VALUE CREATION STRATEGY AND SALES PERFORMANCE OF SMALL AND MEDIUM SIZE EXPORTING FIRMS IN SOUTH-SOUTH NIGERIA
Keywords:
Customer-Centricity, Sales Turnover, Repeat Purchase, Exporting SMEs, South-South Nigeria
Abstract
The study investigated the relationship between value creation strategy and sales performance of food and beverage exporting Small and Medium Enterprises (SMEs) in the South-South geopolitical zone in Nigeria. The study adopted a descriptive survey research design. The questionnaire was the main instrument for data collection from a population consisting of 160 firms involved in exporting food and beverages. The sample was made up of managers and owners of the firms. The questionnaire was validated by experts drawn from the marketing department of the University of Nigeria, Nsukka. The reliability test result using Cronbach Alpha produced a value of 0.842. Both descriptive and inferential statistical tools were employed to analyze the data with Statistical Package for Social Science (SPSS) (version 21.0). The statistical results showed that customer-centricity strategy was critical in determining the outcome of sales performance of food and beverage exporting SMEs in South-South, Nigeria. The study concluded that customer-centricity as a value-creating strategy had a significant statistical influence on sales performance by food and beverage exporting SMEs in South-South Nigeria. Precisely, 70.0%, changes in sales performance were significantly predicted by customer-centricity. Therefore, this study recommended that food and beverage exporting firms should adopt customer-centricity as a marketing strategy instead of being product-centric.
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References
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Chin T. S. (2014). The relationship between customers’ switching cost and repurchase intention: The moderating role of satisfaction Journal of Service Science and Management, 34(2), 125-134.
Cooper & Schindler (2003). Business research methods, New York: McGraw-Hill and Irwin Publishing.
Drabek, Z. & Olechowski, A. (2010). Price and quality competitiveness of socialist countries’ export. Policy, Planning and Research Working Paper, 317, 1-27.
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Garga, E. & Bambale, A. (2016). The impact of service quality on customer patronage: Mediating effects of switching cost and customer satisfaction.International Journal of Global Business, 9(1), 39-58.
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Sullivan, U. Y., Peterson, R. M. & Krishnan, V. (2012). Value creation and firm sales performance: the mediating roles of strategic account management and relationship perception. Industrial Marketing Management, 41, 166–173.
Taifi, N. (2013). Value creation for the after-sales services: organizational and strategic perspectives. Chinese Business Review, 12 (9), 625-638.
Tesfom, G., & Lutz, C. (2006). A Classification of export marketing problems of small and medium sized manufacturing firms in developing countries. International Journal of Emerging Markets, 1(3): 262-281.
Tournois, L. (2004). Creating Customer Value: Bridging Theory and Practice. Marketing Management Journal, 14(2), 12 – 23.
Toyese, A. Y. (2014). Customer Relationship Management and Customer Loyalty in Nigerian Telecommunication Industry. The Business & Management Review, 4 (3), 43-50.
Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350.
doi:10.1002/smj.640
Teece, D.J., Pisano, G. & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal. 18, 509–533
Tseng, M. & Piller, F. (2003). The Customer Centric Enterprise: Advances in Mass Customization and Personalization. New York: Springer Publications.
Ulaga, W. (2001). Customer value in business markets: an agenda for inquiry. Industrial Marketing Management, 30, 1-7.
Ulaga, W. (2003). Capturing value creation in business relationships: a customer perspective. Industrial Marketing Management, 32, 677– 693.
Vakilifard, H. & Khozein, A. (2012). Prevention, appraisal, internal failure, external failure cost and quality optimization.International Journal of Mathematics and Computer Sciences, 10, 539-551.
Vargo, S. L. & Lusch, R. F. (2010). From repeat patronage to value co-creation in service ecosystems: A transcending conceptualization of relationship.Journal of Business and Marketing Management, 4, 169–179.
Vargo, S. L. & Lusch, R. F (2004). Evolving to a new dominant local for marketing. Journal of Marketing, 68, 1 – 17.
Vargo, S. L. & Robert F.L. (2008), Service dominant logic: continuing the evolution. Journal of the Academy of Marketing Science 36(1), 1-10.
Woodall, T. (2003). Conceptualization “Value for the Customer”: An Attributional, Structural and Dispositional Analysis. Academy of Marketing Science Review, (12), 10-25.
Woodruff, R. (1997). Customer value: the next source for competitive advantage. Journal of the Academy of Marketing Science, 25(2), 139 – 153.
Wright, J. (2017). The Art of Customer Centricity and Its Impact on Business Growth. Eagle’s Flight. Retrieved from:http//www.eaglesflight.hs-sites./com. ((Accessed 10/08/2017).
Zahva, S. A. & Garvis, D. M. (2000). International corporate entrepreneurship and firm performance. the moderating effect of international environmental hostility. Journal of Business Venturing 16(4) 469 – 485.
