Emerald | Journal of Business & Industrial Marketing | Table of Contents

Editorial 28.6

literatinetwork@emeraldinsight.com (Wesley J. Johnston) — Fri, 26 Jul 2013 00:00:00 +0100

Abstract

Purpose - n/aDesign/methodology/approach - n/aFindings - n/aResearch limitations/implications - n/aPractical implications - n/aOriginality/value - n/a

Application of Customer Life Time Value Model in Make-to-Order Manufacturing

literatinetwork@emeraldinsight.com (Oya I Tukel, Ashutosh Dixit) — Fri, 26 Jul 2013 00:00:00 +0100

Abstract

Purpose - The applicability of the Customer Life Time Value (CLV) concept goes beyond consumer markets. Specifically, we show how a make-to-order manufacturing company in a supply chain can set customer-focus manufacturing strategies using CLV.Design/methodology/approach - Data from an integrated steel plant is used to calculate the life time value of customers based on the past value, the potential value, and their loyalty. The past value of a customer is based on the historical data and the future value of a customer is then forecasted. The loyalty index of a customer is determined by survey results. Findings - In general we find that the CLV for the most valuable customers increase exponentially and the top 28% of customers constitute 80% of the total value of all customers. Research limitations/implications - This study focuses on make-to-order manufacturing organizations and the three strategies suggested for business process improvement need to be re-evaluated for make to stock or mass production.Practical implications - Based on these results we suggest three strategies for business process improvement and revenue growth for the plant.Originality/value - This study constitutes an initial effort to develop a customer lifetime value model for make to order manufacturing organizations for improving plant performance. The model links customers with not only the front office functions but also with ERP systems. Organizations that are part of value chains can benefit significantly from CLV applications.

Strategies for Sustaining the Edge in Offshore Outsourcing of Services: The Case of India

Fri, 26 Jul 2013 00:00:00 +0100

Abstract

Purpose - Purpose – Offshore outsourcing offers competitive advantages when goods and services are produced economically and with acceptable or superior quality by suppliers located outside a firm?s home country. This paper focuses on India as a destination for offshore outsourcing of services and the challenges it faces in maintaining its leadership in this area. The paper discusses the growth of services outsourcing and the economic and environmental forces that have contributed to the outsourcing of high-end services, also known as knowledge process outsourcing (KPO).Design/methodology/approach - Design/Methodology/Approach – This article surveys the literature of offshore outsourcing and identifies strategic drivers and options that can help India to grow and consolidate its position as an exporter of services and build long-term competitive advantages in its relationships with global partners. To understand why nations gain competitive advantage in certain industries, Porter?s "Diamond" model is utilized as a broad framework for examining policies and national strategies that can sustain India?s competitive advantage in outsourcing of knowledge-based services. The paper discusses India?s current and prospective assets and liabilities that correspond to the model?s four components. Findings - Findings – The article discusses the India?s competitive edge as a leading supplier of knowledge-based services and proposes a model for sustaining this edge. The model proposes key policy steps to move from the current position (e.g., supplier of business process outsourcing services) to a role of knowledge leader by providing advanced value added services to global clients. This model suggests ways in which a supplier nation can gain leverage in the value chain. Research limitations/implications - Research Limitations/Implications – Article is conceptual, not empirical. Public and corporate policy implications are presented to strengthen India?s competitive advantages in outsourced services. Practical implications - Practical Implications – The article presents a strategic roadmap with policy implications that can help move India up the value chain from being primarily a destination for low-end business process outsourcing (BPO) to that of a co-equal, high value-adding partner or principal who offers knowledge leadership in the design and delivery of services for global marketsOriginality/value - Originality/Value – The article discusses a nation?s technical strengths as well as cultural and infrastructure weaknesses that can contribute to volatility as a global outsourcing leader. The article also presents strategies that can reduce a nation?s vulnerabilities to competitive actions.

Trust in the Knowledge Economy

literatinetwork@emeraldinsight.com (Marco Tulio Zanini, Michael Musante) — Fri, 26 Jul 2013 00:00:00 +0100

Abstract

Purpose - The article provides insights into the expanding role of trust in the knowledge economy. Specifically it focuses on the unique nature of the knowledge economy and the importance of informal and social control provided by the development of trust.Design/methodology/approach - Conceptual and literature review.Findings - The intra- and inter-organizational dynamics of the knowledge economy require a unique focus on the development and maintenance of trust. Marketing relationships within and across firms will change and require a renewed emphasis on trust to safeguard the key asset in the knowledge economy, knowledge, Originality/value - This article has the objective to add new insights on organizational trust, specifically under the paradigm of knowledge-based production systems that characterize a Knowledge economy.

