SMEs) in Nigeria. Notwithstanding the paucity of evidence regarding the export experiences of SMEs from developing countries in the literature, studying the SME setting is crucial, given its growing significance in enhancing national and global economies. A survey design was used to gather data from owners and managers of Nigerian SMEs that were involved in exports. Based on convenience sampling, 450 questionnaires were distributed. Of this number, 278 valid responses were returned. The study model was assessed via partial least square structural equation modelling (PLSSEM), and the statistical package for social science (SPSS v24) was used for preliminary analysis. The results seem to suggest that the seven-construct measurements-entrepreneurial orientation, market orientation, learning orientation, export orientation, export knowledge, access to finance, and export performance are well suited for estimating the variables under investigation in a Nigerian setting. Similarly, the direct relationship between the exogenous and endogenous constructs was positive and significant. The outcomes validated applying the dynamic capability view and its principles to explain the success of the export performance of SMEs in Nigeria.
... Alongside this work is a focus in the strategy literature on customers and their pivotal role in shaping strategy directions (Carlgren & BenMahmoud-Jouini, 2022;Seidel & Fixson, 2013;Wrigley, Nusem, & Straker, 2020). These studies underscore the strategic value of engaging closely with customers in an empathetic way, particularly when contextual shifts challenge the current understanding of an organization's source of competitive advantage (de Figueiredo, Rawley, & Rider, 2015;Withers, Ireland, Miller, Harrison, & Boss, 2018), or when customer engagement opens avenues for growth in new markets or industries (Liedtka & Kaplan, 2019;Tuominen, Reijonen, Nagy, Buratti, & Laukkanen, 2023;Vetterli, Uebernickel, Brenner, Petrie, & Stermann, 2016). This customer-centric approach, facilitated by multimodality, allows strategists to break free from their organizations' socio-cultural understandings to develop alternative and more customer-centric frames. ...
... The practices of inquiring, perspective-taking and appreciating enable strategy actors to presentify the customer in ways that form new understandings of customers lacking a shared organizational language code. While narrative and cognitive lenses on customer-centricity put the customer at the centre of the strategy story and focus on creating customer value in strategic decision-making (see Gupta & Ramachandran, 2021;Hemel & Rademakers, 2016;Rooney, Krolikowska, & Bruce, 2021;Tuominen et al., 2023;Vaara & Rantakari, 2024), we demonstrate how practices enable managers to feel, see and be as if they were the customer -thus presentifying the customer in ways that bring understanding of the customer to the strategy process. ...
This study explores customer-centric strategizing at a digital bank utilizing a 34-month visual ethnography. We adopt a multimodal perspective to reveal three practices that presentify and thus “bring” the customer into strategizing – inquiring, perspective-taking, and appreciating. These practices enable strategists to understand customer contexts, empathize with their experiences, and value their strategizing contributions over time. Our findings advance research on Strategy-as-Practice and highlight the role of external stakeholders in the strategy process. Specifically, we demonstrate how multimodal practices shape strategy by enabling managers to presentify customers through empathetic competence. By doing so, we illuminate the diverse skills needed to effectively orchestrate multimodal resources in a way that empathetically connects with customers and informs strategizing.
... Karena ada konsumen yang berbeda di sepanjang rantai nilai juga harapan layanan mungkin berbeda. Selanjutnya penting bagi perusahaan untuk mengetahui siapa target konsumen, yang akhirnya membuat keputusan dalam rantai nilai apakah suatu layanan dipesan atau tidak [27]. Agar tetap inovatif, perusahaan harus lebih fokus pada konsumen yang paling menuntut dan mengerti akan trend saat ini. ...
... Namun kelompok pelanggan utama ini tidak boleh terlalu sepihak untuk mengimbangi pencarian ide dan solusi sepihak. Kelompok konsumen yang terlibat harus terdiri dari klien yang memiliki latar belakang berbeda [27]. Selanjutnya penting untuk mengetahui apa yang dihargai konsumen, dan kebutuhan dan keinginan apa yang mereka miliki. ...
Industri konstruksi dikenal dengan sifat kompetitifnya, yang sebagian besar disebabkan oleh kemudahan akses bagi individu atau perusahaan dengan modal investasi kecil dibandingkan dengan industri lain. Dalam lingkungan ini, perusahaan konstruksi sering kali tidak dapat menghasilkan permintaan untuk layanan mereka secara mandiri, sehingga mereka harus terlibat dalam proses penawaran yang sangat kompetitif. Penelitian ini bertujuan untuk menganalisis strategi yang berorientasi pada pelanggan sebagai cara menghadapi persaingan di sektor jasa konstruksi. Metodologi penelitian ini bersifat kualitatif dengan menggunakan pendekatan studi kasus. Data dikumpulkan melalui wawancara, dokumentasi, dan observasi. Hasil penelitian menunjukkan bahwa orientasi pelanggan dapat dianggap sebagai proses pencarian rutin yang memadukan harapan dan preferensi pelanggan dalam pengembangan dan modifikasi produk. Pendekatan ini mendorong interaksi yang lebih erat dengan pelanggan dan menyokong peningkatan bertahap dalam kualitas, fitur, dan efisiensi biaya layanan konstruksi. Sebelum mengembangkan layanan lebih lanjut, perusahaan konstruksi harus mengevaluasi ide-ide dari berbagai perspektif untuk menemukan solusi terbaik. Ini termasuk menilai apakah ide tersebut sesuai dengan kebutuhan dan kapabilitas perusahaan, seperti CV Adicitra Karya. Evaluasi terhadap ide-ide pengembangan ini penting untuk menentukan potensi keuntungan mereka bagi jasa konstruksi, mengingat tidak semua ide produk dapat direalisasikan secara simultan
... Recent studies have demonstrated the valuable role of "customer as data provider (CaDP)" in enhancing technological advancements and fostering competitiveness (Verhoef et al., 2021), accelerating the selection of cost-effective resources and the generation of creative outputs with high returns for SMEs (Cui and Wu, 2017). This customer-centric approach extends its benefits to various domains, such as driving overall SME profitability and growth for firms and their digital platforms (Anning-Dorson, 2018;Tuominen et al., 2022). ...
... Surprisingly, the study was unable to demonstrate a significant positive relationship between CaDP and DL with IG, which disagrees with previous findings (cf. Anning-Dorson, 2018;Khaw et al., 2022;Tuominen et al., 2022). While these results should be approached with caution, they indicate that a customer-centric approach and transformative leadership alone might not ensure the international growth of the platform ecosystem (cf. ...
Purpose. This study has two main objectives. First, to examine the indirect effects of digital platform capability and digital resilience on DT outcomes for small-and medium-sized enterprises (SMEs), and second, to investigate how digital business model maturity influences these indirect effects.
Methods. The study adopts a quantitative design and collects data through a self-reporting survey from individuals in the technological industries. The Partial Least Squares-Structural Equation Modelling (PLS-SEM) and PLS Multi-group analysis examine the measurement and structural models and the significance of differences in indirect paths based on the digital business model maturity level, serving as a moderator.
Originality. This research contributes to the existing literature by focusing on the international outcomes of platform ecosystems in developing markets. It explores how digital platform capability and resilience support the digital transformation of SMEs, considering their vulnerability due to their small size. The study also fills a research gap by investigating the relationship between big data, digital leadership, and the international growth of digital platforms. Lastly, it explores the role of digital maturity in the relationships between antecedents, determinants, and outcomes of digitalisation.
Findings. The findings of this study provide valuable insights into the internationalisation of digital SMEs. They indicate that digital platform capability and resilience fully mediate, connecting digital resources to SME growth. The study also confirms the digital business model maturity's positive and significant moderating effect on these indirect relationships.
... Having observed the need to safeguard existing customer bases and lure customers from customers before (Gupta & Ramachandran, 2021) and during the pandemic (Tuominen et al., 2022), one can underscore that adopting a customer-centric approach is essential for startups and entrepreneurial ventures. Amid such discoveries, prioritizing customer needs and preferences is crucial in the post-pandemic landscape. ...
... While the direct impact of a customercentric approach on resource availability and allocation may be insignificant after the Covid-19 pandemic, a customer-centered mindset and strategy remain crucial for business resilience and growth. In Italy, Tuominen et al. (2022) disclosed that a customer-centric strategy drives innovation and business growth in 778 Italian firms' international markets. Gupta and Ramachandran (2021) discovered that transitioning from a product-focused to a customer-centric approach plays a chief role in enhancing retail sales in Brazil, Russia, India and China. ...
With limited contemporary examinations investigating interactions between change management strategies and startups and entrepreneurial ventures’ growth and development, judgements are bound to be clouded. As a result, the study’s main objective is to identify the key challenges faced by startups and entrepreneurial ventures in response to the post-pandemic business landscape. The study is important for providing valuable insights into successful change management practices, offering practical recommendations for business leaders, and contributing to the understanding of post-pandemic resilience and adaptation in the region’s entrepreneurial ecosystem. The study formulated 8 hypotheses linking digital transformation, customer-centric, financial restructuring and resource optimization, and resource availability and allocation change management approaches with the growth and development of startups and entrepreneurial ventures. A quantitative method involving a Structural Equation Modelling approach was applied to 326 clustered survey responses collected from CEOs, general managers, finance managers, human resources managers, change management leaders and employees and team members of start-ups and entrepreneurial ventures in Erbil, Kurdistan Region of Iraq. According to the findings, digital transformation significantly enhances resource availability and allocation, and growth and development. While customer-centricity may not directly affect resource availability and allocation post-Covid-19, the study concludes that a customer-centric mindset and strategy remain critical to business resilience. Most importantly, financial restructuring and resource optimization positively and significantly affect resource availability and allocation, as well as growth and development. Lastly, the study upholds that resource availability and allocation’s mediating effects are not valid within the context of startups and entrepreneurial ventures in the post-pandemic business landscape.
... In a customer-centric valuation of cryptocurrencies, we propose that new business models are a fundamental prerequisite for serving customers and establishing a sustainable competitive advantage (Heng et al., 2020;Ramanujam et al., 2021;Teece, 2010;Tuominen et al., 2022). Customer-centricity entails putting customer value creation at the heart of business decisions and practices, engaging with the customers in the process of innovation, and customer products or service enriching customer experience (Heng et al., 2020;Ramanujam et al., 2021). ...
