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The purpose of this paper is to investigate the impact of customer-focus on small medium enterprise (SME) performance from the perspective of a resource-based view (RBV).
Abstract
Purpose
The purpose of this paper is to investigate the impact of customer-focus on small medium enterprise (SME) performance from the perspective of a resource-based view (RBV).
Design/methodology/approach
This research study implemented a survey strategy to gather data from 255 respondents on the registered list of Ghana Enterprise Agency (GEA) in the eastern region of Ghana. Scales used to gather data were operationalized from previous research studies. A structural equation modeling (SEM) path analysis was used to estimate the impact of customer-focus on the performance of SMEs.
Findings
The outcomes of this study indicate that customer-focus has a significant positive impact on SME performance, hence backing the current demand for investigating the distinct influence of customer-focus on SME performance. The results show that customer-focus has a positive and significant relationship with financial performance, customer performance, internal business process performance and learning and growth performance, thus supporting the literature on the positive impact of customer-focus on SME performance. Therefore, customer-focus determinants used in this study, including co-creation, networking ties, customer insight and artificial intelligence marketing (AIM), are critical to the optimization of SME performance.
Research limitations/implications
Notwithstanding the importance of this research study mentioned earlier, the study has limitations. Notably, the sample size of this study can be increased to capture SME respondents in other geographical zones that were not included in this study. Future research studies may address how business environment conditions moderate the relationship between customer focus and performance, and also the cause-effect of the relationship between customer focus and business environment conditions on SME performance.
Practical implications
The practical implications consist of two main items. First, this study empowers SME owners and managers to develop a customer focus technique as a central strategic goal in their quest for SME performance optimization. Second, SME owners and managers should progressively exploit the four determinants of customer focus which include co-creation, networking ties, customer insight and (AIM in order to accrue important resources for effective utilization of their customer focus competences as a way to enhance their performance.
Social implications
This study is targeted at the sound development of SMEs to bring about poverty alleviation and employment. Poverty, unemployment and poor living standards are recognized as vital social challenges in most emerging economies. The establishment of customer focus as an important strategic capability provides opportunities for SME survival, profitability and growth.
Originality/value
Generally, the findings of this research study provide a strong backing to RBV perspective and the proposition that customer-focus and its determinants (i.e. co-creation, networking ties, customer insight and AIM) should be acknowledged as a vital strategic resource for optimizing the performance of SMEs. This research study also provides new knowledge contribution to the present body of knowledge on customer-focus orientation and management literature, particularly in the context of an emerging economy.
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Kari Lepistö, Minna Saunila and Juhani Ukko
This study investigates the effect of total quality management (TQM) on customer satisfaction, personnel satisfaction and company reputation.
Abstract
Purpose
This study investigates the effect of total quality management (TQM) on customer satisfaction, personnel satisfaction and company reputation.
Design/methodology/approach
The study results rely on a structured survey conducted among an extensive sample of Finnish SMEs. In addition to the examination of the relationship between TQM and company performance in terms of customer satisfaction, personnel satisfaction and company reputation, the study takes a view on the possible effects of the industry, the company size and the certified quality system.
Findings
The results reveal that two TQM dimensions, namely Customer Focus and Product Management, were related to companies' customer satisfaction, whereas four TQM dimensions, namely Management/leadership, Customer Focus, Personnel Management and Risk Management, were related to personnel satisfaction. None of the TQM dimensions were related to company reputation. The control variables – the industry, the company size and the certified quality system – were not found to affect customer satisfaction, personnel satisfaction or company reputation.
