Jelena Spanjol

Innovation's Effect on Firm Value and Risk: Insights from Consumer Packaged Goods

What is the relationship between innovation and firm value? Does the type of innovation make a difference? To answer these questions, the authors examine how breakthrough and incremental innovations affect three different facets of firm performance: normal profits, economic rents, and total firm risk. They argue that each of these metrics is of independent interest to shareholders and managers and that examining one without the others results in an incomplete picture of the true financial value of innovation. Using data on more than 20,000 new products from consumer packaged goods industries, the authors find that breakthrough innovation is associated with increases in both normal profits and economic rents and that, on average, each breakthrough innovation in the sample is associated with an increase in firm value of

Micro-Level Product-Market Dynamics: Shared Knowledge and Its Relationship to Market Development

4.2 million. Breakthrough innovation is also associated with increases in the risk of the innovating firm, but this higher risk is offset by above-normal stock returns. In contrast, incremental innovation is associated with increases in normal profits only and has no impact on economic rents or firm risk.

Co-Production of Prolonged, Complex, and Negative Services An Examination of Medication Adherence in Chronically Ill Individuals

This work draws on consumer and psychology research to explain sociocognitive aspects of product-market dynamics at a higher level of specificity than prior research. The authors extend the field’s understanding of market-shaping shared knowledge through a theory-informed discussion of how shared product knowledge comes to exist and how it changes as product markets develop. They define shared knowledge as the aspects of product representations that are common across the minds of market actors, making it possible for them to understand one another. The authors also discuss ways to track shared knowledge content that is expressed in market narratives. As the characteristics of shared knowledge are explained and linked to stages of product-market development, the authors develop a set of researchable propositions to guide future research. The theoretical arguments and propositions in this article complement extant marketing strategy research by integrating individual-level consumer theory with market evolution models.

To Change or Not to Change: How Regulatory Focus Affects Change in Dyadic Decision-Making

This study examines customer coproduction in a prolonged, complex, and negative service context—medication adherence in chronically ill individuals. We integrate services and medical perspectives to develop a novel theoretical framework of adherence as a nested system of coproduction behaviors, characterized by temporal and scope dimensions. Utilizing a qualitative approach, our findings point to two key insights about coproduction in the customer sphere. First, the enactment and form of regular-restricted, intermittent-intermediate, and irregular-expansive coproduction behaviors are determined by the characteristics of the customer sphere—that is, coproduction is contextualized. Second, the coproduction system in the customer sphere is complex and the different levels are interdependent. Our research contributes to the emerging literature on service coproduction by elucidating the behaviors through which customers strive toward adherence. The identified coproduction framework holds important implications for providers of prolonged and complex services and future research directions.

Responsibility and Well-Being: Resource Integration Under Responsibilization in Expert Services

Successful innovation requires teams to embrace and enact change. However, team members often differ in their preferences for change. We examine how regulatory focus affects dyadic teams’ tendencies to enact change across an array of repeated brand management decisions. Understanding such tendencies is important, since the innovation process is characterized by a series of investment decisions typically made by teams, yet prone to significant biases. Regulatory focus theory provides a framework for understanding the dominant motivations driving decision-making during goal pursuit. It argues that individuals operate under either a promotion or prevention focus, influencing preferences for stability vs. change. We develop a set of hypotheses regarding regulatory focus match vs. mismatch in teams and their effects on the relative tendency to enact change in decision-making. In the context of dyads involved in a complex management simulation consisting of multiple decision cycles, we empirically demonstrate that a promotion focus match is associated with greater levels of change in decisions than a prevention focus match, regardless of the type of goal pursuit strategy prescribed to dyads. Under regulatory focus mismatch, however, dyads are guided by the goal pursuit strategy (vigilant vs. eager) provided to them, which in turn informs their propensity to implement change.