This study examines Pakistani citizens' behavioral intentions toward the adoption of cryptocurrency as a digital currency. Cryptocurrency refers to a form of currency that exists in digital or virtual form and relies on cryptography to ensure the security of transactions and regulate the generation of additional units. Cryptocurrencies have the potential to disrupt the global financial system. Cryptocurrency is a viable option for decentralized and secure transactions, offering enhanced transparency and lowering dependence on conventional financial institutions. The authors collected data from potential cryptocurrency customers or investors. Data were collected from Karachi (Pakistan). The study was conducted with the help of the diffusion of innovation theory (DOI), employing all its components (relative advantage, compatibility, complexity, trialability, and observability). The DOI model statements were modified and adapted to satisfy the requirements of this study. This empirical research report concludes that relative advantage (financial incentives, technology advancement, global accessibility, privacy and security, and P2P nature), compatibility (user-friendliness, integration with existing systems, compatibility with digital lifestyles), and complexity (ease of use and mass adoption) contribute to the adoption. Trailability (lack of familiarity and risk aversion) and observability (limited exposure, lack of social proof, and negative stigma) are unrelated to customer behavior toward cryptocurrencies. In all these contexts, cryptocurrency adoption can enhance value co-creation. Finally, this study provides valuable insights for stakeholders.
... In a customer-centric valuation of cryptocurrencies, we propose that new business models are a fundamental prerequisite for serving customers and establishing a sustainable competitive advantage (Heng et al., 2020;Ramanujam et al., 2021;Teece, 2010;Tuominen et al., 2022). Customer-centricity entails putting customer value creation at the heart of business decisions and practices, engaging with the customers in the process of innovation, and customer products or service enriching customer experience (Heng et al., 2020;Ramanujam et al., 2021). ...
This study examines Pakistani citizens’ behavioral intentions toward the adoption of cryptocurrency as a digital currency. Cryptocurrency refers to a form of currency that exists in digital or virtual form and relies on cryptography to ensure the security of transactions and regulate the generation of additional units. Cryptocurrencies have the potential to disrupt the global financial system. Cryptocurrency is a viable option for decentralized and secure transactions, offering enhanced transparency and lowering dependence on conventional financial institutions. The authors collected data from potential cryptocurrency customers or investors. Data were collected from Karachi (Pakistan). The study was conducted with the help of the diffusion of innovation theory (DOI), employing all its components (relative advantage, compatibility, complexity, trialability, and observability). The DOI model statements were modified and adapted to satisfy the requirements of this study. This empirical research report concludes that relative advantage (financial incentives, technology advancement, global accessibility, privacy and security, and P2P nature), compatibility (User-friendliness, Integration with existing systems, compatibility with digital lifestyles), and complexity (ease of use and mass adoption) contribute to the adoption. Trailability (lack of familiarity and risk aversion) and observability (limited exposure, lack of social proof, and negative stigma) are unrelated to customer behavior toward cryptocurrencies. In all these contexts, cryptocurrency adoption can enhance value co-creation. Finally, this study provides valuable insights for stakeholders.
... Research on IESEC is an emerging area of study that has yielded increasingly concrete results over the years, as noted by Abdelnaeim and El-Bassiouny [139], Zhou et al. [140], and Tišma et al. [141]. There is mounting evidence that innovative entrepreneurship plays a crucial role in promoting sustainability and enhancing the development levels of territories [120,142,143], particularly those that are still developing, as highlighted by Wu et al. [144]. ...
Innovative entrepreneurship has increasingly been acknowledged as one of the most vital drivers of economic development, job creation at high value, wealth creation, and business growth. This study analyzes the current status and evolution of research on innovative entrepreneurship and sustainability in the context of emerging economies, based on a bibliometric analysis of 132 articles indexed in the Web of Science database. The search was guided by relevant keywords, such as "innovative entrepreneurship*" and "sustainab*". Systemic barriers limit the scalability of innovative ventures, especially in developing countries. Frugal and green innovations, digital technologies, and rural enterprises show promise but face challenges like resource constraints, ethical concerns, and policy gaps. Collaborative, equity-focused approaches are essential to ensure entrepreneur-ship drives sustainable and inclusive development. Further studies should expand the data source, increase the pool of articles, and develop crosscountry comparisons to enhance global understanding. This may lead to a better understanding of innovative entrepreneur-ship and sustainability that can be used to create actionable strategies for development in various economic contexts.
... Teori strategi pemasaran juga menekankan pentingnya market orientation, yaitu pendekatan di mana bisnis tidak hanya berfokus pada produk yang dijual, tetapi juga memahami kebutuhan konsumen serta perubahan tren di pasar (Hendarwan, 2023;Kohli & Jaworski, 1990;Schulze et al., 2022;Tuominen et al., 2023). Dalam konteks ini, FGD berperan untuk mengidentifikasi kebutuhan yang spesifik, mengembangkan protokol pengembangan produk, serta membangun standar operasional prosedur (SOP) dan standarisasi untuk produk olahan berbahan MOKORBEF. ...
Kegiatan ini bertujuan untuk melakukan hilirisasi prototipe diversifikasi pangan fungsional berbasis kacang koro lokal dalam rangka pengembangan produk pangan sehat dan ekonomi hijau di Sumenep. Program ini dilaksanakan dengan menggunakan pendekatan Triple Helix yang melibatkan tiga komponen utama: Universitas Muhammadiyah Malang (UMM) sebagai pemegang inovasi, Kemendikbudristek sebagai pemberi dana, dan mitra industri rumah tangga (IRT) di Sumenep, yaitu CV Bunga Anggrek dan CV Akancatani, sebagai penerima manfaat utama. Sinergi antara akademisi, pemerintah, dan industri ini bertujuan untuk mendorong inovasi yang mampu meningkatkan kesejahteraan masyarakat melalui pengembangan ekonomi hijau. Kegiatan hilirisasi ini dilakukan melalui Focus Group Discussion (FGD), sosialisasi, dan pendampingan intensif oleh tim UMM kepada mitra IRT, dengan fokus pada peningkatan kualitas dan kuantitas produk berbasis koro. Selain itu, pelaksanaan Kuliah Kerja Nyata (KKN) di Desa Grujugan, Sumenep, turut memperkuat upaya ini dengan program kerja yang mengembangkan potensi desa dan memperluas akses pasar produk koro. Secara keseluruhan, kegiatan ini tidak hanya mendukung keberlanjutan usaha IRT berbasis koro, tetapi juga memperkuat daya saing produk di pasar yang lebih luas, mendukung ekonomi lokal dengan adanya peningkatan pendapatan, dan membangun keterampilan masyarakat dalam pengelolaan bisnis yang berkelanjutan. Kegiatan ini juga dapat menjadi inspirasi bagi pengembangan ekonomi hijau di wilayah lain di Madura dan Indonesia. Downstreaming of Functional Food Diversification Prototype Based on Local Koro in an Effort to Develop Healthy Food Products and a Green Economy in Sumenep Abstract This activity aims to downstream a prototype of functional food diversification based on local koro beans in order to develop healthy food products and a green economy in Sumenep. This program is implemented using the Triple Helix approach involving three main components: the UniversitAS Muhammadiyah Malang (UMM) as the innovation holder, the Ministry of Education, Culture, Research and Technology as the funder, and home industry partners (IRT) in Sumenep, namely CV Bunga Anggrek and CV Akancatani, as the main beneficiaries. The synergy between academics, government, and industry aims to encourage innovation that can improve community welfare through the development of a green economy. This downstream activity is carried out through Focus Group Discussions (FGD), socialization, and intensive mentoring by the UMM team to IRT partners, with a focus on improving the quality and quantity of koro-based products. In addition, the implementation of the Real Work Lecture (KKN) in Grujugan Village, Sumenep, also strengthens this effort with a work program that develops village potential and expands market access for koro products. Overall, this activity not only supports the sustainability of koro-based IRT businesses, but also strengthens product competitiveness in the wider market, supports the local economy with the increase in income, and builds community skills in sustainable business management. This activity can also be an inspiration for the development of a green economy in other regions in Madura and Indonesia.
... Despite these advancements, challenges persist, including privacy concerns, data security, and infrastructure limitations (Haleem et al., 2021). Addressing these barriers through an open innovation approach, where consumer insights drive innovation, could significantly improve telemedicine's effectiveness and scalability (Stremersch et al., 2024;Tuominen et al., 2023). ...
... By investing in people and providing them with competencies that promote best practices, empowerment, work-life balance, and well-being (Cooke, Dickmann, and Parry 2022), the firm improves its probability of creating value for the customer (Hemel and Rademakers 2016). A customer-centric focus develops within a firm, leading to a good relationship with customers, an understanding of their needs and preferences, and contributions to innovation, agility, and business growth (Tuominen et al. 2023). A firm involves and motivates all people to interact regularly with customers through systems that prioritize customer experiences and allow employees to make decisions and solve customer problems (Hemel and Rademakers 2016). ...
This study aims to develop and validate a comprehensive measure of firm competitiveness fit , a second‐order composite construct consisting of seven strategic dimensions: vision, leadership, work passion, people‐centric, customer‐centric, infrastructural, and viability. These dimensions have been identified as critical factors that influence a firm's competitiveness; however, there is no widely accepted scale to evaluate them. Therefore, this study aims to provide a comprehensive scale that assesses a firm's competitiveness and links specific practices to improvements or decreases in competitiveness. This study used a mixed‐method approach that included both qualitative and quantitative phases. The qualitative stage involved interviewing 10 C‐suite executives to gain insights into the dimensions' impact on firm competitiveness and to generate items that reflect an understanding of the dimensions. The quantitative phase involved distributing a survey to 188 participants to measure the relationships between the strategic dimensions and firm competitiveness fit and to assess the scale's reliability, validity, and operability. To achieve this goal, PLS‐SEM (partial least squares structural equation modeling) was used. The results reveal that firm competitiveness fit is a composite second‐order construct, and the incorporation of the seven strategic dimensions into the model demonstrates its validity as a reliable predictor of firm competitiveness. This study has implications for theoretical and practical applications.
