Organizational resilience, defined by a firm’s speed in reaching a dynamic equilibrium after a shock and after the shocks are absorbed, and crisis management are critical in a global crisis. The concept of resilience is increasingly used in the economic press; nevertheless, few studies demonstrate empirically how firms became resilient and the lessons to be learned from it. Traditionally, the concept of resilience is approached as resistance in the face of a crisis. The authors go further by showing three-loop learning, which is part of a logic of innovation and regeneration. This study aims to examine how a business can regenerate itself by effectively managing the external threats and disruptions caused by a crisis. Also, this study deepens knowledge on learning process. The double-loop learning process is known in the literature as enabling firms to learn from unexpected events and react accordingly. The findings point out a third loop implying the co-invention of a new business model and a collective mindfulness of changes made.
Using longitudinal data, the authors investigate how the global crisis affects merger negotiations between two companies. This study analyzes the period of dialogue (negotiation) between the two entities with a view to carrying out a merger and then their withdrawal from the project during the pandemic, reshuffling the cards for each company. The negotiation period is not normally disclosed because of its highly confidential and strategic nature and it is therefore difficult for researchers to access merger operations at the negotiation stage. From this viewpoint, this case study was chosen because of the availability of generally inaccessible documentation.
This in-depth case study provides new insights on organizational resilience and the recovery capacity of a firm. The results underline four main triggers that a firm should develop in facing a major crisis: skills; credits; previous and historical relationships; and corporate culture. Recovery capacity depends on reactivity, flexibility, learning and regeneration. Finally, this study points out a three-loop learning experience that can be understood as a learning process in two steps to generate lasting and adaptive changes.
The limitations are those concerning a single case study.
This study highlights the ability to deal with unexpected events. First, this work identifies concrete items that can be perceived by managers as elements enabling a firm to develop resilience. Second, the results show main elements enabling this capacity as reactivity – both companies react quickly and effectively to disturbances to limit the impact on their performance; or flexibility – firms adapt their business model to deal with disruptions. Third, this work underlines a learning capacity process in three steps to recover capacity. This process stimulates creativity and innovation by the teams and stakeholders by placing them at the heart of the change.
This case provides a vivid illustration of firms’ adaptation to a rapidly evolving context because of a global crisis. Theoretical concepts and empirical findings from the literature are combined to present a single consistent picture.
]]>This paper aims to explore ChatGPT’s (generative pre-trained transformers) potential as a tool for retailers to improve customer experience and boost sales. While it provides benefits like personalized recommendations and 24/7 assistance, there are limitations, like difficulty in understanding unconventional language. The paper stresses careful integration to overcome these limitations and create a better customer experience. Additionally, it discusses the potential for further development and integration of ChatGPT in retail, such as generating product descriptions and virtual try-on experiences. Finally, the paper encourages retailers to embrace ChatGPT to meet their customer needs.
Case-based methodology involves using specific cases or examples to explore a broader issue or phenomenon. Researchers have analysed real-world cases to identify patterns, themes and insights that can be applied to other contexts or situations. This was useful for understanding complex and multifaceted issues as it allowed us to delve deeper into specific examples and explore the nuances of the situation.
While ChatGPT is a powerful tool for retailers, limitations such as difficulty in understanding non-standard accents and unconventional language can arise, causing customer frustration. Retail managers must integrate ChatGPT in a way that enhances customer experience. In the future, ChatGPT has the potential to generate product descriptions, provide virtual try-on experiences and integrate with augmented or virtual reality technology to offer more immersive experiences. Careful consideration and integration can help retailers overcome these limitations and offer personalized recommendations, round-the-clock assistance and an engaging customer experience that improves sales.
The case topic is very much in a novel stage of research and writing.
]]>This paper argues that when incumbent firms counter disruptive threats head-on, they may fail to develop the required new skills. This paper aims to propose an adjacent strategy which proved useful to Fujifilm to counter disruption of its core business of manufacturing photographic film.
The study uses an inductive methodology. Based on a detailed case study of Fujifilm, the study proposes two frameworks: for the conditions under which an adjacent strategy is likely to be fruitful and how firms can make the strategy work in their organizations.
The study finds that an adjacent strategy can be useful to firms under specific circumstances. Not only will the strategy help to counter decline in the core business, but it will also open up new avenues of growth. The success of the strategy requires significant efforts in aligning the leadership and the organization, however.
The frameworks proposed in the study can be useful to incumbent firms in many industries as they battle new disruptive business models and players.
The study’s key argument that incumbent firms can leverage skills from their core business is novel. The study also proposes frameworks that can help firms decide whether an adjacent strategy is appropriate for them and how they can implement it.
