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Investigating firm's customer agility and firm performance: The importance of aligning sense and respond capabilities

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  • Roberts, Nicholas
  • Grover, Varun
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    Abstract

    In today's hypercompetitive environment, firms that are agile tend to be more successful. However, despite the widely accepted importance of agility, there is limited research on this construct. In this study we aim to conceptually define and operationalize firm's customer agility. We propose that agility comprises two distinct capabilities, sensing and responding, and we address the issue of alignment between these capabilities and its impact on performance. Using a dynamic capabilities framework, we formulate both matching and mediating perspectives on customer agility. Based on data collected from marketing managers, we tested hypotheses pertaining to the two methods of alignment. The results indicate significant support for the role of both forms of alignment on performance. Implications for research and practice are discussed.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 65 (2012)
    Issue (Month): 5 ()
    Pages: 579-585

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    Handle: RePEc:eee:jbrese:v:65:y:2012:i:5:p:579-585

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    Web page: http://www.elsevier.com/locate/jbusres

    Related research

    Keywords: Customer agility; Sense and respond; Dynamic capabilities; Alignment;

    References

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    1. Akbar Zaheer & Srilata Zaheer, 1997. "Catching the Wave: Alertness, Responsiveness, and Market Influence in Global Electronic Networks," Management Science, INFORMS, vol. 43(11), pages 1493-1509, November.
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    3. Sanchez, Ron, 2004. "Understanding competence-based management: Identifying and managing five modes of competence," Journal of Business Research, Elsevier, vol. 57(5), pages 518-532, May.
    4. Jarratt, Denise & Fayed, Ramzi, 2001. "The impact of market and organisational challenges on marketing strategy decision-making: a qualitative investigation of the business-to-business sector," Journal of Business Research, Elsevier, vol. 51(1), pages 61-72, January.
    5. Sharifi, H. & Zhang, Z., 1999. "A methodology for achieving agility in manufacturing organisations: An introduction," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 7-22, May.
    6. Nath, Deepika & Newell, Stephanie E., 1998. "Organizational responses to a hypercompetitive environment: A case study of Pepsi Canada," Journal of Business Research, Elsevier, vol. 41(1), pages 41-48, January.
    7. Edwards, Jeffrey R., 1994. "The Study of Congruence in Organizational Behavior Research: Critique and a Proposed Alternative," Organizational Behavior and Human Decision Processes, Elsevier, vol. 58(1), pages 51-100, April.
    8. Yusuf, Y. Y. & Sarhadi, M. & Gunasekaran, A., 1999. "Agile manufacturing:: The drivers, concepts and attributes," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 33-43, May.
    9. Rapp, Adam & Trainor, Kevin J. & Agnihotri, Raj, 2010. "Performance implications of customer-linking capabilities: Examining the complementary role of customer orientation and CRM technology," Journal of Business Research, Elsevier, vol. 63(11), pages 1229-1236, November.
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    Cited by:
    1. Stephanie Fernhaber, 2013. "Untangling the relationship between new venture internationalization and performance," Journal of International Entrepreneurship, Springer, vol. 11(3), pages 220-242, September.
    2. Fullerton, Rosemary R. & Kennedy, Frances A. & Widener, Sally K., 2013. "Management accounting and control practices in a lean manufacturing environment," Accounting, Organizations and Society, Elsevier, vol. 38(1), pages 50-71.
    3. Trainor, Kevin J. & Andzulis, James (Mick) & Rapp, Adam & Agnihotri, Raj, 2014. "Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM," Journal of Business Research, Elsevier, vol. 67(6), pages 1201-1208.

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