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Article
Publication date: 25 February 2020

Erik Mooi, John Rudd and Ad de Jong

Process innovation is a key determinant of performance. While extant literature paints a clear picture of the drivers of process innovation, the effect of process…

Abstract

Purpose

Process innovation is a key determinant of performance. While extant literature paints a clear picture of the drivers of process innovation, the effect of process innovation on performance has received little attention. This paper aims to examine how the divergence of process innovation impacts performance. Divergence concerns the extent to which the observed level of process innovation diverges from the expected level of process innovation. Positive divergence occurs when the observed level of process innovation is higher than expected while for negative divergence the opposite occurs. In turn, the authors consider how divergence acts as a driver of performance.

Design/methodology/approach

The authors use survey and archival data from 5,594 firms across 15 countries. The authors analyze the data using an advanced two-step random-effects estimator that accounts for the multi-level data used.

Findings

The authors find negative divergence to reduce performance under high competitive intensity, whereas positive divergence is detrimental under high environmental uncertainty.

Research limitations/implications

The authors present new and unique insights into the relationship between divergence and performance. The authors argue that each firm has an “ideal” level of process innovation, based on their resources and business environment, relative to which performance diminishes. Specifically, the authors argue that divergence from the firm’s expected level of process innovation is associated with the reduced performance during high environmental uncertainty or high competitive intensity. Furthermore, the authors argue that there can be “too much” process innovation. This nuance of the majority of prior empirical studies in this area suggests that more innovation is always better for firms. The more nuanced approach reveals that the process innovation-performance debate should not focus on more or less innovation per se, but on how innovation is constructed and supported.

Practical implications

Some argue the existence of an academia-practitioner gap, with both living in different worlds (Reibstein et al., 2009). The findings suggest that theory is not only useful to practitioners but also has a crucial and central role regarding decisions relating to efficiency and effectiveness of scarce resources, in the field of process innovation. More specifically, the authors demonstrate that the prior study on process innovation seems to be useful in that relative to a theory-predicted level, divergence diminishes performance in the global sample of companies across a wide range of industries. In addition, the authors suggest that firms should not strive for more innovation per se. The findings suggest that positive divergence or too much innovation is detrimental for performance under environmental uncertainty, while negative divergence or too little innovation is harmful to performance under competitive uncertainty. Moreover, the divergence approach is also useful for comparing performance to that of other firms, typically referred to as benchmarking.

Originality/value

This paper is useful and important for managers and theory development as it provides insight into situations where a firm may have “too little” or “too much” process innovation. Thus, divergence advances understanding as, in contrast with the previous study, the authors do not suggest that more innovation is always better.

Details

European Journal of Marketing, vol. 54 no. 4
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 20 June 2008

Ad de Jong, Martin Wetzels and Ko de Ruyter

The purpose of this paper is to investigate the linkage between self‐managing team (SMT) member perceptions of collective efficacy and customer‐perceived service quality…

Abstract

Purpose

The purpose of this paper is to investigate the linkage between self‐managing team (SMT) member perceptions of collective efficacy and customer‐perceived service quality, and the most cost‐efficient way to reliably assess collective efficacy and customer‐perceived service quality, using generalizability theory (G‐theory).

Design/methodology/approach

Longitudinal design; employee and customer survey data from 52 teams of a major financial services institution were collected at two points in time.

Findings

First of all, results of OLS regression analysis show a positive effect of collective efficacy on customer‐perceived service quality. In addition, taking a G‐theory approach, the results indicate that collective efficacy possesses a higher psychometric quality than customer‐perceived service quality and that the costs of reliably comparing SMTs on collective efficacy are considerably lower compared to customer‐perceived service quality. Finally, for both constructs, the results reveal subtle but relevant differences in psychometric quality and costs of data collection across different types of service (routine versus non‐routine) settings.

Practical implications

To begin with, as a linkage construct, collective efficacy provides managers a mechanism for team intervention by means of task‐focused team building, role‐play exercises, and using feedback to increase service employee confidence. Secondly, when deciding to use survey data as one means to compare performance of organizational units, managers should first determine to what extent the distinct measurement design facets (e.g. items, persons, and occasions) account for variance in measures and sample correspondingly to save money on data collection. In doing so, they should explicitly take into account the type of service context and type of respondent.

Originality/value

This study identifies collective efficacy and customer‐perceived service quality as a set of service SMT performance measures that meaningfully connects employee and customer perceptions at the group level. Secondly, a G‐theory approach was used to assess the psychometric quality of these two measures and how data collection costs can be minimized to achieve a desired level of generalizability.