]]>Organizations have started using the metaverse to sell non-fungible tokens, execute engineering processes and conduct business meetings. A condition of creating value by moving business processes to the metaverse is acceptance of this technology. In business-to-business scenarios, internal employees and external partners may have different views on the topic but must agree upon new practices. Understanding common motivations and challenges associated with using the metaverse is crucial to its success.
The authors interviewed managers from a pharmaceutical company considering conducting meetings with clients in the metaverse. A series of 23 statements on reasons for (non)-use was generated. Twenty-five individuals (13 employees and 12 clients) then ranked these statements against each other, revealing what would drive or hinder their metaverse use. The authors compared these perspectives to identify common issues.
The authors identified four different views. Views 1 and 2 correspond to internal and external participants, while Views 3 and 4 correspond to external ones only. View 1 is skeptical and underlines the role of peers in acceptance. View 2 is a positive perspective centered on usefulness. View 3 is ambivalent and is centered on efforts required to use the metaverse. View 4 reveals a reversed perspective wherein using the metaverse is a low-effort activity.
This paper proposes a case study probing acceptance of a realistic business use of the metaverse. This paper identifies risks to mitigate and motivations to leverage when proposing metaverse usage in a business-to-business context.
]]>Geopolitical risks associated with the return of great power politics and growing nationalism have generated new challenges for foreign investors across industries. Oil and gas companies are well acquainted with such risks and have developed strategies to manage them. This paper reviews five of these strategies: divorcing ownership control from operating control in designing collaborative ventures; proactively managing stakeholder relationships; ensuring transparency and communication; diversifying risks while proactively positioning for emerging opportunities; and deliberately planning for exit should such an eventuality arise. Firms outside of oil and gas can draw on these strategies as they navigate the emerging geopolitical context.
This paper reviews five strategies that oil and gas companies can use to manage geopolitical risk: divorcing ownership control from operating control in designing collaborative ventures; proactively managing stakeholder relationships; ensuring transparency and communication; diversifying risks while proactively positioning for emerging opportunities; and deliberately planning for exit should such an eventuality arise.
This study identifies several strategies that oil and gas companies have used to manage geopolitical risks. These tools will be increasingly important in the shifting global political landscape.
Drawing on the experiences of oil and gas companies, this study has identified several strategies that companies can use to shield themselves from the risks that are currently emanating from geopolitics. While these best practices originate in the experiences of oil and gas firms, the ability to deftly manage geopolitical risks is becoming an important prerequisite for companies across industries.
]]>Leadership assessment programs are intended to ensure that the organization retains or hires high-quality leadership. Among the many skills that must be included, executive communication is a cornerstone of effective leadership. However, there are many techniques to assessing executive communication that impose numerous advantages and disadvantages. The purpose of this study is to explore several techniques for evaluating executive communication skills in leadership assessment programs.
Building upon case studies from novel commanding officer selection efforts in the military, the current study outlines three possible areas of executive communication for leadership assessment programs: panel-based interviews, guided discussion and executive writing.
Although each technique offers some advantages, the best technique depends upon the context. Panel-based interviews can provide excellent depth in evaluating candidates, whereas executive writing focuses more upon crafting a deliberate and clear message without the ability to clarify or use nonverbal cues. Selecting an appropriate technique depends greatly upon the workload imposed on the leadership assessment team and the number of candidates available.
Leadership selection programs are often done piecemeal or based on local experience. By building upon novel efforts in military commanding officer selection, the goal is to promulgate effective executive communication techniques that will enhance leadership selection through more effective communication across all levels of leadership positions.
]]>The purpose of this exploratory study is to identify the antecedents of brand hate in respect to luxury brand gamification marketing activities.
Five gamified product placements characterized by the ad hoc design of luxury co-branded virtual and/or physical products were selected for the research study. Content analysis was used to identify patterns and classify negative comments shared online into categories.
A content analysis of the negative comments (n. 2,321) related to the perception toward gamification of luxury fashion in videogames revealed the following seven domains: monetization of the game; promotion of inappropriate behavior; unethical placement; games commodified by brands; predatory monetization; perceived incongruence; poor product performance.
The exploratory research study revealed how the perception of gamification activities trigger negative emotions toward luxury fashion brands. It was significant that many of these emotions fall within the antecedents of brand hate.
Luxury companies and game developers need to be aware and manage the antecedents of brand hate in respect to luxury brand gamification activities in videogames. Moreover, luxury brands need to consider customers’ influencing behavior via online word-of-mouth and the potential to impact attitudes and behaviors of other consumers toward brands.
The ethics of gamification within a marketing context have largely escaped inquiry. The study provides evidence that luxury brands need to align the fundamentals of luxury brand management in the digital world of gaming.
]]>This paper aims to demonstrate how the new generative artificial intelligence (AI) tool ChatGPT changes knowledge work for individuals and what are the implications of this change for companies.
