Effects of top management team faultlines in the service transition of manufacturing firms
TL;DR: In this paper, the authors investigate the differential effects of product-related and product-unrelated service transitions on financial performance and the moderating roles of informational and social TMT faultlines.
About: This article is published in Industrial Marketing Management.The article was published on 2021-10-01. It has received 10 citations till now. The article focuses on the topics: Service (business).
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01 Apr 2020
TL;DR: In this paper, the authors demonstrate that storytelling is a collective sense-making and sense-giving process that occurs in interactions between customers and suppliers in which both parties contribute to the story development.
Abstract: The emergence of digitally connected products and big data analytics (BDA) in industrial marketing has attracted academic and managerial interest in smart services. However, suppliers' provision of smart services and customers' adoption of these services have received scarce attention in the literature, demonstrating the need to address the changing nature of customer-supplier interactions in the digital era. Responding to prior research calls, this study utilizes ethnographic research and a storytelling lens to advance our knowledge of how stories and BDA can enhance customers' attitudes toward suppliers' smart services, their behavioral intentions and their actual adoption of smart services. The study's findings demonstrate that storytelling is a collective sensemaking and sensegiving process that occurs in interactions between customers and suppliers in which both parties contribute to the story development. The use of BDA in storytelling enhances customer sensemaking of smart services by highlighting the business value extracted from the digitized data of a reference customer. By synthesizing insights from servitization, storytelling, BDA and the customer reference literature, this study offers managers practical guidance regarding how to increase smart service sales. An example of a story used to facilitate customer adoption of a supplier's smart services in the manufacturing sector is provided.
24 citations
Journal Article•
TL;DR: In this paper, a longitudinal empirical study of a relationship between buyer and supplier companies in the food service industry was conducted, and the results revealed elements on the action and structural dimensions, their mutual dynamics and managerial reframing actions that catalyze changes in the relationship logic.
Abstract: The study complements the dominant interpretations of positioning in marketing management research by introducing a relational perspective on positioning in the industrial markets. Instead of focusing on products, brand, or company image only, the study focuses on the exchange logic of the relationship. The study suggests that exchange logic of the relationship i.e. relationship logic comprises a fundamental unit of positioning in the industrial markets. Accordingly, the study defines that relationship logic stems from the dynamics of the action, structural and management dimensions that integrate the buyer and supplier organizations into their mutual relationship. Through a longitudinal empirical study of a relationship between buyer and supplier companies in the food service industry, we show how the relationship has been repositioned from goods-dominant to service-dominant relationship logic. The results reveal elements on the action and structural dimensions, their mutual dynamics and managerial reframing actions that catalyze changes in the relationship logic, i.e., reposit the relationship. The results are organized into a framework that delineates the relationship positioning dimensions, and discusses the implications of such relationship positioning to guide further academic research and managerial practice.
8 citations
TL;DR: In this paper , the authors investigate servitization's impact on firms' market power, along with the moderating roles of research and development (R&D) intensity and firm size.
Abstract:
Purpose
Servitization has been used widely by manufacturing firms to secure strategic positions in industrial transformation. However, its impact on firms’ market power remains to be investigated, especially in developing countries. This study aims to investigate servitization’s impact on firms’ market power, along with the moderating roles of research and development (R&D) intensity and firm size.
Design/methodology/approach
Using the two-stage least squares with instrumental variables (2SLS-IV) method, the authors conduct an empirical analysis of servitization in China based on panel data for 1,797 publicly traded manufacturing firms during the period 2012–2018.
Findings
The findings show that servitization helps increase a firm’s market power. Furthermore, heterogeneity analysis suggests that embedded servitization increases a firm’s market power, whereas hybrid servitization reduces it. The findings also indicate that this effect varies depending on critical firm conditions. Servitization’s effect on firms’ market power increases with R&D intensity but decreases with manufacturer expansion.
Research limitations/implications
This study describes the positive effects of servitization on firms’ market power in response to calls for research that will adopt a comprehensive business performance perspective on the servitization field.
