Dynamic product proliferation and firm performance implications

Product proliferation is a product strategy whereby a firm increases the number of products it offers to attract and satisfy diverse customer needs, to create barriers to entry, disperse risk, and develop economies of scope. Despite the importance of product proliferation decisions for firm performance, and significant extant research, the performance consequences of product proliferation activities are unclear, with equivocal results emerging in the literature. Adopting a dynamic approach, we specify the conceptual domain of product proliferation and explore different facets (within-niche, new-niche) of product proliferation. In doing so, this research aims to develop a better understanding of the benefits and/or drawbacks of product proliferation activity and develop a model that explicitly considers nonlinear relationships and articulates the impact of potential moderators. The moderators explored include:scopification (a variable that captures how product expansion occurs), which can create managerial complexities, and potentially erode performance outcomes of product proliferation; R&D expenditure (a proxy for firm R&D effort), which could support the development of both new technology (exploration) and better application of the existing technologies (exploitation) and, thus, enhance product proliferation performance outcomes; marketing expenditure (a proxy for marketing efforts), which could support product promotion and increase the performance outcomes of proliferation efforts; product cannibalisation, where sales and market share outcomes are eroded due to the lack of difference between the new and existing products; and intensity of competition (the level of competition in a market), which requires different market research costs and the costs of market research in a low competition market might be lower, and thus enhances the outcomes of proliferation. This research aims to make an academic contribution by describing two key facets of dynamic product proliferation, explaining how these may shape performance, and exploring the potential moderators that determine the performance consequences of product proliferation strategies. As a result, the study will also make a managerial contribution by providing information that managers can feed into the design of product portfolios, that can shape organisational innovation policy, and that can help managers allocate business resources more effectively

The form of relationship between firm-level product innovativeness and new product performance in developed and emerging markets

This study investigates whether the relationship between firm-level product innovativeness and new product performance is curvilinear, and whether the nature of this relationship is dependent on organizational and environmental factors in both developed and emerging market contexts. Using primary data from 319 UK and 221 Ghanaian companies, this study shows that in both developed and emerging markets the basic form of the relationship between firm-level product innovativeness and business success is inverted U-shape, but that the strength and/or form of this relationship changes under differing levels of market orientation, access to financial resources, and environmental dynamism. Some commonalities are identified across the two countries: market orientation helps firms leverage their product innovativeness. However, differences are also observed across the samples: in Ghana, access to financial resources enhances the relationship between product innovativeness and new product performance, unlike in the UK, where access to financial resources has no significant impact on this relationship. Furthermore, while UK firms are able to leverage product innovativeness to their advantage in more dynamic environments, Ghanaian firms are not able to benefit in this way, and find that high levels of innovation activity are less useful when markets are more dynamic

Knowledge exploitation and value creation: Lessons from the energy sector

A systemic knowledge management (KM) strategy will be underpinned by a model of the whole knowledge cycle. In such a strategy, key knowledge areas and processes pertaining to the acquisition, organisation, dissemination and exploitation of knowledge, will be defined that are intended to drive organisational activities. A systemic approach to KM was adopted by an innovation organisation in the energy sector. The planned finite life span of the organisation drew attention to the need to repeatedly complete the knowledge cycle – including the exploitation of knowledge - so as to deliver impact and to ensure a significant legacy beyond its operational life. Current literature concentrates on micro-level inhibitors and enablers of knowledge transfer that often view exploitation as a goal, rather than a process. The experience of this organisation highlighted a gap in empirical work which investigates system level knowledge interactions. The qualitative study reported herein relates to an event in the case study organisation’s calendar; anticipated to be pivotal in its knowledge exploitation activities. Fourteen semi-structured interviews were undertaken capturing the perceptions and understandings of staff regarding the event. Aspects such as expectations of the aims, target audience, benefits and measures of success of the event, were explored. A three tier (macro-, meso- and micro-level) data analysis approach was adopted to reflect the systems level interactions and influences. Major themes were identified relating to the knowledge management and exploitation work in the organisation that can improve knowledge exploitation activities in the case study organisation, as well as in other knowledge intensive organisations. These themes included: (i) An ongoing requirement to tailor activities to the individual needs of stakeholders; (ii) The need to focus on planning and implementing knowledge utilisation (KU) as distinct facets; and (iii) The development of specific skills that reflect the relational nature of KU to maximise value creation and deliver impact. Further, complex system influences meant that KU was never guaranteed to occur; this makes adaptability and responsiveness important qualities for knowledge producers and emphasises the importance of stakeholder engagement through the building of interactive relationships

Export strategic orientation–performance relationship: Examination of its enabling and disenabling boundary conditions

This study finds that the form of relationship between export strategies – entrepreneurial orientation (EO) and export market orientation (MO) – and export sales performance is curvilinear and dependent on levels of intra-firm resource coordination capabilities. Findings from primary data drawn from new international ventures reveal that increased changes in combined EO and MO strategies lead to decreases in export sales performance. Results further indicate that when levels of resource coordination flexibility and MO are higher the effect of EO on performance is strengthened. However, when levels of MO increase in magnitude along with higher levels of resource coordination flexibility, the levels of sales performance decrease. A natural conclusion to draw is that new international ventures that develop their MO resources and align these with their intra-firm resource coordination competencies will fully realize the export sales benefits of their EO activities