Based on 22 interviews from informants across different industries, the authors conducted an inductive analysis on the use and utility of ChatGPT in knowledge work. Based on this initial analysis, they discovered different ways in which ChatGPT either augments human agency, makes it redundant or lacks capability in that regard.
The authors develop a 2 × 2 framework of algorithmic assistance, which demonstrates four ways in which ChatGPT (and generative AI in general) interacts with knowledge workers, depending on the usefulness of ChatGPT in particular tasks and the type of the task (routine vs creative).
Based on the insights from the interviews, the authors propose a set of actionable questions for individual knowledge workers and companies from four viewpoints: skills and capabilities; team structure and workflow coordination; culture and mindset; and business model innovation.
To the best of the authors’ knowledge, this study is among the first to identify and analyze the use of ChatGPT by knowledge workers across different industries.
]]>Producers of specialty products that apply nonindustrial production techniques to deliver high quality and authenticity to niche markets define themselves in opposition to industrial production. This forces them to strike a delicate balance between, on the one hand, emphasizing the symbolic value related to quality, creativity and distance from traditional industrial production, and on the other hand, ensuring profitability through commercial orientation. This paper aims to explore how new and established firms benefit from a different balance between a strategic orientation toward creativity and the symbolic value of specialty products and commercialization.
Based on survey data from 99 specialty coffee roasters, this study uses statistical regression models to analyze how new versus established firms benefit from a strategic orientation toward creativity versus commercialization.
The authors find that firms benefit from shifting the balance from a strategic orientation on creativity in new firms to a strategic orientation on commercialization in more established firms. This shift increases the likelihood that firms’ passion and creativity lead to commercial success.
The findings demonstrate the importance of strategic orientation and emphasize that business owners need to revisit and adjust their strategic orientation as their businesses develop.
]]>This paper aims to propose a framework for marketing to the sandwich generation (SG) shopper, an influential and growing demographic in the marketplace.
This paper draws from research in business, sociology, health care and industry sources that have studied the SG. It proposes a marketing framework to create value for SG shoppers and their families, in multiple ways.
SG members seek to meet at least four major kinds of needs across their intergenerational families: financial management, social support, health care and wellness. Businesses can help them more efficiently bridge those needs by including certain enablers in their offerings: human resource benefits to manage health and associated costs, resource allocation tools to manage financial and social support needs across different lifespans, time management tools to integrate social support needs with wellness outcomes and technology/services that help meet health and wellness needs across the family.
Managers can attract SG members and their families to their offerings by keeping in mind three rules of thumb: help them recover their most scarce resource: time; capitalize on age-friendly adjustments in the marketplace; and innovate with universal design in mind.
To the author’s knowledge, this is the first application of existing knowledge on the SG to a marketing framework that addresses key SG customer concerns.
]]>This study aims to investigate the nature of relationships between consumers and green brands and notably their role in shaping green brand evangelism. More particularly, the study first focuses on the influence of green relational benefits (confidence, self-expression, socialisation and altruistism) on green brand loyalty and subsequently the direct effect of green brand loyalty on green brand evangelism.
Data were collected using an online survey administered to a sample of 101 graduated female consumers of green personal care and beauty brands. Partial least square structural equation modelling was used to test the hypothesized relationships of the proposed conceptual model.
The study results demonstrate the existence of a positive and direct impact of confidence, socialization and self-expression benefits on green brand loyalty, with a stronger influence of confidence compared to the other benefits. Green brand loyalty generates a positive green brand evangelism from consumers.
To promote green brand evangelism, managers should invest in actions that enhance consumer loyalty towards green brands through a combination of confidence, socialization and self-expression benefits.
Although previous studies have discussed how relational benefits contribute to the development of brand loyalty, the issue has not been examined from a green brand perspective. In addition, this paper explores the antecedents of green brand evangelism, which have not been sufficiently addressed in the existing literature.
]]>The trend toward subscription economy accelerated the rise of access-based consumption models for durable consumer goods, replacing individual ownership with subscription contracts. At the same time, disruptive platform businesses have arisen in several consumer markets, bypassing traditional value chains while growing through network effects. In a conceptual approach, the authors address the future market for durable consumer goods in light of developments toward access-based consumption, subscription models and platform business models.
In a conceptual approach, the authors apply a scenario analysis following the Framework Foresight method and address trends, constants, plans and projections shaping the future market of subscriptions for durable goods. The authors create a baseline scenario and two alternative scenarios for the future of consumer durables and thereby discuss platform growth stages and implications for manufacturer brands.
The rising market power of platform companies leads to a baseline scenario where these platforms enter the market of subscriptions for durable goods. Alternative scenario 1 addresses the successful market entry of new platform businesses. In contrast, alternative scenario 2 describes the rise of manufacturer brand platforms.
This conceptual research enriches the discussion of access-based business models by creating scenarios depicting possible future developments. Moreover, it adds to the increasing focus on platform business models and thereby addresses the role of traditional manufacturer brands in markets for durable consumer goods subscriptions.
