Customer-Firm Interaction and the Small Firm: Exploring Individual, Firm, and Environmental Level Antecedents

Customer-firm interaction (CFI) has been extensively studied in the past for its effects on customer satisfaction, new product success, and firm performance.  Research on the factors that facilitate or inhibit firms from interacting with their customers, however, is sparse. In this paper, we explored individual, product/service, and environmental factors that influence customer-firm interaction. Analyses are based on data from 172 small firms. Findings suggest that significant association exists between CFI and numerous individual, firm, and environmental factors, supporting the notion that in entrepreneurial and small firms CFI is used in a strategic fashion, to support market position. A set of post-hoc analyses showed that CFI antecedents vary by context such as entrepreneurs’ gender, experience, or firm performance. Results, their implications, and future research opportunities are discussed.Customer-firm interaction (CFI) has been extensively studied in the past for its effects on customer satisfaction, new product success, and firm performance.  Research on the factors that facilitate or inhibit firms from interacting with their customers, however, is sparse. In this paper we explored individual, product/service, and environmental factors that influence customer-firm interaction. Analyses are based on data from 172 small firms. Findings suggest that significant association exists between CFI and numerous individual, firm, and environmental factors, supporting the notion that in entrepreneurial and small firms CFI is used in a strategic fashion, to support market position. A set of post-hoc analyses showed that CFI antecedents vary by context such as entrepreneurs’ gender, experience, or firm performance. Results, their implications, and future research opportunities are discussed

Technological collaboration : bridging the innovation gap between small and large firms

This paper analyzes how technological collaboration acts as an input to the innovation process and allows small and medium-sized entetprises to bridge the innovation gap with their bigger counterparts. Based on a large longitudinal sample of Spanish manufacturing firms, the results show that though technological collaboration is a useful mechanism for firms of all sizes to improve innovativeness, it is a critical factor for the smallest firms. The impact on this collaboration varies depending on innovation output and type of partner. Specifically, the impact of collaboration in small and medium-sized firms is more significant for product than process innovations. Regarding type of partner, vertical collaboration-with suppliers and clients-has the greatest impact on firm innovativeness, though (his effect is clearer lor medium-sized entetprises than for the smallest firmsThis study has been finaneially supported by projeets SEC]2007-67582-C02-02/ECON and CCG08-UC3M/HUM-4152Publicad

Servitization, digitization and supply chain interdependency

This study draws on literature at the intersection of servitization, digital business models and supply chain management. Work empirically explores how digital disruption has affected Business-to-Business (B2B) interdependencies. Dematerialization of physical products is transforming the way firms are positioned in the supply chain due to a reduction in production and transport costs and the different ways business engage with customers. Specifically, we propose that these new market conditions can empower downstream firms. We further propose that upstream firms can still capture additional value through digital service if their servitized offer includes difficult to imitate elements. The context of the analysis is the publishing industry. The Payment Card method employed is used to test UK and US consumer’s perceptions of digital formats (eBooks) and assess their willingness to pay in relation to printed formats. The method undertaken enables us to elicit aggregated consumer demand for eBooks which in turn identifies optimal pricing strategies for the digital services. Analysis demonstrates that during digital servitization upstream firms should seek to deploy unique resources to ensure their strategic position in the supply chain is not diminished

What is the value of entrepreneurship?: a review of recent research

This paper examines to what extent recent empirical evidence can collectively and systematically substantiate the claim that entrepreneurship has important economic value. Hence, a systematic review is provided that answers the question: What is the contribution of entrepreneurs to the economy in comparison to non-entrepreneurs? We study the relative contribution of entrepreneurs to the economy based on four measures that have most widely been studied empirically. Hence, we answer the question: What is the contribution of entrepreneurs to (i) employment generation and dynamics, (ii) innovation, and (iii) productivity and growth, relative to the contributions of the entrepreneurs counterparts, i.e. the control group? A fourth type of contribution studied is the role of entrepreneurship in increasing individuals utility levels. Based on 57 recent studies of high quality that contain 87 relevant separate analyses, we conclude that entrepreneurs have a very important but specific function in the economy. They engender relatively much employment creation, productivity growth and produce and commercialize high quality innovations. They are more satisfied than employees. More importantly, recent studies show that entrepreneurial firms produce important spillovers that affect regional employment growth rates of all companies in the region in the long run. However, the counterparts cannot be missed either as they account for a relatively high value of GDP, a less volatile and more secure labor market, higher paid jobs and a greater number of innovations and they have a more active role in the adoption of innovations

The role of social capital and structural arrangements in explaining intercompetitor behavior

Existing research on interfirm behavior focuses primarily on customer-supplier relations, on industry level competitive dynamics, or on the motives and practices of cooperative activities. To date, very little research exists that examines firm level determinants of practices a firm employs in relation to its competitors. This dissertation focuses on the relations among competing firms, specifically, on a firm\u27s competitive aggressiveness and intercompetitor cooperation. It is argued in this dissertation that competitive aggressiveness and intercompetitor cooperation can be explained by the senior executive\u27s social capital and the firm\u27s structural arrangements. The study is grounded in the theoretical framework of social embeddedness, which argues that all economic activity is affected by the social context in which it occurs. A review of the literature on competition and interfirm behavior, social networks, and organizational structure led to the choice of the three major constructs that are examined: intercompetitor behavior (conceptualized as competitive aggressiveness and intercompetitor cooperation), social capital, and structural arrangements. The research design was cross-sectional. Data were collected through a mail survey, which was sent to the senior strategic decision maker of small manufacturing firms in the North Eastern U.S. A total of 149 useable questionnaires were retuned and used in the study. Hypotheses on the relation between (a) executives\u27 social capital and intercompetitor behavior and (b) structural arrangements and intercompetitor behavior were tested through correlational analysis. Multiple regressions, correlations, t-tests and ANOVAs were used to test the hypotheses. Results are consistent with the overall framework of social embeddedness, and indicate (a) that competitive aggressiveness is primarily a function of the firm\u27s structural arrangements, and (b) that intercompetitor cooperation is a function of both managerial social capital and the firm\u27s structural arrangements. The interpretation of the findings is consistent with literature which suggests that aggressiveness is likely to be a function of the firm\u27s capabilities to successfully carry out aggressive acts. Findings with regard to intercompetitor cooperation suggest that both social capital and structural arrangements are used as a buffer against the risk associated with intercompetitor cooperation. The implications of these findings are discussed and avenues for future research are proposed