RESEARCH AND DEVELOPMENT INTEGRATION AND BUSINESS PERFORMANCE IN THE TELECOMMUNICATION INDUSTRY IN NIGERIA - Didia, J.U.D. and Nadube P.M.
International Journal of Innovations in
Sustainable Development, Volume 7, Number 2, 2016
ISSN: 2026-801X
RESEARCH AND DEVELOPMENT INTEGRATION AND BUSINESS PERFORMANCE IN THE TELECOMMUNICATION INDUSTRY
IN NIGERIA
Didia, J.U.D. and Nadube
P.M.
Department of Marketing,
Faculty of Management Sciences,
Rivers State University
of Science and Technology, Port Harcourt, Rivers State, Nigeria
ABSTRACT
The purpose of this
explanatory study was to evaluate the association between Research and
Development Integration and Business Performance in the Telecommunication
Industry in Nigeria. The investigation relied on a structured questionnaire to
elicit data from respondents, which were analyzed by the use of descriptive and
inferential statistics. Thus the mean and standard deviation of the
distribution were determined
by the descriptive analyses while the Spearman
Rank Order Correlation was used to ascertain the association between Research
and Development Integration and the measures of business performance notably
sales growth and market share. The statistical outcomes indicate an association
between R&D Integration and Business Performance in the Telecommunication
Industry in Nigeria. Based on this, the study recommends that the adoption and
application of R&D Integration strategy by the
managers of the Nigerian Telecommunication firms should be irrevocably
sustained and maximized because in the 21st century successes in corporate
engineering is centred on the innovativeness of the enterprise. The dynamics of
consumer needs and wants, expectations and preferences can only be met by an
equally proactive research and development agenda.
Keywords:
Research and Development, Marketing Strategy, Business Performance.
Introduction
Marketing
strategy has remained the dominant logic in driving and consummating business
performance. Business performance is perceived as essential because it is the
only perimeterin evaluating the success of strategy formulation and application
in surviving competitive onslaught. It drives profitability, focuses on
strategy and helps an organization realize its full potential (Luftiget al, 2012).
It
is trite therefore to say that when an organization applies a chosen strategy
successfully in carrying out its activities and operations, and achieves its
aims and objectives which concern obligation to it and its various publics,
then it is said to have performed well. Consequently a performing organization
or business is seen as one that has evidence of previous decisions and
behaviours resulting to increase in profit and employee satisfaction (Kyckling,
2010). Performance is equally the effectiveness of organization in fulfilling
its purpose and the strategy choice and application of any business is
considered effective if it leads to achievement of business performance metrics
(Kyckling, 2010).
In
pursuit of business performance, Hulbert et al (2003:1) note that “companies
cannot win in today’s competitive markets by delegating marketing problems to a
department. Success in the new market place demands integration of the firm’s
entire set of capabilities into a seamless system with the goal of exemplary
customer satisfaction. In an era of total competition, commitment to customers
must also be total.” In which case it becomes easier to pursue and achieve
performance metrics identified as, profit, gross margin, return-on-investment
(ROI) sales growth, number of new customers, market loyalty (De-Waal, 2007;
Epstein, 2004; McGrath, 2007; Amber, 2003). However, several factors mitigate
the optimal achievement of these business performance measures. Businesses have
become more vulnerable due to conflicts, uncertainties, regional insurgencies,
competition etc across the globe. The Nigerian business environment is not
devoid of these challenges that mitigate effective business performance
especially in the telecommunication sector. The problems of poor performance in
the telecommunication industry
Research and Development Integration and Business Performance in the Telecommunication Industry
in Nigeria
include;
customer service delivery deficiency, network switching, reduction in tariffs,
rising sales promotion costs, frequent and costly innovation and these problems
have the potency of affecting the National Telecom Infrastructure.
Amidst
these existential challenges, it becomes imperative for a change in strategy
(Long and Churn, 2004) from functionalized marketing to Total integrated
marketing (Paivaet al 2009; Hulbert et al 2003). According to Dominique et
al (2005), in the face of environmental challenges and upheavals, businesses
can only increase their ability to effectively adapt and build competitive edge
by going horizontal, by flattering their organizations, breaking down barriers
between functions, and stimulating more team work between functional areas.
Therefore,
this paper seeks to interrogate and ascertain the association between Research
and Development Integration and Business Performance in the Nigeria Telecommunication
Industry as a strategy option in optimizing business performance.
Theoretical Perspective of Research
and Development (R & D) Integration
The
dynamic business environment, increased consumer expectations coupled with
heightened competitive pressure are putting unprecedented anxiety on the
corporate bodies for the development of new products and services. We have
known that companies survive by providing exceptional value to consumer that is
not available or cannot be provided or copied by competitors. Therefore,
innovation is an imperative for the survival of firms in the 21st century
(Hulbert et al 2003). This means then
that as innovation continues to be an imperative and dictate business survival
in the 21st century (Piercy, 2002: 1985), the relationship and collaboration
between marketing and R&D will definitely become the pivot upon which the
future of business organizations will revolve. Tripathyet al, (2006) had observed that in a dynamic business environment,
organizations looking for growth and leadership need to match their strategies
to the changing business environment.
This
organization/environment alignment for corporate growth is vital for enhanced
performance. Freeman (1982) suggests that, innovations, both in products and
services as well as business practices have always been of significant
importance and key to revitalizing an organization and further notes
emphatically that ...not to innovate is to die. Innovation in product or
services, are intended to generate revenue through sales. To implement this,
certain factors are critically considered and possibly contained. These factors
include changing customer preferences, the market dynamics, advancements in
technology, speed of market launch and, above all, the financial returns
(Tripathyet al, 2006).
Most
of these factors revolved around the product mix or services the company offers
or is able to offer which determine its growth and profitability. In so many
companies, research and development, R&D, is the engine for growth because
that is where the new technologies and processes are created (Cookson, 2000).
However, a product development environment is highly demanding. It requires a
mixture of overlapping activities; constrained costs, compressed time to
market, improved quality, and increased effectiveness. Therefore, while R&D
plays the most important role in the product development, PD, process in the
high technology sector, collaboration with other functional areas such as
product and marketing is also equally important for meeting the organizational
objectives. Improved interdepartmental integration yields improved product
development performance (Kahn, 2001). This functional integration is very
important for organizational success. This is especially so with marketing
interface with R&D. The simple truth is that R&D spend on its own is
worth nothing, until it is linked to customer through marketing process (Marsh,
2001). The case of the Dutch company, Philips, which has 1500 creative research
staff with a budget of $300 million a year, and own 65000 patents, but has
regularly failed to successful commercialize its inventions (Marsh, 2001),
demonstrates this fact better. R&D
International Journal of Innovations in
Sustainable Development, Volume 7, Number 2, 2016
ISSN: 2026-801X
performs
optimally when its research management method is customer oriented and
translates technical advances into new business options and profitable
products. This justifies the action of Xerox and IBM in bringing lead customers
into the R&D laboratory. The new approaches championed by R&D
innovators rely on close liaison with both marketing and manufacturing. Infact,
the ability of R&D to work with suppliers and customers on technology
innovation is becoming a defining part of the buyer-seller relationship and may
create a new type of marketing capability (Tzokaset al, 1997). In industries prone to accelerating rate of
innovation, the lack of tight and effective integration of marketing and
R&D is seen as a force driving down customer loyalty and hence ultimately
long term profits (Piercy, 2002).
Indeed
the partnership between R&D and marketing has become as imperative as it is
urgent in these troubled times for business organizations. Successful
organizations depend on innovations (quality and speed). There is sound
evidence that new product development effectiveness may hinge on the quality of
the relationship between marketing and R&D (Fisher et al, 1997, Gupta et al, 1996). This relationship and
interdepartmental collaboration works optimally if it is both internally and
externally oriented. Marsh, (2001) observes that the Dutch multinational,
Philips experience cited above was because “the company’s research
establishment has been inward-looking and arrogant” and the company has simply
failed to link its researches to the market place. Market place linkage is of
course a marketing based responsibility which implies and compels an
integration of marketing and R&D activities, and external focus. In
addition to better functional coordination between marketing and R&D, the
challenge is partnering marketing processes effectively with innovation
imperatives. These include managing intrafirm interfaces (across division),
interfirm relationship (between independent firms operating in alliance), and
research networks (where R&D) is a collaborative venture between partnered
organizations) (Hulbert et al, 2003).
The scenario does not only yield optimal dividends but brings the best of the
marketing (R&D) integration to the fore. And to be certain, innovation
drives business performance.
