- ACCOMPLISHMENT OF DUAL FOCUS IN EXPLORATION AND EXPLOITATION: THE INFLUENTIAL ROLE OF THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM) PROCESS.
Tinoco, Janet, Ganesh, Jai, University of Central Florida
- Abstract / Description
Organizations that can successfully develop both radical and incremental innovations positively impact sustained competitive advantage, dramatically improving their chances of survival and success in both dynamic and stable environments (Han et al. 2001; Tushman and O'Reilly 1996). Experimentation and radical innovation are mandatory knowledge assets for competitive play in emerging markets, but efficiency and incremental innovation are essential for mature markets (He and Wong 2004;...
Show moreOrganizations that can successfully develop both radical and incremental innovations positively impact sustained competitive advantage, dramatically improving their chances of survival and success in both dynamic and stable environments (Han et al. 2001; Tushman and O'Reilly 1996). Experimentation and radical innovation are mandatory knowledge assets for competitive play in emerging markets, but efficiency and incremental innovation are essential for mature markets (He and Wong 2004; Tushman and O'Reilly 1996). The attainment of dual focus between radical and incremental innovation is challenging and calls for organizational architectures of sometimes conflicting processes, structure, and culture (cf, Tushman and O'Reilly 1996; Wind and Mahajan 1997). While prior research has investigated the structural and cultural determinants (Duncan 1976; Gibson and Birkenshaw 2004), there is a significant lack of research addressing the third major element of business processes. Without winning business processes in place that influence both exploration and exploitation, a successful portfolio mix of radical and incremental product innovations that maximize customer value and benefits will not be fully realized, and firm performance will suffer. Through core business processes, marketing's role and influence is significant in increasing customer value creation in the resulting product innovations. By mapping the "inside-out" and "outside-in" processes of a market-driven organization (Day 1994) into the Srivastava et al. (1999) core business process framework, this dissertation develops and tests a model of business process influence on dual focus in innovation strategies in the context of the high technology manufacturing environment. Each of these processes is critical in generating maximum customer value and is an explicit input into strategic choices and decisions (Srivastava et al. 1999). Specifically, it is argued and proposed that the Product Development Management (PDM) process, comprised of the processes of market experimentation, technology monitoring, and technology competence, predominantly influences exploration while the Supply Chain Management (SCM) process, comprised of the processes of channel bonding and quality process management, predominantly influences exploitation. The Customer Relationship Management (CRM) process, encompassing the processes of lead user collaboration, competitor benchmarking, and current customer knowledge process, acts as a moderator to add dual focus to these extremes by interacting with PDM processes to enhance exploitation and with SCM processes to enhance exploration. Furthermore, it is proposed that firms successfully achieving a dual focus have greater firm performance than firms entrenched in either extreme. Hypotheses were tested with data collected from a nationwide sample of high technology manufacturers. The results largely supported the main effect hypotheses of the PDM processes and SCM processes on exploration and exploitation. Additionally, the hypothesis of a positive interaction between exploration and exploitation on firm performance was also supported, however no visible support was garnered for the moderating impacts of CRM processes on PDM and SCM processes as hypothesized. Post hoc analyses were performed, bringing additional insight into dual focus based on the successful implementation of opposing businesses processes. Specifically, dual focus firms were shown to have multiple processes in place that impact both types of innovation strategies and that these firms implement these processes to a greater extent than those firms operating in the more extreme positions. Academic and managerial implications are discussed, as well as study limitations and exciting future research directions.
- Date Issued
- CFE0001573, ucf:47114
- Document (PDF)
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