B2B marketers increasingly encounter a pressure to be digitally present in digital channels and to generate content that is tempting in driving potential customers to interact with the company online (Wiersema, 2013; Andersson & Wikström 2017). This is what B2B lead nurturing is about as the objective of lead nurturing is to provide the audience with relevant and valuable content which leads to an increased brand interest and awareness, with the goal of bringing in new customers (Marketo, 2023). To better understand how prospects and leads react to digital content, companies can build lead scoring into a strategic tool for the salespeople to qualify the prospective customers down to a list of leads, meaning prospects who are considered the most likely to convert to a positive business outcome and to be contacted in person by the salespeople (Järvinen & Taiminen 2016; Paschen et al. 2020).
A secure digital platform (SDP) can provide B2B marketers with confidence to use communications technology (CT) and engage in information sharing that facilitates resource utilization. Interlinked digital platforms constitute the company’s ecosystem and barriers in the form of a lack of skills and knowledge in relation to governance and compliance can be overcome through organizational intervention that is external to an individual’s capability of control. A framework for an SDP was developed by utilizing network theory and data were collected via an online survey and analysed (n=207) using SEM, AMOS. Organizational intervention through an SDP can help B2B marketers to increase the organization’s resource capability through improved interaction. It can also help individuals to become pro-actively compliant and be less at risk from various threats (e.g., fake news) as the organization provides a safer digital environment.
Marketing automation influence the marketer’s decisions, enables them to automate traditionally marketing. Customers should receive automated and personalized communications. Marketing automation is the fastest growing tools in terms of adoption among digital marketers because of its capacity to achieve one-to-one communications and marketing tasks without any technical or personal skills.
Introduction
This research was conducted in order to examine the influence of corporate innovation such as product innovation and profit model innovation towards sustainable competitive advantage and marketing performance. In B2B, the two biggest concerns of a manufacturing company are to provide products suitable for customer's business and to secure profitability of company business. Especially in an age when customer needs are diverse, companies need a lot of investment and effort to differentiate their products. Even though it is doubtful whether products that achieve such differentiation can achieve successful business results. Unless it is a monopoly, there are limitations in satisfying individualized and customized market trends and diverse customer needs with the technology and product competitiveness of companies alone. Therefore, corporate innovation requires a comprehensive approach in terms of product innovation and business model innovation. And product innovation and continuous profit model innovation for improving the company's profit is a very important factor. In order to achieve these two core values, the company conducts efficient operations internally to continuously develop products that meet customer needs and to conduct close customer relationship management to maintain a firm brand position in the market. Therefore, this study is designed to investigate how the innovation efforts of companies in B2B affect the sustainable competitive advantage development and market performance. Unlike previous researches on corporate innovation which included product innovation, this study included profit model innovation as corporate innovation to investigate the effects of profit model innovation on the actual marketing performance of firms. In addition, it is distinguished from the existing customer-oriented competitive advantage study (Porter, 1985) by studying the effects of sustainable competitive advantage on market performance by defining and applying sustainable competitive advantage variables from the perspective of internal marketing efforts.
Theoretical Development
Firms' needs and efforts for technological innovation and product innovation are very important for sustainable growth through securing economic benefits of firms (Hauser et al., 2006, Dave et al., 2013). In order to achieve competitive advantage (low cost, product differentiation), companies pursued technological innovation and product innovation through R & D investment. However, in terms of providing a total solution that satisfies the needs of various customers in the global competitive environment and improving the profitability of the company, it is difficult to explain the innovation area of the company only by technological innovation and product innovation. Therefore, in this study, it defines the corporate innovation including the business model innovation such as profit model from the perspective of the system operation to the innovation area of the company according to the claim that the business model mediates the firm and business performance (Markides, 2006; Baden -Fuller & Haefliger, 2013). And using sustainable competitive advantage in terms of product leadership, operational excellence, and customer intimacy, this study analyzes the effects of these firm innovations on the sustainable competitive advantage and business performance. Corporate innovation is broadly categorized into three categories: process innovation, product innovation, and operational management innovation (Lee et al., 2013). And the Oslo manual classifies them as product innovation, process innovation, marketing innovation, and organizational innovation (OECD, 2005). In the past, where product-centered markets and external competition were stable, changes in product technology made business models largely changeable, so corporate innovation could be described as technological innovation and product innovation. However, the development of advanced technologies such as information and communication technology (ICT) requires that the field of corporate innovation activities be analyzed from a new business model perspective. This is because existing product innovation, process innovation, marketing innovation, and organizational innovation are insufficient to explain the birth and change of new business types occurring in the same industry. In addition, we can find examples of business model innovation as a type of corporate innovation in existing studies (Christensen, 1997; Christensen and Raynor, 2003; Markides, 2006; Taylor et al., 2012). Therefore, this study reflects these changes and includes business model innovation such as profit model as a type of corporate innovation. In addition, Porter (1985)'s traditional competitive strategy (low cost, product differentiation) has limitations in evaluating the impact of corporate innovation and analyzing its relationship with business performance. In order to compensate for this, we introduce three main variables: product leadership, operational excellence, and customer intimacy, which can segment the value domain of sustainable competitive advantage and measure strategic performance capability, as a sustainable competitive advantage (Treacy and Wiersema, 1995).
