Abstract
This paper explores the benefits that firms obtain when investing in feature-based capabilities. We investigate the external pressures when deciding their feature-based strategy. In addition, we analyze the consumers’ customization options and the needs for facilitators to mitigate the negative effects of excessive features. We assess the influence of feature-based capabilities on performance and search for an economically feasible loop that feature-based capabilities might entail. This latter is carried out by investigating the recursive effects in structural equation modeling. Our findings reveal that feature-based capabilities entail an economically feasible loop through competitors and supply chain partners but not also through facilitators and operational performance.
Highlights
Nowadays, firms tend to offer unique customization experiences to consumers by proposing a wide variety of features [1]
Our findings reveal that feature-based capabilities entail an economically feasible loop through competitors and supply chain partners but not through facilitators and operational performance
Our findings demonstrate that both competitors and supply chain partners offer significant stimuli for firms to invest and develop feature-based capabilities, with the former having a stronger influence
Summary
Firms tend to offer unique customization experiences to consumers by proposing a wide variety of features [1]. The latter are defined as varieties that users can identify aiming to increase the product capabilities and attractiveness [2]. Consumers can purchase smartphones that work as cellphones, game consoles, internet connections, cameras, MP3 players, dashboards and GPS devices. LG electronics has developed refrigerators that mount TVs inside one of the doors. This might confuse consumers about the needs for either a refrigerator, a TV, or an electronic device that functions as both items at the same time
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