Balancing on a Tightrope: Customer Relational Capital, Value Creation and Disclosure

Vivien Beattie, Robin Roslender, Sarah Jane Smith (Lead / Corresponding author)

    Research output: Contribution to journalArticle

    Abstract

    This paper documents and compares the perceptions of key functional specialists regarding the contribution of 16 customer relational capital components to value creation and the motivations underlying its external disclosure. Findings of questionnaire surveys to samples of UK listed company marketing directors (who create customer relational capital) and finance directors (who report customer relational capital) are supplemented by follow-up interviews. Marketing directors and finance directors broadly agreed on the relevant importance of the components to value creation. While companies attempted to internally collate information on those components of most value creation importance, there was a lack of correlation between perceived value creation importance and the extent of external disclosure. This suggests that external disclosure is a poor proxy for value creation importance. In terms of disclosure incentives, marketing directors prioritise trust creation among a range of stakeholders whereas finance directors take a more share holder-centric perspective. External disclosure attracts new customers and informs other stakeholders, yet may adversely affect relationships with existing customers and/or breach specific non-disclosure agreements or generic industry restrictions and regulations. Harming competitive position is considered the major disclosure disincentive. In the view of marketing directors, managing the external disclosure of relational capital is akin to balancing on a tightrope.
    Original languageEnglish
    Pages (from-to)19-52
    JournalFinancial Reporting
    Issue number3-4
    DOIs
    Publication statusPublished - 2013

    Fingerprint

    Value creation
    Relational capital
    Disclosure
    Marketing
    Finance
    Stakeholders
    Shareholders
    Industry
    Perceived value
    Questionnaire survey
    Breach
    Listed companies
    Incentives

    Keywords

    • customer relational capital
    • Intellectual capital
    • value creation
    • marketing directors
    • disclosure

    Cite this

    @article{5250f84131784f70a3db8ae2423119c3,
    title = "Balancing on a Tightrope: Customer Relational Capital, Value Creation and Disclosure",
    abstract = "This paper documents and compares the perceptions of key functional specialists regarding the contribution of 16 customer relational capital components to value creation and the motivations underlying its external disclosure. Findings of questionnaire surveys to samples of UK listed company marketing directors (who create customer relational capital) and finance directors (who report customer relational capital) are supplemented by follow-up interviews. Marketing directors and finance directors broadly agreed on the relevant importance of the components to value creation. While companies attempted to internally collate information on those components of most value creation importance, there was a lack of correlation between perceived value creation importance and the extent of external disclosure. This suggests that external disclosure is a poor proxy for value creation importance. In terms of disclosure incentives, marketing directors prioritise trust creation among a range of stakeholders whereas finance directors take a more share holder-centric perspective. External disclosure attracts new customers and informs other stakeholders, yet may adversely affect relationships with existing customers and/or breach specific non-disclosure agreements or generic industry restrictions and regulations. Harming competitive position is considered the major disclosure disincentive. In the view of marketing directors, managing the external disclosure of relational capital is akin to balancing on a tightrope.",
    keywords = "customer relational capital, Intellectual capital, value creation, marketing directors, disclosure",
    author = "Vivien Beattie and Robin Roslender and Smith, {Sarah Jane}",
    year = "2013",
    doi = "10.3280/FR2013-003003",
    language = "English",
    pages = "19--52",
    journal = "Financial Reporting",
    issn = "2036-671X",
    number = "3-4",

    }

    Balancing on a Tightrope : Customer Relational Capital, Value Creation and Disclosure. / Beattie, Vivien; Roslender, Robin; Smith, Sarah Jane (Lead / Corresponding author).

    In: Financial Reporting, No. 3-4, 2013, p. 19-52.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - Balancing on a Tightrope

    T2 - Customer Relational Capital, Value Creation and Disclosure

    AU - Beattie, Vivien

    AU - Roslender, Robin

    AU - Smith, Sarah Jane

    PY - 2013

    Y1 - 2013

    N2 - This paper documents and compares the perceptions of key functional specialists regarding the contribution of 16 customer relational capital components to value creation and the motivations underlying its external disclosure. Findings of questionnaire surveys to samples of UK listed company marketing directors (who create customer relational capital) and finance directors (who report customer relational capital) are supplemented by follow-up interviews. Marketing directors and finance directors broadly agreed on the relevant importance of the components to value creation. While companies attempted to internally collate information on those components of most value creation importance, there was a lack of correlation between perceived value creation importance and the extent of external disclosure. This suggests that external disclosure is a poor proxy for value creation importance. In terms of disclosure incentives, marketing directors prioritise trust creation among a range of stakeholders whereas finance directors take a more share holder-centric perspective. External disclosure attracts new customers and informs other stakeholders, yet may adversely affect relationships with existing customers and/or breach specific non-disclosure agreements or generic industry restrictions and regulations. Harming competitive position is considered the major disclosure disincentive. In the view of marketing directors, managing the external disclosure of relational capital is akin to balancing on a tightrope.

    AB - This paper documents and compares the perceptions of key functional specialists regarding the contribution of 16 customer relational capital components to value creation and the motivations underlying its external disclosure. Findings of questionnaire surveys to samples of UK listed company marketing directors (who create customer relational capital) and finance directors (who report customer relational capital) are supplemented by follow-up interviews. Marketing directors and finance directors broadly agreed on the relevant importance of the components to value creation. While companies attempted to internally collate information on those components of most value creation importance, there was a lack of correlation between perceived value creation importance and the extent of external disclosure. This suggests that external disclosure is a poor proxy for value creation importance. In terms of disclosure incentives, marketing directors prioritise trust creation among a range of stakeholders whereas finance directors take a more share holder-centric perspective. External disclosure attracts new customers and informs other stakeholders, yet may adversely affect relationships with existing customers and/or breach specific non-disclosure agreements or generic industry restrictions and regulations. Harming competitive position is considered the major disclosure disincentive. In the view of marketing directors, managing the external disclosure of relational capital is akin to balancing on a tightrope.

    KW - customer relational capital

    KW - Intellectual capital

    KW - value creation

    KW - marketing directors

    KW - disclosure

    U2 - 10.3280/FR2013-003003

    DO - 10.3280/FR2013-003003

    M3 - Article

    SP - 19

    EP - 52

    JO - Financial Reporting

    JF - Financial Reporting

    SN - 2036-671X

    IS - 3-4

    ER -