Details

International Journal of Service Industry Management, vol. 19 no. 3
Type: Research Article
ISSN: 0956-4233

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Article
Publication date: 1 May 2001

Ad de Jong, Ko de Ruyter, Sandra Streukens and Hans Ouwersloot

This empirical study examines the impact of context‐team factors and team‐employee factors on perceived uncertainty in self‐managed service teams. The results of our study…

Abstract

This empirical study examines the impact of context‐team factors and team‐employee factors on perceived uncertainty in self‐managed service teams. The results of our study show that context‐team factors rather than team‐employee factors are critical to the extent of uncertainty employees perceive when providing customer service. Furthermore, perceived uncertainty has negative impact on self‐managed team outcomes in terms of job satisfaction and intention to leave the team. Besides this, our findings indicate that team commitment to customer service quality can serve as an effective tool to handle the negative consequences of perceived uncertainty in self‐managed service teams. Finally, in addition to the cross‐sectional analysis, a longitudinal exploration has been carried out, the outcomes of which suggest that the structural relationships are changing over time, underlining the need to take dynamic considerations into account in analyzing the effectiveness of self‐managed work teams.

Details

International Journal of Service Industry Management, vol. 12 no. 2
Type: Research Article
ISSN: 0956-4233

Keywords

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Book part
Publication date: 1 February 2007

Ruth N. Bolton and Crina O. Tarasi

Abstract

Details

Review of Marketing Research
Type: Book
ISBN: 978-0-7656-1306-6

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Article
Publication date: 3 February 2012

Abstract

Details

Personnel Review, vol. 41 no. 2
Type: Research Article
ISSN: 0048-3486

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Article
Publication date: 9 November 2015

Hongwei He, Weiyue Wang, Weichun Zhu and Lloyd Harris

This paper aims to advance the literature by testing the boundary of this relationship with reference to a key construct in employee performance in the service domain…

Abstract

Purpose

This paper aims to advance the literature by testing the boundary of this relationship with reference to a key construct in employee performance in the service domain: employee customer orientation. Organizational identification refers to employees’ perceived oneness and belongingness to their work organization, and has been argued to be associated with higher employee performance.

Design/methodology/approach

Data were collected based on a sample of call center service workers. Employees rated their organizational identification, customer orientation and personality traits. Supervisors independently rated their subordinates’ performance. Variables statistic tools were used to analyze the data and test a series of hypotheses.

Findings

It was found that customer orientation strengthens the relationship between organizational identification and service workers’ job performance, and it enhances the mediating effect of organizational identification on the relationship between service workers’ personality trait (i.e. agreeableness) and their performance.

Originality/value

This research advances an argument that employee customer orientation moderates the relationship between employee organizational identification and employee job performance in the call center service provision domain. In addition, this is a pioneering study examining the roles of personality traits on employee organizational identification.

Details

European Journal of Marketing, vol. 49 no. 11/12
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 9 November 2015

Sarah De Meulenaer, Nathalie Dens and Patrick De Pelsmacker

The purpose of this paper is to investigate how the globalization (vs localization) of different cues (advertising copy, brand name, spokesperson, brand logo) influences…

Abstract

Purpose

The purpose of this paper is to investigate how the globalization (vs localization) of different cues (advertising copy, brand name, spokesperson, brand logo) influences consumers’ perceived brand globalness.

Design/methodology/approach

The authors conducted conjoint analyses for two products differing in product category involvement (chocolates vs computer) with 200 consumers from the Netherlands. Additionally, based on cluster analysis, the authors divide respondents into two groups: local vs global consumer culture individuals, and the authors compare the results of the conjoint analysis for these two clusters.

Findings

Advertising copy is most important in determining perceived brand globalness. The spokesperson and the brand logo determine perceived brand globalness more strongly for a low-involvement product, whereas the brand name is more important for a high-involvement product. Further, the spokesperson and the brand logo are relatively more important for global consumer culture individuals, while local consumer culture individuals find the brand name and advertising copy relatively more important.

Practical implications

The most important cue to position a brand as global is the advertising copy. Brand managers of a low-involvement product and/or targeting global-minded consumers should concentrate on the spokesperson and the brand logo to position their brand. Managers of a high-involvement product and/or targeting local-minded people should focus on the brand name.

Originality/value

While a number of researchers have emphasized the importance of perceived brand globalness for international consumer behavior, the present study is the first to the authors’ knowledge to investigate the relative importance of different cues in creating perceptions of brand globalness.

Details

International Marketing Review, vol. 32 no. 6
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 11 June 2018

Peter Guenther and Miriam Guenther

This paper aims to examine how much importance the financial market attaches to advertising spending’s short-term productivity vis-à-vis its investment component and the…

Abstract

Purpose

This paper aims to examine how much importance the financial market attaches to advertising spending’s short-term productivity vis-à-vis its investment component and the impact of important contextual factors (investor mix and analyst coverage) on this trade-off.