... Dengan demikian, ruang lingkup manajemen strategis internasional mencakup berbagai aktivitas meliputi penilaian peluang pasar global, perumusan strategi kompetitif internasional, pengelolaan tim lintas budaya, koordinasi rantai pasokan global, serta adaptasi strategi pemasaran ke kondisi pasar lokal. (Tuominen et al., 2022;Vrtaňa & Gogolová, 2020;Agwu & Onwuegbuzie, 2018;Schmid et al., 2016;Griffith & Hoppner, 2013;Moeller & Harvey, 2011;Douglas & Craig, 2010;Click, 2006;Lee, 2004;Yip, 2000;Abboushim et al., 1999;Yip, 1997;Craig & Douglas, 1996;Honeycutt & Ford, 1995;Daniels, 1987;Douglas, 1986;Wind et al., 1973). ...
Manajemen strategi internasional adalah proses menciptakan nilai bagi organisasi dengan memanfaatkan peluang dan mengatasi tantangan yang muncul dari operasi di lintas batas negara. Di dunia yang semakin terhubung secara global, kerangka strategis yang dikembangkan untuk bisnis domestik sering kali tidak memadai, karena para manajer dan mahasiswa bisnis harus belajar berpikir dan bertindak secara global untuk berhasil. (Agarwal, 2023; Dagnino & Resciniti, 2021; Vrtaňa & Gogolová, 2020; Ngo & Igwe, 2019; Agwu & Onwuegbuzie, 2018; Aggarwal & Zhan, 2018; Bartlett & Ghoshal, 2017; Schotter et al., 2017; Gerschewski, 2009; Spulber, 2007; Bhagat et al., 2007; Warnock, 2000; Craig & Douglas, 1996; Porter, 1986).
... These steps may include product diversification, geographic expansion, product and process innovation, deeper market penetration, and strategic partnerships. Innovation strategy has a positive relationship and affects competitiveness [8]. Research and development cooperation with market agents exhibits the highest relationship to innovation, while the impact of institutional cooperation is comparatively lower [9]. ...
Indonesia is a country with great potential in salt production. The high salt imports suggest that the potential has yet to reach its full potential. Salt produced by the coastal communities of Rembang Regency has the potential for further development. The research objective is to identify the development strategy for the salt business in Rembang Regency by analyzing internal and external factors through SWOT analysis. The research results show that internal factors of the salt business include supporting and inhibiting factors. The lack of electronic media usage and promotion are inhibiting factors, while education level, age, and experience are supporting factors from the internal perspective. External inhibiting factors for the salt business include business competition. External supporting factors include the availability of raw materials, enabling increased production. With both supporting and inhibiting factors from internal and external perspectives, the development strategy for the salt business in Rembang Regency involves enhancing digital and online promotion and marketing skills and improving product quality to enhance competitiveness.
... The foundation of any effective business strategy is customer relationship orientation, and companies can build lasting relationships and promote business expansion by putting customers' interests first, providing outstanding service, making constant adjustments to meet their demands, and continuously adapting to their changing expectations [12]. A Sustainability 2024, 16, 6685 4 of 30 customer-oriented company emphasizes transparent communication, efficient problem solving, and exceptional service. ...
Customer relationship management (CRM) has become increasingly important as a result of the pressure organizations are under to remain competitive. CRM has been and is widely promoted as essential to a company’s ability to survive. According to this study, CRM is more than just a computer program or software package. We believe that for organizations to use CRM effectively, it must be viewed from a strategic point of view. Therefore, this study focuses on the consequences of digital marketing on business performance, specifically, the consequences of customer relationship orientation and the use of CRM technologies as a support for analysis, data integration, and access on business performance. This study addresses a contemporary and relevant research problem that has national and international relevance. The research is based on quantitative methods to test hypotheses. Data were gathered from 73 organizations. The findings show the relationships between CRM and customer satisfaction, market effectiveness, and profitability. Customer relationship orientation positively affects customer satisfaction, market effectiveness, and market profitability. CRM technologies significantly improve business performance. This research contributes to the existing knowledge by shedding light on the complex relationships among CRM, customer relationship orientation, market effectiveness, market profitability, and customer satisfaction. Based on the research results, we provide practical recommendations for managers and decision makers.
... According to Yeniaras, Kaya, and Dayan (2020), a business strategy should be responsive to change and flexible, as a flexible strategy positively affects business linkages and financial and non-financial performance. Companies should focus on the wants and needs of customers and on retaining existing customers or establishing relationships with customers in international markets (Tuominen et al., 2022). ...
The paper aimed to examine the changing organisational and management structures in Czech and Dutch companies, emphasising the importance of adaptability and resilience today. The research methods used in the study used a strong comparative approach to analyse the detailed differences and statistical significance between the organisational and management frameworks of these two locations, utilising Chi-Square and ANOVA One-Way analyses. This analytical method enables us to accurately measure the frequency and effects of different management approaches, establishing a solid statistical foundation for our comparison analysis. The research shows a clear shift towards using agile and hybrid models in these companies, emphasising these structures' vital role in improving operational flexibility and market adaptability. This transition is not just a reaction to present market forces but a deliberate repositioning to safeguard companies against global economic risks in the future. The study has consequences that go beyond regional borders and provide significant insights for businesses globally. The study's results demonstrate how agile and hybrid frameworks can effectively promote resilience and responsiveness in businesses facing rapid change and global market challenges. This study emphasises the importance of strategic adaptation for modern corporate performance and offers a guide for companies aiming to navigate today's complex economic environment. This study adds to the overall discussion on organisational strategy by providing practical insights for companies seeking to stay competitive in a constantly changing environment.
... These methods require setting a minimum support threshold to identify frequently purchased items. However, a low threshold can lead to an overwhelming number of weak association rules and high computational demands [3,4]. This study proposes a paradigm shift by focusing on customer segmentation instead. ...
In the realm of understanding consumer purchasing behaviors and refining decision-making across diverse sectors, Market Basket Analysis (MBA) emerges as a pivotal technique. Traditional algorithms, such as Apriori and Frequent Pattern Growth (FP-Growth), face challenges with computational efficiency, particularly under low minimal support settings, which precipitates an excess of weak association rules. This study introduces an innovative approach, termed Customer-Centric (CC)-MBA, which enhances the identification of robust association rules through the integration of consumer segmentation. By employing Recency, Frequency, and Monetary (RFM) analysis coupled with K-means clustering, customers are categorized based on their purchasing patterns, focusing on segments of substantial value. This targeted approach yields association rules that are not only more relevant but also more actionable compared to those derived from conventional MBA methodologies. The superiority of CC-MBA is demonstrated through its ability to discern more significant association rules, as evidenced by enhanced metrics of support and confidence. Additionally, the effectiveness of CC-MBA is further evaluated using lift and conviction metrics, which respectively measure the observed co-occurrence ratio to that expected by chance and the strength of association rules beyond random occurrences. The application of CC-MBA not only streamlines the analytical process by reducing computational demands but also provides more nuanced insights by prioritizing high-value customer segments. The practical implications of these findings are manifold; businesses can leverage this refined understanding to improve product positioning, devise targeted promotions, and tailor marketing strategies, thereby augmenting consumer satisfaction and facilitating revenue growth.
... Fast-growing businesses across sectors and increasing technological advances today require an organization to have an advantage to remain able to compete. (Matalamäki & Joensuu-Salo, 2022;Tuominen et al., 2023). This advantage would be achievable if the company had a competent human resource. ...
The role of work culture in improving employee performance is very important. In this case, every organization needs a good environment so that employees have satisfaction when doing their work. This research aims to look at the role of work culture on employee performance with job satisfaction as a mediator for MSME employees in the city of Bandung. This research used a descriptive verification approach, 118 employees were sampled and the technique used used a structural equation model with the help of Amos software version 21. Primary data from this research was obtained from a questionnaire. Meanwhile, secondary data was obtained through notes, publications, and literature. The research results show that organizational work culture has a positive and significant effect on job satisfaction and employee performance, and work culture has a positive effect on performance through job satisfaction. This research is proposed to determine aspects of work culture that are related to employee performance in MSMEs in the city of Bandung and also emphasize aspects of employee job satisfaction that have an impact on performance. It is hoped that the research results can expand the treasures of management literature, especially in the field of HR.
... These methods require setting a minimum support threshold to identify frequently purchased items. However, a low threshold can lead to an overwhelming number of weak association rules and high computational demands [3,4]. This study proposes a paradigm shift by focusing on customer segmentation instead. ...
... Additionally, among the factors, "Targeting how to finance the business" and "Choosing the appropriate marketing and advertising strategy (traditional, digital, face-to-face, etc.)" and "Communications with strategic stakeholders", respectively related to the dimensions of "Financial management of the business process", "market study and analysis" and "extraorganizational communications" are the most repeated among the extracted factors. Monitoring the fulfillment of detailed business goals ✓ 2 (19) , (14) Product design based on customer needs and market feedback (product and market fit) ✓ Start the activity by focusing on the main goal ✓ 5 (16), (44), (51), (13), (16) Market study and analysis Choosing the right marketing and advertising strategy (traditional, digital, face-to-face, etc.) ✓ 13 (53), (37), (45) , (50), (24), (25), (38), (18), (13), (15) , (46), (49) Agility in replacing primary resources ✓ Speed in decision making ✓ 1 (5) ...
Background: In the dynamic landscape of healthcare, start-ups drive transformative change. Understanding the pivotal factors influencing their success is paramount to their advancement. This study aims to present a comprehensive framework delineating the drivers of success for emerging businesses in healthcare.
Methods: Employing a mixed-method approach, this research integrates expert interviews and a systematic review of pertinent literature. Extensive scientific exploration across databases, augmented by manual searches and expert surveys, identified 57 influential factors from 37 selected articles and interviews. Through expert consultations, additional factors were incorporated, culminating in an 11-dimensional classification. Finally, the position of the factors in 4 stages (before starting the business, during the activity, evaluation, control and feedback) was determined, and the final model was extracted.
Results: Based on the inclusion and exclusion criteria, a total of 37 articles were reviewed. Eleven dimensions were utilized to classify the 57 factors identified in this study. The factors "choosing the appropriate marketing and advertising strategy" and "targeting how to finance the business" had the highest number of repetitions in the studies; 49% of these factors were related to the stage "before starting the business", and 33% were related to "during activity".
Discussion: To ensure growth and development at various stages of business formation, founders of start-up businesses in the healthcare sector need to carefully consider the factors that impact success, particularly business financing and marketing and advertising strategies.
... Customer-centric operations in information enterprises can be realized through methods like creating customer personas and journey maps, customizing offerings using data insights, providing seamless experiences across platforms, and promoting engagement and co-creation. An additional facet involves the ongoing measurement and enhancement of customer outcomes and the inherent value they receive [3,4] . ...
