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Does cooperating with customers support the financial performance of business-to-business professional service firms?

Siahtiri, V ORCID: 0000-0002-3788-6859 2017 , 'Does cooperating with customers support the financial performance of business-to-business professional service firms?' , Journal of Service Theory and Practice, vol. 27, no. 3 , pp. 547-568 , doi: 10.1108/JSTP-03-2016-0053.

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Abstract

Purpose - The purpose of this paper is to analyze the relationship between Business-to-business professional service firms (B2B PSFs) customer cooperation capability (CCC) and its financial perfonnance. This study explores how deep and broad expeit and customer knowledge assist PSFs to enhance CCC and increase financial performance. Design/methodology/approach - A multiple informant survey was designed and administered to B2B PSFs' managers in Taiwan. Findings - The results indicate that customer and expert knowledge improve PSFs' CCC and that CCC has a positive U-shaped relationship with financial performance. Importantly, the ability to control for the efficiency of customer cooperation moderates the U-shaped relationship between CCC and financial performance by diminishing the negative effect of low levels of CCC. Originality/value - The contribution of this study rests on the theory developed and empirical support disclosing the complex relationship between PSFs' CCC and financial performance. The study further contributes to the literatW"e by presenting different effect of deep and broad expert and customer knowledge on development of CCC. The study extends the literatlll'e by introducing control for efficiency of customer cooperation as a mechanism that has the capacity to compensate for lower levels of CCC.

Item Type: Article
Authors/Creators:Siahtiri, V
Keywords: financial perfonnance, professional service firms, control for efficiency, customer cooperation, knowledge breadth, knowledge depth
Journal or Publication Title: Journal of Service Theory and Practice
Publisher: Emerald Publishing Limited
ISSN: 2055-6225
DOI / ID Number: 10.1108/JSTP-03-2016-0053
Copyright Information:

Copyright 2017 Emerald Publishing Limited

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