Research Design
In previous researches, it has focused on technological innovation and product innovation to achieve the competitive advantage of product for better business performance in competitive market. However, these studies do not adequately suggest corporate innovation direction for corporate’s sustainable growth in complex and evolving business environment. Therefore, this study redefines the domain of corporate innovation and sustainable competitive advantage and then analyzes the effect of corporate innovation and sustainable competitive advantage on business performance. The hypothesis to be analyzed through the research model is as follows:
H1. Product innovation has a positive impact on sustainable competitive advantage.
H2. Profit model innovation in Business model has a positive impact on sustainable competitive advantage.
H3. Sustainable competitive advantage has a positive impact on marketing performance.
H4. Product innovation has a positive impact on marketing performance.
H5. Profit model innovation in Business model has a positive impact on marketing performance.
<Figure 1 research model>
To analyze this hypothesis, it surveyed 300 machinery manufacturing companies producing intermediate goods in Korea through questionnaires with 5 point Likert scale. And the results were analyzed using SPSS (ver. 24.0) and AMOS (ver. 24.0).
Result and Conclusion
The findings show that profit model innovation of business model has a positive effect on the sustainable competitive advantage. However, product innovation has only a positive effect on product leadership of sustainable competitive advantage. And the sustainable competitive advantage has had a positive impact on market performance. Profit model innovation of business model also has an impact on market performance but product innovation has not a positive effect on market performance. It is meaningful that the company has confirmed the importance of the profit model innovation as well as the existing product innovation as the corporate innovation direction to pursue continuously. A practical implication of this study is that rapid technological advances, market changes, and globalization, as Bashir and Verma (2017) argue, should change profit model of a business model in order to maintain a sustainable competitive advantage in B2B of manufacturing industry. In order to maintain a sustainable competitive advantage, business model innovation with a clear profit model is highly needed as a new management strategy for the future. The theoretical implication of this study is that the existing studies on corporate innovation are focused on technology innovation, and the effect of product innovation on business performance is relatively small. In particular, empirical studies on the effect of business profit model innovation on marketing performance were not enough. Therefore, it can be said that the fact that product innovation and business profit model innovation have an influence on market performance expands empirical research.
This preliminary qualitative research investigates how stylistic innovation affects sales performance of small arts and crafts firms in business-to-business and business-to-consumer markets in Taiwan. Specifically this research examines entrepreneurial cognitive complexity, which is the cognitive structure of an entrepreneur on his or her social world, and its interplay with stylistic innovation, particularly the changes of design in appearance or symbolic meaning of products, and strategic decisions of five Taiwanese small arts and crafts firms. Applying cognitive mapping to determine the cognitive contents, structures and also their relations of the entrepreneurs in making decision related to stylistic innovation, this research examines how owners of small Taiwanese arts and crafts firms specifically seek, interpret and internalize information and knowledge on style and design in the new product development and innovation processes. Research results show that the domain specific cognitive complexity of the entrepreneur influences the selection of relevant and appropriate dimensions in stylistic innovation. Entrepreneurs’ strategic decision to target at the business-to-consumer (customer-oriented or designer-driven) or business-to-business (mainly designer-driven) markets and also the buyer-seller relationship will affect the seeking, interpretation and internalization of information and knowledge in the process of stylistic innovation. Respondents targeting at business-to-business markets tend to have a higher level of cognitive complexity, compared with those targeting at business-to-consumer markets. Research results tend to suggest that the higher level of cognitive complexity, the greater the sales turnover. Future research should determine the relationship between cognitive complexity and marketing performance.
As mass production reaches the technical limits of industrial technology, suppliers are finding it more difficult to differentiate their products for quality and cost. Many companies in the manufacturing industry are trying diverse approaches to differentiate their products and compete with their rivals. Some companies are moving beyond hard product development to focus on soft product development such as customer solutions in the aftermarket. Some companies are enlarging their businesses to new areas such as financial services. They are also driving their employees to be more innovative in product design to lower costs and provide better quality to increase brand benefits. Companies that are less innovative in product development strive to establish closer communications with their business partners. To increase sustainable competitive advantages in the difficult business environment, they must simultaneously reinforce brand benefits and the quality of relationships. In this research, I try to verify the relationship between brand benefits and customer value and between relationship quality and customer value by introducing customer value as a new construct. The results show that better quality, committed delivery, economical cost, and new features motivate buyers to purchase products. relationship quality influences customer satisfaction as transaction value followed by relationship value. Thus the better relationship quality motivates buyer to purchase supplier’s product with psychological satisfaction or pleasure. In conclusion, for existing customer, marketer needs to develop marketing strategy which supports the reinforcement of relationship quality between buyer and supplier. This study also provides implication for academic researchers. Until now there was no research to introduce customer value when it explains the relationship between relationship quality and customer satisfaction. This customer value introduction will help for researchers to analyze the relationship between consumer and marketing activity.