• Journal of Korea Trade
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• v.24 no.8
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• pp.81-100
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• 2020

Purpose - Based on complexity theory, this study develops a configurational model to predict the profitability of Halal cosmetics firms in the Indonesian and Malaysian markets. The proposed research model involves two level configurations-industry context and selling strategies-to predict high and low scores of a firm's profitability. The industry context configuration model comprises industry stability, product homogeneity, price sensitivity, and switching cost. Selling strategies include customer-focused, competitor-focused, and margin-focused approaches. Design/methodology - This is the first empirical study that calculates causal models using a combination of industry context and selling strategy factors to predict profitability. Data obtained from the marketing managers of cosmetics firms are used to test the proposed configurational model using fuzzy-set qualitative comparative analysis (fsQCA). It contributes to the current knowledge of business marketing by identifying the factors necessary to achieve profitability using analysis of condition (ANC). Findings - The results revealed that unique and distinct models explain the conditions for high and low profitability in the Indonesian and Malaysian halal cosmetic markets. While customer-focused selling strategy is necessary to attain a higher profit in both the markets, margin-focused selling strategy appears to be an essential factor only in Malaysia. Complexity of the interactions of selling strategies with industry factors and differences between across two study markets confirmed that complexity theory can support the research configurational model. The theoretical and practical implications are also illustrated. Originality/value - Despite the rapid growth of the global halal industry, there is little knowledge about the halal cosmetic market. This study contributes to the current literature of the halal market by performing a set of asymmetric analytical approaches using a complex theoretical model. It also deepens our understating of how the Korean firms can approach the Muslim consumer's needs to generate more beneficial turnover/revenue.

• Information Systems Review
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• v.19 no.3
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• pp.127-154
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• 2017

This study aims to identify various service innovation patterns in the service industry and understand the main differences among them. We attempt to create a new typology of service innovation by analyzing its patterns based on the four major dimensions of service innovation (i.e., service concept, service delivery, customer interaction, and technology). We then investigate whether firms pursuing different service innovation patterns significantly differ from one another in terms of their performance (high and low performance). Based on empirical data collected from 198 Korean firms in the knowledge-intensive business service sector, four major clusters composed of different service innovation dimensions are identified. These four clusters can be interpreted as specific service innovation patterns, including "technology based high customer interaction," "high technology based high service delivery," "service delivery and high customer interaction-integrated," and "strongly balanced" innovators. High firm performance does not depend on the individual service innovation dimension but on the specific configurations of such service dimensions. Customer interaction also has an important role in achieving innovation success and improving firm performance, while technology has a key role in enhancing firm performance. This study sheds new light on service innovation research by developing a new typology of service innovation, identifying four major clusters as service innovation patterns, and exploring the relationship between service innovation patterns and firm performance.