]]>Prior research has revealed that a large share of managers is reluctant towards the use of artificial intelligence (AI) in decision-making. This aversion can be caused by several factors, including individual drivers. The purpose of this paper is to better understand the extent to which individual factors influence managers’ attitudes towards the use of AI and, based on these findings, to propose solutions for increasing AI adoption.
The paper builds on prior research, especially on the factors driving the adoption of AI in companies. In addition, data was collected by means of 16 expert interviews using a semi-structured interview guideline.
The study concludes on four groups of individual factors ranked according to their importance: demographics, familiarity, psychology and personality. Moreover, the findings emphasized the importance of communication and training, explainability and transparency and participation in the process to foster the adoption of AI in decision-making.
The paper identifies four ways to foster AI integration for organizational decision-making as areas for further empirical analysis by business researchers.
This paper offers four ways to foster AI adoption for organizational decision-making: explaining the benefits and training the more adverse categories, explaining how the algorithms work and being transparent about the shortcomings, striking a good balance between automated and human-made decisions, and involving users in the design process.
The study concludes on four groups of individual factors ranked according to their importance: demographics, familiarity, psychology and personality. Moreover, the findings emphasized the importance of communication and training, explainability and transparency and participation in the process to foster the adoption of AI in decision-making.
This study is one of few to conduct qualitative research into the individual factors driving usage intention among managers; hence, providing more in-depth insights about managers’ attitudes towards algorithmic decision-making. This research could serve as guidance for developers developing algorithms and for managers implementing and using algorithms in organizational decision-making.
]]>Strategic alliances play a key role in a company’s growth strategy. They are an alternative to the organic option of creating a new company from scratch and a less risky option than conducting a merger or an acquisition. For five years, most recently in 2022, the results of PwC’s 22nd Annual CEO Survey have shown that 40% of U.S. CEOs plan to enter into a new strategic alliance or joint venture to boost their company’s growth or profitability in the coming year. These operations demand a high level of trust, collaboration and equitable risk-sharing, as well as autonomy granted to both firms. Through an in-depth case study, this study aims to reveal how an alliance was formed between two companies, navigating between entrepreneurial experience and the co-construction of a network to share a technological tool.
The author conducted several interviews with one of the founders of Beta France, and the author had access to a large amount of information on the launch of the entrepreneurial project.
The author presents the reasons for Beta France to join a network of alliances rather than entering into a joint venture. In doing so, the author emphasizes the importance of independence between actors as a key element triggering innovation.
This study points out how a fintech startup opens up perspectives for new digital market participants. The author lists the risks that CEOs joining an alliance must be aware of, and the author details how to avoid falling into an asymmetrical alliance by keeping a center of expertise that cannot be duplicated by other partners.
]]>The purpose of this paper is to explore the impact of ChatGPT on the development of corporate social responsibility (CSR).
Based on the current applications of ChatGPT in enterprises and existing challenges in CSR, the paper analyzes how the tool promotes corporate sustainable development and what potential risks and challenges are in the practical application.
This paper finds that ChatGPT can promote the development of CSR from four aspects: to support social responsibility activities, to strengthen internal control, to promote external supervision and to convey the notion of sustainability and other corporate philosophies for enterprises.
This paper provides the ground for applying ChatGPT to CSR and includes the potential risks and challenges of the practical applications that enterprises can use for reference.
ChatGPT is becoming increasingly popular and mature, but its applications and effectiveness are less mentioned in CSR. In the future, the research in this area needs to be further advanced.
This paper makes contributions to the link between ChatGPT and CSR. To the best of the authors’ knowledge, this is one of the first studies that explore the applications, impacts, challenges and opportunities of the technology in the area of social responsibility.
]]>Marketing professionals are under pressure to implement methods and metrics that demonstrate the value of the function. This paper aims to propose a model to measure marketing performance, focusing on four categories of metrics and two types of factors that influence the effectiveness of the assessment process.
The paper is organized in three parts. The first part includes a synthesis of the theoretical background on the subject. Next, the rationale and architecture of the model are presented, together with an explanation of the elements that compose it. A reflection on the work developed is presented in the last section.
Benefits regarding how to best assess marketing practice are considerable, as organizations with effective performance measurement systems tend to show better results than others. In this context, the choice of metrics is important, but it is also necessary to understand the mechanisms through which the effectiveness of the measurement process can be improved.
Literature has mainly focused attention on the effect of individual programs on specific measures or on conceptual models that do not sufficiently address all major elements in the marketing assessment process. This work extends previous contributions on the subject, presenting a model that combines metrics with factors underlying the measurement process.
