Showing papers in "Management Decision in 2014"

Knowledge sharing, intellectual capital and firm performance

Abstract: Purpose – The aim of this paper is to investigate the impact of knowledge sharing (KS) on firm performance and the mediating role of intellectual capital (IC). Design/methodology/approach – A research model was developed based on prior KS and IC studies. A survey was administered to a sample of high technology firms in China and 228 usable responses were collected. Structural equation modeling (SEM) was employed to test the research model. Findings – Tacit KS significantly was found to contribute to all three components of IC, namely human, structural and relational capital, while explicit KS only has a significant influence on human and structural capital. Human, structural and relational capital, enhance both operational and financial performance of firms. The effect of KS on firm performance is mediated by IC. Explicit KS has a greater effect on financial performance than operational performance, whereas tacit KS has a greater impact on operational performance than financial performance. Research limit...

Does a differentiation strategy lead to more sustainable financial performance than a cost leadership strategy

Abstract: Purpose – The purpose of this paper is to investigate the relationship between the strategic positioning of firms and the sustainability of firm performance. The paper argues that pursuing a differentiation strategy leads to more sustainable financial performance compared to following a cost leadership strategy. However, a differentiation strategy may also be associated with greater risk. Design/methodology/approach – To investigate the research questions, the authors utilize publicly available archival data consisting of 12,849 firm-year observations for the period 1989-2003. In the first stage of the analysis, factor analysis is used to determine firms’ strategic positioning. The resulting factor scores are subsequently used in regression analysis to investigate the sustainability of performance based on the strategic positioning of firms. Findings – The results indicate that both cost leadership and differentiation strategies have a positive impact on contemporaneous performance. However, the differentiation strategy allows a firm to sustain its current performance in the future to a greater extent than a cost leadership strategy. The differentiation strategy, though, is also associated with greater systematic risk and more unstable performance. Originality/value – Sustainability of performance refers to how much a firm's current profitability can be sustained in future periods. The main contribution of this study is the comparison of generic strategies based on the sustainability of firm performance. This aspect of the strategy-performance link has not been considered in prior work. Another contribution of the study is that it considers multiple dimensions of firm performance in order to evaluate the trade-offs involved with pursuing different strategies. In particular, the authors contribute to the literature by documenting that while differentiation leads to more sustainable earnings, it also leads to riskier and more unstable earnings.

Human capital, social capital and organizational performance

Abstract: Purpose – The aim of this paper is to evaluate the human capital and social capital of managers and the influence of these attributes on the performance of small and medium-sized Portuguese companies. Design/methodology/approach – The structural modeling approach was applied to a sample of 199 small and medium-sized companies aged between 3 and 15 years, from five different sectors of activity. Findings – It was found that human capital affects social capital, and that experience and cognitive ability influence personal relations and complicity. Organizational performance is strongly influenced by human capital through the cognitive ability of the manager. Practical implications – Based on these findings managers can gain a better knowledge about how to improve the performance of their firms, for example through adjustments in communication methods or strategic decision capacities. Originality/value – This work is innovative in the sense that it confirms the influence of human capital on social capital, a...

Financial, governance and environmental determinants of corporate social responsible disclosure

Abstract: Purpose – The purpose of this paper is to investigate the vital determinants on the extent of corporate social responsibility (CSR) disclosure in a US context. The selected variables are CEO duality, the presence of women in the board, greenhouse gas (GHG) emissions, emission reduction initiatives, company's risk premium, financial leverage and industry's profile. Design/methodology/approach – The environmental, social and governance (ESG) disclosure score is used as a proxy for the extent of CSR disclosure calculated by Bloomberg. The influence of plausible variables on the ESG disclosure score and its sub-categories was examined by using the least squares dummy variable model (LSDV) incorporating 100 companies listed on Standard & Poor's 500 Index for the period 2009-2012. Findings – The results show that the emission reduction initiatives and GHG emissions influence positively the extent of ESG score. In addition, slight differences exist concerning the determinants of different types of disclosures. F...

Does media pressure moderate CSR disclosures by external directors

Abstract: Purpose – The purpose of this paper is to examine the moderating effect of media pressure on external directors in relation to disclosure of information on corporate social responsibility (CSR). Design/methodology/approach – The paper adopts a multilevel approach, integrating the institutional, organisational and individual levels of analysis in a whole model that explains corporate transparency. The paper uses a sample composed of 98 non-financial listed Spanish companies for the period 2004-2010, Findings – The results show heterogeneity between external board members. Proprietary directors, representing shareholders, tend to promote adoption of the Global Reporting Initiative guidelines in order to increase value for shareholders. On the contrary, independent directors are risk adverse in relation to the effect that CSR information disclosure could have on their professional reputations. Research limitations/implications – The sample could be improved, including companies from different countries and m...

