Dark side of reciprocity norm: Ethical compromise in business exchanges

In this research, we investigated the impact of the reciprocity norm on ethical compromise likelihood in managerial decision-making. We developed the ‘reciprocity norm-ethical compromise thesis’, postulating that the norm of reciprocity is positively related to ethical compromises in business exchanges. Specifically, the norm of reciprocity, potentially through its moral and instrumental forces, compels a party in a reciprocal exchange relationship to advocate an ethically questionable or even unacceptable practice requested by the other party in the relationship. We also examined the role of environmental uncertainty and exchange partner's retaliatory power status as boundary conditions of the reciprocity norm-ethical compromise relationship, in addition to trust and perceived future gain opportunity in the relationships as potential mediating mechanisms of the reciprocity norm-ethical compromise relationship. The results of two experiments with business professionals have yielded support for the interaction effects of this norm and its boundary conditions on the likelihood of ethical compromise. In addition, the results yielded support for perceived future gain opportunity in exchange relationships as an instrumental mechanism linking the reciprocity norm to ethical compromises in business exchanges. Finally, the experimental results did not support the notion of trust as a moral mechanism that links the reciprocity norm to ethical compromises in business exchanges.     

The relationship between buyer and a B2B e-marketplace: Cooperation determinants in an electronic market context

“Stop thinking like a supplier and start thinking as a customer.”

The authors argue that cooperation may be achieved by augmenting the core product with technology-based services. Given the growing importance of real time information exchange and interactivity, a better understanding of the use of technology to the establishment and development of the buyer-supplier cooperative relationships is essential for knowledge advancement. This paper argues that firms should aim to put themselves into their customers' shoes and use the “voice of the customer” to take their major relationship management decisions. To do so, the authors use a sample of nearly 400 SMEs' purchasing managers, to better understand cooperation determinants from the buyers' perspective. The study reveals that in an electronic marketplace, cooperation is positively affected by termination costs, supplier relationship policies and practices, communication and information exchange, and negatively affected by product prices and opportunistic behavior. Moreover, both relationship commitment and trust play a major role in mediating the relationships between these five determinants and cooperation. Surprisingly, resources relationship benefits do not show a significant impact on either commitment or cooperation. Theoretical and managerial implications of these findings are discussed.     

When communication quality is trustworthy? Transactive memory systems and the mediating role of trust in software development teams

While the importance of communication frequency to transactive memory system (TMS) development has well been established, few studies have been done examining the relationship between communication quality and transactive memory systems in software development teams. This study empirically tests the relationships between communication quality and TMS, and the effect of TMS on team effectiveness. We also examine the mediating effect of trust on the link between communication quality and TMS. By investigating 86 software development teams in China, the results suggest that: (1) communication quality has a positive effect on TMS; (2) the link between communication quality and TMS is mediated by benevolence‐ and competence‐based trust; and (3) TMS has a positive impact on team performance. Theoretical and managerial implications of the study findings are discussed.     

Perceptual gaps and similarities in buyer-seller dyadic relationships

The research aims to develop a conceptual framework to explore dyadic relationships across a range of industries, involving firms of different size (Medium Sized Enterprise (MSE) suppliers and Multinational Enterprise (MNE) buyers). The purpose is to explore dyadic views of three different relationship durations, identify where perceptual gaps may exist at the various stages, and address these in order to improve relational exchange. A triangulated methodology is implemented with data initially obtained from fifty-four dyads. These findings suggest: a) similar views are associated with the performance and importance attached to four relationship dimensions measured, b) significant perceptual differences are more apparent in shorter term relationships, c) overall suppliers have stronger views of the relationship, and d) relationships may not necessarily follow a linear development path over time. Three case studies offer qualitative insights, several managerial implications are extracted, and a strategic matrix developed related to the management of different typologies of relationship exchange.     

The impact of psychological contracts upon trust and commitment within supplier-buyer relationships: A social exchange view

Central to this study is the emerging body of knowledge describing how social exchange relationships are being nurtured. A random sample of 343 Australian distributor firms from within the motorized vehicle industry was used to test a model developed on the basis of social exchange theory. Psychological contracts are perceptual in nature and were found to encompass reciprocal obligations stemming directly from the relational orientation between suppliers and distributors. This construct was also shown to have a positive impact upon the level of trust and commitment within the relationship. These findings have significant managerial implications for the manner in which managerial decision makers are modelling the firm-customer relationship because trust and commitment are essential elements in the development and maintenance of such relationships. The theoretical and managerial implications discussed have highlighted the need for further studies because there are deficiencies in the marketing literature pertaining to this important construct.     

