A Dynamic Theory of Competitive Rationality to Explain the Internal Behavior of Solutions Oriented Firms

Abstract

Many firms are scrapping old product and service models and replacing them with solutions oriented approaches in hopes of generating greater revenues. Herein, solutions are defined as product and service offerings tailored to meet idiosyncratic needs of individual customers. Due to lack of attention, research focusing on solutions oriented firms represents a substantial area of opportunity for business-to-business marketing scholars. As a starting point, this manuscript seeks to provide a general theory for explaining the internal behavior of solutions oriented firms. In doing so, the paper builds off the dynamic theory of competitive rationality and its emphasis on disequilibrium caused by continuous innovation in a given market. This general theory of solutions oriented firms contributes to the marketing literature in that it gives marketing academics a thorough understanding of activities within a solutions-oriented firm and through this understanding, provides future directions for research in this emergent area of marketing.