Purchasing software components at the dawn of market

Abstract This study explores the role and nature of purchasing and supplier relationship management in the specific, complex industry setting. The purpose is to develop concepts to describe, conceptualise and analyse the emerging software component market from the point of view of the industrial buyer. The theoretical discussion on the market is concluded with a framework consisting of two parts; one describing the main elements of the market from the buyer's perspective and another describing the dynamism of the market. The theoretical framework suggests that the elements of the market from the buyer company's perspective are (1) the own needs, (2) the industry demand, (3) the object of exchange, (4) the exchange mechanism, (5) the exchange counterpart and (6) the industry supply. In the dynamic part of the framework, the development of the software component market, i.e. the progression of the market process is understood through change of heterogeneity of supply and demand. The empirical part of the study includes an embedded single-case study where a buyer perceived COTS software component market is analysed. First, the elements of the case market are studied and variables describing these elements are identified. Following this, the dynamic part of the framework is used as basis for identifying alternative types of markets for the development of the COTS software component market. This is resulted in a typology of four market types from the purchasing perspective; (1) Co-operation projects, (2) Ideal market, (3) Competitive supply management and (4) Horizontal competition. It is argued that all these represent a different type of situation from the industrial purchasing perspective. Finally, it is suggested how the different elements of the market process represent themselves and how they can be used in managing purchasing and influencing the markets in each of these possible market types

Embeddedness of individual expertise in professional business service relationships

Abstract The study aims to create an understanding of the embeddedness of individual expertise in the customer relationships of professional business service firms. A theoretical pre-understanding based on discussions of professional service business relationships in general and the role of individual experts in customer relationships, in particular, is assessed through a case study of a professional business services provider and four customer organizations. The study suggests that the embeddedness of individual expertise within professional services in business relationships manifest itself in four ways: (1) expertise embedded in knowledge of the service context, (2) expertise that can be transferred between organizational contexts, (3) expertise embedded in personal relationships, and (4) expertise embedded in the personal interactions that enable knowledge-sharing. Each has implications for various activities performed by the parties and relationship management practices, which are also scrutinized in the present study. Also, the adoption of a new concept of personified service in business relationships is put forward. The study highlights that the reliance on personal expertise is not only a challenge for relationship management, as often suggested, but can also generate effectiveness in both customer and supplier relationship management

End-user engagement within innovative public procurement practices:a case study on public–private partnership procurement

Abstract The purpose of this paper is to establish a model for an end-user engagement process within innovative public procurement practices. Even though the importance of the public service end-user has been recognized by researchers and policy makers for some time, there’s a genuine lack of commonly acknowledged user engagement tools for both procurer’s and supplier’s practical implementation. We focus on the way value creation can be enhanced through actively engaging end-users as co-creators of value in public procurement. The study employs an intensive single-case methodology, where the findings are based on qualitative data gathered on a Public–Private Partnership (PPP) -based school property procurement in Finland. The end-user’s value potential does not rest only with creating individual user value but also with increasing e.g. the public service’s social, environmental and political value. Our findings support the existing theoretical understanding according to which the most significant end-user value is achieved through interactive dialogue in the design phase of the public procurement project. The most significant advantages of active end-user engagement are especially seen in the usability of the provided public service. Study results also indicate positive effects of end-user’s independent value creation and the sensation of involvement in the user’s individual value experience

Integrative perspective of mobile advertising for SMEs

Abstract Mobile advertising (m-advertising) is a subset of mobile marketing and refers to all forms of advertising via mobile phones or other mobile devices. M-advertising is becoming an important marketing channel for any type of company, notably for SMEs and small entrepreneurial start-ups and their media and communications portfolio. However, it is still unclear how to best use m-advertising for the benefit of both end-consumers and advertisers. This study explored a field experiment of new m-advertising system conducted in Finland and based on a qualitative explorative study of the critical value elements of m-advertising were identified. The findings show that the active participation of both the advertisers and end-consumers is a key determinant in making m-advertising a viable service; unless both advertiser and end-consumer actively engage in the co-creation of a m-advertising service, value creation will not reach its full potential. In addition, this study provides practical implications for the retailers on how to use m-advertising service successfully in their marketing

The critical factors shaping customer shopping experiences with innovative technologies

Abstract Purpose: The purpose of this study is to explore the customer shopping experience in the innovative technology setting. Specifically, the purpose is to understand how do innovative technologies influence the customer shopping experience? Design/methodology/approach: This qualitative, explorative study has characteristics of a phenomenological research strategy. The data were collected from four focus groups and ten in-depth interviews with consumers. Abductive approach with an implementation of content analysis was used as a method of analysis. Findings: The results show that there are three critical factors in customer's shopping experience in the context of innovative technologies; (1) channel choice, (2) value dimensions related to convenience and enjoyment, and (3) social interaction. All factors are highly intertwined and influence each other. Originality/value: This study contributes to customer experience literature by offering a framework for understanding customer shopping experiences in the innovative technology setting. These findings have important implications for retail managers seeking to enhance customer experience and achieve a competitive advantage by utilizing innovative technology

Facilitating shared understanding of business responsibility

Abstract Responsibility, as a crucial notion in pursuing the SDGs, is an important theme on the education development agenda in business schools around the world. Our study focuses on responsibility as mindset instead of extensive knowledge base and assumes the development of shared understanding of responsibility among participating actors as the main target for responsibility education. Based on empirical data from a master’s level business course our research paper shows how a responsibility mindset among business students can be facilitated through the creation of shared understanding. More specifically, we aim to answer the following research questions: How to facilitate the creation of shared understanding for a responsible mindset in higher business education? Our findings point at the inherently dynamic and dialogic nature of shared understanding of business responsibility. Creating shared understanding of responsibility is not a linear learning process but the continuous iteration of (re-)creating individual and shared understanding. Shared collaborative learning enables individuals to continuously connect and scrutinize their understandings (discipline specific knowledge) with a bigger picture of responsibility (other disciplines’ specific knowledge). That way, business leaders become responsibility agents who embrace responsibility as a mindset with a collective, and continuously evolving (i.e., never finished) nature

Restructuring value networks to enable sustainable innovations in food packaging plastic industry

Abstract Sustainability presents major challenges for societies and businesses all around the world. Different policy instruments, as well as regional and international innovation systems, are in place to advance the development of technologies that enable both more sustainable production and consumption. It has been argued that sustainability policy instruments should aim at both creating niche innovations but also at disestablishing current dominant regimes to create openings that enable the transitioning to sustainable technologies. Sustainable innovations tend to require the development of new and well-working technology, but also dismantling existing industry regimes that support the use of old technologies and prevent the change towards new more sustainable technologies. Understanding how science-based sustainability innovations are adopted in established industry networks may enable a faster adoption process of sustainable innovations. Our research question is: what types of changes to existing industry value networks are needed to enable diffusion of science-based sustainability innovations? In the present study, we focus on the food packaging industry and the sustainability challenge related to the need to reduce the use of plastics and substitute them with bioplastics. Plastic is a versatile, durable and inexpensive packaging material, but the environmental problems related to plastic are creating pressure to develop new packaging films and processes that are more user and environmentally friendly. We empirically examine what types of changes to existing industry value networks are needed to enable the large-scale use of biodegradable bio-based bioplastics in the food packaging industry