The effect of consumer resistance to innovation on innovation adoption: the moderating role of customer loyalty

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yang Sun ◽  
Wenmei Ding ◽  
Chen Weng ◽  
Isaac Cheah ◽  
Helen Huifen Cai
Keyword(s):  
Customer Loyalty ◽  
Affective Response ◽  
Innovation Adoption ◽  
New Product ◽  
Smartphone Application ◽  
Three Dimensions ◽  
Formation Mechanisms ◽  
Content Type ◽  
Consumer Resistance ◽  
Relationship Model

PurposeThe purpose of the study is to construct a relationship model between the consumer resistance to innovation (CRI) and innovation adoption, and the study selected the customer loyalty as the moderating variable.Design/methodology/approachBased on questionnaire survey and regression model analysis, the study analyses the psychological processes and formation mechanisms that they either resist or adopt innovation by exploring users' attitudes towards smartphone application updates.FindingsThe results showed that innovation resistance negatively affected innovation adoption, and consumers are more likely to adopt innovations simply under the influence of customer loyalty. In addition, the moderating effect of customer loyalty is different in that how the three dimensions of innovation resistance influence innovation adoption. From the perspective of affective response, when consumers become emotionally disgusted with innovative products, loyalty can hardly change their minds. When consumers' resistance to innovation comes more from cognitive evaluation or functioning, loyalty is more likely to change their resistance.Originality/valueThe paper tests mechanism between customer resist the new product and new product adoption and the moderate effect of customer loyalty.

Service journey quality: conceptualization, measurement and customer outcomes

2021 ◽  
Vol 32 (6) ◽  
pp. 1-27
Author(s):  
Elina Jaakkola ◽  
Harri Terho
Keyword(s):  
Service Quality ◽  
Service Delivery ◽  
Customer Loyalty ◽  
Financial Services ◽  
Three Dimensions ◽  
Service Research ◽  
Research Approach ◽  
Critical Determinant ◽  
Content Type

PurposeThe quality of the customer journey has become a critical determinant of successful service delivery in contemporary business. Extant journey research focuses on the customer path to purchase, but pays less attention to the touchpoints related to service delivery and consumption that are key for understanding customer experiences in service-intensive contexts. The purpose of this study is to conceptualize service journey quality (SJQ), develop measures for the construct and study its key outcomes.Design/methodology/approachThe study uses a discovery-oriented research approach to conceptualize SJQ by synthesizing theory and field-based insights from customer focus group discussions. Next, using consumer survey data (N = 278) from the financial services context, the authors develop measures for the SJQ. Finally, based on an additional survey dataset (N = 239), the authors test the nomological validity and predictive relevance of the SJQ.FindingsSJQ comprises of three dimensions: (1) journey seamlessness, (2) journey personalization and (3) journey coherence. This study demonstrates that SJQ is a critical driver of service quality and customer loyalty in contemporary business. This study finds that the loyalty link is partially mediated through service quality, indicating that SJQ explains loyalty above and beyond service quality.Research limitations/implicationsSince service quality only partially mediates the link between service journey quality and customer loyalty, future studies should examine alternative mediators, such as customer experience, for a more comprehensive understanding of the performance effects.Practical implicationsThe study offers concrete tools for service managers who wish to understand and develop the quality of service journeys.Originality/valueThis study advances the service journey concept, demonstrates that the quality of the service journey is a critical driver of customer performance and provides rigorous journey constructs for future service research.

scholarly journals A multi-dimensional approach for managing open innovation in NPD

2017 ◽  
Vol 37 (10) ◽  
pp. 1366-1385 ◽  
Author(s):  
Hanna Bahemia ◽  
Brian Squire ◽  
Paul Cousins
Keyword(s):  
Product Development ◽  
Competitive Advantage ◽  
New Product Development ◽  
New Product ◽  
Three Dimensions ◽  
Longitudinal Impact ◽  
Product Innovativeness ◽  
Content Type ◽  
The Impact ◽  
Positive Effect

