International Journal of Business Environment (21 papers in press)
Assessing the financial aptitude of industrial firms to implement servitized earnings models
by Bart Kamp
Abstract: Servitization research covers a large variety of aspects related to novel earning models, like pay-per-use schemes or other outcome-oriented charging modalities. However, it may overlook aspects related to bookkeeping and financing such operations. The article introduces the concept of financial aptitude to hypothesize under which circumstances industrial firms are more likely to introduce servitized earnings models or not. It builds upon insights from management reporting an financialization theories for that purpose. It postulates that activity-based cost accounting and interaction with organizations that specialize in the financing and/or managing of industrial assets raise the propensity to take up servitized earnings models.
Keywords: Servitization; financialization; business models; accounting; asset-based financing; life cycle financing.
Effect of perceived value, risk, attitude and environmental consciousness on the purchase intention
by Josefer De Lima Souza, Vilmar Antonio Gonçalves Tondolo, Aléssio Bessa Sarquis, André Andrade Longaray, Rosana Da Rosa Portella Tondolo, Larissa Martinatto Da Costa
Abstract: The study analyzed the effect of perceived value, risk, attitude and environmental consciousness on the purchase intention of university students for remanufactured computers. This is a cross-sectional quantitative study. Data were collected by questionnaire; 241 students from different institutions of higher education participated. The main analysis techniques used were Pearson correlation analysis and multiple regression modeling. The results showed that there is a strong association between the constructs Purchase Intention and Consumer Attitude and a moderate association with Perceived Value. The results of the regression analysis indicate that the constructs Consumer Attitude, Perceived Value, and Risk predict 66.2% of the intention to purchase remanufactured computers. The study contribute to the literature by analyzing several constructs related to the purchase intention of consumers of remanufactured computers and giving a social direction to the study of remanufacturing
Keywords: environmental consciousness; perceived value; purchase intention; perceived risk; remanufactured computer.
Manufacturing Environment and Economic Growth in South Africa: Evidence from Fourier Toda Yamamoto causality test
by Andisheh Saliminezhad, Pejman Bahramian
Abstract: This study aims to bring into account the dynamic impact of business constraints in the manufacturing sector on economic growth for South Africa during the period 19872016. To this end, we use the so-called manufacturing environment index, and we perform a causality analysis through the application of the conventional Toda-Yamamoto method. However, we have shown that the data encompasses the structural breaks. Hence, the standard causality test is prone to misspecifications. Thereby, we apply the newly Fourier Toda-Yamamoto method which accounts for structural shifts in a causality analysis. In contrast to the no evidence of causation detected using the traditional approach, the results of Fourier Toda-Yamamoto suggest a unidirectional Granger causality running from manufacturing environment index to economic growth. Our findings highlight the importance of survey indicators in the assessment of economic development policies. Moreover, it emphasises on covering the possible structural breaks to deliver more reliable inference.
Keywords: South African manufacturing; Fourier Toda-Yamamoto method; economic growth; South Africa.
Effect of Consumer Innovation Process on Green Consumption Behavior: An Application of Planned Behavior Theory
by Bagher Asgarnezhad Nouri, Parisa Emkani
Abstract: The purpose of this study is to applying the planned behavior theory in order to investigate the effects of consumer innovation process on green consumption behavior among young consumers in Iran. The population includes the students in universities of Ardabil province in Iran. Sample size is determined according to Morgans table which equals 379 and the participants are selected by convenience sampling method. Standard questionnaire was used for data collection. Data analysis is done by partial least squares with Smart PLS. Results showed that consumers innovation has positive effects on attitude, observed behavior control and mental norms of the consumers compared to the intention for green consumption. In addition, consumers attitude has positive effects on mental norms and the intention for green consumption. Intention for green consumption is also a good predictive for green consumption behavior. However, the effect of attitude and mental norms on intention for green consumption was not confirmed.
Keywords: Green Marketing; Green Consumption; Theory of Planned Behavior; Consumer Innovation.