However,
time and speed of innovation are quite essential to this process. Hulbert et al (2003:199) note that “leading
companies tend to work strategically with several combinations of technological
development options. Time is a critical issue”. In the mid-1990s, a Mckinsey
study on high technology products showed that new market offerings that were on
budget but six months late, earned 33 percent less profit over five years than
projects that were on time and within budget. By comparison, projects that were
on time but 50 percent over budget, earned 4 percent less profit. Recognizing
that speed-to-market is critical, firms such as 3m, Microsoft, and Cisco
systems actively pursue acquisitions for their technological portfolios, thus
expanding their innovative capabilities.
It
is interesting therefore to note the gains in terms of NPD success and profit,
that result from the synergy between marketing and R&D as evidenced by
various studies (Ruekert and Walker, 1987; Gupta and Wilemou, 1988; Moenaert
and Souder, 1990; Moenartet al, 1994;
Griffin and Hauser, 1996). To maximize these benefits in the commercialization
of innovation, it is critical to bridge the gap between the cultures of
marketing and R&D. Extant literature have been very positive on the impact
of marketing collaboration/integration with R&D on business performance
necessitating our interest in finding out whether this occurrence is plausible
in Nigeria.
Business Performance
The
dependent variable of this study is business performance which in our view is
predicted by Total Integrated marketing. It is a construct that helps to
determine the well being and status of firm and requires a multidimensional
scale in its measurement because it involves multidisciplines and cross
functional aspects of the organization (Eckerson, 2006). Performance
measurement is described as a process of organizational processes and
applications designed to optimize the execution of business strategy (Eckerson,
2006). The essence of this effort is to check on the outcome of strategy
implementation and appraisal to identify areas that require improvements.
Research and Development Integration and Business Performance in the Telecommunication Industry
in Nigeria
There
are scholarly opinions in the evaluation of business performance.
Venkatrameaet al (1986) suggest that business
performance is the achievement of financial and operational business goals.
Business
performance helps to determine the status of an organization as compared to its
competitors. Several indicators are used in knowing the performance status of a
firm.
Business
achievement or attributes are identified as strong financial result satisfied
customers and employees, high levels of individual initiative, productivity and
innovation, aligned performance measurement and reward systems (Epstein, 2004).
Slater and Naver (1994) used ROI, sales growth and market share in the
evaluation of market performance.
In
their popular work, Yauet al (2000)
argued that current business performance is operationalized by 12 items
notably, sales growth, customer retention, ROI, market share, getting important
and valuable information, ability to obtain bank loan, ability to obtain better
terms in loan, ability to obtain governmental approval, shorten the time
for governmental approval, contact with
important persons, ability to secure local resources (electricity, human
resources) and lastly motivating employees. These array of suggested indicators
leave the issue of performance measures open ended. Otlay (1993) posits that
companies that are market oriented display favourable organizational
performance to weather the competitive storm. The Nigerian Telecommunication
industry is ridden with competition.
Business
Performance is a construct that helps to determine the status of an
organization as compared to its competitors. Performance is defined as the act
of performing; of doing some things; using knowledge as distinguished from
merely processing it, and any recognized achievement (Oxford Dictionary, 2000).
Epstein, (2004) suggests that performance can refer to either the ‘ends’
(results) or the ‘means’ (actions) that produced the ends. Profit, which is an
ends performance is seen as historic in nature because it occurs before being
reported (De Waal, 2007). Epstein (2004) identified Business achievements or
attributes as strong financial result (e.g. profit), satisfied customers and
employees, high levels of individual initiative, productivity and innovation,
aligned performance measurement and reward system as performance indicators.
Slater and Naver, (1994) used Return on Investment (ROI), sales growth and
market share as measures of Business Performance. However, suffice it to say
that Business Performance can be finance-based (profits): market-based (market
share) or a combination of these. In this study therefore we used market share
and sales growth as business performance metrics in our study of the Nigeria
Telecommunication industry because, ultimately, market share and sales growth
seem to be prime indicators of organizational success and performance (Mack
1996; Lambert et al, 1998).