Caring and conflicted: mothers' ethical judgements about consumption

Literature on consumer ethics tends to focus on issues within the public sphere, such as the environment, and treats other drivers of consumption decisions, such as family, as non-moral concerns. Consequently, an attitude– behaviour gap is viewed as a straightforward failure by consumers to act ethically. We argue that this is based upon a view of consumer behaviour as linear and unproblematic, and an approach to moral reasoning, arising from a stereotypically masculine understanding of morality, which foregrounds abstract principles. By demonstrating the importance of context to consumption decisions and articulating the impact of caring relationships, we highlight how such decisions are both complex and situated. This is particularly evident for decisions involving the needs of others, as occurs in family life. We argue that the incorporation of care ethics provides both theoretical insights and a more complete account of consumer ethics. This is explored empirically through an investigation of the ethical dilemmas arising from consumption decisions made by mothers of young children. Such decisions juxtapose an ethical consumption orientation (representing impartial concerns) with care for one’s child. Therefore, what has been previously considered a failure to act ethically may in fact be the outcome of complex decision making, which involves competing ethical considerations. We discuss the implications of our findings for theory and practice and how this approach to consumer ethics could be applied more widely

Entrepreneurial and market-oriented activities, financial capital, environment turbulence, and export performance in an emerging economy

This study examines the impact of the simultaneous implementation of entrepreneurial and market-oriented export activities on export success and whether this relationship depends on levels of financial capital and market environment turbulence. The findings from a study of 164 Ghanaian exporting small and medium-sized enterprises (SMEs) indicate that high levels of both entrepreneurial and market orientation generate better export performance. The relationship is stronger when firms have greater financial capital and operate in more turbulent export market environments. These results extend existing knowledge of how SMEs can improve export performance by seeking fit between firm-specific capabilities and external environment conditions

Improving the design process for adaptability: linking feedback and architectural values

Designing for adaptability intuitively requires an understanding of how buildings tend to change over time. This, in turn, suggests that architects could learn from and accumulate knowledge as their buildings evolve and change over time. On the other hand, the ways architects learn through conventional forms of feedback are not conducive to them learning about the effectiveness of their designs in use. For example, they tend to focus on the visual, whereas most feedback is provided in the form of check boxes and reports. Current feedback techniques are also heavily focused on performance metrics captured at one point in time. In this paper it is argued that feedback focused on how buildings are adapted over time should be integrated as part of the design process, informing architects of what has or hasn't worked, and what could be improved. The research addresses the need for a technique that will inspire architects to utilise feedback more effectively. Semi-structured interviews were conducted with seven UK architects in order to better understand how feedback informs their design decisions and whether more appropriate methods could be devised to improve the design process for adaptability. The analysis reveals that current feedback mechanisms are not sufficient for capturing feedback for adaptability, nor do they present the material in a format that fits into an architects' current mode of operation. The data suggests that architects are interested in learning about how buildings can accommodate change and that a tool that presents the captured lessons of past projects in a visual way, could improve the utilisation of this feedback

Improving the design of adaptable buildings though effective feedback in use

For many years the issue of how to design buildings which can adapt to changing demands has posed a considerable challenge. This debate has had renewed significance given the emergence of the sustainability agenda and the need to extract additional value from built assets through life. Developing a better understanding of how buildings change over time is arguably crucial to informing architects concerned with extending the life of buildings. This paper critically reviews literature on adaptability, together with that relating to knowledge feedback and architectural practice, in order to construct a theoretical platform for understanding how knowledge of how buildings change can be used to inform design decisions. A pilot case study is used to illustrate the ways in which buildings change could be captured to inform adaptable designs in the future. The work reveals a lack of knowledge in how buildings change and how, if this was fed back to architects, it could support design decisions that might increase the life of many buildings

Motivations for servitization: the impact of product complexity

Purpose To identify the commonalities and differences in manufacturers’ motivations to servitize. Design/methodology/approach UK study based on interviews with 40 managers in 25 companies in 12 sectors. Using the concept of product complexity, sectors were grouped using the Complex Products and Systems (CoPS) typology: non-complex products, complex products, and systems. Findings Motivations to servitize were categorised as competitive, demand-based (i.e., derived from the customer) or economic. Motivations to servitize vary according to product complexity, although cost savings and improved service quality appear important demand-based motivations for all manufacturers. Non-complex product manufacturers also focus on services to help product differentiation. For CoPS manufacturers, both risk reduction and developing a new revenue stream were important motivations. For uniquely complex product manufacturers, stabilising revenue and increased profitability were strong motivations. For uniquely systems manufacturers, customers sought business transformation, whilst new service business models were also identified. Research limitations/implications Using the CoPS typology, this study delineates motivations to servitize by sector. The findings show varying motivations to servitize as product complexity increases, although some motivational commonality existed across all groups. Manufacturers may have products of differing complexity within their portfolio. To overcome this limitation the unit of analysis was the SBU. Practical implications Managers can reflect on and benchmark their motivation for, and opportunities from, servitization, by considering product complexity. Originality/value The first study to categorise servitization motivations by product complexity. Identifying that some customers of systems manufacturers seek business transformation through outsourcing

Global orientation and export competitive advantage: A study of Malaysian firms [Abstract]

Global orientation and export competitive advantage: A study of Malaysian firms [Abstract