Originality/value
Most previous studies have been based on traditional TQM classification and have not shown the effects of the latest TQM-related dimensions. Compared to previous studies, this work integrates risk management, digitization, system deployment efficiency and stakeholder management into TQM, which has not been implemented in any previous study. The roles of hard and soft TQM factors have been carefully considered in this study; thus, the study does not place too much emphasis on either direction but provides a balanced picture of the performance of the management systems studied. Although there are studies on the effects of TQM on personnel satisfaction, customer satisfaction and reputation, they are based on a much narrower definition of TQM than that in this study. The business environment is constantly changing, but only a few studies have been conducted to extend the TQM approach. This has led to duplication of studies, and the effects of performance-relevant procedures have not been extensively studied in the past as part of TQM. Therefore, the concept of this study brings significant added value to TQM research and returns the TQM concept to the overall level while considering the requirements of the ISO 9001: 2015 and EFQM 2019 quality standards. The study also considers the effects of ISO 9001 certification and EFQM requirements.
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The purpose of this study is to review and analyze the status of word-of-mouth (WOM) research in the business-to-business (B2B) context and discuss and identify new possible…
Abstract
Purpose
The purpose of this study is to review and analyze the status of word-of-mouth (WOM) research in the business-to-business (B2B) context and discuss and identify new possible future directions.
Design/methodology/approach
A systematic review was conducted and 36 articles on B2B WOM were collected to evaluate the current state of the literature and clarify possible future research directions.
Findings
This thematic analysis categorize these articles into three themes: WOM generation, WOM usage and reference marketing. Under each theme, the authors reveal research findings unique to B2B research and different from business-to-consumer (B2C) WOM research. This study identifies several research questions that should be addressed by future research.
Originality/value
Both academic researchers and business practitioners recognize that WOM plays an essential role in B2B marketing. However, no review paper focuses on WOM in the B2B context. Findings in the B2C WOM literature suggest that WOM substantially influences firms’ performance, but that managers cannot simply attempt to extrapolate B2C findings to the B2B arena. By synthesizing and assessing prior research on WOM in the B2B context, this study contributes to a better understanding of the B2B WOM phenomenon and facilitates future research on this topic.
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While existing literature extensively explores manufacturing firms expanding into services, little is known about the modes of servitisation, the means by which they carry it out…
Abstract
Purpose
While existing literature extensively explores manufacturing firms expanding into services, little is known about the modes of servitisation, the means by which they carry it out. This paper concentrates on acquisitions as a mode of servitisation. Post-acquisition integration is when the potential of an acquisition is realised. The paper therefore aims to categorise types of integrations following the acquisition of servitised firms and discusses their consequences for servitisation.
Design/methodology/approach
The empirical part of the paper is based on two case studies, each involving the acquisition of servitised firms. Both acquirers changed their integration approach over time.
Findings
The paper conceptualises three types of integrations: rhetorical, insulated and transformative integrations, indicating whether and how the acquirer becomes servitised following the integration. These highlight the analysis of integration based on business models and customer orientation in relation to servitisation.
Originality/value
This paper contributes to research on servitisation by emphasising acquisitions as a mode of servitisation and conceptualising three integration types related to business models and customer orientations. Furthermore, the paper highlights how an acquirer's servitisation leads to new offerings targeting new customers, as opposed to strengthening existing relationships.
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Sasu Tuominen, Helen Reijonen, Gábor Nagy, Andrea Buratti and Tommi Laukkanen
The motivation for this study comes from decision making related to strategic marketing orientations in international markets. The authors examine if customer orientation and…
Abstract
Purpose
The motivation for this study comes from decision making related to strategic marketing orientations in international markets. The authors examine if customer orientation and customer relationship orientation perform as two distinct constructs in driving firm innovativeness, and how together they support business growth among export firms. This study aims to suggest a customer-centric strategy for export firms that drive innovativeness and growth.
Design/methodology/approach
An international corporation specialized in company information services provided a list of the contact information of Italian companies. The authors sent an email request to respond to an online survey and received 416 effective responses from firms operating in export markets. The authors propose and empirically test a model in which customer orientation, customer relationship orientation and innovativeness predict business growth. This model controls for the effects of firm size, industry and customer type (B2B vs. B2C).
