Developing a New Theory of Frontline Manufacturer-Retailer Relationships for Consumer Packaged Goods

Purpose: Frontline employees from consumer packaged goods (CPG) manufacturers, and the retailers’ employees who they interact with, play a crucial role in the in-store execution of product promotions and in ensuring that products are available for shoppers. This article investigates the development of interpersonal relationships between these frontline actors at the store-level of analysis and how these relationships influence in-store processes. We consider the theoretical and practical implications of our findings for sales force recruiting and sales management in the CPG retail channel.

Methodology/approach: Frontline relationships and in-store execution remain relatively under researched fields in the sales management and retail literatures. Given the lack of a well-established theoretical framework, we conducted a qualitative study in the grounded theory research tradition. We interviewed frontline personnel from manufacturers and retailers, their immediate managers and headquarters personnel and other industry experts. We took a holistic approach to data collection; also gathering other types of written, photo and video data for the purpose of iterative data analysis and developing a mid-range theory of relationship development between manufacturer representatives and retailer employees, the frontline employees tasked with executing marketing and merchandising strategies in the store.

Findings: We develop a model of frontline relationship development and performance consisting of 4 distinct stages: (1) working alongside, (2) building respect, (3) cooperative relationship (helping hands), and (4) collaborative partnership. We compare our findings with existing relationship marketing and relationship management theories. We find that an alternative theoretical framework may suit the particularities of the CPG retail channel better.

Research implications: This article provides insight into a very specific but important type of business-to-business relationships in the CPG retail channel that have seen little scholarly attention. It calls for re-evaluating the relevance of existing relationship marketing and sales management paradigms in the CPG retail channel. Future research could investigate the extent to which our model is applicable in sales environments beyond the CPG retail channel.

Practical implications: The study’s findings contribute to the practice of relationship marketing and sales management in the CPG retail channel. We present a case for a different approach of managing manufacturer-retailer relationships at the store level, a more functional tactic, which seems to deliver higher relationship performance than expected under the relationship marketing paradigm prevalent in sales and retail literatures. This different approach has direct consequences for the recruitment and management of a CPG sales force.     

Double-Loop Sales Adaptation: A Conceptual Model and an Empirical Investigation

Purpose: The purpose of this article is to conceptualize and discuss the phenomenon of a double-loop sales adaptation in sales and its practical application. The resultant framework is developed from existing academic literature on adaptation in sales and marketing and inspired by the concept of double-loop learning.

Methodology/approach: The study adopted an abductive approach, iterating between the empirical world of two service firms and the theoretical world. The developed framework is refined with interview-based feedback from key informants in business-to-business organizations.

Findings: This article develops a framework for double-loop sales adaptation, which combines adaptations of selling behavior with a sales mindset.

Contribution: Although previous research recognizes adaptation as a central aspect of relationships, the link between adaptation and sales mindset has arguably been inadequate in the literature. Accordingly, this study focuses on sales adaptation occurring at the two levels of behavior and mindset.

Implications for practice: The proposed framework provides sales practitioners with a model for adaptation in their customer relationships. By distinguishing between two sorts of adaptation, managers can optimize resource allocation to both benefit the company and strengthen the relationship among parties.     

The power of international marketing functions: antecedents and consequences

Purpose: This paper addresses intra-organizational power of international marketing (IM) functions. While IM functions play an important role in firms that operate in continuously changing international environments, their power has been under-explored. Importantly, IM managers need to understand their function’s power and its implications for business performance.

Methodology/approach: Drawing on resource-dependency and interaction theories, we contend that IM functions’ power is affected by the power of non-marketing functions and coordination and conflicts with them. Additionally, IM functions’ power should affect international performance. However, contingency factors may change this effect. The empirical study uses data from senior managers of B-to-B international firms. The model is tested using multiple regression analysis and extensive post-hoc tests.

Findings: While IM functions are powerful, their power is enhanced by coordination with other functions and is reduced by the power held by non-marketing functions. Surprisingly, conflicts with other functions increase IM functions’ power. Finally, IM functions’ power enhances international performance but its effect is weakened by intra-IM conflicts and differs across hi- and low-tech firms.

Research implications: This study provides insights about drivers and outcomes of IM functions’ power based on their relationships with non-marketing functions. Performance consequences of IM power are dependent on contingencies. The study extends knowledge on the under-researched phenomena of marketing power in a B-to-B international context.

Practical implications: IM managers should manage sources of relative functional power and unique intra-firm interactions to sustain or promote their power and thus benefit their firms’ international performance. Practitioners recognize mechanisms to control IMs’ power.