]]>Climate change and carbon emissions are top of mind in all facets of society. This study aims to investigate what the world’s top brands are saying about carbon emissions and greenhouse gases (GHG). Through this inquiry, the authors hope to better understand what brands are saying, doing and if their actions are clear. Furthermore, the authors seek to uncover practices that may deter or enhance a brand’s effectiveness in communicating its current and future initiatives.
Each of the world’s top 50 brands’ (Forbes, 2020 Rankings) websites were assessed using a content analysis methodology. Key constructs and themes were identified first through a broad assessment, leading to a set of parameters (content items) that were used to assess each brand’s website. The results were then summarized.
Almost all of the world’s Top 50 brands attempt to articulate their current accomplishments and goals relative to carbon emissions and GHG. Generally, carbon falls under a broader discussion of their sustainability initiatives and objectives. While extensive, information on carbon emissions possesses a variety of terms for measures and initiatives, goal setting and actions. Stakeholders may find the information to be ambiguous and of limited use.
There are few, if any, assessments of how major brands communicate their current and future carbon emissions initiatives. The study uncovers tendencies and provides managers with practices that may enhance the effectiveness of their brand’s carbon emissions communications.
]]>Organizations have always faced the possibility of disruptions. Traditional approaches, such as shifting risks through insurance or improving organizational resiliency, view disruptions as threats. This study aims to propose a new perspective where disruptions can also be opportunities. By adopting project portfolio management (PPM), organizations can develop proactive capabilities to manage uncertainty and prepare to exploit future disruptions.
Drawing on publicly available research reports, company reports, professional standards and press reports, this study describes key features of PPM and provides detailed practical guidance on how to apply PPM in daily operations, especially in preparation for the next disruption.
The key steps in applying PPM in daily operations are: align portfolios and projects with strategic goals and objectives; establish a robust governance framework; optimize resource capability and capacity; build and implement appropriate implementation methodologies; continuously monitor, review and optimize the project portfolio; and develop a culture that embraces risks, innovation and adaptability.
This research has several limitations and implications. On limitations, the study was constrained by publicly available data, an in-depth interview with a consulting firm and a survey based on convenient sampling. These limitations will impact the generalizability of the findings. On implications, this paper shows how organizations can prepare for future disruptions by applying PPM. There are other ways to prepare for the unpredictable future, and further research is needed to explore other methods.
The results of this study have important practical implications for all organizations and in all sectors. Major disruptions are matters of “when,” not “how,” and responsible organizations need to pay attention. Based on the PPM discipline, this research provides an approach for business executives and project management practitioners to tackle this challenge. Furthermore, portfolio managers should use this information to promote and advocate for more disciplined planning to confront the uncertain future.
The findings of this paper carry important social implications. As the recent events showed the vastness of disruptions, from extreme heat to fires in Maui, sitting idly and waiting passively for an unpredictable future is not an option. This paper advocates the need for more awareness and preparation for future disruption by applying PPM. Furthermore, this research provides concrete guidelines for organizations and practitioners to consider as they confront the unknown. Additional research should investigate other effective strategies to meet the challenges of an uncertain and volatile future.
This study offers practical steps on how organizations may manage not only to survive but also to thrive in an uncertain and volatile world.
]]>Chewy, Inc. is a direct-to-consumer seller of pet food and supplies. Their approach involves a deep understanding of pet owners’ needs and behaviors to provide personalized product recommendations and exceptional customer service. This case study aims to describe Chewy’s growth strategies and how the company can remain a market leader.
Using the customer value assessment tool, the authors examine Chewy’s value proposition, including service, quality, image and price strategies.
Chewy has built a loyal customer base that values the company’s commitment to their pets’ health and well-being. Future opportunities include focusing on pet wellness products and services, collaborating with veterinary providers in telemedicine and international expansion.
This work is largely conceptual and presents a descriptive case study which reviews Chewy’s marketing strategy based on industry research as well as a customer value assessment via the service-quality-image-price framework.
Corporate leaders must adapt to market change and create business strategies to deliver superior value for customers. This requires innovative products, services and processes. The strategic insights are applicable to retailers, service and technology firms and entrepreneurial companies seeking to scale their businesses.
Chewy’s highly competitive market includes Amazon, e-commerce pet supply companies and big-box pet stores. But it has dominated the online sector and has substantial growth prospects. This paper concludes with recommendations for management and questions for consideration.
]]>This paper aims to outline the role that serendipity can play in providing a complementary and previously unrepresented vector in deliberate and emergent strategies within organizations.
The paper is conceptual in nature and draws upon the serendipity pattern in sociological theory and serendipitous relations in developmental sciences to provide a framework for executives to consider when examining the process of strategy formation. Two case vignettes are used to illustrate the difference between luck and serendipity and the paper also traces key micro foundations of serendipity by returning to the original serendipity fable and a famed science experiment producing “floppy-eared” rabbits.
