Does market orientation impede breakthrough innovation? To date, researchers have presented opposing arguments with respect to this important issue. To address this controversy, the authors conceptualize and empirically test a model that links different types of strategic orientations and market forces, through organizational learning, to breakthrough innovations and firm performance. The results show that a market orientation facilitates innovations that use advanced technology and offer greater benefits to mainstream customers (i.e., technology-based innovations) but inhibits innovations that target emerging market segments (i.e., market-based innovations). A technology orientation is beneficial to technology-based innovations but has no impact on market-based innovations, and an entrepreneurial orientation facilitates both types of breakthroughs. Different market forces (demand uncertainty, technology turbulence, and competitive intensity) exert significant influence on technology- and market-based innovations, and these two types of innovations affect firm performance differently. The results have significant implications for firm strategies to facilitate product innovations and achieve competitive advantages.

Emergent perspectives in marketing highlight new opportunities for co-opting customers as a means to define and co-create value through their participation. This study delineates and empirically tests hypotheses regarding the effects of customer participation (CP) on value creation and satisfaction for both customers and employees with different cultural value orientations in the context of professional financial services. Using data collected from 349 pairs of customers and service employees in two national groups (Hong Kong and United States) of a global financial institution, this study examines how (1) CP drives performance outcomes (i.e., customer satisfaction, employee job satisfaction, and employee job performance) through the creation of economic and relational values and (2) the effects of CP on value creation depend on participants' cultural value orientations. Promoting CP could be a double-edged sword for firms:It enhances customers' economic value attainment and strengthens the relational bond between customers and employees, but it also increases employees' job stress and hampers their job satisfaction. Moreover, the effects of CP on value creation depend on the cultural values of both customers and service employees; this result implies that arranging customers and service employees with "matched" cultural value orientations could facilitate the creation of value through CP.

This study extends the existing satisfaction-trust-loyalty paradigm to investigate how customers' affectionate ties with firms (customer-firm affection)-in particular, the components of intimacy and passion-affect customer loyalty in services. In a bilevel model, the authors consider customer-staff and customer-firm interactions in parallel. Through a netnography study and survey research in two service contexts, they confirm (1) the salience of intimacy and passion as two underrecognized components of customer-firm affection that influence customer loyalty, (2) the complementary and mediating role of customer-firm affection in strengthening customer loyalty, (3) significant affect transfers from the customer-staff to the customer-firm level, and (4) the dilemma that emerges when customer-staff relationships are too close. The findings provide several implications for researchers and managers regarding how intimacy and passion can enrich customer service interactions and how to manage customer-staff relationships properly.

Extant research confirms the importance of value cocreation through customer participation (CP), but relatively little is known about whether and how it creates an enjoyable experience for customers and service employees and the consequential outcomes of this positive affective experience. This study applies the concept of flow as an overarching framework and draws theoretical support from social cognitive theory, particularly its extension (i.e., the conceptual model of relational efficacy beliefs), to examine how customers and employees derive enjoyment from CP conditional on their perceived efficacy of themselves (self-efficacy [SE]) and their partners (other-efficacy [OE]) in financial services. Empirical results from 223 client-financial adviser dyads confirm that participation enjoyment, in addition to economic and relational values, mediates the impact of CP on participants' satisfaction evaluations, with SE positively moderating CP's impact on participation enjoyment. The synergistic effect of SE and OE on participation enjoyment also differs for clients versus financial advisers: Even incongruent levels of SE and OE can enhance participation enjoyment as long as they help validate role expectations of the respective participants.

Emergent perspectives in marketing highlight new opportunities for co-opting customers as a means to define and co-create value through their participation. This study delineates and empirically tests hypotheses regarding the effects of customer participation (CP) on value creation and satisfaction for both customers and employees with different cultural value orientations in the context of professional financial services. Using data collected from 349 pairs of customers and service employees in two national groups (Hong Kong and United States) of a global financial institution, this study examines how (1) CP drives performance outcomes (i.e., customer satisfaction, employee job satisfaction, and employee job performance) through the creation of economic and relational values and (2) the effects of CP on value creation depend on participants' cultural value orientations. Promoting CP could be a double-edged sword for firms:It enhances customers' economic value attainment and strengthens the relational bond between customers and employees, but it also increases employees' job stress and hampers their job satisfaction. Moreover, the effects of CP on value creation depend on the cultural values of both customers and service employees; this result implies that arranging customers and service employees with "matched" cultural value orientations could facilitate the creation of value through CP. Building on the premise in service literature that CP alone is not the key to customer satisfaction, but that value co-creation is what matters, we undertake an empirical study to address some overarching questions: Are more participatory service relationships between customers and service providers desirable? How effective is CP in creating value and affecting service outcomes for both customers and service employees? What are the boundary conditions associated with effective customer participation?For this investigation, we define CP as a behavioral construct that measures the extent to which customers provide/share information, make suggestions, and become involved in decision 3 making. It thus enables service providers to co-create customized services with customers to suit their needs. Customer participation is also more salient and offers greater value creation opportunities for service providers and customers in professional (e.g., financial, legal, medical) services that feature high credence qualities, high degrees of customer contact and customization, and high interdependence between customers and service providers for co-creating favorable outcomes (Auh et al. 2007;Lovelock 1983; Sharma and Patterson 2000). Our study therefore focuses on professional financial services as an appropriate context in which to assess the desirability of CP as a potential source of value creation and satisfaction.Our contribution to existing literature is twofold. First, we empirically test how CP drives service outcomes (i.e., customer satisfaction, employee job satisfaction, and employee job performance) through the creation o...