The impact of psychological contract breaches within east-west buyer-supplier relationships

The expanding role of Asian firms in global supply chains has meant that their Western counterparts need to be capable of transcending the East-West divide in their relational building efforts if they wish to successfully participate in these networks. This paper draws upon social exchange (SE) theory to integrate the exit, voice, loyalty, neglect (EVLN) typology with the psychological contract (PSYCON) literature, to examine how Australian buyer firms build and nurture relationships with their Chinese suppliers. Data from 327 Australian managers collected using an online self-administered questionnaire reveals the negative effects of PSYCON breaches towards their suppliers on neglect, voice and loyalty in the relationship. In addition, contrasting effects of neglect and voice behaviours on trust and commitment, suggest that these behaviours can help erode and build East-West B2B relationships, respectively. These findings extend research on B2B relationships and offer useful managerial insights for decision makers operating in global supply chains involving relationships between firms from Eastern and Western backgrounds.     

Outsourcers’ control mechanisms,vendors’ contract schemas,and project performance in cross-border IT outsourcing: A vendor’s perspective

Relational conflicts are likely to occur in cross-border IT outsourcing between partners with different cultural backgrounds. Extant literature diverges on the role of contract and trust as control mechanisms in managing relational conflicts. Prior studies have examined the effectiveness of the control mechanisms primarily from the outsourcer’s perspective, with little consideration of how vendors interpret outsourcers’ control mechanisms. Based on psychological contract theory, this study addresses the effects of contract-based and trust-based control mechanisms on relational conflicts from the vendor’s perspective and further explores the contingency of the effects on vendors’ psychological contract schemas (transactional contract schema and relational contract schema) towards their relationships with outsourcers. Based on survey data from 180 offshore outsourcing IT projects, the results show that vendors’ transactional contract schema reduces the effect of trust-based control whereas vendors’ relational contract schema strengthens the effect of outsourcers’ contract-based control on relational conflict. Relational conflicts, in turn, exhibit a negative impact on project performance. The findings offer new insights into the role of outsourcers’ contract-based control and trust-based controls in relationship management from a vender’s perspective. The findings also extend the outsourcing governance literature by illustrating the contingency of the control mechanisms on vendors’ psychological contract schemas.     

Pensions as Psychological Contracts: Implications for Work Outcomes

Drawing on psychological contract theory, we develop predictions regarding the moderating influence of the meaning employees assign to their marginal quit costs, as well as on the role of stayer perceptions and saver effects, on various work outcomes under a defined-benefit pension. Results show pension incentives can have favorable or unfavorable effects depending on whether employees perceive them as supportive relational contracts or as low-trust transactional contracts. Implications for research and policy are discussed.     

心理契约违背、顾客满意与消费者非伦理行为——伦理意识的调节作用

消费市场竞争日益激烈,企业不能履行承诺的责任与义务时,则会形成心理契约违背,导致顾客产生不满意情绪,甚至出现非伦理行为。本文通过对328个样本数据的实证研究表明,交易型、关系型心理契约违背对消费者非伦理行为在部分维度上存在显著的正向影响;顾客满意在关系型心理契约违背与消费者非伦理行为之间的关系中起中介作用;相对主义伦理意识在关系型心理契约违背与无伤害行为之间具有显著的正向调节作用。为引导消费者进行伦理消费,企业应履行自身承诺维护顾客心理契约,提供个性化服务提升顾客满意度。     

The Importance of Social Capital to the Management of Multinational Enterprises: Relational Networks Among Asian and Western Firms

Social capital is an important concept for multinational firms. Firms operating in global markets rarely have adequate resources to compete effectively in global markets; they access the needed resources through formal and informal relationships with other firms. The cultures in Asian countries have emphasized relationships much more strongly than Western firms. Thus, relational capital, based on guanxi (China), kankei (Japan) and inmak (Korea), provides the framework for business dealings in many Asian countries. As a result, the social capital of many Asian firms gives them a potential competitive advantage in global markets. Western firms must develop social capital and learn to manage relational networks to gain and sustain a competitive advantage in global markets. Western firms can learn how to develop and manage social capital from Asian firms. Alternatively, social capital has some disadvantages. Firms are limited by their networks and thus experience opportunity costs and path dependence. Additionally, while Asian firms often have strong network ties in their domestic markets, they have to develop many more ties globally to operate effectively in global markets. As a result, the development and management of social capital has become of critical importance for competitive advantage in global markets.     

