In this article, the authors attempt to explain and evaluate repositioning strategies when a firm faces a disruptive innovation. The authors found that different firms in an industry react to innovation shocks differently in two important ways¬–first, they choose different timing for when they react, and two, they choose different organizational approaches for reacting (often as a result of their chosen reaction timing). The different choices were a result of three main factors:
1) The firm’s adjustment costs – defined as the costs/reasons why a firm might be constrained from immediately and costlessly imitating the disruptor’s innovation;
2) The firm’s opportunity costs – the costs of being late to respond to the innovation; and,
3) The firm’s transaction costs – defined as the costs associated with buying activities from the market (outsourcing).
Consolidation of suppliers and producers in nearly every sector of food production has meant that the sales process rarely only includes an individual buyer and individual seller. The complexity of larger, more sophisticated parties to the sales transaction has made it more common for needs assessment and value delivery to take place across teams of people. This article is timely in that it looks specifically at how a team approach to these interactions shapes the outcome.
“How Data Analytics is Transforming Agriculture” by Xuan Pham and Martin Stack presents the rise of precision agriculture and data analytics and elaborates on the consequences to agriculture at two different but interconnected levels.
Implementing environmentally sustainable business practices (SBPs) is increasingly important for a firm’s “triple bottom line”—that is, their economic, environmental and social performance. Despite the obvious (and well-documented) benefits from adopting SBPs, including input cost savings and increased demand from consumer goodwill, they do involve tradeoffs. In particular, a single firm adopting an SBP can impose tensions on partner firms throughout the supply chain. These tensions can threaten relationships, induce uncertainty and raise costs for both suppliers and customers. This article is among the first to identify and classify these tensions with the goal of helping business managers anticipate and lessen their negative effects when adopting SBPs.
This paper seeks to understand the role of emotional labor on customer loyalty. Emotional labor is a service employee’s ability to manage feelings and expressions when interacting with a customer. The emotional labor literature focuses on two types: deep acting and surface acting. Deep acting is essentially acting with empathy and changing behavior based on reflection of the situation. Surface acting is often associated with faking expressions while hiding one’s real feelings.
Formulating a strategy is something many CEO’s spend a significant amount of time on. However, the implementation of that strategy is where a great deal of management falls short. Borrowing an analogy from the great game of football, a team that has the perfect playbook and game plan but cannot execute the plays or game plan will not have much success on the field. In this paper, the authors explore why this proverbial chasm is too deep for a lot of managers to cross, causing the company to stumble on the implementation, or worse, never start the implementation of the strategic plan. To study this phenomenon, the authors looked at the intersection of management and psychology to examine if there is a link that may help provide us with nudges, which are behavioral modifications that may modify the manager’s approach to help ensure successful implementation of the strategic plan from beginning to finish.
Supplier provided solutions describes the action of a supplier providing services that complement the main product offering. Such service-led growth strategies are frequently referred to as “customer solutions” where companies move from a stand-alone product offering to a much more complex and customized integration of goods and services that address specific customer needs.
This article presents a conceptual model of customer value formation. This model rests on two dimensions, namely whether value is formed in the customer or provider domain and whether the value is individual or collective in nature. It challenges companies to consider customer context outside of customer-firm interactions as important sources of value creation for customers.