Customer Clusters Essay

11216 Words Aug 8th, 2013 45 Pages
Customer Clusters as Sources of Innovation-Based Competitive Advantage
Vishal Bindroo, Babu John Mariadoss, and Rajani Ganesh Pillai
ABSTRACT
The authors examine the effect of customer clusters on a firm’s innovation. They argue that knowledge leveraged from customer clusters can help the firm develop innovations. The authors specifically concentrate on the effect of a firm’s geographical proximity and diversity of customer clusters on innovation outcomes. In addition to showing the importance of customer cluster proximity on firm innovation, they explore the effect of customer cluster heterogeneity on innovation in an international marketing environment. They test the theoretical model using multicountry data (N = 288) drawn from the
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2010; Riesenberger 1998). Therefore, effective management of the innovation process is a focal concern for managers and academic researchers (Bogner and Bansal 2007; Marsh and Stock 2003), particularly in the international marketing context (Atuahene-Gima and Murray 2007; Hughes et al. 2010; Yalcinkaya, Calantone, and Griffith 2007). In response to academic researchers’ concerns about increased attention required on globalization issues in innovation (e.g., De Meyer and Mizushima 1989; Golder 2000; Griffin 1997; Moenaert et al. 2000), recent research has begun exploring the international dimension in the context of innovation management (Atuahene-Gima and Wei 2011; Calantone, Schmidt, and Song 1996; Song and Parry 1997; Song and Xie 2000; Xie, Song, and Stringfellow 1998). On the one
Journal of International Marketing ©2012, American Marketing Association Vol. 20, No. 3, 2012, pp. 17–33 ISSN 1069-0031X (print) 1547-7215 (electronic)

Vishal Bindroo is Assistant Professor of Marketing, School of Business and Economics, Indiana University South Bend (e-mail: vbindroo@iusb.edu). Babu John Mariadoss is Assistant Professor of Marketing & IBUS Fellow, Department of Marketing, College of Business, Washington State University (e-mail: bjohnmar@wsu.edu). Rajani Ganesh Pillai is

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