Trust and knowledge sharing in context: A study of international buyer-supplier relationships in Thailand

How does trust facilitate knowledge sharing between business partners in an emerging market? We advance the relational view of knowledge sharing by theoretically developing and empirically testing moderators of the impact of trust on knowledge sharing between MNE subsidiaries and their local suppliers. Distinguishing inter-organizational and inter-personal trust, we argue that the positive relationship between inter-organizational trust and knowledge sharing is moderated by characteristics of the transaction, while the positive impact of inter-personal trust is moderated by the organizational context in which the relationship is embedded. We test our hypotheses on a sample of 156 buyer-supplier relationships between MNE subsidiaries and local suppliers in Thai manufacturing, and find empirical support for our theoretical arguments. We conclude with managerial implications on how to facilitate knowledge sharing in an emerging market.     

Comparison of benefits of radio frequency identification: Implications for business strategic performance in the U.S. and Korean retailers

This study explores a model to compare the benefits of RFID technology on supply chain management by focusing on retail industry. A path model was estimated to examine structural relationships among technological infrastructure, RFID benefits, and business strategic performance in the U.S. (n = 70) and Korean samples (n = 87). Result showed that technological infrastructure was required to more improve inventory management, store operation and demand management, leading to business strategic performance. Especially, data system automation was perceived as a prerequisite for improving inventory management for both countries. Hardware/software application was significantly related to the RFID benefit of inventory management for U.S. retailers, whereas, it was related to the benefits of efficient store operation and demand management for Korean retailers. Business strategic performance was significantly determined by RFID benefit factors (e.g., inventory management and demand management) for U.S. retailers and Korean retailers. The managerial implication for business to business strategic performance in the U.S. and Korean retail industries was discussed from a retailer's perspective.     

An analysis of international business-to-business relationships based on the Commitment-Trust theory

Business-to-business relationships are characterized by an exchange between two or more parties. Research has identified several factors that enhance marketing and management in business relationships, mainly with a focus on large manufacturing firms. However, less is known about how service firms develop and maintain international relations during the establishment of a business. To analyze the relevance of the key mediating variable (KMV) model [J. Mark. 58 (1994) 20-38.], which maintains that business-to-business relationship requires commitment and trust, interviews were conducted with five different service entrepreneurs in Sweden, Australia and the UK. The findings demonstrate the importance of commitment, trust, relation termination costs and benefits, shared values and communication between the exchange partners.     

Guanxi vs. relationship marketing: Exploring underlying differences

The present paper attempts to explore the underlying mechanism between Western relationship marketing and Chinese guanxi by examining the construct equivalence of the two concepts. First, it distinguishes guanxi from relationship marketing in terms of the personal and particularistic nature of the relation. Second, it differentiates trust from xinyong, its counterpart in Chinese, based on a comparison of their roles in relationship building and maintenance. Third, it discusses the unique meaning of renqing, which is proposed as an underlying mechanism that guides behavior norms in guanxi and a mediator between trust or xinyong and long-term orientation. Finally, it concludes by discussing the managerial implications for international marketers who wish to succeed in the Chinese business market and the importance of adapting Western relationship marketing principles to guanxi marketing.     

Adding co-creation as an antecedent condition leading to trust in business-to-business relationships

Trust enjoys wide acceptance among scholars as a key facilitator of inter-organisational relationship development, and successful relationship development demands an understanding of what drives the propensity to trust between organisations within both cognitive and affective dimensions of trust. The six most salient antecedents of trust within contemporary trust literature have been identified as satisfaction, communication, competence, shared values, benevolence and integrity. This research suggests that co-creation is also an important antecedent of trust in business-to-business relationships. Co-creation is described here as the active participation, interactions and collaboration of the buyer and seller and other actors in the marketing exchange to develop a deeper understanding of the customer problem solving context.The relative strength of the cognitive and affective aspects of trust antecedents, the moderating influence of business experience and seniority on the relationship between significant antecedents and trust is also explored. The analysis uses statistical tools and then probes deeper using fuzzy-set qualitative comparative analysis (fsQCA).     