Uncovering customer service experiences with Twitter: the case of airline industry

Abstract: Purpose – In this paper the authors present a study that uses Twitter to identify critical elements of customer service in the airline industry. The goal of the study was to uncover customer opinions about services by monitoring and analyzing public Twitter commentaries. The purpose of this paper is to identify elements of customer service that provide positive experiences to customers as well as to identify service processed and features that require further improvements. Design/methodology/approach – The authors employed the approach of sentiment analysis as part of the netnography study. The authors processed 67,953 publicly shared tweets to identify customer sentiments about services of four airline companies. Sentiment analysis was conducted using the lexicon approach and vector-space model for assessing the polarity of Twitter posts. Findings – By analyzing Twitter posts for their sentiment polarity the authors were able to identify areas of customer service that caused customer satisfaction, dissat...

New qualitative research methodologies in management

Abstract: Purpose – The purpose of this paper is to deliver an introduction to the Special Issue on new qualitative research methodologies in management. Design/methodology/approach – The reasons of interest for the object of this Special Issue are explained through the discussion of a selected literature. Technological and sociological changes are considered as a source of new problem and new opportunities for management and management research. The traditional methods are put under strain by these changes and epistemological implications are considered. Findings – New qualitative methodologies analyzed in the Special Issue are characterized by drivers including hybridization with others methods, both qualitative and quantitative. New methods can contribute to reduce distance between researcher's and practitioner's context. Originality/value – A frame to analyze the new qualitative management research through the papers published in the Special Issue.

The uneasy transition from supply chains to ecosystems: The value-creation/value-capture dilemma

Abstract: Purpose – This paper uses the multidimensional definition of value – ecosystemic value – and employs lifecycle theory to identify the different stages of evolution of value-creation and -capture processes in an ecosystem. Specifically, the aim of this paper is to show the uneasy transition from supply chains to ecosystems. Design/methodology/approach – Based on a field study of a Canadian ICT ecosystem, this paper adopts a multilevel perspective on value-creation and value-capture processes and illustrates how these processes need to move from a dyadic economic focus to a network socioeconomic one. Findings – The findings pinpoint the uneasy transition from supply-chains management to ecosystems management and provide a framework for understanding how value creation and value capture should be coupled throughout the ecosystem lifecycle. Finally, five theoretical and managerial propositions are suggested to better leverage ecosystemic capabilities and better manage value creation and value capture in ecosy...

The condition of smallness: how what it means to be small deters firms from getting bigger

Abstract: Purpose – The purpose of this paper is to examine and explain why most small firms remain small. A new conceptual framework – the condition of smallness – is proposed. Design/methodology/approach – A critical examination of the literature about the nature of being a small firm is first conducted. Employing an inductive analysis of responses from a survey of 2,521 small business owners about employment regulation, the nature and effects of smallness is examined. Findings – It was found that owners' choice making combines with perceptions about their resources to produce a condition of smallness. The condition of smallness is conceptualised as the circularity perceptions, attitudes and consequent practices that reflect lack of knowledge, time and capability. It is argued that this condition of smallness inhibits growth to create a wicked problem that explains why most small firms don't grow. Research limitations/implications – This work is largely conceptual, albeit the argument is grounded in, and illustra...

The impacts of top management team characteristics on entrepreneurial strategic orientation: The moderating effects of industrial environment and corporate ownership

Abstract: Purpose – The paper aims to empirically examine the questions of how top management team (TMT) characteristics, including TMT heterogeneity and vertical dyads differences between TMT and Board Director, influence entrepreneurial strategic orientation, as well as how industry environment and corporate ownership moderate those relationships. Design/methodology/approach – The paper designs the panel data on the listed companies of China's Small and Medium-sized Enterprises Board for the period 2006-2010, and uses hierarchical regression analysis and grouping regression analysis when examining the relationships among variables involved. Findings – The paper provides empirical insights about how top management team (TMT) characteristics, including TMT heterogeneity and vertical dyads differences between TMT and Board Director, influence entrepreneurial strategic orientation, as well as how industry environment and corporate ownership moderate those relationships. It suggests that, except for TMT educational ba...