Purpose This paper explores openness within new product development (NPD) projects. The purpose of this paper is to examine the impact of breadth, depth and partner newness on product innovativeness and product competitive advantage. The authors also seek to examine the contingent effects of the appropriability regime. The authors make suggestions to academics and practitioners based on the findings. Design/methodology/approach The authors use a structured survey instrument producing an empirical analysis of 205 NPD projects in the manufacturing sector in the UK. The authors use an ordinary least squares regression model to test hypothesised relationships between openness (breadth, depth and partner newness), product innovativeness, product competitive advantage and the appropriability regime. Findings The authors find that each of the three dimensions of openness, depth, breadth and partner newness, have a significant but differing impact on product innovativeness. Specifically, the study indicates that breadth has a positive effect but only in the presence of a strong appropriability regime, partner newness has a direct positive effect, and depth a direct negative effect. The authors also find that product innovativeness has a positive impact on product competitive advantage. Research limitations/implications Further research should focus on replicating the findings in other countries, search for further moderating factors, such as the stage of the NPD process, and analyse the longitudinal impact of openness within NPD projects. Practical implications Organisations are encouraging managers to be more open in their approach to NPD. The authors’ findings suggest that managers need to think about the three dimensions of openness, breadth, depth and partner newness. Their engagement with each of these dimensions depends on the desired outcomes of the innovation project and the strength of patents. Originality/value The research extends the extant supplier involvement in new product development literature to examine the effect of up to 11 types of external actor in NPD projects. The authors test a new multi-dimensional measurement scale for the openness construct. The authors show that each dimension has a different relationship with product innovativeness.

The effects of social capital on knowledge heterogeneity

2019 ◽  
Vol 57 (5) ◽  
pp. 1237-1253 ◽  
Author(s):  
Fu-Sheng Tsai ◽  
I-Chieh Hsu
Keyword(s):  
Social Capital ◽  
New Product Development ◽  
New Product ◽  
Shared Vision ◽  
Three Dimensions ◽  
Content Type ◽  
Negative Impacts ◽  
The Relationship ◽  
Epistemological Dimension

Purpose The purpose of this paper is to examine the influences of social capital on knowledge heterogeneity in order to advance the understanding of the effects and to reconcile existing inconsistent findings. Design/methodology/approach Survey data collected from 105 new product development (NPD) projects were analyzed with regression-based methods. Findings The results indicated that trust, centralization and shared vision as the three social capital dimensions generally have negative impacts on the domain and presentation dimensions of knowledge heterogeneity. However, the three dimensions of social capital do not exhibit consistent influences on the tacitness heterogeneity (i.e. an epistemological dimension of knowledge heterogeneity). Research limitations/implications More research is needed to explore the role of social capital dimensions in developing a range of knowledge attributes of NPD teams, among which knowledge heterogeneity is one. The various dimensions of knowledge an NPD team possesses should have performance implications and deserve future investigation. Originality/value The study is one of the first documented attempts to demonstrate contingencies in the relationship between social capital and knowledge heterogeneity. The effect of social capital on knowledge heterogeneity should be understood at the level of dimensions of the two respective constructs.

To fly or not to fly? An empirical study of trust, post-recovery satisfaction and loyalty of Malaysia Airlines passengers

2019 ◽  
Vol 29 (5/6) ◽  
pp. 661-690 ◽  
Author(s):  
Amrul Asraf Mohd-Any ◽  
Dilip S. Mutum ◽  
Ezlika M. Ghazali ◽  
Lokmanulhakim Mohamed-Zulkifli
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Interactional Justice ◽  
Final Analysis ◽  
Mediating Effect ◽  
Three Dimensions ◽  
Content Type ◽  
Perceived Justice ◽  
Recovery Satisfaction ◽  
Customer Trust

Purpose The purpose of this paper is to investigate the importance of successful service recovery in the airline sector by examining the interrelationship between perceived justice, recovery satisfaction and overall satisfaction, customer trust and customer loyalty. Furthermore, the research assesses the mediating effect of overall satisfaction and customer trust on customer loyalty. Design/methodology/approach Data were collected via an airport intercept survey of Malaysia Airlines passengers who had experienced service failure. In total, 380 responses were used for the final analysis. The study uses partial least squares structural equation modelling technique with SmartPLS 3.0, in order to test and validate the research model and hypotheses posited. Findings The results reveal that: recovery satisfaction is significantly affected by procedural and interactional justice; distributive and procedural justice, as well as recovery satisfaction influenced overall satisfaction; customer trust is most influenced by interactional justice, distributive justice and recovery satisfaction; customer loyalty is positively affected by customer trust, overall satisfaction and recovery satisfaction; and the influence amongst recovery satisfaction and customer loyalty is partially mediated by customer trust and overall satisfaction. Originality/value The study contributes to a whole conceptual comprehension of the essential determinants of customer loyalty from the combined perspectives of three theories, namely, justice theory, expectancy disconfirmation theory and commitment-trust theory. This study successfully differentiates the three dimensions of perceived justice and assesses them individually to discern and compare their influence on overall satisfaction, recovery satisfaction and trust. In addition, the study finds that the influence of recovery satisfaction on loyalty is partially and sequentially mediated by trust and overall satisfaction.

