Exploring innovation driven value creation in B2B service firms: The roles of the manager, employees, and customers in value creation

This study adopts the premise that innovation capability underpins a service firm's value creation ability and that management style, employee behaviors and marketing underpin its innovation capability. This study examines the role of managers and employees in the creation and delivery of superior value to customers via the firm's innovation capability. To test this premise the current study examines the role of transformational leadership (TFL) as an aspect of the service firm's management style in creating and delivering value to customers through its services. This study adopts a multi-level study, collecting data from managers, employees and customers of service firms in a Southeast-Asian country, Cambodia. The results show that a service firm's innovation capability has a positive effect on the firm's value offering (VO), the VO has a positive relationship with customer perceived value-in use (PVI), and PVI has a positive relationship with firm performance. This study also finds moderating effects of TFL on the relationship between service innovation capability and VO, and of service marketing capability on the relationship between VO and PVI respectively.

[1]  B. Bass.  LEADERSHIP AND PERFORMANCE BEYOND EXPECTATIONS , 1985 .

[2]  James C. Anderson,et al.  STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH , 1988 .

[3]  H. Liao,et al.  A MULTILEVEL INVESTIGATION OF FACTORS INFLUENCING EMPLOYEE SERVICE PERFORMANCE AND CUSTOMER OUTCOMES , 2004 .

[4]  Michael A. West,et al.  Individual, Climate, and Group Interaction Processes as Predictors of Work Team Innovation , 1995 .

[5]  Christian Homburg,et al.  On the importance of complaint handling design: a multi-level analysis of the impact in specific complaint situations , 2010 .

[6]  Shelley D. Dionne,et al.  Leading for creativity: The role of unconventional leader behavior , 2003 .

[7]  Alice M. Tybout,et al.  Designing Research for Application , 1981 .

[8]  Neil A. Morgan,et al.  The impact of product market strategy-organizational culture fit on business performance , 2011 .

[9]  M. Holbrook.  The Nature of Customer Value: An Axiology of Services in the Consumption Experience , 1994 .

[10]  K. Möller.  Role of competences in creating customer value: A value-creation logic approach , 2006 .

[11]  D. Gursoy,et al.  Employee satisfaction, customer satisfaction, and financial performance: An empirical examination , 2009 .

[12]  John R. Nevin,et al.  The Differential Effects of Exercised and Unexercised Power Sources in a Marketing Channel , 1985 .

[13]  H. Gatignon,et al.  Strategic Orientation of the Firm and New Product Performance , 1997 .

[14]  Aron O'Cass,et al.  Exploring consumer experiences with a service brand , 2004 .

[15]  Jacqueline K. Eastman,et al.  The Relationship between Status Consumption and Materialism: A Cross-Cultural Comparison of Chinese, Mexican, and American Student , 1997 .

[16]  Patricia J. Daugherty,et al.  The relationship between strategic orientation, service innovation, and performance , 2009 .

[17]  L. Ngo,et al.  Creating value offerings via operant resource-based capabilities , 2009 .

[18]  G. Hult,et al.  Innovation, Market Orientation, and Organizational Learning: An Integration and Empirical Examination , 1998 .

[19]  Moez Limayem,et al.  Understanding information systems continuance: The case of Internet-based learning technologies , 2008, Inf. Manag..

[20]  L. Gumusluoglu,et al.  Transformational Leadership, Creativity, and Organizational Innovation , 2009 .

[21]  M. V. van Engen,et al.  Transformational, transactional, and laissez-faire leadership styles: a meta-analysis comparing women and men. , 2003, Psychological bulletin.

[22]  Heiner Evanschitzky,et al.  Does the employee-customer satisfaction link hold for all employee groups? , 2007 .

[23]  P. Ellis,et al.  Market orientation and marketing practice in a developing economy , 2005 .

[24]  R. Bagozzi,et al.  On the evaluation of structural equation models , 1988 .

[25]  R. Calantone,et al.  Learning orientation, firm innovation capability, and firm performance , 2002 .

[26]  Andreas Eggert,et al.  Value-Based Differentiation in Business Relationships: Gaining and Sustaining Key Supplier Status , 2006 .

[27]  L. Ngo,et al.  Examining the Firm's Value Creation Process: A Managerial Perspective of the Firm's Value Offering Strategy and Performance , 2011 .

[28]  V. Ambrosini,et al.  Value Creation Versus Value Capture: Towards a Coherent Definition of Value in Strategy , 2000 .

[29]  J. G. Hunt,et al.  From where we sit: An assessment of transformational and charismatic leadership research. , 1999 .

[30]  John C. Narver,et al.  Market orientation, customer value, and superior performance , 1994 .

[31]  D. Teece,et al.  DYNAMIC CAPABILITIES AND STRATEGIC MANAGEMENT , 1997 .

[32]  Richard L. Priem.  A Consumer Perspective on Value Creation , 2007 .

[33]  D. Wittink,et al.  Customer satisfaction and retail sales performance: an empirical investigation , 2004 .

[34]  Irene Gil,et al.  The roles of service encounters, service value, and job satisfaction in achieving customer satisfaction in business relationships ☆ , 2008 .

