Universität zu Köln

Worm, Stefan, Bharadwaj, Sundar G., Ulaga, Wolfgang and Reinartz, Werner J. (2017). When and why do customer solutions pay off in business markets? J. Acad. Mark. Sci., 45 (4). S. 490 - 513. NEW YORK: SPRINGER. ISSN 1552-7824

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Abstract

Manufacturers invest in customer solutions to differentiate their offerings and sustain profitability despite declining margins from goods sales. Notwithstanding strong managerial and academic interest, an examination of whether and explanations for when and why solutions translate into superior performance are lacking. We test hypotheses developed from the resource-based theory and transaction cost economics, supplemented with in-depth theory-in-use interviews, on primary and secondary data collected from 175 manufacturers. From a model that corrects for endogeneity, the findings suggest that, compared with other service offerings, solutions are associated with increased return on sales. This positive profitability effect is enhanced in firms with greater sales capabilities; it is stronger in industries with greater buyer power but weaker in technology-intensive industries. These results caution against the simplistic view of solutions as a universal route to gaining competitive advantage and aid in better identifying the role of solutions in a manufacturer's offering portfolio.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Worm, Stefan UNSPECIFIED UNSPECIFIED UNSPECIFIED Bharadwaj, Sundar G. UNSPECIFIED UNSPECIFIED UNSPECIFIED Ulaga, Wolfgang UNSPECIFIED UNSPECIFIED UNSPECIFIED Reinartz, Werner J. UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-227051
DOI:	10.1007/s11747-017-0529-6
Journal or Publication Title:	J. Acad. Mark. Sci.
Volume:	45
Number:	4
Page Range:	S. 490 - 513
Date:	2017
Publisher:	SPRINGER
Place of Publication:	NEW YORK
ISSN:	1552-7824
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language COMPETITIVE ADVANTAGE; SHAREHOLDER VALUE; COMPLEX PRODUCTS; FIRM VALUE; SERVICE; PERFORMANCE; ASSETS; ANTECEDENTS; IMPACT; GROWTH Multiple languages Business Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/22705