The mediating roles of renqing and ganqing in Chinese relationship marketing

2015 ◽  
Vol 6 (2) ◽  
pp. 156-176 ◽  
Author(s):  
Xinhua Zhou ◽  
Guicheng Shi ◽  
Matthew Tingchi Liu ◽  
Huimei Bu
Keyword(s):  
Relationship Marketing ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Social Relationship ◽  
Survey Methodology ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Content Type ◽  
Attitudinal Loyalty ◽  
Marketing Investments

Purpose – This paper aims to investigate the roles of renqing (reciprocal favor) and ganqing (positive affect) as consequences of relationship marketing investments (three dimensions: financial, social and structural) and antecedents of customer loyalty. Design/methodology/approach – A quantitative survey methodology using self-administered questionnaires has been adopted to collect data of 218 procurement staffs from the database of China Purchasing Managers’ Club. Hypotheses tests were conducted using structural equation modeling. Findings – The results reveal that financial and social relationship marketing investments, but not structural relationship marketing investments, are crucial in evoking renqing and ganqing. The results also provide strong evidence of the relationship between renqing and ganqing, which in turn are necessary determinants of customer loyalty. Originality/value – This research is among the first to examine and confirm renqing and ganqing as a mediating mechanism through which financial and social relationship marketing investments influence attitudinal loyalty, and also through attitudinal loyalty ultimately affects behavioral loyalty. Findings imply the need for Chinese firms in general, and business-to-business context in particular, to strategically lever on the key antecedents of customer loyalty including relationship marketing investments, renqing and ganqing, in pursuit of a more competitive advantage and long-term profit.

Impacts of environmental turbulence on entrepreneurial orientation and new product success

2014 ◽  
Vol 17 (2) ◽  
pp. 229-249 ◽  
Author(s):  
Stanley Kam-Sing Wong
Keyword(s):  
New Product Development ◽  
Entrepreneurial Orientation ◽  
Manufacturing Industry ◽  
New Product ◽  
Policy Implications ◽  
Three Dimensions ◽  
Environmental Turbulence ◽  
New Product Success ◽  
Content Type ◽  
Product Success

Purpose – What leads to new product success (NPS) is a very complex issue. Although prior research widely demonstrates that entrepreneurial orientation (EO) is a determinant for NPS and environmental turbulence is a form of unpredictability which impacts on the success of a product, little research has been conducted to examine if and to what extent environmental turbulence induces the EO behaviors of a firm and how these behaviors contribute to NPS. The paper aims to discuss these issues. Design/methodology/approach – This study, which used data collected from 244 China-based electronics manufacturers, proposed and tested the theoretical relationships among the three constructs in the context of the electronics industry in China. Findings – Results revealed that the three dimensions of EO (innovativeness, proactiveness and risk-taking) drive NPS. Environmental turbulence strongly influenced all three dimensions of EO, though its influence on NPS was mixed as there existed a strong negative but insignificant direct association between the two constructs. Innovativeness, which was found to be most effective in driving NPS in the EO and NPS relationship, was relatively less responsive to environmental turbulence than proactiveness. The study confirmed the postulated role of environmental turbulence in inducing the EO behaviors of a firm, signaling environmental turbulence, if tactfully leveraged, can play a positive role in new product development (NPD). Research limitations/implications – The study is quantitative using data emanating from the electronics manufacturing industry in China, further empirical study would be useful to verify and complement the results in other industries and other countries. Originality/value – This study contributes to the scholarly inquiry of EO and NPD by exploring the influences of environmental turbulence and EO on NPS. As environmental turbulence induces EO and EO mediates the relationship between environmental turbulence and NPS, simultaneous consideration of these two constructs can lend useful insight into their joint impacts on NPD. Theoretical and managerial implications were examined and policy implications, especially the practicality of the findings to policymakers in China, were discussed.

scholarly journals Corporate social responsibility and customer loyalty: exploring the role of identification, satisfaction and type of company

2015 ◽  
Vol 29 (1) ◽  
pp. 15-25 ◽  
Author(s):  
Andrea Pérez ◽  
Ignacio Rodríguez del Bosque
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Customer Loyalty ◽  
Commercial Banks ◽  
Three Dimensions ◽  
Content Type ◽  
Savings Banks ◽  
Csr Image ◽  
Corporate Social

