The advent of new electronic platforms is forcing firms from a range of industries to come
together in so-called �value networks� for the provision of innovative mobile services. Yet
the rapid evolution of mobile services has left many issues unresolved. The problems of
interest to us include uncertainty with respect to the complex networks that are involved in
delivering these services. In environments of increasing electronic interaction, the value chain
concept, where materials are moved sequentially down a supply chain, has been replaced
by the value network, which is a dynamic network of partnerships and information flows
(Bovel & Martha, 2000), changing as customer preferences change. This phenomenon is also
taking place in the telecommunications industry (Li & Whalley, 2002; Maitland, Bauer, &
Westerveld, 2002; Sabat, 2002). We aim to understand the interdependencies among actors
involved in delivering mobile services in general, and mobile information and entertainment
services and location-based services in particular in terms of their contribution to value
creation. To this end, we adopt a resource-based perspective.
We consider a number of innovative cases of mobile information and entertainment services.
Such services involve the delivery of information and entertainment content to a
mobile user. Since these services typically require collaboration of a range of actors across
different sectors, our analysis encompasses the entire �value network� of firms involved in
making the service available. Whilst research on value networks for mobile services could
be approached from several angles, including network formation, strategic management,
and so forth, here we focus on resources and interdependencies. We investigate the actual
constellation of actors: what are their resources, how are they interdependent, and what do
they contribute to the value network? Is content really king?
The chapter is structured as follows. We begin with a brief review of relevant literature to
provide a basis for our analysis of several mobile information and entertainment services. In
particular, we examine the interdependencies among actors in the value networks and how
their contribution to value creation determines their strategic position within the network.
These tools are then used to analyse each of the five case studies of specific services. In the
cross-case analysis, we collate and discuss the findings from the cases, paying particular
attention to the role of content and the position of content providers. We conclude with the
implications of our research for the literature on value networks and point to further areas
of research.
Friday, August 6, 2010
Path.to.Successful.Implementation.in.Small.and Large.Firms
There may be a giant step from initiation and adoption of innovations to successful implementation
of them. In particular, an Internet-based marketing channel may imply difficult
changes in internaThus, we were interested in the characteristics of those organizations reporting successful
implementation of interactive technology.
The correlations found in this explorative part of the analysis indicate that the explanations
for success or failure in implementation differ from the explanations for success or failure in
initiation and adoption. Willingness to cannibalize seems to be a less-important driverl procedures before interactive features make it useful to customer
These findings as well as findings from a related study of Internet banking indicate that
the adoption and implementation of Web technologies are complex processes that can be
understood as both technology push and demand pull processes, and they are subject to
disagreement (Flohr Nielsen, 2006). Conflicts grow out of structural differentiation or specialization
and are found at the inter-organizational, inter-departmental, and interpersonal
levels. Differences in the willingness to cannibalize do not necessarily develop into manifest
conflict, but opinions often differ between key people such as IT and marketing managers.
Thus, when identifying a firm�s willingness to cannibalize as an important antecedent
to early adoption and implementation of Internet-based marketing channels and Internet
banking, it must be understood that such willingness reflects an overall attitude that results
either from compromise between key actors� different attitudes or from the defeat of one
or more actors.
From an organizational change view this seems to have important implications for practitioners.
In planned change processes it has to be taken into account how conflicts are handled.
Often it may become necessary to include participative organizational development techniques
as well as conflict-handling interventions. When implementation success seems to
be very dependent on top management support, it is in line with a recent meta-analysis of
information systems implementation (Sharma & Yetton, 2003). This study shows that task
interdependence moderates the effect of management support on implementation success.
Since the activities connected to sophisticated marketing channels are highly interdependent
and cross-functional, it is important that management provides the resources and incentives
necessary to accomplish these projects.
However, the capability of organizations to fully exploit their current investments in installed
IT is generally an issue involving complex post-adoptive behaviors, and neither
prior use, habit, nor feature-centric views have been fully addressed in previous research
(Jasperson, Carter, & Zmud, 2005). Because of such deficiencies we can only cautiously
suggest that the successful implementation and use of Internet-based marketing may also
need interventions that induce members of the organization to engage in learning on these
IT-enabled work systems.
of them. In particular, an Internet-based marketing channel may imply difficult
changes in internaThus, we were interested in the characteristics of those organizations reporting successful
implementation of interactive technology.
