Implementing Changes in Marketing Strategy: The Role of Perceived Outcome- and Process-Oriented Supervisory Actions

This study investigates the role of supervisors in implementing changes in marketing strategy. The authors propose that perceptions of outcome-oriented supervisory actions influence salespeople\u27s primary appraisals of a strategic change (i.e., whether the change will affect them) and that perceptions of process-oriented supervisory actions influence salespeople’s secondary appraisals (i.e., whether they can cope with the impact of the change on them). The results from a study of 828 salespeople in 204 branches of a large distributor of industrial goods provide evidence that perceived outcome risk containment and outcome reward emphasis enhance primary appraisals, whereas perceived process risk containment and process reward emphasis enhance secondary appraisals. In turn, the authors find that salespeople\u27s primary and secondary appraisals influence their change implementation behaviors, leading to successful change implementation. Notably, they also find that (outcome and process) risk containment has a greater influence on appraisals of salespeople with a higher performance orientation, but the effects of (outcome and process) reward emphases are invariant across salespeople’s performance orientation. The findings suggest that successful implementation of strategic change may depend not merely or even primarily on giving rewards to salespeople for implementing change but also on limiting salespeople\u27s risks and recognizing them for their change-related efforts

Return on interactivity: The impact of online agents on newcomer adjustment

As service offerings grow in both range and complexity, how service providers and their customers interact is becoming increasingly important. In response to the challenge of optimizing these interactions, companies have introduced sophisticated online "socialization agents," whose purpose is to help new customers more effectively adjust to and function within the service environment. The objective of these online agents, or virtual employees, is to help customers evaluate new or unfamiliar service offerings, as well as help companies achieve greater levels of service delivery and financial performance. To investigate this, the authors analyze the process by which online agents help both new and current customers adjust to and function within new, unfamiliar, or complex service contexts. They examine the impact of an online agent on account performance in the banking industry. They find that both interaction style and content of the online agent significantly influence the newcomer adjustment process over time, which in turn influences firm-level performance

Quantum Park Hotels: Can pipes break your reputation?

For purchase of the case and supplementary materials via The CMP Shop, please access the following link: The Case (SMU-24-0003) The links to purchase the case and supplementary materials on The Case Centre and Harvard Business Publishing is available via The CMP Shop. SMU Faculty/Staff can download the case and supplementary materials on iNet with your SMU login ID and Password via The CMP Shop</p

THE MODERATING INFLUENCE OF FIRM MARKET POWER ON THE TRANSACTION COST ECONOMICS MODEL: AN EMPIRICAL TEST IN A FORWARD CHANNEL INTEGRATION CONTEXT

Transaction cost economics (TCE) has guided a variety of research on governance in the strategic management literature. An important question arises, however, as to whether the TCE framework is equally appropriate for all types of firms in all business settings. In this paper, we argue that TCE is not and suggest that firms with high market power may be able to lower transaction costs under high asset specificity and uncertainty in nonintegrated distribution channels, avoiding the need to utilize highly integrated channels as a result. We test our hypotheses with data collected from 40 manufacturers of electronic and telecommunications products in 109 product-markets in the United States. The results support our hypothesis that transaction cost factors are better at explaining forward channel integration for firms with low market power than for firms with high market power. Our results indicate that the basic TCE framework must be supplemented by the market power construct to adequately explain forward channel integration decisions. Copyright © 2007 John Wiley &amp; Sons, Ltd. Transaction cost economics (TCE) has become one of the leading theoretical perspectives in the study of management and organizations (Davi

The Threat from Within: Account Managers' Concern About Opportunism by Their Own Team Members

It is well known that transaction-specific investments (TSIs) made in customers by account managers makes them vulnerable to opportunism by customers (i.e., the targets of the investments). The present research shows that TSIs made in customers by account managers can also lead them to be concerned about internal opportunism by nontargets of the investments (e.g., information technology or finance specialists in their own teams). Furthermore, it shows that concern about internal opportunism leads account managers to engage in internal blocking of their own team members (i.e., restricting their access to customers and to customer information), which results in lower performance with customers. This phenomenon is a conundrum in that account managers interested in stronger performance with customers appear to block the very functional specialists who can help them attain better performance. This research also identifies two types of continuities (account manager-customer continuity and specialist-customer continuity) that moderate the relationship between TSIs and concern about internal opportunism. Building on the literature in economics and organization theory, our research suggests that cross-functional teams that are designed to bring different functional areas together are more complex to manage than previously believed. This paper was accepted by Pradeep Chintagunta and Preyas Desai, special issue editors. This paper was accepted by Pradeep Chintagunta and Preyas Desai, special issue editors.transaction-specific investments, internal opportunism, continuity, internal blocking, sales teams

Does Innovation Mediate Firm Performance?: A Meta-Analysis of Determinants and Consequences of Organizational Innovation

This study uses emerging meta-analytic methods, in combination with structural equations methodology, to synthesize empirical studies that examine the correlates (antecedents and/or outcomes) of organizational innovation. Overall, this study draws upon a meta-analytic database of 134 independent samples from 83 studies from the period of 1980 through 2003. Specifically, the study examines the impact of 27 determinants and 3 performance outcomes of innovation with an overall sample size of 122,943. Organizational capabilities and structure account for the majority of unique variance explained in predicting innovation. Overall findings indicate that innovation is significantly and positively related to superior performance. Additionally, a multivariate generalized least squares (GLS) moderator analysis indicates that measurement factors and research design considerations in model specification significantly biases the observed effects within a given study. Using a dichotomous measure of innovation deflates observed effect sizes, while studying innovation cross-sectionally and within one industry sector inflates the observed effect. The findings also help address a number of conflicting results. Finally, this study tests an integrative model of product innovation and finds support for innovation as a partial mediator between environmental and organizational variables and financial performance. The study identifies surpluses and shortages in the empirical literature on organizational innovation