The impact of choice on co-produced customer value creation and satisfaction

2015 ◽  
Vol 32 (1) ◽  
pp. 15-25 ◽  
Author(s):  
Jason Flores ◽  
Arturo Z. Vasquez-Parraga
Keyword(s):  
Value Creation ◽  
Customer Value ◽  
Positive Impact ◽  
Economic Value ◽  
Organizational Outcomes ◽  
Supporting Evidence ◽  
Content Type ◽  
Empirically Supported ◽  
Individual Value ◽  
The Impact

Purpose – This study’s aim is to investigate whether offering a co-production opportunity as a choice or as the only means of service rendering influences customer value creation and satisfaction. This research incorporates two empirically supported sources of co-created value, relational and economic, and it investigates a new dimension of co-created value, individual value. The study focus supports the need for more empirically based guidance for the management and design of co-creation processes. Design/methodology/approach – A 2 × 2 between-subjects experimental design was utilized to test the choice/no-choice condition. Data were collected through a survey of 214 respondents who were selected on the basis of their familiarity with the context of the experimental scenarios. Findings – The results show that co-production as an option for service rendering has a stronger positive impact on value creation than does the context when co-production is necessary. Choice was found to positively influence relational and economic value. Value creation was found to mediate the choice and satisfaction relationship. Individual value had the strongest relative impact on satisfaction but was not significantly related to choice. Practical implications – Designers and managers of co-production-enabling processes can enhance customer and organizational outcomes simply by offering customers a choice when considering whether or not to engage in co-production. Originality/value – This originality of this study lies in the supporting evidence found for the influence of choice on value creation and the empirical corroboration for individual value creation as a source of co-created value. The on-line context of this study in this context is also novel.

scholarly journals Intangible-driven value creation: supporting and obstructing factors

2014 ◽  
Vol 18 (3) ◽  
pp. 87-100 ◽  
Author(s):  
Elena Shakina ◽  
Mariya Molodchik
Keyword(s):  
Value Creation ◽  
Investment Decision ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Intangible Capital ◽  
Future Research ◽  
Unexpected Result ◽  
Content Type ◽  
The Impact

Purpose – This study aims to investigate the factors that support or obstruct market value creation through intangible capital. Design/methodology/approach – The paper explores the impact of intangibles and exogenous shocks on corporate attractiveness for investors measured by market value added. Specifically, the relationship between intangible-driven outperformance of companies, measured by economic value added (EVA) and a number of intangible drivers on macro-, meso- and micro-levels is analyzed. It is supposed that the process of value creation is not only confined to companies’ performances. The empirical research was conducted on > 900 public companies from Europe and the USA during the period of 2005-2009. Findings – The study establishes that investment attractiveness is affected by intangibles. It is found that a company’s experience, size and innovative focus facilitate value creation. An unexpected result was revealed concerning countries’ education level, which appears to be an obstructive condition for intangible-driven value creation. Research limitations/implications – The study reveals the significance of industry belonging for intangible-driven value creation. Nevertheless, it does not discover the particular characteristics of industry that influence corporate attractiveness for investors. These issues could be addressed in future research. Practical implications – The findings established in this study extend the understanding of the phenomenon of intangible capital and enable the improvement of investment decision-making. Originality/value – The study emphasizes the holistic framework of market value creation by analyzing a number of strategic crucial factors in line with EVA.

The impact on competitiveness of customer value creation through relationship capabilities and marketing innovation

2019 ◽  
Vol 34 (3) ◽  
pp. 618-627 ◽  
Author(s):  
José Sánchez-Gutiérrez ◽  
Pablo Cabanelas ◽  
Jesús F. Lampón ◽  
Tania E. González-Alvarado
Keyword(s):  
Value Creation ◽  
Customer Value ◽  
Structural Equation ◽  
Customer Relationships ◽  
Content Type ◽  
Customer Needs ◽  
Marketing Innovation ◽  
Use Of Technology ◽  
Management Capabilities ◽  
The Impact