This research emphasizes the vital role of machine learning-driven consumer complaint management in information enterprises facing a surge in customer feedback across channels. By automating complaint categorization, analysis, and response, machine learning streamlines operations and uncovers invaluable customer insights. The study introduces a novel classification model, with LGBMClassifier and LinearSVC algorithms standing out for achieving 76.78\% and 79.37\% accuracy, respectively. This approach enhances complaint resolution, customer satisfaction, and enterprise competitiveness. The integration of machine learning offers a practical solution to consumer complaint challenges, with future prospects including adaptability to evolving preferences and leveraging natural language processing for deeper sentiment analysis.
... This is under what was conveyed by Tuominen et al. (2023), educational institutions and institutions are quality-oriented institutions that are focused on two customers, namely internal and external customers (Madzík et al., 2019): first, school principals, teachers, and employees who provide services to students and students who directly receive services (internal). Second, external customers consist of students, community parents, governors, and student sponsors who have direct interests individually or in groups and parties who have an important role, such as the government and society. ...
The research was conducted at Yadika Lubuklinggau High School, Musirawas Regency, South Sumatra Province, aiming to determine the planning, organization, and implementation of supervision to improve quality. This research was conducted with a qualitative approach and used a case study methodology. The data collection technique is carried out by; observation, interviews, and documentation. The focus of the research is supervisory management to improve quality, with a sub-focus; on planning supervision, organizing supervision, and implementing supervision to improve the quality of Yadika Lubuklinggau High School, Musirawas Regency, South Sumatra Province. The research novelty is the time stamp camera application for attendance at Yadika Lubuklinggau High School. This research produces a supervision model at Yadika Lubuklinggau High School, where planning, organizing, and implementing supervision is carried out in predetermined stages and adds feedback from teachers as actors in the field so that the overall results provide an increase in the quality of Yadika Lubuklinggau High School as indicated by accreditation. A, student achievement at local, regional, and national levels.
... According to Solikahan & Mohammad (2019), entrepreneurial orientation refers to processes, practices, and decision making that encourage new directions and have three aspects of entrepreneurship, which are always innovative, act proactively and take risks. A business person who applies an entrepreneurial approach in planning his company's development strategy will focus more on meeting customer satisfaction (Tuominen et al., 2023). In addition, they will continue to monitor the extent to which their products can meet or even exceed customer expectations. ...
Purpose: This study aimed to test and analyze the effect of resource based view strategy, entrepreneurial orientation and innovation on competitive advantage in the canteen of Universitas 17 Agustus 1945 Surabaya. Design/methodology/approach: The saturated sample approach was applied, and as many as 44 samples or 22 canteens were acquired. SEM PLS is the analysis approach used in this study. Findings: The study's conclusions indicated that the resource based view strategy affects competitive advantage. The influence of both entrepreneurial orientation and innovation on competitive advantage has been found. Implications: The implication of this research was that business actors at the canteen of Universitas 17 Agustus 1945 Surabaya could improve the resource based view strategy, entrepreneurial orientation and innovation to increase competitive advantage; and the results of this study could complement to the study of factors that can be used to increase competitive advantage for business actors in the canteen of Universitas 17 Agustus 1945 Surabaya.
... В настоящее время существует целый арсенал цифровых инструментов по взаимодействию компаний со своими клиентами, что становится областью активных академических исследований. Отмечается, что современный контекст бизнеса -дороговизна привлечения новых клиентов, снижение платежеспособности населения, ограниченный рост на внутренних рынкахтребует от компании применения клиентоориентированного и клиентоцентрированного подходов, смещая ее внимание с привлечения клиентов на их удержание (Arenkov, Krylova and Cenzharik, 2017;Blake, 2019;Tuominen et al., 2022). Исходя из этого развитие современных стратегических подходов и инструментов управления направлено на снижение оттока клиентов и увеличение такой метрики эффективности управления, как CLV (Customer Lifetime Value) -пожизненная ценность клиента как способность извлекать прибыль из клиентского капитала (Kumar and Reinartz, 2012). ...
В статье определяются особенности рыночного поведения отечественных компаний в части внедрения ими цифровых технологий в процесс взаимодействия с потребителями, который реализуется через каналы коммуникаций и продаж и характеризуется как омниканальность. Исследовательский вопрос состоит в том, чтобы определить направления и уровень интеграции каналов продаж и выявить, как она связана с применяемой в компании практикой работы с данными. В результате выявлены тенденции, параметры и барьеры внедрения цифровых инструментов в управление взаимодействием с участниками рынка. Представлен системный анализ современных теоретических подходов к формированию рыночных стратегий компаний, систематизированы параметры, влияющие на их разработку, а также факторы, ограничивающие внедрение цифровых технологий в процессы взаимодействия с потребителем в российских компаниях. Прикладное значение имеют результаты авторского эмпирического исследования, позволившего проанализировать уровень взаимодействия с потребителями и проверить связанные с этим практические гипотезы. Для обоснования выводов применены описательные статистики, корреляционный анализ, методы кластеризации, построены регрессионные деревья и логит-модели. Область практического применения результатов исследования — управление каналами продаж и цифровых коммуникаций. Продемонстрировано, что в качестве ключевого препятствия для развития омниканальных стратегий выступают факторы слабо развитой «культуры работы с данными» и связанной с этим недостаточной интеграции каналов продаж и коммуникаций. Показан потенциал цифровизации маркетинга отечественных компаний, направления подготовки квалифицированных специалистов, а также разработки доступных и простых в использовании ИТ-решений.
... Innovation culture has been argued to be an integral aspect of the other types of organizational culture. For example, in a study by Tuominen et al (2023), their research examined the role of customer orientation and customer relationship orientation as distinct constructs in driving firm innovativeness and supporting business growth among export firms. The study suggested that while customer orientation and customer relationship orientation independently drive innovativeness, they do not directly affect business growth. ...
The study investigated the role played by the dimensions of organizational culture in a strategic management process to help organizations in the hotel industry realize business recovery in a post-COVID-19 period. The conceptualization of the study relied on the strategic thinking lens preceding strategic management processes to situate the role of organizational culture in the strategic management processes undertaken at the strategy formulation phase. The element of organization's mission was argued to be the relevant practice for anchoring culture into the strategy formulation process. Four types of organizational culture were studied in business recovery. Three objectives guided the study focusing on the extent of the adoption of culture types, levels of business recovery attained and the effect of the level of adoption on the level of business recovery attained. A sample of 57 hotels was selected and 189 respondents were drawn from functional units in each of the hotels. The study reports that the level of adoption of the culture is at a high level while the extent of business recovery is at a moderate level of between 20-40% growth. Innovation culture does not have a significant statistical effect while market, customer orientation and adhocracy cultures have a significant statistical effect on the level of business recovery. The study concludes that the relevant cultures were responsible for aligning culture with the strategy formulation phase through the component of the mission of an organization and that the process needs to embrace combined attributes of the underpinning theories of RBV and the organizational culture theory. The study calls on future research to integrate more aspects of strategic thinking and consider using more objective sources of research data.
... Through underpinning the strategic management apparatus with a customer-centric approach, corporations are empowered to encapsulate the market's expectations (Giannakis et al., 2020), formulate manufacturing and marketing activities suitably , foster brand love (Palusuk et al., 2019), and ultimately stimulate purchaser loyalty (Helme-Guizon & Magnoni, 2019), which is essential for sustainable firm value (Jung et al., 2020;Kang et al., 2019). In sum, customer engagement is associated with improved sales, brand authority, and competitive advantage, leading to its crucial role in strategic marketing (Ho et al., 2022;Hollebeek et al., 2021;Tuominen et al., 2022). ...
The COVID-19 pandemic reinforced concern over sustainability and necessitated increased corporate social responsibility (CSR) presence. Besides, merely multiplying generic CSR messages would be perceived as greenwashing and thus counter-productive. In this study, we combine social media analytics capabilities and the analytical hierarchy process (AHP) to offer a customer-centric CSR marketing framework. First, we analyzed two months’ worth of Twitter data from countries in the US, UK, and India and reviewed the relevant literature on cellphone sustainability to identify 15 cellphone life cycle issues as alternatives. Then, we drew on the marketing notion of net promoter score (NPS) and the United Nations’ sustainable development goals (SDGs) along with product topic modeling to perform sentiment and network analysis and produce three criteria. Finally, AHP was employed with resultant criteria and alternatives to offer a unique ranking of CSR issues for the three countries. Sensitivity analyses were also conducted to check the results and find new robust rankings. Although phase consumption had the highest weight in the three countries, the phase end-of-life occupied the second position in developed countries, while phase production had this rank in the developing country of India. Local and global ranking of CSR issues was also determined. The contributions of this paper have significant implications for scholars and businesses, offering sustainability priorities via integrating customer engagement.
The incorporation of Artificial Intelligence (AI) within Industry 5.0 significantly enhances resilience among small businesses. This chapter explores how AI transforms resilience, sustainability, and customer engagement strategies. With AI Small businesses can analyze large datasets to identify risks, optimize operations, and deliver personalized experiences that align with consumer expectations. AI's ability to process data efficiently allows businesses to anticipate market changes and navigate uncertainties. Additionally, adopting AI fosters a culture of resilience, encouraging employees to embrace change. AI also supports sustainable practices by optimizing resource use and reducing waste. Customer engagement improves through AI-driven personalization, allowing businesses to tailor products and services to individual preferences. The chapter concludes with recommendations for small businesses: invest in employee training for AI collaboration, ensure leadership commitment, prioritize sustainability, and foster a culture of adaptability to thrive in today's Industry 5.0.