Procrastination, its Antecedents and its Organizational Outcomes among Employees in the Public Sector in Istanbul
by Elif Bilginoğlu, Murat Yalçıntaş
Abstract: This study investigates the phenomenon of the tendency to procrastinate with its three triggers: Time management, perfectionism, and fear of failure as well as its organizational outcomes which are higher job stress and lower job satisfaction. Parametric tests and path analysis were performed to analyze the relationship between the variables in the model. The results revealed that poor time management (time wasters and deficient time attitude), discrepancy and fear of failure are causes of procrastination in organizations and the employees, who procrastinate, report a higher job stress and a lower job satisfaction.
Keywords: Procrastination; time management; fear of failure; job stress; job satisfaction.
Value Chain Mapping for Tourism Intermediation
by Asunción Fernández-Villarán, Ainara Rodríguez-Zulaica, Ricardo Pastor
Abstract: The purpose of this paper is to analyse the theoretical and practical implications of the use of the value chain in tourism intermediation, examining its current configuration, with particular emphasis on the emergence of new net-based agents. Inspired by the conceptual discussion on service logic, service-dominant logic, and consumer dominant logic, we focus on the trip cycle to map the value chain of tourism intermediation. The paper is exploratory. It presents and discusses a conceptual model and suggests the implications for research and practice. We hope that it will offer a better understanding of the current situation of tourism intermediation through its value chain based on customer dominance. It stresses the importance of understanding customer logic and emphasises the presence of providers in the customer ecosystem.
Keywords: Customer ecosystem; Value chain; Tourism intermediation; Trip cycle; services.
The Value Relevance of Quantitative and Qualitative Environmental Disclosure of Polluting Companies in India: A Static and Dynamic Panel Data Evidence
by G. Ezhilarasi, Kailash Kabra
Abstract: This paper examines the value relevance of quantitative and qualitative environmental disclosure of 145 polluting companies' in India. Environmental disclosure is measured by a checklist of items based on Global Reporting Initiative guidelines as well as environmental regulations prevailing in India. Subsequently, the disclosure scores are drawn individually by using content analysis of annual reports for a period of nine years i.e., from 2009-10 to 2017-18. Employing static and dynamic panel data regression method, the study finds both quantitative as well as qualitative environmental disclosure plays an important role in enhancing the market value and allows the firm to differentiate it from others. Further, the study finds investment in research and development (R&D) has a positive impact on the financial performance of a company. However, the study finds a negative association between the interaction effect of R&D expenditure with environmental disclosure and the financial performance of a firm.
Keywords: Environmental Disclosure; Financial Performance; Research and Development Expenditure; Global Reporting Initiative; Polluting Industries; Annual Reports and Content Analysis.
A source of novelty and/or absurdity: The paradoxes of management
by Miguel Pina e Cunha, Rebecca Bednarek
Abstract: This paper explores paradox, a way of seeing organizations that emphasizes interdependence,
opposition and persistence, as both a source of novelty and absurdity. Paradoxes are
processes with a dual potential for organizational harm or good, depending on the way they
are framed and tackled. We explore this dual side of paradox and discuss some of its
implications for the management of organizations.
Keywords: Paradox; organization; novelty; absurdity.
STRATEGIC FLEXIBILITY, STRATEGIC LEADERSHIP AND BUSINESS SUSTAINABILITY NEXUS
by Chijioke Nwachukwu, Hieu Minh Vu
Abstract: Abstract: Strategic leadership promote organizational strategic ?exibility and enhance business sustainability. Drawing on the theoretical lens of dynamic capability and contingency theory, a framework of hypotheses is established that focuses on strategic flexibility, strategic leadership and its implications on business sustainability. This research used surveys collected from microfinance banks operating in Nigeria. The results show that strategic flexibility and strategic leadership have a significant influence on business sustainability. Also, strategic flexibility and strategic leadership significantly affect business sustainability indicators of economic, social, environmental and innovation performance. Finally, we found that strategic leadership moderate the effect of strategic ?exibility on business sustainability and its indicators. Our findings clarify the role that organisational capabilities (strategic flexibility and strategic leadership) play in enhancing business sustainability, particularly in the emerging market context.
Keywords: strategic flexibility; business sustainability; strategic leadership; innovation performance.
Review of Twenty-Eight Years of Services Redesign Research In Search of a Framework to Balance Capacity and Demand in Services Supply Chains
by Renu Rajani, Githa Heggde
Abstract: This paper presents a systematic review of research on Service Redesign Strategies (SRS) to manage capacity and demand in Services Supply Chains (SSCs). 178 papers were analysed after four level of filtering of 6398 records of citation and reading of 700 papers. The review context includes status and progress of research across both goods and services; cross-geographies; all elements various research methods. Research efforts highlight increased use of SRS in SSCs, with focus on few methods use of lean, agile, automation, and matching SC to customer demand, and need for research focus on additional themes. Research gaps are highlighted in Asia, Australia/NZ, Africa and UK regions, in evolving network-based SC structures. There is need to integrate research from services marketing, manufacturing SCM, industrial engineering, and operations management to borrow approaches for SRS in SSCs. This study proposes a value delivery framework to mitigate SC Risks (SCRs) and improve company performance.
Keywords: Supply Chain management; SCM; Services SCM; Capacity Management; Demand Management; Process Redesign; Service Redesign Strategy; SC Risks; Company Performance.
Is KAM Focus Driving FMCG Manufacturers Towards an Imbalanced Customer Portfolio Shape?
by Pedro Rubio, Maria Victoria Labajo, Maria Eugenia Fabra
Abstract: This paper seeks to address the issue of potential risks for fast-moving consumer goods (FMCG) manufacturers arising from an excessive focus on key accounts. In a context of increasing customer concentration, there is a need for a deeper understanding of the Key Account Management phenomenons consequences.
Our conceptual model, which uses structural equations modelling (SEM), measures and confirms, that the focus of FMCG manufacturers on KAM effectiveness also implies future risks for them due to an imbalance in the customer portfolio.
Keywords: Key Account Management; KAM Benefits; Shape of Customer Portfolio; KAM Risks.
Influence of network partners on SMEs' innovation activities
by Susanne Durst, Serdal Temel, Christoph Hinteregger
Abstract: Even though previous research has repeatedly highlighted the critical role of network partners on innovation activities, it lacks a dedicated discussion about small and medium-sized enterprises (SMEs) and their approaches to network partners for realizing innovation initiatives. This study responds to this situation and, drawing upon a data set from 1,315 Turkish SMEs, empirically conceptualizes a typology of strategic types of networkers and explores the influence of these strategic types on marketing and product innovation as well as process and organizational innovation in SMEs. Results show that apart from supply-chain networkers, there are significant positive relationships between all types of network collaborations and SMEs innovation activities. Additionally, increasing the breadth and depth of network collaboration with external partners will strengthen the positive effects of SMEs innovation activities even more.
Keywords: innovation; network partners; SMEs; marketing innovation; process innovation; organizational innovation; typology.
A factorial decomposition analysis of the rate of work accidents in Europe during 2008-2015: Analysis of the relevance of work safety mechanisms and economic performance
by Gimena Sánchez
Abstract: This study evaluates the connection between economic productivity (GDP per worker) and work accident rates in Europe, while acknowledging the role of work safety controls operationalized via labor inspections and the inspectorate at country level. The results of the factorial decomposition model applied on a sample of 24 European countries during 2008-2015 reveal that, at country level, economic activity and work accidents follow a pro-cyclical trajectory: work accident rates fall when the economy shrinks, while in periods of economic growth the variation in the rate of work accidents slows down or stagnates. The findings also indicate that the positive effect of safety controls (inspections and inspectors) on work accidents is conditional on the state of the economy, which suggests the need to introduce reforms that improve the functioning of the work-safety system in Europe.
Keywords: Labor productivity; work accidents rate; economic cycle; work inspections; Europe.
Sector productivity and geographical diversification as export enhancing factors: the case of Portugal
by Nuno André
Abstract: An investigation of the relationship between productivity growth and exporting is vital to understand whether productivity-enhancing policies or those of export promotion are more adequate for economic progress. This article considers the relationship between exporting and productivity for thirty-two economic activities, in Portugal, from 2005 to 2017. It is found that economic activities with high productivity levels are systematically likelier to register higher export levels than less productive ones. This result corroborates the self-selection theory. Furthermore, the effect of geographical diversification on the volume of exports is tested, as well as the presence of diminishing returns in this association. For both cases significant results are found, suggesting that economic activities enlisting more export destinations tend to possess higher export volumes, but also that after a certain threshold the negative effects of geographical diversification offset the associated positive benefits.
Keywords: Economic activities; Exporting; Productivity; Self-selection; Geographical diversification; Diminishing returns; Portugal.
Special Issue on: ICBS 2018 Advancements in Industrial Marketing Exploring Product-Service Innovation Strategies for Sustainability
Limited evidence for servitization in UK Publishing: an empirical analysis
by Alexander Kharlamov, Glenn Parry
Abstract: Servitization is a strategic transition of firms towards the creation of additional value through services. In this study we adopt a data-driven approach and assume that company activity descriptions are representative of their activity and partly reflect the adopted strategy. We hypothesise that if there is a trend of traditional publishing firms adopting servitization strategies, this should emerge from textual analysis of company descriptors. Relying on data-driven analysis of publicly available company information for UK and Ireland, we find no significant evidence of strategic diversity as a single group emerges from diverse clustering methods. Our results show either that the publicly available dataset is not representative of the publishing strategy in industry or that there is no real evidence of servitization in the publishing sector. Implications for theory and for industry are discussed.
Keywords: Servitization; publishing; manufacturing; service; servitization; product-service systems; value added; unsupervised.
Place leadership in emerging product-service systems
by Marco Bellandi, Erica Santini
Abstract: Some manufacturing systems are entering trajectories of territorial servitization. In such cases, traditional business actors might be replaced by new ones, such as the providers of knowledge intensive business services. The dis-alignment of interests between traditional firms and the new entrants increases the risks of high transaction costs. Here, an appropriate place leadership would play an important role and trigger territorial servitization trajectories. This paper proposes a conceptual framework that seeks to unveil how different types of place leadership could support territorial servitization processes and contribute to achieve sustainable (effective) product-service system configurations. An open place leadership would support strong territorial servitization opportunities and coordinated solutions among conflictual views and interests. If instead place leadership is weak or based on a closed club of private interests, weak or unstable trajectories amid lock-ins and impending decline become more probable.
Keywords: territorial servitization; place leadership; local productive systems; lock-in condition; rerouting.
Measuring the impact of digital capabilities on product-service innovation in Spanish industries
by Alberto De La Calle, Inmaculada Freije, Jose V. Ugarte, Miguel A. Larrinaga
Abstract: Digital capabilities play a relevant role in servitisation strategy for manufacturing companies. Using logistic regression models with a sample of more than 2000 Spanish manufacturing companies, this paper studies the relationship between digital capabilities and servitisation within Spanish industries. This research considers both manufacturing and connecting digital capabilities, along with, training and software skills. The findings can be used by companies and policy makers to boost servitisation. Advanced Manufacturing Technologies (AMT) are not found to have a positive or significant impact on servitising, except when combined with the use of digital capabilities for Internet-based marketing. Significant space also exists for improvements in staff training in information and communication technologies (ICTs) because of their potential contribution to product-service innovation. Finally, the relationship between firm size and servitisation indicated by previous research is confirmed.