Design/methodology/approach

A stochastic frontier estimation (SFE) approach is used to help disentangle advertising spending. Using a panel internal instruments model and 10,017 firm-year observations from publicly listed US companies over a 13-year period, this study relates aggregated advertising spending and disentangled advertising spending, together with important contextual factors, to Tobin’s q.

Findings

The results do not indicate an effect of aggregated advertising spending on Tobin’s q. However, after advertising spending is disentangled, results show the component with an efficient immediate revenue response to have a positive effect on Tobin’s q, whereas the effect of the remaining investment component is negative. Contextual factors moderate investors’ valuation of the components.

Research limitations/implications

Findings are limited to US publicly listed firms, and are based on secondary, non-experimental data. The results imply that investors reward firms only for short-term advertising productivity, casting doubt on investors’ understanding of the long-term value of marketing.

Practical implications

The results confirm managers’ belief that not all money spent on advertising creates shareholder value. Managers should use the outlined SFE to benchmark their firms’ short-term advertising productivity against that of industry peer firms.

Originality/value

This study advances a new perspective, suggesting that advertising spending can be decomposed into two distinct parts by considering how financial market investors evaluate advertising spending. Important contextual effects on this evaluation from firms’ investor mix and analyst coverage are also shown for the first time. The findings help in reconciling conflicting prior results, and shed new light on how the financial market evaluates marketing expenditures.

Details

European Journal of Marketing, vol. 52 no. 7/8
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 18 April 2016

Jun Wu, Anshu Saxena Arora and Amit Arora

Ambient advertising is a unique, intimate and non-traditional form of communication between the product and the consumer; and uses all physical and environmental elements…

Abstract

Purpose

Ambient advertising is a unique, intimate and non-traditional form of communication between the product and the consumer; and uses all physical and environmental elements leading to stronger customer engagement. The purpose of this paper is to explore the innovations in ambient advertising including flash mob dancing, use of structures, posters, props, bus tickets, supermarket floors, shopping carts, bank receipts, animals, and other strange and unusual venues in developed economies (e.g. the USA) vs emerging economies (e.g. India).

Design/methodology/approach

The research proposes relationship strength (R)-inherent drama (I)-prodigious execution (P) or R-I-P conceptual framework to measure ambient advertising and delves into the R-I-P constructs of ambient advertising.

Findings

The results of Study 1 demonstrate that consumers’ global consumption orientation positively influences their attitudes toward ambient advertising. Results from Studies 2 and 3 exhibit interesting comparisons of innovations in ambient advertising between the USA and India; which improves understanding of globalization of ambient advertising in both developed and emerging economies. Relationship strength (R) between the product and the customer strengthens ad believability in both developed and emerging economies; while inherent dramatic surprise (I) displays contrasting results for developed and emerging economies. Prodigious execution (P) results in ad irritation for developed economies while it has no impact for emerging economies.

Research limitations/implications

Overall R-I-P constructs of ambient advertising strengthen brand and ad attitudes and purchase intentions. The research has strong implications for advertising innovations in the USA vis-à-vis India, and demonstrates stronger implications of advertising internationalization across developed and emerging economies.

Originality/value

The research is valuable in the context of emerging and developed economies of the world with respect to ambient advertising. The research explores the trends in ambient advertising and develops measures for testing perceptions of consumers in various world markets toward ambient advertising. The world economies exhibit varying levels of acceptance and appreciation to the global emerging advertising trends, and this presents a huge challenge to the companies worldwide.

Details

International Journal of Emerging Markets, vol. 11 no. 2
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 5 May 2020

Omar Farooq and Zakir Pashayev

This paper documents the impact of product market competition on the value of advertising expenditures.

Abstract

Purpose

This paper documents the impact of product market competition on the value of advertising expenditures.

Design/methodology/approach

The authors use the data for non-financial firms from India and the pooled regression procedure to test their arguments during the period between 2009 and 2018.

Findings

The results show that advertising expenditures of firms operating in sectors with relatively high competition are more valuable than advertising expenditures of firms operating in sectors with relatively low competition. The results of the study are robust across various proxies of advertising expenditures and firm performance. Furthermore, the results also show that the positive impact of product market competition on the value of advertising expenditures is confined only to firms that already have lower agency problems.

Originality/value

The results of the study highlight the importance of product market competition on the value of advertising expenditure in the emerging market setting, where agency problems are supposed to be high.

1 – 10 of 561