Development and implementation of customer solutions: A study of process dynamics and market shaping

A broad, dynamic network perspective on solution processes remains scarce. This article presents the process of developing and implementing customer solutions and its effects on the wider business environment by investi- gating customers and suppliers in the global mining industry (Australia, Chile, and Sweden), analyzing the de- ployment of a new customer solution, and assessing the changes to the competitive environment and focal firms' relationships with other customers and suppliers. It shows that the forces that drive customer and supplier interests and motivation to co-develop customer solutions may change over time, thus redefining the aim and scope of solutions and creating failure risks. Customers present problems; suppliers respond, on the basis of not only the feasibility of the customer-specific solution but also of their evaluation of future solutions in a broader market; then suppliers aim to standardize successful solutions across markets. Customers want close supplier relationships and unique solutions but also like standardized and repeatable solutions, so they can share development costs with competitors and expose the supplier to competition to avoid lock-in effects. From a network perspective, a novel solution can have a market-shaping effect and evoke reactions from other actors who want to enhance their market position. However, these changes are not necessarily deliberate, and the dynamics that market introductions of solutions trigger may be difficult to predict

Service Infusion as Agile Incrementalism in Action

As product markets mature, firms are increasingly offering industrial services, in order to differentiate themselves and remain competitive. The general strategic view emerging from the services literature is that service infusion in manufacturing industries takes a somewhat unidirectional path from products to service provision. Based on in-depth case study research in the materials handling industry and drawing on Lindblom's (1979) concept of disjointed incrementalism, this study shows how service infusion often takes place in small steps without clearly directed efforts. The study identifies elements of incrementalism central to service infusion and demonstrates how a successful service strategy involves continuous modifications, adaptability, the seizing of ad hoc innovation, a continuous recalibration of opportunities, and the management of intertwining goals. The study introduces the concept of agile incrementalism; this concept aptly describes this contingency approach. The article contributes to a multifaceted and nuanced picture of service strategy and the service-infusion process.nonPeerReviewe

The Effects of Anthropomorphised Virtual Conversational Assistants on Consumer Engagement and Trust During Service Encounters

Drawing on social exchange and anthropomorphism theory, this research examines the role of virtual conversational assistants (VCA) as frontline employees. Specifically, we investigate the effects of AI-derived features, such as anthropomorphism, in building Human-Machine relationships. Drawing on a qualitative interpretivist approach, 31 semi-structured interviews were conducted with global users of Siri, Alexa and Google Assistant. Our findings suggest anthropomorphism is an important factor in understanding the development of trust within Human-Machine interactions. More specifically, the effects of a humanised voice, interactive communication capability and cognitive features evoke a sense of social presence that may positively or negatively impact user trust. We propose that the interplay between a user’s perceptions of the bright and dark sides of interacting with an AI-empowered anthropomorphised machine determines categories of trust and subsequent customer engagement behaviours with this embedded form of organisational frontline

Intrinsic value of business-to-business relationships : an empirical taxonomy

This article presents a new taxonomy of business relationship value consisting of four dimensions: personal, financial, knowledge and strategic value that reach beyond the cost/benefit conception of value that dominates existing literature. This new taxonomy is useful for understanding how participants in business-to-business interactions assess relationship value. The taxonomy accounts for all textual references to relationship costs, benefits and intrinsic value in this case-based research. Perceptions of relationship value are not always organizationally consistent because relationships are social constructions. Instead, the evaluation of relationship value is ultimately in the historic and social context of the focal relationship, other relationships, and expectations of the future.7 page(s

Coordinated interaction and paradox in business relationships

Purpose – In this paper the authors present a theoretical framework that shows how interaction between two or more companies depends on its context of performance. Reflexivity between two or more levels of context potentially leads the parties to a situation exhibiting an apparently contradictory nature: paradox. The authors study the manner in which such situations occur and are resolved. Design/methodology/approach – The data in this paper comes from a three-year-long multiple case study investigation. Data was gathered from 15 different organizations through interviews, participant observation and document reviews. Findings – Context-bounded interaction between organizational actors can be interpreted in different, sometimes contradictory, ways, which can create paradox. Parties cannot stay in paradox for long because it may produce adverse personal and social consequences. Thus, resolution of paradox potentially causes significant changes to the structural attributes of relationships. Practical implications – Paradox has potentially significant and destructive consequences for the quality of business-to-business relationships. Organizational actors who understand that paradox has been encountered can develop strategies for exiting paradox and maintaining high-quality relationships with their partners. Originality/value – This paper presents a novel theoretical framework that explains how business interaction can lead to paradox, the experience and resolution of which potentially makes significant changes to the structure of business relationships.12 page(s

The Effects of previous episodes in business-to-business interaction

Purpose – This paper seeks to analyse the effects that previous episodes have on business-to-business relationships and how these episodes can influence the parties’ responses to a particular act. This investigation uses a network approach to investigate this relational situation. Design/methodology/approach – A single case study was used based on dozens of semi-structured interviews to explore this phenomenon. Qualitative information was gathered. In addition to interviews, review of documents and observation were also completed. Findings – It was found that varied outcomes occurred in the relationships and are a consequence of the contexts brought to bear on the dealers’ interpretations of the act of introducing a new agreement. New dealer relationships were strengthened, while established dealer relationships may have been weakened. Practical implications – A long-term relationship, built through exchanging acts over time, conditions the counterpart's response to the focal company's act. This research shows that this can happen even in cases in which the relationship could be reasonably classified as Customer partnership. The dealers’ reactions suggest that different network positions were occupied by the two different types of dealers, established and new. Even though their roles in the supply chain could be deemed as identical, it appears as if the parties’ obligations and rights were different. Originality/value – The paper illustrates the importance of good business relationships.13 page(s

Conceptualising business-to-business relationship value

"The value of relationships has been enormous because it has made the pain more bearable" claimed the manager of one large company that participated in our research. Building and maintaining relationships in business-to-business (B2B) contexts involves sacrifices by the parties involved, whether in time or money or by precluding the development of relationships with other parties. Relationships also deliver benefits which mayor may not surpass these costs. The net value of a relationship can be thought of as the difference or ratio between these costs and benefits. We have conducted extensive case-based research into B2B relationships and found that relationships deliver value in forms that go beyond simple financial considerations. We find that B2B relationships deliver value in four different forms, each of which can be indicated in a number of ways: 1) Personal value, indicated in customer retention and referral; 2) Financial value, expressed through increases in efficiency, share of business/wallet, share of market, and received price; 3) Knowledge value, expressed through market intelligence, idea generation and innovation; and 4) Strategic value, experienced through gains in long term planning and access to extended networks. Personal value is connected to another relational outcome - non-economic satisfaction. We observed that when personal value is found in a relationship the parties are more willing to stay, as well as more willing to recommend their business partner to others. Relationships may also permit sellers to achieve higher prices or either/both parties to reduce their costs of dealing with the other. We call this type of value 'Financial Value' which is linked to economic satisfaction with the relationship. Relationships allow communication to flow between parties. That is, parties share information, which might include market intelligence, feedback on their performance, methods to improve processes or new ways to manage their business. The parties also are more likely to work together in 'idea generation' teams. Put another way, the parties learn from one another, which we regard as 'Knowledge Value.' We also found that companies that maintain relationships experience longer time horizons for planning, as well as access to extended networks from which they can benefit. This provides the parties with a competitive edge that that we have called 'Strategic Value'.10 page(s