Dynamic customer-oriented relational capabilities: how do they impact internationalizing firm performance?

Abstract

Purpose

This work proposes that a multi-national service company (MNSC) needs to develop dynamic customer-oriented relational capabilities (DCRC), constituting dynamic service customization (DySC), dynamic customer integration (DyCI) and dynamic timeliness of service delivery (DyTSD) capabilities, to gain competitive advantage and performance in its internationalization efforts.

Design/methodology/approach

For empirical validation of the framework, developed through qualitative interviews, this study includes multi-cross-sectional data from twelve countries, four each in the category of underdeveloped (Africa), developing (Asia) and developed economies (Europe). Covariance-based structural equation modelling is used to test the hypotheses.

Findings

The study supports that DySC, DyCI and DyTSD capabilities have a significant positive influence on firm competitive advantage and performance across economies. The levels of competition intensity and regulatory restrictions, an outcome of the type of economy, have negative intervening effects, with varying intensities across economies.

Practical implications

This work guides the internationalization service managers to leverage DCRC across national borders keeping the state of the economy into consideration.

Originality/value

This work proposes a model of DCRC, based on the Intangibility, Heterogeneity, Inseparability and Perishability (IHIP) service framework, that enables firms to derive competitive advantage and performance across economies with varying environmental conditions.

Citation

Mishra, A. and Anning-Dorson, T. (2022), "Dynamic customer-oriented relational capabilities: how do they impact internationalizing firm performance?", Journal of Service Theory and Practice, Vol. 32 No. 6, pp. 843-871. https://doi.org/10.1108/JSTP-10-2021-0202