Only the Brave: Product Innovation, Service Business Model Innovation, and Their Impact on Performance

Recent empirical findings concerning the performance effects of service business model innovation (servitization) and its interplay with product innovation are mixed. Using the lenses of the demand-based view on value creation and complementarity, the performance impact of two key service business models is examined: the product-oriented model and the customer-oriented model, implemented jointly with product innovation. Results indicate that the interplay between service business model innovation and product innovation results in long-term performance benefits coupled with a degree of short-term performance sacrifice. Service business model innovation in isolation from product innovation results in short-term profit gains but long-term knowledge loss and, thus, market performance decline. Our study suggests that firms need to look beyond the evidence on short-term effects in order to achieve superior performance in the long run.This is the author accepted manuscript. The final version is available from Wiley via http://dx.doi.org/10.1111/jpim.1225

Exploring the impact of stakeholder pressure on environmental management strategies at the plant level: What does industry have to do with it?

Stakeholder theory and empirical evidence confirm the positive relationship between stakeholder pressure and the implementation of environmental practices and strategies. However, the specific mechanisms and impact of selected stakeholder groups on environmental management strategies are relatively underexplored. In this paper, this shortcoming is addressed by exploring the impact of selected stakeholder groups on environmental management strategies taking the contingency factor industry into consideration (i.e., dynamic vs. static industries). Basing the arguments primarily on stakeholder theory, it is suggested that stakeholder pressures are perceived differently in plants in dynamic versus static industries. Similarly, it is suggested that the influence of stakeholder pressures on the implementation of environmental strategies is influenced by industry type. To test the proposed research model, primary survey data from 502 plants collected in the United States across multiple industries is used. Thus, this paper contributes to the sustainability operations management literature through exploring the relationship between stakeholder pressure, environmental strategy implementation and contextual factors (i.e., industry type) through hypotheses testing. Results indicate that industry type does indeed affect stakeholder pressure, and the relationship between stakeholder pressure and environmental strategy implementation. Plants situated in dynamic industries experience a significantly higher level of stakeholder pressures as opposed to plants situated in static industries across an array of environmental strategies

Customer integration and operational performance: The mediating role of information quality

Much supply chain integration literature tends to be biased towards its positive impact on operational performance. However, inconclusive results demand investigation of the mechanisms through which supply chain integration can lead to superior operational performance. The purpose of this study is to identify empirically the mediating role of information quality on the relationship between customer integration and operational performance, and the direct relationship between customer integration and operational performance. The study is based on a questionnaire sent to 228 manufacturing companies in the Republic of Ireland, and the relationships between the constructs are analyzed through regression analysis. The results indicate that information quality partially mediates the relationship between customer integration and quality, delivery and flexibility. Further, information quality was found to fully mediate the relationship between customer integration and cost

Targeting sustainable competitiveness in Croatia by implementation of “20 Keys” methodology

Throughout the current wave of regulatory reforms, several theoretical models have been proposed that call for the emergence of instruments of self-regulation under some form of state supervision as part of the demand to improve product development performances aligned with awareness of environmental needs, to help with meeting regulation and to reduce the risk of production nonconformance. “20 Keys” is one example of a mass application of a methodology for raising sustainable development and holistic approach to competitiveness in new EU member the Republic of Croatia, and therefore, the aim of this study is to observe the results of the methodology application in Croatian companies. 20 Keys is a methodology that brings an integrated set of tools aimed at increasing overall productive efficiency and quality level with simultaneous reduction of costs. As it was shown in this paper, implementation success is coincident with senior management’s active role in setting the main goals for implementation, assuring that suitable methods and tools are used, allocating resources appropriately and enabling communication within the company