Abstract
The aim of this paper is to contribute to the strategic management literature by identifying empirically possible combinations of three organizational capabilities and to analyze whether the possible interaction between them leads to the creation of superior customer value. We aim to determine how the interaction between three capabilities (i.e., market orientation, knowledge management and customer relationship management) is and the potential effects of this relationship for increasing customer value. In order to test this question, we model a triple interaction effect following an orthogonalization approach using partial least squares (PLS). We used data from Spanish banking industry. Surprisingly, the triple effect explains more variance of customer value than the alternative operationalizations of the three organizational capabilities linked to customer value creation.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Wang, Y. H., Lo, P., Chi, R., and Yang, Y., “An Integrated Framework for Customer Value and Customer-Relationship-Management Performance: A Customer-Based Perspective from China,” Managing Service Quality, 14, 169–182, 2004.
Sánchez, R., Iniesta, M. A., and Holbrook, M. B., “The Ccnceptualisation and measurement of consumer value in services,” International Journal of Market Research, 51, 93–113, 2009.
Woodruff, R.B., “Customer Value: The Next Source for Competitive Advantage,” Journal of Academic Marketing Science, 25, 139–153, 1997.
Woodruff, R.B., & Gardial, S.F., Know Your Customer: New Approaches to Understanding Customer Value and Satisfaction. Cambridge, Mass: Blackwell Business, 1996.
Sirmon, D.G., Hitt, M.A., and Ireland, R.D., “Managing Firm Resources in Dynamic Environments to Create Value: Looking inside the Black Box,” Academic Management Review, 32, 273–292, 2007.
Morrow, J.L., Sirmon, D.G., Hitt, M.A., and Holcomb, T.R., “Creating Value in the Face of Declining Performance: Firm Strategies and Organizational Recovery,” Strategic Management Journal, 28, 271–283, 2007.
Henseler, J., & Chin, W. W., “A Comparison of Approaches for the Analysis of Interaction Effects Between Latent Variables Using Partial Least Squares Path Modeling.” Structural Equation Modeling, 17, 82–109, 2010.
Little, T.D., Bovaird, J.A., and Widaman, K.F., “On the merits of orthogonalizing powered and product terms: Implications for modeling interactions among latent variables,” Structural Equation Modeling, 13, 497–519, 2006.
Malhotra, N.K., and Birks, D.F., Marketing Research: An Applied Approach. Essex, UK: Financial Times/Prentice Hall, 2006.
Narver, J.C., & Slater, S.F., “The effect of a market orientation on business profitability,” Journal of Marketing, 54, 20–35, 1990.
Jaworski, B.J., & Kohli, A.K., “ Market orientation: Antecedents and consequences,” Journal of Marketing, 57, 53–70, 1993.
Jansen, J.J.P., Van den Bosch, F.A.J., and Volberda, H.W., “Managing potential and realized absorptive capacity: How do organizational antecedents matter?” Academic Management Journal, 48 999–1015, 2005.
Gold, A. H., Malhotra, A., and Segars, A. H. (2001). Knowledge management: An organizational capabilities perspective. Journal of Management Information Systems, 18, 185–214.
Chou, T.-C., Chang, P. -L., Cheng, Y.P., and Tsai, C.-T., “A path model linking organizational knowledge attributes, information processing capabilities, and perceived usability,” Information Management, 44, 408–417, 2007.
Reinartz, W., Krafft, M., and Hoyer, W.D., “The customer relationship management process: Its measurement and impact on performance,” J Marketing Res, 41, 293–305, 2004.
Hooley, G. J., Greenley, G. E., Cadogan, J. W., and Fahy, J., “The performance impact of marketing resources,” Journal of Business Research, 58, 18–27, 2005.
Lance, C. E., “Residual centering, exploratory and confirmatory moderator analysis, and decomposition of effects in path models containing interactions,” Applied Psychological Measurement, 12, 163–17, 1988.
Fornell, C., “A national customer satisfaction barometer: The Swedish experience,” Journal of Marketing, 56, 6–21. 1992.
Chin, W. W., “Issues and opinion on structural equation modeling,” MIS Quarterly, 22, 1–12, 1998.
Diamantopoulos, A., & Winklhofer, H., “Index construction with formative indicators: An alternative to scale development,” Journal of Marketing Research, 38, 269–277, 2001.
Ringle, C., Wende, S., and Will, A., SmartPLS, version 2.0 M2. http://www.smartpls.de, 2005.
Bagozzi, R. P., & Yi, Y., “On the evaluation of structural equation models,” Journal of Academic Market Science, 16, 74–94, 1988.
Fornell, C., & Larcker, D. F., “Evaluating structural equation models with unobservable variables and measurement error,” Journal of Marketing Research, 18, 39–50, 1981.
Mathieson, K., Peacock, E., and Chin, W. W., “Extending the technology acceptance model: The influence of perceived user resources,” The Data Base for Advances in Information Systems, 32, 86–112, 2001,
Podsakoff, P. M., MacKenzie, S. B., Lee, J. -Y., and Podsakoff, N. P., “Common method biases in behavioral research: A critical review of the literature and recommended remedies,” Journal of Applied Psychology, 88, 879–903, 2003.
Schreyögg, G., and Kliesch-Eberl, M., “How dynamic can organizational capabilities be?” Towards a dual-process model of capability dynamization. Strategic Management Journal, 28, 913–933, 2007.
Maklan, S., and Knox, S., “Dynamic capabilities: The missing link in CRM investments,” European Journal of Marketing, 43, 1392–1410, 2009.
Ambrosini, V., ND Bowman, C., “What are dynamic capabilities and are they a useful construct in strategic management?” International Journal of Management Reviews, 11, 29–49, 2009.
Luo, Y. (2000). “Dynamic capabilities in international expansion,” Journal of World Business, 35, 355–378, 2000.
Teece, D. J., “Capturing value from knowledge assets: The new economy, markets for know-how, and intangible assets,” California Management Review, 40, 55–79, 1998.
McNaughton, R. B., Osborne, P., Morgan, R. E., and Kutwaroo, G., “Market orientation and firm value,” Journal of Marketing Management, 17, 521–542, 2001.
Vorakulpipat, C., & Rezgui, Y., “Value creation: The future of knowledge management,” Knowledge Engineering Review, 23, 283–294, 2008.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2013 Springer Science+Business Media New York
About this paper
Cite this paper
Cepeda, G., Martelo, S., Barroso, C., Ortega, J. (2013). Integrating Organizational Capabilities to Increase Customer Value: A Triple Interaction Effect. In: Abdi, H., Chin, W., Esposito Vinzi, V., Russolillo, G., Trinchera, L. (eds) New Perspectives in Partial Least Squares and Related Methods. Springer Proceedings in Mathematics & Statistics, vol 56. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-8283-3_20
Download citation
DOI: https://doi.org/10.1007/978-1-4614-8283-3_20
Published:
Publisher Name: Springer, New York, NY
Print ISBN: 978-1-4614-8282-6
Online ISBN: 978-1-4614-8283-3
eBook Packages: Mathematics and StatisticsMathematics and Statistics (R0)