Internal Marketing of Corporate Social Responsibility (CSR) Initiatives: CSR Portfolio Effects on Employee Perceptions of Corporate Hypocrisy, Attitudes, and Turnover

Responsibilization, or the shift of functions and risks from providers and producers to consumers, has become an increasingly common policy in service systems and marketplaces (e.g., financial, health, governmental). Because responsibilization is often considered synonymous with consumer agency and well-being, the authors take a transformative service research perspective and draw on resource integration literature to investigate whether responsibilization is truly associated with well-being. The authors focus on expert services, for which responsibilization concerns are particularly salient, and question whether this expanding policy is in the public interest. In the process, they develop a conceptualization of resource integration under responsibilization that includes three levels of actors (consumer, provider, and service system), the identification of structural tensions surrounding resource integration, and three categories of resource-integration practices (access, appropriation, and management) necessary to negotiate responsibilization. The findings have important implications for providers, public and institutional policy makers, and service systems, all of which must pay more active attention to the challenges consumers face in negotiating responsibilization and the resulting well-being outcomes.

Fit to be Creative: Organization-Employee Congruence on Environmental Values

Firms invest significant budgets in Corporate Social Responsibility (CSR) activities. Donations to nonprofit organizations that fight poverty or protect the environment demonstrate support of a firm’s external stakeholders. Customers are increasingly interested in how firms support their internal stakeholders (i.e., employees), yet many firms are lagging on such CSR activities.

Consumer Co-production in Prolonged and Complex Services: The Case of Medication Adherence in Chronically Ill Individuals

This study examines how the match (vs. mismatch) between personal and firm-level values regarding environmental responsibility affects employee job satisfaction and creativity and contributes novel insights to three literature streams (i.e., creativity, social corporate responsibility, and person-environment fit). Building on the person-environment (P-E) fit literature, we propose and test environmental orientation fit vs. nonfit effects on creativity, identifying job satisfaction as a mediating mechanism and regulatory pressure as a moderator. An empirical investigation indicates that the various environmental orientation fit conditions affect job satisfaction and creativity differently. More specifically, environmental orientation fit produces greater job satisfaction and creativity when the employee and organization both care highly about the environment (i.e., a high-high environmental orientation fit condition) than when both display congruent low concern for the environmental (i.e., a low-low environmental orientation fit condition). Furthermore, for employees working in organizations that fit with their personal environmental orientation, strong regulatory pressure to comply with environmental standards diminishes the positive fit effect on job satisfaction and creativity, while regulatory pressure does not affect the job satisfaction and creativity of employees whose personal environmental orientation is incongruent with that of the organization.

It’s the Thoughts that Count: Substitution for Goal Striving Actions

This study examines customer co-production in a prolonged, complex, and negative service context—medication adherence in chronically ill individuals. We integrate services and medical perspectives to develop a novel theoretical framework of adherence as a nested system of co-production behaviors, characterized by temporal and scope dimensions. Utilizing a qualitative approach, our findings point to two key insights about co-production in the customer sphere. First, the enactment and form of regular-restricted, intermittent-intermediate, and irregular-expansive co-production behaviors are determined by the characteristics of the customer sphere—that is, co-production is contextualized. Second, the co-production system in the customer sphere is complex, and the different levels are interdependent. Our research contributes to the emerging literature on service co-production by elucidating the behaviors through which customers strive towards adherence. The identified co-production framework holds important implications for providers of prolonged and complex services and future research directions.

Don’t Pester Me! Unwanted Upgrade Innovation

Planning is widely regarded as a critical tool for helping consumers successfully achieve their personal finance goals. Although planning has been identified as an effective self-regulatory tool, our research demonstrates that planning is not universally beneficial. Across two studies, our results demonstrate that planning delays initiation of goal pursuit behaviors for prevention-focused consumers who have adopted avoidance goals, since they perceive the act of planning to represent legitimate goal progress. In other words, making plans regarding when, where, and how to achieve a personal finance goal under prevention fit leads consumers to perceive themselves as having started to make progress towards their goal, although they only expended cognitive goal-directed effort. In turn, this perception leads to a delay in behaviors aimed at debt reduction. This finding carries important implications for marketing practice and theory.