What is the Predictive Power of Market Orientation?

The majority of studies on market orientation claim that compellingevidence exists that market orientation has a positive effect onbusiness performance. This study takes a closer look at forty studiesthat have addressed the relationship between market orientation andbusiness performance in the past thirteen years. The results show thatthere is no unequivocal evidence as to if and when market orientationhas a positive impact on business performance. There is however someunequivocal proof, albeit limited, on how market orientationinfluences business performance. These findings are unsettling foracademics and managers because market orientation is the foundation ofmarketing strategy.market orientation;predictive validity;business performance

Further Thoughts on CRM

Skepticism and disappointment have replaced the initialenthusiasm about CRM. The disappointing results ofCRM-projects are often related to difficulties thatmanagers encounter in embedding CRM in their strategyand organization structure. In this article we presenta classification scheme on how CRM can be strategicallyembedded in organizations using the value disciplinesof Treacy and Wiersema. We use the findings from threecase studies to illustrate our classification. Based onthese case studies and interviews with managers wedistinguish between strategic and tactical CRM, andderive important issues that managers should considerbefore successfully implementing CRM.customer relationship management;marketing strategy;marketing performance

The Mediating Effect of NPD-Activities and NPD-Performance on the Relationship between Market Orientation and Organizational Performance

Empirical research has demonstrated that a market orientation has in general a positive effect on organizational performance. The potential benefits of a market orientation have, however, not been realized because academics and practitioners do not yet understand the modus operandi that transform market orientation into superior organizational performance. Recent research has demonstrated that the proficiency in new product development (NPD) activities might be the key in the conversion of market orientation into superior NPD-performance, and hence, organizational performance. This study is designed to test a set of hypotheses related to the interrelationships among market orientation, the proficiency in NPD-activities, NPD-performance, and organizational performance. The results from a sample of 126 manufacturing firms in the Netherlands present evidence for the mediating role of the proficiency in several NPD-activities and NPD-performance in the relationship between market orientation and organizational performance. The fact that this mediating role has been found thus provides a better understanding of how market-oriented behaviors are transformed into superior value for customers.performance evaluation;innovation;statistical analysis;market orientation;studies

The Effects of Self-Reinforcing Mechanisms on Firm Performance

This study empirically investigates the influence of the market-bound (i.e., interaction and network effects) on the firm-bound (i.e., scale and learning effects) self-reinforcing mechanisms, and their combined effect on product and organizational performance. The findings from a sample of 257 manufacturing firms reveal that interaction effects have a positive effect on network effects. Network effects have a positive impact on the potential for firms to realize scale and learning effects, which in turn, is positively related to their actual realization of these effects. The actual realization of scale and learning effects has a positive effect on product performance, which in turn positively influences organizational performance. These effects are robust across industries and provide ample opportunities for future research.management;economics;increasing returns;self-reinforcing mechanisms

What is the Predictive Power of Market Orientation?

The majority of studies on market orientation claim that compelling evidence exists that market orientation has a positive effect on business performance. This study takes a closer look at forty studies that have addressed the relationship between market orientation and business performance in the past thirteen years. The results show that there is no unequivocal evidence as to if and when market orientation has a positive impact on business performance. There is however some unequivocal proof, albeit limited, on how market orientation influences business performance. These findings are unsettling for academics and managers because market orientation is the foundation of marketing strategy

A Managerial Perspective on the Logic of Increasing Returns

The focus of this study is on the challenges faced by managers in effectively dealing with the new management logic of increasing returns as the information and knowledge intensity of their transformation processes rises. Dealing with these challenges is especially relevant for companies currently making the transition from capital and physical labor intensive transformation processes (old economy) to information and knowledge intensive transformation processes (new economy). For these companies, this study provides a definition of increasing returns, explains the sources of increasing returns and develops tools for monitoring the realization of increasing returns. These tools are applied at the Randstad Group, a leading temporary employment agency based in the Netherlands, currently making the transition from the old to the new economy. The study concludes with a discussion of the management implications of the new logic of increasing returns and suggestions for further research.management;economics;interaction effects;increasing returns;network effects

The impact of design debugging on new product development speed : the significance of improvisational and trial-and-error learning

Investigating the antecedents of cycle time reduction is a continuing concern within new product development (NPD) research (Chen et al., 2010; Cankurtaran et al., 2013). A number of researchers have reported the effects of team learning on NPD speed (Dayan and Di Benedetto, 2008; Cankurtaran et al., 2013), while others relate learning to overall team performance (Magni et al., 2013). However, few studies have systematically researched the effects of improvisation and trial-and-error learning on NPD cycle time. The aim of this study is to shine new light on NPD learning and cycle time reduction through an examination of the effects of improvisation and trial-and-error. To that end, this study conceptualizes and tests the settings wherein improvisation and trial-and-error might contribute or hinder NPD cycle time reduction. The authors develop hypothesis to investigate the effects of improvisation - and trial-and-error learning on NPD cycle time. Based on a review of the literature and in-depth interviews measures are defined to approximate improvisation and trial-and-error using secondary data from over 200 projects with absolute objective measures of cycle time. In addition, 1000s archival records of debugging incidents and engineering changes are used to approximate the impact of improvisation and trial-and-error. To estimate their impact on cycle time a learning curve model is developed (Argote, 2012) which offers an effective way of identifying the conditions that drive cycle time learning and performance (Wiersma, 2007). Based on this model the hypotheses are tested. The findings suggest that improvisation and trial-and-error contribute to cycle time learning in the prototyping and pilot phases only, and that they hinder learning during later stages in the NPD process. These findings contribute to the extant literature by providing an important new organizational learning perspective on NPD speed. The study contributes to practice by relating firms’ improvisation and trial-and-error practices to learning and speed performance

The Effect of Members' Satisfaction with a Virtual Community on Member Participation

The authors develop a four-dimensional scale to measure members'satisfaction with virtual communities. The dimensions consist ofmembers' satisfaction with member-member interactions,organizer-member interactions, organizer-community interactions, andthe community's site. Using a sample of 3605 members of a virtualcommunity the authors investigate the effect of each satisfactiondimension on member participation and the moderating effect ofmembership length on the links between the satisfaction dimensions andmember particip ation. The results reveal that satisfaction withmember-member interactions, organizer-member interactions and thecommunity's site have positive effects on member participation.Satisfaction with organizer-community interactions has no effect onmember participation. The findings also show that the linkages betweenthe satisfaction dimensions and member participation are moderated bymembership length.satisfaction;internet;virtual community;consumers;relationship age

Emotional paths leading to opportunity desirability and feasibility beliefs through controllability

This is the final version. Available from Sage Publications via the DOI in this record.Extant studies promote opportunity belief as an antecedent of entrepreneurial action. However, we do not sufficiently understand how beliefs about the desirability and feasibility of an entrepreneurial opportunity are formed. We argue that desirability and feasibility are related but distinct micro-foundations of entrepreneurial action formed through different cognitive-emotional mechanisms. Drawing on the appraisal tendency framework, we investigate the indirect effects of three basic emotions (anger, fear and happiness) on desirability and feasibility through the appraisal tendency of controllability. In an experimental study (N= 191), we find evidence for the distinctiveness and interconnectedness of desirability and feasibility beliefs. In addition, our findings show that desirability can be predicted by emotions through controllability, but we cannot predict feasibility through the same appraisal process. Our study seeks insights concerning how desirability and feasibility beliefs regarding an entrepreneurial opportunity are distinctively formed based on the inner cognitive and emotional processes of individuals

Lead users' new product-related positive word-of-mouth

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