A Model for Defining Relationships Between Variables

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Table of Contents

Research Questions
Research Objective
Research Topic
Reference

Variables	Hypothesis	Evidence	Reference	Page	Paragraph
Value Creation	Value creation spurs the staff’s proactiveness.	Value creation shapes the company’s ethics and updates firm’s standards. Therefore, it enhances the staff’s motivation, i.e., it motivates the staff for achieving better results. In addition, the staff will be encouraged for being initiative as the reassessment of the company’s values takes place. Thus, it can be assumed that value creation enhance the staff’s proactiveness.	Proactive investors can boost value creation, 2013; Edwardsson & Enquist, 2010; How HR can create value?, n. d.; Sanchez-Hernandez, 2012	275	Para. 1; para. 1; para. 2
	Value creation contributes to innovativeness and introduction of new ideas.	The relationship between the value creation process and the concept of innovation is somewhat complex, yet the two phenomena are still obviously connected to each other. Value creation practices enhance the employees’ engagement, since they increase motivation among the latter. As a result, the staff is ready to produce the ideas that will contribute to the company’s growth.	Tanev, Bailetti, Allen, Myalikov, Durchev & Ruskov, 2014; Dobni, 2010; Chemmanur, Loutskina & Tian, 2013; Okpara, 2007	132; 50; 3; 11.	Para. 1; para. 2; para. 1; para. 1
	Value creation helps coordinate resource leveraging	Seeing how leveraging resources requires that the interests of all stockholders should be taken into account, it is imperative that the tools for keeping the stakeholders satisfied should be introduced. Thus, the process of resources leverage can occur at a relatively stable pace. Moreover, value creation spurs a radical change in the organizational behavior, as well as often affects the motivation of the staff. As a result, an impressive boost in the organization’s productivity can be expected as the process of value creation is over.	Sirmon, 2007; Srivastava, & Gnyawali, 2011; Creating value in an unpredictable world, 2004; Altman, Nichols, & Woods, 2012; Bowman & Ambrosini, 2003;	274; 800; 15; 341; 293.	Para. 1; para. 1; para. 1; para. 3
Customer Intensity	Customer intensity allows for increasing the proactiveness of the staff	Another important component of a successful company, customer intensity should be mentioned as an important factor for enhancing proactiveness. As it has been stressed above, customer satisfaction is crucial to the company’s efficient performance and the growth of the organization’s reputation. Consequently, the more active and eager the staff is to satisfy the customers’ needs, the more loyal the company’s clientele will remain. In addition, the customers are most likely to spread the word about the company, which will serve as a perfect addition to the organization’s promotion campaign.	Hacioglu, 2012; Challagalla, 2009; Rezvani & Khaznei, 2013; Lin & Chang, 2012.	871; 82; 299; 261.	Para. 2; para. 1; para. 1; para. 1
	Customer intensity contributes to boosting the organization’s innovativeness	Creating links with the target audience and the customers is crucial for the company’s success. As long as the company keeps analyzing the feedback that it receives from the clients, it is capable of perfecting its services. More to the point, only striving for the customer satisfaction, a company can become renowned in the global market and increase its revenues.	Chiva Gómez, ‎2012; Chen, 2008; Fernandez-Mesa & Alegre-Vida, 2013; Gamal, 2011.	2; 115; 1; 3.	Para. 1; para. 1; para. 1; para. 1
	Customer intensity allows for a more careful resource leveraging	Though developing trustworthy relationships with the clients is an important part of creating successful business, customer intensity is often left forgotten compared to the rest of the components of running a business. True, marketing and advertising strategies are being constantly improved; however, it should be kept in mind that these strategies are aimed at specific target audience, which the company must communicate with in order to be aware of the emerging demands and the general feedback from the company’s clients.	Lahtinen, 2012; Volkmann & Berg, 2011	1; 4	Para. 1; para. 2
	Customer intensity creates the premises for enhancing sustainability in business	Business sustainability is the key towards the success of an entrepreneurship. Traditionally defined as the degree of customer labor that has been put into the service, the given variable is essential for defining the success of a specific company. It is important to keep the customers excited about the options that the company has to offer; therefore, apart from designing new products and conjuring marketing strategies, a company must also work on its relationships with the customer. As long as the relationships with every single stakeholder, including clients, are improved, entrepreneurship can be considered sustainable.	Kumar, 2011; Loep, 2014	18; 2	Para. 1; para. 1
	Proactiveness defines business sustainability, since it improves the services provided by the company and, therefore, affects the relationships with the key stakeholder, i.e., the customer.	The last, but definitely not the least issue that should be raised when discussing the principles of sustainable business, the link between sustainability and proactiveness must be brought up. Recent marketing researches have shown that, being initiative and proactive, a company is capable of improving the cooperation between its departments and, thus, improve its services by conducting regular audits and checking on the efficiency of the company’s major segments.	Khanna & Speir, 2013; Schaltegger, 2013.	2664; 3	Para. 1; para. 1

Research Questions

If proactiveness, innovativeness and resource leveraging are defined by the value creation and the customer intensity, thus, contributing to the business sustainability, how are proactiveness, innovativeness and resource leveraging related to each other?
In what way do proactiveness, innovativeness and resource leveraging affect the sustainability of business?

