Beverly K. Brockman

The Role of Existing Knowledge in New Product Innovativeness and Performance

The purpose of this study is to provide a more thorough assessment of the link between existing knowledge and organizational performance than currently exists in the literature. We identify factors and processes influential in the management of existing knowledge within the areas of learning culture, knowledge building, and organizational performance. Through structural equation modeling, a more thorough examination is given of the role existing knowledge plays in new product performance and innovativeness. In completing this task, we provide insight into the subprocesses of knowledge building by evaluating the influence of shared interpretation and two aspects of information acquisition—efficiency and degree of innovativeness of newly acquired information—on new product development (NPD) outcomes. Included in the examination of these processes are organizational culture and structure characteristics believed to influence knowledge management success.

The moderating effect of organizational cohesiveness in knowledge use and new product development

This study examined the influence of cohesiveness, an organizational cultural variable, on knowledge use and organizational learning within the context of new product development (NPD). The authors surveyed NPD managers from 323 firms, representing a wide range of product classifications, about their firms’ levels of cohesiveness and NPD efforts. Using structural equation modeling, the authors demonstrated that organizational cohesiveness has a moderating influence on both an organization’s use of its existing knowledge to develop innovative new products and the resulting performance of those products, which emphasizes how influential organizational “mind-set” can be. By considering cohesiveness an influence in new product innovativeness and new product performance, the authors incorporated a cultural variable that has received little attention in the NPD and more general marketing literature. This research reveals that much is left to learn about cohesiveness and that understanding it can advance knowledge use, organizational learning, and innovation.

Customer Orientation and Performance in Small Firms: Examining the Moderating Influence of Risk‐Taking, Innovativeness, and Opportunity Focus

Customer orientation is considered to be an essential element for small firm success despite relatively little empirical evidence to support such a claim. This research examines the customer orientation–performance relationship among 180 small firms, and the moderating influence of risk‐taking, innovativeness, and opportunity focus on that relationship. Results support the overall positive influence of customer orientation on performance and indicate that the influence is stronger as risk‐taking, innovativeness, and opportunity focus increase. Interestingly, customer orientation does not positively influence small firm performance under low levels of risk‐taking, innovativeness, and opportunity focus.

The evolution of organizational learning in new venture development

In this conceptual piece, the author describes the evolution of organizational learning by applying key aspects of Crossan, Lane, and Whites (1999) 4I framework and Greeno, Collins, and Resnicks (1996) dominant learning classifications to the stages of new venture development. The overarching premise is that the firm must evolve from individual/small group learning, based in action learning, to advanced cognitive learning, built on critical dynamic capabilities. For each new venture stage, propositions regarding the relevance of each dominant learning classification, 4I framework level of learning, and 4I framework stage are presented, with a discussion of dynamic capability and critical skill development. The proposed evolution offers a framework for debate, empirical consideration and prescriptive guideline development.

The Role of Buyer Trust in Outsourced CRM: Its Influence on Organizational Learning and Performance

ABSTRACT Purpose: Company outsourcing of customer relationship management (CRM) functions is increasing (Kalaignanam and Varadarajan 2012). Although outsourcing CRM may provide financial benefits, the tasks of developing and utilizing the complex, cross-functional processes needed to gain enhanced customer knowledge from CRM may be more difficult when some or all CRM activities are outsourced. Trust in the information provided by the outsourced CRM supplier is vital. In this study, the authors examine the influence of buyer trust in its outsourced CRM supplier on cross-functional learning processes and firm performance within the buyer firm. Methodology: Data were collected from a survey of marketing managers in 221 firms. LISREL 9.2 was used to assess convergent, discriminant, and nomologic validity using the two-step approach (Anderson and Gerbing 1988). Convergent and discriminant validity were evaluated in the measurement model phase, whereas the structural model provided an appraisal of nomologic validity. Findings: The results provide evidence of buyer firm trust in the outsourced CRM supplier playing a critical role in the buyer firm’s success with information sharing, and both trust and information sharing strongly influencing information interpretation and information access in the buyer firm. All three organizational learning processes positively influence buyer firm customer satisfaction/retention and market performance. Research implications: An important area for future research is the possibility of varying levels of trust needed for success with outsourced CRM depending on the buyer firm’s goals for its CRM system. It is possible that the simpler CRM functions could be outsourced effectively through efficiency strategies that do not require significant levels of trust, whereas the more complex CRM activities that affect organizational learning require more stringent coordination and inter-organizational development. Varadarajan’s (2009) cost versus quality classifications of outsourcing could be a useful starting point for this type of analysis. Considering the finding in this study that information sharing is critical for information interpretation and information access in the buyer firm, another area for future research is possible differences in the extent of information sharing required by firms that are outsourcing CRM versus those that conduct the CRM function in-house. One starting point could be possible differences in relevance among Maltz and Kohli’s (1996) factors affecting information dissemination. Practical implications: For effective use of CRM data, it is important for buyer firms to develop trust in their outsourced CRM supplier. Managers can assist in this by communicating qualifications of the outsourced CRM supplier, such as any trade-specific certifications, awards, information about the supplier’s number of years in business, and examples of other companies the supplier has assisted. Managers can also help employees develop confidence in the supplier’s integrity by sharing the supplier’s code of ethics and serving as a champion for the supplier. In addition, firms engaged in outsourced CRM are encouraged to develop reward systems that motivate employees to build relationships with their counterparts in the supplier firm, and it would be useful for the buyer firm to help its employees understand the importance of the CRM outsourcing relationship to the buyer firm’s success. Finally, it is important for management to provide opportunities for interaction between the outsourcing partner and key buyer firm employees who will use the CRM data, to encourage effective processes in information sharing, information interpretation, and information access. Contribution of the article: This article addresses the significance of outsourcing the CRM function and provides evidence that buyer trust in its CRM supplier is a critical factor in its utilization of CRM data for organizational learning and firm performance. It also demonstrates that effective sharing of information, cross-functional integration of customer data, and CRM information accessibility are critical for firm success.