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Does cooperating with customers support the financial performance of business-to-business professional service firms?

Vida Siahtiri ( University of Tasmania , Hobart, Australia)

Journal of Service Theory and Practice

ISSN: 2055-6225

Article publication date: 8 May 2017

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Abstract

Purpose

The purpose of this paper is to analyze the relationship between Business-to-business professional service firms (B2B PSFs) customer cooperation capability (CCC) and its financial performance. This study explores how deep and broad expert and customer knowledge assist PSFs to enhance CCC and increase financial performance.

Design/methodology/approach

A multiple informant survey was designed and administered to B2B PSFs’ managers in Taiwan.

Findings

The results indicate that customer and expert knowledge improve PSFs’ CCC and that CCC has a positive U-shaped relationship with financial performance. Importantly, the ability to control for the efficiency of customer cooperation moderates the U-shaped relationship between CCC and financial performance by diminishing the negative effect of low levels of CCC.

Originality/value

The contribution of this study rests on the theory developed and empirical support disclosing the complex relationship between PSFs’ CCC and financial performance. The study further contributes to the literature by presenting different effect of deep and broad expert and customer knowledge on development of CCC. The study extends the literature by introducing control for efficiency of customer cooperation as a mechanism that has the capacity to compensate for lower levels of CCC.

Keywords

Acknowledgements

This paper forms part of a Special section ANZMAC 2015.

Citation

Siahtiri, V. (2017), "Does cooperating with customers support the financial performance of business-to-business professional service firms?", Journal of Service Theory and Practice, Vol. 27 No. 3, pp. 547-568. https://doi.org/10.1108/JSTP-03-2016-0053

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited