Engagement Capability, Innovation Intensity and Firm Performance: The Role of Competitive Intensity
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Date
2020
Authors
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Journal ISSN
Volume Title
Publisher
Journal of African Business
Abstract
This study assesses how service firms’ engagement capability
enhances their value creation advantages. We analyze how the
development of engagement capability helps service firms to cre ate innovation advantages and enhance firm performance. The
study also evaluates the moderating effect of competitive intensity
on the relationship between engagement capability and firm per formance. We collected data from the service sectors from an
emerging African economy, Ghana. The validity and the reliability
of the constructs were confirmed through a confirmatory factor
analysis. We then assessed our hypothesized relationships through
robust standard error hierarchical regression. The results show that
developing and deploying customer engagement capability by
firms produces positive effects on both innovation intensity and
firm performance. The study also finds that competitive intensity as
a market condition serves as a boundary condition and therefore
moderate the relationship between customer engagement and
firm performance. A useful implication from this study is that,
inasmuch as service firms must encourage customer engagement
and participation in the value creation process, firms must also be
mindful of their capacity to meet the engagement requirements for
effective value co-creation of the market conditions under which
they currently operate.
Description
Research Article
Keywords
Customer engagement, service innovation, co-creation
Citation
Thomas Anning-Dorson & Michael Boadi Nyamekye (2020) Engagement Capability, Innovation Intensity and Firm Performance: The Role of Competitive Intensity, Journal of African Business, 21:4, 493-508, DOI: 10.1080/15228916.2020.1790914