Market Share
Market
share is the percentage or proportion of the total available market or market
segment that is being served by a company. McGrath (2007:46) argued that
“market share is a subset of a market formed by the supply/demand equilibrium
for the marketer’s specific offering and the level or incidence of market
access created by the marketer’s distribution channels for that offering and
the level of incidence of market recognition (awareness) of a given marketer
and/or that marketer’s distribution channels as a source of supply for the said
offering.” Market share is indeed the share of the industry’s market potential
that is retained by a firm in that industry. It is expressed by the proportion
of the market that the firm is able to capture (Neely, 1998). It equally
expresses the company’s sales revenue realized from that market, or as a
company’s unit sales volume (in a market) divided by total volume of units sold
in that market.
Market
share is adjudged one of the best measures of business performance because it
abstracts from industry-wide micro-environmental variables (Financial
Technologies Group, 2004). Other
International Journal of Innovations in
Sustainable Development, Volume 7, Number 2, 2016
ISSN: 2026-801X
measures
include economies of scale, ROI, ROA, profit, sales growth, reputation and
increased bargaining power (Quick MBA, 2004).
While
retaining customers, Mack (1996) suggests three ways to follow in increasing
market share viz: tailor products, prices and packaging for major customer
segments; the management structure of the organization must change so that
regional executives play a larger role in responding to local markets and major
customer segments; and separate brand families when distribution models are
deployed to serve specific segments of the markets. Market share as a measure
of business performance is achieved mostly through customer satisfaction and
retention. For this to happen, Mack (1996) suggests the following; reinforced
customer loyalty by making present customer feel they are part of the business,
providing a focal point of differentiation and thus giving prospective
customers a reason to choose their brand; optimizing media presence so that the
effect of our total communication programmes are greater, and finally brand
image should motivate the company and stakeholders.
Sales Growth
Sales
growth is described as a very strong indicator of marketing and thereby
business performance. The competitiveness of business organizations are
evaluated by the rate of sales growth. Innovations or inventions impact on
profits positively via sales growth. Sales growth therefore is particularly a
meaningful indicator of the financial performance of a firm.
Sales
growth is achieved by annual addition to previous sales figures. Precisely, the
amount a company derives from sales compared to a previous, corresponding
period of time in which the latter sales exceed the former. However this
increment may or may not be equal. In a general note however, it indicates a
relative measure of change in sales over recorded periods. These periods are
either affected by price or volume or both. Other controllable or
uncontrollable factors may affect variation in sales figures e.g. seasonal
variations, income level, quality, changes in taste, changes in technology,
company’s values etc.
Telecommunication
Nowadays,
it is no longer news that access to and the effectiveness of telecommunication
infrastructure enhances business performance. On a micro level, firms are known
to have leveraged on telecommunications to build global business empires and at
the national level there is a causal link between good telecommunication and
economic growth (Wikipedia, 2013).
Telecommunication
is the science and technology of sending and receiving information such as
sound, visual images or computer data over long distances through the use of
electrical, radio, or light signals, using electronic devices to encode the
information as signals and to decode the signals as information (The American
Heritage Science Dictionary, 2009). It also means communication between parties
at a distance from one another especially by the use of telephone. The Telecom
Solution Expert, (2009) defines it as the transmission of information, as
words, sounds, or images, usually over great distances, in the form of
electromagnetic signals, as by telegraph, telephone, radio, or television. This
capability of transmitting or communicating at a distance has made
telecommunication an imperative for successful business operation. It is
indispensable in negotiating and acquiring inbound resources and moving
outbound goods and services. A business needs to communicate with all its
publics for different purposes and reasons to remain relevant.
The Study
This
explanatory study, adopted a correlational method of investigation to ascertain
the association between Research and Development and Business Performance in a
non-contrived setting. The unit of analysis was the different units/departments
of all the telecommunication firms in Nigeria. This study had a minimal
interference with the process of the study (Bryman and Bell, 2003).
Research and Development Integration and Business Performance in the Telecommunication Industry
in Nigeria
The
study sample is made up of the major Global Systems for Mobil Communications
(GSM) network providers operating on the 900/1800 MHz Spectrum, viz: MTN
Nigeria, Globacom, Etisalat, and Airtel, (Jidaw.com, 2009; Talk Tech Africa.com,
2013). According to the Front Desk officer at NCC, these major companies have
spectrum specific frequencies and enjoy separate dialing, large market base,
different services, and wider reach which in all provide them with distinctive
competitive edge. Other minor operators use Code Division Multiple Access
(CDMAs) which employs engineering technique known as multiplex (which allows a
group of firms to run signals using common channels) in serving their niches.