This study examined the effectiveness of loyalty programs on customer retention within The Foschini Group (TFG) in Zambia, motivated by challenges including a 4% annual profit decline, inflation, power cuts, and a $1.5 billion turnover reduction in Africa. Despite introducing loyalty programs like "TFG Rewards & More" (TFGRM) and "My TFG World Reward" (MTFGWR), sales dropped from 20% in July 2023 to 5.2%, raising concerns about their impact on retention. The study aimed to evaluate the impact of these programs on customer retention and the role of external business challenges. Using a quantitative, cross-sectional design, structured questionnaires were administered to 200 participants, including customers and employees from brands like Markham, Woolworths, and Exact, in Manda Hill, Lusaka. Likert-scale questions measured perceptions, while regression analysis identified relationships between program features and retention. Findings revealed that reward variety in TFGRM significantly influenced customer loyalty, with satisfaction being a key driver. Expanding and diversifying reward options was recommended. Personalized rewards had minimal impact, but overall program satisfaction emerged as critical for retention. In MTFGWR, frequent reward usage and satisfaction enhanced loyalty, though perceived value for money was less significant. Customers preferred quality experiences over monetary savings, prompting recommendations to focus on experiential rewards. External challenges, like inflation and power outages, moderately affected loyalty, highlighting the need for transparent customer communication. To address competitive pressures, the study suggested enhancing customer experience through technological innovations such as mobile apps and virtual support. These strategies can help TFG improve retention and sustain competitiveness in a challenging market environment.
Firms’ perceived innovativeness endows multinational corporations with a unique competitive edge among consumers. Although stakeholder orientation drives firms’ innovation, the mechanisms by which consumers’ perceptions of firms’ orientation toward key stakeholder groups, like customers, employees, and society, affect perceptions of firm innovativeness remain underexplored, especially in different countries. Certain stakeholder orientations may be advantageous in one country but not in another. To address this gap, this study leverages information integration theory to analyze how strong perceptions of customer, employee, and society orientations influence firm innovativeness perceptions differently across 22 countries and how these influences are moderated by country development in an important contingency perspective. Through multilevel structural equation modeling, the authors reveal novel and surprising effects of stakeholder orientations and astonishing variations in more versus less developed countries. They offer actionable insights for decision-makers aiming to grasp the intricate ways in which communicating stakeholder orientations shape consumer perceptions of firm innovativeness internationally.
Purpose
The purpose of this study is to investigate the intricate relationship between digitalization, entrepreneurship and financial/digital literacy in the Nordic countries from 2010 to 2022. By integrating both demand (social impact) and supply (business response) perspectives, the research aims to provide a comprehensive understanding of how digital transformation influences entrepreneurial activities. It addresses gaps in the existing literature, particularly the need for long-term analysis and the exploration of entrepreneurial actions within specific systemic contexts.
Design/methodology/approach
Several indicators were used to measure digitalization, entrepreneurship and financial/digital literacy from secondary sources. The methodology employed in this study involved the estimation of dynamic linear models to investigate the evolving relationship between digitalization and entrepreneurial activity. First, a bias-corrected test for the Granger noncausality test was used. After this preliminary analysis, the estimation autoregressive model with bias correction and time effects was applied, followed by an alternative model entitled the autoregressive distributed lag model (ARDL), selecting the pooled mean group and dynamic fixed effect estimators.
Findings
Key findings highlight the pivotal role of digitalization drivers such as e-commerce, CRM integration and investments in R&D in shaping innovative business models. Furthermore, the study emphasizes the entrepreneurial potential unleashed by widespread Internet adoption, particularly among diverse countries. The results also reveal the significance of R&D in periods of disruption and the intertwined relationship between digital and financial literacy and entrepreneurship. Notably, the study underscores the importance of a holistic understanding as e-commerce and e-banking intertwine to enhance financial and digital literacy.
Practical implications
Practical implications suggest policymakers support entrepreneurs through training programs, while businesses are encouraged to adapt strategies and prioritize innovation in digital environments. The study advocates for a strategic and long-term perspective to address the implications of digitalization on entrepreneurship, highlighting the critical role of research and development in fostering innovation during disruptive phases.
Originality/value
The novel contribution of this research lies in its thorough examination of the intricate relationship between digitalization, entrepreneurship and financial/digital literacy, particularly within the Nordic countries. By bridging gaps in existing literature and focusing on entrepreneurial behaviours within specific systemic contexts, the study offers valuable insights into the nuanced dynamics at play.
This case study provides an in-depth analysis of the ascent of Vietnamcacao in the global cocoa industry. It begins with an overview of the global cocoa industry, noting its significance and challenges, and compares it with the burgeoning Vietnamese cocoa market. The case highlights Vietnamcacao’s establishment in 2004, formerly named Thanh Phat Cocoa, and emphasizes its focus on consumer health and well-being, as well as its diverse range of cocoa products. The narrative delves into the company’s strategic positioning, which leverages Vietnam’s unique climate and cultural heritage in cocoa cultivation. The findings reveal that Vietnamcacao’s effective market positioning, stringent quality control, commitment to sustainability, and continuous innovation are all elements key to its success. These factors have enabled the company to carve out a niche in the highly competitive global cocoa market. The case also addresses the challenges and opportunities Vietnamcacao faces in its global expansion efforts, including market entry strategies, product diversification, and brand building. This study underscores the importance of Vietnamcacao’s sustainable and ethical practices, which align with the growing global demand for ethically sourced and environmentally conscious products. It also examines the company’s collaboration with international partners, such as its mutual trade agreement with Belgian chocolate producer Libeert, highlighting its strategy to enhance global presence and recognition. In sum, this case study presents a comprehensive view of Vietnamcacao’s journey from a local manufacturer to a global contender. It discusses the company’s strategic decisions, as well as the challenges it has overcome and the opportunities it has seized, thereby offering insights into how a company from an emerging cocoa-producing country can establish itself on the global stage.
The public procurement of innovations is a demand-side policy instrument that harnesses supplier innovations to improve products and services delivered to the customers. This study analyses a nation-wide survey of Finnish public sector contracting authorities. A sequential mediation model suggests that the public sector buyer’s market-oriented culture is positively associated with the procurer’s strategic procurement capability, which in turn predicts the use of public procurement of innovations to create customer value for customers. These results are robust to a potentially biased perception of customer performance.
In international marketing research, innovativeness is usually considered as an important element for firms that adopt an export orientation and that wonder about their success in foreign markets. It might help exporters to better ensure their international orientations. This study aims to test the relationship between institutional orientation, innovativeness, and export performance. It also aims to test the mediating effect of innovativeness in the relationship between institutional orientation and export performance. For this reason, a questionnaire was administered to 260 exporting companies. Results show that institutional orientation has an effect on export performance, especially through its dimension “conformity.” They also show that innovativeness can mediate the link between institutional orientation and export performance.
The healthcare industry in Kenya is going through many challenges including reduced funding, shortage of staff, technological innovations and changing customer expectations which puts pressure on public hospitals to attain competitive advantage. The purpose of the study was to examine the influence of customer relations capabilities on competitive advantage of Level 5 public hospitals in Kenya. This study was anchored on dynamic capabilities theory. Positivism philosophy applied, where a descriptive correlational research design and a structured questionnaire were applied to gather quantitative data. The study focused on 33 Level 5 public hospitals in Kenya and the study population comprised of 495 CEOs, departmental heads and administrative heads of all the Level 5 public hospitals. Stratified random sampling was used to pick a sample of 222 respondents. The study’s data analyses involved descriptive statistics (frequencies, means and standard deviations) and inferential analysis (simple linear regression analysis). The findings revealed that customer relations capabilities had a statistically significant and positive effect on the competitive advantage of Level 5 public hospitals in Kenya (β = 0.629, p < 0.05). The study concluded that customer relations capabilities are instrumental towards attainment of competitive advantage of the Level 5 public hospitals in Kenya. Based on the conclusion of the study, it is recommended to the top management of level 5 public hospitals to adopt systems and processes in their hospitals that gathers information to investigate customer needs.
The healthcare industry in Kenya is going through many challenges including low funding, shortage of staff, technological innovation huddles and changing customer expectations which puts pressure on public hospitals to attaining competitive advantage. The purpose of this study was to examine the influence of customer relations capabilities on competitive advantage of Level 5 public hospitals in Kenya. The study was anchored on dynamic capabilities theory. Positivism philosophy applied, where a descriptive correlational research design was adopted. A structured questionnaire was applied to gather quantitative data. The study focused on 33 Level 5 public hospitals in Kenya and the study population comprised 495 Chief Executive Officers (CEOs, departmental heads and administrative heads of all the Level 5 public hospitals. Stratified random sampling was used to pick a sample of 222 respondents. The study’s data analyses involved descriptive statistics (frequencies, means and standard deviations) and inferential analysis (simple linear regression analysis). The findings revealed that customer relations capabilities had a statistically significant and positive effect on the competitive advantage of Level 5 public hospitals in Kenya (β = 0.629, p < 0.05). The study concluded that customer relations capabilities are instrumental towards attainment of competitive advantage of the Level 5 public hospitals in Kenya. Based on the conclusion of the study, it is recommended to the top management of level 5 public hospitals to adopt systems and processes in their hospitals that gathers information to investigate customer needs.
The cases of customer relationship management (CRM) address key CRM issues which are: the conceptualization and implementation of CRM by practitioners as well as the customer building blocks of CRM to manage winning and sustainable customer relationships. The first case focuses on the conceptualization of the CRM approach and practices by an MNC, Berger Paints Bangladesh Limited, the market leader of paint and coating products in Bangladesh. This case presents how the company comprehends customer relationships, the end goals of CRM activities, and the working patterns of CRM. The case also highlights how the understanding is nourished within the organization and how it brought innovation in such practices including the shift from customer relationship management approach to comprehensive relationship management approach. The second case is on Mutual Trust Bank Limited (MTB), a leading 3rd generation financial services provider in Bangladesh, and is about how it deals with customer-centricity—one of the primary building blocks of CRM. This case focuses on the ways MTB understands customer centricity along with its constituents and the reasons why it does or does not consider customer-centricity as a CRM building block. The case also explores whether MTB has the requisite characteristics to be a customer-centric organization to build CRM on its terms. Furthermore, it presents the relationship building blocks with specific reference to customer-centricity, considered and practiced by the case company. The third case deals with the underlying dimensions that are considered by an MNC, Robi Axiata Limited while applying the IDIC (e.g., Identification, Differentiation, Interaction, and Customization) framework for customer relationship management. The case highlights the ways the company conceptualizes the IDIC framework as well as the specific steps it follows when applying the IDIC framework across different products in a price-sensitive B2C market. The case also demonstrates the strengths and strategies around CRM that Robi enjoys and uses to offer top-notch service quality at a minimum rate.
