The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia 63
Chatterjee et al., 2000 tend to show the effect of the interaction between the NFC with a message framing.
The third hypothesis testing results indicated that attitude predict behavioral intention. Meanwhile, the
attitude does not predict behavior. Compilation of the results of the linear regression testing concluded that,
positive attitudes
predict intentions,
based on
hierarchical linear regression test results and positive intentions predict behavior based on the results of
logistic regression testing. This finding is consistent with the majority of attitude theory which states that
individuals behavior can be predicted from attitudes
The findings of this study indicate that intention is able to mediate attitude-behavior relationship. These findings
indicate that the formation of attitudes and commitment to conduct electrical energy saving is very important to
create electrical energy saving behavior among young adults. But the findings of this research can not be the
benchmark that the formation of attitudes and intentions will automatically change young adults in energy
consumption behavior as the behavior measurement proxy used is still simple and because of the tendency of
resistance to energy conservation message from previous research, such as stated by Hutton 1982
above. Additionally, Martiskainen 2007 also stated that resistance to persuasive attempts to conserve energy
is because of behavior is a complex combination of emotions, morals, customs, social factors and normative
values, thus changing behavior is a major challenge. Martiskainen own studies found no significant results in
their studies because of the limitations their experimental design no random assignment of
subjects.
6. RESEARCH CONCLUSIONS,
CONTRIBUTIONS AND FUTURE IMPLICATIONS
Results of this study show that no statistical supports for the differential persuasion effects of framed messages.
There were no difference in attitudes between participants who received negative and positive framed
messages about performing electricity energy saving behavior. These findings indicate that message framing
message does not give differential persuasion effect when the subject has a low involvement with the
message content.
Results of interaction effects testing also do not provide support for NFC moderation effect. NFC does not
strengthen the effects of message framing on paticipant’s attitude toward electricity saving behavior.
However, this study indicates that the difference in attitudes towards electricity energy saving behavior
influenced by differences in NFC of the subject. The results of this study showed that subjects with high NFC
scores have a better attitude towards electricity energy saving than subjects with low NFC scores. These
findings indicate that attitudes towards framed message in low-risk behaviors context differ according to the
level of NFC.
Testing of mediation effect of intention on attitude behavior relationship show significant statistical support.
These findings indicate that the willingness to perform low-risk behavior will be preceded by the formation of
intention to behave. While the intention to behave comes from the formation of attitudes towards such
behavior.
This has a contribution related with theory integration testing. Results indicate that integration of prospect
theory and
theory of
individual differences
characteristics are not statistically supported in low-risk behavior context and in situations where the subject has
had initial beliefs about the issue presented. Eagly and Chaiken 1984 revealed that the two theories, can occur
simultaneously and interact each other. However, the results showed that integration of the two theories are
not always able to apply. Hypothesis testing show that integration of these theories do not provide statistical
support.
Some implications for future research can be proposed. This research using between subject design. Future
research can combine between and within subject design so that the effect of attitude change within
subject can be observed by comparing the attitudes of participants before and after treatment. Behavioral
measurement used in this is still simple. Future research can use more complex behavioral measurement.
The study revealed that electricity saving behavior is regarded as a low-risk behavior among young adults
who are not the party whose responsible for making payments payer. Conducting the same research
involving participants which have higher involvement with the energy conservatin effort may give different
resuts. So that, it is recomended to replicate this research which involving the parties whose responsible
to pay the electricity bill such as the owner of small enterprises or money maker in house holds.
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The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia 69
Room B
Moderator:
Dr. St Dyah Handayani, MM, M. Imam Bintoro, S.E., M.Sc.
Paper ID MP.013 : Strengthening Salesperson Performance Quality of Mesmerizig
Business Offering to Winning Customer Heart
Berta Bekti Retnawati Paper ID MP 014 : Flexibility Networking Capability, Entreprenenurial Oerientation on
Business Performance
Ivonne Angelic Umboh Gita Sugiyarti Paper ID MP 021: An Analysis of Antecedents and Consequences of Brand Commitment
the Empirical Study on Branded Laptop In Indonesian
Ida Hidayanti Ivonne Angelic Umboh Paper ID MSDM 005: The Impact of Communication Effectiveness And Service Quality on
Relationship Commitment
Mulyo Budi Setiawan Paper ID L.109 : Gaining Competitive Advantage through Business Process Reengineering
BPR
Ummi Salwa Ahmad Bustamam, Syadiyah Abdul Shukor, Muhammad Ridhwan Ab. Aziz Zainal Abidin Mohamed
Paper ID MSDM 023: The Influence of Management Information System E-Learning to
Net Benefit in Yogyakarta Private University Using Delone a nd McLean’s 00 Model
Hajra Rasmita Ngemba Heru Kurnianto Tjahjono
Paper ID MP 24: The Effect of Product Attributes, Price, Need for Variations and
Consumer Dissatisfaction on Brand Switching Behavior of Face Cream Product Brands in Yogyakarta, Indonesia
Siti Maesaroh Retno WidowatiPA
The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia 70
Strengthening Salesperson Performance Through Quality Of Mesmerizing Business Offering
To Win Costumer s’ Heart
Berta Bekti Retnawati
1
1
Doctoral Program, Diponegoro University
bertabektigmail.com
ABSTRACT
Customer is unique. A crucial part of a salesperson’s role is to understand consumers needs and then provide the
appropriate product or service. The effective marketing strategies require company include salesperson to stay close with their customers. However it is not easy to design how company should stay close to its customers. The common
wisdom is through listening voice of the customer, to knowing what their customers want to deliver superior quality. A salesperson as an internal resources need to understand which sales strategies work best on different consumers to
improve his customer encountering competence portfolio. The prior studies about linking customer encountering competence portfolio and salesperson performance still leave a different result. While previous researchers have
proposed that the salesperson performance is improved when salesperson has customer encountering competence portfolio, nevertheless, the existing literature does not help us to understand what salespeople do in different
interactions with different customers in order to create value. At the same time, another study stated that a deep distancing of a customers needs may even reduce sales performance, if the sales task is highly structured. Additionally,
another empirical study stated that salesperson behavior as somewhat isolated from the interaction with the customer, not acknowledging the complex and interactive nature of sales. The key problem of many suppliers of highly
individualized customer solutions is that they still lack proper understanding of their
customers’ businesses.The author offers new insights fulfill this research gap by proposed quality of mesmerizing business offering. The author also
make a holistic framework that identifies key levers that must be integrated with this novelty to improve salesperson performance. The quality of mesmerizing business offered to reflect effort from the salesperson attempts to strengthen
relationships with customers through customer bond relationship, stable relationship, and integrated customer solution. The relationship with three business offering dimensions hold potential to increase sales person performance. The
quality of mesmerizing business offering is offered to shape new research opportunities in the domain of the marketing and sales interface and in order to link both of customer encountering competence portfolio and sales force performance.
This paper is organized to explain briefly epistemology of quality of mesmerizing business offering and propose the
following hypotheses for the framework model.
1
RESEARCH BACKGROUND
Customers are unique. It is an appropriate word to say without exaggerated them. The various characteristics
and uniqueness of each customer gives certain challenges for a salesperson to win customers
’ heart. One of the important roles of the salesperson is making
an effort to fully understand the customers’ needs for giving the goods they are really wanted. The properness
and accuracy of the responses can be taken from the proper attitude of the salesperson towards the customers.
To win customers’ choice is a complex matter Mallalieu and Nakamoto, 2008; Homburg et al., 2011
Thus company or salesperson have been ‘close’ with the
customers, it needs to identify customers’ wants and needs as a sign and guidelines to develop strategy
approach towards them Lynch and Chernatony, 2007. The competition of salesperson in understanding and
facing the customers cannot be ignored Arndt and Karande, 2012; Flint et al., 2011. The value from the
customers for the companies is as the starting point to know
the customers’ uniqueness which is related to the companies. It needs to consider the risk factors which
are related to highest contribution value as a prediction of the customers’ role for the companies in dynamic
change. As a front liner who directly interacts with the
customers, the role of salesperson becomes a critical factor which gives influence in the relationship between
the companies with the customers. Therefore, the role of salesperson in direct facing sales with the customers,
namely, understanding of sales marketing interface
Key words: Customer Encountering Competence Portfolio, Quality of Mesmerizing Business
Offering, Sales Force Performance, Relational Capital, Excellent Service Customer Heterogeneity
The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia 71
SMI becomes important. SMI as a framework to create customer value and achieve competitive
advantage through interfunctional synergy that enables them to effectively marshal resources and develop
critical capabilities.Three major components of SMI are customer
orientation, competitor
focus, and
cross-functional coordination Hughes et al., 2012. The effectiveness of SMI will depend on the objective
and rational approach in the involvement of the salesperson to create a strategy. Marketing integration
and sales will be obtained effectively if some particular factors are moving together, such as the achievement of
value integration, cross function, and joint rewards Hughes et al., 2012. It is not easy for companies to
always be ‘close’ with their customers, the suitable things to do especially for salesperson is the ability to
‘listen’ and know customers’ wants as the important ability for every sales person. A challenge for
salesperson to understand customers’ wants accurately and give the best service that other competitors, is an
asset to a company to have better position in customers’ heart Lynch and Chernatony, 2007; Heijden et al.,
2013 In the previous research on the role of salesperson
competencies towards salesperson’ performance in facing customers, there was significant positive result
on both of Lin and Hsieh 2011. However, there was a contrast from the result, it did not analyze on the same
variable Arndt et al., 2012; Verbeke et al., 2004. The insignificant result is the time needed to fully
understand customers’ wants will decrease the sales performance if the situation of sales is structured. The
different view also stated by Plouffe et al. 2008 that the attitude of salesperson is separated from the
activities and the complex understanding in interactive approach with customers. This view is on the contrary
with the view from Tuli et al. 2007 which stated that the main problem in understanding of their dynamic of
business environment is the inability in giving a solution needed individually for customers.
This problem give a chance to conduct a further research related to some differences in research results
towards the competencies in facing customers with salesperson performance. The occurring research gap
will be re-examined with giving a novelty concept that will be bridge those two concepts. The novelty is
quality of mesmerizing business offering. This research intends to give further theoretical study about
salesperson competencies in facing the customers which related to the raising effort of salesperson performance
with adding novelty of mesmerizing business offering as the research objective of both concept gaps.
Review of Related Literature Epistemology of the
Quality of Mesmerizing Business Offering
The uniqueness of service characteristics are intangibility, inseparability, variability, and perishability.
In this study, the focus is on the second characteristic, inseparability of service, it describes the service
provider and the customers have direct close relationship and
interact directly one another Baker et al., 2009. The epistemology to form novelty in this
study combines two supporting aspects of salesperson performance, namely, aspect of the important role of
salesperson in service offering to the customers and aspect of the ability of salesperson in developing strong
relationship with the customers. In the aspect of the important role of salesperson in
service offering to the customers, the previous research has described the complexity of service business
offering forms. Service offering can be seen as the core of strategies in service industry Kohtamäki et al.,
2013. This view is also used in this proposed research which states that sales and marketing in service industry
is an integral part of excellent service supply will be able to keep the customers to be loyal to the company.
This requires covering all service understanding to deliver an excellent service.
Srivastava and Rai 2014 state that service is as an interaction process between a customer and a front liner
who give services and or resources or goods and systems which were belonged to service provider. This
process will be measured by the customers who will
measure all services in customers’ perception from inferior service evaluation its superior.
From the view of relationship aspect, based on the previous research stated by Eng 2008, where are some
resources which hold importantcritical role, they are
passing the obstacles in the company and done ‘
joint development of resources
’ through business relation to enable in increasing competitive advantage. Moreover,
it is said that the analysis of networking on various differences level in various business relation will help
the company to analyze competitive position. The study of customer portfolio planning makes the company easy
to form services which suitable with different customer
groups to increase company’s business performance. The business performance is influenced by the ability to
grab customer engagement. Customer engagement is intended as an effort to improve the organizational
performance including in its growth of sales, the preeminent superior competitive, and profit by
involving customers as the party which no longer act passively, but being proactive in participating in the
interactive process, and the creation of co-creation. Hollebeek 2012 researchs on customer engagement on
what is thought , perceived , and the respondents’ behavior on some brands either for the utilitarian
product nor hedonic products .The result of the research shows that consumers have the higher involvement of
hedonic products than utilitarian products which require
The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia 72
the marketers to look at the proactive act of customers towards offered products and services.
The increasing capacity to grab customers will not be
separated from the company’s effort to provide a high value towards customers’ perception of the offering
products. In the previous research conducted by Vera and Trujillo, 2013 on banking industry, states that the
availability of quality services dimension is not an adequate requirements to achieve theperceived value in
a preeminent manner by customers. This should be
supported with customers’ confidence that the services are really different than other brands towards
preeminent perception value. This epistemology explanation will bring the researcher
in verifying the novelty concept which is intended to address this gap between the competences of
salesperson in the facing the customers with efforts to
improve salesperson’ performance, novelty which is proposed is the quality of mesmerizing business offering.
The definition of the novelty is effort in letting the customer is always tied to the company. This novelty
has been characterizedreflected by some indicators, thya
are customers’ bond relationship, stable
relationship, and integrated customer solution. The visualization of the novelty epistemology in this
research can be seen in the following images:
Figure 1. Novelties Mapping: quality of mesmerizing business offering
Resource: the proposed development for the novelty 2015
As shown in figure 1 above, the quality of business supply which is grabbed can be described as an effort to
strengthen the relationship with the customers through the reinforcement of mesmerizing business offering.
This novelty has been characterized by customers’ bond relationship, stable relationship, and integrated customer
solution. The relationship of these three dimensions of mesmerizing business offering is the potential things to
improve the salesperson performance. The quality of this mesmerizing business offering becomes the bridge
between the competencies of salesperson in dealing
with the customers to improve salesperson’s performance.
The Development of Propositions among Variables
Customer Encountering Competence Portfolio
and
Quality of Mesmerizing Business Offering
In various research in sales management, it has been widely recognized that having the ability customer
oriented service for salesperson will greatly affect salesperson performance Jonesa et al., 2003; Malshe,
2011; Singh and Koshy, 2012, 2011. Homburg et al. 2011a states that customers oriented in direct
interaction requires salesperson’s ability to identify customers’ needs and customers’ attention in various
different levels on face-to-face sales sales encounter. There are five main different stages in interaction with
customers which require in-depth attention; they are the
stages of problems identification and customers’ needs, presentation, overcoming the objections, negotiating,
and closing. It is required adequate competence portfolios from salesperson in facing various stages of
encountered situations. In line with statement, the salesperson should be able to provide the optimum
service offering in each interaction stage which will enable to keep the customers to be always loyal to the
company. This requires a whole understanding of the services to reach a prime service transfers Heijden et al.,
2013. From the explanation above, the proposition can be
formulated as follows:
Proposition 1: The higher customer encountering competence
portfolios the
higher quality
of mesmerizing business offering
Relational Capital
and
Quality of Mesmerizing Business Offering
Relational capital is a form of social capital which inherent in a relationship between the company and the
customers, and it includes dimension of trust, open interaction, and the ability to share beneficial things
between the company and the customers Kohtamäki et al., 2013a. Either salesperson nor employees who have
a number of the autonomy level in working is expected to be able to response effectively and quickly about the
changing of customers’ needs which eventually could be go through the quality of relationships in keeping the
customers Heijden et al. , 2013 . Other researcher Dorrego et al. , 2013 states that relational capital are
based on the attention that the company and the employees are not an isolated system. On the contrary,
company’s resources are required to be active in following the changes that occurred related to the
changes outside external entities Close
relationship with the customers’ needs strong competencies as the asset of relational capital .The
The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia 73
knowledge of marketing channel and relationships with the customers becomes the main strength to the results
of relational capital Dorrego et al., 2013 . From the explanation above, the propotition can be
formulated as follows: Proposition 2:
The higher relational capital, the higher quality of mesmerizing business
Excellent Service Customer Heterogeneity
and
Quality of mesmerizing business offering
The strength of salesperson in creating an extra point in the relationship with the customers becomes the power
of the sales organization which will lead the company to be the main choice of the customersTurley and Geiger,
2006. Salesperson who is able to learn from the experiences in dealing with the customers will be able
to keep the customers in long-term relationships. The dynamic of changes in salesperson environment which
is able to keep the customers to be a client will be more successful than those who just do the sales activity as
merely transactional activity Zhang et al., 2013. Further it is said that salesperson that are able and want
to update customers’ wants continuously and apply it in their sales organization will make the customers as a
loyalists in a long term. Excellent service to see the characteristics of inherent in
a variety of the diversity of users into power for sales force to give the overall value created prime customers
Mascio, 2010. Competence of salesperson who fully understand the desire of diverse customers will be
visible in effective action within the first , the provision of efficient services and fun , both of the fulfillment of
the target sales of established and the latter is the ability to give form relationships of mutual customers by
between the company through the provision of the solution for customers .