Originality/value/contribution: The study is the first to focus on the interactions of IM functions with non-marketing functions in B-to-B firms and thus complements prior research on IM, general marketing, and non-marketing functions.     

Enhancing Export Performance for Business Markets: Effects of Interorganizational Relationships on Export Market Orientation (EMO)

Purpose: Drawing on the relationship marketing perspective, this study explores the effects of interorganizational relationship variables on export market orientation (EMO), in turn enhancing the export performance. Furthermore, firm internationalization was included as a moderator between export market-oriented behavior and export performance.

Methodology: The authors tested the hypotheses via a mail survey involving 235 exporting firms. LISREL and regression analysis were used to test the proposed model.

Findings: The results support the hypotheses, which posit that commitment, trust, and social interaction are positively related to EMO behavior, whereas power is negatively related to such behavior. Second, firm EMO behavior is positively related to export performance. Third, the degree of internationalization strengthens the effect of EMO on export performance.

Research implications: This study improves existing theoretical understanding by supporting the relationship marketing perspective and international channel research for performing export market-oriented behaviors.

Practical implications: The leverage of interorganizational relationships appears a solid strategy for performing export market-oriented behaviors. Exporters can focus not only on export market-oriented behaviors being performed but also on expansion to new markets.

Originality/value: This study contributes to the marketing and international business literature and provides insights to exporters by examining the relationships among interorganizational relationship variables, EMO, and export performance. This study also introduces the degree of internationalization from a contingency-based view and demonstrates that internationalization complements EMO, and thus facilitates export performance.     

Salespeople,Fairness, and Buyer Satisfaction: What about Emotions?

Purpose: Although most studies focus on rational decision-making in organizational buying, this research examines the satisfaction through the integration of fairness and emotion theories. It thus broadens knowledge about the formation of satisfaction in buyer–seller relationships, through an integration of justice and emotion theories.

Design/methodology/approach: A survey of 130 buyers was conducted. The test of the proposed model relied on structural equation modeling. To examine the mediating role of positive emotions, we followed the procedure proposed by Baron and Kenny (1986). That is, we compared the proposed framework against two competing models: a non-mediated model and a saturated model that featured all possible causal paths.

Findings: Results show that both distributive and procedural fairness have a positive impact on buyer’s satisfaction, following two different paths: a rational path with fairness acting directly on satisfaction; and an emotional path where emotions play a mediator role.

Research limitations/implications: Buyers evaluate satisfaction through an emotional lens. Business relationships are not completely rational, a consideration with importance for buying and customer relationship theory.

Practical implications: Sellers must pay attention to their customer policies from the perspective of their customers. In addition to guaranteeing a “fair” outcome, sellers must ensure that buyers are subject only to procedures that customers perceive to be fair. Indeed, since buyers in business relationships are not completely rational, business-to-business (B-to-B) experts should acknowledge the influence of emotions in their sales strategies.

Originality/value: The mediating impact of emotion in the fairness–satisfaction relationship has not been explored in buyer–seller settings previously. Deconstructing satisfaction with the decision process into its cognitive and affective elements, we examine the emotional dimension of B-to-B buying process.     

Value Co-Creation Processes—Early Stages of Value Chains Involving High-Tech Business Markets: Samsung–Qualcomm Semiconductor Foundry Businesses

Purpose: This research aimed to identify both the specialized resources and competences for value co-creation when the value co-creation phenomenon is extended to the early stage of the value chain. Further, it proposes a framework that can analyze the value co-creation process in the high-tech business-to-business (B-to-B) market.

Methodology/approach: The research methodology was based on building a theory from a case study. The qualitative data was coded based on the grounded theory coding after collecting data from multiple sources.

Findings: Four critical resource types (financial resources, knowledge resources, efficiency resources, and intellectual resources) and five competence types (relational capability, collaboration capability, strategic capability, innovation capability, and managing capability) were constructed as the principal factors for value co-creation at the early stage in the value chain within the high-tech B-to-B market. Among the four resources and five competences, intellectual resource and strategic capability associated with value co-creation were unique findings in our case research.

Research implications: Our results provided new insights, which the value co-creation can be extended to the early stages in the value chain, such as the research and development (R&D) stage, in the high-tech B-to-B market, whereas extant value research was more focused on the late stages of the value chain. The reciprocal value co-creation process, which used four resources and five competences of both the supplier and customer, was proposed as an integrated framework to co-create value at the early stage of the value chain within the high-tech B-to-B market.

