Effect of Digital Enablement of Business-to-Business Exchange on Customer Outcomes: The Role of Information Systems Quality and Relationship Characteristics

This study extends our understanding of how information systems impact business value creation by examining the effect of digital enablement of business-to-business exchange on customer outcomes. We shed light on the connection between information technology investment and firm performance by focusing on how information technology is used (Devaraj and Kohli 2003) in an industrial services context and by highlighting the importance of indirect effects (Mittal and Nault 2009). A conceptual model is developed that combines a customer centric perspective (Sheth et al. 2000) with elements from the information systems success framework (DeLone and McLean 1992, DeLone and McLean 2003). Mediating factors are identified in the chain of effects from information technology specific business-to-business service quality characteristics to customer outcomes. In addition, we consider two contextual factors, relationship duration and customer dependence, which are known to alter the nature of buyer-supplier relationships but which have received little attention in research on digital enablement of business-to-business exchange. An empirical test of hypothesized relationships was performed using subjective and objective archival data from business-to-business exchange relationships for a logistics services vendor. All expected main effects were confirmed. Customer satisfaction was found to be a significant mediator in the chain of effects from information technology specific business-to-business service quality characteristics to customer outcomes. In addition, logistics service quality was found to mediate the relationships between system quality and customer satisfaction and between information quality and customer satisfaction. The hypothesized moderating effects, however, were not found to be significant. Robustness of the findings was confirmed by testing model hypotheses using data from exchange relationships with customers in two different industries, manufacturing and wholesale trade. Differences in analysis results are consistent with industry differences. This study contributes to the literatures on interorganizational information systems (Rai et al. 2006) and information technology business value (Melville et al. 2004) by identifying mediating mechanisms in the chain of effects from digital enablement of exchange to customer outcomes. Explication of mediating mechanisms improves our understanding about the indirect nature of impacts from information technology. This study also contributes to the literature on information systems by extending DeLone and McLean\u27s (2003) model of information systems success to the context of business-to-business exchange relationships. In addition, this study contributes to the literature on services marketing (Zeithaml and Bitner 2003, Berry and Parasuraman 1993) by showing how system quality and information quality impact logistics service quality and customer satisfaction in a business-to-business exchange context

The influence of customer involvement and engagement on co-creation of services, satisfaction, and loyalty: The case of Software as a Service

Software as a digital product has been shown to improve companies’ performance and efficiency. One product that is now at the core of many businesses is Software as a Service (SaaS). By utilizing cloud computing platforms, SaaS is a method of providing applications as a service. SaaS applications have unique characteristics that can be customized to meet customers’ needs. Hence, SaaS has become suitable for companies of all types and sizes, including small- and medium-sized enterprises. The purpose of this study is to examine the effect of customer involvement on the development of SaaS applications and the impact of customer engagement on the co-creation of services, satisfaction, and loyalty, with the co-creation level used as a moderating variable. Data were collected from responses to an online questionnaire by 282 users of a SaaS application in Indonesia who were the decision-makers of the selected SaaS provider. The data were then analyzed using structural equation modeling. The results show that customer involvement in developing SaaS applications significantly positively affects the co-creation of services, satisfaction, and loyalty (t-value > 1.645). Moreover, the level of co-creation was proven to strengthen the impact of customer involvement on the co-creation of services with an interaction Standardize Loading Factor (SLF) path of 1.36. Hence, the findings indicate that higher customer involvement promotes collaborative activities with service providers, and the optimum level of co-creation raises customer satisfaction

The impact of Digital Platforms on Business Models: an empirical investigation on innovative start-ups

Digital platforms have the ability to connect people, organizations and resources with the aim of facilitating the core interactions between businesses and consumers as well as assuring a greater efficiency for the business management. New business concepts, such as innovative start-ups, are therefore created based on innovation, scalability and the relationships within the community around them. The purpose of this work is to deeply understand the evolution of business models brought by innovative and dynamic companies operating through online platforms. In order to achieve the objectives set, an exploratory multiple-case study was designed based on in-depth structured interviews. The aim was to conduct a mixed analysis, in order to rely both on qualitative and quantitative data. The structured interview protocol was therefore designed to collect and then analyse data concerning the company profile and managers’ perspectives on the phenomenon of interest. The interview protocol was submitted in advance and then face-to-face interviews were carried out with the following professional figures: Chief Executive Officer (CEO), General Manager, Chief Technology Officer (CTO), Marketing Manager and Developers. Collected data were analysed and processed through the Canvas Business Model in order to clearly outline similarities and differences among the sample. Results can be considered under two viewpoints. On the one hand, this work provides a detailed overview of the companies interviewed, according to the dimensions of: reference market dynamics, type and number of customers, scalability. On the other one, they allow to identify some success patterns regarding key activities, key resources, channel mix strategy, costs management, value proposition, customer segmentation, key partners and the way to obtain revenues. Results from the multiple-case study with 15 Italian start-ups provide interesting insights by comparing the innovative business models developed and highlighting key differences and similarities. verall, the start-ups analyzed, operating in several sectors, showed great growth prospects and the possibility to create value for their customers through innovative products and services offered through digital platforms