PurposeThe identification of customer needs through relationship management and their transformation into marketing innovation are two key processes in customer value creation. When combined, they can improve a firm’s competitive position, not only in terms of profitability but also by reducing costs and promoting the use of technology. The purpose of this paper is to analyze the link between managerial relational capability and marketing innovation in customer value creation, and to look at how that value creation affects competitiveness.Design/methodology/approachWe analyze 450 small- and medium-sized enterprises (SMEs) in the furniture industry in the metropolitan area of Guadalajara (Mexico). To this sample is applied a confirmatory factor analysis and a structural equation model to analyze the impact of management capabilities in relationships and marketing innovation on customer value creation and to determine how the value created affects competitiveness.FindingsThe results show that management capabilities in customer relationships and in the way they convert knowledge of customer needs into specific choices in the market have a positive effect on customer value creation, as well as on financial performance, cost optimization and the use of technology, all of which can be used as indicators of competitiveness.Originality/valueThe study covers customer value creation in an emerging economy, that of Mexico, and relates it to business competitiveness from a holistic point of view which goes beyond profitability by also including cost reduction and the use of technology.

Employee stock ownership and value creation: evidence from system GMM estimates

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Riadh Garfatta ◽  
Imen Zorgati
Keyword(s):  
Value Creation ◽  
Large Scale ◽  
Positive Impact ◽  
Stock Ownership ◽  
Economic Implications ◽  
System Gmm ◽  
Content Type ◽  
Employee Stock Ownership ◽  
The Impact ◽  
The Relationship

PurposeThis paper attempts to examine the nature of the relationship between employee stock ownership (ESO) and value creation in the context of shareholder governance.Design/methodology/approachThe research sample includes 129 French CAC All-Tradable index companies observed from 2015 to 2019. The system generalised moment (GMM) estimator (Blundell and Bond, 1998) is used in the dynamic panel.FindingsThe results estimated from the system GMM model show a threshold effect in the ESO–value creation relationship. For an employee shareholding ratio less than 3%, ESO has a positive impact on value creation; above this level, the impact becomes negative. Furthermore, the nature of the relationship largely depends on the form of employee shareholding.Research limitations/implicationsThese results are with strong economic implications. The risk of CEO entrenchment increases with the rise in share parts owned by employees. Companies with high shareholder value creation are companies with low employee ownership.Originality/valueThe main contribution in this study is that the form of ESO was considered in our analysis, which was not done in previous research. Another contribution is the use of recent data (2015–2019), which takes into account the large-scale development of French ESO practices, especially the absence of crises that may bias the results.

Empowerment in call centers and customer satisfactionEmpoderamento em call centers e satisfação do clienteEmpoderamiento del centro de llamadas y satisfacción del cliente

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Teresa Proenca ◽  
Helena Rodrigues
Keyword(s):  
Call Center ◽  
Structural Equation ◽  
Process Model ◽  
Positive Impact ◽  
Call Centers ◽  
Organizational Outcomes ◽  
Equation Modeling ◽  
Content Type ◽  
Analytical Tools ◽  
The Impact

Purpose Call center is a large and growing sector worldwide and is facing important human resource management (HRM) and service challenges. The purpose of this study is to analyze the impact of structural empowerment (SE) and psychological empowerment (PE) on customer satisfaction (CS) through employee job satisfaction (JS) at a call center in Portugal. Design/methodology/approach Data were collected by means of a survey handed over personally to 267 employees at the call center of a telecommunication company. This was then linked to their respective net promoter score (CS) provided by the call center. Confirmatory factor analysis and structural equation modeling were used as analytical tools. Findings SE affects PE, and both have a positive impact on JS. Empowerment impacts CS: SE positively affects CS mediated by PE; and PE affects CS mediated by JS. Practical implications This study emphasizes the importance of the use of organizational practices of SE in call centers to achieve two important organizational outcomes: employee JS and CS. Originality/value This study tests a process model involving two domains, HRM (employee side) and service delivery (customer side), which are traditionally dealt with separately in the context of call centers. This helps to understand how HRM polices are connected to CS. Although some of these relationships have been studied separately in different contexts, the research offers a strong methodological design by linking employee perceptions of empowerment with data provided by the firm on CS.