The notion of chance favoring the “prepared firm” is espoused where the prepared organizational mind is positioned as an antecedent of serendipitous strategy formation. This is based on Louis Pasteur’s famous aphorism, “chance favors the prepared mind.” Components of the prepared firm include deep domain knowledge, anticipatory mindset, noticing, abductive reasoning, elaboration and relations development.
The paper is a conceptual articulation of a novel concept that now requires deeper empirical case development and ultimately statistical validation. The paper suggests linkages between serendipity and theories of absorptive capacity and the attention-based view of the firm.
Several mindsets, capabilities and relations for architecting organizational serendipity are suggested for executives using a stylized framework.
From a strategy process perspective, the Mintzberg and Waters seminal article “Of strategies deliberate and emergent” is complemented by considering “floppy-eared” strategy characterized by unexpected, anomalous and strategic datum.
]]>This paper aims to address an important question of what makes companies succeed or not in their attempt to empower employees. As this study answers this question, the arguments suggest that coordination is essential to creation of employee empowerment climate in organizations.
This is conceptual paper rooted in extensive research on both – empowerment (culture, climate and organizational structure) and coordination (formal and informal).
To help managers to be effective in their roles, this study presents four insights to creating empowerment climate. The arguments conclude that coordination provides a vessel for successful realization of empowerment. Specifically, only informal coordination (vs formal) will fully realize empowerment’s benefits. Given that the topic of empowerment is highly germane to managers in today’s context of the increasing number of employees working remotely, this work presents an important and actionable advance for managers.
This study represents original research that has not been published and is not currently under review at any other journal.
]]>Narratives underscoring the necessity of innovation for success are pervasive. Yet, many new products fail or fail to produce their intended impacts. Conventional views typically promote the functional view of innovation, which focuses on identifying and meeting customer needs. The authors argue, however, that culture is an overlooked explanation of innovation success.
This study uses a conceptual approach, grounded in cultural sociology, to illustrate the ways in which innovation success is influenced by cultural beliefs. Accordingly, this study develops a cultural view of innovation and compare it with the functional view.
This study shows that novel products are successful to the extent their meanings and value resonate with relevant stakeholders. Not only does culture matter, but customers’ needs are often shaped by cultural values in the first place.
More systematic qualitative and quantitative research is needed to better understand the best processes for incorporating cultural beliefs into product features.
In addition to customer needs, innovators should include cultural beliefs as design requirements to ensure the product resonates with the values and everyday practices of users. One way to do this is by implementing the productive method, which provides the resources for the relevant potential users to design the product themselves.
It is not always enough to learn and solicit feedback from potential users. To fully understand the obstacles that may inhibit innovation, this study advocates for providing potential users, local engineers and other relevant stakeholders the autonomy to design, manufacture, market and distribute the product.
]]>Advances in digital technologies coupled with the shift toward sustainable consumption present promising opportunities for luxury fashion brands to engage younger consumers. To this end, this paper aims to provide a forward-looking approach to creating luxury experiences targeted toward young consumers by proposing a new experience consumption framework.
This paper presents a viewpoint on creating luxury experiences that address the changing dynamics of the luxury industry by responding to the disruptive surge of young consumers and their growing preference for digital connections.
The authors develop a new experience consumption framework which demonstrates how luxury brands can successfully engage young consumers and fulfill their desire to share experiences with others by leveraging sustainable participation and digital technologies. The framework identifies different sustainable and digitally immersive experiences that luxury brands can incorporate for their young consumers.
This paper offers important managerial insights for luxury fashion brand marketers and identifies future research opportunities to advance knowledge in this field.
]]>The purpose of this study is to uncover the essential conditions for establishing a successful collaboration between the Fairmont Hotel (Makkah) staff and the senior management team to prepare for cocreating a future shared corporate vision.
This study is an action research project involving senior managers of the Fairmont Hotel (Makkah) and EHL Hospitality Business School (Lausanne, Switzerland). Data were collected from 16 hotel staff members, covering functional/department managers, team leaders, operations supervisors and operational-level employees.
This study uncovered a series of generic proposals made by the hotel staff, which are prerequisites/conditions for successful collaboration with senior management, to prepare for cocreating a future shared vision.
In response to the staff’s generic proposals, the senior management team proposed practical measures to support continued collaboration between hotel staff and the senior management team. These measures aim to maintain a collaborative approach centered on achieving future common goals and a shared vision to promote sustainable innovation in the services of the Fairmont Hotel (Makkah).
This study is innovative in two respects. First, it demonstrates a strong willingness on the part of senior management and staff to collaborate less vertically, contrary to the cultural norm in Saudi Arabia, known for its strong hierarchical distance. Second, the mutual commitment to more horizontal collaboration is not typical of five-star hotels, which are traditionally vertical and hierarchical.