农业经营组织演化的经济学解释

对农业经营组织演化的经济学机理进行了系统梳理和分析。研究表明：农业生产特性使得公司化和集体化模式面临高监督和组织协调成本,中国农村土地安排的社会保障功能,使得农业家庭经营具有一定的合理性。然而,农业家庭经营本身难以克服农业资本和技术服务约束、市场准入困难和市场风险威胁,农业经营正在经历一个组织化的过程。“公司＋农户”在克服市场进入障碍和降低市场风险的同时,面临着由于合同不完全性、不公平性和机会主义导致的合约不稳定窘境;农户合作社通过农户之间的合作,能够克服农户资本和技术服务农业生产约束,通过组织化农户与企业签定合约,提升了契约稳定性,但传统的农户合作存在“搭便车”等内在缺陷,限制了服务的规模,必须进行内部制度创新,向新一代合作社演化。农业经营的外部环境和内在技术变化,必然会引起农业组织本身的变化,农业经营组织演化的经济因素和演化方向,是值得进一步关注的问题。     

Evolution of B2B relationship stages in China: A study of confucianism philosophy

This study aims to explore the development of business relationships from an interactional perspective, which challenges the conventional time-based view in Western contexts. Twenty in-depth interviews with Chinese SME managers reveal the uniqueness and importance of the operationalization of Confucian virtues, the guiding principles, and mechanisms for social interactions and trading practice, in developing Chinese business to business (B2B) relationship stages (i.e., discernment, authentication, stabilization, and decoupling). Given the role of Confucian virtues and their dynamics for the development of business relationships, we further argue that the evolution of a relationship depends on the shifts in concerns of transactional and relational governances among business partners. Our propositions advance the literature by showing that distinct constructions of Confucian virtues mark a vantage point for business operators and practitioners in formulating effective B2B relationship strategies in China, and raising future research questions of the impacts from sub-evolutions in Confucian virtues on B2B relationships.     

Outcome-based contracts as new business model: The role of partnership and value-driven relational assets

This paper investigates the new business model of outcome-based contracts where the firm is tasked to achieve outcomes of equipment as a service contract instead of the traditional maintenance, repair and overhaul activities (e.g., power-by-the-hour® engine service contract). Through a qualitative study of two outcome-based contracts between BAE Systems, MBDA and the UK Ministry of Defence, we derive three value drivers of information, material and people transformation. Mapping it with transaction cost literature we propose five relational assets based on the value drivers; three value-driven alignments and two partnership inputs. We then study the relationships between the relational assets and contract performance through a quantitative survey by applying the partial least square (PLS) method. Our study shows that behavioral and information alignments are important to achieve outcomes. However, material and equipment alignment (i.e., joint supply chain) does not have a significant effect on contract performance. In addition, perceived control and empowerment mediated the relationship between partnership inputs and value-driven alignments. Our study provides a more integrated view of how various theoretical management domains overlap in the understanding of business models, and contribute to the understanding of value drivers and partnership factors in achieving performance in outcome-based contracts.     

Social media in B2B sales: Why and when does salesperson social media usage affect salesperson performance?

The importance of social media usage by B2B salespeople has been well documented in the sales literature. In particular, a B2B salesperson's use of social media to prospect for customers and adapt their sales approach have primarily been shown to explain sales performance. However, an increasing body of literature in the sales domain has called for B2B salespeople to be ambidextrous by engaging in service activities aimed at helping their customers. We argue that by giving B2B salespeople an opportunity to communicate directly with their customers, social media is used by salespeople to proactively service their customers and hence can play a critical role in driving sales performance. Drawing from the Task-Technology Fit theory, we develop and test a conceptual model in which B2B salesperson social media usage affects salesperson performance indirectly through value-oriented prospecting and proactive servicing. Additionally peer social media usage was a key moderator in the relationship between B2B salesperson social media usage on the one hand and value-oriented prospecting and proactive servicing on the other hand. We test the model with data from 171 B2B salespeople and find that salesperson social media usage relates positively with proactive servicing and value-oriented prospecting. While we did not find support for the relationship between social media usage and adaptive selling, we did find support for the impact of all three sales activities salesperson performance. In addition, results show that peer social media usage has positive moderating effects on the B2B salesperson social media usage and value-oriented prospecting/proactive servicing relationships.     