scholarly journals Mood regulation, customer participation, and customer value creation in hospitality services

2017 ◽  
Vol 29 (12) ◽  
pp. 3063-3081 ◽  
Author(s):  
Babak Taheri ◽  
Filipe J. Coelho ◽  
Carlos M.P. Sousa ◽  
Heiner Evanschitzky
Keyword(s):  
Value Creation ◽  
Customer Value ◽  
Economic Value ◽  
Customer Participation ◽  
Mood Regulation ◽  
Cross Sectional ◽  
Content Type ◽  
Regulatory Processes ◽  
Relational Value ◽  
The Relationship

Purpose Customers play a key role in value creation. Not surprisingly, research has investigated customers’ motivations to engage in the creation of value. Thus, this study aims to assess the link between mood-regulatory processes and customer participation in value creation. Design/methodology/approach This study develops a model that relates mood-regulatory processes to customer participation and customer value creation, and tests it with a sample of 419 hotel customers, using partial least squares estimation. Findings It is found that mood clarity relates directly with customer relational value; mood monitoring relates directly with customer participation as well as directly and indirectly with customer economic and relational value; and mood repair relates directly with customer participation and customer economic value, as well as indirectly with customer economic and relational value. Research limitations/implications This is a cross-sectional study limited only to hotels in Iran. This is the first study to evaluate the relationship between mood regulation with customer participation and value creation. Hospitality service organizations interested in promoting customer participation may consider mood as a segmentation criterion. Originality/value Value creation theory was applied to identify the relationship among customer mood regulation, participation, economic value and relational value, as it is first attempted in the hospitality studies.

scholarly journals Consumers’ reactions to unsubstantiated claims about ecological products

2020 ◽  
Vol 37 (5) ◽  
pp. 569-578 ◽  
Author(s):  
Magnus Söderlund ◽  
Jan Mattsson
Keyword(s):  
Positive Impact ◽  
Point Of View ◽  
Supporting Evidence ◽  
Content Type ◽  
Moderating Factors ◽  
Alternative Facts ◽  
The Subject ◽  
The Impact ◽  
Practical Implications ◽  
Product Claims

Purpose The purpose of this study was to examine the impact of unsubstantiated claims that a product is “ecological.” Design/methodology/approach A between-subjects experimental design was used in which the absence versus the presence of an (unsubstantiated) ecological claim regarding a product was a manipulated factor. The design comprised four products, representing non-ingestible/ingestible products and familiar/unfamiliar brands. These two aspects were seen as potentially moderating factors with respect to the impact of ecological claims. Findings The results show that ecological product claims boosted beliefs that a product is indeed ecological. This influence was not moderated by non-ingestible/ingestible and familiar/unfamiliar product characteristics. Moreover, ecological product claims enhanced conceptually related product beliefs, namely, beliefs that the product is natural, environmentally friendly and healthy. Ecological claims also had a positive impact on the attitude toward the product. Practical implications The results imply that influencers who want a receiver to believe that a product is ecological can expect to be successful by merely claiming that a product is ecological. Social implications From a societal point of view, however, and in an era in which “alternative facts” and “post-truths” are becoming the subject of increasing concern, the results are problematic, because they underline that customers can be made to believe in claims even though no supporting evidence is provided. Originality/value The results imply that influencers who want a receiver to believe that a product is ecological can expect to be successful by merely claiming that a product is ecological. From a societal point of view, however, and in an era in which “alternative facts” and “post-truths” are becoming the subject of increasing concern, the results are problematic, because they underline that customers can be made to believe in claims even though no supporting evidence is provided.