The correlations found in this explorative part of the analysis indicate that the explanations
for success or failure in implementation differ from the explanations for success or failure in
initiation and adoption. Willingness to cannibalize seems to be a less-important driverl procedures before interactive features make it useful to customer
These findings as well as findings from a related study of Internet banking indicate that
the adoption and implementation of Web technologies are complex processes that can be
understood as both technology push and demand pull processes, and they are subject to
disagreement (Flohr Nielsen, 2006). Conflicts grow out of structural differentiation or specialization
and are found at the inter-organizational, inter-departmental, and interpersonal
levels. Differences in the willingness to cannibalize do not necessarily develop into manifest
conflict, but opinions often differ between key people such as IT and marketing managers.
Thus, when identifying a firm�s willingness to cannibalize as an important antecedent
to early adoption and implementation of Internet-based marketing channels and Internet
banking, it must be understood that such willingness reflects an overall attitude that results
either from compromise between key actors� different attitudes or from the defeat of one
or more actors.
From an organizational change view this seems to have important implications for practitioners.
In planned change processes it has to be taken into account how conflicts are handled.
Often it may become necessary to include participative organizational development techniques
as well as conflict-handling interventions. When implementation success seems to
be very dependent on top management support, it is in line with a recent meta-analysis of
information systems implementation (Sharma & Yetton, 2003). This study shows that task
interdependence moderates the effect of management support on implementation success.
Since the activities connected to sophisticated marketing channels are highly interdependent
and cross-functional, it is important that management provides the resources and incentives
necessary to accomplish these projects.
However, the capability of organizations to fully exploit their current investments in installed
IT is generally an issue involving complex post-adoptive behaviors, and neither
prior use, habit, nor feature-centric views have been fully addressed in previous research
(Jasperson, Carter, & Zmud, 2005). Because of such deficiencies we can only cautiously
suggest that the successful implementation and use of Internet-based marketing may also
need interventions that induce members of the organization to engage in learning on these
IT-enabled work systems.
Ownership.of.Technological.Innovation
Successful implementation of a strategy depends on employee commitment (Noble & Mokwa,
1999). Specific commitment to a strategy or an innovation is almost synonymous with the
concept of ownership (Argyris & Kaplan, 1994), or with the concept of user involvement
as used in information-systems literature (Barki & Hartwick, 1994). User involvement is
seen as the individual user�s understanding of the importance, for instance, of an information-
system project, and may in turn be established through user participation (Barki &
Hartwick, 1994; Ives & Olson, 1984).
Whenever achieved, the inherent feeling of ownership may not merely help in overcoming
resistance to change; rather, �owners� may play innovating roles themselves. Some may
even become "champions" of technological innovation, by acting as informal transformational
leaders contributing to the innovation by actively and enthusiastically promoting its
progress (Howell & Higgins, 1990). In information-systems projects users now often take
the lead because widespread decentralization has made information technology a powerful
business tool in the hands of end-users, including those who are responsible for satisfying
customers (Martinson & Chong, 1999).
Though intuitively compelling, the impact on performance of ownership, specific commitment,
and user involvement has not been well documented. The reported positive results
are often insignificant, and the literature on commitment still makes little comment on the
motivational impact of specific commitment (Becker, Billings, Eveleth, & Gilbert, 1996).
Even the reported positive impact of user involvement on information-system projects may
be questioned because of methodological problems (Ives & Olson, 1984).
In this chapter, "ownership" means employee commitment to the Internet project; ownership
is not limited to isolated individuals but may include all the employees working in a firm or
on a certain project. It is assumed that a strong feeling of ownership of an Internet project
will generally stand in opposition to any personal loyalty to existing marketing channels.
The effect of ownership on the adoption of Internet-based interaction with customers may
be mediated by the willingness to cannibalize. There may, however, also be a direct effect
because innovation is not always expected to cannibalize existing investments or because
the cannibalization effect is unimportant.
H4: The stronger the ownership feeling toward the Internet projects in a company, the
greater the company�s willingness to cannibalize.
H5: The stronger the ownership feeling toward the Internet projects in a company, the
more likely the company is to adopt Internet-based interaction with its customers
1999). Specific commitment to a strategy or an innovation is almost synonymous with the
concept of ownership (Argyris & Kaplan, 1994), or with the concept of user involvement
as used in information-systems literature (Barki & Hartwick, 1994). User involvement is
seen as the individual user�s understanding of the importance, for instance, of an information-
system project, and may in turn be established through user participation (Barki &
Hartwick, 1994; Ives & Olson, 1984).
Whenever achieved, the inherent feeling of ownership may not merely help in overcoming
resistance to change; rather, �owners� may play innovating roles themselves. Some may
even become "champions" of technological innovation, by acting as informal transformational
leaders contributing to the innovation by actively and enthusiastically promoting its
progress (Howell & Higgins, 1990). In information-systems projects users now often take
the lead because widespread decentralization has made information technology a powerful
business tool in the hands of end-users, including those who are responsible for satisfying
customers (Martinson & Chong, 1999).
