David Elvers and Chie Hoon Song
The purpose of this paper is to gain knowledge on the impact of customer integration on the new product development of chemical companies in growing markets. The literature…
Abstract
Purpose
The purpose of this paper is to gain knowledge on the impact of customer integration on the new product development of chemical companies in growing markets. The literature affirms the value of customer integration in the new product development, but it is relatively silent on the integration of value-adding partners, who are located further down the value chain. Considerable research has shown that organizations are more successful, when they integrate customers and suppliers into the product development and design process. The research described herein juxtaposes two modes of current theory on customer integration and refines and expands the existing theoretical framework. Hence, the purpose is to build theories from cases to provide an answer to the question of how an organization adopts customer integration by refining the understanding of the different roles of value-adding partners in the innovation process.
Design/methodology/approach
The paper uses an extended case method, including the resource-based view, literature related to the customer integration and four cases as a basis for establishing theoretical framework. Several in-depth interviews were conducted to gather information on the managerial practice to strengthen the grounding of theory.
Findings
An explorative study provides a value chain-oriented theory for chemical companies to improve the efficiency of the product development process. Therefore, it differentiates between the integration of direct and indirect customers. Each party can bring in complementary resources, which are not available internally. The findings show that integration of indirect customers contributes to more accurate anticipation of market needs. This allows companies to increase their success rate for new product development (NPD) activities.
Research limitations/implications
The results of this explorative study cannot be generalized, as theory building from case studies stands on its own analytic unit. Therefore, scholars are encouraged to test the proposed propositions using quantitative data and to apply them in other industrial sectors.
Practical implications
The paper includes implications for the development of a more efficient research and development, as well as launch, process of radical innovation of chemical companies.
Originality/value
This is one of the first studies using a value chain-oriented approach for customer integration during new product development.
Details
Keywords
Not many weeks back, according to newspaper reports, three members of the library staff of the School of Slavonic and East European Studies in London were dismissed. All had…
Abstract
Not many weeks back, according to newspaper reports, three members of the library staff of the School of Slavonic and East European Studies in London were dismissed. All had refused to carry out issue desk duty. All, according to the newspaper account, were members of ASTMS. None, according to the Library Association yearbook, was a member of the appropriate professional organisation for librarians in Great Britain.
Johra Kayeser Fatima, Rita di Mascio, Raechel Johns and Ali Quazi
The purpose of this paper is to explore the mediation impacts of core, relational and tangible service-quality features on the relationship between customer–frontline employee…
Abstract
Purpose
The purpose of this paper is to explore the mediation impacts of core, relational and tangible service-quality features on the relationship between customer–frontline employee rapport and customer dependency in an emerging market context. The study examines the moderating effects of relationship age and frequency of customers’ physical visits.
Design/methodology/approach
Partial least squares-based structural equation modelling was used to analyse data from a survey of 290 financial services customers in Dhaka, Bangladesh using the convenience sampling technique.
Findings
Results show that relational service-quality features had the largest mediation impact on the rapport–dependency relationship, followed by core and tangible service-quality features. Relationship age was not found to be a significant moderator for any relationship. However, the moderation effect of the frequency of customers’ physical visits to the service premises was significant, but only for the link between relational service-quality features and customer dependency and not for the other two types of service-quality features.
Research limitations/implications
Data collected from several other emerging markets would provide more rigorous findings: this is recommended as an avenue for further research.
Practical implications
Practitioners can manipulate specific relational or tangible service-quality features to increase customer dependency on their firms, thus ensuring longer-term customer retention.
Originality/value
This study is the first one to examine the relative significance of the impacts of relational features vs tangible features of services on customer dependency in the emerging market context, with rapport serving as an antecedent.