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Firms' customer responsiveness and performance: the moderating roles of dyadic competition and firm's age
Linnaeus University, School of Business and Economics, Department of Marketing.ORCID iD: 0000-0003-0455-0643
2014 (English)In: The journal of business & industrial marketing, ISSN 0885-8624, E-ISSN 2052-1189, Vol. 29, no 1, p. 34-44Article in journal (Refereed) Published
Abstract [en]

Purpose - The literature reports mixed findings on the performance impact of market orientation and a lack of attention to the moderating roles of dyadic competition and firm's age. The purpose of this paper is to explore the relationship between customer responsiveness and performance of industrial firms and to consider the moderators. Design/methodology/approach - Drawing on competitive dynamics literature, a contingency model is developed. Hypotheses were tested on 350 Swedish industrial firms that market clean technology to business customers. Findings - First, the main competitor's cost leadership weakens the positive performance impact of the industrial firm's customer responsiveness. An interpretation would be that it is difficult for product firms to overcome competition based on low costs. Second, the industrial firm's age weakens the positive performance impact of the industrial firm's customer responsiveness. This indicates that the firm's responsiveness advantage diminishes as strategies of competing firms converge. Research limitations/implications - By adding literature on competitive dynamics the study contributes to theory. The article shows that dyadic competition and firm's age matter for the relationship between customer responsiveness and performance. Practical implications - The industrial firm may keep an efficient customer responsiveness strategy by reducing its vulnerability to low costs of the main competitor. Also, an ability of developing the content of the firm's responsiveness strategy would favor the strategy uniqueness and efficiency. Originality/value - The article presents a new model that shows the performance impact of the industrial firm's customer responsiveness, including the moderating roles of the main competitor's competitive strategy and the firm's age. By including the contingencies, the model explains mixed findings in the literature regarding relationships between customer responsiveness and performance.

Place, publisher, year, edition, pages
2014. Vol. 29, no 1, p. 34-44
Keywords [en]
Performance, Industrial marketing, competition, Market orientation, Responsiveness, Competitive dynamics
National Category
Economics and Business
Research subject
Economy
Identifiers
URN: urn:nbn:se:lnu:diva-33308DOI: 10.1108/JBIM-01-2011-0004ISI: 000331478900004Scopus ID: 2-s2.0-84894319673OAI: oai:DiVA.org:lnu-33308DiVA, id: diva2:708010
Available from: 2014-03-26 Created: 2014-03-26 Last updated: 2018-05-17Bibliographically approved

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Pehrsson, Anders

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
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  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
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  • nn-NB
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  • Other locale
More languages
Output format
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  • text
  • asciidoc
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