Enterprise feedback management (EFM): what lies beyond the hype?
2020
Purpose - The needs of CMOs to utilize a firm’s data productively in order to support
decision making combined with the reported benefits of Enterprise Feedback Management
solutions has resulted in a rapid rise in usage and valuation of EFM providers. The explicit
promise of EFM providers is improved financial performance, whereas there is no scientific
research investigating this link. To investigate the link between EFM usage and financial
performance is core of this research.
Design/methodology/approach – To gain insight into this link survey data from 127 USbased
firms on their usage of EFM platforms was linked to their stock market performance over
several years.
Findings – This research did not find any significant positive relationships between
different aspects of EFM usage investigated and stock returns. It is important to note that these
results should not be taken as validation that EFM systems do not result in positive financial
outcomes for firms. It may be that superior market performance as measured through stock
returns is difficult to observe through a cross-sectional analysis. Instead these results indicate
that superior market performance as measured through stock market performance is not an
obvious, generalizable outcome for firms that have adopted EFM systems.
Originality – Enterprise Feedback Management has rapidly grown across many consumer
facing industries, with EFM platform providers receiving very high market valuations on
relatively small revenue streams. This is one of the first scientific papers to study the usage and
impact of these EFM systems.
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