El presente artículo de revisión tiene como objetivo aumentar la literatura sobre el desarrollo exportador de las PYME peruanas a través de e-marketplace, esto debido al continuo avance de la tecnología de Internet y la intensificación del comercio electrónico. El análisis de la presente investigación se realizó mediante una revisión bibliográfica sistemática, en la cual se seleccionaron un conjunto de artículos relacionados con desarrollo exportador y marketplace, siguiendo algunos criterios por conveniencia con el fin de extraer información acertada y fiable. Se utilizó como criterio de inclusión los artículos de revistas sobre marketplace y desarrollo exportador, horizonte temporal, y límites de búsqueda, y como criterio de exclusión libros, artículos de conferencia, editoriales y comentarios. Tras la iteración realizada, la muestra final incluye 40 artículos de revistas y se concluyó que existen pruebas empíricas más que suficientes para establecer la existencia de una relación positiva entre desarrollo exportador y los e-marketplace. Este estudio propone la capacidad de transformación digital de las empresas que optan por el comercio electrónico transfronterizo (e-marketplace) como variable que afecta su rendimiento exportador.
The authors build on conceptual and analytic evidence to argue that firms can increase performance by shifting emphasis away from customer retention strategies toward customer acquisition strategies as competitive density (i.e., the number of competitors) increases and the marketplace becomes more dynamic. Empirical research using four data sources for a single artistic industry produces strong support for the moderation hypotheses. When competitive density is low, a customer retention strategy emphasizing close relationships with customers and adaptive learning enhances performance. When competitive density is high, a customer acquisition strategy emphasizing innovation and competitor learning enhances performance. Four key takeaways emerge. As competitive density increases, (1) the financial impact of choosing the right mix of resources and capabilities increases; (2) close customer relationships become liabilities, providing no revenue benefits and exerting a negative effect on net income; (3) close relationships with suppliers increase revenues but also expenses, so that net income decreases; and (4) adaptive learning lowers revenue and, even more so, expenses, so that net income increases. The authors discuss the implications of these findings and identify combinations of resources and capabilities that achieve different performance objectives.
Purpose
The purpose of this paper is to advance a theoretical framework that incorporates the relationship between market challenge and learning and customer orientations, and the influence of these orientations on innovativeness in an international joint venture (IJV) context.
Design/methodology/approach
The authors estimate a structural equation model utilizing survey data collected from 199 IJVs in the Republic of Korea.
Findings
The authors found that while market challenge does not influence learning orientation in IJVs, it does have a significant positive influence on customer orientation. Further, the authors’ findings support that both learning orientation and customer orientation have positive impacts on IJV innovativeness. Another interesting finding shows that the impact of learning orientation on IJV innovativeness is significant only when IJVs have high levels of interaction with parent firms. The study also reveals that having a strong learning orientation amplifies the impact of customer orientation on innovativeness in IJVs.
Originality/value
Despite increased interest in IJVs, there has been relatively little work linking IJV innovativeness with learning and customer orientations. The study contributes to recent streams of research that seek to understand the role of these orientations in IJV innovativeness.
The traditional marketing approach advocates the marketing mix principles and the quest for market share dominance through mass marketing techniques and a focus on new customer acquisition. This approach has guided managers for decades in planning and implementing their marketing srategies. However, several author s have drawn attention to the inadequacies of the traditional marketing approach, which led to the birth of relationship marketing (RM). RM advocates supplier- customer interaction and maintaining long-term relationships with a focus on customer retention. Customer retention, in the traditional marketing approach, is however seen as the `end’ rather than the means to deliver ing long-term profitability to firms. This paper discusses key issues pertaining to customer retention management, namely its definition, forms of measure, benefits and potential strategies for application. It uses examples from a variety of contexts. It is proposed that customer retention should be part of the strategic marketing planning process. Customer retention, we envisage, is a potentially potent marketing management strategy. Further research is also recommended.
Planning and improvisation are depicted as alternate decision-making orientations in the strategy process literature, executed by two parallel cognitive contexts: rational or intuitive, but can rationality and intuition be harmonized in the strategy process? Strategic managers may not have to choose to either plan or improvise, rather there is a need to shift the focus of research from such trade-offs to paradoxical thinking. Drawing on survey data from Malaysian research-intensive firms, we investigate how strategy develops through managers’ strategic reasoning under key external (market turbulence) and internal (centralization, manager level) contingencies. In contrast to common assumptions in the management literature, we find that both rational and intuitive reasoning can drive planning and improvisation for firms in emerging economies, with additional positive moderation effects under centralization and manager level. Firms that achieve high levels of both planning and improvisation concurrently are characterized by significantly greater rationality relative to the high planning group and the high improvisation group. The findings extend strategy process research, highlighting how firms in emerging economies differ from theory derived from developed economies.
C ustomer Relationship Management (CRM) is premised on the belief that developing a relationship with customers is the best way to get them to become loyal and that loyal customers are more profitable than non-loyal customers. 1 Frederick Reichheld has argued that a company can achieve significant increases in profits from only small improve-ments in customer retention rates. The strategy is to engineer increased cus-tomer retention, often with strategies labeled as CRM or Customer Loyalty Marketing. Research indicates that these schemes are generally liked by customers. 2 In recent years, the academic marketing community has began to ques-tion some of the key premises that are used to support CRM in general, and relationship marketing and customer loyalty programs in particular. These acad-emics base their skepticism on two sources of information. One is a 30-year research tradition that focuses on the empirical patterns of purchasing for a wide variety of consumer products and services. The second is some emerging research that tests the key assumptions that underpin CRM and the effectiveness of the CRM tactic of customer loyalty programs.
As we enter the twenty-first century, the marketing function remains concerned with serving customers and consumers effectively. The authors propose that just as the marketing function gradually shifted from mass marketing to segmented marketing in the twentieth century, it will increasingly move toward customer-centric marketing in the next century. In the practice of customer-centric marketing, the marketing function seeks to fulfill the needs and wants of each individual customer. The antecedents of customer-centric marketing are the increasing pressure on firms to improve marketing productivity, increasing market diversity in household and business markets, and technology applicability. On the basis of the shift toward customer-centric marketing, the authors expect increased importance of marketing as a “supply management” function, customer outsourcing, cocreation marketing, fixedcost marketing, and customer-centric organizations. This article highlights the implications of customer-centric marketing as well as the boundary conditions that will affect its adoption.
Throughout the past four decades, researchers have examined several antecedents and consequences of international marketing program standardization. However, the findings reported in the literature are too fragmented to yield clear insights. To address this issue, the authors conduct a meta-analysis to quantitatively synthesize and analyze the empirical findings on antecedents and consequences of international marketing program standardization.
The empirical results reported in this study have been integrated from 110 independent samples published in 108 articles. Multivariate analysis is used to examine the antecedents of international marketing program standardization strategy as well as the interdependence between the four elements of the marketing-mix. In addition, meta-regression analyses and subgroup analyses are performed to test potential moderating effects of performance measurement characteristics on marketing standardization-performance relationship.
On the basis of the results, the authors discuss the implications of their findings and provide directions for further research.
The choice of entry mode in foreign markets is an important strategic decision with major consequences for the success of international new ventures (INVs). It is generally accepted that these firms choose relatively low-resource commitment entry modes to operate in foreign markets. Nevertheless, some researchers have suggested that higher resource commitment entry modes in foreign markets also seem to be competitive strategies for INVs. In this study, from a marketing/international entrepreneurship interface perspective and focusing on organizational issues, we center our attention on international market orientation as a neglected yet important factor in INVs’ choice of higher resource commitment entry modes in foreign markets. We suggest that an entrepreneurial orientation and the timing of international entry are important correlates to an international market orientation. We also suggest that the international learning effort of INVs through their international market orientation has a direct, positive impact on the resources these companies commit to their foreign markets through the use of higher resource commitment entry modes. Accordingly, the model proposes a positive effect of entrepreneurial orientation and early international entry on international market orientation which, in turn, is positively related to higher resource commitment entry modes. The hypotheses were tested on country-level data from Spain, using a structural equation model to analyze relationships between the latent variables.
Although the merits of maintaining a market orientation have been extensively discussed in the literature, studies examining the empirical link between market orientation and performance have shown mixed results. The authors explore the relative performance effects of various dimensions of market orientation using a longitudinal approach based on letters to shareholders in corporate annual reports. Furthermore, the authors examine the relative effects of alternative strategic orientations that reflect different managerial priorities for the firm. The authors also extend previous work by considering the mediating effects of organizational learning and innovativeness on the orientation-performance relationship. The results show that firms possessing higher levels of competitor orientation, national brand focus, and selling orientation exhibit superior performance.
The paper uses data from the Swedish Customer Satisfaction Index together with performance data from competing industries to study the difference in logic in terms of customer satisfaction and loyalty between services and products. We find that for product firms loyalty can have a negative effect on company performance, while for service firms the effect is positive. The implication is that service firms must earn their loyalty but product firms can lower their prices and thus retain their customers.
The authors employ a resource-based view perspective to understand how a set of capabilities (organizational learning, relationship, and quality capabilities) influences product strategy (product quality and product innovation) and export performance (relationship performance and economic performance). Using two types of respondents from the same firm, they find strong support for the capability-strategy-performance link. The results indicate that managers should invest in relationship management capabilities to improve product innovation and product quality, which in turn leads to export performance enhancement. Furthermore, the findings reveal that though product quality is a critical aspect in international markets, both product innovation and relationship performance play a greater role in enhancing economic performance. The authors conclude with implications for international marketing theory and practice.
Purpose
Despite failure rates of around 30 per cent, international joint ventures (IJVs) continue to grow. It is argued that IJVs provide a platform for organisational learning, which facilitates organisational performance. Intuitively, IJVs that are learning oriented should have a positive impact upon organisational performance. However, it is unclear as to whether a firm in an IJV should focus more on being learning oriented, or market oriented. The paper aims to address this question.
Design/methodology/approach
A survey of 168 senior managers involved in IJVs in Malaysia. Data were analysed using two‐stage least squares estimators for latent variable models.
Findings
Results suggest that for IJVs, a market orientation has a more positive impact on organisational performance than a learning orientation. The non‐linear relationship between market orientation and performance suggest that larger gains in performance are achieved by firms who have low initial levels of market orientation. Thus, in the absence of one or the other, it is preferable for a firm in an IJV to have a strong market orientation.
Practical implications
For managers of IJVs, the study would suggest that firms should concentrate on improving their organisations' overall level of market orientation if they are to improve the level of business performance.
Originality/value
This paper is the first to examine the relative effects of a market orientation and a learning orientation in the context of IJVs.