Research Objective

The key objective of the research is defining the relationship between proactiveness, innovativeness and resource leveraging, as well as their effect on business sustainability.

Research Topic

“The effects of proactiveness, innovativeness and resource leveraging on business sustainability in SMEs.”

Reference

Altman, S. L., Nichols, S. S., & Woods, J. T. (2012). Leveraging high-value natural resources to restore the rule of law: The role of the Liberia Forest Initiative in Liberia’s transition to stability. In High-value natural resources and peacebuilding (pp. 337–364). London, UK: Earthscan.

Bowman, C., & Ambrosini, V. (2003). How the resource-based and the dynamic capability views of the firm inform corporate-level strategy. British Journal of Management, 14(12), 289–303.

Challagalla, G. (2009). Proactive postsales service: When and why does it pay off? Journal of Marketing, 73(2), 70–87.

Chemmanur, T. J., Loutskina, E., & Tian, X. (2013). Corporate venture capital, value creation, and innovation. Web.

Chen, L.-J. (2008). Strategic capabilities, innovation intensity, and performance of service firms. Journal of Service Science and Management, 1(1), 111–122.

Chiva Gómez, ‎C. (2012). Organizational learning capability, product innovation performance and export intensity. Web.

Creating value in an unpredictable world (2004). Business Strategy Review, 1(1), 14–20.

Dobni, B. (2010). Achieving synergy between strategy and innovation: The key to value creation. International Journal of Business Science and Applied Management, 5(1), 48–58.

Edwardsson, B., & Enquist, B. (2010). Values-based service for sustainable business – Lessons from the retailers IKEA, Starbucks, H&M and Body Shop. Web.

Fernandez-Mesa, A. & Alegre-Vida, J. (2013). Linking entrepreneurial orientation and export intensity: How organizational learning capability and innovation performance affect this relationship? Web.

Gamal, D. (2011). How to measure organization innovativeness? Web.

Hacioglu, G. (2012). The effect of entrepreneurial marketing on firms’ innovative performance in Turkish SMEs. 8th International Strategic Management Conference, 58(12), 871–878.

How HR can create value? (n. d.). Web.

Khanna, M., & Speir, C. (2013). Motivations for proactive environmental management. Sustainability, 5, 2664-2692.

Kumar, V. (2011). Is market orientation a source of sustainable competitive advantage or simply the cost of competing? Journal of Marketing, 75(1), 16–30.

Lahtinen, J. (2012). SME view on project marketing – case study in the context of institutional space business. Web.

Lin, L.-Y., & Chang, Y.-H. (2012). The Relationship of Market Orientation, Product

Innovation, Competitive intensity and new product marketing strategy: An empirical study of Taiwan food industry. International Journal of Scientific and Technical research, 2(1), 249–265.

Loep, L. (2014). Towards a model for integrating management and communications theory in sustainability/CSR research. Web.

Okpara, F. O. (2007). The value of creativity and innovation in management. Journal of Asia Entrepreneurship and Sustainability, 3(2), 1–14.

Proactive investors can boost value creation (2013). Web.

Rezvani, M., & Khaznei, M. (2013). Prioritization of entrepreneurial marketing dimensions: A case of in higher education Institutions by using entropy. Interdisciplinary Journal of Contemporary research in Business, 4(12), 297–305.

Sanchez-Hernandez, I. (2012). Internal marketing for engaging employees on the corporate responsibility journey. Intangible Capital, 8(2), 275–307. Web.

Schaltegger, S. (2013). Business cases for sustainability and the role of business model innovation. Web.

Sirmon, D. G. (2007). Managing firm resources in dynamic environment to create value: Looking inside the black box. Academy of Management Review, 29(1), 273–292.

Srivastava, M. K., & Gnyawali, D. R. (2011). When do relational resources matter? Leveraging portfolio technological resources for breakthrough innovation. Academy of Management Journal, 54(4), 797–810.

Tanev, S., Bailetti, T., Allen, S., Myalikov, H., Durchev, P., & Ruskov, P. (2014). How do value co-creation activities relate to the perception of firms’ innovativeness. Journal of Innovation Economics, 1(7), 131-159.

Volkmann, C., & Berg, O. H. (2011). Entrepreneurial marketing. Web.

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A Model for Defining Relationships Between Variables

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