Prelims

Half Title Page

INNOVATION AND STRATEGY

Series Page

REVIEW OF MARKETING RESEARCH

Editor-in-Chief: Naresh K. Malhotra

Title Page

REVIEW OF MARKETING RESEARCH VOLUME 15

INNOVATION AND STRATEGY

EDITED BY

RAJAN VARADARAJAN

Mays Business School, Texas A&M University, TX, USA

SATISH JAYACHANDRAN

Darla Moore School of Business, University of South Carolina, SC, USA

United Kingdom – North America – Japan – India – Malaysia – China

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Emerald Publishing Limited

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First edition 2018

Copyright © 2018 Emerald Publishing Limited

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British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN: 978-1-78754-829-9 (Print)

ISBN: 978-1-78754-828-2 (Online)

ISBN: 978-1-78754-830-5 (Epub)

ISSN: 1548-6435 (Series)

Editorial Advisory Board

• Rick P. Bagozzi

  University of Michigan, USA

• Russell Belk

  York University, Canada

• Ruth Bolton

  Arizona State University, USA

• George Day

  University of Pennsylvania, USA

• Michael Houston

  University of Minnesota, USA

• G. Tomas M. Hult

  Michigan State University, USA

• Shelby Hunt

  Texas Tech University, USA

• Dawn Iacobucci

  Vanderbilt University, USA

• Barbara Kahn

  University of Pennsylvania, USA

• Wagner Kamakura

  Rice University, USA

• Donald Lehmann

  Columbia University, USA

• Debbie MacInnis

  University of Southern California, USA

• Kent B. Monroe

  University of Illinois, USA

• Nelson Ndubisi

  King Fahd University of Petroleum & Minerals , Saudi Arabia

• A. Parasuraman

  University of Miami, USA

• William Perreault

  University of North Carolina, USA

• Robert A. Peterson

  University of Texas, USA

• Nigel Piercy

  University of Warwick, UK

• Jagmohan S. Raju

  University of Pennsylvania, USA

• Vithala Rao

  Cornell University, USA

• Brian Ratchford

  University of Texas, USA

• Aric Rindfleisch

  University of Illinois, USA

• Jagdish N. Sheth

  Emory University, USA

• Itamar Simonson

  Stanford University, USA

• David Stewart

  Loyola Marymount University, USA

• Rajan Varadarajan

  Texas A&M University, USA

• Stephen L. Vargo

  University of Hawaii, USA

• Michel Wedel

  University of Maryland, USA

• Manjit Yadav

  Texas A&M University, USA

About the Guest Editors and Authors

Guest Editors

Dr. Rajan Varadarajan is University Distinguished Professor and Distinguished Professor of Marketing, Regents Professor, and holder of the Ford Chair in Marketing and E-Commerce in the Mays Business School at Texas A&M University. His primary teaching and research interests are strategic marketing, innovation, and environmental sustainability. He has published over 100 journal articles and book chapters, and made over 200 presentations at conferences, consortia, universities, and other forums. His research on topics such as competitive advantage, corporate diversification and divestitures, e-commerce, environmental sustainability, global competitive strategy, innovation, market pioneering, multi-market competition, outsourcing, strategic alliances, strategic marketing, strategy typologies and taxonomies, and interdependencies between corporate, business and marketing strategy have been published in the Journal of Marketing, Journal of the Academy of Marketing Science, Journal of Retailing, Academy of Management Journal, Strategic Management Journal, Management Science, and other journals.

He is Fellow of the American Marketing Association and Distinguished Fellow of the Academy of Marketing Science. He served as Editor of the Journal of Marketing from 1993 to 1996 and as Editor of the Journal of the Academy of Marketing Science from 2000 to 2003. He currently serves on the Editorial Review Boards of a number of journals including the Journal of Marketing, Journal of the Academy of Marketing Science, and Journal of International Marketing.

He is a recipient of a number of honors and awards including the Texas A&M University Mays Business School Lifetime Achievement Award for Research and Scholarship (2016), American Marketing Association-Irwin-McGraw Hill Distinguished Marketing Educator Award (2015), American Marketing Association Paul D. Converse Award for Contributions to the Field of Marketing (2008), University of Massachusetts Distinguished Alumnus Award (2008), Academy of Marketing Science Distinguished Marketing Educator Award (2003), American Marketing Association Marketing Strategy Special Interest Group Vijay Mahajan Award for Lifetime Contributions to Marketing Strategy (2003), Journal of Marketing best paper award (2001), and Journal of Academy of Marketing Science best paper award (2008, 2010 and 2017).