Big data and competitive advantage at Nielsen

Abstract: Purpose – The purpose of this paper is to illustrate how an international company, Nielsen Holdings, reacted to changes in their highly competitive industry brought about by advances in technology. This case presents the strategic management decisions that enabled Nielsen to regain its competitive advantage. This case further describes the functioning of the resource-based view (RBV) of strategy, dynamic capabilities framework, and digital data genesis (DDG), in a turbulent business environment. Design/methodology/approach – The case study is based primarily upon secondary data to include annual reports, press releases, company web site, as well as articles. Findings – The case study provides an example of the functioning of a once durable competitive advantage that was eroded due to advances in technology, and the steps the company took to regain that advantage. The paper illustrates the functioning of a capability and a dynamic capability in DDG. Practical implications – This case can be used for the te...

The moderated relationship between job burnout and organizational cynicism

Abstract: Purpose – The purpose of this paper is to examine the relationship between two components of job burnout (emotional exhaustion and depersonalization) and organizational cynicism. Another aim of this research was to examine the role of moderating variables such as role conflict, work-family conflict, perceived fairness, and trust in coworkers on the relationship between burnout and organizational cynicism. Design/methodology/approach – The methodology was a survey-based quantitative method. Totally, 172 nurses in a Taiwanese hospital were surveyed, and 169 completed responses were obtained. The nurses filled out self-report surveys that measured their levels of burnout, organizational cynicism, and various other variables including demographic variables. Findings – The results indicate that several variables acted as moderators in the relationship between emotional exhaustion and organizational cynicism, and in the relationship between depersonalization and organizational cynicism. Trust in coworker, perce...

Gift-giving, sharing and commodity exchange at Bookcrossing.com: new insights from a qualitative analysis

Abstract: Purpose – Through an empirical analysis of a consumption community, the purpose of this paper is to demonstrate that the theories of gift-giving, sharing and commodity exchange should not be kept separated but integrated into a unifying model. Design/methodology/approach – The paper provides new evidence about Bookcrossing.com, whose members share and give books as gifts; that is, physical goods rather than digital ones as in most of the communities considered in the literature. This community is analysed with qualitative tools, such as netnography, personal interviews and participant observation. Findings – The main result of the analysis of Bookcrossing is that gift-giving is not the only process responsible for value creation and distribution in consumption communities: sharing and commodity exchange also play a role. Furthermore, the paper provides new evidence about aspects of gift-giving and sharing that have received limited attention in the literature: collective reciprocity and anonymous sharing....

Reinvigorating the mission statement through top management commitment

Abstract: Purpose – The purpose of this paper is to propose that top management commitment to its organization's mission statement moderates the mission's effect of firm performance. The proposed model combines numerous aspects of top management commitment to give depth to the moderating effect. Design/methodology/approach – The paper provides a conceptual overview of the mission statement literature toward a theoretical model. Findings – The impact of mission statements on firm performance long has been studied and debated, without consistent results. This paper proposes that this is due to the presence of moderating influences, specifically the commitment of top management, that, if not properly studied, will affect empirical results. Practical implications – Practicing managers can unlock the power of the mission statement by involving the entire organization in the mission statement process, clearly and consistently communicating the mission's tenets, setting measurable operational targets from the mission stat...

Examining stakeholders’ influence on environmental responsibility of micro, small and medium-sized enterprises and its outcomes

Abstract: Purpose – Given the uprising interest in the environmental responsibility issues among small businesses, the purpose of this paper is to design to probe into the relationship between stakeholders’ influence and environmental responsibility of Micro, Small and Medium-Sized Enterprises (MSMEs), and its consequent outcomes in an emerging economy. Design/methodology/approach – A sample of 110 MSME owners participated in this study. Data were collected by means of questionnaire designed to measure the 12 constructs of focus. In order to test the hypotheses and examine the relationships proposed in the research framework, structural equation modelling was performed using SmartPLS. Findings – This study revealed that among the primary stakeholders, only employees and customers significantly influenced environmental responsibility practices of MSMEs. Besides, it was found that environmental responsibility results in financial improvements and better relations with employees and customers. Research limitations/imp...

