The Quest for Competitive Advantage: The Role of Technology Depth and Breadth at the Customer Interface

Abstract

Technology is becoming pivotal for firms while interacting with customers. While extensive research exists on how deployment of firm resources, such as technology, leads to competitive advantage (CA), research on the interaction between technology-led firm capabilities deployed at firm customer interaction and CA is limited. We theorize regarding a more effective approach to manage technology by looking at the effects of firm technology resource and capability deployment by a firm in the context of managing different dimensions of TRU at the firm–customer interface. We do so by considering two firm capabilities, namely, technology resource breadth utilization (TRBU) and technology resource depth utilization (TRDU). We use low involvement purchase (LIP) customer purchase context during three customer purchase stages, namely, pre-purchase, purchase and post-purchase to provide structure to the logic. We then build arguments on the relationship between the level of deployment of TRDU and TRBU and attainment of CA under different conditions. We propose testable propositions between TRBU and TRDU levels with CA attained and posit different kinds of relationship like positive, negative and inverted U-shaped relationships having inflexion points to contribute to the theorization in this area.