Purpose
One of the strongest convictions in marketing is that market orientation contributes to firms' performance substantially more than alternative strategic orientations such as innovation and entrepreneurial orientations. Still, some studies show that alternative orientations can also substantially affect the performance of firms, and furthermore, that firms that combine market orientation with alternative orientations are likely to perform even better than firms adopting only market orientation. Also, the nature of the relationship between market orientation and other strategic orientations is not clear. The purpose of this paper is to deal with these discrepancies in the marketing literature. It highlights the importance of the study of the relationship between market orientation and alternative strategic orientations, examines the effect of market orientation on different orientations, and identifies the orientations that are more likely to be combined with market orientation.
Design/methodology/approach
The study employs a meta‐analysis procedure to synthesize empirical results on the relationship between market orientation and innovation, learning, entrepreneurial, and employee orientations.
Findings
Findings suggest that market orientation is strongly correlated with learning, entrepreneurial, and employee orientations, and that it has a moderate positive relationship with innovation orientation.
Research limitations/implications
Research on market orientation should shift its focus, moving from the study of the direct effect of market orientation on business performance to the study of the various combinations of strategic orientations that firms can pursue in different situations, studying how the more successful market‐oriented firms balance between market orientation and other strategic orientations.
Originality/value
This is the first meta‐analysis to examine the relationships between market orientation and alternative strategic orientations.
In a study of telecommunications services, the authors examine the effects of customer satisfaction, affective com- mitment, and calculative commitment on retention. The study further examines the potential for situational and reactional trigger conditions to moderate the satisfaction-retention relationship. The results support consistent effects of customer satisfaction, calculative commitment, and prior churn on retention. Prior churn also moderates the satisfaction-retention relationship. The results have implications for both customer relationship managers and researchers who use satisfaction surveys to predict behavior.
Purpose
The purpose of this study is to highlight key themes and issues within the strategic orientation research domain that are in need of research attention by international scholars.
Design/methodology/approach
The approach taken is an essay format.
Findings
The essay identifies six prime issues in need of attention by scholars interested in examining strategic orientations in the context of international business success. These are the need to: examine the relative merits of adopting strategic orientations in firms’ domestic and international business operations; more carefully match international performance metrics to the theory being developed; develop more theory‐rich conceptual models of the consequences of strategic orientations by considering non‐linear and complex moderated relationships; consider the dimensionality of strategic orientations more closely, potentially viewing the constructs in a variety of disaggregated ways, so as to develop models with greater conceptual precision and managerial relevance; go beyond current methodological boundaries to provide better/more robust tests of theories; and integrate theories regarding individual strategic orientations into meta‐theories that accommodate multiple strategic orientations.
Research limitations/implications
For each of the six prime research issues identified as being important within the international strategic orientations field, a variety of specific research avenues and research questions are raised and discussed.
Originality/value
The paper provides researchers with insights into potential avenues for conducting research into strategic orientations in the international marketing arena.
Traditionally marketing as it is perceived all over the Western
world is based on definitions agreed on in the US by the American
Marketing Association and presented in American textbooks. This
definition is, however, based on American conditions and, moreover,
mainly geared to the customer relationships of manufacturers of consumer
packaged goods and durables. More recent research in Europe on service
marketing and industrial marketing suggests a somewhat different
approach to defining marketing. Long-term customer relationships are
considered as the cornerstone of marketing, and a definition of
marketing which is geared to this notion is suggested.
Purpose
The current work aims to analyze the complementary effects of relationship and service‐quality orientations on market and economic performance and their mediating role in the relationship between market orientation and performance.
Design/methodology/approach
In order to test the hypotheses proposed, an empirical analysis for financial and insurance companies was conducted.
Findings
The study reveals that market performance relates highly to relationship orientation and service quality as two alternative but complementary strategies, whereas the effect on economic performance is basically indirect through the market performance.
Practical implications
Results suggest that applying relational policies such as preferential treatment, communication and adaptation to customers' needs is critical for customer retention, reducing complaints and conflicts or improving the positioning. Moreover, the firms need to focus on quality service, as a consequence of relationship orientation and another requisite for market performance and, subsequently, economic performance.
Originality/value
This work integrates market orientation philosophy with relationship marketing and service quality as related drivers of the firm's performance. Few empirical works had related these concepts until now in this way.
Purpose
As service organizations continue to expand internationally, the need to be able to understand consumers in faraway places is increasing. Marketing research is a key mechanism through which service companies understand their current as well as potential customers. As service organizations contemplate the global marketplace, there is increasing demand for managers to understand customer behavior in multiple countries. This article aims to discuss the importance of market research information in developing a market orientation and its impact on international service organizations.
Design/methodology/approach
Extant literature is reviewed and discussed pertaining to the interrelationships between market research, market orientation and customer relationship management (CRM)‐related issues. Conceptual models are presented to illustrate the interrelationships between these streams of research.
Findings
Several anecdotal and case examples are used to illustrate the essential linkages between market research, market orientation, and CRM. These include the Ritz Carlton Hotel Company, Federal Express, Hallmark Cards, Harrah's Entertainment and, most notably, VeriFone.
Practical implications
The key implications revolve around the notion that in today's hyper‐competitive markets service firms must be market‐oriented in order to be competitive, and that market research plays a critical role in generating the needed data on which a market orientation can be developed and implemented, which, in turn, can enhance the practice of CRM.
Originality/value
The article promises to help service providers address the challenge of generating and using market research data to develop a market orientation and a corresponding CRM program.
Despite of the empirical evidence that shows that customer information utilization may improve a company's customer and business performance, customer information utilization is underdeveloped in many companies. This research contributes to the understanding of customer information generation and utilization in business-to-business companies. Based on findings from field interviews, the authors propose that the process of generating and using customer information tends to follow Lindblom's (1959) successive-limited comparison or muddling through method. The muddling through method emphasizes small incremental changes, building up from the current situation, and shorter term orientation. Authors suggest that companies should balance their customer information utilization efforts by using both short-term and long-term methods when developing customer information generation and utilization.
The ability to generate and market creative ideas in new products (NPs) and related marketing programs (MPs) in response to changing market needs is key to the success of a firm. This research examines the mediating role of NP and MP creativity between market orientation and NP success. The authors investigate (1) whether market ori-entation facilitates or inhibits creativity, (2) whether creativity influences NP performance, and (3) how to define and measure creativity in the NP development and launch contexts. They use a two-stage sampling frame to collect 312 sets of responses from managers and NP team leaders and thereby address the potential for common method bias in measures of creativity and NP performance. The findings indicate that NP and MP creativity mediates the relationship between market orientation and NP success. The authors also show that the meaningfulness dimen-sion, rather than the novelty dimension, of creativity is of greater importance in explaining the link between market orientation and NP success. The empirical results provide significant theoretical and managerial implications for NP strategy.
The literature reflects remarkably little effort to develop a framework for understanding the implementation of the marketing concept. The authors synthesize extant knowledge on the subject and provide a foundation for future research by clarifying the construct's domain, developing research propositions, and constructing an integrating framework that includes antecedents and consequences of a market orientation. They draw on the occasional writings on the subject over the last 35 years in the marketing literature, work in related disciplines, and 62 field interviews with managers in diverse functions and organizations. Managerial implications of this research are discussed.
Marketing academicians and practitioners have been observing for more than three decades that business performance is affected by market orientation, yet to date there has been no valid measure of a market orientation and hence no systematic analysis of its effect on a business's performance. The authors report the development of a valid measure of market orientation and analyze its effect on a business's profitability. Using a sample of 140 business units consisting of commodity products businesses and noncommodity businesses, they find a substantial positive effect of a market orientation on the profitability of both types of businesses.
Research on market orientation and organizational learning addresses how organizations adapt to their environments and develop competitive advantage. A significant void exists in current models of market orientation because none of the frameworks incorporates constructs related to innovation. The authors present a conceptual framework for incorporating constructs that pertain to innovation in market orientation research. Some of the critical relationships in this conceptual framework are tested among a sample of 9648 employees from 56 organizations in a large agency of the U.S. federal government. The results indicate that higher levels of innovativeness in the firms’ culture are associated with a greater capacity for adaptation and innovation (number of innovations successfully implemented). In addition, higher levels of innovativeness are associated with cultures that emphasize learning, development, and participative decision making. The authors make recommendations for incorporating constructs related to innovation into research on market orientation and organizational learning.
“Quadrads” (double dyads) of interviews, each conducted with a pair of marketing executives at a Japanese vendor firm and a pair of purchasing executives at a Japanese customer firm, provided data on corporate culture, customer orientation, innovativeness, and market performance. Business performance (relative profitability, relative size, relative growth rate, and relative share of market) was correlated positively with the customer's evaluation of the supplier's customer orientation, but the supplier's own assessment of customer orientation did not correspond well to that of the customer. Japanese companies with corporate cultures stressing competitiveness (markets) and entrepreneurship (adhocracies) outperformed those dominated by internal cohesiveness (clans) or by rules (hierarchies). Successful market innovation also improved performance.
This study examines quadratic effects of three export decision-making approaches (planning, creativity and spontaneity) on innovation orientation, and the direct effect of innovation orientation on export market performance. The model, anchored in decision theory and dynamic capabilities, is tested on a sample of Chinese exporting firms using structural equation modelling. Findings indicate that while a greater proclivity to innovate is beneficial for export market performance, a more complex web of relationships is revealed between the three export decision-making approaches and innovation orientation, providing insights on the operationalization of a dynamic decision-making capability. Specifically, while an increasing level of export planning reduces an exporter's capacity to innovate, creativity has a positive direct effect on exporters’ innovation orientation, which also benefits from extreme spontaneity in export decision-making. We discuss theoretical contributions and export managerial implications of this dynamic decision-making capability for industrial marketing management.
The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the observed data as both the measurement properties and the relationship between constructs decline. Further, and contrary to common assertion, the risk of making a Type II error can be substantial even when the sample size is large. Moreover, the present testing methods are unable to assess a model's explanatory power. To overcome these problems, the authors develop and apply a testing system based on measures of shared variance within the structural model, measurement model, and overall model.