A theoretical and methodological framework for social economic value theory

2017 ◽  
Vol 44 (2) ◽  
pp. 169-180 ◽  
Author(s):  
Leon Monroe Miller
Keyword(s):  
Value Creation ◽  
Social Economic ◽  
Economic Value ◽  
Value Added ◽  
Theoretical Framework ◽  
Value Theory ◽  
Economic Research ◽  
Content Type ◽  
Technological Age ◽  
The Impact

Purpose The purpose of this paper is to contribute to research on the impact that the creation of value theory has on professional, organizational, and economic performance. However, a special emphasis is on explicating the theoretical foundation of the concept. Design/methodology/approach This paper is based on a hermeneutic study of the relationship between value creation and managing economic resources. The paper traces the value creation concept to its roots from the foundation of Western Civilization through the value theory of Adam Smith and up to recent technological age advancements in value theory. Findings Since its emergence the value concept has been explicated in an abundance of literature. However, there has been very little in regards to explanations detailing the theoretical underpinnings of the concept. According to John Stuart Mill, attempts to apply value theory will fail (due to misinformation or inaccurate information) without inclusiveness of the full scope of what is relevant for social science and social economic research. Research limitations/implications Although studies on organizational behavior encompass the economic aspects of research economic research tends to be narrower in scope making it difficult to verify some value claims in economic terms. This is especially true in terms of making claims in regards to the connection between economic value theory, social value theory, the Philosophy of Economics, and the Philosophy of Science. Practical implications The study introduces a theoretical framework for integrating the value added and value creation concepts as a strategy for increasing shareholder benefits, stakeholder capital, and social capital. Social implications The paper explains how the value creation concept contributes to an increase in wealth, prosperity, flourishing by drawing from a technological age approach to value creation. Originality/value The paper fills the void in the literature regarding the theoretical framework of the concept thus undergirds claims about its practical benefits by clarifying its theoretical framework.

Financial institutions mergers: a strategy choice of wealth maximisation and economic value

2020 ◽  
Vol 12 (4) ◽  
pp. 495-529
Author(s):  
Mohamad Hassan ◽  
Evangelos Giouvris
Keyword(s):  
Credit Risk ◽  
Event Study ◽  
Financial Institutions ◽  
Value Creation ◽  
Economic Value ◽  
Abnormal Returns ◽  
Study Analysis ◽  
Event Window ◽  
Content Type ◽  
Merger Announcement

Purpose This study Investigates Shareholders' value adjustment in response to financial institutions (FIs) merger announcements in the immediate event window and in the extended event window. This study also investigates accounting measures performance, comparison of post-merger to pre-merger, including several cash flow measures and not just profitability measures, as the empirical literature review suggests. Finally, the authors examine FIs mergers orientations of diversification and focus create more value for shareholders (in the immediate announcement window and several months afterward) and/or generates better cash flows, profitability and less credit risk. Design/methodology/approach This study examines FIs merger effect on bidders’ shareholder’s value and on their observed performance. This examination deploys three techniques simultaneously: a) an event study analysis, to estimate and calculate abnormal returns (ARs) and cumulative abnormal returns (CARs) in the narrow windows of the merger announcement, b) buy and hold event study analysis, to estimate ARs in the wider window of the event, +50 to +230 days after the merger announcement and c) an observed performance analysis, of financial and capital efficiency measures before and after the merger announcement; return on equity, liquidity, cost to income ratio, capital to total assets ratio, net loans to total loans, credit risk, loans to deposits ratio, other expenses and total assets, economic value addition, weighted average cost of capital and return on invested capital. Deal criteria of value, mega-deals, strategic orientation (as in Ansoff (1980) growth strategies), acquiring bank size and payment method are set as individually as control variables. Findings Results show that FIs mergers destroy share value for the bidding firms pursuing a market penetration strategy. Market development and product development strategies enable shareholders’ value creation in short and long horizons. Diversification strategies do not influence bidding shareholders’ value. Local bank to bank mergers create shareholders’ value and enhance liquidity and economic value in the short run. Bank to bank cross border mergers create value for bidders’ in the long term but are associated with high costs and higher risks. Originality/value A significant advancement over the current literature is in assessing mergers, not only for bank bidders but also for the three pillars FIs of the financial sector; banks, real-estate companies and investment companies mergers. It is an improvement over current finance literature because it deploys two different strategies in the analysis. At a univariate level, shareholder value creation and market reaction to merger announcements are examined over short (−5 or +5 days) and long (+230 days) windows of the event. Followed by regressing, the resultant CARs and BHARs over financial performance variables at the multivariate level.