Dr. Satish Jayachandran (PhD, Texas A&M University) is the James F. Kane Professor of Business and the Professor of Marketing at the Darla Moore School of Business. He is currently serving as Chair of the Department of Marketing. He received a Bachelor’s Degree in Engineering from the University of Kerala, India, and a Master’s in Business Administration from the Indian Institute of Management Calcutta. His research is in the area of marketing strategy and has been published in the Journal of Marketing, the Journal of Marketing Research, the Journal of the Academy of Marketing Science, the Journal of International Marketing, and the Strategic Management Journal. With his coauthors, he was a recipient of the Harold H. Maynard award for 2001 from the Journal of Marketing and the Tamer Cavusgil Award for 2009 from the Journal of International Marketing for outstanding papers published in those journals. He was nominated as a “young scholar” by the Marketing Science Institute in 2003 based on his research productivity and managerial interest in research. He has taught graduate courses at Wirtschaftsuniversitat Wien (Vienna University of Business and Economics) in Vienna, Austria; Tecnologico de Monterrey, Campus Guadalajara, Mexico; and the Indian School of Business, Hyderabad, India. He received the Alfred G. Smith Award for Outstanding Teaching from the Moore School in 2005. He is an Associate Editor of the Journal of Marketing Research and the Journal of Marketing.

Authors

Ankit Anand is fourth-year Doctoral Student at Center for Excellence in Brand & Customer Management, J. Mack Robinson College of Business, Georgia State University. Before joining the PhD program, he completed his Masters in Applied Mathematics and was Research Associate in the Marketing department at Indian School of Business, Hyderabad, India. He has published articles in the Journal of Marketing and Journal of Retailing.

Dr. Neeraj Bharadwaj is an Associate Professor of Marketing at the Haslam College of Business at University of Tennessee. He received his PhD from the University of Wisconsin at Madison. His scholarly pursuits strive to combine academic rigor with practical relevance, and often explore the interface between marketing and other disciplines.

His current research (1) investigates the influence of marketing assets and/or marketing presence on the top management team on firm financial performance metrics, (2) explores the impact of the omni-channel media environment on decision-making, and (3) utilizes structured and unstructured data to evaluate innovation outcomes.

His articles appear in the Journal of Marketing, Journal of the Academy of Marketing Science, International Journal of Research in Marketing, Journal of Retailing, Marketing Letters, and Journal of Product Innovation Management, among others, and he has written several Harvard Business School Publishing case studies that bring his academic research into the classroom.

He is recognized for his research activity and is a recipient of numerous teaching awards for courses taught at both the graduate- and undergraduate-level, including being named: a 2017 Top 40 Undergraduate Business Professor by Poets & Quants, recipient of the 2017 Most Outstanding MBA Faculty Member Award, and recipient of the 2017 Allen H. Keally Excellence in Teaching Award.

He has also served as Consultant and Seminar Leader for government clients and leading multinational corporations, and as Faculty at Temple University, Babson College, University of Texas at Austin, and University of Chicago. Prior to earning his doctorate, he worked in product and price management at Miller Brewing Company.

Dr. Roger Calantone is a University Distinguished Professor and Eli Broad University Professor of Business in the Eli Broad Graduate School of Management at Michigan State University. He joined MSU in 1991. In 2009, he was honored as a Leading Researcher by the International Association for the Management of Technology. He has authored over 400 peer-reviewed journal and proceedings articles, 5 books, and several book chapters. His publications and research are principally in product design and development processes; commercialization and distribution of new products; and brand and organization process metrics. He is the recipient of numerous research and publication awards. As of July 2017, his H-Index was 81. His research has been published in the Marketing Science, Management Science, Decision Sciences, IEEE Transactions on Engineering Management, Journal of Marketing, Journal of Marketing Research, Journal of Product Innovation Management, Academy of Management Journal, Strategic Management Journal, International Journal of Research in Marketing, and other journals.

