European Business Review

Innovative marketing in SMEs: a theoretical framework : Table of Contents

Michele O'Dwyer, Audrey Gilmore, David Carson — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – Previous research has identified and clarified the nature of innovative marketing in small and medium size enterprises (SMEs), providing a list of key constituent elements. While this list of innovative marketing variables goes some way towards explaining the nature of innovative marketing it does not aid the understanding of the relevance and inter-relationship of these variables. The aim of this paper is to develop a theoretical framework to facilitate further exploration of the core elements of innovative marketing in SMEs. Design/methodology/approach – A case study approach is adopted in order to facilitate the emergence of new theoretical relationships based on the understanding of the complex and dynamic nature of innovative marketing in SMEs. Eight case SMEs are recruited, two of the case SMEs from the service industry, three from manufacturing and three of the SMEs combined elements of both service and manufacturing. Findings – The findings of the study illustrate the component parts of innovative marketing and the inter-relationships between those parts in accordance with their role in innovative marketing and practices in SMEs. In order to categorise SME innovative marketing constructs, the conceptual framework transformation, assimilation, prediction and exceptionality (TAPE) is developed from relevant literature. This helps to encapsulate and explore elements of SME innovative marketing. Based on this study, the TAPE framework can more appropriately be changed to transformation, assimilation and prediction (TAP), to reflect the finding that exceptionality is inconclusive in terms of its relevance to innovative marketing in SMEs. The exclusion of exceptionality from the framework is a surprising insight emanating from the research as it contradicts previous studies. Traditionally, these elements will have been considered to be the core of innovative marketing. The conclusion here is that exceptionality be treated with caution in relation to SMEs. Originality/value – This paper presents a theoretical framework TAPE to re-conceptualise elements of innovative marketing. In light of the role each element plays in SME marketing activities and practices, this paper confirms the value of TAP but not exceptionality.

A knowledge-based view of growth in new ventures : Table of Contents

Sami Saarenketo, Kaisu Puumalainen, Olli Kuivalainen, Kalevi Kyläheiko — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – The establishment and growth of new ventures play a major role in wealth creation in most industrialized economies. Consequently, there is much emphasis these days on how to foster their growth, and on determining the fundamental prerequisites. The purpose of this paper is to propose an evolutionary knowledge-based framework for understanding and testing the linkage between the nature of the firm's knowledge and its growth. Design/methodology/approach – The empirical analysis is based on an extensive survey of 171 new ventures in the information and communications technology industry. Findings – The findings indicate the existence of a relationship between some of the proposed knowledge determinants and new venture growth. For example, the ability to scale the firm's knowledge-based resources in economic terms has an effect on past and future growth as well as on growth orientation. Research limitations/implications – Whereas there is growing interest in the growth of entrepreneurial new ventures, emerging theories in the area of strategic management, such as the knowledge-based view (KBV) of the firm, have not often been applied as theoretical bases in studies focusing on this phenomenon. This paper broadens the understanding of new venture growth by scrutinizing the main knowledge determinants, including appropriability (tacitness and patent protection), the threat of opportunism, economies of scale, economies of scope/synergies, and asset specificity. Practical implications – The notion that different knowledge is needed in the different phases of the new-venture life cycle is important for practitioners seeking growth. Managers need to analyze the context and business environment with care, and accordingly to choose the right strategy. Originality/value – This paper broadens the thinking on new venture growth in analyzing the influence of knowledge inside the firm in terms of various theory-based determinants.

The collaborative strategy in the Taiwan shoe industry : Table of Contents

Tzong-Ru (?Jiun-Shen) Lee, Toong-Chinn Venice Koh — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – The purpose of this paper is to elaborate the reason behind a sustainable guanxi network through the introduction of the collaborative strategy in the Taiwanese shoe industry. Design/methodology/approach – Literature review in the area of Chinese business culture, and guanxi network is used to elaborate the information obtained from the company. Findings – This paper highlights that the belief of sincerity and trustworthiness has refined to the organization culture that supports the sustainability of Taiwanese guanxi network. Besides, the transaction cost theory, resource-based view, and specific relationship investment has become a hinder strategy for Taiwanese organization to maintain the business relationship. This paper introduces an interesting collaborative strategy between three parties, the original equipment manufacturer (OEM) supplier, the machinery manufacturer, and the end-user (the branding). Although there is no direct business flows between the end-user and the machinery manufacturer, the specific relationship investment between these two parties are tight and cannot be separated. This has ensured the proper business flows between the OEM supplier and the end-user as well as the OEM supplier and the machinery manufacturer. Originality/value – This paper illustrates that a guanxi network is not sufficient to ensure a long-term business relationship to be established. Indeed, the organization culture as well as the consideration on the transaction cost and resources from each party does have a great impact on the collaboration relationship to be successful.

The state of the art in static and dynamic games : Table of Contents

Pietro De Giovanni — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – The purpose of this paper is to investigate the state of the art in static and dynamic games (or inter-firm relationships). This research area has changed significantly over the last 25 years through the development of phenomena such as the supply chain and the progressive overcoming of monopolistic and oligopolistic frameworks. By exploring the state of the art in inter-firm relationships, this paper aims to identify the most suitable research methods to be used by future research in this domain and to highlight the major areas under investigation. Design/methodology/approach – This research adopts both qualitative and quantitative approaches. The qualitative approach describes the technical differences between static and dynamic methods and gives evidence of their appropriateness when applied to a game. Quantitative analysis transforms some of the information extracted from the qualitative analysis into categorical variables in order to obtain an indication of the major issues still to be addressed. Findings – The resulting findings identify the extent of the use of static and dynamic modelling in previous research and how their use has changed over time, what resolution methods need to be applied when investigating inter-firm relationship, what features influence this decision and what research areas still remain unexplored. Originality/value – The existing literature on the modelling of static and dynamic games lacks an exhaustive review. Several contributions investigate the literature on inter-firms relationships and review numerous issues, but focus only on static or dynamic modelling. This paper fills this gap by reviewing a number of theoretical papers.

Positioning a firm's initial market offering: a strategic application of a consumer-oriented model : Table of Contents

John R. Darling, Victor L. Heller, Daniel M. Tablada — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – The purpose of this paper is to present a consumer-oriented model of the market offering (marketing mix) whereby business practitioners, as well as academic scholars and students, can better understand the parallel-based logic of how the four elements of a market offering are closely related and interdependent at the initial stage of market entry. Design/methodology/approach – A consumer research study is conducted to identify the key factors that influence consumer buying decisions of particular products in Europe and North America. The five key factors identified are: importance of the product, time and effort to be spent in buying, technical complexity of the product, need for services in the buying process, and rate of product change. In addition, a thorough analysis of the marketing mixes used for numerous major categories of products is conducted. Based upon this research study and product category analysis, a consumer-oriented model is developed. This model can then be used in establishing the initial market offering and subsequent competitive differentiation. Findings – A basic foundation exists regarding the parallel relationship between and among the four elements of a firm's market offering – product, terms of sale, distribution, and communication – and why a change in any one of the elements generates a logical change in the other three. Practical implications – The paper has used this model both in business consulting practices, and as an academic-based learning tool. Originality/value – The paper focuses on this interdependent relationship and the normal “fit” between and among the four elements of a successful initial market offering (marketing mix).