Bearing in mind that not all categories of workers of these major companies are
intellectually and officially qualified to understand and attend to the
research instrument, the sample elements comprised of all the managers or unit
heads of the 20 departments of the four (4) major telecommunication firms in
Nigeria.
Structured
questionnaire was used in this study as the primary source of data. The
preference for this instrument is hinged on the survey design of the study.
Copies of the questionnaire were therefore distributed and retrieved from the
20 department heads of the four companies. The heads are deemed appropriate
because of the strategic content of the instrument.
Reliability
The
study instrument was adopted from Paivaet
al (2009), Dominique et al (2010)
and Monagh (2009). For domestication, the instrument was further subjected to
test through academic scrutiny and pilot study. The instrument was further
subjected to reliability test with the statistical package for social sciences
(SPSS) Version 20.0 with a thresh hold of 0.7 Croubach Alpha set by
Nunally(1978).
Table 1: Reliability test of Research and Development Integration and
Business Performance
|
R&D Integration
|
0.891
|
|
Sales Growth
|
0.765
|
|
Market Share
|
0.744
|
Source: SPSS20.0 outputs based on 2015 field
survey data.
Findings with Descriptive Statistics
The
descriptive analysis of Research and Development Integration is expressed in
five item questions discussed below in table 2.
Table 2: Research and Development
Integration
|
S/N
|
Items
|
Mean
|
Std. Dev.
|
|
1.
|
Our research and development unit is
well developed and responsive
|
4.90
|
0.31
|
|
2.
|
Marketing and R&D interface is
the key to innovation and growth of our company
|
4.85
|
0.36
|
|
3.
|
R&D is very important in
monitoring and responding to hanging customer preferences
|
5.00
|
0.00
|
|
4.
|
Our staff knows that R&D
expenses are worth nothing until it is linked to a customer through
marketing.
|
4.85
|
0.36
|
|
5.
|
R&D performs optimally when its
research method is customer driven and technical advances are translated into
new business option and profitable products
|
4.90
|
0.31
|
From
table 2, the result of the descriptive analysis on R&DIntegration based on
responses from the five items on the research instrument indicates that
research and development units are well developed and responsive to marketing
requirements. The first item has a high mean score (x) of 4.90. Respondents
also agreed that marketing and R&D interface is key to innovation and
growth of companies resulting to a high mean score (x) of 4.85. Respondents
were of the view that R&D is crucial in monitoring and responding to
changing customer preferences. This has a high mean score (x) of 5.00. The
respondents equally agreed that R&D expenses mean nothing until it results
and is linked to a customer through marketing. Consequently, there is a high
mean score (x) of
International Journal of Innovations in
Sustainable Development, Volume 7, Number 2, 2016
ISSN: 2026-801X
4.85
in this item. Finally, respondents concluded on this item that R&D performs
optimally when its method is customer driven and technical advances are
translated into new business option. This item has a high mean score (x) of
4.90.
Association between R&D
Integration and Business Performance
The
result of the Spearman Rank Order Correlation on the association between
R&D integration and business performance is presented below:
Table 3: Correlation Matrix for
R&D and Business Performance
|
|
|
|
R&D
Integration
|
Market Share
|
Sales Growth
|
|
Spearman’s rho
|
R&D Integration
|
Correlation
Coefficient
Sig.
(2-tailed)
N
|
1.000
.
20
|
.769**
.000
20
|
.544*
.013
20
|
|
|
Market Share
|
Correlation
Coefficient
Sig.
(2-tailed)
N
|
.769**
.000
20
|
1.00
.
20
|
.497*
.033
20
|
|
|
Sales Growth
|
Correlation
Coefficient
Sig.
(2-tailed)
N
|
.544*
.013
20
|
.479*
.033
20
|
1.000
.
20
|
**
Correlation is significant at the 0.01 level (2-tailed)
* Correlation is significant at the 0.05 level
(2-tailed)
Source: Survey Data, 2015 and SPSS Version 17
statistical Output
Research and Development Integration
and Business Performance
The
Spearman Rank Order analysis result in table 3 shows that there is a
statistically significant and positive association between Total Integrated
Marketing (TIM) dimension of Research and Development (R&D) and all the
measures of Business Performance namely; market share and sales growth. The
result indicates that there is significant association between Research and
Development and market share (r = .769, P = .000 < 0.05). the correlation
coefficient represents a high correlation implying a marked association.