Purpose – The aim of the authors of this paper is to propose a cognitive – affective – conative sequential model to study how three dimensions of corporate social responsibility (CSR) image (society, customers and employees) impact customer affective (identification and satisfaction) and behavioural (recommendation and repurchase) responses in the banking industry. The authors also test how the type of company (savings banks vs commercial banks) moderates customer responses to these three dimensions of CSR image. Design/methodology/approach – A multi-group structural equation model is tested using information collected from 648 savings banks’ customers and 476 commercial banks’ customers in Spain. Findings – The findings demonstrate that the perceptions of customer-centric CSR initiatives positively and consistently impact customer identification with the banking institution, satisfaction, recommendation and repurchase behaviours in the savings and commercial banks’ samples. The dimensions of CSR image that concern the activities oriented to society and employees only positively impact customer responses in the savings banks’ sample. Practical implications – The findings of this study can assist scholars in creating more informative CSR-based loyalty models that take into consideration new variables (satisfaction and type of company) and better approaches to the conceptualization of CSR image (e.g. the formative approach). The findings can also assist savings and commercial banks in better designing their CSR and communication initiatives to benefit from customer affective and conative responses. Originality/value – The contributions of the paper are threefold: the authors include satisfaction as a new variable in the study of the CSR-based loyalty model; the CSR image is conceptualized as a formative construct, and this provides new justifications for the mixed results reported by previous scholars who have analysed the effects of CSR image on customer loyalty; and the authors explore the moderating role of the type of company on the CSR-based loyalty model proposed in the paper.

scholarly journals High-value hi-tech product introduction in emerging countries

2017 ◽  
Vol 20 (2) ◽  
pp. 208-225 ◽  
Author(s):  
Shyama V. Ramani ◽  
Ajay Thutupalli ◽  
Eduardo Urias
Keyword(s):  
Civil Society ◽  
Multinational Enterprises ◽  
New Product ◽  
Emerging Countries ◽  
Three Dimensions ◽  
New Product Introduction ◽  
Public Agencies ◽  
Product Introduction ◽  
Content Type ◽  
Quality Technology

Purpose This paper aims to study how multinational enterprises (MNEs) can best integrate legitimacy concerns into their new product-launching strategy to successfully introduce high-value hi-tech innovations in emerging countries. Design/methodology/approach Theoretical constructs on the role and process of legitimacy construction for the introduction of a new product are built upon the existing literature. Then they are validated and refined through the formulation and analysis of case studies of the launch of genetically modified cotton seeds by Monsanto in India and a HIV/AIDS drug cocktail by Merck in Brazil. Findings Legitimacy construction can serve MNEs to face challenges successfully while launching high-value hi-tech products in emerging countries. Challenges to MNEs are likely to be founded on a combination of four types of uncertainties: technological, commercial, organizational and societal. Expected challengers are public agencies and actors representing civil society. An MNE can prepare itself through legitimacy construction along three dimensions: redesign of technology, revision of marketing strategy and non-market investments. To implement the aforesaid, MNEs can engage in outreach in the form of strategic patience, market transaction, business collaboration, compromise and/or confrontation with diverse carefully chosen stakeholders. Research limitations/implications The authors limited ourselves to tracing only the formal interactions of MNEs, while it is well-known that many informal and backdoor activities can also accompany their growth in emerging economies. Practical implications Legitimacy construction can help MNEs face challenges successfully while launching high-value hi-tech products in emerging countries. This calls for an evaluation of the systemic uncertainties followed by the formulation of a strategy for legitimacy construction and implementation through outreach to diverse systemic actors. Strategic patience can yield positive returns. Market transactions can serve as economic anchors. Collaboration can be pursued with parties who can share the costs of legitimization construction and/or reduce technological and marketing uncertainties. Confrontation should be the last choice. Compromise is the most probable but not the only outreach strategy possible after a confrontation. Social implications Legitimacy implies product acceptance not only from the targeted consumer but also other societal stakeholders concerned with the safety and equity of the consumption in the emerging country, especially when regulations are not well-defined and/or implemented. The two kinds of societal stakeholders which are likely to monitor MNEs are public agencies and civil society groups. Public agencies will be concerned about the quantity, quality, technology or price of the innovation to be introduced. Civil society and NGOs may help the MNE act as citizen watchdogs for the environment and vulnerable communities. Originality/value Theoretical constructs have been developed in this paper on the sources of challenges in new product introduction, the types of challengers and the components of the firm’s legitimacy construction strategy and its implementation through an outreach strategy.