The present study aims to investigate the factors at both organisational and individual levels influencing customer engagements and the effects of customer engagements on service innovation and business performance. A research model of customer engagement was proposed, and a field survey of insurance companies in Taiwan was conducted; 303 usable questionnaires were collected from 50 insurance/insurance brokerage companies. A multilevel analysis approach was adopted on both the individual and the organisational levels. We found that customer rapport and sales representative integrity enhance customer engagement at the individual level and organisational support for product/service promotion and the use of information technology systems improve customer engagement at the organisational level. Service innovation fully mediates the impact of aggregate customer engagement on business performance. This study not only advances the academic research on customer engagement but also provides a blueprint for service companies to design and improve their customer engagement activities.
Market orientation and brand orientation are usually modelled as distinct antecedents of business performance, and the simulta- neous performance effects of these orientations are empirically under-explored. Moreover, studies of market orientation and branding tend to focus on large corporations and the views of managers rather than the views of small business entrepreneurs. Addressing these research gaps, the current study explores market orientation and brand orientation by empirically testing their simultaneous effects on the business performance of small firms. Using primary data from 328 effective responses gathered from small business entrepreneurs, the study finds that market orienta- tion improves the financial performance of a small firm only if it is implemented through brand orientation and eventually translated into brand performance. The results further indicate that older firms benefit more than younger firms from investing in branding, while younger firms benefit from paying attention to the actions of their rivals.
Prior marketing literature offers a compelling theoretical rationale in support of two contradictory propositions, namely, that customer orientation is negatively related to (i.e., hinders) radical product innovation and that customer orientation is positively related to (i.e., helps) radical product innovation. In this research, the contextual conditions that determine the validity of these contradictory propositions are identified. Drawing from the literature on organizational rewards, two types of organizational rewards - outcome based and strategy based - are identified as being the key contextual conditions. It is hypothesized that when outcome-based rewards are in effect, customer orientation is negatively related to radical positive innovation and, that when strategy-based rewards are in effect, customer orientation is positively related to radical product innovation. Results from a survey of 156 manufacturing firms, and from a survey of 97 of their customers, provide support for these hypotheses. While prior research has attempted to explain the contradictory nature of the relationship between customer orientation and radical product innovation using typology-based and mediator-based approaches, the contextual condition-based approach has not been well developed. This gap is addressed by the present research. From a practitioner perspective, the research is important because it identifies a concrete mechanism that new product development managers can deploy, in tandem with customer orientation, if they intend to generate radical product innovations. Given the potential gains that flow from radical product innovation, the research findings are expected to be of considerable interest to managers of new product development projects.
The formation of organizations that are international from inception-international new ventures-is an increasingly important phenomenon that is incongruent with traditionally expected characteristics of multinational enterprises. A framework is presented that explains the phenomenon by integrating international business, entrepreneurship, and strategic management theory. That framework describes four necessary and sufficient elements for the existence of international new ventures: (1) organizational formation through internalization of some transactions, (2) strong reliance on alternative governance structures to access resources, (3) establishment of foreign location advantages, and (4) control over unique resources.
Purpose
– This study aims to examine the effect of firm-specific customer relationship orientation, technology orientation and the marketing–R&D cooperation on market performance. Although the importance of customer focus in R&D has been widely recognized in the literature, less attention has been paid to customer relationship orientation and the simultaneous effect of the three constructs on market performance.
Design/methodology/approach
– The hypotheses are tested on a multi-industry survey study of 209 R&D-intensive firms in Finland using hierarchical regression analyses, including both direct and interactional effects.
Findings
– The findings show that customer relationship orientation has a direct positive effect on market performance and that technology orientation also has a positive, yet non-significant effect. In addition, the effect of both of these strategic orientations is accentuated when collaboration between marketing and R&D departments is high, providing evidence on the significant moderating effects of these types of processes.
Research limitations/implications
– The implications of the research can be interpreted as being generalizable at least to some extent due to the multi-industry nature of the sample. However, the research is bound to a certain type of firm (R&D-intensive) and to a certain national context (Finland), which poses limitations to the study.
Practical implications
– The results suggest specific benefits for integrating specialist, complementary knowledge into a firm in terms of R&D and marketing knowledge. Practicing managers across departments should thus consider not only focusing on their specialist areas in markets (e.g. customers or technology) but also utilizing complementary insights within the firm to reap benefits in their fields.
Originality/value
– The study focuses on the less-researched concept of customer relationship orientation in parallel with the more established technology orientation. It also provides novel evidence on how the effectiveness of these orientations benefits from firm-internal knowledge transfer between the marketing and R&D departments.
Understanding the mechanisms through which firms realize the value of their market-based knowledge resources such as market orientation is a central interest of innovation scholars and practitioners. The current study contends that realizing the performance impact of market orientation depends on know-how deployment processes and their complementarities in functional areas such as marketing and innovation that co-align with market orientation. More specifically, this study addresses two research questions: (1) to what extent can market orientation be transformed into customer- and innovation-related performance outcomes via marketing and innovation capabilities; and (2) does the complementarity between marketing capability and innovation capability enhance customer- and innovation-related performance outcomes? Drawing upon the resource-based view and capability theory of the firm, a model is developed that integrates market orientation, marketing capability, innovation capability, and customer- and innovation-related performance. The validity of the model is tested based on a sample of 163 manufacturing and services firms. In answer to the first research question, the findings show that market orientation significantly contributes to customer- and innovation-related performance outcomes via marketing and innovation capabilities. This finding is important in that market-based knowledge resources should be configured with the deployment of marketing and innovation capabilities to ensure better performance. In answer to the second research question, the findings indicate that market orientation works through the complementarity between marketing and innovation capabilities to influence customer-related performance but not innovation-related performance. Managers are advised to have a balanced approach to managing the deployment of capabilities. If they seek to achieve superiority in customer-related performance, marketing capability, innovation capability, and their complementarity are essential for attracting, satisfying, building relationships with, and retaining customers. On the other hand, this complementarity would be considerably less important if firms placed greater emphasis on achieving superiority in innovation-related performance. In contrast to many existing studies, this study is the first to model the roles of both innovation capability and marketing capability in mediating the relationship between market orientation and specific performance outcomes (i.e., innovation- and customer-related outcomes).
Purpose
– Enterprises realize that customers are their most important asset and recognize that a high level of customer satisfaction can only be achieved by enhancing service quality. Thus, how enterprises acquire customer knowledge by which to initiate and maintain customer relationships, as well as to enhance service quality has become an important issue. The paper aims to discuss these issues.
Design/methodology/approach
– This study uses a questionnaire and statistical analytical techniques to explore the impact of customer knowledge and customer relationship management (CRM) on service quality.
Findings
– The results indicated that customer knowledge has a positive influence on service quality and CRM is the partial intervening variable between customer knowledge and service quality. That is, customer knowledge enhances the CRM, while CRM, in turn, increases service quality and provides competitive advantages.
Research limitations/implications
– This research explored the impact of customer knowledge and CRM on service quality based on the company's perception and there was no validation on the customers' perception of the company. Therefore, it is suggested that future research should involve company staff, current customers, and latent customers to strengthen the triangulation.
Practical implications
– The results found that customer knowledge is indeed an important source of competitive advantage. Hence, enterprises should acquire valuable customer knowledge in order to enhance the relationship with customers, as well as enhance their service quality.
Originality/value
– There is still little related literature investigating the relationships amongst customer knowledge, CRM, and service quality. Hence, this study applies questionnaire methods as the main research tools in order to conduct an in-depth investigation into the influence of customer knowledge and CRM on service quality. Furthermore, this research is expected to provide enterprises with valuable suggestions for management practices.
Purpose
– Growing awareness that value for the customer is created in relationship between the supplier and the customer has consequences for sales and marketing functions, and businesses are increasingly experimenting with new organisational approaches and solutions. The purpose of this paper is to investigate organisational issues involved in implementing value programs in B2B firms and examine implications for managerial action.
Design/methodology/approach
– After a literature review on value creation in business relationships, the authors illustrate the case of a large industrial business experimenting with organisational solutions to support value-creation processes in customer relationships.
Findings
– The authors identify three issues management has to address in organising the customer interface: involvement of a variety of actors to access elements of effective customer-value solutions; supporting and orchestrating the interaction processes among those involved; and differentiation of the customer interface and sales approach to match the substantial differences in customer relationships.
Research limitations/implications
– There is a need for further, more systematic empirical studies of value-creation practices and solutions in how businesses organise the customer interface for value creation.
Practical implications
– Coping effectively with creating value in customer relationships implies experimenting with novel approaches and solutions in organising the sales and marketing activities as open networked sales organization and requires specific managerial capabilities.
Originality/value
– While creating customer value is generally believed to be positively related to the firm's performance and development, the organisational implications of focusing on creating value have been less explored. The original contribution of this work lies in zooming in on the organisational solutions to support the customer value-creation processes.
Based on institutional theory, this study investigates the moderating effects of different types of managerial networking (political networking, financial networking, and business networking) on the relationship between entrepreneurial orientation (EO) and new venture performance in China. The study finds that political networking has a negative moderating effect on the positive relationship between EO and new venture performance, financial networking has an inverse U-shaped impact, and business networking has a positive effect. The findings not only enrich our understanding of the impact of managerial networking on the performance implication of EO in new ventures, but also offer new ventures some guidance on how to use EO and different types of managerial networking to enhance performance in China's transition economy.
This paper examines the influence of institutional transitions and market opportunities in emerging economies on the internationalization of entrepreneurial firms from these economies. We conceptualize and examine a three-stage model of institutional transition in emerging economies, and their effects on the internationalization strategies of new venture firms. Propositions are developed in examining how the different stages of the institutional transition can influence the strategic choices for the internationalization of new venture firms. In responding to the calls for more research on institutions and international entrepreneurship, this paper is an attempt extending the linkages between the two to the context of emerging economies. The paper also has managerial implications for entrepreneurs and the associated policy implications in international entrepreneurship.
Although the literature contains an impressive volume of studies attempting to identify determinants of organizational growth, researchers have recently noted important inconsistencies in findings. They may be explained, in part, by the variety of approaches used to measure growth. Our study provides a critical review of the literature to identify issues regarding the measurement of growth. We examine alternative approaches in order to assess the consequences of using inappropriate measures. Consequently, we consider three concepts as well as three different measurement formulas. Based on comprehensive data from 193 firms in 48 industries for 20 periods, results from comparative regression analyses reveal that the significance of relationships between determinants and organizational growth, as well as amount of explained variance, depend on the specific approaches used to measure growth. Finally, we provide some guidelines to help researchers select appropriate techniques for measuring organizational growth.