With the growing recognition of the customer's role in service creation and delivery, there is an increased impetus on building customer-centric organizations. Digital technologies play a key role in such organizations. Prior research studying digital business strategies has largely focused on building production-side competencies and there has been little focus on customer-side digital business strategies to leverage these technologies. We propose a theory to understand the effectiveness of a customer-side digital business strategy focused on localized dynamics-here, a firm's customer service units (CSUs). Specifically, we use a capabilities perspective to propose digital design as an antecedent to two customer service capabilities-namely, customer orientation capability and customer response capability-across a firm's CSUs. These two capabilities will help a firm to locally sense and respond to customer needs, respectively. Information quality from the digital design of the CSU is proposed as the antecedent to the two capabilities. Proposed capability-building dynamics are tested using data collected from multiple respondents across 170 branches of a large bank. Findings suggest that the impacts of information quality in capability-building are contingent on the local process characteristics. We offer implications for a firm's customer-side digital business strategy and present new areas for future examination of such strategies.
Open-source software development is the next stage in the evolution of product development, particularly software products. Compared with the prevailing proprietary approaches, open-source software products are developed by co-opting external developers and prospective users. Although a core group of developers might still play a key role in the initial design and development, a notable aspect of the open-source software paradigm is the role of peripheral developers in the enhancement and popularization of the product. Peripheral developers are not formal members of the core development team. They voluntarily contribute their time and creative talent in improving the quality of the product or in popularizing the product through word-of-mouth advocacy. As volunteers, they are not subject to the traditional hierarchical controls, nor are they contractually obligated. Peripheral developers represent a novel and unique aspect of open-source software development, and there is a greater interest in tapping their potential. However, there has been limited evidence about how and when their participation has beneficial impacts. We examine how peripheral developers contribute to product quality and diffusion by utilizing longitudinal data on 147 open-source software products. Hierarchical linear modeling analysis indicates that peripheral developers make significant contributions to product quality and diffusion, especially on projects that are in the more mature stages of product development.