Search results

To successfully create customer value, firms must use coherent market strategies and perform value-creating activities that enable them to develop solutions to customers’ needs. However, as firms exhibit differences in how they approach value creation, their market strategies will also differ. These differences among market strategies can be described through different combinations of proactivity and responsiveness, representing each firm’s value-creation logic. This study aims to increase understanding of how firms can improve the effectiveness of their market strategies by considering their associated value-creation logics.

The authors conceptualize market strategies as coherent sets of value-creating activities. While the types of activities within a market strategy are driven by a firm’s strategic orientations, how these activities are performed is influenced by its value-creation logic. With this as the foundation, the authors develop a conceptual typology of archetypal market strategies based on the different value-creation logics that influence them.

The authors propose four distinct market strategies – habitual, visionary, adaptive and ambidextrous – representing unique ways in which value-creation logics influence the formation of market strategies. Furthermore, the authors highlight the need for activities to reflect consistent value-creation logics to create coherent market strategies and the authors provide an exploration of the activities that enable firms to implement different types of market strategies.

The typology expands the concept of market strategy, introducing the idea of a value-creation logic of proactivity and responsiveness, and thus demonstrating the need for more in-depth consideration of the value-creating activities that constitute market strategies to better understand how firms can create superior customer value.

This paper aims to investigate factors that affect the use of value-based selling and the subsequent influences on salespeople’s sales performance.

Industrial salespeople from five steel manufacturers were surveyed. Scales measure three components of value-based selling: comprehension, crafting and confirmation. Partial least squares path analysis tested the conceptual model.

Salespeople’s learning orientation has the greatest impact on the use of value-based selling. Managerial support exerts a positive effect on crafting. Salespeople’s experience has a positive impact on comprehension and confirmation. The implementation of value-based selling has a positive effect on sales performance.

The research is cross-sectional, with a small sample size (n = 60). The data were collected from a single source (i.e. salespeople).

The results suggest that value-based selling is a multi-component sales process that requires balancing managerial actions among individual and organizational factors.

This paper presents a broad evaluation of measures and assessments of value-based selling in business-to-business sales settings. The findings provide new elaborations on the theoretical and practical implications of value-based selling and reveal which individual and organizational factors affect the usage of value-based selling.

The purpose of this paper is to analyze the subject-specific literature on service and flexibility and derive a conceptualization of the linkages between provider flexibility and customers’ value creation.

The authors analyze existing perspectives on service and flexibility and propose linkages between provider flexibility and customer value creation.

Drawing on the service logic literature, and utilizing real-world examples, this paper advances propositions and a conceptual model of how flexibility can contribute to value creation.

This paper establishes the basis for a practical and applicable flexibility perspective on value creation. It is particularly important for service-oriented providers and other firms operating in dynamic contexts.

The propositions and conceptual model offer suggestions on the manner in which provider flexibility contributes to customer value creation. Contextual influences that moderate provider flexibility in value creation are also included.

This paper contributes a novel perspective on service, which may serve as the starting point for the development of a more formal flexibility perspective on value creation.

This article aims to investigate the nature and characteristics of business model elements required for successful service innovation. The authors examine which unique resources and capabilities product-centric firms should develop and deploy to pursue service innovation.

Data collected from several research projects support iterations across empirical data and theory, in an abductive process. Empirical data come from product-centric firms; interviews and focus groups were the main data collection methods.

Specific resources and capabilities are needed for the proposed business model elements, as defined by the overarching strategy and structure. Firms can approach the process of service innovation from different starting points and sequences, depending on the context.

Because it takes a synthesizing approach, this research lacks some detail. By taking a business model approach with a holistic perspective, it forgoes detailed descriptions to provide greater breadth.

Managers can use business models as tools to visualize changes, which should increase internal transparency, understanding, and awareness of service opportunities and necessary changes. Dependencies exist among elements; a change in one element likely affects the others. This study provides insights into which efforts are necessary and offers managers a guiding framework.

By providing a multidimensional perspective on service innovation, this study merges various previous research into a synthesized discussion. Combining a resources and capabilities perspective with a business model framework also leads to new insights regarding service innovation and associated activities.

The purpose of this study is to increase understanding of service innovation in networks. Especially the most loosely coupled forms of innovation networks, innovation communities, can be valuable in service innovation, but may not be manageable in the traditional sense. Rather, they may require orchestration characterized by discreet guidance that also accommodates the specific nature of services. Through informed orchestration, it is possible to deal with several contingencies, and influence the absorptive capacity at the network level to generate new service innovations.

These issues are examined through literature review and a case study.

The findings suggest that individual orchestration mechanisms may be more closely connected to certain contingencies than others, and that both orchestration mechanisms and contingency factors have a role in absorptive capacity development within service innovation networks.

While the case study approach limits the possibility to make wide generalizations, the in-depth insights provide valuable knowledge.

There has been a shift from inter-firm competition towards competition between networks of organizations, increasing relevance of absorptive capacity at the network level.

Despite the recent increase in service innovation literature, research on service innovation taking place in networks is scant. Knowledge on some aspects can be derived from more traditional notions on technological innovation, but both the distinctive features of services and central characteristics of innovation networks make it necessary to reconsider some of the established views. In particular, managing – or rather orchestrating – service innovation is still a challenging area.

The purpose of this paper is to explore strategies for visualizing the value of service‐based offerings in a B2B context. By taking a process perspective on the offering life cycle, this paper also aims at distinguishing which visualization strategies are most appropriate using at which life‐cycle stages.