Specifically therefore, it means that research and development is at the root
of organizational activities. To be abreast and often times ahead of consumer
needs and wants research and development must be fully integrated.
The
same table 3 shows a statistically significant association between research and
development and sales growth (r = .544, P = 0.013 < 0.05). This correlation
coefficient represents a moderate correlation indicating a substantial
association. This means, succinctly put, that research and development enhances
sales growth. Through research and development an organization maintains an
innovative edge over rivalries in today’s competitive business environment.
Customers basic expectations are met and even surpassed with innovation which
results from R&D. Sales growth and generally business performance are
therefore faciliated. Consequently we found that:
1.
Telecommunication
companies in Nigeria fully appreciate that the effective and efficient adoption
and application of Research and development integration strategy enhances the
satisfaction of customers need and wants with competitive products that leads
to the growth of market share.
2.
The
telecommunication companies in Nigeria fully understand and appreciate that an
effective adoption and application of research and development integration
strategy leads to sales growth.
Research and Development Integration and Business Performance in the Telecommunication Industry
in Nigeria
Discussion
Significant and Positive Association
between Research and Development and Business Performance
This
study found a significant and positive association between Research and
Development Integration Strategy practiced by the managers of Nigerian
Telecommunication firms and Business Performance of such organizations. It is
established from our findings that managers of the telecommunication companies
leverage on R&D integration strategy in pursuit of their market share and
sales growth objectives. This finding is in consonance with established
theoretical postulations. Hulbert et al
(2003) was assertive in stating that innovation is an imperative for survival
of firms in the 21st century. And as it continues to be an imperative and
dictate business performance survival, the relationship and collaboration
between marketing and R&D will definitely become the pivot upon which the
future of business organizations will revolve (Piercy, 2002). Innovations, both
in products and services as well as business practices have always been of
significant importance and key to revitalizing an organization and not to
innovate is to die (Freeman, 1982).
Obviously,
the managers of Nigerian Telecommunication must have leveraged on Research and
Development (R&D) Integration Strategy to boost market share and sales
growth. This is true as Tripathy et al (2006) observe, innovation in product or
services are intended to generate revenue through sales with due consideration
to changing customer preferences, the market dynamics, advancements in
technology, speed of market launch and, above all, financial returns from
improved sales. To achieve greater market share and improvement on sales, a
company must determine its products mix or services that it offers for sale
which determines its growth and profitability. This critical task is done
through Research and Development since R&D is the engine for growth where
new technologies and processes are created (Cookson, 2000).
The
managers of telecommunication firms are aware and appreciate its role in
meeting and realizing set objectives. Research and development play a vital
role in high technology industries such as the telecommunication industry.
Playing this role requires collaboration with other functional areas such as
product and marketing in order to meet organizational objectives because
interdepartmental integration yields improved product development performance
(Kahn, 2001). Research and development integration with marketing produces
positive performance outcomes as well acknowledge that R&D spend on its own
is worth nothing until it is linked to a customer through marketing process
(Marsh, 2001).
This
critical interface explains the significant association that exists between
R&D integration strategy and business performance outcomes in the Nigeria
Telecommunication firms. Infact the ability of R&D to work with suppliers
and customers on technology innovation is becoming a defining part of the
buyer-seller relationship and may create a new type of marketing capability
(Tzokas et al, 1997). Industries that are prone to rapid changes in customer
preferences suffer in the absence of tight and effective integration of
marketing and R&D and is seen as a major force driving down customer
loyalty and hence ultimately long term profits (Piercy, 2002).
During
periods of environmental perturbations and competitive pressures, the
collaboration between marketing and R&D becomes critical. The
Telecommunication firms have benefited from this knowledge and are survival
through R&D integration strategy where quality and speed remain the pillars
of operation that improve business performance. Evidence of improved business
performance manifest first of all in enhanced customer satisfaction and
increased business profits (Lee et al,
2010). Achieving customer satisfaction depends on the offer and satisfactory
products. Evidence abound that new product development effectiveness may hinge
on the quality of the relationship between marketing and research and
development (Fisher et al, 1997; Gupta et al,
International Journal of Innovations in
Sustainable Development, Volume 7, Number 2, 2016
ISSN: 2026-801X
1996).