Toward a social fitness perspective on contract design: Contract legitimacy and influence strategy

The effectiveness of contracts in terms of cooperative efficiency and relational outcomes in interorganizational relationships has become critical in today's volatile markets. However, extant research on the effect of contracts on trust has found inconsistent results, possibility because of its overwhelming focus on an economic fitness perspective at the expense of a social fitness perspective. Drawing insights from institutional theory, we focus on legitimacy building in interfirm contract design, investigate how contract legitimacies (i.e., regulative, normative, and cognitive) influence the effectiveness of interfirm contract design, and further explore the moderating effects of influence strategies that are applied in the process of contract implementation. Using longitudinal field survey data and archival data, this study finds that the three types of contract legitimacy play different roles in influencing compliance and trust and that noncoercive influence strategies can improve the effectiveness of regulative and normative legitimacy better than coercive influence strategies on trust. The findings offer new theoretical and managerial insights into the role of institutional environments in the effectiveness of contract design in manufacturer–distributor relationships.     

Relationships in the purchasing of business to business professional services: The role of personal relationships

There has been a shift from transactional to relational exchange and relationship marketing both in the business to business and professional services contexts. This paper seeks to explore the manner in which personal relationships affect the process and outcomes of purchasing of professional business services. Specifically, it focuses on the role of the professional service providers as boundary spanners in the formation of personal relationships. These personal relationships constitute the underlying basis of long-term relationships between the purchasing and provider organizations in such complex service settings. The findings of this study demonstrate that the manner in which the boundary spanners cultivate relationships support the concept of relationship specific tasks. It extends this conception by use of the data to outline the chronological process over time Understanding the roles, function, and ultimately importance, of these relationships facilitates the identification and development of appropriate strategies to manage these relationships.     

Transforming provider-customer relationships in digital servitization: A relational view on digitalization

Digitalization is viewed as a source of future competitiveness due to its potential for unlocking new value-creation and revenue-generation opportunities. To profit from digitalization, providers and customers tend to move away from transactional product-centric model to relational service-oriented engagement. This relational transformation is brought about through digital servitization. However, current knowledge about how providers and customers transform their relationship to achieve benefits from digital servitization is lacking. This paper addresses that knowledge gap by applying the relational view theory to a study of four provider-customer relationships engaged in digital servitization. The results provide evidence for four relational components – complementary digitalization capabilities, relation-specific digital assets, digitally enabled knowledge-sharing routines, and partnership governance – that enable providers and customers to profit from digital servitization. A key contribution is the development of a relational transformation framework for digital servitization that provides an overview of how the four relational components evolve as the relationship progresses. In doing so, we contribute to the emerging servitization literature by offering key relational insights into the interdependence of activities throughout the transformation phases of provider-customer relationships in digital servitization.     

农民工职业选择行为分析——从职业性质与职业类型的角度

一般认为,如果农民工能够在城市获得一份长期合同或者能够从事社会、经济地位较高的工作。那么他们将更有可能融入城市。这有利于缩小地区和社会阶层的差距,构建和谐社会。基于CHIPS2007数据。应用多元logit回归模型从职业性质和职业类型的角度分析了农民工的内生约束（人力资本和社会资本）对其职业选择行为的影响。实证结论表明：受教育程度以及强社会关系对农民工获得长期合同以及技术管理类职位存在显著的正向影响。     

组织间关系演进：三维契约、路径和驱动机制研究

组织合作是常态。如何构建高效的组织间关系是现代组织战略面临的重大挑战和关键问题。文章从组织间关系内在建构出发,表明组织间关系演进实质是显性契约、关系契约、心理契约的进阶过程。以此为基础,指出组织间关系演进遵循信任、关系依存、承诺路径,而复杂动态性、组织文化及网络嵌入则是组织间关系契约进阶和演变路径的动力机制。并分别结合三对组织间关系的演进实例对演进内在机理进行了验证性分析,从而为剖析纷繁芜杂的组织间关系提供了新视角和关系构建思路。     

Till death do us part…but not always: Six antecedents to a customer's relational preference in buyer-seller exchanges

Since its emergence in the early 1990s as marketing's newest paradigm or school of thought, research in the area of relationship marketing has been proliferating. From the customer's perspective, initial attempts to become lifelong partners with key sellers or suppliers were appealing. However, as these propositions multiply in number and carry with them increasing burdens in terms of time and commitment, customers are reticent to enter into long-lasting relationships with all sellers. In this paper, we consider relationship formation from the customers' perspective and examine the antecedents to a customer's preference for a relational exchange orientation versus a transactional exchange orientation. Our belief is that, depending upon a set of contextual factors surrounding the exchange, customers will opt for a relational orientation with suppliers in some cases and for a more transactional orientation in others.     