[35]  Chekitan S. Dev,et al.  Market orientation and performance in service firms: role of innovation , 2003 .

[36]  Wynne W. Chin.  Issues and Opinion on Structural Equation Modeling by , 2009 .

[37]  J. J. Cronin,et al.  Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments , 2000 .

[38]  Ken G. Smith,et al.  Value Creation and Value Capture: A Multilevel Perspective , 2007 .

[39]  R. Keller,et al.  Transformational leadership, initiating structure, and substitutes for leadership: a longitudinal study of research and development project team performance. , 2006, The Journal of applied psychology.

[40]  Risto Rajala,et al.  Service Innovation Myopia? A New Recipe for Client-Provider Value Creation , 2008 .

[41]  George S. Day,et al.  Assessing Advantage: A Framework for Diagnosing Competitive Superiority , 1988 .

[42]  Richard L. Priem,et al.  Is the Resource-Based “View” a Useful Perspective for Strategic Management Research? , 2001 .

[43]  P. Papastathopoulou,et al.  An empirically‐based typology of product innovativeness for new financial services: Success and failure scenarios , 2001 .

[44]  Dawn Iacobucci,et al.  Antecedents and consequences of adaptive selling confidence and behavior: a dyadic analysis of salespeople and their customers , 2010 .

[45]  Badrinarayan Shankar Pawar,et al.  THE NATURE AND IMPLICATIONS OF CONTEXTUAL INFLUENCES ON TRANSFORMATIONAL LEADERSHIP: A CONCEPTUAL EXAMINATION , 1997 .

[46]  G. Stalk,et al.  Competing on capabilities: the new rules of corporate strategy. , 1992, Harvard business review.

[47]  Banwari Mittal,et al.  A causal model of consumer involvement , 1989 .

[48]  Chad W. Autry,et al.  Product-market strategy and the marketing capabilities of the firm: impact on market effectiveness and cash flow performance , 2009 .

[49]  Izak Benbasat,et al.  The Effects of Personalizaion and Familiarity on Trust and Adoption of Recommendation Agents , 2006, MIS Q..

[50]  Derrick E. D'Souza,et al.  Toward a Contextually Anchored Service Innovation Typology , 2009, Decis. Sci..

[51]  K. Ibeh,et al.  The drop and collect survey among industrial populations: Theory and empirical evidence , 2002 .

[52]  H. Winklhofer,et al.  Index Construction with Formative Indicators: An Alternative to Scale Development , 2001 .

[53]  Moez Limayem,et al.  How Habit Limits the Predictive Power of Intention: The Case of Information Systems Continuance , 2007, MIS Q..

[54]  W. DeSarbo,et al.  Customer Value Analysis in a Heterogeneous Market , 2001 .

[55]  Charlotte H. Mason,et al.  Market orientation, marketing capabilities, and firm performance , 2009 .

[56]  Pilar Carbonell,et al.  The impact of market characteristics and innovation speed on perceptions of positional advantage and new product performance , 2006 .

[57]  David G. Sirmon,et al.  Managing Firm Resources in Dynamic Environments to Create Value: Looking Inside the Black Box , 2007 .

[58]  G. Hult,et al.  Does market orientation matter?: a test of the relationship between positional advantage and performance , 2001 .

[59]  Liam Fahey,et al.  The resource-based view and marketing: The role of market-based assets in gaining competitive advantage , 2001 .

[60]  W. Kim,et al.  Value innovation: the strategic logic of high growth. , 1997, Harvard business review.

[61]  Mary Jo Bitner,et al.  Moving Forward and Making a Difference: Research Priorities for the Science of Service , 2010 .

[62]  Adamantios Diamantopoulos,et al.  Domestic country bias, country-of-origin effects, and consumer ethnocentrism: A multidimensional unfolding approach , 2004 .

[63]  M. Taccetta-Chapnick.  Transformational leadership. , 1996, Nursing administration quarterly.

[64]  George Baltas,et al.  Organisational innovation in SMEs , 2004 .

[65]  G. Hofstede,et al.  Culture′s Consequences: International Differences in Work-Related Values , 1980 .

[66]  G. Yukl.  An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. , 1999 .

[67]  F. Webster.  Defining the new marketing concept (Part 1) , 1994 .

[68]  D. Jung,et al.  The role of transformational leadership in enhancing organizational innovation: Hypotheses and some preliminary findings , 2003 .

[69]  L. Berry.  Cultivating service brand equity , 2000 .

[70]  H. Liao,et al.  STRATEGIC HUMAN RESOURCE MANAGEMENT IN SERVICE CONTEXT: TAKING CARE OF BUSINESS BY TAKING CARE OF EMPLOYEES AND CUSTOMERS , 2010 .

[71]  J. Steenkamp,et al.  Marketing renaissance: How research in emerging markets advances marketing science and practice , 2006 .

[72]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[73]  N. Anderson,et al.  Measuring climate for work group innovation: development and validation of the team climate inventory , 1998 .

[74]  Marko Sarstedt,et al.  An assessment of the use of partial least squares structural equation modeling in marketing research , 2012 .