Henrikki Tikkanen

Managerial cognition, action and the business model of the firm

– The purpose of the paper was to outline a generic framework for the business model and illuminate its linkages to managerial cognition., – The paper reviewed the focal literature focusing on the actions and evolution of a firm and built a synthesis that describes the different components of a business model., – The main finding was that a business model is essentially both a cognitive phenomenon as well as being built on the material aspects of a firm., – The paper proposes that the business model can be scrutinized in future studies, especially from the viewpoints of cognition, thus creating new avenues for intra‐firm evolutionary studies., – The paper found several implications for practising managers. First, the concept itself creates possibilities for self‐analysis and scenario building. Second, the understanding that a business model is systemic helps managers to evaluate their actions vis‐a‐vis the evolutionary path of the business model. Third, the outlined business model is useful in executive education as it creates a cognitive map of the various aspects of business activities., – The paper offers new insights into the functions and evolution of firms and will be of interest to both researchers and practising managers.

Exploring virtual worlds: success factors in virtual world marketing

Purpose – Drawing from recent work on online social networking and communities of consumption, the purpose of this paper is to explore, identify, and postulate key factors facilitating the growth and success of marketing in virtual worlds.Design/methodology/approach – An empirical study was conducted employing netnographic evidence from three different virtual worlds and related user‐generated blog discussions.Findings – The findings suggest mechanisms which enable virtual worlds to gain and maintain the interest of their users and therefore underlie successful marketer practices.Research limitations/implications – This is an exploratory study based on qualitative and ethnographic online research methods, and therefore the results are of a descriptive nature. The study was conducted to initiate the academic discourse about marketing in virtual worlds. As such, the paper believes that it can act as a reasonable starting‐point for future discussion.Practical implications – The study suggests that traditiona...

Customer relationships and the small software firm: a framework for understanding challenges faces in marketing

Abstract This paper identifies the major marketing challenges small software firms face during their growth and internationalization processes. It starts with an analysis of small software company activities along a continuum from ‘project business’ to ‘product business.’ This is followed by a brief analysis of the two major schools of thought in marketing, in which there is a paradigm shift from the traditional notion of marketing-mix management towards ‘relationship marketing’ is discernible. Finally, the discussion is summarized in a framework for identifying the major marketing challenges facing software company managers at the beginning of the next millenium.

The Concept Of Satisfaction in Industrial Markets: A Contextual Perspective and a Case Study from the Software Industry

Abstract The starting point for this study was the obvious “mismatch” between the dominating, consumer marketing-oriented way of approaching customer satisfaction on the one hand and our current understanding of industrial buyer–seller relationships and networks on the other. The purpose of this paper is to present a relational and contextual perspective on customer satisfaction and dissatisfaction in industrial markets. To illustrate the usefulness of the perspective, this paper presents a case study on the emergence of dissatisfaction in a buyer–seller relationship within its network context in the software industry. On the basis of the three-level framework highlighted in this paper, i.e., the inner context of a buyer–seller relationship, the connected network of a buyer–seller relationship, and the outer context of the connected network, it is argued that it is possible to develop a richer understanding of the emergence of satisfaction in industrial markets.

Significance of corporate brand for business-to-business companies

Recent years have witnessed growing interest in industrial/business-tobusiness (B2B) brands (Lynch and De Chernatony 2007; Michell, King and Reast 2001; Thompson, Knox and Mitchell 1998; Bendixen, Bukasa and Abratt 2004; Mudambi 2002; van Riel, Pahud de Mortanges and Streukens 2005; Taylor, Celuch and Goodwin 2004). Furthermore, there has been increasing interest in company/corporate brands, in general (e.g., Aaker 2004; Balmer 1995, 2001; Balmer and Soenen 1999; De Chernatony 1999, 2001; Gregory 2007; Harris and De Chernatony 2001; Hatch and Schultz 2001, 2003; Ind 1997; Macrae 1999; Roper and Davies 2007; Urde 1999; Wilson 2001), as well as in the B2B context (e.g. Lynch and De Chernatony 2004; Bendixen, Bukasa and Abratt 2004; Mudambi 2002; van Riel, Pahud de Mortanges and Streukens 2005). Also anecdotal evidence suggests that B2B companies have increasingly taken corporate brand management initiatives in recent years.