Though intuitively compelling, the impact on performance of ownership, specific commitment,
and user involvement has not been well documented. The reported positive results
are often insignificant, and the literature on commitment still makes little comment on the
motivational impact of specific commitment (Becker, Billings, Eveleth, & Gilbert, 1996).
Even the reported positive impact of user involvement on information-system projects may
be questioned because of methodological problems (Ives & Olson, 1984).
In this chapter, "ownership" means employee commitment to the Internet project; ownership
is not limited to isolated individuals but may include all the employees working in a firm or
on a certain project. It is assumed that a strong feeling of ownership of an Internet project
will generally stand in opposition to any personal loyalty to existing marketing channels.
The effect of ownership on the adoption of Internet-based interaction with customers may
be mediated by the willingness to cannibalize. There may, however, also be a direct effect
because innovation is not always expected to cannibalize existing investments or because
the cannibalization effect is unimportant.
H4: The stronger the ownership feeling toward the Internet projects in a company, the
greater the company�s willingness to cannibalize.
H5: The stronger the ownership feeling toward the Internet projects in a company, the
more likely the company is to adopt Internet-based interaction with its customers
E-Business Strategies and Consumer Behavior Model
It is now conventional wisdom that both customers and manufacturers have strong incentives
to use Internet-based marketing channels (Alba et al., 1997; O�Cass & Fenech, 2003). It has
been argued that the Internet is changing the structure of marketing channels, especially in
industries such as retail banking, news media, and music, where an important part of the
output is in digital.form (Mols, Bukh, & Flohr Nielsen, 1999). However even many small
and medium-sized manufacturers have adopted and implemented Internet-based marketing
channels, though great differences can be observed in how these firms have actually gone
about this.
This chapter examines possible explanations of the adoption and implementation. Some of
the drivers of such radical innovations have been identified in previous research. Notably
willingness to cannibalize (Chandy & Tellis, 1998) and recent findings in the U.S. stress the
importance of the sense-and-respond capabilities of firms in e-business (Srinivasan, Lilien,
& Rangaswarny, 2002). As our study is based on a large European sample including several
small and medium-sized manufacturers, the intention is to allow more rigorous analyses using
structural equation modelling and trace how size may influence the models of adoption.
In continuation, the path to successful implementation is explored.
First, the chapter briefly reviews the literature on changes in marketing channels and on
organizational innovation. Then it proposes a basic research model for examining the adoption
of new channels, and the model and its 11 hypotheses are explained in detail. After
describing the methodology, we present the results of our survey of Nordic manufacturers,
stressing the role of willingness to cannibalize. Finally, the results and the theoretical and
managerial implications are discussed.
Internet-based marketing channels may radically interfere with the work and communication
connected with getting products and services from producer to consumer. However
the literature on marketing channels stresses that distribution systems are usually rigid and
stable because of persistent inertia. Firms wanting to convert from one type of marketing
channel to another often face resistance, conflict, and customer confusion (Anderson, Day,
& Rangan, 1997; Weiss & Anderson, 1992). Thus, Stern and Sturdivant (1987) contend that
of all marketing decisions facing firms, those that concern the design of distribution systems
are the most far reaching, resource demanding, and time consuming. The right investments in
distribution channels have traditionally provided long-term protection against competition,
and few researchers have been concerned with proposing strategic design principles focussing
on the dynamics of marketing channels or on feedback mechanisms that continually
monitor the design of distribution channels (for an exception, see Anderson et al., 1997).
The economic approach to analyzing marketing channels has been concerned with under
to use Internet-based marketing channels (Alba et al., 1997; O�Cass & Fenech, 2003). It has
been argued that the Internet is changing the structure of marketing channels, especially in
industries such as retail banking, news media, and music, where an important part of the
output is in digital.form (Mols, Bukh, & Flohr Nielsen, 1999). However even many small
and medium-sized manufacturers have adopted and implemented Internet-based marketing
channels, though great differences can be observed in how these firms have actually gone
about this.
This chapter examines possible explanations of the adoption and implementation. Some of
the drivers of such radical innovations have been identified in previous research. Notably
willingness to cannibalize (Chandy & Tellis, 1998) and recent findings in the U.S. stress the
importance of the sense-and-respond capabilities of firms in e-business (Srinivasan, Lilien,
& Rangaswarny, 2002). As our study is based on a large European sample including several
small and medium-sized manufacturers, the intention is to allow more rigorous analyses using
structural equation modelling and trace how size may influence the models of adoption.