This relationship works best when it is internally and externally oriented and
researches must be linked to the market place which is a marketing
responsibility and which compels integration of marketing with R&D
activities. Working in this way brings out the best in marketing/R&D
integration that propels innovation which drives business performance (Hulbert
et al, 2003). The gains that accrue to firms in terms of new product
development (NPD) success and profits resulting from the synergy between
marketing and research development is noteworthy. Several outstanding scholarly
works have demonstrated the positive business performance results of this
synergy. Ruekert and Walker (1987), Gupta and Wilemou (1988), Moenaert and
Souder (1990). These intriguing academic find, were corroborated by the works
of Moenart et al (1994), Griffin and Hauser (1996). To maximize the business
performance outcomes achieved through marketing and R&D synergy, the gap
between the cultures of marketing and R&D must be bridged (Hulbert, et al
(2003). From the foregoing therefore, we conclude that:
1.
As
the managers of Nigerian Telecommunication firms adopt and practice Research
and Development Integration Strategy, their ability to increase market share
will be significantly enhanced.
2.
As
the managers of Nigerian Telecommunication firms adopt and practice Research
and Development Integration Strategy, their ability to increase sales is
significantly enhanced.
Recommendation
The
cardinal purpose of this study was to empirically ascertain the association
between Research and Development and Business Performance in the Nigerian
Telecommunication industry.
Pursuant
to this, research data were appropriately gathered, hypotheses tested, findings
made, conclusions drawn and implications stated. Based on these, this study
recommends that the adoption and application of Research and Development
Integration Strategy by the managers of the Nigerian Telecommunication firms
and indeed all overseers of corporate entities should be irrevocably sustained
and maximized. In the 21st century, success in corporate engineering is
centered on the innovativeness of the enterprise. The dynamism of consumer
needs and wants, expectations and preferences can only be met by an equally
proactive research and development agenda.
REFERENCES
Amber, T.
(2003).Marketing and the Bottomline – The Marketing Metrics to Pump Up Cash
Flow. London, Uk, Practical Hall.
Bryman, A.
and Bell, G. (2007).Quantitative Data
Analysis with SPSS Release 10 for Windows: A Guide for Social Science
Responsibilities.
Cookson, C.
(2000). RxD Proving to be an Engine for Growth.Financial Times, 15 September.
De-Waal,
A.A. (2007).Business Strategy Series. 8 (3) 179-185.
Dictionary
(2005).The America Heritage Dictionary NY, Houghton Mifflin Company.
Dominique,
R., Anderson, E., Ajaj, K.K., Michaels R.E., Baton A.W. and Zoltners, A.A.
(2005). Sales and Marketing Integration: A Proposed Framework, Journal of Personal Selling and Sales
Management, 25 (2) 113-122.
Eckerson,
W.W. (2006). Performance Dashboard: Measuring, Monitoring and Managing Your
Business. New Jersey, John Wiley and Sons.
Research and Development Integration and Business Performance in the Telecommunication Industry
in Nigeria
Epstein,
M.J. (2004). “The Drives and Measures of Success in High Performance
Organizations” in Epstein, J.J; Manzoni, J.F. (eds), Performance Measurement
and Management Control; Superior Organizational Performance, Elsevier,
Amsterdam, Studies in Managerial and Financial Accounting 14:10-14.
Fisher,
R.J; Maltz, E. Edition Jaworski, B.J. (1997).Enhancing Communication between
Marketing and Engineering: The Moderating Role of Relative Functional
Identification, Journal of Marketing.
61, 54-70.
Freeman, C.
(1982). The Economics of Industries
Innovation, 2nd Edition, London, Frances Printer.
Griffen, A.
and Hauser, R.J. (1996). Integrating R & D and Marketing: A Review and
Analysis of the Literature. Journal of
Product Innovation Management 13 (3) 191-215.
Gupta, A.K.
and Walemon, D. (1988).The Credibility – Cooperation Connection at the
RD/Marketing Interface.Journal of Product
Innovation Management.5, 20-31.
Gupta,
A.K., Raji S.P; and Wilemon (1996).A Model for Studying the RxD Marketing
Interface in the New Product Development Process, Journal of Marketing.60, 717.
Hulbert,
H.M., Capon, N. and Piercy N.F. (2003).Total
Integrated Marketing: Braking the Bounds of the Function, N.Y. The Free
Press.
