2016
DOI: 10.1177/2055563616684162
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Customer references and the buying of capital equipment for a project firm

Abstract: This article aims to study the influence of customer reference marketing on capital buying decisions in the context of firms with highly complex contractual frameworks. It presents the case of a thermoelectric power plant in which customer referencing did not influence a relevant buying decision. Evidence suggests that the implicit governance mechanism of project financing nullified the referencing effect. Project finance restricts managerial discretion over free cash flow, which influences organizational buyi… Show more

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Cited by 4 publications
(5 citation statements)
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“…Alam and Perry (2002) discovered that the creative process is derived primarily from users, and user participation in the innovation process can reduce obstacles and accelerate innovation. Creating and maintaining customer loyalty is a strategic requirement for modern enterprises (Morgado and de Castro, 2016). Therefore, the design process guided by user requirements can match the function and applicability of the product to actual needs.…”
Section: Theory and Hypothesesmentioning
confidence: 99%
“…Alam and Perry (2002) discovered that the creative process is derived primarily from users, and user participation in the innovation process can reduce obstacles and accelerate innovation. Creating and maintaining customer loyalty is a strategic requirement for modern enterprises (Morgado and de Castro, 2016). Therefore, the design process guided by user requirements can match the function and applicability of the product to actual needs.…”
Section: Theory and Hypothesesmentioning
confidence: 99%
“…The authors studied the impact of customer references on buying decisions by introducing a case study featuring a power plant. This study does not contribute to our understanding of the phenomenon under study because ‘[e]mpirical evidence for the existence of a reference relationship was not found’ (Morgado & de Castro, 2016, p. 258).…”
Section: Literature Reviewmentioning
confidence: 92%
“…The present research features a single case study (Gummesson, 2007; Halinen & Törnroos, 2005; Patton & Appelbaum, 2003; Stake, 1995; Woodside & Wilson, 2003). The selected case showcases an energy business which has the features of a reference business (Morgado & de Castro, 2016). Numerous scholars (Ruokolainen & Mäkelä, 2007; Salminen & Möller, 2004, 2006) recommend case studies as valuable tools for learning more about customer referencing.…”
Section: Methodsmentioning
confidence: 99%
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“…According to these authors, by following this recommendation, it is possible to broaden the scope of the theory. The energy industry has the features of a reference business (Morgado and de Castro, 2016), which allows for the observation of complex purchasing decisions that often involve the acquisition of customized solutions.…”
Section: Methodsmentioning
confidence: 99%