New service development in high tech sectors: a decision making perspective

Many service companies active in high tech sectors have implemented largely decentralized decision architectures in their innovation processes. This is done to improve responsiveness under extremely dynamic and uncertain business conditions. As a consequence of the empowerment of decision-makers at the product management level, the success of the New Service Development (NSD) process will increasingly depend on individual product managers’ information processing and decision-making performance. The present study investigates antecedents of decision-making effectiveness in the high tech NSD process, and reports on a case study performed in the mobile telecommunication services industry. NSD project managers’ unique task conditions are articulated, and some antecedents and moderators of effective decision-making are identified in a study of four innovation projects. Findings are integrated in a theoretical framework. The study reveals the crucial role of decision-makers’ flexible use of various cognitive styles, their proactive attitude, and their capability to mentally represent innovation interfaces with the customer, the technology and the firm. Managerial implications and suggestions for further research are provided.management and organization theory ;

Transportation Policy and the Effects on Modal Choice in the EU

This study addresses the question of how trans-national regulations could stimulate environmentally friendly transportation. Effects of capacity limitations, costs and transit time requirements on the attractiveness of different containerized transportation modes are modeled for a representative freight corridor in the European Union. Multiple legislative scenarios are developed for 2010, taking into account various characteristics of road, rail and inland waterway transportation, including costs to society and environmental costs. Analysis of the scenarios reveals that under the current legislation environmentally friendly transportation modes are already very attractive, but lack sufficient capacity to deal with demand. Further legislative interventions, such as increased taxation, would only lead to increased transportation costs, and render containerized transportation less effective and more costly to society. For a more favorable modal split, it appears that important investments are to be made in dedicated cargo rail and inland waterways.Economics ;

Online Travel Service Quality: The Importance of Pre-Transaction Services

The Internet revolution has led to significant changes in the way travel agencies interact with customers. Travel websites are used to different degrees, and for a variety of combinations of pre-transaction, transaction and post-transaction services. A better understanding of how customers interact with online services will help providers improve service quality to levels that satisfy or even delight customers, and thus create loyalty. This article provides a comprehensive review of the literature on online service quality, applies the theory to online travel offerings, and reports on an empirical study of quality perceptions of pre-transaction services provided on three travel websites. Effects on customer perceived quality were measured for process and outcome dimensions of online services. Implications for the design of online travel services and suggestions for further research are formulated.Economics ;

Antecedents of Effective Decision Making: A Cognitive Approach

Decision-making effectiveness has been associated with how well managers adapt their cognitive style to task requirements. In this paper, theories regarding decision-making under uncertainty and the use of judgment and intuition are reviewed and integrated. Cognitive Continuum Theory (CCT), positing a one-dimensional continuum of cognitive styles anchored by intuition and analysis, is extended: Four fundamental decision styles are identified and evaluated for their relative effectiveness under various task conditions. Propositions are developed with respect to the relationships between decision task characteristics and the likelihood of using two cognitive systems, and with respect to potential moderators of decision-making effectiveness. The propositions are integrated into a comprehensive theoretical model. Major contributions of the study are a conceptual clarification of the distinctions between intuition, heuristics and bounded rationality on the one hand, and the assessment of the scope of various cognitive styles as well as the identification of moderators of their effectiveness on the other. Research implications and some suggestions for managerial practice are provided.Economics ;

Boost Customer Loyalty With Online Support: The Case Of Mobile Telecomms Providers

The paper explores the effect of customer satisfaction with online supporting services on loyalty to providers of an offline core service. Supporting services are provided to customers before, during or after the purchase of a tangible or intangible core product, and have the purpose of enhancing or facilitating the use of this product. The Internet has the potential to dominate all other marketing channels when it comes to the interactive and personalized communication that is considered quintessential for supporting services. Our study shows that the quality of online supporting services powerfully affects satisfaction with the provider and customer loyalty through its effect on online value and enjoyment. Managerial implications are provided.marketing ;

Antecedents of industrial brand equity: An empirical study

Industrial branding has emerged as an important issue, allowing firms to gain substantial competitive advantage, especially in markets where product commoditization and electronic procurement are on the increase. This article proposes, and empirically validates, a theoretically structured approach to measure brand equity, its antecedents and its consequences for industrial products. The model distinguishes between product and corporate brand equity, uses buyer perceived performance on the dimensions of the marketing mix as antecedents of brand equity, and relates them to re-purchase and loyalty intentions.Economics ;