Dr. Ravindra Chitturi is Associate Professor of Marketing and the Director of Executive Research at the College of Business & Economics at Lehigh University. He holds a BE in Electrical Engineering from NIT-Trichy, an MS in Computer Science from IIT-Chicago, and Executive MBA & PhD from The University of Texas at Austin. He has published articles in premier scholarly journals such as the Journal of Marketing, Journal of Marketing Research, International Journal of Design, Journal of Product Innovation Management, and Journal of Personal Selling & Sales Management. In 2012 and 2014, his research received the prestigious Emerald Management Reviews Citations of Excellence awards. The 2014 Citations of Excellence award recognized his research article as one of the top-35 most impactful articles out of 200,000 +  research papers in the past 15 years across premier scholarly journals such as Journal of Finance, SMJ, and JM. His research won best paper awards at the 2010 AMA Marketing & Public Policy Conference and 2008 Behavioral Pricing Conference. His topics of research are Emotional Designs, Creativity, Customer Delight, Sustainability, and Brand Strategy.

Prior to joining Lehigh University he worked for hi-tech firms such as Intel and IBM. Most recently, he was Head of Engineering at a hi-tech startup in Dallas. He teaches in the executive programs and consults with leading firms worldwide on the topics of Developing Leaders, Breakthrough Creativity & Innovation, Product Design, Brand Management, and Customer Delight. His current topics of interest are Innovation, Entrepreneurship, Economic Globalization, and National/International Security.

Dr. Anna Shaojie Cui is Associate Professor of Marketing at the University of Illinois at Chicago (UIC). She received her PhD from Michigan State University. Before her academic career, she worked in the financial sector. Her research interests are in the area of marketing strategy and innovation. She looks at (1) how firms innovate and the role of marketing in firm innovation and (2) the evolution of business partnerships and its implications for firm performance. She is particularly interested in understanding how business organizations learn over time to change their behaviors, better serve their customers, and enhance performance. Her research has appeared in leading journals such as Journal of Marketing, Strategic Management Journal, Journal of the Academy of Marketing Science, International Journal of Research in Marketing, and Journal of Product Innovation Management.

Dr. Peggy Cunningham is R.A. Jodrey Chair and Professor in the Rowe School of Business. She joined Dalhousie University in January 2009. She was Dean of the Faculty of Management for six years, and Director of the Rowe School for one year. Before joining Dalhousie, she was Professor at Queen’s School of Business. She has also worked in the United Kingdom, Germany, China, and the United States. She was in industry before becoming an academic.

She received her PhD in Marketing from Texas A&M University. Her research falls within the areas of ethical leadership, corporate social responsibility, stakeholder engagement, strategy, and marketing. Her work has been published in a number of journals including the Journal of Business Ethics, the Journal of the Academy of Marketing Science, the California Management Review, and the Journal of International Marketing. She has written chapters for ethics and corporate social responsibility textbooks, has published over 50 cases, and has authored multiple editions of three top-selling marketing textbooks.

She is also an acclaimed Teacher. She has taught courses in ethics, corporate social responsibility, and marketing strategy for over 25 years. Her awards include the PriceWaterhouseCoopers Leaders in Management Education award, the Academy of Marketing Science’s Outstanding Teacher award, and the Frank Knox Award for Teaching Excellence.

Dr. V. Kumar (VK) is Regents’ Professor, Richard and Susan Lenny Distinguished Chair & Professor of Marketing, Executive Director, Center for Excellence in Brand & Customer Management, and Director of the PhD Program in Marketing at the J. Mack Robinson College of Business, Georgia State University; Chang Jiang Scholar, Hong Kong University Science of Technology, China; Fellow, Hagler Institute for Advanced Study, Texas A&M University, College Station, TX; Senior Fellow, Indian School of Business, India. He has been recognized with a total of 14 Lifetime Achievement Awards, and has published over 250 articles and 25 books. He is recognized as a marketing legend through his scholarly contributions in the Legends in Marketing Series by Sage Publications.

Dr. Gary L. Lilien is Distinguished Research Professor of Management Science at Penn State and is Distinguished Professor of Marketing at the University of Technology, Sydney. He is also Cofounder and Research Director of Penn State’s Institute for the Study of Business Markets (ISBM).

