Effect of Service Transition Strategies on Firm Value

Fang, Eric; Palmatier, Robert W.; Steenkamp, Jan‐Benedict E. M.

doi:10.1509/jmkg.72.5.001

Cited by 469 publications

(782 citation statements)

References 65 publications

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“…To measure firm performance and performance variability, we relied on stock prices, which are forward looking, integrate multiple performance dimensions (sales, cash flow), and are difficult for managers to manipulate (Fang, Palmatier, and Steenkamp 2008). To measure firm performance and performance variability, we relied on stock prices, which are forward looking, integrate multiple performance dimensions (sales, cash flow), and are difficult for managers to manipulate (Fang, Palmatier, and Steenkamp 2008).…”

Section: Methodsmentioning

confidence: 99%

“…To calculate industry dynamism, we divided the standard deviation of sales in the firm's product industry (four-digit SIC code) across the prior five years by the mean value of industry sales for those years (Fang, Palmatier, and Steenkamp 2008). We were able to match 432 observations with our data set and run regressions of innovation asset depth and breadth, firm size, profits, industry dynamism, and competition, on firm innovativeness obtained from the Fortune database.…”

Section: Methodsmentioning

confidence: 99%

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Effects of Customer and Innovation Asset Configuration Strategies on Firm Performance

Fang

Palmatier

Grewal

2011

Journal of Marketing Research

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163

124

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Christine Moorman served as associate editor for this article.Eric (Er) Fang, robErt W. PalmatiEr, and rajdEEP grEWal* both customer and innovation assets are important to firm performance. Prior research has mostly examined these assets at the firm level and has not distinguished between the effects of asset depth relative to competitors and asset breadth across different segments. Using configuration theory and the resource-based view of the firm, the authors propose that how these assets interact to influence performance depends on both depth and breadth because these features reflect whether the assets are likely to create and/or appropriate value when deployed. Empirical results from two studies-one using secondary data and another using primary data from a survey of senior managersindicate that performance is highest when firms employ configurations using deep customer and broad innovation assets or deep innovation and broad customer assets. in contrast, firm performance variability decreases in the presence of deep-deep and broad-broad asset configurations. the effect of configuration strategies on firm performance also is typically greater in dynamic than in stable environments.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Effects of Customer and Innovation Asset Configuration Strategies on Firm Performance

Fang

Palmatier

Grewal

2011

Journal of Marketing Research

Self Cite

163

124

View full text Add to dashboard Cite

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“…Prior research has focused on product portfolio characteristics such as product diversification on the performance of IT firms [20, 25,93]. Our research suggests that a firm's product portfolio also influences its ability to provide services, which could affect firm performance [38]. Moreover, as product companies grow their revenue from services, it is important to take service strategy into account when examining the performance of IT vendors and the competition in the IT industry.…”

Section: Theoretical Implicationsmentioning

confidence: 95%

“…Past research on services provided by product companies suggests that services can help product companies increase profitability [37,38,88,103] while reducing the vulnerability and volatility of cash flow [87]. In addition to being a revenue source, services also provide a strategic opportunity for future growth, especially when product markets become saturated or when product technologies become mature [82].…”

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confidence: 99%

Service Expansion of Product Firms in the Information Technology Industry: An Empirical Study

Han

Kuruzovich

Ravichandran

2013

Journal of Management Information Systems

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The provision of services has become an increasingly important component of the economy of industrialized countries and the revenue stream for many traditional product companies. This is especially true for companies that offer information technology (IT) products. This paper examines factors that are associated with the extent to which IT product companies are able to develop service revenue, which we refer to as service expansion of IT product companies. We identify the characteristics of the product portfolio-specifically, the composition and scope of firm offerings among hardware, application software, and infrastructure software-as key to successful service expansion. We also propose that this relationship is moderated by prior performance of the product business and industry characteristics such as concentration and maturity. Data from IT product vendors spanning five years are used to test the proposed relationships. Overall, this research provides a theoretical foundation for understanding service expansion and diversification in the IT industry as well as practical guidance for IT product companies considering expansion to services.Key wordS and phraSeS: IT services, IT stack, IT vendors, service diversification, software product portfolio. SErVIcE EXPANSION OF PrODucT FIrMS IN ThE IT INDuSTrY 129service businesses complement each other-that is, design feedback obtained from services can provide strategic direction for product development, while the integration of serviceable components into products can enable new services. In summary, these studies have focused on service expansion as a management action (independent variable) and examined the resulting consequences for firms. Despite these arguments identifying the advantages of service expansion for product companies, little research has explored the organizational drivers of successful service expansion, making this an open area for research. An implicit assumption is that IT product vendors provide services to exploit their existing competencies, especially the competencies accumulated through the product business [82]. however, no research has explored the specific competencies that enable or motivate these firms to expand their offerings to include services.The goal of this research is to identify the factors that enable product firms to successfully expand their service offerings. We consider product companies providing services as an expansion into a new but related line of business, such that knowledge and resources from the existing product business are relevant to understanding the new service business [50, 51,71,94]. 1 This suggests that the product portfolios of IT vendors are likely to be a key enabler of service expansion, as vendors with different product portfolios will have different knowledge resources [51, 72]. We focus on two kinds of knowledge resources-customer knowledge and architectural knowledgebecause they are critical to the provision of services. We further suggest that a stack framework, which includes layers (from bottom ...

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“…Even product manufacturing firms have extended their service businesses and transformed themselves, from providers of tangible products to grantors of intangible services (Bitner and Brown, 2006;Fang et al, 2008;Gebauer, 2008), which might entail a different focus for service innovation activities. Therefore, discriminating the dimensions of service innovation by industries, sizes, and types of firms might be beneficial.…”

Section: Introductionmentioning

confidence: 99%

A practical perspective on the classification of service innovations

Hsieh

Chiu

Wei

et al. 2013

Journal of Services Marketing

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -This paper aims to link academic classifications of service innovation with practical activities by firms to detail the essence of service innovation. Design/methodology/approach -This research employs both qualitative and quantitative analyses. The qualitative study features interviews with senior managers from 590 companies, covering nine industries in Taiwan, to gather practitioners' perspectives on service innovation. A content analysis details specific forms of service innovation. The quantitative study provides a homogeneity test and two-sample proportions test to examine differences in service innovation perspectives/activities across organizational characteristics. Findings -The interview data link three types of service innovations to 11 associated elements and 25 labels, derived from 659 potential service innovation incidents (550 new service concepts, 82 new service processes, and 27 new service business models). This study also shows that elements of service innovations vary by company size, service innovation experience, and industry life cycle. Practical implications -The three types of service innovations enable businesses to benchmark and modify their current service innovation activities. Service managers can use the results of this study to develop their own service innovation strategies and concrete action plans. Originality/value -This pioneering study links the viewpoints of academics with practical service innovation activities and empirically shows that service innovation is dissimilar, depending on various organization characteristics.

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Effect of Service Transition Strategies on Firm Value

Cited by 469 publications

References 65 publications

Effects of Customer and Innovation Asset Configuration Strategies on Firm Performance

Effects of Customer and Innovation Asset Configuration Strategies on Firm Performance

Service Expansion of Product Firms in the Information Technology Industry: An Empirical Study

A practical perspective on the classification of service innovations

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