Can customization promote product innovation in the global B2B market? Evidence from export manufacturing firms from emerging markets
International Marketing Review
ISSN: 0265-1335
Article publication date: 16 January 2023
Issue publication date: 4 December 2023
Abstract
Purpose
Export manufacturing firms from emerging markets can better meet customer needs by providing customization, which leads to competitive advantages. Although both practice and academic research have deeply discussed customization, the question of whether customization promotes export manufacturing firms' product innovation in the global B2B market is largely unexplored. The purpose of this paper is to address this issue.
Design/methodology/approach
This paper collects survey data from 2,248 export manufacturing firms in China and uses hierarchical moderated regression to explore the relationship between customization and product innovation in the global B2B market and their boundary conditions.
Findings
This research shows that customization positively affects export manufacturing firms' product innovation in the context of the global B2B market, and it shows that internal governance structure (contract governance and relationship governance) and external governance structure (legal enforceability) can be used as boundary conditions that affect the relationship. Specifically, contract governance has an inverted U-shaped moderating effect on the relationship between customization and product innovation; moreover, relationship governance and legal enforceability can strengthen the positive relationship between customization and product innovation.
Originality/value
The study explores the relationship between customization and product innovation in the global B2B market and examines the moderating effect of internal and external governance structures. In addition, the study enriches the research related to customization and product innovation in the context of the global B2B market and provides essential practical insight into the survival of export manufacturing firms from emerging markets.
Keywords
Acknowledgements
The authors would like to greatly appreciate the support of National Science Fund of China for Distinguished Young Scholars [grant number 71725003], National Natural Science Foundation of China [grant number 72032004], Beijing Millions of Talents Project [Research on Balanced Management of Customization and Customer Privacy: Based on the Exploration of Beijing-Tianjin-Hebei Region, 2020], and Special Project of Ministry of Science and Technology [grant number 2020IM020300].
Citation
Hong, A., Li, X., Wang, Y. and Shi, M. (2023), "Can customization promote product innovation in the global B2B market? Evidence from export manufacturing firms from emerging markets", International Marketing Review, Vol. 40 No. 4, pp. 636-666. https://doi.org/10.1108/IMR-10-2021-0316
Publisher
:Emerald Publishing Limited
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