He is the author or coauthor of 15 books (including Marketing Models with Phil Kotler, Marketing Engineering, and Principles of Marketing Engineering), as well as over 100 professional articles. He was Departmental Editor for Management Science, is on the editorial boards of the Journal of Marketing and the International Journal for Research in Marketing, is Functional Editor for Marketing for Interfaces, and is on the Advisory Board of the Journal of Marketing Research. He is former Editor-in-chief of Interfaces, former President as well as Vice President/Publications for The Institute of Management Sciences. He is Inaugural INFORMS Fellow, was honored as Morse Lecturer for INFORMS, and received the Kimball medal for contributions to the field of operations research. He is Inaugural Fellow of the European Marketing Academy, Inaugural ISMS Fellow, and Inaugural AMA Fellow.

He has received three honorary doctorates, was honored as the 2008 AMA/Irwin/McGraw Hill Educator of the Year award, and received the 2012 Gilbert Churchill Award from the AMA for career contributions to the field of Marketing Research. In 2010, the ISMS-MSI Practice Prize for the best applied work in marketing science globally was renamed the Gary Lilien ISMS-MSI Practice Prize in his honor. He received the AMA Inter-organizational SIG Lifetime Achievement Award in 2014, was named the EMAC Distinguished Marketing Scholar for the year 2015, and received the Buck Weaver award for work integrating theory and practice in marketing in 2017.

Dr. Mike McCardle is Visiting Professor of Marketing at the University of North Florida, where he teaches both undergraduate and graduate classes. His research interest focuses on strategic issues such as new product development, brand/category management, and sales. His research has been published in Marketing Letters, Journal of Marketing Communication, Journal of Marketing Theory and Practice, Journal of Case Studies, and Journal of Critical Incidents. He received his BBA from Jacksonville (AL) State University, an MA in Marketing from the University of Alabama, and a PhD from University of Central Florida. His industry experience includes serving as Editor of a regional golf publication, sales representative in multiple industries, and as a store manager of a retail drug chain.

Dr. Neil A. Morgan is Professor and PetSmart Distinguished Chair of Marketing at Indiana University’s Kelley School of Business. He has previously held faculty positions at UNC, Cambridge, and Cardiff University and was Visiting Professor at the University of Michigan. He received his PhD in Business Administration from the University of Wales. His research spans a range of strategic marketing issues with a focus on linking marketing-related resources and capabilities with firm performance, marketing strategy implementation, customer feedback systems, and performance outcomes associated with marketing. His research has been published in numerous journals including Journal of Marketing, Marketing Science, Strategic Management Journal, Journal of Operations Management, Decision Sciences, Journal of the Academy of Marketing Science, and International Journal of Research in Marketing. His research has been widely recognized, including AMA Global Marketing SIG “Excellence in Global Marketing Research Award” (2013); Emerald “Citation of Excellence” Award (2013); and as a Finalist for the Journal of Marketing Harold H. Maynard Award (2013, 2015, and 2016) and MSI/Root Award (2015).

He serves as Co-Editor of the Journal of Marketing (2017-date) and is also Associate Editor for the Journal of the Academy of Marketing Science (2015-date). He serves on a number of other editorial boards including Journal of International Business Studies, International Journal of Research in Marketing, and Journal of International Marketing. In addition, he serves as Ad Hoc reviewer for numerous journals including Marketing Science, Journal of Marketing Research, Management Science, Decision Sciences, Journal of Operations Management, Journal of Services Research, and Journal of Retailing.

Ms. Nandini Nim is second-year Doctoral Student at Center for Excellence in Brand & Customer Management, J. Mack Robinson College of Business, Georgia State University. Before joining the PhD program, she finished her Masters in Business Economics and was Junior Research Fellow at the University of Delhi. She is working on a series of papers on the digital payment systems and their effect on marketing.

