Service innovation capability for enhancing marketing performance: an SDL perspectives
Abstract
This study was conducted to propose dan test a conceptual model for solving a research gap on the influence of customer orientation on marketing performance through a strategic bridge variable, service innovation capability, and consumer-centric strategy. We adopt the service-dominant logic as a basis for solving the research gap for its coverage on the value and service value innovation for attracting customers and as a stepping-stone for enhancing marketing performance. Data were collected from 145 service enterprises in Pontianak, West Kalimantan, Indonesia, as our samples for testing the proposed research model, using the software of AMOS-structural equation modeling. The main finding of this study is a strategic path for enhancing marketing performance through customer orientation and the capability for service value-creating.
Keyword : customer orientation, customer-centric strategy, service innovation capability, marketing performance, service- dominant logic, Indonesia
How to Cite
Heng, L., Ferdinand, A. T., Afifah, N., & Ramadania, R. (2020). Service innovation capability for enhancing marketing performance: an SDL perspectives. Business: Theory and Practice, 21(2), 623-632. https://doi.org/10.3846/btp.2020.12163
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Jian, Z., & Zhou, Y. (2015). The impacts of corporate social capital and market orientation on service innovation performance: mediating role of organizational learning. LISS 2014 (pp. 1427–1431). Springer. https://doi.org/10.1007/978-3-662-43871-8_206
Jiménez-Zarco, A. I., Martínez-Ruiz, M. P., & Izquierdo-Yusta, A. (2011). Key service innovation drivers in the tourism sector: empirical evidence and managerial implications. Service Business, 5(4), 339–360. https://doi.org/10.1007/s11628-011-0118-6
Kroehne, U., Funke, F., & Steyer, R. (2003). (Why) Should we use SEM? – Pros and cons of Structural Equation Modelling. MPR-online, 8.
Kuppelwieser, V. G., & Finsterwalder, J. (2016). Transformative service research and service dominant logic: Quo Vaditis? Journal of Retailing and Consumer Services, 28, 91–98. https://doi.org/10.1016/j.jretconser.2015.08.011
Kuzgun, E., & Asugman, G. (2015). Value in services – a service dominant logic perspective. Procedia – Social and Behavioral Sciences, 207, 242–251. https://doi.org/10.1016/j.sbspro.2015.10.093
Lamberti, L. (2013). Customer centricity: the construct and the operational antecedents. Journal of Strategic Marketing, 21(7), 588–612. https://doi.org/10.1080/0965254X.2013.817476
Leavy, B. (2005). Value pioneering – how to discover your own “blue ocean”: interview with W. Chan Kim and Renée Mauborgne. Strategy & Leadership, 33(6), 13–20. https://doi.org/10.1108/10878570510631611
Leavy, B. (2018). Value innovation and how to successfully incubate “blue ocean” initiatives. Strategy & Leadership, 46(3), 10–20. https://doi.org/10.1108/SL-02-2018-0020
Li Sa, M. L., Choon-Yin, S., Chai, Y. K., & Aik Joo, J. H. (2019). Knowledge creation process, customer orientation and firm performance: Evidence from small hotels in Malaysia. Asia Pacific Management Review, 25(2), 65–74. https://doi.org/10.1016/j.apmrv.2019.07.002
Limakrisna, N., & Yoserizal, S. (2016). Determinants of marketing performance: empirical study at National Commercial Bank in Jakarta Indonesia. Springerplus, 5(1), 1693. https://doi.org/10.1186/s40064-016-3362-3
Liu, C.-H. S., & Lee, T. (2019). The multilevel effects of transformational leadership on entrepreneurial orientation and service innovation. International Journal of Hospitality Management, 82, 278–286. https://doi.org/10.1016/j.ijhm.2018.10.006
Liu, Y., Li, X., & Dong Maggie, C. (2019). The role of customer orientation in key account managers’ performance: a client network perspective. Journal of Business & Industrial Marketing, 34(7), 1592–1605. https://doi.org/10.1108/JBIM-09-2017-0229
Manral, L., & Harrigan, K. R. (2018). Corporate advantage in customer-centric diversification. Journal of Strategic Marketing, 26(6), 498–519. https://doi.org/10.1080/0965254X.2017.1299789