The study employed a qualitative, multiple‐case study research design involving five manufacturing firms.

Primary findings are that firms need to make use of several different visualization strategies depending on, among other things, the key stakeholders and also where the firm's offering is currently positioned in the service‐based offering life cycle.

While the empirical data is from only one sector – i.e. manufacturing – managers from other B2B sectors should have an interest in the results and the key aspects identified. Further research could also establish linkages to performance metrics.

Visualization strategies have been relatively rarely studied from a B2B perspective, and the process dimension, especially, is novel.

The purpose of this paper is to explore the implications for the sales function of the infusion of services by formerly product-based firms. In particular, it aims at identifying the changes that need to be made at the sales-function level if the services are to be successfully sold.

This research is an exploratory qualitative case study. Data were collected by focus group discussions and in-depth interviews with relevant managers in three large multinational companies based in Northern Europe, which were pursuing service-led growth.

The effects of service infusion processes on the sales function could be seen with respect to the three parts of the analytical framework: organization, roles, and competences. The results illustrate the need for a changed perspective with respect to all three parts, if a product-based firm is to be successful in the infusing of associated services into its portfolio of offerings. Analysis of the results identifies key operational initiatives that management needs to understand and implement when corporate and marketing strategies increasingly focus on service-led growth.

The study was exploratory and vendor centric, which means that it did not quantitatively assess the results or directly involve the customers at whom the services were directed. Also, the choice of business-to-business firms limits the capacity to generalize the findings.

Whereas relationship-based and value-based selling are approaches more geared to the sales-force level, the study reported in this paper set out to understand fundamental differences at the sales-function level when firms pursue service-led growth. The findings suggest that the realignment of corporate strategy toward an increased focus on services may have far-reaching implications for the sales function.

The purpose of this paper is to explore the role of innovation modes in understanding challenges of integrated NSD and NPD, and the use of structured NSD processes in manufacturing firms.

The research is based on a two-stage multiple case study. The first stage is an interview study of 17 key informants representing manufacturing firms in the machine industry. The second stage is an in-depth study of three service innovations at three manufacturing firms based on 16 interviews with key informants.

The results of the study show that NSD processes are often more structured if the service is developed separately from the product. The fact that different innovation modes benefit from varying degrees of structure in the development process means that integrated service development can be challenging. Furthermore, service innovations often follow a trajectory of innovation modes before succeeding in the market. Some innovation modes occur within the NSD process, while others occur outside the process. One success factor for NSD is the fit between the innovation modes and the NSD process, rather than the NSD process per se.

This research uses innovation modes to explain why NSD in manufacturing firms is often performed on an ad hoc basis, and how service innovations go through a trajectory of innovation modes. In this way, the study contributes to theory development of service innovation, and specifically service innovations in manufacturing firms.

The purpose of this paper is to investigate the resources and capabilities required by manufacturers to develop and deliver multi-vendor solutions.

A multi-case design comprising six UK-based manufacturers: two from each of the aerospace/defence, information technology and telecommunications sectors.

Manufacturers can be characterized by their propensity to include products from other vendors in their solutions; single vendor solution providers (SVSPs) focus on solutions comprising their own products, while multi-vendor solution providers (MVSPs) fully embrace products from other manufacturers. Three capabilities were identified which distinguish MVSPs from SVSPs given the complexity of multi-vendor solutions (expertise specifying the solution, engineers trained in implementing/supporting the solution, partnerships with component suppliers of the solution). These capabilities are underpinned by both technical capability and impartiality in solution specification.

MVSPs need to be impartial when specifying customer solutions. They should be guided by the best interests of the customer rather than the interests of the product-based SBUs. Achieving impartiality can conflict with some manufacturers' product heritage. The research has focused on three sectors; further research is needed to test whether the findings are applicable beyond these sectors.

Solutions are a valuable approach in creating market differentiation, although not all manufacturers will possess the resources/capabilities to be successful.

A continuum of solution providers is proposed; SVSPs at one extreme and MVSPs at the other. The operant resource-based capability “impartiality” was identified as being particularly important to MVSPs in creating value for customers.

The current research aims to analyze antecedents and consequences of using the information provided by customers involved in new service development (NSD). It also seeks to examine the moderating effect of technological turbulence on the antecedents and consequences of information use.

Data were collected from service firms in a variety of industrial sectors. Unit of analysis was a NSD project in which current or potential customers were involved during its development process. A self-administered mail survey was used to collect the data. A total of 102 complete questionnaires were returned. The proposed model was tested using partial least squares.

The results indicate that the instrumental use of the information collected from customers involved in NSD can lead to higher service advantage and service newness and in turn to higher market performance. Findings reveal that higher recording and reviewing of information collected from customers involved in NSD result in greater use of the information during the NSD process. An important result is that under technologically turbulent environments, recording and reviewing information from customers involved in NSD is less likely to result in a higher instrumental use of such information. Finally, the authors' results show that when technological turbulence is high the instrumental use of information from customers involved in NSD has lower value for both service advantage and service newness.

Findings confirm the importance of customer involvement for NSD in a business context. Using the information from customers involved in NSD to resolve specific problems or make decisions regarding NSD projects can result in enhanced service performance. Moreover, information processing capabilities are key antecedents to instrumental information use. Finally, managers should be aware of the potential negative effect of technological turbulence.