Keywords: product-service innovation; servitisation; digital capabilities; Spanish manufacturing companies; logistic regression.
Avatar Journey Mapping For Manufacturing Firms To Reveal Smart-Service Opportunities Over The Product Life-Cycle
by Shaun West, Oliver Stoll, Petra Müller-Csernetzky
Abstract: This paper presents a visual approach to supporting the development of new service opportunities that may have been overlooked in the original product service system design. The design of PSS increases in complexity compared to traditional product design/development since to create value in use, designers have to consider the usage of the product (Rapaccini, West & Mueller- Csernetzky, 2017). Using visual tools provides a common framework for discussions and service discovery (Stickdorn et al., 2018), in particular, identifying the intangible aspects of services. Three use cases were considered over their product life-cycles for the basis of the research: i) glass-processing equipment, ii) printers, and iii) aircraft. The combination of avatars and the journey mapping over different phases of the life-cycle provided a visual tool that revealed new services and provided a common platform for discussions.
Keywords: Product-service system; Innovation; Tools; Digitalization; Servitization.
Exploring 3D printing technology in the context of product-service innovation: case study of a business venture in south of France
by Josip Marić
Abstract: This study explores the novelty of 3D printing technology in the context of product-service innovation. 3D printing, officially known as additive manufacturing, is one of the flagship technologies within the new industrial revolution and Industry 4.0 scholar discourse. However, there is an evident lack of empirical studies that explore the characteristics of consumer-level 3D printing technology in the contexts of servitization of manufacturing, digital transformations and business model innovations. This literature gap motivated our study where we question how entrepreneurs develop their business strategies for challenging 3D printing market, whilst also discussing the servitization features of 3D printing technology. Our findings are drawn from a single case study of a company that pioneered 3D printing in south of France, with a mixture of 3D printing products and services as their core business portfolio. Contributions of this study are directed towards scholar discussions dealing with the consumer segment of 3D printing market, servitization theory, as well as providing useful insights for stakeholders interested in business ventures with 3D printing technology.
Keywords: additive manufacturing; 3D printing; digitalization; servitization; product-service innovation; case study.
Adjusting customer journey mapping for application in industrial product-service systems
by Shaun West, Oliver Stoll, Marika Østerland, Felix Keiderling, Christian Kowalkowski
Abstract: The sales process and the project execution in industrial product-service systems is often complicated; particularly for capital equipment with a long-operational life where there are different actors responsible for the different transactions over the whole life cycle. This is often further complicated as the supplier is not directly selling to the 'end customer'. The introduction of digital solutions around the product-service system bring an additional channel for interactions.
This paper describes how customer journey mapping can support building relationships in a B2B environment for both sales and execution over the operational life of equipment and examine both the products and the services offered throughout the entire journey. Three industrial B2B cases from different segments were investigated. Each journey was mapped, and personas or empathy maps created for each of the key actors. From the cross-case analysis and customer journey mapping a process is derived that provides improved support for industrial firms with customer journey mapping.
Keywords: Customer Journey; Servitization; Product Service Systems; B2B.
Cloud computing for SMEs, servitization through contracts
by Sarfaraz Ghulam Muhammad
Abstract: Cloud computing is a web-based technology available on the internet. In recent years, the internet has enabled several technologies including internet of things (IoT) and cloud applications. Cloud computing is one of those technologies that applies the concept of business servitization, whereby delivered services are derived from physical infrastructures owned by service providers. Cloud computing has several uses in businesses operating at different scale. This paper discusses the application of the cloud in small businesses with relatively small IT setups and infrastructures and their access to state-of-the-art services. It focuses on small and medium sized enterprises (SMEs) and how their requirements for various services and applications are addressed by applications hosted on the cloud. Moreover, this paper addresses the role of cloud service and the concept of servitization in cloud computing and highlights the role of governance and contracts as part of the process of service delivery.
Keywords: Cloud Computing; Servitization; SMEs; Cloud Service Provision; IT governance; Cloud governance.