From the explanation above, the proposition can be formulated as follows:
Proposition 3: The higher
excellent service customer heterogeneity, the higher quality of mesmerizing
business offering
These following propositions explain the relation among various elaborated variables towards salesperson
performance which includes:
Quality of Mesmerizing Business Offering
and S
alesperson Performance
Lynch and Chernatony in 2007 states that the effort to win the customers’ hearts and minds with empirical
study which had been conducted, can be created by making salesperson to take a role in communicating the
product offered by adjusting sales strategy approach. The communication which is conducted by salesperson
in stressing on the power of a brand that positively associated both in rational thought and the aspect of
emotion thought of the customers will enable the salesperson to grab and keep the customers which
brings into the improvement of their performance. Salesperson as a front liner who interact directly with
the customers in the previous research proof that ability in giving the service models is highly influenced by the
orientation of customer, competencies, type of actions, and their own interpersonal values Mascio, 2010. If
the supporting abilities to provide these services are maximized, it will give the influence on the increasing
of salesperson competence in giving services which are really needed for the customers, the fulfillment of
determined work performance target such as sales quota, and the beneficial relationship establishment for both
parties with giving solutions to customers’ problems Quality of business mesmerizing offering is described as
the effort made by salesperson to strengthen the relationships with the customers through services
offered and reviewed by customer bond relationship, stable relationship , and integrated customer solution to
get the improvement of salesperson performance. From the explanation above, the propotition can be
formulated as follows: Proposition 4:
The higher quality of mesmerizing business offering, the higher salesperson performance
Relational Capital
and S
alesperson Performance
In terms of increasing relational capital possessed by the salesperson, it should be realized by sales organization
that the company and employees is not an isolated system. On the contrary, the company’s resources are
required to be active in following the changes that occurred related to changes outside external entities
Dorrego et al., 2013.
Competences of salesperson that will support the establishment of ability in relational capital also based
on the needs that are required in the dynamics of duty in environmental changes to get the given achievement
towards the performance. Social competences which are owned by the salesperson will enable to interact
effectively with the customers in social communication skills to achieve the performance results which have
been decided Yang and Wu, 2014. From the explanation above, the propotition can be
formulated as follows: Proposition 5:
The higher relational capital, the
higher salesperson performance
The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia 74
Excellent Service
Customer Heterogeneity
and
Salesperson Performance
The duty of salesperson as the company representative which interact directly with the customers , in the
empirical study conducted by Mascio 2010 showed
that the inherent characteristics of customers’ heterogeneity
become a power for salesperson to give an offering which measure overall superfine customers’
value. The competencies of salesperson which are fully understand with various customers’ wants will be seen
in effective action in first, the efficient and pleasant services given by the salesperson, second, the
achievement of fixed sales target and the last is the ability to give the model of a beneficial relationship
between customers with the company through the solutions given by the salesperson. Another important
thing to support their ability is to analyze various customers characteristics with improving salesperson
performance in social construction individually by doing the interpretation and explain the instructions
which are constructed in the environment and it is called sense making Shannahan et al., 2013. This will
support salesperson to strengthen their performance achievement.
From the explanation above, the propotition can be formulated as follows:
Proposition 6:
The higher excellent
s
ervice customer heterogeneity, the higher salesperson performance
The Description of Whole Empirical Models. Based on the developed propositions, with the support
from reviewing the theories and the research results above, it can be formulated an empirical model of this
article as seen in figure 2 as follows:
Figure 2. The Framework Model
Resource: The proposed development model for the future research 2015
In the full model of this article above, there are three exogenous variables, they are customer encountering
competence portfolio, relational capital, and excellent service towards customer heterogeneity. These three
exogenous variables will be examined towards their influence to quality mesmerizing business offering.