Exporter-importer relationship quality: The inhibiting role of uncertainty, distance, and conflict

The article examines the impact of uncertainty, distance, and conflict on key elements comprising the quality of the relationship between U.S. industrial exporters and their overseas customers. Information received from 151 manufacturers revealed that these three parameters play a significant negative role in building sound relationship quality, in terms of adaptation, commitment, communication, cooperation, satisfaction, trust, and understanding — which, in turn, may inhibit the firm's progression along the internationalization path. Specifically, an inverse association was found between uncertainty, distance, and conflict, on one hand, and commitment, cooperation, and satisfaction, on the other. In addition, in relationships characterized by high uncertainty, adaptation, communication, trust, and understanding were low. In high distance relationships, communication was insufficient, and in high conflict situations, trust and understanding were low. Several managerial implications are extracted from the study, as well as directions for future research.     

Temporal dynamics of trust in ongoing inter-organizational relationships

This paper reports the results of a qualitative study undertaken to understand the nature of trust and its consequences for both suppliers and buyers in short term (relatively new) and long term (older/more mature) relationships in inter-organizational contexts. Scholars have recently pointed out the importance of research that investigates the temporal characteristics and dynamics of trust in inter-organizational studies. Our paper responds to this call by indentifying the changing nature of the level of trust as the buyer–supplier relationship matures. Our findings contribute to sparse and conflicting previous research on the relationship between length of partnership and perceptions of trust, types of dark side consequences of trusting relationships, and reasons buyers and suppliers continue or terminate low/no-trust associations. Specifically, we illustrate that buyers and suppliers draw on substantially different metaphors for understanding the nature of trust in long and short term exchange relationships. Suppliers see marked differences in trust with long term versus short term exchange partners, while buyers see little or no difference. Suppliers and buyers also appear to have different conceptions of how trust is nested (or not) within the broader economic and/or personal relationship. Through our inductive model, we elaborate several types of betrayal and disappointment, distinguish several factors that lead suppliers and buyers to stay in relationships with partners they don't trust, and identify key issues that topple untrusting relationships into terminated relationships.     

Association of financial or professional conflict of interest to research outcomes on health risks or nutritional assessment studies of genetically modified products

Since the first commercial cultivation of genetically modified crops in 1994, the rapidly expanding market of genetically modified seeds has given rise to a multibillion dollar industry. This fast growth, fueled by high expectations towards this new commercial technology and shareholder trust in the involved industry, has provided strong incentives for further research and development of new genetically modified plant varieties. Considering, however, the high financial stakes involved, concerns are raised over the influence that conflicts of interest may place upon articles published in peer-reviewed journals that report on health risks or nutritional value of genetically modified food products. In a study involving 94 articles selected through objective criteria, it was found that the existence of either financial or professional conflict of interest was associated to study outcomes that cast genetically modified products in a favorable light (p = 0.005). While financial conflict of interest alone did not correlate with research results (p = 0.631), a strong association was found between author affiliation to industry (professional conflict of interest) and study outcome (p < 0.001). We discuss these results by comparing them to similar studies on conflicts of interest in other areas, such as biomedical sciences, and hypothesize on dynamics that may help explain such connections.     

Benefiting from dedication and constraint in buyer-seller relationships

This paper contributes to recent calls for studying the effectiveness of relationship-based marketing practices [De Wulf, Odekerken-Schröder, & Iacobucci, 2001; Palmatier, Robert W., Dant, Rajiv P., Grewal, Dhruv, Evans, K.R. (2006), Factors influencing the effectiveness of relationship marketing: A meta-analysis, Journal of Marketing, Vol. 70, October, 142-143.] by identifying the influence of relationship investments, personnel competencies, frequency and quality of communication on some selected B2B relationship outcomes. The paper also sheds light on the discussion of the role of contextual factors on relationship development by incorporating the construct of quality of supply alternatives into the hypothesized structural model and empirically testing this model in the context of the transforming Polish economy. The results of research conducted among business customers are used to verify the model using SEM techniques.According to a prior conceptualization [Bendapudi, Neeli, Berry, Leonard L. (1997), “Customers' Motivations for Maintaining Relationships With Service Providers,” Journal of Retailing, Vol. 73[1], 15-37.] research suggests that companies operating in B2B markets may benefit from both dedication-based and constraint-based relationships, but the first type of relationships brings more positive outcomes. The widest set of relationship benefits may be achieved by improving the emotional tone of the relationship which is connected mostly with developing competencies of personnel and a high quality of inter-firm communication. Other analyzed marketing practices should be carefully used because they may not lead to expected results. The research results are discussed with regard to prior studies in the area. Some managerial implications, study limitations and suggestions for further research are presented.     