]]>Digitalization and multi-channel strategy have appeared as recurrent themes in retailing for years, yet some major international as well as domestic mass retailers have chosen to retain a single, physical channel focus for customer transactions. These retailers, despite the digital mindset preoccupying the retailing sector, have chosen to rely fully, or predominantly, on their stores to generate revenues. A number of questions arise from this approach. This paper aims to understand the rationale for marketing and strategic practices which appear to go against the dominant, strongly digitally oriented, discourses and practices in the field of retailing. Why do some retailers choose not to add a digital transactional channel? Are there defensible reasons for this choice? Can such a strategy successfully create value?
This research is based on a qualitative, multiple case study of the strategies adopted by Primark (fashion) and Aldi (food), two major retailers that retain a largely single-channel transaction focus, in France and the UK.
This research suggests that some retailers may still be able to succeed by maintaining a single-transactional physical channel to avoid a cost trap which extensive moves towards digitalization of transactions might mean for them. In such circumstances, refusing to adopt a digital value proposition may be a means of preserving the success of their original business model.
Despite the weight of academic and practitioner discourses on the urge to undertake digital transformation, this work provides a comprehensive illustration of the rationale for sticking to a single physical channel to preserve the profitability of a traditional store-based business model.
]]>The purpose of this paper is to elaborate the significance of safeguards in digital ecosystems and their role in generating trust among participants. This paper argues that the right mix and number of safeguards are crucial for an ecosystem’s growth and success. It offers ecosystem orchestrators concrete guidelines for how to implement and monitor safeguards.
This research is based on both consulting experience and publicly available information on several digital ecosystems.
This research conceptualizes safeguards as precautionary mechanisms that mandate or promote desirable behavior in an effort to engender trust among ecosystem participants. Safeguards can take various forms, including passwords, escrow, user privacy controls, ratings and reviews and policies and contracts. Striking the right balance of safeguards – neither too few nor too many – is crucial for ecosystem orchestrators. This paper identifies the factors that determine the optimal mix of safeguards, including the power asymmetry between sellers and buyers, the sophistication of participants, the nature of transactions, the cost of negative outcomes and the cost-benefit tradeoff.
To the best of the authors’ knowledge, this study is one of the first to illuminate the relationship between safeguards and trust in the context of digital ecosystem. It is also one of the few attempts to provide managerial guidance for ecosystem designers trying to structure their platform for trust.
]]>This study aims to unpack the progress of board gender diversity among the 3,000 largest US listed firms by market capitalization (i.e. Russell 3000 Index). This study extrapolates four classifications of firms based on the number of women in the boardroom: zero women, one or two women, three plus women and gender balanced. The purpose of this study is to examine where progress has and has not been made, why firms plateau and an agenda for the future.
This study first provides a summative overview of the literature on the benefits of board gender diversity. It then examines progress according to the four classifications, each of which have theoretical underpinnings for whether or not firms can reap the strategic benefits of gender-diverse boardrooms.
Several indices of US publicly traded companies now have women holding between 30% and 33% of the seats in the boardroom. By examining the spread of women on boards according to the four classifications, this study extrapolates three key insights: firms experiencing tokenism (i.e. one or two women in the boardroom) do not have enough women to reap the strategic benefits of diverse boardrooms; firms that have reached a critical mass (three women in the boardroom) are at an impasse and may risk plateauing; and gender-balanced firms are elevated to the status of being role models for other firms. Calls for action and associated action plans accompany these insights.
This study reminds managers and directors of the strategic benefits of gender-diverse boards and offers three critical insights that boards can use to classify what stage they are at on the path toward board gender equality. Based on their classification, calls for action and action plans offer guidance to firms.
This study shifts away from focusing on the average percentage of board seats held by women across all firms and offers new insights on the progress that firms have made according to the number of women in their boardroom.
]]>One critical aspect of strong leadership communication is developing emotional (EQ) and spiritual intelligences (SQ). EQ helps individuals be more empathetic and effective, while SQ promotes an understanding of impacts beyond oneself. This paper aims to explore the relationship between leadership communication and EQ and SQ. Corporations can leverage leaders with high EQ and SQ and/or provide EQ/SQ training to employees.
Using critical review and integration, the authors consolidate existing literature and best practices to explore, develop and propose strategies for integrating EQ and SQ into the workplace.
Building upon existing theory and literature, the authors present a model of understanding both EQ and SQ. A generalized four-step process is presented for building EQ/SQ capabilities within the firm.
This study explores the synergy between an employee’s leadership skills and the ability to exhibit EQ and SQ. This research can provide corporations with tangible and targeted ways to enhance their EQ and SQ in their leaders. Firms can improve leveraging individuals with high SQ, in addition to providing SQ training to employees to improve individuals’ SQ.