Sales activity systematization and performance: Differences between product and service firms

Fri, 26 Jul 2013 00:00:00 +0100

Abstract

Purpose - The article studies the impact that systematization of sales activities through sales process management at the firm level has on profitable sales growth in business-to-business (B2B) companies. The research compares companies focusing on service offerings to those focusing on product offerings.Design/methodology/approach - The study is based on survey data.Findings - Despite the emergence of service-dominant logic, B2B service and product companies still differ in how sales process management contributes to firm performance. Research limitations/implications - The findings suggest that difference between service and product firms in their sales process management stem from the different underlying modes of interaction. The findings are generalizable to B2B companies.Practical implications - The findings help businesses differentiate between productive sales process management practices in product and service firms.Originality/value - The study contributes to the wider need of operationalizing ideas about sales process management at the level of organizations and business units.

ICT as a catalyst for service business orientation

Fri, 26 Jul 2013 00:00:00 +0100

Abstract

Purpose - Information and communication technology (ICT) is a key enabler for new product- and process-oriented services. The article investigates how ICT can enable service differentiation and in doing so act as a catalyst for a service business orientation.Design/methodology/approach - A qualitative, multi-case research design with eight multinational goods manufacturers.Findings - Two distinct types of service-oriented differentiation are identified; services in support of the product (SSP), and services in support of the client’s actions (SSC). The study finds that SSC have the largest positive impact on firms’ service business orientation.Research limitations/implications - Western firms in a limited sample of industries are studied. Furthermore, the service business orientation construct does not include any measurements of service profitability or impact on overall competitive advantage.Practical implications - To various extend, successful firms are likely to pursue both SSP and SSC differentiation traits through ICT. The two options are interdependent and the framework presented helps managers to understand both key specificities and their interrelatedness.Originality/value - The study contributes to theory on service strategies by specifically focusing on the enabling role of ICT for new services and its effects on each of the three dimensions of the service business orientation construct.

SALES COORDINATION AND STRUCTURAL COMPLEXITY: A NATIONAL-INTERNATIONAL COMPARISON

Fri, 26 Jul 2013 00:00:00 +0100

Abstract

Purpose - The existing literature on key account management (KAM) has focused more on sales forces and management levels than on their evolution. This study explores how sales activities can be coordinated to accommodate national and international KAM programs. Design/methodology/approach - A longitudinal study of the industrial conglomerate ABB 1996–2008. Findings - The diversity associated with geography and product complexity creates demands for a more flexible organization that can provide a more complete offering portfolio across national boundaries and still handle the demands of local organizations. In addition to internal organizational contingencies, the key factors and driving forces for the development of KAM programs are the marketing and purchasing strategies that buyer and seller firms perceive and encounter.Research limitations/implications - The data is limited to one corporation and some of its key customers in different industries. Although the internal and construct validity of the findings are strong, the external validity cannot be assessed precisely. Originality/value - The 12-year study brings valuable insights to the development of KAM programs in multinational corporations and addresses coordination issues related to geographical and product complexity.

The relationship between supplier development and firm performance: The mediating role of marketing process improvement

Fri, 26 Jul 2013 00:00:00 +0100

Abstract

Purpose - To test the Market Based Asset framework by examining the role of marketing process improvements in the relationship between a buyer firm’s supplier related activities and its performance.Design/methodology/approach - Interviews with executives that were involved in supplier development were conducted to learn more about supplier development and to help in the development of the survey constructs. A self-report survey was then developed online to collect data for the study. 338 executives responded and Partial Least Squares (PLS) structural equation modeling was used to test the hypotheses developed in the study.Findings - Marketing process improvements were found to mediate the relationship between a firm’s supplier development efforts and firm performance thus providing empirical support for the market-based asset framework. The study also found that a firm’s supplier development activities can lead to improvements in its marketing processes.Originality/value - For too long, a firm’s supply chain has been seen as the primary domain of the supply chain and operations department even though supply chain decisions and errors have a considerable impact on the ability of marketing professionals to perform. The findings in this study demonstrate the value of the relationship between a firm’s supply chain and its marketing activities and as such makes the case for marketing executives to be more involved in supply chain activities.