Farm wages and public works

2015 ◽  
Vol 8 (1) ◽  
pp. 19-72 ◽  
Author(s):  
Kanika Mahajan
Keyword(s):  
Theoretical Model ◽  
Wage Rate ◽  
Fixed Effects ◽  
Positive Impact ◽  
Wage Growth ◽  
State Level ◽  
Random Allocation ◽  
Farm Sector ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of National Rural Employment Guarantee Scheme (NREGS) on farm sector wage rate. This identification strategy rests on the assumption that all districts across India would have had similar wage trends in the absence of the program. The author argues that this assumption may not be true due to non-random allocation of districts to the program’s three phases across states and different economic growth paths of the states post the implementation of NREGS. Design/methodology/approach – To control for overall macroeconomic trends, the author allows for state-level time fixed effects to capture the differences in growth trajectories across districts due to changing economic landscape in the parent-state over time. The author also estimates the expected farm sector wage growth due to the increased public work employment provision using a theoretical model. Findings – The results, contrary to the existing studies, do not find support for a significantly positive impact of NREGS treatment on private cultivation wage rate. The theoretical model also shows that an increase in public employment work days explains very little of the total growth in cultivation wage post 2004. Originality/value – This paper looks specifically at farm sector wage growth and the possible impact of NREGS on it, accounting for state specific factors in shaping farm wages. Theoretical estimates are presented to overcome econometric limitations.

Values and career behaviours of entrepreneurs and employees

2019 ◽  
Vol 26 (7) ◽  
pp. 1607-1625
Author(s):  
Anita Gaile ◽  
Ilona Baumane-Vitolina ◽  
Erika Sumilo ◽  
Daina Skiltere ◽  
Ricardo Martin Flores
Keyword(s):  
Career Success ◽  
Structural Equation ◽  
Positive Impact ◽  
Career Adaptability ◽  
Individual Values ◽  
Content Type ◽  
Positive Effects ◽  
Entrepreneurial Behaviour ◽  
Culture Development ◽  
Individual Value

Purpose The purpose of this paper is to determine the differences in the values and behaviours of employees and entrepreneurs and to develop guidelines for employers to foster entrepreneurial thinking in their organisations. Design/methodology/approach To determine individual behaviours, the authors used the career adaptability scale developed by Savickas and Porfelli (2012), complemented with the statements regarding relationships in the workplace and reward, designed by Gattiker and Larwood (1986). The individual values were evaluated by Schwartz’s individual value framework. The career success of individuals was defined by income level and job satisfaction. Data from a sample of 473 respondents were analysed using structural equation modelling. Findings This paper reveals that there are differences in the behaviours and the values of employees and entrepreneurs. Employees are more concerned with relationships at the workplace, rewards and confidence, whereas entrepreneurs focus solely on relationships. Self-direction value has a direct positive impact. Universalism, conformism, achievement, stimulation and safety have indirect positive effects on career success for employees. There is no specific individual value driving career success for entrepreneurs. Originality/value This paper follows the recent trends in organisational culture development whereby organisations seek to incorporate the entrepreneurial mindset at all levels of the organisation. Until now, there has been scarce empirical evidence on the differences between entrepreneurial and employee values. This research provides evidence that the value gap between these two distinct groups is considerable enough to question the ability of the average employee to adopt the entrepreneurial behaviour required by modern organisations.

Sign in / Sign up

Export Citation Format

Share Document