Zollo, M. & Winter, S. (2002). Deliberate learning and the evolution of dynamic capabilities. Organization Science, 13, 339-351.
Agbor-Ndakaw, A. (2010). Financial regulations, risk management and value creation in financial institutions: www.emoireonline
Alfieri, P. (2015).Data driven and customer centric: marketers turning insights into impact. forbe insights.Retrieved from: www.forbes.com/forbesinsights (Accessed 10/08/2017).
Ambrosini, V., Bowman, C. & Collier, N. (2009) What are dynamic and micro foundations of (sustainable) enterprise performance’, Strategic Management Journal 28(13): 1319–50.
Asika, N. (2000). Research methodology in behavioural sciences, Lagos: Longman Nigeria Plc.
Bii, M. E. (2014). The influence of customer centric strategic approach for competitive advantage on customer satisfaction in CFC stanbic bank kenya limited. International Journal of Economics, Commerce and Management, 2(11), 1-21.
Brown, C. L. (2016). Customer centricity: why great products are not enough anymore. Market Culture Strategies Inc. capabilities and are they a useful construct in strategic management? International Journal of Management Reviews 1468-2370.
Chin T. S. (2014). The relationship between customers’ switching cost and repurchase intention: The moderating role of satisfaction Journal of Service Science and Management, 34(2), 125-134.
Cooper & Schindler (2003). Business research methods, New York: McGraw-Hill and Irwin Publishing.
Drabek, Z. & Olechowski, A. (2010). Price and quality competitiveness of socialist countries’ export. Policy, Planning and Research Working Paper, 317, 1-27.
Ehrenberg, A.S.C. (2008). Repeat Buying Facts, Theory and Applications. New York: Oxford University Press.
Esse, A. (2016). Two years’ warning: the customer centricity crisis. The Story Teller, Retried from:alison.esse@thestorytellers.com (Accessed 10/08/2017).
Fortune Group (2016).How to create value for customers and grow sales. CFA Institute Publications.
FutureLab (2015).10 Ways to profit from customer centricity. Retrieved from: http//www.futurelab.net/.com (Accessed 10/08/2017).
Garga, E. & Bambale, A. (2016). The impact of service quality on customer patronage: Mediating effects of switching cost and customer satisfaction.International Journal of Global Business, 9(1), 39-58.
Gronroos, C. (2008). Service logic revisited: who Creates Value? And who co-creates? European Business Review20 (4), 298-314.
Gronroos, C. (2011). Value co-creation in service logic. A Critical Analysis. Marketing Theory, 22 (4), 198-214.
Gronroos, C. & Pekka H. (2010). Adopting a service logic in manufacturing. conceptual foundation and metrics for mutual value creation. Journal of Service Management, 21(5), 564-590.
Hair, J. F., Bush, R. P. & Ortinau, D. J. (2000). Marketing research, New York: McGraw-Hill Publishing.
Ibeh, K. (2003). Toward a contingency framework of export entrepreneurship: conceptualizations and empirical evidence. Journal of Small Business Economics, 20(1): 49 -68.
Ibeh, K. (2004). “Further export participation in less performing developing countries”. International Journal of Social Economics, 31, (1/2), 94 – 110.
Jobber, D. (2007). Principles and practice of marketing (5th Ed.). Maidenhead, Berkshire, United Kingdom: McGraw-Hill Education.
Johnson, W. C. & Weinstein, A. (2004). Superior customer value in the new economy, concepts and cases (2nd Ed.) Boca Ranton, Florida, USA: CRC Press LLC.
Klimontowicz, M. (2014). Customer-centricity evolution as a foundation of bank’s competitive strategy. Journal of Economics and Management, 16, 49-59.
Kotler, P. & Armstrong, G. (2004): Principles of marketing, Upper Saddle River, New Jersey: Pearson Education.
Kotler, P. (2003). Marketing management. 11th Edition, Upper saddle River New Jersey: Prentice Hall.
Lee, H. L. & Whang (2001). E-Business and Supply chain integration, Stanford Global Supply Chain Management Forum, November – 2001: 1 – 20.
Lee, J., Sridhar, S., Henderson, C. M., & Palmatier, R. W. (2014). Effect of customer-centric structure on long-term financial performance. Marketing Science, Institute for Operations Research and the Management Sciences (INFORMS).
Lumpkin G. T. & Dess, G. (2001). “Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle”. Journal of Business Venturing 16: 429 – 451..
Marsh, C., Sparrow, P. & Hird, M. (2010). Is Customer centricity a movement or myth? opening the debate for HR. Centre for Performance-Led HR, White Paper 10/03 December 2010.
McLellan, J. (2013). Sales Performance Definition. http//www.eHow.com. (Assessed 29/4/2016).
McNaughton, R. B. Osborne, P. & Imrie, B. C. (2002). Market-Oriented Value Creation in Service Firms. European Journal of Marketing, 36: 990 – 1002.