Dr. Jelena Spanjol is Professor and heads the Institute for Innovation Management at the Munich School of Management, Ludwig-Maximilians-Universität (LMU) in Munich, Germany. Prior to joining LMU, she held faculty positions at the University of Illinois at Chicago (UIC) and Texas A&M University. Her research examines innovation dynamics across micro-, meso-, and macro-levels, including innovation adoption, management, and strategy issues. In her current work, she explores how innovation is motivated by and addresses societal challenges. Her research has been published in the Journal of Marketing, Journal of the Academy of Marketing Science, Journal of Product Innovation Management, Journal of Service Research, Journal of Public Policy & Marketing, Marketing Letters, Journal of Business Ethics, Health Psychology, and in various book chapters. She currently serves on the Editorial Review Boards of the Journal of Product Innovation Managment and Creativity and Innovation Management, as well as serving as an Associate Editor for the Journal of Business Research.

Dr. Raji Srinivasan is Sam Barshop Professor of Marketing Administration in the McCombs School of Business at the University of Texas at Austin. She received her PhD from Pennsylvania State University, MBA from Indian Institute of Management, Ahmedabad, India, and MS in Physics from Madras Christian College, Chennai, India.

Her major area of study is marketing strategy and her research interests include marketing metrics, organizational innovation, new product development and design, global outsourcing, and social media. She has published many articles in academic journals such as the Journal of Marketing, Management Science, International Journal of Research in Marketing, Journal of the Academy of Marketing Science, Journal of Retailing, and other marketing forums.

She is the inaugural winner of the Erin Anderson Award for an Emerging Female Marketing Scholar and Mentor (2009) and American Marketing Association’s Varadarajan Award for Early Career Contributions in the area of marketing strategy and management (2010).

Her 2005 article on marketing in a recession published in International Journal of Research in Marketing won the best article award. She has reviewed for many journals and currently serves on the Editorial Review Board of the Journal of Marketing and is an Associate Editor for the Journal of the Academy of Marketing Science.

Dr. Douglas W. Vorhies is Professor of Marketing, School of Business Administration, University of Mississippi. Dr. Vorhies holds a Bachelor of Science degree from Iowa State University, an MBA from Western Illinois University, and the PhD in Marketing from the University of Arkansas. While at Arkansas, he was American Marketing Association Doctoral Consortium Fellow (1993).

He has published in the Journal of Marketing, Strategic Management Journal, Journal of the Academy Marketing Science, International Journal of Research in Marketing, Decision Sciences, Journal of Product Innovation Management, Journal of Personal Selling and Sales Management, Industrial Marketing Management, and European Journal of Marketing. He serves on the editorial review boards of the Journal of the Academy of Marketing Science and the Journal of Business Research. In 2009 and 2012, he was honored by the University of Mississippi Business School with their Senior Researcher of the Year Award in addition to winning the Award for Best paper by a Business School Faculty member in 2012.

Lisa Welzenbach is Doctoral Student at the Institute for Innovation Management, Munich School of Management, Ludwig-Maximilians-Universität (LMU) in Munich, Germany. She has obtained her Master of Science in Corporate Management & Economics from Zeppelin University, Friedrichshafen, Germany, where she explored consumer perceptions of family firms in her Master thesis. Lisa’s research interests span the innovation and marketing fields, adopting a micro-level perspective related to consumer psychology, innovation adoption and diffusion.

Dr. J. Chris White is Associate Professor of Marketing at the Neeley School of Business at Texas Christian University. His publications and research are primarily focused on strategic decision-making and managerial information processing, marketing strategy formulation and implementation, and international marketing. His research has been featured in numerous academic journals including Journal of Marketing (including a Harold H. Maynard Award winning article), Journal of the Academy of Marketing Science (where he serves on the Editorial Board), Journal of Retailing, Journal of International Business Studies, Marketing Letters, and Marketing Education Review. He holds a BBA from West Texas State University, and an MBA and PhD from Texas A&M University.

Dr. Fang Wu is Clinical Professor of Marketing at University of Texas at Dallas. She received her PhD from the University of Texas at Austin. Her research interests include customer involvement in innovation, exploration, and exploitation in innovation, new product alliances, and the interface between marketing and technological capability. Her research has been published in journals including Strategic Management Journal, International Journal of Research in Marketing, Journal of the Academy of Marketing Science, Journal of Product Innovation Management, Journal of International Business Studies, IEEE Transactions on Engineering Management, among others.

