Utilization of new technologies: organizational adaptation to business environments

Abstract

The practice of introducing new technologies into the corporate environment has become a well-accepted principle for sustaining or advancing competitive advantages. The current study focuses on the environmental and managerial factors associated with the successful utilization of new technologies. To this end, the suggested framework examines the efforts put forth by the two parties involved (the firm buying and the firm supplying the new technology). We use 112 matched data collected from the suppliers and buyers of the customer relationship management (CRM) system in business-to-business markets. We find that the perceived turbulence of business environments stimulates adaptive efforts from both the supplying and buying firms, which may lead to a high level of utilization of new technologies for the buying firm.Most organizations introduce new technologies into their corporate environment with the strategic intent of sustaining or advancing their competitive positions in the marketplace. Innovation is the lifeblood of firms that determines their chances of survival and growth in dynamic markets (Cane 2006). While many organizations derive benefits from such investments, recent reports suggest that these cases may be in the minority (Tidd et al. 1997). One reason for this phenomenon is the firm's failure to attain a sufficient level of organization-wide utilization of the purchased technologies (Swanson and Ramiller 1997;Trott 1998). Previous literature on innovation focuses on a number of issues associated with the decision to procure organizational technologies such as the buying firm's corporate structure or disposition towards innovativeness, but the seller's role in the process has been neglected.The purpose of this paper is to advance the understanding of the organizational utilization of technology by pushing the scope of research in two distinct directions: (1) to look beyond the initial decision to purchase and to the phase of utilization; and (2) to widen the framing of the research problem to include seller's effort. Towards this end, we explore how factors intrinsic to the buying firm (the proactive purchase of new technology and the scope of participation of the buying center) and the seller's post-sale services may expedite the utilization of a new technology within the buying firm.The technology selected for the current study is the customer relationship management (CRM) system. Specifically, the CRM software package is designed to improve any given organization's customer retention level by integrating the front-and back-offices with access to the firm's customer records. That is, by integrating customer records with the firm's accounting, inventory, and distribution data, the CRM software should facilitate speedier service to customers, minimize errors in fulfilling orders, and improve overall sales productivity and organizational efficiency. Moreover, the flexibility of CRM systems enables them to be customized according to the needs of the user firm: i.e., installing software packages into the...

Organizational Learning and CRM Success: A Model for Linking Organizational Practices, Customer Data Quality, and Performance

“…A cultural mandate and a clear vision for managing the transfer of knowledge across the firm are requisites for enhancing customer data (Jayachandran et al 2005;Kim and Pae 2007;Verhoef et al 2010). Consistent with this view, Deshpandé and Webster (1989, p. 4) define organizational culture as "the pattern of shared values and beliefs that help individuals understand organizational functioning and thus provide them norms for behavior in the organization."…”

“…The failure of CRM systems has been attributed to the inability to facilitate and enhance the organization-wide transfer of customer information (Jayachandran et al 2005;Kim and Pae 2007;Verhoef et al 2010). For example, Homburg, Grozdanovic, and Klarmann 2007 found that changing the affective organizational system (i.e., customer culture) vis-à-vis CRM practices had a greater impact on performance than improving cognitive organizational systems (i.e., information technology).…”

“…For example, the MIS literature has found strong positive effects of cross-functional synergies, goal compatibility, cooperation, coordination and information sharing on adaptive information systems development and organizational performance (Sherif, Zmud, and Browne 2006;Tanriverdi 2006). Kim and Pae (2007) found that cross-departmental participation positively impacted new technology utilization. Integrative learning processes seem to be especially critical for generating high quality CRM data (Zahay et al 2004).…”

Co-creating e-service innovations: Theory, practice, and impact on firm performance

“…E-service innovation creates value by enabling service providers to use electronic technologies to improve customer-firm interactions and reduce service production risk (Hinnant & O'Looney, 2003;. Valuable outside information can be integrated with other customer records to improve the efficiency and effectiveness of service delivery (Kim & Jae, 2007). Xu, Sharma, and Hackney (2005) indicated that web-service innovation can be examined by "identify its unique characteristics which make it distinct to all other innovations" (p. 322); specifically, web-service innovations are aimed at achieving the following two goals: (a) to understand needs and develop appropriate responses to task requirements, and (b) to configure individually and tailor to adopter needs.…”

Understanding ICT Adoption Determinants among Indonesian SMEs in Fashion Subsector

“…Firm's market and competition is also has a significant impact on the effectiveness of firm's market sensing capability (Kohli and Jaworski, 1990). A Firm that operates in turbulence markets is forced to make additional adjustments and adaptations on the process of information absorption than do other firms operate in stable markets (Kim, N., and Jae, H. P., 2007). Finally, regulatory environment has been recognized as a critical environmental factor influences the diffusion of innovation.…”