The authors investigate the effectiveness of service transition strategies for generating shareholder value by evaluating secondary data pertaining to 477 publicly traded manufacturing firms during 1990-2005. The impact of a firm's transition to services on firm value (as measured by Tobin's q) remains relatively flat or slightly negative until the firm reaches a critical mass of service sales (20%-30%), after which point they have an increasingly positive effect. Furthermore, the effect of service sales on firm value depends on both firm and industry factors. Service transition strategies are more effective at enhancing value when the service offerings are related more to the firm's core business and when firms have more available resources (i.e., resource slack). The impact of adding services to core products on firm value amplifies as industry turbulence increases but diminishes when the firm's core products are in high-growth industries.

The influence of firms' dynamic capabilities on performance has been well articulated in the strategy literature. Yet conceptualization and operationalization of dynamic capabilities in marketing function have not been attempted, and empirical evidence substantiating the effect of dynamic capabilities is scarce. This research develops a conceptualization of marketing dynamic capabilities (MDCs), investigates their development in international joint ventures (IJVs), and explores their effect on IJVs' performance and competitive advantage. Using a dyadic dataset collected from top managers of IJVs in China, as well as objective performance data collected separately, the study found empirical support for the effect of MDCs on IJVs' competitive advantage and performance. In addition, MDCs are found to be influenced by IJV resource magnitude, resource complementarity, organizational culture, and organizational structure. The theoretical implications of our findings and future research directions are also discussed. Journal of International Business Studies (2009) 40, 742–761. doi:10.1057/jibs.2008.96

To address the trade-off between new product innovativeness and speed to market caused by customer participation activities, the author differentiates two dimensions of customer participation-customer participation as an information resource (CPI) and customer participation as a codeveloper (CPC)-and explores the moderating effects of downstream customer network connectivity and new product development process interdependence and complexity. Matched data collected from 143 customer-component manufacturer dyads indicate that CPI has a negative influence on innovativeness when downstream customer network connectivity is high but a positive effect when it is low. In contrast, CPI has a positive effect on speed to market when downstream customer network connectivity is high and no significant effect when it is low. In addition, CPC undermines new product speed to market when process interdependence is high. In contrast, CPC can improve new product speed to market but hurt new product innovativeness when process interdependence is low. The results of this article provide specific managerial guidelines as to how to manage customer participation to improve new product innovativeness and speed to market.

The primary purpose of this article is to investigate the effect of export marketing capabilities on export performance. Drawing on the resource-based view, the authors develop a model that links an exporter's product development capability, distribution capability, communication capability, and pricing capability with its positional advantages (low-cost advantage and branding advantage) and its performance in the export market. On the basis of a survey of Chinese export ventures, the authors find general support for their proposed model. The authors discuss the theoretical and managerial implications of their findings.

This research applies an institutional arrangement perspective to develop an end-to-end model for the interaction between customers and upstream suppliers to develop a new product to understand how new product value is created and shared. The model is empirically tested by collecting primary data from 188 manufacturers across different industries. The research demonstrates that customer participation affects new product value creation by improving the effectiveness of the new product development process by enhancing information sharing and customer-supplier coordination and by increasing the level of customer and supplier specific investments in the product development effort. In addition, increasing the formalization of the customer participation process enhances both customer and supplier relationship-specific investments in the new product development process. The impact of customer participation on the customer's share of the new product value pie is more complex then is first apparent. Based on the dependence and equity perspectives the results suggest that exchange partners' power (relative dependence) positively influences a partner's ability to capture new product value, but this power is offset by a desire of exchange partners to ensure the distribution of value is "fair" and reflects each party's contribution to the value creation.