Findings
The study findings suggest that customer orientation and customer relationship orientation are two distinct strategic orientations driving innovativeness. However, they do not directly affect business growth. Instead, they require the innovativeness of an exporter to materialize as business growth.
Practical implications
The results of the study recommend business strategies focusing not only on customer needs and satisfaction but also on retaining current customers and building customer relationships in international markets. Firms can learn from international customers and develop effective customer-centric strategies to spread the acquired information into the internal decision-making as it contributes to firm innovativeness and business growth in international markets.
Originality/value
This study is one of the pioneering studies combining customer orientation and customer relationship orientation, showing their theoretical and empirical divergence. This study is also among the first which tests how the two strategic orientations together with innovativeness promote business growth among export firms. The authors add understanding of the synergistic effects both of using customer information and developing deeper relationships on firm innovativeness and performance among exporters.
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Ignacio Cepeda-Carrión, David Alarcon-Rubio, Carlos Correa-Rodriguez and Gabriel Cepeda-Carrion
This article aims to open the black box of the relationship between customer experience and customer satisfaction. The authors also take a fine-grained approach to the concept of…
Abstract
Purpose
This article aims to open the black box of the relationship between customer experience and customer satisfaction. The authors also take a fine-grained approach to the concept of customer experience analysis in terms of four dimensions: basic service experience (BSE), moments of truth (MT), focus on results (FR) and peace of mind (PM).
Design/methodology/approach
A total sample of 185 industrial customers in Spain was collected via an online platform from March to April 2020. The data were analysed using partial least squares-structural equation modelling (PLS-SEM).
Findings
The results indicated that the four dimensions of customer experience are the foundation of commercial success (i.e. customer satisfaction) for express parcel companies in the business-to-business (B2B) environment. Therefore, the most innovative express parcel companies should not only pay attention to providing services in accordance with the customer agreement but also go beyond that; hence, these companies must understand customer needs to be able to offer a unique experience. Therefore, these companies must design experiences that go beyond pure technical delivery services.
Originality/value
Although previous work has linked customer experience to customer satisfaction, there is little work that does so specifically in an industry as in vogue as express parcels and less so in the B2B environment. In addition, this work analyses fine-grained customer experience in terms of grain's four dimensions, and therefore, the authors analyse how each dimension (e.g. more rational or more subjective dimensions) impacts customer satisfaction. Few studies have focussed on this type of analysis for express parcel companies in the B2B environment.
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The purpose is to describe new business opportunities within the Swedish railway industry and to support the development of business models that corresponds with the needs and…
Abstract
Purpose
The purpose is to describe new business opportunities within the Swedish railway industry and to support the development of business models that corresponds with the needs and requirements of Industry 4.0, here denoted as Service Management 4.0.
Design/methodology/approach
The study is an in-depth and descriptive case study of the Swedish railway system with specific focus on a railway vehicle maintainer. Public reports, statistics, internal documents, interviews and dialogues forms the basis for the empirical findings.
Findings
The article describes the complex business environment of the deregulated Swedish railway industry. Main findings are in the form of identified business opportunities and new business model propositions for one of the key actors, a vehicle maintainer.
Originality/value
The article provides valuable understanding of business strategy development within complex business environments and how maintenance related business models could be developed for reaching Service Management 4.0.
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Helén Anderson, Tomas Müllern and Mike Danilovic
The purpose is to identify and explore barriers to overcome for developing collaborative innovation between a global service supplier and two of its industrial customers in Sweden.
Abstract
Purpose
The purpose is to identify and explore barriers to overcome for developing collaborative innovation between a global service supplier and two of its industrial customers in Sweden.
Design/methodology/approach
The research had an action-based research approach in which the researchers were interacting and collaborating with the practitioners in the companies. The empirical part includes primary data from multiple interviews, and two workshops with dialogues with participants from the involved companies. The use of complementary data collection methods gave rich input to understanding the context for collaborative innovation, and to uncovering barriers, to develop solutions for collaborative innovation. The empirical barriers were analysed using theoretically derived barriers from a literature review. The analysis generated four broad themes of barriers which were discussed and led to conclusions and theoretical and practical implications on: the customer's safety culture, the business model, the parties' understanding of innovation and the management of collaborative innovation in supply chains.