These three exogenous variables will be expected to have positive influence towards the proposed novelty
concept which will be conducted in a research study. Endogenous variable in this empirical model of this
research is quality mesmerizing business offering and salesperson performance. This novelty concept is
potentially as the bridge of this research gap from previous researches about customer encountering
competence portfolio and salesperson performance.
Contribution and Future Research Direction Focusing on key questions in salesperson performance
research, there are some contributions emerge to the proposed research. First, this paper can strengthen a
theory of sales management with focusing on the nature of novelty variable as intermediation under the
gap
research between
customer encountering
competence portfolio and salesperson performance. It advances a parsimonious and testable research agenda.
The notion of intermediation as an essential component of the research gap, there is a holistic framework that
identifies key levers that must be integrated with this novelty to improve salesperson performance. A
second contribution is our integration of two influential concepts in sales management they are key service
relationship and customer portfolio planning, so that novelty value can be fulfilled this research gap.
This paper points out at least two directions for future research. First, there is substantial room for conceptual
clarification. Second, some of our propositions have not been tested in empirical study, thus leaving room for
more rigorous empirical tests.
CONCLUSION
The prior studies about linking customer encountering competence portfolio and salesperson performance
still leave a different result. While previous researchers have proposed that the salesperson performance is
improved when salesperson has customer encountering competence
portfolio, nevertheless, the
existing literature does not help us to understand what
salespeople do in different interactions with different customers in order to create value. At the same time,
another study stated that a deep understanding of a customers needs may even reduce sales performance, if
the sales task is highly structured. Additionally, another empirical study stated that salesperson behavior as
somewhat isolated from the interaction with the customer, not acknowledging the complex and
interactive nature of sales. The key problem of many suppliers of highly individualized customer solutions is
that they still lack proper understanding of their
customers’ businesses.The author offers new insights into to fulfill this research gap by proposed quality of
mesmerizing business offering.
The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia 75
The author also make a holistic framework that identifies key levers that must be integrated with
this novelty to improve salesperson performance. The quality of mesmerizing business offering reflecting
effort from the salesperson attempts to strengthen relationships with customers through customer bond
relationship, stable relationship, and integrated customer solution. The relationship with three business offering
dimensions hold potential to increase sales person performance. Quality of mesmerizing business offering
is offered to shape new research opportunities in the domain of the marketing and sales interface and in order
to link both of customer encountering competence portfolio and sales force performance.
This article explains briefly e
pistemology of quality of mesmerizing business offering and present the following propositions
for the framework model.
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The 2015 International Conference of Management Sciences ICoMS 2015, April 23,UMY,Indonesia
77
Flexibility Networking Capability, Entrepreneurial Orientation On Business Performance
Ivonne Angelic Umboh
1
, Gita Sugiyarti
2
1
Doctoral Students of Diponegoro University - marketing, Indonesia
2
Doctoral Students of Diponegoro University - marketing, Indonesia gitaaris50yahoo.com
ABSTRACT
This study a theoretical concept of the results of several studies on entrepreneurial orientation to business performance. Although entrepreneurial orientation has been widely studied, but still give inconsistent result in many studies. So as to
give rise to a question that should be considered by companies in improving business performance. This study is also the scientific study of the results. The results of research on entrepreneurial orientation, market orientation and propose
a proposition about the concept of flexibility networking capabilities are contructed of entrepreneur orientation and business networking.The proposition Flexibility networking capabilities as
the company’s performance can be achieved if the joint marketing produce long-
term relationship with the company’s competitors, suppliers, customers who are flexibility based on the mutual commitment to building relationships, efforts todevelop a partnership in various
areas of potential, optimization of profits by constantly innovate sustained and focused, adhere to maintain a predetermined agreement.
Keywords : entrepreneurial orientation 1, market orientation 2, flexibility networking capabilities 3, business
performance 4
1
ICoMS
1. INTRODUCTION