In continuation, the path to successful implementation is explored.
First, the chapter briefly reviews the literature on changes in marketing channels and on
organizational innovation. Then it proposes a basic research model for examining the adoption
of new channels, and the model and its 11 hypotheses are explained in detail. After
describing the methodology, we present the results of our survey of Nordic manufacturers,
stressing the role of willingness to cannibalize. Finally, the results and the theoretical and
managerial implications are discussed.
Internet-based marketing channels may radically interfere with the work and communication
connected with getting products and services from producer to consumer. However
the literature on marketing channels stresses that distribution systems are usually rigid and
stable because of persistent inertia. Firms wanting to convert from one type of marketing
channel to another often face resistance, conflict, and customer confusion (Anderson, Day,
& Rangan, 1997; Weiss & Anderson, 1992). Thus, Stern and Sturdivant (1987) contend that
of all marketing decisions facing firms, those that concern the design of distribution systems
are the most far reaching, resource demanding, and time consuming. The right investments in
distribution channels have traditionally provided long-term protection against competition,
and few researchers have been concerned with proposing strategic design principles focussing
on the dynamics of marketing channels or on feedback mechanisms that continually
monitor the design of distribution channels (for an exception, see Anderson et al., 1997).
The economic approach to analyzing marketing channels has been concerned with under
Contributions.and. Implications. of. this.Study
The most important contribution of this study is the representation of a process-based
categorization of B2B models and their assessment. This approach can also be used as a
benchmark for the evaluation and comparison of other new and upcoming B2B business
models and processes based on these models
The authors assume that similar studies or parts of these are used by consulting companies
in approaches to carry out analyses of models and process chains or SWOT analyses. The
process-based approach in this cross-sectional study is presented with some selected B2B
buy- and sell-side models. A longitudinal study could provide more meaningful and deeper
insights.
Future research in this domain could examine:
� Details.of.the.processes:.Lists introduced in this paper for the B2B fields of buyand
sell-side. A major goal should be to increase the depth for the classification and
refinement of existing models: A survey methodology could be used to determine the
frequency of these processes used by different B2B models in the marketspace.
� Expansion.of.the.process:.Lists to other models such as B2B-marketplaces, e-collaboration,
or to the extended supply chain. This could widen the universe for classification
of B2B models and lead to standardization in the categorization.
� Establishment.of.process.B2B.model.arrays:.(Showing models and processes in a
table format) for simplified analysis of similarities and differences between models.
Such matrices can also be used for fitting software products to different business models
or in the support of �Make or Buy� decisions in different stages of organizational
readiness.
categorization of B2B models and their assessment. This approach can also be used as a
benchmark for the evaluation and comparison of other new and upcoming B2B business
models and processes based on these models
The authors assume that similar studies or parts of these are used by consulting companies
in approaches to carry out analyses of models and process chains or SWOT analyses. The
process-based approach in this cross-sectional study is presented with some selected B2B
buy- and sell-side models. A longitudinal study could provide more meaningful and deeper
insights.
Future research in this domain could examine:
� Details.of.the.processes:.Lists introduced in this paper for the B2B fields of buyand
sell-side. A major goal should be to increase the depth for the classification and
refinement of existing models: A survey methodology could be used to determine the
frequency of these processes used by different B2B models in the marketspace.
� Expansion.of.the.process:.Lists to other models such as B2B-marketplaces, e-collaboration,
or to the extended supply chain. This could widen the universe for classification
of B2B models and lead to standardization in the categorization.
� Establishment.of.process.B2B.model.arrays:.(Showing models and processes in a
table format) for simplified analysis of similarities and differences between models.
Such matrices can also be used for fitting software products to different business models
or in the support of �Make or Buy� decisions in different stages of organizational
readiness.
Key. Issues.and.Trends. in. E-Business
Over the last decade, economic and technological advances have created a period of intense
globalization. A single world market is emerging in which the opportunities for global business
are enhanced by technical advances. These rapidly evolving new technologies enable
companies to reach their customers and trading partners around the world in just seconds,
regardless of geographic and/or time distances, political boundaries, and other barriers. The
growth of the Internet has intensified the speed of globalization and the need for companies
to implement effective global marketing and e-commerce strategies. With non-U.S. B2B ecommerce
spending projected to reach $2.8 trillion by 2004 (87% of total e-commerce), global
e-commerce is a major growth opportunity for U.S. companies (Saucini, LLC, 2002).
