The use of organizational capabilities to increase customer value

a r t i c l e i n f o The importance of the customer's role in the management of a firm has been increasing for the last twenty years. A firm's organizational capabilities, both internally and externally oriented, are essential for increasing customer value creation and the focus of this paper is on market orientation, knowledge management and customer relationship management. The aim of the study is also to identify possible combinations of these organizational capabilities and to propose and analyze a sequence that will allow the creation of superior customer value. Thus, the authors test how a firm should recombine its existing capabilities when customers demand superior value in the Spanish banking industry. The results show that a specific combination of organizational capabilities can increase the customer value. Over the last few decades and in the current climate, a firm's attitude towards the customer is becoming crucial. The role of the customer has changed from that of a mere consumer to one of consumer, co-operator, co-producer, co-creator of value and co-developer of knowledge and competencies (Wang, Lo, Chi, & Yang, 2004). Furthermore, in the complex competitive environment in which firms operate, the customer now expects superior value (Sánchez, Iniesta, & Holbrook, 2009). More and more firms therefore see customer value as a key factor when seeking new ways to attain and maintain a competitive advantage (Woodruff, 1997). A firm's organizational capabilities are of paramount importance for increasing customer value creation. Managers should therefore focus on developing the capabilities that view the customer as a key component, in order to create maximum customer value. The focus of this paper is on three capabilities: market orientation (MO), knowledge management (KM) and customer relationship management (CRM). Of interest is that, although many individuals consider these capabilities as being internal in nature, because companies develop them all, the growth of a relationship with the customer and the capabilities associated with market orientation depends on considerable external contact. A review of the existing literature reveals a clear link between each of these three capabilities and customer value. The primary aim of market oriented firms, firms that manage their knowledge or those that manage customer relationships, is to offer superior customer value. However, no single or specific influence is important, but instead, the effect of the three capabilities has to be global and sustainable (i.e., permanent). According to Sirmon, Hitt, and Ireland (2007), …