Dr. Yazhen Xiao obtained her doctorate in Business Administration from the University of Illinois at Chicago (UIC). She is Assistant Professor of Marketing at the University of Tennessee, Knoxville. Her current research interests include innovation, consumer emotions and decision-making, and health care services. She has published in refereed journals including the Journal of Product Innovation Management, Journal of Service Research, Journal of Business Research, Journal of Business Ethics, and International Marketing Review.

Introduction

Overview

Review of Marketing Research, now in its 15th volume, is a publication covering the important areas of marketing research with a more comprehensive state-of-the-art orientation. The chapters in this publication review the literature in a particular area, offer a critical commentary, develop an innovative framework, and discuss future developments, as well as present specific empirical studies. The first 14 volumes have featured some of the top researchers and scholars in our discipline who have reviewed an array of important topics. The response to the first 14 volumes has been truly gratifying and we look forward to the impact of the 15th volume with great anticipation.

Publication Mission

The purpose of this series is to provide current, comprehensive, state-of-the-art articles in review of marketing research. Wide-ranging paradigmatic or theoretical, or substantive agendas are appropriate for this publication. This includes a wide range of theoretical perspectives, paradigms, data (qualitative, survey, experimental, ethnographic, secondary, etc.), and topics related to the study and explanation of marketing-related phenomenon. We reflect an eclectic mixture of theory, data, and research methods that is indicative of a publication driven by important theoretical and substantive problems. We seek studies that make important theoretical, substantive, empirical, methodological, measurement, and modeling contributions. Any topic that fits under the broad area of “marketing research” is relevant. In short, our mission is to publish the best reviews in the discipline.

Thus, this publication bridges the gap left by current marketing research publications. Current marketing research publications such as the Journal of Marketing Research (United States), International Journal of Marketing Research (United Kingdom), and International Journal of Research in Marketing (Europe) publish academic articles with a major constraint on the length. In contrast, Review of Marketing Research can publish much longer articles that are not only theoretically rigorous but also more expository, with a focus on implementing new marketing research concepts and procedures. This also serves to distinguish this publication from Marketing Research magazine published by the American Marketing Association (AMA).

Articles in Review of Marketing Research should address the following issues:

• critically review the existing literature;

• summarize what we know about the subject – key findings;

• present the main theories and frameworks;

• review and give an exposition of key methodologies;

• identify the gaps in the literature;

• present empirical studies (for empirical papers only);

• discuss emerging trends and issues;

• focus on international developments;

• suggest directions for future theory development and testing; and

• recommend guidelines for implementing new procedures and concepts.

Chapters in This Volume

This special issue focuses on marketing strategy and innovation. A key aspect of how a firm competes in its chosen markets is through innovations of various types such as product, process, and business model innovations. Innovation can be fostered at various levels such as firm, business, product, and brand. Such innovations can be a source of generating and sustaining competitive advantage in the marketplace. The chapters in this volume represent an eclectic mix of substantive issues and methodological approaches to strategy and innovation contained in conceptual and empirical papers.

Bharadwaj introduces a taxonomy of approaches available for strategic decision making in an information-rich environment in the era of Big Data. He then applies this taxonomy to an innovation context, mapping a stylized version of the phases of the innovation process onto the four decision-making approaches. This results in an organizing framework for understanding strategic decision making in the realm of innovation.

Spanjol, Xiao, and Welzenbach synthesize the literature on concepts related to successive innovation that is fragmented and limited across marketing and management disciplines. They identify the core dimensions of successive innovation and provide a cohesive framework to guide future research in this area. On this basis, they identify several directions for future research.

Customer Involvement in Innovation is an intriguing area. Cui and Wu review empirical research in this field in a way that better connects this research with marketing strategy literatures and offer opportunities for further theoretical development. There remains a need for research conducted from the firm’s strategic perspective to understand how firms may effectively manage the challenges of customer involvement in innovation and to examine its implications for a firm’s long-term innovation strategy and overall performance.

The challenges of assessing the relative impact of major sources of innovation on the brand equity of a firm are well recognized. Kumar, Anand, and Nim introduce a taxonomy of various costs and benefits related to innovations and apply that to understand the relative strengths of various sources of innovation affecting a firm’s brand equity. Their conceptual framework identifies six distinct sources of innovations – firm, customers, external network, competition, macro-environment, and technology – and explains how they create value and affect brand equity. They find that the customers and the technology as a source of innovation have the maximum impact on the firm’s brand equity, followed by the marginal impact of macro-environment and external network of a firm. The firm itself has a moderate impact on its brand equity, while competition has the minimal impact. Such thinking can help firms focus on the most pertinent sources of innovation for enhancing brand equity.