Jidaw.Com
(2009).Nigerians Premier IT and Telecom Resource Providers.
Kahn, K.B.
(2001). Market Segmentation, Interdepartmental Integration and Product
Development Performance, Journal of
Product Innovation Management, 18, 314-323.
Kyckling,
K. (2010). The Impact of Marketing Sales
Relationship on Business Performance.Department of Marketing and
Management, School of Economics Aalto University.
Lee, M. and
Kim, C. (2010). The Effects of Collaboration between Marketing and Production
on Internal and External Performance, Californian
Journal of Operation Management, 8 (1) 11-20.
Liftig, J.
and Quette, S.M. (2012). Business Performance Excellence, London, Bloomsbury
Information Ltd.
Mak, T.
(1996).Growing Relationship Marketing’s Fund within Renault UK, Managing
Service Quality, 6 (4) 32-35.
Marsh, P.
(2001). The Need to Harvest Homegrown Creativity, Financial Times, March.
McGrath,
M.E. (2007). Product Strategy for High Technology Companies, NY 46-48.
Moenaert,
R.K; and Sauder, W.E. (1990).An Information Transfer Model for Integrating
Marketing and R&D Personnel in New Product Development Projects.Journal of Product Innovation Management.
7 91-107.
International Journal of Innovations in
Sustainable Development, Volume 7, Number 2, 2016
ISSN: 2026-801X
Moenaert,
R.K; Deschool M.D., Arnoud, M.D. and Sauder, W.E. (1994). RxD-Marketing
Integration Mechanicals, Communication Flows and Innovation Success, Journal of Product Innovation Management. 11,
31-45.
Narver,
J.C., and Slater, F.S; (1990). The Effect of Marketing Orientation on Business
Profitability, Journal of Marketing
54: 20-35.
Neely, A.
(1998). Measuring Business Performance – Why, What, and How?. The Economist
Books: 5.
Nunnally,
J. (1978). Psychometric Theory, McGraw Hill, New York.
Otlay, D.
(1993). Performance Management: A Framework for Management Control Systems
Research. Management Accounting Research.
10 (4) 363-382.
Oxford
Advanced Learners Dictionary (2000) 6th Edition.
Paiva, L.E;
and Gavronski, L. (2009). Beyond the Functional Silos: A Performance Analysis
Based on the Cumulative Capabilities Perspective POMS 20th Annual Conference, Orlando, Florida, USA May 1, 4-5.
Piercy,
N.F. (2002).Market-led Strategic Change:
A Guide to Transforming the Process of Going to Market. U.K. Harper-Collins
Publishers Limited.
Quick MBA
(2007).Market Share.QuickMBA.com.
Ruckert,
R.W; and Walker, Jr, C.O. (1987). Marketing’s Incamation with other Functional
Units: A Conceptual Framework and Empirical Evidence. Journal of Marketing, 51: 1-19.
Techtalkafrican
(2013). Telecommunication Companies in Nigeria Retrieved: 2/10/2013 from http://tehtalkAfrica.ccom/telecommunication-companiesin-Nig.Html
Telecomm
Solution Expert (2013).PAB x Systems Retrieved 2/10/2013 from www.adlinktech.com/advancedTCA, Compact PL, ARIP Rapid, Rugged,
Intelligent, Easy.
Tripathy,
A; and Sahu, K.A. (2006). Product Development: A Case of Integrating Functional
Roles and a Reward Mechanism to Support it. Vitakshan
XIMB Journal of Management.
Tzokas, N;
Saren, M; and Brownlie, D. (1997).Generating Marketing Resources by Means of
RxD Activities in High Technology Firms, Industrial
Marketing Management.26 331-40.
Venkatraman,
N. and Ramanujem, V. (1986). Measurement of Business Performance in Strategy
Research: A Comparison of Approaches,
Academy of Management Review, 11 (4) 801-814.
Wikipedia
(2013). The Free Encyclopedia Retrieved 2/10/2013 from: http://en.m.
Wikipedia.org/wiki/Telecommunication.
Yau,
O.H.M.; McFetridge, P.R.; Chow, R.P. (2000). Is Relationship Marketing for
Everyone? EuropeanJournal of Marketing,
34(9/10) 114-1127.
Comments
Post a Comment