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Offer a new model for identifying effective approaches to gathering, understanding and synthesizing information related to new product needs of B2B customers.

Arthur D. Little, together with the Eindhoven University of Technology, conducted in-depth interviews with over 30 product development leaders in 15 companies across multiple sectors.

When the team interacting with customers is structured appropriately the research showed that “getting it right” can lead to doubling of innovation success rates and have significant impact on R&D effectiveness.

By identifying the degree to which B2B customer needs are clear (expressed) or unclear (latent) and the degree to which technology needs are known (expressed) or unclear (latent), we can start to characterize the most appropriate skill set that a multifunctional product development team will need in order to develop a winning product.

Companies can use an innovative analysis framework to help make informed decisions about how best to organize their teams. The four approaches can be mapped to the four quadrants of a “Customer Needs/Technology Needs” matrix. The study concludes that the benefits are both strategically and financially significant.

Business managers are constantly faced with the decision to continue or abandon new product development projects. However, this type of decision may not be easy. These decisions are usually prone to bias of managers. Managers are known to escalate their commitment toward failed projects. It is also not easy to identify projects that are suffering from escalation of commitment. The purpose of this paper is to propose an objective escalation identification method.

This paper proposes an objective escalation identification method using data envelopment analysis (DEA). The results from DEA are compared with those of subjective methods of identifying escalation.

The objective estimate of escalation given by DEA was comparable to the subjective estimate of escalation given by the managers in the survey.

DEA is sensitive to outliers and managers should be careful in selecting projects that are to be included for comparison. DEA does not give statistical fit indices as it is an operational research based technique.

DEA is an objective and automatic tool that makes the decision of managers easier. Managers can use this tool by inputting the output and input variables of their projects and then see which ones are escalated, therefore need to be abandoned. As a consequence, escalation of commitment and big losses can be prevented especially in new product development area.

By using the proposed objective approach, escalation of commitment and associated big losses can be prevented especially in new product development area.

In revisiting Festinger's theory of cognitive dissonance, this paper seeks to go beyond traditional business-to-consumer (B2C) research parameters and explore the full extent of its potential application within a New Zealand business-to-business (B2B) purchasing context.

The study's core findings are based on four separate focus group discussions with B2B salespeople. Responses were recorded and analysed according to the manifest content of the discussions. These focus groups were preceded by, and followed up with, two other enquiries that sought the perspectives of B2B buyers.

Intended for use as a learning tool for aspiring B2B salespeople and their instructors, a new typology of four generic potential post-decision ‘cognitive states’ is proposed, which, depending on the scenario at hand, will likely reflect the buyer's mindset.

The generalisation of findings may be somewhat limited because the focus groups were drawn from a convenience sample totalling just 20 practitioners. Some participants might also have felt slightly constrained, leading to opinions that are subject to bias.

Examples of differing buying scenarios are profiled and explained from the perspective of their implications for salespeople. Suggestions as to how sellers can best accommodate the post-decision cognitive states experienced by their buyers are delineated.

Conventional wisdom suggests that post-purchase cognitive dissonance is the sole ‘cognitive state’ towards which a B2B salesperson needs to be attuned to for the purpose of taking some form of accommodating action. However, this study indicates that three other states relating to the aftermath of a buyer's decision, whether a purchase is made or not, also merit attention.

This paper aims to introduce dynamic marketing capability (DMC) as a construct relevant for business research and business practice, and to test its validity in relation to company product innovations and company agility.

This study tests a hypothesized model using partial least squares structural equation modeling on data from a survey conducted with 155 companies based in Poland.

This study provides evidence that DMC facilitates company innovations in terms of their speed and market success. Thus, DMC complements other organizational capabilities that were previously found effective for new product development (NPD) with regard to intra- and inter-organizational processes. However, the influence of DMC on company innovation success is stronger in the case of companies that operate without the pressure to customize. Thus, this approach is more relevant for companies that provide standardized offerings and which target various customer segments, rather than companies that operate in customer niches or when their NPD processes are strongly orchestrated by their customers, e.g. in B2B sales within hierarchical supply chains.

This study is limited by the cross-sectional empirical setting in that one country is used to test the research hypotheses. Further studies may focus on the combined effects of DMC and other important organizational capabilities, for example, flexible manufacturing, and may provide a detailed picture of DMC development by applying a longitudinal approach and case studies.

Generally, managers can use this research to rethink their corporate strategies. The study proposes a specific strategic approach to corporate innovativeness: companies may acquire meaningful market benefits through systematic reconfiguration of their marketing assets, combined with the introduction of new products. However, managers should analyze their business model and industrial setting to verify to what extent their companies operate in a context relevant for reconfiguring marketing resources. If the pressure for strong customization is high in the existing customer base, investing in DMC may not be relevant, as new offerings are rather customer tailored, i.e. designed by “big fish” buyers. On the other hand, many companies may leverage their innovations with DMC in both B2B and B2C settings, as long as they can provide standard solutions as their market offerings.

The study contributes to marketing theory in three ways. Firstly, the study conceptualizes DMC as a distinct dynamic capability aligned with dynamic capabilities view (from which DMC logically originates), and proposes how DMC is linked nomologically with company innovativeness and agility. Secondly, a measurement instrument for DMC and an empirical test for the model are both provided. Thirdly, the paper presents evidence that the link between DMC and product innovations becomes restricted in the presence of certain contingencies, specifically with regard to the so-called customization norm.