Entrepreneurial team locus of control: diversity and trust

Abstract: Purpose – The purpose of this paper is to examine how internal locus of control (LOC) as a well-established entrepreneurial personality trait at team level impacts team performance (effectiveness and efficiency) in Austria. In addition, it investigates the interaction effects of LOC diversity and affective trust on the internal LOC-performance relationship. Design/methodology/approach – Data originated from 44 entrepreneurial teams based in nine business incubators in Austria. Partial least squares (PLS) structural equation modelling was used to estimate the model. Findings – Results indicate that higher internal LOC at team level promotes entrepreneurial team effectiveness and efficiency. However, team efficiency is increased when such teams possess a high internal LOC and low LOC diversity. Affective trust is identified as a crucial component in enhancing entrepreneurial team effectiveness, especially when the team has a high internal LOC. Originality/value – This study extends research on internal LOC ...

How does cooperation affect innovation in micro-enterprises?

Abstract: Purpose – This research investigates how micro-enterprises cooperate with external parties in order to promote innovation and entrepreneurial success. The purpose of this paper is to describe supplier and consumer cooperation and analyzes how these two behavioral modes influence the product and service innovations of micro-enterprises. Based on the resource-based view of the firm, the authors show that micro-enterprises help the source of innovation by tapping into the resources and abilities of suppliers. Design/methodology/approach – This research used a questionnaire to randomly sample micro-entrepreneurs that run stalls at night markets. Before distributing the final questionnaire, the authors in-depth interviewed ten micro-entrepreneurs and asked them to openly describe their entrepreneurial processes and success stories. Findings – The results of this study show that cooperation with consumers does not improve product and service innovations. By contrast, the cooperation of micro-enterprises with su...

Prosumer engagement in innovation strategies : The Prosumer Creativity and Focus Model

Abstract: Purpose – The purpose of this paper is to develop a new enriched approach regarding the prosumer concept and a framework for efficient managerial decision, making use of prosumer innovative potential. Design/methodology/approach – Based on relevant literature sources, this paper takes the prosumer concept one step further from usual interpretations suggesting its innovative potential for companies which adequately address this issue. Depending on their own objectives, the domain limitations and the creativity they are allowing regarding specific activities or campaigns, companies can open up and develop prosumer co-creation strategies. Findings – The authors develop a new prosumer understanding of value co-creation and design prosumer-oriented marketing strategies as a starting point for important decision making and complex marketing campaign creation in an always changing environment. Originality/value – The research contributes to the existing knowledge on prosumerism, being at the same time valuable f...

Geographic clustering, network relationships and competitive advantage: Two industrial clusters in Taiwan

Abstract: Purpose – There are contradicted perspectives on relationship between geographic cluster and competitive advantage of firms in previous research. Extant research has paid extremely attention to the effect of both geographic cluster and industrial network on firms’ performance; however, little studies have delineated the relationship between geographic cluster, industrial network, and competitive advantage. The purpose of this paper is to demonstrate that firms within the same cluster that have established idiosyncratic network resources have stronger competitive advantages than firms that have not. Design/methodology/approach – An empirical study of two prominent geographic clusters from Taiwan is analyzed by structural equation modeling. Findings – The results indicate that the degree of networking does play a mediating role between geographic cluster and competitive advantage, which may help resolve the conflicting results obtained by researchers on the influence of clusters on competitive advantage. Th...

Hybrid analysis of textual data

Abstract: Purpose – The purpose of this paper is to provide insightful evidence of phenomena in organization and management theory. Textual data sets consist of two different elements, namely qualitative and quantitative aspects. Researchers often combine methods to harness both aspects. However, they frequently do this in a comparative, convergent, or sequential way. Design/methodology/approach – The paper illustrates and discusses a hybrid textual data analysis approach employing the qualitative software application GABEK-WinRelan in a case study of an Austrian retail bank. Findings – The paper argues that a hybrid analysis method, fully intertwining qualitative and quantitative analysis simultaneously on the same textual data set, can deliver new insight into more facets of a data set. Originality/value – A hybrid approach is not a universally applicable solution to approaching research and management problems. Rather, this paper aims at triggering and intensifying scientific discussion about stronger integratio...

A synergy measurement model to support the pre-deal decision making in mergers and acquisitions

Abstract: Purpose – The purpose of this paper is to develop an effective synergy measurement model to support the decision-making process in mergers and acquisitions (M&A). Design/methodology/approach – Relevant literature is reviewed and critically assessed. An interpretive methodology is used to analyse empirical data from a questionnaire survey and interviews of M&A experts. A framework is provided with the objective to support the process of synergy measurement and the success of pre-deal planning. Findings – The authors find several mismatches in synergy measurement practices. The strategic factors, which are considered very relevant to generating reliable forecasts, are surprisingly not adequately quantified. On the contrary, a synergy measurement model may integrate the assessment of these factors: the type of synergy, the size of synergy, the timing of synergy and the likelihood of achievement. Practical implications – The paper offers interesting implications for firms, advisors and consultants, pointing o...

