The Market Valuation of Outsourcing New Product Development

Raassens, Néomie; Wuyts, Stefan; Geyskens, Inge

doi:10.1509/jmr.09.0317

Cited by 77 publications

(84 citation statements)

References 70 publications

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“…Finally, we added dummy variables for each country, announcement year, and season; to avoid overparameterization, we first included all dummy variables, then retained only significant ones in our final analyses (Raassens et al 2012).…”

Section: Control Variablesmentioning

confidence: 99%

See 1 more Smart Citation

Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value

Beckers¹,

Doorn

Verhoef

2017

J. of the Acad. Mark. Sci.

239

209

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In today's connected world, customer engagement behaviors are very important. Many companies launch initiatives to stimulate customer engagement. However, despite evidence that customer engagement behavior also matters to shareholders, academic research on the firm value consequences of customer engagement campaigns is limited. This study is the first to investigate the value-related consequences of firm-initiated customer engagement behaviors, using shareholder evaluations of the public announcements of such initiatives. We find that companies' customer engagement initiatives, on average, decrease market value, which is likely because the shareholders are sensitive to the risk of these initiatives backfiring. Nevertheless, initiatives that stimulate word-of-mouth are viewed less negatively than initiatives that solicit customer feedback, as are initiatives that are supported by social media. Companies that operate in a competitive environment or do not advertise much can create value by stimulating customer engagement, while companies with a strong corporate reputation are likely to not benefit from it.

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Section: Control Variablesmentioning

confidence: 99%

“…Finally, we controlled for selection effects in our study as employed in earlier event studies (e.g., Raassens et al 2012) that were neither theoretically nor empirically supported. The self-selection correction is not perfect, requiring more attention in future research.…”

Section: Limitations and Further Research Opportunitiesmentioning

confidence: 99%

Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value

Beckers¹,

Doorn

Verhoef

2017

J. of the Acad. Mark. Sci.

239

209

View full text Add to dashboard Cite

show abstract

“…Moreover, R&D intensity indicates a firm's commitment to continual innovation [35]. Extant literature notes that R&D intensity has a strong impact on a variety of innovation outcomes [70], suggesting its importance as a firm resource that can be used to influence the relationship between IFR traits and platform innovation. Moreover, R&D intensity represents an inside-out perspective [20], from which we theorize a role in the relationship between IFR traits and a firm's platform innovation.…”

Section: Moderating Role Of Randd Intensitymentioning

confidence: 99%

Interfirm Relational Strategies and Innovation: the Role of Interfirm Relational Traits and Firm Resources

Yim¹,

Josephson

Johnson

et al. 2015

Cust. Need. and Solut.

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Building on relational and resource-based perspectives, this article investigates the indirect effect of interfirm relational strategies (relational proclivity and capability) on firm platform innovation, through their association with key interfirm relational traits (information flows and relational embeddedness). Given differences in firm usage and deployment of resources, the authors examine the moderating effects of two firm-level strategic levers critical to the innovation process: marketing intensity and R&D intensity. The test of this conceptual model uses primary and secondary data from 237 firms operating in high-tech industries. The results indicate that relational proclivity and capability positively influence interfirm relationship traits of information flows and relational embeddedness. These traits then have profound effects on firm platform innovation. In terms of moderation, the authors demonstrate that marketing intensity improves the ability of relational embeddedness to enhance platform innovation, whereas R&D intensity improves the ability of information flows to enhance platform innovation. The authors conclude with implications for marketing theory and practice.

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“…However, he also points out that there is a possibility that a firm may miss out on establishing new relationships with innovative suppliers if it only selects suppliers with whom it has existing relationships. It is beneficial to select new suppliers because they broaden the firm's network (Beckman, Haunschild, & Phillips, 2004;Raassens, Wuyts, & Geyskens, 2012) and bring in new ideas (Yan, 2011). Thus, there is no obvious answer to whether firms should involve known suppliers or new suppliers.…”

Section: Supplier Selection For Npd Projectsmentioning

confidence: 99%

Supplier Involvement in New Product Development under Technological Uncertainty

Melander¹

2014

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This thesis addresses the challenges that firms are faced with when collaborating with suppliers in new product development (NPD) projects under technological uncertainty. A critical observation that is made in this context is that technologies are evolving faster, making products more complex. At the same time, firms become more specialized. Due to increased complexity and specialization, firms do not possess all the necessary technologies in-house and therefore need to collaborate with external organisations to incorporate new technology into their products. Common collaborators are suppliers who become integrated into the buying firm's NPD project. Scholars and practitioners alike have stressed the importance of involving suppliers in NPD (Takeishi, 2001;Petersen, Handfield, & Ragatz, 2005;Silverstone, Wallis, & Mindrum, 2012;Tevelson, Alsén, Rosenfeld, Benett, Farrell, & Zygelman, 2013). However, finding suppliers and collaborating with suppliers in NPD can be problematic. In addition, external collaborations also impact the buying firm internally, since it often needs to coordinate its departments. Supplier involvement in NPD has been studied for decades (for an overview of the field see Johnsen, 2009), however, little is known about the impact of technological uncertainty in these settings. Consequently, the purpose of this thesis is to explore supplier involvement in NPD under technological uncertainty.The research in this thesis is based on six case studies that were conducted at two large system integrator firms: ABB and Ericsson. In total, 53 interviews and two workshops were conducted to collect relevant data. The thesis consists of a compiled summary and five appended papers. The framework that is developed in the thesis highlights that challenges in supplier involvement in NPD projects under technological uncertainty can be divided into challenges that are related to supplier selection, buyer-supplier collaboration, and internal coordination between R&D and purchasing. The main findings of these studies revolve around the identified challenges.Challenges in supplier selection are concerned with the issues of involving new suppliers or relying on old acquaintances, managing uncertainties, the dilemma of whether to commit to long-term relationships or to maintain flexibility, and deciding on which department that is responsible for evaluating and selecting the supplier. The present study of buyers and suppliers in NPD, shows the challenges that are involved in balancing control, reaching goal alignment, and managing transactional and relational governance. Internal challenges investigate the coordination between the R&D department and purchasing in NPD projects where suppliers are involved. The results of the study indicate that, in projects with high technological uncertainty, there is limited coordination between the R&D department and purchasing since purchasing had but little involvement in these projects. There is organisational separation however, where purchasing is mainly responsible f...

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The Market Valuation of Outsourcing New Product Development

Cited by 77 publications

References 70 publications

Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value

Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value

Interfirm Relational Strategies and Innovation: the Role of Interfirm Relational Traits and Firm Resources

Supplier Involvement in New Product Development under Technological Uncertainty

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