Nunally,J.(1978). Psychometric theory. New York: McGraw-Hill.
Okpara, J.O & Kumbiadis, N (2009). SMEs export orientation and performance: evidence from a developing Economy International Review of Business Research Papers, 5, 109-119.
Şalin A. & Kitapci, H. (2013).Why customers stay: The role of switching costs on the satisfaction-trust-commitment chain. International Review of Management and Business Research, 2 (4), 2-7.
Sekaran, U. (2003). Research methods for business. New York: John Wiley and Sons Inc.
Sekaran, U. (2003). Research Methods for Business. New York: John Wiley and Sons Inc.
Servais, P. &, Jensen, J. M. (2012). Buyer-supplier relationships in a period of recession: the role of satisfaction in repeat patronage and the propensity to initiate price negotiation. Innovative Marketing, 8 (4), 19-30.
Shah, D, Rust, R.T, Parasuraman, A., Staelin. R, & Day, G. S. (2006). The Path to Customer Centricity. Journal of Service Research. 9(2), 113–124.
Shanker, A. (2012). A customer value creation framework for businesses that generate revenue with open source software. Technology Innovation Management Review. 18 – 22.
Sharp, B. & Sharp, A. (2008). Loyalty programs and their impact on repeat-purchase loyalty patterns: a replication and extension. Marketing Science Centre, University of South Australia.
Sullivan, T. J. (2001). Methods of Social Research.Orlando, USA: Harvard Brace and Company.
Sullivan, U. Y., Peterson, R. M. & Krishnan, V. (2012). Value creation and firm sales performance: the mediating roles of strategic account management and relationship perception. Industrial Marketing Management, 41, 166–173.
Taifi, N. (2013). Value creation for the after-sales services: organizational and strategic perspectives. Chinese Business Review, 12 (9), 625-638.
Tesfom, G., & Lutz, C. (2006). A Classification of export marketing problems of small and medium sized manufacturing firms in developing countries. International Journal of Emerging Markets, 1(3): 262-281.
Tournois, L. (2004). Creating Customer Value: Bridging Theory and Practice. Marketing Management Journal, 14(2), 12 – 23.
Toyese, A. Y. (2014). Customer Relationship Management and Customer Loyalty in Nigerian Telecommunication Industry. The Business & Management Review, 4 (3), 43-50.
Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350.
doi:10.1002/smj.640
Teece, D.J., Pisano, G. & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal. 18, 509–533
Tseng, M. & Piller, F. (2003). The Customer Centric Enterprise: Advances in Mass Customization and Personalization. New York: Springer Publications.
Ulaga, W. (2001). Customer value in business markets: an agenda for inquiry. Industrial Marketing Management, 30, 1-7.
Ulaga, W. (2003). Capturing value creation in business relationships: a customer perspective. Industrial Marketing Management, 32, 677– 693.
Vakilifard, H. & Khozein, A. (2012). Prevention, appraisal, internal failure, external failure cost and quality optimization.International Journal of Mathematics and Computer Sciences, 10, 539-551.
Vargo, S. L. & Lusch, R. F. (2010). From repeat patronage to value co-creation in service ecosystems: A transcending conceptualization of relationship.Journal of Business and Marketing Management, 4, 169–179.
Vargo, S. L. & Lusch, R. F (2004). Evolving to a new dominant local for marketing. Journal of Marketing, 68, 1 – 17.
Vargo, S. L. & Robert F.L. (2008), Service dominant logic: continuing the evolution. Journal of the Academy of Marketing Science 36(1), 1-10.
Woodall, T. (2003). Conceptualization “Value for the Customer”: An Attributional, Structural and Dispositional Analysis. Academy of Marketing Science Review, (12), 10-25.
Woodruff, R. (1997). Customer value: the next source for competitive advantage. Journal of the Academy of Marketing Science, 25(2), 139 – 153.
Wright, J. (2017). The Art of Customer Centricity and Its Impact on Business Growth. Eagle’s Flight. Retrieved from:http//www.eaglesflight.hs-sites./com. ((Accessed 10/08/2017).
Zahva, S. A. & Garvis, D. M. (2000). International corporate entrepreneurship and firm performance. the moderating effect of international environmental hostility. Journal of Business Venturing 16(4) 469 – 485.
Zollo, M. & Winter, S. (2002). Deliberate learning and the evolution of dynamic capabilities. Organization Science, 13, 339-351.
Published
2022-04-05
How to Cite
Amadi, D. L., & Nnabuko, J. (2022). VALUE CREATION STRATEGY AND SALES PERFORMANCE OF SMALL AND MEDIUM SIZE EXPORTING FIRMS IN SOUTH-SOUTH NIGERIA. GPH-International Journal of Business Management, 4(10), 49-61. https://doi.org/10.5281/zenodo.6734612
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Articles
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