Linking authentic leadership to salespeople's service performance: The roles of job crafting and human resource flexibility

To build the sustainable service excellence, organizations should fuel sales employees’ drive to serve customers and recover service failures to their utmost satisfaction. The primary aim of our study is to delve into the role of authentic leadership in fostering customer-oriented organizational citizenship behavior (OCB) and service recovery performance among sales employees. Respondents for our surveys comprised employees and managers from sales departments of pharmaceutical companies in Vietnam. The data analyses justified the positive relationships between authentic leadership and customer-oriented OCB as well as service recovery performance in a business to business (B2B) context. Job crafting served as a mediator for the links between authentic leadership and customer-oriented OCB as well as service recovery performance. Furthermore, human resource (HR) flexibility was found to play a moderating role for the effect of authentic leadership on job crafting among sales employees.     

The strategic role of relational capabilities in the business-to-business service profit chain

This paper extends the original service profit chain by examining the role of relational capabilities with employees, customers and strategic partners on process and performance outcomes in a business-to-business context. More specifically, we demonstrate how satisfied and loyal employees are better in developing relationships with customers and strategic partners. These relationships enable firms to be more responsive towards customers and become more innovative, which increase customer satisfaction and loyalty and, ultimately, financial performance. Our results provide support for the development of relational capabilities in a business-to-business environment by extending the service profit chain (SPC) model. However, we find that while the development of strong customer relationships contributes to an improved service responsiveness of the firm, strategic partners do not.     

The effect of social capital on local suppliers’ exploitative and exploratory learning in global buyer–supplier relationships: the moderating role of contract specificity

Drawing on the theories of social capital (SC) and organizational learning, a contingency theoretical framework that examines the impact of structural, relational, and cognitive SC on local suppliers’ exploitative and exploratory learning in the context of global buyer–supplier (GBS) relationships in China was developed. The extent to which the impact is moderated by the contract specificity between the buyer and supplier is also examined. The empirical results show significant positive impacts of structural and relational SC on local suppliers’ exploitative learning but significant negative impacts on local suppliers’ exploratory learning. More specifically, contract specificity strengthens the positive effects of all three dimensions of SC on exploitative and the negative effects of structural SC and relational SC on exploratory learning. They put forward several potential implications for practicing managers and policymakers.     

Supply Chain Relationships for Customer Satisfaction in China: Interdependence and Cooperative Goals

This study develops a model based on Deutsch’s theory of cooperation and competition to clarify the supply chain relationships and interactions that contribute to customer satisfaction. Results of structural equation analyses suggest that organizations and suppliers and organizations and distributors who recognize each other’s importance develop cooperative rather than competitive and independent goals. With cooperative goals, they come to trust each other and work for continuous improvement; these relationships in turn result in the products and service that satisfy customers. Results were interpreted as suggesting that cooperative goals are an important basis for developing effective supply chain partnerships in Asia and perhaps in other regions as well.     

What drives customer Re-engagement? The foundational role of the sales-service interplay in episodic value co-creation

As existing business-to-business value co-creation (VCC) contracts approach their planned expiration, customers evaluate incumbent suppliers when forming their decisions to re-engage or defect. During this late stage of VCC, supplier sales and service personnel perform unique activities to support one another and foster VCC re-engagement. To investigate this sales-service interplay, the authors employ an exploratory inquiry consisting of 115 depth interviews across 63 customer accounts. Interviews were conducted with customers following the decision to re-engage or defect from an incumbent supplier. Findings suggest that sales' efforts to renew the VCC contract depend on tactical insights provided by service. Through their involvement with customers, service holds a tactical perspective that can extract micro-level customer insights. Findings also suggest that service's ability to influence supplier-specific knowledge stores within the customer organization depends on macro-level strategic customer directives that may be shared by sales. Further, service's activation of such knowledge stores moderates the relationship between sales' RFP response and the customer's VCC re-engagement decision. The results have implications for the industrial sales and service fields, since the integration of the sales and service teams is critical for garnering intrafirm knowledge flows that drive recurrent VCC within collaborative customer-supplier relationships.