Customer relationship strategies and the smoothing of Industry-Specific Business Cycles : The Case of the Global Fine Paper Industry

The purpose of this study is to argue for the importance of customer relationship strategies in smoothing industry-specific business cycles. We use the global fine paper industry as an example of a ...

Consumers’ Stock Preferences Beyond Expected Financial Returns: The Influence of Product and Brand Evaluations

Purpose: The purpose of the article is to examine the links between individual investors’ subjective evaluations of certain companies’ products and brands, on one hand, and their willingness and decisions to invest in those companies’ stocks, on the other. The authors challenge the traditional assumption that individuals would make stock investment decisions purely on the basis of expected financial returns and risks.Design/methodology/approach: Survey data was collected from 293 individuals who invest in the stock market of a European country and analyzed with PLS path modeling.Findings: In the clear majority of the consumers’ stock investment decisions that were analyzed, the consumers exhibited some willingness to invest in a chosen stock beyond its expected financial returns/risk. Two variables are found to elicit willingness to invest in a company’s stock beyond its financial returns: (1) the personal relevance that the individual attaches to domains (activities or areas of interest; ideas or ideals) supported or represented by the companys products and (2) the individual’s affective evaluation of the companys product brand. Research limitations/implications: Replicating the study with different companies from different industries and with consumers from different countries will be important. Overcoming a potential retrospection bias in the reported study is also a task for further research.Practical implications: The findings provide insights that can serve segmentation, targeting, and positioning when it comes to marketing a company in the stock market so as to attract investors. Originality/value: The article provides new evidence on the influence of product and brand evaluations in consumers’ stock investment decisions – suggesting that positive product evaluations elicit extra willingness to invest in a company’s stock, over and beyond its financial returns.

What Counts Versus What Can Be Counted: The Complex Interplay of Market Orientation and Marketing Performance Measurement

Market orientation (MO) and marketing performance measurement (MPM) are two of the most widespread strategic marketing concepts among practitioners. However, some have questioned the benefits of extensive investments in MO and MPM. More importantly, little is known about which combinations of MO and MPM are optimal in ensuring high business performance. To address this research gap, the authors analyze a unique data set of 628 firms with a novel method of configurational analysis: fuzzy-set qualitative comparative analysis. In line with prior research, the authors find that MO is an important determinant of business performance. However, to reap its benefits, managers need to complement it with appropriate MPM, the level and focus of which vary across firms. For example, whereas large firms and market leaders generally benefit from comprehensive MPM, small firms may benefit from measuring marketing performance only selectively or by focusing on particular dimensions of marketing performance. The study also finds that many of the highest-performing firms do not follow any of the particular best practices identified.

Individuals’ Affect-Based Motivations to Invest in Stocks: Beyond Expected Financial Returns and Risks

The purpose of this article is to study whether an individual investors affect towards a company causes him extra motivation to invest in the companys stock, over and beyond expected financial returns and risk. The authors examine survey data from 400 investors. They find that most investors had affect-based, extra motivation to invest in stocks, over and beyond financial return expectations. The more positive an individuals attitude towards the company was, the stronger was his extra investment motivation. Moreover, a special affective relationship that an investor may have towards a company—affective self-affinity—can further explain the extra investment motivation.

Exploration and Exploitation Across Three Resource Classes: Market/Customer Intelligence, Brands/Bonds, and Technologies/Processes

Purpose. Long-run corporate success requires engagement in two types of innovative activities: exploitation and exploration. However, earlier research has focused on exploration and exploitation concerning a firm’s technologies. The purpose of the present article is to explicitly examine exploration and exploitation related to customers and markets.Design/methodology/approach. The article is conceptual in nature, based on marketing, strategic management, and organization literatures.Findings. The article explains the logic of exploration-exploitation with respect to two market-related resource classes – (1) the firm’s knowledge of markets and customers (market/customer intelligence) and (2) market actors’ knowledge of and bonds to the firm (brands/bonds) – as viewed in combination with the resource class of (3) technologies, processes, and products (technologies/processes). The distinction of these three resource classes enables a three-dimensional conceptualization of the ideal types of a firm’s business development projects, which are seen as combinations of exploration and exploitation of resources across the three classes. The article also introduces the notions of multidimensionality of exploration-exploitation within the resource classes and relativity of resource newness. Originality/value. The article explicates how firms can orient their exploration and exploitation strategies not only on the technology dimension but also on the dimensions of market/customer intelligence and brands/bonds.