Findings
The thematic analysis generated four broad themes: the customer's safety culture, the business model, the parties' understanding of innovation and the management of collaborative innovation. These themes where analysed using theoretically derived barriers from a literature review. The industrial context, the understanding of innovation and its management created barriers.
Originality/value
The unique access to the service supplier and its two independent industrial customers adds a rich contextual framing to the process of identifying and exploring the barriers to collaborative innovation. The conclusion emphasizes the importance of an industrial business context, the business logic in terms of business models and for the understanding and management of collaborative innovation.
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Juan David Cortes, Jonathan E. Jackson and Andres Felipe Cortes
Despite the abundance of small-scale farms in the USA and their importance for both rural economic development and food availability, the extensive research on small business…
Abstract
Purpose
Despite the abundance of small-scale farms in the USA and their importance for both rural economic development and food availability, the extensive research on small business management and entrepreneurship has mostly neglected the agricultural context, leaving many of these farms' business challenges unexplored. The authors focus on informing a specific decision faced by small farm managers: selling directly to consumers (i.e. farmer's markets) versus selling through aggregators. By collecting historical data and a series of interviews with industry experts, the authors employ simulation methodology to offer a framework that advises how small-scale farmers can allocate their product across these two channels to increase revenue in a given season. The results, which are relevant for operations management, small business management and entrepreneurship literature, can help small-scale farmers improve their performance and compete against their larger counterparts.
Design/methodology/approach
The authors rely on historical and interview data from key industry players (an aggregator and a small farm manager) to design a simulation analysis that determines which factors influence season-long farm revenue performance under varying strategies of channel allocation and commodity production.
Findings
The model suggests that farm managers should plan to evenly split their production between the two distribution channels, but if an even split is not possible, they should plan to keep a larger percentage in the nonaggregator (farmers' market/direct) channel. Further, the authors find that farmers can benefit significantly from a strong aggregator channel customer base, which suggests that farmers should promote and advertise the aggregator channel even if they only use it for a limited amount of their product.
Originality/value
The authors integrate small business management and operations management literature to study a widely understudied context and present practical implications for the performance of small-scale farms.
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Yasin Sahhar, Raymond Loohuis and Jörg Henseler
Customer experience has become a vital premise in service theory and practice. Despite researchers' and managers' growing interest, the customer experience remains a complex and…
Abstract
Purpose
Customer experience has become a vital premise in service theory and practice. Despite researchers' and managers' growing interest, the customer experience remains a complex and multidimensional concept that is challenging for service providers to understand. This study aims to graph the experience in its multidimensionality by categorizing and proposing matching practices for service marketing managers to channel and foster customer experiences in customer journeys.
Design/methodology/approach
To support the predominantly conceptual nature of the study, an abductive approach underpinned by the authors' vast experience in academia and practice, real-life autohermeneutic phenomenological experience tales and theory on customer experience and its management by providers is deployed to craft a model that addresses and highlights the multidimensionality of experience.
Findings
This study introduces the “GraphEx” (Graph Experience) hip-pocket model, which expresses customer experience in a simple yet multidimensional fashion and offers managerial practices to foster the customer's experience. The model contains three dimensions (valence, type of experience and visceral intensity) and five managerial practices (urgent patchwork, restoring, activating and stimulating desire, bolstering and safeguarding appreciation).
Originality/value
This study contributes to the service literature by creating granularity in the multidimensionality of customer experience. This study advances customer experience management in practice by providing service managers with novel possibilities for understanding and managing customer experiences intelligently. This can help service providers streamline and innovate customer experience strategies during customer journeys and foster customer loyalty.
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