Varadarajan provides an overview of the conceptual domains of innovation, innovation strategy, and strategic innovation. He does so by defining innovation, product innovation, business model innovation, marketing innovation, innovation strategy, and strategic innovation, and elaborating on their literature and conceptual underpinnings. Such a perspective can be useful in synthesizing the number of definitions of innovation and specific types of innovation that exist in the literature.

A number of empirical papers in this volume shed light on important issues in strategy and innovation. Market foresight is the knowledge of market changes ahead of competitors and the conversion of that knowledge into creative and timely new product offerings. Based on a discovery-oriented process, working closely with managers throughout the research process, we foresight. McCardle, White, and Calantone develop and test a framework delineating market information determinants and new product outcomes of market foresight. Their results indicate that external (active scanning, lead user collaboration, and market experiments) and internal sources (boundary spanner input and interdepartmental connectedness) of market information positively affect market foresight. Furthermore, the organization’s open-mindedness positively moderates the effects of active scanning, market experiments, and interdepartmental connectedness on market foresight. They provide evidence that firms with superior market foresight develop more creative products, introduce them to the market faster, and introduce them at a more opportune time.

Chitturi explores the differences in consumers’ willingness to pay for different types of design attributes due to different levels of specific anticipatory emotions evoked by them. He conducts three experiments to test the hypothesized relationships between design attributes (functionality, aesthetics, and environmental sustainability), specific emotions, and willingness to pay. The findings reveal that different attributes of design, namely, functionality, aesthetics, and sustainability, evoke different types of emotions and different levels of willingness to pay. Firms can leverage these findings by positioning and pricing products according to emotional requirements of the target customer segment and their willingness to pay.

Srinivasan and Lilien propose the construct of design orientation denoting a firm’s ability to integrate functionality, aesthetics, and meaning in its new products. Using data from surveys of 252 US firms, they validate the construct of design orientation and establish its distinctiveness from related constructs of creativity, technological orientation, and customer orientation using structural equation modeling. They found that, individually, design orientation, technological orientation, and customer orientation improve new product performance. Also, customer orientation decreases the positive effect of design orientation while willingness to cannibalize increases the positive effect of design orientation on new product performance.

Morgan and Vorhies draw upon the behavioral theory of the firm and the competing values theory perspective on organizational culture to develop a theoretical framework to examine the business performance outcomes of market orientation (MO) culture and behaviors. Using confirmatory factor analysis and seemingly unrelated regression, they find that MO culture has an important direct effect on firms’ financial performance as well as an indirect effect via MO behaviors and innovations. Organizational culture domain of MO appears to be at least as important in explaining firm performance and implies that researchers need to revisit the conceptualization and the operationalization of MO as an important construct in strategic marketing thought.

Cunningham synthesizes the literature on rapid-growth SMEs (gazelles) through a unifying theoretical lens. She offers interesting insights as to why some privately held small- and medium-sized firms (SMEs) have been able to outperform their peers in terms of revenue growth, profit growth, growth in number of employees and markets. Based on elite interviews with 47 informants drawn from 21 rapid-growth, private companies, several findings emerged using qualitative methodology. Early strategic choices made by the owners of private firms along with their attitudes and capabilities positioned the private firms for rapid growth. She proposes a modified, two-stage model. The first stage focuses on respect for the value employees bring and building their trust and commitment that subsequently drives the second stage of the model – building customer trust and commitment.

Together these chapters lead to new insights, approaches, and directions for research on strategy and innovation. It is hoped that collectively the chapters in this volume will substantially aid our efforts to understand more about both strategy and innovation and to provide a broader arsenal of research methods as well as fertile areas for future research. The Review of Marketing Research continues its mission of systematically analyzing and presenting accumulated knowledge in the field of marketing as well as influencing future research by identifying areas that merit the attention of researchers.

Naresh K. Malhotra

Editor-in-Chief