Practical implications
The findings provide guidance for what type of servitization manufacturing firms should choose and how it fits with their size and R&D capabilities.
Originality/value
This pioneering empirical study uses a large longitudinal data set and the 2SLS-IV method to examine the effects of embedded servitization and hybrid servitization on firms’ market power. The findings provide a new perspective on ongoing discussions of “desertification” and the “service paradox.”
3 citations
TL;DR: In this article , the authors investigated the different effects of the misalignment between servitization strategies (i.e., product-oriented and customer-oriented services) and inter-organizational information technology (IT) capabilities concerning the environmental performance of servitized manufacturing firms.
Abstract: PurposeThis study investigates the different effects of the (mis)alignment between servitization strategies (i.e. product-oriented and customer-oriented services) and inter-organizational information technology (IT) capabilities (i.e. IT reconfiguration and integration) concerning the environmental performance of servitized manufacturing firms.Design/methodology/approachUsing hierarchical regression analysis, this study examines the theoretical model based on multi-respondent survey data from 1,149 senior managers of 383 manufacturers in China.FindingsProduct-oriented services have a non-significant effect on environmental performance, whereas customer-oriented services exert a significantly positive effect. The alignment between product-oriented services and IT reconfiguration, and that between customer-oriented services and IT integration, improve environmental performance. In contrast, the misalignment between product-oriented services and IT integration, and that between customer-oriented services and IT reconfiguration, hurt environmental performance.Originality/valueThis study elucidates the different effects of the (mis)alignment between servitization strategies and inter-organizational IT capabilities on environmental performance. It also resolves the inconsistency regarding the implications of servitization on environmental performance.
1 citations
TL;DR: In this paper , the current state of academic-practitioner articles in industrial marketing management, outline suitable research methodologies, and provide guidelines for prospective authors, and present a review of the current academic practice in this area.
1 citations
References
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TL;DR: In this article, the authors examined the link between firm resources and sustained competitive advantage and analyzed the potential of several firm resources for generating sustained competitive advantages, including value, rareness, imitability, and substitutability.
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TL;DR: The dynamic capabilities framework as mentioned in this paper analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change, and suggests that private wealth creation in regimes of rapid technology change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm.
Abstract: The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difftcult-to- trade knowledge assets and complementary assets), and the evolution path(s) it has aflopted or inherited. The importance of path dependencies is amplified where conditions of increasing retums exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding intemally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.
27,902 citations
TL;DR: The authors argue that service provision rather than goods is fundamental to economic exchange and argue that the new perspectives are converging to form a new dominant logic for marketing, one in which service provision is fundamental for economic exchange.
Abstract: Marketing inherited a model of exchange from economics, which had a dominant logic based on the exchange of “goods,” which usually are manufactured output The dominant logic focused on tangible resources, embedded value, and transactions Over the past several decades, new perspectives have emerged that have a revised logic focused on intangible resources, the cocreation of value, and relationships The authors believe that the new perspectives are converging to form a new dominant logic for marketing, one in which service provision rather than goods is fundamental to economic exchange The authors explore this evolving logic and the corresponding shift in perspective for marketing scholars, marketing practitioners, and marketing educators
12,760 citations
TL;DR: The central premise of upper echelons theory is that executives' experiences, values, and personalities greatly influence their interpretations of the situations they face and, in turn, affect their choices as mentioned in this paper.
Abstract: The central premise of upper echelons theory is that executives' experiences, values, and personalities greatly influence their interpretations of the situations they face and, in turn, affect their choices. At the invitation of the editor, I recap the AMR article in which the theory was originally presented (Hambrick & Mason, 1984), discuss subsequent refinements of the theory, and lay out several promising avenues for future upper echelons research.
2,966 citations
TL;DR: A multimethod field study of 92 workgroups explored the influence of three types of workgroup diversity (social category diversity, value diversity, and informational diversity) and two moderators.
Abstract: A multimethod field study of 92 workgroups explored the influence of three types of workgroup diversity (social category diversity, value diversity, and informational diversity) and two moderators ...
2,873 citations