� E-commerce, and particularly B2B, is still in a rapid growth phase
� The domestic B2B e-commerce opportunity is dwarfed by the international opportunity
(European e-commerce revenues will surpass those of North America by 2005)
� Trends in e-commerce adoption are rapidly shifting the buyer base away from the
current North American, English language dominance
� Research indicates that B2B buyers are three to four times more likely to buy from
an e-commerce site presented in their native language
globalization. A single world market is emerging in which the opportunities for global business
are enhanced by technical advances. These rapidly evolving new technologies enable
companies to reach their customers and trading partners around the world in just seconds,
regardless of geographic and/or time distances, political boundaries, and other barriers. The
growth of the Internet has intensified the speed of globalization and the need for companies
to implement effective global marketing and e-commerce strategies. With non-U.S. B2B ecommerce
spending projected to reach $2.8 trillion by 2004 (87% of total e-commerce), global
e-commerce is a major growth opportunity for U.S. companies (Saucini, LLC, 2002).
� E-commerce, and particularly B2B, is still in a rapid growth phase
� The domestic B2B e-commerce opportunity is dwarfed by the international opportunity
(European e-commerce revenues will surpass those of North America by 2005)
� Trends in e-commerce adoption are rapidly shifting the buyer base away from the
current North American, English language dominance
� Research indicates that B2B buyers are three to four times more likely to buy from
an e-commerce site presented in their native language
Analyzing. the. Effectiveness. of.B2B
After the fallout of the dot-com companies and some unfulfilled expectations of the �B2B
hype,� the analysis of the effectiveness of B2B is important as it builds a base for understanding
the problems and actual trends in the area. Kaplan and Garciano (2001) state that B2B�s
key role is that of reducing transaction costs faced by buyers and sellers. They identify the
following five ways in which B2B e-commerce can potentially decrease transaction costs
and effectively operate in the post dot.com crash era:
1. By.changing.or.improving.processes:.Ariba reduces the costs of purchasing used
automobiles by not having to physically ship the product to an auction site.
2. By.changing.the.marketplace:.For both buyers and sellers it is less costly to search
for products over the Internet than having to conduct a physical search.
3. By.changing.decisions:.Indirect benefits may arise due to the reduced transaction
costs. As transaction costs decline, the buyer might decide to outsource a product as
opposed to producing it himself. Furthermore, �better information about future demand
through B2B e-commerce may allow a seller to improve its demand forecasts and
change its production decisions� (Kaplan & Garciano, 2001, p. 5).
4. By.changing.information.incompleteness.and.asymmetries:.The Internet changes
the asymmetric information buyers and sellers have about each other and their products,
leading to a transformation in the marketspace.
5. By.changing.the.ability.to.commit:.By standardizing processes and by providing an
electronic trail, the Internet has the potential to increase the ability to commit, thus
reducing imperfect commitment costs.
Finally, Kaplan and Garciano (2001) conclude that in order to succeed future B2B business
models must include �measurable benefits and charge customers as a function of those benefits.�
Similarly, if a company cannot secure a customer�s commitment when allowing or
facilitating price discovery, it is likely to fail since its customers will likely use its services
to define a market for the product/service and go elsewhere to complete the transaction.
hype,� the analysis of the effectiveness of B2B is important as it builds a base for understanding
the problems and actual trends in the area. Kaplan and Garciano (2001) state that B2B�s
key role is that of reducing transaction costs faced by buyers and sellers. They identify the
following five ways in which B2B e-commerce can potentially decrease transaction costs
and effectively operate in the post dot.com crash era:
1. By.changing.or.improving.processes:.Ariba reduces the costs of purchasing used
automobiles by not having to physically ship the product to an auction site.
2. By.changing.the.marketplace:.For both buyers and sellers it is less costly to search
for products over the Internet than having to conduct a physical search.
3. By.changing.decisions:.Indirect benefits may arise due to the reduced transaction
costs. As transaction costs decline, the buyer might decide to outsource a product as
opposed to producing it himself. Furthermore, �better information about future demand
through B2B e-commerce may allow a seller to improve its demand forecasts and
change its production decisions� (Kaplan & Garciano, 2001, p. 5).
4. By.changing.information.incompleteness.and.asymmetries:.The Internet changes
the asymmetric information buyers and sellers have about each other and their products,
leading to a transformation in the marketspace.
5. By.changing.the.ability.to.commit:.By standardizing processes and by providing an
electronic trail, the Internet has the potential to increase the ability to commit, thus
reducing imperfect commitment costs.
Finally, Kaplan and Garciano (2001) conclude that in order to succeed future B2B business
models must include �measurable benefits and charge customers as a function of those benefits.�
Similarly, if a company cannot secure a customer�s commitment when allowing or
facilitating price discovery, it is likely to fail since its customers will likely use its services
to define a market for the product/service and go elsewhere to complete the transaction.
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