The authors develop a theory of how management can develop and promote the learning capabilities of targeted customer–supplier relationships. The theory suggests that a supplier and a customer can improve their joint learning activities by facilitating information exchange, developing common learning arenas, and updating their behavior accordingly. The authors suggest that learning within a customer–supplier relationship cannot be mandated by either organization, but rather learning depends on both parties’ willingness to cooperate in joint learning activities. Management can promote relationship learning by cultivating a collaborative culture, formulating specific objectives for joint learning activities, and developing relational trust. However, as relational trust develops, the effectiveness of learning is reduced as a result of “hidden costs” of trust. The authors use data from 315 dyads to test the theory empirically, and they find that the learning capability of a relationship has a strong, positive effect on performance. Their results also provide insight into how to address the hidden costs of trust.

PurposeThe purpose of this study is to examine the relationship between foreign market entry modes and hard‐ and soft‐service firms. The paper investigated which foreign market entry modes service firms opt for, and if this is influenced by systematic differences between types of service industries. A secondary purpose is to test the generalizability of the research findings from manufacturing sector to service sector firms.Design/methodology/approachOur sample consisted of 140 Swedish service firms. These firms were investigated using a mailed questionnaire survey, and logistic regression analysis was used for testing the hypotheses.FindingsThe statistical analysis shows that, in general, soft‐service firms are much more likely than hard service firms to choose a high control entry mode over a low control entry mode. Furthermore, as cultural distance increases, the likelihood of this choice increases even more.Research limitations/implicationsThe implications are that while hard service suppliers can learn from the experience of manufacturing firms going abroad, soft services are unique. Given the importance for soft‐service suppliers to interact with their foreign customers, they should opt for a high degree of control over their foreign market entry mode. In future research on foreign market entry mode selection in service firms more attention should be given to social processes that exercise control.Originality/valueThe findings enhance knowledge on foreign market entry by service firms.

Purpose -While satisfaction, value, image, and credibility are commonly assumed to drive customer loyalty, there is nevertheless reason to question whether their effects vary across groups of consumers. This paper seeks to explore how individuals with contrasting need-for-cognition (NFC) levels differ in using memory-based information when forming behavioral intentions towards a current service provider. Design/methodology/approach -The authors tested the hypotheses by means of survey data from customers of retail banks, and applied two-group analysis using structural equation modeling (SEM) to test the moderating effects of NFC. Findings -Satisfaction positively affects loyalty for high NFCs, but not for low NFCs. Image is insignificant in both groups. Value positively affects loyalty for low NFCs, but not for high NFCs. Credibility has a positive effect for low NFCs, but not for high NFCs.Research limitations/implications -The limited sample size affects the power of the test methodology, but Chow-tests of regression models gave similar results. Further research should test the model in other contexts to enhance external validity. Practical Implications -To develop more effective customer strategies, both researchers and practitioners need to understand how different types of consumers attend to and utilize information when forming behavioral intentions. The standard practice of surveying customer satisfaction and loyalty typically requires the consumer to make a memory-based judgment. Originality/value -Previous research has primarily focused on how consumer demographics moderate satisfaction-loyalty links. This paper includes additional drivers of loyalty, and assesses moderation by a personality trait (NFC) not previously used in satisfaction-loyalty research. The results indicate that a consumer's dispositional tendency to think and elaborate (more or less) can bias survey results.

Purpose -The purpose of this paper is to develop and test a theoretical model of narrow and broad market scanning in a service industry, including short-and long-term outcomes. Design/methodology/approach -In a cross-sectional survey, structural equation modeling is used to test the hypotheses on a sample of 126 hotel managers in Norway. Findings -Given that services often involve direct interaction between the customer and the provider, customers play a more active role in the service development process. This has ramifications for how service firms scan their environment and, in turn, for incremental and discontinuous innovation. It is found that narrow and broad scanning each affect the new service development process in a unique way. Narrow scanning has a strong positive effect on profitability through incremental service adaptation; broad scanning has a weak but significant effect on profitability through incremental service adaptation, and broad scanning positively influences spin-off knowledge.Research limitations/implications -The two greatest limitations of the research, which translate into important avenues for future research, are to develop a better measure of discontinuous innovation, and to test the model in an alternative setting, because hotels are very dependent on locality and surroundings. Practical implications -When developing services, services managers must distinguish between short-and long-term performance, and how they scan their markets. Adapting to customers to the exclusion of exploring new opportunities threatens long-term viability. Originality/value -The paper offers the following advice: as with organizational learning, service firms need to scan their markets by design, not default.

Purpose The purpose of this paper is to develop and test a theoretical framework explaining the adoption of online insurance claims characterised by infrequent interactions, inherent complexity and risk. It extends the technology acceptance model to include knowledge-related and trust-related beliefs. Design/methodology/approach The framework is tested with structural equation modelling using data from a survey of 292 customers who made online insurance claims. Findings are further explained through 30 telephone interviews conducted with online and offline claimants. Findings Previous research in financial services has shown trust to be equally or more important than perceived usefulness and perceived ease of use in forming attitudes towards adopting online insurance applications. The findings of this paper contradict this by showing, at best, a weak relationship between trusting attitude and intention to use the online service. Trust is somewhat meaningful; however, perceived ease of use, perceived usefulness and technology attitude are substantially more important in an online insurance claims setting. Research limitations/implications Contradictory results always beg further research to assure their robustness. Nevertheless, they can also point to a developing trend where trust in the internet channel, per se, is of diminishing importance. Internet and product knowledge are not as pertinent to forming intentions as usefulness and ease of use. Practical implications To encourage customers to adopt online applications for a trusted company, all emphasis should be on user friendliness and perceived usefulness of the online interface. Originality/value Compared to other channels, consumers are no longer naïve or distrustful of the online channel for interacting with a firm. If they perceive usefulness and ease of use, they will adopt the offered service.