Franchisor resources, spousal resources, entrepreneurial orientation, and performance in a couple-owned franchise outlet

Abstract: Purpose – Franchise outlets owned by entrepreneurial married couples are gradually increasing. Based upon prior research in resource-based view, entrepreneurial orientation (EO), franchising, and family business, the purpose of this paper is to analyze franchisor resources, spousal resources, and EO are critical to the development of franchisees’ performance. Design/methodology/approach –The author conducted a survey of 99 franchisees in couple-owned convenience store franchise outlets in Taiwan using the partial least squares technique. Findings – It was found that franchisor resources, spousal resources, and EO directly affect franchisee performance. In addition, franchisor resources also have an indirect effect on performance through EO, but spousal resources do not have an indirect effect. Practical implications – The franchisor should pay attention to the development of their resources and a franchisee's EO and the interaction between the franchisee and the spouse. Furthermore, a franchisee's EO faci...

Three strategies for customer value assessment in business markets

Abstract: Purpose – The strategies to assess potential and realized customer value have received surprisingly little attention in management literature. The purpose of this paper is to examine potential customer value assessment strategies for business-to-business (B2B) firms and their special characteristics. Design/methodology/approach – The empirical part of the study draws from an exploratory, two-part field study involving three pilot firms, and seven best practice firms in customer value assessment. The research design followed an inductive, discovery-oriented grounded theory approach. Primary data were gathered through semi-structured interviews with 35 business managers from ten B2B firms. Findings – The study identifies three customer value assessment strategies adopted by firms in business markets: Emergent value sales strategy; Life-cycle value management strategy; and Dedicated value specialist strategy. These strategies highlight different ways of managing and coordinating organizational units in diffe...

Organizational slack, experience, and acquisition behavior across varying economic environments

Abstract: Purpose – The purpose of this paper is to examine the effects of the organizational slack and acquisition experience on acquisition behavior across varying environmental conditions. Drawing from behavioral theory and the threat-rigidity hypothesis, the paper explores firm acquisition behavior, in terms of type of acquisitions, before and during the recent economic downturn. Design/methodology/approach – Using data on 385 acquisitions in Italy in the period 2007-2010, the paper tests hypotheses on how organizational slack and acquisition experience influence the likelihood of cross-border and diversifying acquisitions relative to domestic, non-diversifying acquisitions prior to and during the economic downturn. Findings – Results suggest that the availability of financial resources and acquisition experience both have an important influence on acquisition behavior. Firms with greater slack and acquisition experience were more likely to make diversifying and/or cross-border acquisitions, compared to domesti...

Enterprise risk management implementation in construction firms

Abstract: Purpose – The purposes of this paper are to: first, identify the critical drivers for and hindrances to enterprise risk management (ERM) implementation in Singapore-based Chinese construction firms (CCFs); second, interpret the critical drivers and hindrances in tandem with organizational change theories; and third, provide possible strategies to strengthen the drivers and overcome the hindrances. Design/methodology/approach – A questionnaire survey was conducted and responses were received from 35 experienced managers in CCFs operating in Singapore. Findings – A total of 13 drivers and 25 hindrances with significant influence were identified. Of them, “improved decision-making” was the top driver, while “insufficient resources (e.g. time, money, people, etc.)” was the most influential hindrance. Research limitations/implications – As the survey was performed with the Singapore-based CCFs, there may be geographical limitation on the identification of the critical drivers for and hindrances to ERM implemen...

Reasons for choosing mechanisms to protect knowledge and innovations

Abstract: Purpose – Prior research has confirmed the usefulness of both formal and informal protection mechanisms for governing knowledge flows. However, there is lack of research on the motivation and needs driving firms in their choice of mechanisms for each situation. The aim of this paper is to examine the reasons for choosing formal or informal mechanisms. Design/methodology/approach – The hypotheses were tested on a sample of 209 companies engaged in R&D. A Partial Least Squares was used for the analyses. Findings – This study identifies statistically significant relationships between the protection need and the firm's strategy. The results indicate that there is variance in the use of mechanisms when there is a specific motivation for seeking protection, and when the firm faces difficulties related to protection issues. Research limitations/implications – The data were gathered in a single country. The results may be different if practices in a culture based more on informal relations, with less efficient pa...