Does guanxi influence product performance and customer loyalty?

2018 ◽  
Vol 12 (3) ◽  
pp. 233-252 ◽  
Author(s):  
Man Zhang ◽  
Janet Hartley
Keyword(s):  
Supply Chain ◽  
Social Network ◽  
Customer Loyalty ◽  
Positive Impact ◽  
New Product ◽  
Product Performance ◽  
Market Uncertainty ◽  
Content Type ◽  
New Product Performance ◽  
The Relationship

Purpose This paper aims to propose and test a model examining the relationship of guanxi with new product performance and customer loyalty in the context of internationalizing small- and medium-sized enterprises (SMEs) in China. Social network theory and information processing theory provide the theoretical lenses for this research. Design/methodology/approach Guanxi with suppliers, distributors and customers is measured as a second-order construct consisting of ganqing, renqing, and xinren/xinyong. Research hypotheses are tested using survey data (n = 212) gathered in Anhui and Shandong Provinces. The data are analyzed using smart partial least squares technique. Findings The findings reinforce existing studies, which show that a locally based social network can be extended to the success of early-internationalizing SMEs. Results also suggest that the relationship between guanxi and customer loyalty is stronger when technical uncertainty is low and when market uncertainty is low rather than high. Research limitations/implications The data were gathered from the point of view of the SMEs and may not accurately reflect the perspective of the foreign customer. The findings may not generalize beyond the regions surveyed. The study does not differentiate among the type of supply chain member, and the location of the supply chain member was not measured. Practical implications Although guanxi is typically viewed as being localized within a country, guanxi with suppliers, distributors and customers can provide information and resources needed for successful export products. Second, internationalizing SMEs must understand that even though guanxi has positive impact on new product performance which directly leads to customer loyalty only when uncertainty is low. Originality/value Although guanxi has been studied, there are a limited number of empirical studies of guanxi in a supply chain context and most focus on buyers’ guanxi with suppliers. The research on guanxi with customers and distributors is also limited. This research addresses this gap by focusing on guanxi with suppliers, distributors and customers.

The impact of training and development practices on innovation and financial performance

2019 ◽  
Vol 51 (7/8) ◽  
pp. 421-444 ◽  
Author(s):  
Alba Manresa ◽  
Andrea Bikfalvi ◽  
Alexandra Simon
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
New Product ◽  
Training And Development ◽  
Three Dimensions ◽  
Positive Relation ◽  
Specific Training ◽  
Content Type ◽  
The Impact ◽  
Positive Results

Purpose Over recent years, firms have been implementing novel human resource practices. The purpose of this paper is to analyse four specific training practices to determine if and up to what extent the adoption of such practices affects innovation and financial performance. Design/methodology/approach A Spanish sub-sample of the European Manufacturing Survey is used to contain the responses of 162 manufacturing firms. Findings The positive relation between T&D practices and innovative performance was partially accepted, as new-to-the-firm products and new services had a significant relation with these practices. Conversely, the hypothesis stating that there is a positive relation between a new-to-the-market product and the aforementioned T&D practices was rejected. Furthermore, the positive relation between these and financial performance was partially accepted. Research limitations/implications This research presents the following limitation: the small number of responses restricts the general reliability of the findings. The inclusion of other countries’ data using the same questionnaire would further enrich the analysis. Practical implications First, general training and development is not enough; thus, the present study evidences the positive results of specific training practices such as training and development for creativity and innovation (TD4CI) on firm performances. Second, it also reveals a relation between training practices and innovation by differentiating among the three dimensions of innovation (new product to the firm, new product to the market and new services). Moreover, the present research highlights the benefits of implementing these types of practices, not only for innovation performance but also for financial performance. This paper also suggests that not all the training practices have the same impact on firm performance. Consequently, the company should be clear about their main aim to obtain the highest performance. The third contribution is based on the Spanish context wherein training is not considered as an important organisational function. Thus, this study provides positive results showing that TD4CI might enhance firm performance. Last, the degree of detail of the different training practices analysed, the recent nature of the data related to their implementation and the link between implementation and organisation performance are also part of the contribution of the present analyses. Originality/value This research offers recent and relevant data about implementing novel T&D practices and their relation with firm performance.

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