The significance of trust and renqing in the long-term orientation of Chinese business-to-business relationships

While business relationships with China are receiving increased attention in both practitioner and academic discourse, very little empirical work however, has been undertaken to isolate and examine measures that focus on business-to-business relationships, and as such, research in this area is somewhat scant. In an attempt to bridge this gap, and add to the knowledge in this emerging discipline, the research aims to develop a conceptual framework to explore the relationship between trust and the long-term orientation in Chinese business-to-business market relationships. Based on a survey with Hong Kong companies that have a buyer-seller relationship with Chinese companies, the empirical findings indicate the mediating role and significance of ‘renqing’ for enhancing trust and contributing towards the long-term stability in relational exchange. The results highlight several implications for practicing managers to consider when aiming to establish and develop relationships in a Chinese business-to-business context.     

Salespeople as information gatherers: Associated success factors

Salespeople are in a vantage position to have intimate knowledge of the customers. How to motivate them to be effective information retrievers becomes a challenge to sales managers in today's knowledge economy. This paper presents the results of a study into managerial factors that are associated with more effective information retrieval by sales forces for use in their CRM systems. Sales executives (n = 150) responded to a mailed survey describing the importance of a set of activities to their recruiting/selecting, training, supervisory processes and the climate in the organization generated by upper level management. Results show that supervision and upper management support associate significantly with the effective information retrieval of salespeople; while training those more technically savvy sales recruits results in more effective information retrieval.     

Initial relationship development in new business ventures

This paper seeks to investigate some of the issues faced by an existing company when developing the initial customer relationships for a new venture. All companies face the challenge of new-relationship development in order to achieve growth and to replace relationships which have been lost or are in decline. But the challenge of developing the first customer relationships of a new venture is likely to be particularly acute because the new venture's marketing function and its offering to customers are likely to be undefined and undeveloped. This paper is based on a case study of initial customer relationship development in a new venture of an established business. The paper analyses the issues that the company faced in developing these initial relationships and the approaches to relationship development that it took. The case analysis leads to the conclusion that the development of initial relationships can be facilitated by an ‘open marketing function’ involving a number of functional areas both in the supplier and in the initial customers. The paper draws managerial implications from the case analysis for the task of marketing in this situation.     

Governance mechanisms in domestic and international buyer–supplier relationships: An empirical study

Governance mechanisms are a key element of business relationships. However, little is known about the possible differences between their uses in domestic versus international business relationships. Drawing on empirical data, we investigate three issues. First, we compare the use of five governance mechanisms (contracts, value-creating norms, value-claiming norms, specific investments, and trust) in purely domestic relationships as opposed to relationships with an international component. We also investigate whether customer satisfaction and commitment differ in these two settings. Second, we extend the model of Palmatier, Dant, and Grewal (2007) by adding two distinct types of governance norms—value-claiming norms and value-creating norms—and analyze the interrelationship between the five governance mechanisms as well as their impacts on business customer satisfaction and commitment. Finally, we analyze the moderating role of internationality on relationships between governance mechanisms and customer commitment. Data from a survey of 296 companies support most of the hypothesized relationships.     

The role of information technology in strategic buyer–supplier relationships

Information technology (IT) has long been acknowledged as an integral part of inter-organizational business exchange. The extant research, however, tends to emphasize the focal company perspective and focuses on operational issues, perceiving IT and business relationships as separable. Through a qualitative dyadic case study, our study defines how IT is positioned with regard to various elements of a strategic buyer–supplier relationship and the respective actors' operational and managerial behaviors. The study defines the role of IT regarding the structural, action, and management layers of a relationship and shows how IT can be a strong element around which relationship management activities are implemented to improve the consistency and performance of the relationship. The study prepares the ground for further qualitative and quantitative research to enhance a holistic understanding on IT in relation to the structures and processes in inter-organizational contexts of business relationships and networks.