Journal of Business & Industrial Marketing

Gunther Kucza; Heiko Gebauer

2011 Journal of Business & Industrial Marketing

doi: 10.1108/08858621111162271

Purpose – The article aims to investigate how product manufacturing firms can configure their global service approach. Design/methodology/approach – A qualitative, multi‐case research design was employed. Findings – The following four global service approaches could be identified: integrated and ethnocentric; integrated and polycentric; separated and polycentric; and separated and geocentric. Research limitations/implications – The research findings are limited in generalizability because of the qualitative research approach. Practical implications – Exploring global forms of and supply chain configurations for services supports the efforts of manufacturing firms in developing new service‐based and relationship‐based value propositions. Originality/value – The study contributes to the debate on integrating versus separating the service organization. It offers a complementary explanation on integrating and separating the service business, through a differentiation into central and local (market) organizations.

Christian Kowalkowski

2011 Journal of Business & Industrial Marketing

doi: 10.1108/08858621111162280

Purpose – This article aims to introduce the service function concept, as well as why and how it can be a useful concept for addressing service management challenges in industrial firms. Design/methodology/approach – Two in‐depth case studies of global industrial firms enabled a thorough understanding of the roles of the service function entities and interdependencies between them. Findings – Although the service organization is most likely the key entity, it is only one part of the service function; other organizational entities are to be seen as part‐time service functions. Research limitations/implications – A finer‐grained conceptualization would enable a better understanding of the front‐ and back‐office entities involved in the service processes. Practical implications – The concept can be useful when communicating the importance of services and the inter‐relatedness between the service organization and other parts of the firm, which generates a better internal understanding of the service processes. The alignment between service offering and organization can be elaborated by mapping where service development, sales, and production take place, what the ideal configuration would be, and the roles played by different parts of the service function. Originality/value – The service function is a novel concept and is particularly relevant for industrial firms that offer services. It highlights the fact that it is erroneous to equate services with the activities of the service organization. Instead, a more holistic approach to the management of service offerings is needed.

Pekka Töytäri; Thomas Brashear Alejandro; Petri Parvinen; Ilmari Ollila; Nora Rosendahl

2011 Journal of Business & Industrial Marketing

doi: 10.1108/08858621111162299

Purpose – Increasing pressure to reduce costs and skepticism of promised value‐added are forcing suppliers to produce tangible proof of the monetary value they create for customers. The academic literature on the practical activities related to value‐based selling remains sparse. This paper aims to bridge the gap between the abundant theoretical customer value frameworks and implementation practices to create a practical foundation for value‐based sales activities in firms that aim to become value creators. Design/methodology/approach – Based on two case studies, the authors map the best practices in customer value quantification from the point of view of industrial customers, and study value‐based sales processes to uncover the value‐based sales activities for implementing and profiting from customer value. Findings – The results suggest a customer‐focused sales process that centers on creating value, quantifying the value created, and creating a situation where customer and supplier maximize their utility through value sharing. Research limitations/implications – The generalizability of the findings is limited to the industrial and service selling context. Practical implications – Successful industrial and service requires tangible proof and evidence of the value and utility of the suppliers' business impact on the customer's operation. The paper aims to contribute to the value quantification knowledge and practices. Originality/value – The academic literature on the practical activities related to value‐based selling remains sparse, while the importance of the value quantification knowledge and value selling process is growing rapidly.

Amir Albadvi; Monireh Hosseini

2011 Journal of Business & Industrial Marketing

doi: 10.1108/08858621111162307

Purpose – This paper's main purpose is to provide a systematic approach for mapping the value exchange in B2B relationship marketing. This approach affords a preliminary analysis in order to distinguish business customers' different value dimensions (tangibles and intangibles) and to set sights on determining suitable metrics to evaluate and quantify the value of each customer. Design/methodology/approach – The paper uses a combination of qualitative research approaches, namely an exploratory case study, in‐depth interviews, and consensus expert opinion. The empirical study took place over three months to maximize the proposed approach's expediency in the practitioners' B2B environment and to increase the validity of the research findings. Findings – In addition to developing a new framework originating in the value network approach for mapping, modeling and analyzing business customers' value network (BCVN), the findings posit a proposed systematic approach for practitioners and marketing scholars to scrutinize the multi‐dimension values of business relationship marketing. Practical implications – For companies and their business customers alike, the benefits of the systematic approach proposed in this paper are an efficient analytical system giving an opportunity to B2B marketers and managers to understand their business customers' network in detail. Originality/value – The implicit concept of maximizing customer lifetime value within the business customers' network appeals for an applied approach to better understand and analyze the real value of business customers to retain them.