Explaining factors affecting technological change adoption: A survival analysis of an information system implementation

Abstract: Purpose: The purpose of this paper is to explore how drivers differentially speed up the change process adoption in the perspective of a technological change. More specifically, the paper aims to answer the following question: "Which factors impact the technological change adoption speed of an information system?" Based on an empirical study, our results identify three factors that have a direct influence on the speed of technological change adoption. Design/methodology/approach: Using the Unified Theory of Acceptance and Use of Technology model as a point of departure, the paper analyzes the impact of eight variables grouped in four categories: the perceived attributes of change (performance expectancy and effort expectancy), social influence (peer influence and supervisor influence), facilitating conditions (initial training and helpdesk) and individual characteristics (receptivity to change and self-efficacy). To evaluate which factors accelerate or inhibit change adoption, the paper uses a statistical model of survival analysis. Findings: Based on a 15-month longitudinal study of a workflow system implementation in a telecommunications firm, the results highlight that performance expectancy, supervisor influence and self-efficacy have a direct influence on the speed of technological change adoption. Research limitations/implications: As a case study, the research findings may only be valid in the particular organization in which it is developed. Indeed, the organizational culture, the company's internal rules, and the history of the organization are factors which significantly influence the speed of change. Practical implications: The results may help project leaders to be aware of the elements that must be dealt with effectively if a change process is to succeed within the allotted time. Originality/value: The statistical model of survival analysis allows analyzing change adoption from a dynamic perspective. This statistical approach is quite new and complementary with most of the studies which are qualitative in the field. © Emerald Group Publishing Limited.

Gender gap in innovation: an institutionalist explanation

Abstract: Purpose – The aim of this paper is to contribute to knowledge on innovation from a gender perspective, and to investigate how environment affects the process of innovation by women Design/methodology/approach – The empirical study uses a Structural Equations Model of a Partial Least Squared (PLS) technique Data of 40 countries from around the world were collected from 2008 Findings – Institutional environment matters for innovative activity by women An innovative thinking is required for integrating the gender perspective in innovative milieus in order to enrich, diversify and promote stronger innovation activities, mobilising unexploited opportunities for managers in the business sector, and for policy makers in the public one Research limitations/implications – A new sex-disaggregated dataset will allow us to enlarge and improve upon this study A longitudinal study would be extremely useful, but for the moment, there are no available data of this kind Practical implications – Policies designed to

Untangling self-reinforcing processes in managerial decision making. Co-evolving heuristics?

Abstract: Purpose – Over the last 30 years, specific investigations into self-reinforcing processes in managerial decision making have been gaining momentum within the mainstream literature of management However, to date, it is claimed that understanding these processes properly still requires additional research efforts Thus, the purpose of this conceptual paper is to follow this claim Design/methodology/approach – The paper tries to inform the conversation about self-reinforcing processes in managerial decision making through adopting lenses drawing from the biological philosophy of organizational change In particular, the co-evolutionary approach to organizational change, with a focus on CEOs, and/or top management teams (TMT), is adopted Findings – As its core contribution, the paper proposes that self-reinforcing processes in the CEOs/TMTs’ decision making can occur because of the emergence (and subsequent consolidation) of co-evolving heuristics On this basis, the paper also prospect potential avenues f

The theoretical foundations of value-informed pricing in the service-dominant logic of marketing

Abstract: – In the mainstream normative pricing literature, value assessment is virtually non-existent. Although the resource-based literature recognizes that pricing is a competence, value-informed pricing practices are still weakly grounded in theory. The purpose of this paper is to strengthen the theoretical grounds of such pricing practices. , – The paper applies the emerging service-dominant logic of marketing to pricing. More specifically, it apples the ten foundational premises of service-dominant logic to pricing and it places pricing in the frameworks of one of the major building blocks of service-dominant logic, namely the resource-advantage theory of competition. , – From a service-dominant perspective, price is the reward for the application of specialized knowledge and skills. Pricing is an operant resource, or competence, that assesses customer value, applies it in multi-dimensional price propositions, and implements it in processes of co-creating prices with customers. Value-informed pricing is the central pricing practice within such competences. , – Prices vary among others between “good” and “bad”, firms generate competitive advantage not only through value creation, but also through pricing. Learning is key to develop pricing competences. , – This paper is the first to ground value-informed pricing at high levels of abstraction in general marketing theory.