Customer integration and customer value: contingency roles of innovation capabilities and supply chain network complexity

Abstract

Purpose Prior research assumes that customer integration enhances customer value. However, the mechanisms and conditions under which customer integration contributes to customer value are less understood. This study aims to draw insight from the resource-based view (RBV) to conceptualize customer integration as an input resource that triggers product and process innovation capabilities to enhance customer value. The study further draws on the contingent RBV to examine supply chain network complexity (SCNC) conditions under which customer integration contributes to customer value through product and process innovation capabilities. Design/methodology/approach This study’s conceptual framework is tested on primary data from 335 firms in Ghana. PROCESS and ordinary least square regression analyses were used to test the study hypotheses. Additional analyses were conducted using structural equation modeling and two-stage least square regression analysis. Findings This study finds that, beyond the significant direct positive association between customer integration and customer value, product and process innovation capabilities mediate the association between customer integration and customer value. Evidence further shows that the indirect associations between customer integration and customer value through product and process innovations are strengthened when SCNC increases. Originality/value This research validates the presumed relationship between customer integration and customer value and provides theoretical arguments and empirical evidence to demonstrate how process and product innovation capabilities uniquely and in interaction with SCNC transform this relationship.

Untying the Gordian knot: A systematic review and integrative framework of supply network complexity

“…Although mixed findings are provided on SNC's direct effect on business performance, studies examining SNC's moderating role largely demonstrate a positive impact. These typically consider SNC to be a contextual factor justifying substantial investments in advanced and innovative practices (Fianko et al, 2023), such as lean purchasing/operations (Azadegan et al, 2013), supply chain security certification (Tong et al, 2022), and blockchain applications (Xiong et al, 2021). Conversely, Dong et al (2020) suggest that SNC can also exert a negative moderating effect on the relationship between supply base R&D intensity and financial performance.…”

“…Birkie et al., 2017; Fernández Campos et al., 2022; Iftikhar et al., 2022) and acting as a contingency factor. Many of these studies adopt resource‐based theories , investigating the impact of SNC on the acquisition of various resources and capabilities (Brandon‐Jones et al., 2014; Fianko et al., 2023; Gupta et al., 2018).…”

“…Our review identified 16 studies examining SNC's impact on business performance with respect to financial performance (DeCampos et al., 2022; Lu & Shang, 2017; Sharma et al., 2022) and market performance (Fianko et al., 2023; Liu et al., 2012).…”

Absorptive Capacity and Supply Chain Integration and Their Impact on Hotel Service Performance

“…This requires prompt adaptation to dynamic shifts in customer needs (Qu and Liu 2022). Increased customer integration leads to heightened customer value, as it facilitates better detection of needs, improved customisation, and greater customer engagement (Otchere- Fianko et al 2023). In the hotel context, internal customers encompass various facets, including the utilisation of technologies that facilitate efficient and personalised customer interactions and proactive communication.…”

Antecedents to Firm Performance and the Moderating Role of Environment Turbulence

“…(2020) asserts that process innovations refer to the changes firms bring in tools and techniques to improve operational activities or the delivery method. Firms adopt process innovation to develop or improve existing products by amending the existing operational process or adopting a new operational process (Fianko et al, 2023). Firms can evaluate the effectiveness of the process innovation by measuring customer satisfaction in terms of delivery time and after-sales service (Beltramino et al 2021).…”