Danny Pimentel Claro; Priscila Borin de Oliveira Claro

2011 Journal of Business & Industrial Marketing

doi: 10.1108/08858621111162316

Purpose – This study aims to assess the moderating effect of the business network on the effects of between relational behavior and the effects of transaction‐specific investments on joint actions. Design/methodology/approach – The study was a survey based field study designed using theoretical support from marketing channels, transaction cost economics and network perspectives. Findings – The results show the importance of relational behavior and the network in coordinating joint actions, and this has relevant managerial implications for the coordination of a collaborative relationship. The characteristics of the relationship, its length as well as the size of each partner affect the collaborative efforts of the partners. Practical implications – Firms and managers should understand not only the dyadic relationships they are in but also the network structure. Dyadic characteristics affect collaboration, while the network also has effects on the collaboration of partners in vulnerable positions. Originality/value – The paper points out the role of the network as a countervailing safeguard for dyadic TSIs and network stability. Dyadic relationships are supported by the network.

Valter Afonso Vieira; Plinio R.R. Monteiro; Ricardo Teixeira Veiga

2011 Journal of Business & Industrial Marketing

doi: 10.1108/08858621111162325

Purpose – The purpose of this paper is to extend the scope of relationship marketing research in a service and developing market context. This is achieved through the development and testing of a theoretical model including antecedents (quality, opportunistic behavior and switching cost), mediators (satisfaction, trust and commitment) and consequences (propensity to maintain, cooperation and communication). Design/methodology/approach – The study comprises data collected from a range of service firms in a national survey conducted in a Brazilian service provider. The authors sent a cover letter, accompanied by an electronic questionnaire, to suppliers of a tourism company. Confirmatory factor analysis and partial least squares were used to test the model. Findings – The results show that trust and commitment have strong effects on the final outcome variables of propensity to maintain, cooperation and communication. Trust mediated two of the antecedents, i.e. transaction quality and opportunistic behavior. Commitment only mediated trust on the final outcomes. Practical implications – Managers of supply relationships are encouraged to develop trust to limit potential negative aspects of the relationship. Combined with trust, commitment is the second half of the two key relationship drivers and should also be fostered. Originality/value – The perspective of the supplier is a new perspective on the effects of trust and commitment. Contextually, a service provider in an emerging market, Brazil, provides unique extensions to the existing literature.

Sreedhar Madhavaram; Vishag Badrinarayanan; Elad Granot

2011 Journal of Business & Industrial Marketing

doi: 10.1108/08858621111162334

Purpose – This paper aims to attempt to develop an integrative theoretical framework that approaches global industrial marketing from a managerial cognition perspective. Design/methodology/approach – Drawing from the managerial cognition research, business strategy research, and international business research, this paper develops a theoretical framework that is relevant to global industrial marketing. Findings – Global industrial marketing research has much to gain from the managerial cognition literature. The framework developed in this article presents relevant managerial cognition variables, their individual and firm level antecedents, and desirable outcomes. Research limitations/implications – The framework presented in this paper provides strong theoretical foundation for further theory development in global industrial marketing research and managerial cognition research. However, given the conceptual nature of our research, empirical scrutiny and further conceptual and empirical research are required. Originality/value – Given the growing importance of global industrial marketing, the authors hope that this article provides a theoretical foundation for future research. For practitioners, the framework provides a useful starting point for evaluating managerial cognition in their firms and effective usage of the managerial cognition concept.

Rajshekhar (Raj) G. Javalgi; Patricia Todd; Elad Granot

2011 Journal of Business & Industrial Marketing

doi: 10.1108/08858621111162343

Purpose – The study aims to examine the effect of market orientation on the international performance of Indian SMEs in the business‐to‐business market; assess the potential moderating effect of environmental uncertainty, along with market orientation, on SMEs' performance; and discuss implications to guide SME owners/managers in their efforts to successfully expand internationally in turbulent markets. Design/methodology/approach – Surveys were sent to a random cross‐sectional industry sample of SMEs located in India. The data consisted of 150 responses. Findings – Market orientation and international orientation are positively related to export performance and the relationship between the market orientation and international performance of Indian SMEs is moderated by market turbulence. Research limitations/implications – The data were collected at a single point in time, and therefore do not allow the determination of cause and effect or the impact of changes over time. Data were collected with a reliance on self‐reports for all of the research variables. Practical implications – The positive relationship between market orientation, international orientation, and the degree of internationalization of the firm would suggest that the upper management of Indian SMEs should place a priority on promoting behaviors consistent with a positive international orientation, especially in turbulent markets. Originality/value – Studies focused on market orientation have been done primarily in the context of advanced economies. The significant economic contribution of SMEs is well understood, but their business practices in emerging economies have not been studied extensively. This study extends the literature concerning factors that impact business success in an important emerging market such as India.