Matthyssens, P., Bocconcelli, R., Pagano, A., & Quintens, L. (2015). Aligning Marketing and Purchasing for new value creation. Industrial Marketing Management. https://doi.org/10.1016/j.indmarman.2015.07.016
Maurya, U. K., Mishra, P., Anand, S., & Kumar, N. (2015). Corporate identity, customer orientation and performance of SMEs: Exploring the linkages. IIMB Management Review, 27(3), 159–174. https://doi.org/10.1016/j.iimb.2015.05.001
Mukerjee, K., & Shaikh, A. (2019). Impact of customer orientation on word-of-mouth and cross-buying. Marketing Intelligence & Planning, 37(1), 97–110. https://doi.org/10.1108/MIP-01-2018-0030
Nada, N., & Ali, Z. (2015). Service value creation capability model to assess the service innovation capability in SMEs. Procedia CIRP, 30, 390–395. https://doi.org/10.1016/j.procir.2015.02.218
Naidoo, V. (2010). Firm survival through a crisis: The influence of market orientation, marketing innovation and business strategy. Industrial Marketing Management, 39(8), 1311–1320. https://doi.org/10.1016/j.indmarman.2010.02.005
Nasution, H. N., Mavondo, F. T., Matanda, M. J., & Ndubisi, N. O. (2011). Entrepreneurship: Its relationship with market orientation and learning orientation and as antecedents to innovation and customer value. Industrial Marketing Management, 40(3), 336–345. https://doi.org/10.1016/j.indmarman.2010.08.002
O’Dwyer, M., & Gilmore, A. (2018). Value and alliance capability and the formation of strategic alliances in SMEs: The impact of customer orientation and resource optimisation. Journal of Business Research, 87, 58–68. https://doi.org/10.1016/j.jbusres.2018.02.020
Outi, N., Dimitrios, B., & Roger, M. (2007). Customer empowerment in tourism through consumer centric marketing (CCM). Qualitative Market Research: An International Journal, 10(3), 265–281. https://doi.org/10.1108/13522750710754308
Peterson, R. A., & Crittenden, V. L. (2018). Exploring customer orientation as a marketing strategy of Mexican-American entrepreneurs. Journal of Business Research. https://doi.org/10.1016/j.jbusres.2018.12.059
Racela, O. C. (2014). Customer orientation, innovation competencies, and firm performance: A proposed conceptual model. Procedia-Social and Behavioral Sciences, 148, 16–23. https://doi.org/10.1016/j.sbspro.2014.07.010
Ross, B. (2009). Ten tips to winning at consumer centricity: for retailers and manufacturers. The Journal of Consumer Marketing, 26(6), 450–454. https://doi.org/10.1108/07363760910988265
Rust, R. T., Moorman, C., & Bhalla, G. (2010). Rethinking marketing. Harvard Business Review, 88(1/2), 94–101.
Scheinbaum, A. C., & Wang, S. W. (2018). Customer centricity and guanxi prevalence as social capital: a study of international business relationships. Journal of Business & Industrial Marketing, 33(8), 1209–1220. https://doi.org/10.1108/JBIM-03-2017-0070
Shah, D., Rust, R. T., Parasuraman, A., Staelin, R., & Day, G. S. (2006). The path to customer centricity. Journal of Service Research, 9(2), 113–124. https://doi.org/10.1177/1094670506294666
Shelby, D. H., & Caroline, D. (2004). The normative imperatives of business and marketing strategy: grounding strategy in resource‐advantage theory. Journal of Business & Industrial Marketing, 19(1), 5–22. https://doi.org/10.1108/08858620410516709
Singh, R., & Venugopal, P. (2015). The impact os salesperson customer orientation on sales performance via mediating mechanism. Journal of Business & Industrial Marketing, 30(5), 594–607. https://doi.org/10.1108/JBIM-08-2012-0141
Smirnova, M. M., Rebiazina, V. A., & Frösén, J. (2018). Customer orientation as a multidimensional construct: Evidence from the Russian markets. Journal of Business Research, 86, 457–467. https://doi.org/10.1016/j.jbusres.2017.10.040
Sugiyarti, G., Ferdinand, A. T., & Nurchayati, T. (2018). Acculturative products uniqueness antecedence for successful marketing performance. DLSU Business & Economics Review, 28(1), 11.
Szymańska, E., Dziedzic, E., & Rutkowski, A. (2017). Organisational innovations in health resort-based tourism. Business: Theory and Practice, 18(1), 54–63. https://doi.org/10.3846/btp.2017.006
Tabachnick, B. G., & Fidell, L. S. (2012). Using multivariate statistics (6th ed.). Pearson.
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