Purpose The purpose of this paper is to develop a typology based on the market orientation (MO) and innovation orientation (IO) of firms, and to illustrate the extent to which public housing companies (PHCs) fit into this framework. Design/methodology/approach A qualitative study of 11 PHCs in central Sweden was conducted to classify their positions in the typology. Interviews with semi-structured and open-ended questions were used to collect the data. Findings Four PHC types were identified by combining high and low MO and IO. This study offers insights on the importance of combining MO and IO. The overall findings show that MO and IO combination is not static and must be handled according to context. The MO-IO typology developed could be tested in a quantitative study on a larger sample of public or combined public and private housing companies. Research limitations/implications An empirical study comparing public and private housing companies on the basis of the proposed typology in relation to economic contingencies in the environment would further knowledge in this area. Practical implications The current study gives managers an indication of their position in the typology, which can be used as a tool for improving performance. Originality/value This paper describes PHCs within a proposed typological framework.

PurposeThe service recovery paradox (SRP) is the phenomenon that happens when customer satisfaction level post-service failure and recovery surpasses the customer satisfaction level achieved at error-free service. The aim of this study was to identify how large the size of compensation has to be at recovery for customer satisfaction to surpass that of error-free service (i.e. to identify a threshold value for SRP). The purpose of this is to inform managers how to restore customer satisfaction yet avoid overcompensation.Design/methodology/approachThe paper covers two studies. Study 1 used the novel approach of asking participants who had experienced a service failure in the hotel industry what amount of money (recovery) would make them more satisfied than in the case of error-free service. Study 2 then tested the compensation levels expressed by Study 1 participants to be sufficient for the service recovery paradox to occur.FindingsStudy 1 indicated that the threshold for the SRP was (on average) around 1,204 SEK, or just over 80% of the original room reservation price of 1,500 SEK (approx. $180). Study 2 found that (on average) the customer satisfaction of participants who received 1,204 SEK in compensation for service failure marked the point where it surpassed that of error-free service. Participants who received 633 SEK were less satisfied; participants who received 1,774 SEK were more satisfied.Research limitations/implicationsThe findings are context-specific. Future research should test the findings' generalizability.Practical implicationsThe approach used in this paper could provide managers with a tool to guide their service recovery efforts. The findings could help hotel managers to make strategic decisions to restore customer satisfaction yet avoid overcompensation, given a legitimate service failure in which the organization is at fault.Originality/valueNumerous previous studies have investigated the occurrence or absence of the SRP at predetermined compensation levels. This paper used a novel approach to find a quantitative threshold at which the magnitude of the recovery effort makes customer satisfaction surpass that of error-free service.

Industrial companies are in a situation that requires them to reconsider their social sustainability agenda in order to attract new employees. Building upon interviews with CEOs and HR managers in 20 small medium enterprises (SMEs), this study aims to analyze how high-tech companies and industrial engineering companies define and implement social sustainability into business strategies and operations. Data was collected from 20 interviews and secondary information coded for categorical data analysis in SPSS Statistics 22 software. The findings show that although the companies have adopted several kinds of International Organization for Standardization (ISO) standards, social sustainability is still absent from their operational activities and is considered of lower importance than environmental sustainability. Thus, the implementation of social sustainability can be considered symbolic rather substantive. The study also shows differences between the two groups of companies. The high-tech company group pays little attention to social sustainability aspects, instead focusing on product innovation development. While the industrial engineering group has some interest in social sustainability, their focus is primarily on issues linked to health and safety in order to meet increasing demands from supply chain compliance. Neglecting social aspects of sustainability, such as addressing gender equality and diversity, may cause difficulties in attracting a new workforce.

This article serves to analyze the impact of corporate social responsibility (CSR) on (1) the market orientation and strategic performance relationship related to public housing companies’ choice of construction strategies and (2) the companies’ responsiveness to gathered and disseminated customer information. The quantitative method is applied, with data analyzed by the PROCESS analysis. The result is based on a survey sent to 289 public housing companies in Sweden. Previous research suggests a positive relationship between market orientation and strategic performance, which was not confirmed by this study. When testing the mediation effects of CSR on the market orientation and construction strategies relationship, these hypotheses were confirmed related to social and environmental dimensions—not economic ones. This study was limited to public housing companies, a sector that radically differs from the situation of companies in the open market. The study increases public housing companies’ knowledge of CSR effects on the market orientation and strategic performance relationship. This result contributes useful information for companies implementing CSR in their activities. The study highlights the importance of integrating CSR into an organization’s market orientation work and shows how CSR improves the companies’ ability to meet customers’ strategic needs.

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