Service response to economic decline: Innovation actions for achieving strategic renewal

Abstract

NOTE: affiliations should appear as the following: Department (if applicable); Institution; City; State (US only); Country. No further information or detail should be included Acknowledgments (if applicable): I want to thank two anonymous reviewers for their comments on earlier drafts of this paper. Also, I want to thank Charles Heckscher and Cesar Gonzalez who have provided inspiration and contributed ideas on selected issues in the paper. An earlier version was presented at the Mini-EURAM Workshop on Organizational Innovation (Rotterdam, 2012).

Service innovation in times of economic crisis: the strategic adaptation activities of the topE.U.service firms

“…In doing so, these firms may counteract structural inertia, coevolve, adapt and reinvent themselves over time (Lewin et al, ). It is likely that high levels of expansion actions, supported by high performance, can better moderate environmental decline; services better manage decline, increase their overall investment in innovation, and manage resources more efficiently (Erhardt et al, ; Martin‐Rios and Parga‐Dans, 2016a, 2016b).…”

“…Service firms need to make urgent decisions regarding employment, layoffs, growth and alliances and innovation strategy (e.g., planning and R&D). Yet, firms vary in their strategic responses to conditions of economic decline (Martin-Rios & Parga-Dans, 2016a) and their long-term commitment to adaptation actions. The economic crisis of 2008-2011 was a period of market turbulence and sharp decline.…”

“…In times of severe economic crisis, managers’ perception of high levels of environmental uncertainty may reduce their ability to properly deploy long‐term plans for their businesses and hence negatively influence organizational performance. Despite the fact that the crisis had a substantial impact on service industries and it is expected that leading service firms from European countries exhibited diverse patterns of strategic adaptation, there has been little research on how these firms overcame the crisis, the long‐term survivorship of their strategic renewal pattern (Kwee et al, ) and the effectiveness of their responses (Martin‐Rios and Parga‐Dans, ). Therefore, a cluster analysis of dynamic decline and adaptation is required.…”

“…Compared to short‐term external threats, global crisis brings together environmental uncertainty, increased complexity, ambiguity and unpredictability (Davis et al, ). To recover, service firms face the challenge of developing organizational responses aiming to increase their tolerance of uncertainty and to find new and sustainable sources of growth (Martin‐Rios and Parga‐Dans, 2016a, 2016b). Strategy theory describes this adaptive process as strategic adaptation and renewal, defined as a firm's ability to disrupt inertia by modifying or replacing its core competencies and capabilities to ensure long‐term performance and survival (Agarwal and Helfat, , Schmitt et al, ).…”

Value co-creation in sport entertainment between internal and external stakeholders

“…Co-creation has received much attention in both management and marketing disciplines (e.g., Drazin et al, 1999;Vargo and Lusch, 2008). On the one hand, organizational research generally frames co-creation within an internal stakeholder lens; indeed, factors such as leadership (Mumford et al, 2002), organizational culture , strategic management (Martin-Rios and Parga, 2016), and knowledge management efforts are found to be conducive to organizational value creation. On the other hand, marketing research in this area shifts its focus from an intra-organizational (i.e., organizations create value for their passive customers) to an inter-organizational one (i.e., a collaborative process that involves multiple stakeholders including customers).…”