Designing Scalable Business Models

Digital business models are often designed for rapid growth, and some relatively young companies have indeed achieved global scale. However despite the visibility and importance of this phenomenon, analysis of scale and scalability remains underdeveloped in management literature. When it is addressed, analysis of this phenomenon is often over-influenced by arguments about economies of scale in production and distribution. To redress this omission, this paper draws on economic, organization and technology management literature to provide a detailed examination of the sources of scaling in digital businesses. We propose three mechanisms by which digital business models attempt to gain scale: engaging both non- paying users and paying customers; organizing customer engagement to allow self- customization; and orchestrating networked value chains, such as platforms or multi-sided business models. Scaling conditions are discussed, and propositions developed and illustrated with examples of big data entrepreneurial firms

Servitisation and value co-production in the UK music industry

Since the rise of music on the internet, record companies have reported falling sales of physical products. This has occurred at a time when technology has radically increased choice, availability and the opportunity for the consumer to purchase music. As the music industry has moved from a product to a service business model, has the loss of sales meant they have not taken their customers with them? This paper provides a description of different music consumers based upon quantitative analysis of consumer characteristics. The paper then undertakes an exploration of the relationship between the consumer groups and their purchasing preference in relation to intangible ‘service’ purchase such as downloaded music and the purchase of a tangible physical product such as CDs or vinyl. In addition, we analyse the relationship between consumer types and their propensity to actively engage with music communities, such as through engagement with social media, and thus their willingness to coproduce greater value. Finally we explore the moderating effects of age and time devoted to listening to music on purchasing preferences and music discovery

The digital transformation of business models in the creative industries: A holistic framework and emerging trends

This paper examines how digital technologies facilitate business model innovations in the creative industries. Through a systematic literature review, a holistic business model framework is developed, which is then used to analyse the empirical evidence from the creative industries. The research found that digital technologies have facilitated pervasive changes in business models, and some significant trends have emerged. However, the reconfigured business models are often not ‘new’ in the unprecedented sense. Business model innovations are primarily reflected in using digital technologies to enable the deployment of a wider range of business models than previously available to a firm. A significant emerging trend is the increasing adoption of multiple business models as a portfolio within one firm. This is happening in firms of all sizes, when one firm uses multiple business models to servedifferent markets segments, sell different products, or engage with multi-sided markets, or to use different business models over time. The holistic business model framework is refined and extended through a recursive learning process, which can serve both as a cognitive instrument for understanding business models and a planning tool for business model innovations. The paper contributes to our understanding of the theory of business models and how digital technologies facilitate business model innovations in the creative industries. Three new themes for future research are highlighted

How should a small company interact in its business network to sustain its exchange effectiveness?

This paper investigates the dynamic alignment of network and business\ud development of two small firms in the printing industry. Developments are\ud followed over more than 8 years. The aim of the paper is to understand how\ud small firms can manage their network relations by maintaining both their\ud efficiency in existing business and flexibility to develop new business. The case comparison suggests that different networking approaches drive business\ud development. For successful business development both strong and varied ties\ud as well as the existence of different intermediary functions of partners are\ud necessary

Living lab methodology as an assessment tool for mass customization

Mass customization has been regularly used as a growth strategy during the last decades. The strength of this approach stems from offering products adjusted to customers' individual needs, resulting in added value. The latter resides in the word 'custom,' implying unique and utilitarian products allowing for self-expression of the consumer. Researchers and practitioners however predominantly focused on the company's internal processes to optimize mass customization, often resulting in market failure. As a response, a framework with five factors determining the success of mass customization was developed. Additionally, Living Lab methodologies have been used to improve innovation contexts that were too closed. This paper will fill a gap in the literature by demonstrating that the integration of the five-factor framework in the Living Lab methodology is well suited to determine the possible success or failure of a mass-customized product in the market by means of a single case study

Cloud-based manufacturing-as-a-service environment for customized products

This paper describes the paradigm of cloud-based services which are used to envisage a new generation of configurable manufacturing systems. Unlike previous approaches to mass customization (that simply reprogram individual machines to produce specific shapes) the system reported here is intended to enable the customized production of technologically complex products by dynamically configuring a manufacturing supply chain. In order to realize such a system, the resources (i.e. production capabilities) have to be designed to support collaboration throughout the whole production network, including their adaption to customer-specific production. The flexible service composition as well as the appropriate IT services required for its realization show many analogies with common cloud computing approaches. For this reason, this paper describes the motivation and challenges that are related to cloud-based manufacturing and illustrates emerging technologies supporting this vision byestablishing an appropriate Manufacturing-as-a-Service environment based on manufacturing service descriptions