Extant literature on business-to-business (B2B) has largely ignored studying multi-homing through a psychological lens. This paper aims to outline the results of three constituent studies, which were designed to reveal potential differences in multi-homers’ versus single-homers’ loyalty behaviors in a B2B and supply chain management (SCM) setting; identify factors that differentiate single-homers and multi-homers in these settings; and examine the relevance and effect of perceived risk on multi-homing behaviors.

In Studies 1 and 2, the authors used a questionnaire-based survey to capture the perceptions of 503 and 458 SCM experts, respectively. They then deployed AMOS v.21 to perform structural equation modeling. In Study 3, the authors used a mixed-methods approach to interview 18 SCM experts and then applied these insights to a survey with 242 SCM experts.

Study 1 reveals that multi-homers’ loyalty toward their preferred SP has a weaker effect on willingness to pay premium prices and share-of-wallet than single-homers’ loyalty. Study 2 establishes that several attitudinal factors distinguish multi-homers from single-homers in a loyalty framework. Study 3 concludes that perceived risk dimensions promote multi-homing intention, which in turn promotes multi-homing behavior.

Through empirical investigation, the present research succeeds in establishing that multi-homing is a concern for SPs, deciphering the attitudinal factors that distinguish multi-homers and single-homers in a loyalty framework, and confirming the influence of perceived risk dimensions on multi-homing. Thus, the study has several theoretical and practical implications for B2B services in emerging economies.

The purpose of the study is applying and comparing models that predict optimal time for new product exit based on its demand pattern and survivability. This is to decide whether or not to continue investing in new product development (NPD).

The study investigates the optimal time for new product exit within the hi-tech sector by applying three models: the dynamic learning demand model (DLDM), the generalized Bass model (GBM) and the hazard model (HM). Further, for inter- and intra-model comparison, the authors conducted a simulation, considering Weiner and exponential price functions to enhance generalizability.

While higher price volatility signifies an unstable technology, greater investment into research and development (R&D) and marketing results in higher product adoption rates. Imitators have a more prominent role than innovators in determining the longevity of hi-tech products.

The study conducts a comparison of three different models considering time-varying parameters. There are four scenarios, considering variations in advertising intensity and content, word-of-mouth (WOM) effect, price volatility effect and sunk cost effect.

Entrepreneurship, Strategic management, Management information systems.

Undergraduate and graduate capstone course in entrepreneurship, strategic management or management information systems courses.

This case study of a young technology firm, Codezin Technology Solutions, helps to analyze the challenges faced by such firms in emerging markets. Such markets are characterized by rapid turbulence in the market characteristics. The authors seek to analyze the role of disruptive regulatory changes, resulting in the growth of new startups, in affecting the growth and expansion of such young firms. Codezin was established in 2009 as a bootstrap company, to provide low-cost IT services to Indian small and medium scale enterprises (SMEs). Despite some initial success, it began to run into losses due to poor coordination and improper planning. After a period of struggle, the company stabilized its revenue from services business and expanded to mobile solutions, digital marketing, etc. But then the government of India announced the Startup India initiative at the beginning of 2016 to boost new ventures. Codezin did not qualify as per the government rules and thus failed to use the various incentives offered. Hence, it needs to determine a new strategy to compete with the onslaught of freshly funded startups but with a relative lack of market experience.

With the case discussion, the students will gain rich insights on technology businesses aimed at SMEs and the impact of changes in the regulatory regime in emerging markets like India. Further, they get to step into the shoes of the co-founders and choose between diversification vs new market development strategies, spurred by market disturbances and thinning competitive advantage.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 3: Entrepreneurship.

The purpose of this study is to investigate the effect of brand community participation on new product adoption when the new product is the one which clearly under-performed compared to industry standards.

The data on participation behavior, membership duration and adoption behavior of 5,893 members of three different online communities (two brand forums, one general product forum) were gathered and assessed using a Cox PH model.

Results show that higher participation in a brand community leads to a greater likelihood of adopting objectively under-performing products, while also reducing the likelihood of purchasing rivals’ products. This occurs despite the higher levels of product knowledge possessed by these consumers. The findings also identify a key limiting condition for oppositional loyalty, that it is driven by membership duration, rather than by active participation in the brand community.

Prior research on the impact of brand community participation on product adoption has tended to focus on the adoption of products that are objectively superior to competing products. Unfortunately, only one product can be the performance leader in a given market at any time. Thus, managers do not know if brand communities are powerful enough to enhance the likelihood of adopting objectively under-performing products. This manuscript thus provides important insights for managers wishing to launch new products in categories where there are active brand communities.

The purpose of this paper is to investigate the effects of self-efficacy, process feedback and task complexity on decisions by managers to continue or discontinue a new product after receiving negative performance feedback.

This paper uses a classroom experiment design and uses logistic regression and a chi-square test to analyze the data.

The findings of this paper show that self-efficacy, process feedback and task complexity have not only main effects but also interactive effects on managers’ go or no-go decisions; further, the main effects are mediated by interactions. The effect of self-efficacy is moderated by process feedback and task complexity. Process feedback and task complexity also have an interactive effect on decisions about new products by decision-makers.

This paper extends the theory of escalation of commitment (EOC) by showing that self-efficacy, process feedback and task complexity can influence decision-makers’ go or no-go decisions after they have received negative performance feedback.

This paper provides useful guidelines for managers on how to reduce the likelihood of EOC.

The originality and value of this paper lie in its being the first to examine the effects of process feedback and task complexity on the EOC.