]]>Netflix is the market leader in the streaming entertainment industry. In 2020 and 2021, Netflix’s subscriber numbers and revenue increased. During the first two quarters of 2022, Netflix lost millions of subscribers, revenue and profit declined and its share price and market capitalization deteriorated. The purpose of this study is to investigate how and why a company with such a strong track record as Netflix can experience this crisis and, most importantly, how it overcame the crisis and returned to growth.
This case study investigates Netflix’s rise, fall and recovery between 2020 and 2023 using qualitative research methods. It examines earnings calls, transcripts and letters to shareholders as well as the views of investment analysts, journalists and academics.
Netflix turned its fortunes around because its leaders faced the crisis head-on. They acknowledged that previous strategic decisions were no longer working, that no advertisements were on the platform and that there was no account sharing and they reversed these decisions. Netflix also realized that it needed to innovate, so it partnered with Microsoft to execute its go-to-market with advertising. It also launched games, made strategic acquisitions of gaming studios and developed its capabilities with new products.
This is a valuable case study. Investigating how a company as successful as Netflix can encounter a severe decline and how it changed its strategies and tactics to reverse the decline provides important lessons for other companies.
]]>The purpose of this paper is to identify the potential and the challenges for different firms in adopting an AI-first strategy. The study attempts to discern if any company can prioritize AI at the forefront of their strategic plans.
Drawing from illustrative examples from well-known AI-leaders like Netflix and Spotify, as well as from upcoming AI startups and industry incumbents, the paper explores the strategic role of AI in core business processes and customer value creation. It also discusses the advent and implications of generative AI tools since late 2022 to firms’ business strategies.
The authors identify three types of AI-first strategies, depending on firms’ starting points: digital tycoon, niche carver and asset augmenter. The authors discuss how each strategy can aim to achieve data, algorithmic and execution advantages, and what the strategic bottlenecks and risks are within each strategy.
To the best of the authors’ knowledge, this paper is the first to systematically describe how companies can form “AI-first” strategies from different starting points. This study includes actionable examples from known industry players to more emerging startups and industrial incumbents.
]]>The purpose of this paper is to contribute to the successful implementation of digitalization by exploring what characterizes strategy work undertaken by companies that have achieved digital transformation. Based on empirical data, the authors delineate five essential strategic actions that are prerequisites for digital transformation: discuss and communicate the vision and strategy; align resources and activities with the strategy; ensure a continuous focus on operational improvements and efficiency; create an orientation toward customer or user needs and expectations; and develop the competencies of top managers, middle managers and employees.
Between January 2021 and February 2022, the authors conducted a survey on strategy work in Danish organizations with 2,251 respondents. The respondents encompass top managers, middle managers and employees representing 1,164 organizations.
The authors identify five strategic actions that positively influence whether organizations incorporate digitalization into their strategy work. These strategic actions can support organizations in their strategy work regarding digital transformation and offer valuable insights and inspiration for leaders currently undertaking the journey of digital transformation.
Based on the empirical data, it is not possible to deem one action as more important than another in the context of digital transformation, as each action contributes significantly to facilitating the process. Given the nature of empirical data, the strategic actions reflect correlation rather than causation.
The empirical insights provide valuable practical guidance for leaders in managing digital transformation as a part of strategy work, which is typically discussed in a more conceptual manner. In addition, the authors identify new areas for further in-depth exploration in practice.
]]>The purpose of this paper is to provide a theoretically rigorous and practically relevant summary of research findings that enables managers to drive sustainable profits improvements via pricing. It showcases multiple case studies that demonstrate how companies can achieve higher-than-average profitability by implementing intelligent pricing strategies and tactics.
Over the past 20 years, this writer has conducted dozens of academic surveys with managers exploring the antecedents, moderators and consequences of pricing practices for existing and new products. The writer has analyzed all pricing research published in leading academic journals over the past decades. Finally, as equity partner of Hinterhuber & Partners, a pricing consultancy (www.hinterhuber.com), this writer – through collaborations with companies and workshops conducted with practicing managers – has collected data and insights on best practices in managing pricing as a strategic activity.
Pricing is the most powerful driver of superior profits, yet managers view pricing as relevant only in the context of innovation. This narrow view prevents companies from realizing their full potential. Best practice examples of pricing as well as rigorous academic research suggest that pricing based on solid scientific principles helps average companies to achieve above-average results. This paper presents a review of recent research and summarizes the fundamental principles that managers must master so that pricing becomes an enabler of lasting superior performance.
Academic research in pricing surpasses managerial practice. Managers often rely on outdated concepts when it comes to pricing strategy and tactics.
The paper presents a framework that allows managers to implement pricing strategies that improve performance.
Effective pricing strategies benefit companies, customers and other stakeholders.
The paper provides a comprehensive overview of the latest research on pricing and thus documents that pricing based on solid, scientific principles is an enable of lasting, above-average profitability.
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