RT info:eu-repo/semantics/article
T1 Towards profitable customized solutions in small firms: a matter of relationships, modularity and expertise
A1 Rodríguez Escudero, Ana Isabel
A1 Camarero Izquierdo, María Carmen
A1 Redondo Carretero, María
K1 Consumidores - Actitudes
K1 Pequeñas y medianas empresas
K1 Customization
K1 Small businesses
K1 Relationship investment
K1 5311 Organización y Dirección de Empresas
K1 5308.02 Comportamiento del Consumidor
AB Purpose.The decision concerning the degree of product and service customization is crucial, yet has scarcely been studied for small businesses in business-to-business (B2B) contexts. Although such a decision allows relationships with potential customers to be strengthened, it might involve high opportunity costs given the investment required. This paper aims to analyse the profitability of customization undertaken by small businesses in terms of cost–benefit and examine the drivers of profitable customized projects vis-à-vis the ability to strengthen relationships with clients (relationship investment and customer involvement) and the firm’s resources related to processes and technology (expertise and modularity).Design/methodology/approach.To test the proposed hypotheses, data were collected from 140 small Spanish firms involved in two sectors characterized by the offer of customized solutions: information and professional, scientific and technical services.Findings.Analysis reveals that customer involvement in the customized solution, even when it requires investing in equipment, time or human resources has a positive effect on customization and ultimately on profitability, as the cost of this customer interaction is lower than the revenue it provides. Likewise, supplier investment in the relationship allows for a solution that is adapted to the client, although it requires a cost associated with investing in specific assets. Such costs cancel out the positive indirect effect through the customized solution. Finally, expertise enables appropriate use of the flexibility derived from modularity to satisfy customer requirements, with both being key company resources for driving profitability through customized solutions.Originality/value. This study makes a contribution to the domain of customization. The authors extend current knowledge on B2B customization by proving that small firms can use their available capabilities and knowledge to achieve a successful customization strategy.
PB Emerald
SN 0885-8624
YR 2023
FD 2023
LK https://uvadoc.uva.es/handle/10324/62152
UL https://uvadoc.uva.es/handle/10324/62152
LA eng
NO Journal of Busines & Industrial Marketing, 2023, vol. 38, nº 1, p.137-154.
NO Producción Científica
DS UVaDOC
RD 09-may-2024