Practical implications: A supplier’s R&D, marketing, manufacturing, planning departments and the customer can utilize the defined resources as well as competences at different stages of the value chain in order to co-create value and improve their performance. In particular, the marketing department of the supplier needs to turn their eyes to the early stages in the value chain so as to seek a value co-creation strategy.

Originality/value/contribution: A value co-creation strategy was sought from a different perspective, extending from a late stage to an early stage in the value chain of the high-tech B-to-B market. The integrated research framework, combining resources and competences of the supplier and customer, was established to analyze the value co-creation phenomenon.     

Impression Management Tactics and Performance Ratings: A Moderated-Mediation Framework

Purpose: The objective of this study is to contribute to the sales management literature by analyzing whether self-monitoring dimensions (the ability to adjust the presentation of one’s self and the sensitivity to the expressive behaviors of others) play a moderating role in the use of impression management—supervisor liking—performance rating nomological network.

Methodology/approach: Empirical analysis is based on dyadic data from 122 industrial salespeople and their sales managers in 9 different industries. Structural equation modelling was used to analyze the psychometric proprieties of the measurement scales, and conditional process analysis was used to test the proposed hypotheses.

Research implications: The results obtained indicate that the use of supervisor-focused impression management tactics is an indirect antecedent of a salesperson’s performance rating through sales manager liking, but not the self-focused tactics. Results also show that a self-monitoring dimension i.e., the ability to adjust the presentation of one’s self, moderates the “impression management—supervisor liking—performance rating” chain. These results provide an increased understanding of the processes involved in sales managers—salespeople’s interactions.

Practical implications: The main implication for salespeople is that the use of impression management tactics to influence performance ratings only is effective when they use supervisor-focused tactics because attempts to influence via self-focused tactics will not have any effect. The most important implication for sales managers’ is that not all impression management tactics are successfully executed and that the identification of combinations of impression management tactics and the levels of salespeople’s self-monitoring can positively influence performance appraisals by generating evaluative biases. Given that evaluative biases can produce inequitable behaviors by sales managers in the task assignments and support provided to the salespeople, it is important that sales managers are aware of when they can occur (i.e., when salespeople with a moderate ability to adjust their self-presentation use supervisor-focused tactics).

Originality/value/contribution of the article: This article contributes to the existing knowledge by two important means. First, this study proposes a model and presents an empirical test of constructs that mediate (i.e., supervisor liking) and moderate (i.e., self-monitoring dimensions) the “use of impression management tactics—sales manager liking—performance appraisal” relation. This model responds to calls for studies that analyze how impression management tactics are related to performance appraisal and when the relation between the use of these tactics and performance rating occurs. Two, this study uses data from both salespeople and their sales managers, which minimizes any risk of common method variance bias.     

Power-Base Effects on Salesperson Motivation and Performance: A Contingency View

Purpose: The sales literature shows that motivation is a key determinant of salesperson performance. The literature also suggests that how managers use social power will have an effect on important organizational outcomes, including salesperson performance. This study examines the five bases of social power that sales managers use (reward, coercive, legitimate, referent, and expert) as moderating influences in the salesperson motivation (extrinsic and intrinsic)—salesperson performance linkage.

Methodology/approach: Data was collected from 128 salespeople using a cross industry survey. Eight hypotheses were developed and tested using SmartPLS (partial least squares).

Findings: The authors found support for five of eight hypotheses. Results and significant findings suggest that sales managers can impact sales performance in extrinsically motivated salespeople by using coercive and legitimate power. For intrinsically motivated salespeople, sales managers can impact sales performance by using coercive, legitimate, and referent power.

Research implications: Related to social power theory, the study suggests that salesperson performance is dependent upon a salesperson’s combined motivation orientation and the base of power used by the sales manager. The study also sets the stage for subsequent research on how managerial power can be studied as a moderator for other personal salesperson characteristics (e.g., self-esteem, self-efficacy, locus of control) and salesperson performance. In addition, understanding how these other personal characteristics interact with managerial bases of power to produce other organizational outcomes (e.g., job satisfaction, organizational commitment) are questions that sales researchers may wish to pursue via further study.

Practical implications: For practicing sales managers, the research study can provide guidance as to how they may tailor their use of power to best impact salesperson performance. For a manager to understand the motivational makeup of each salesperson, open communication and dialogue must occur at the onset of their relationship. Having the knowledge of what drives each salesperson, a manager can modify their leadership style (and choice of power base) to suit the situation. Customizing these sales management approaches may also have long-term benefits for the organization as studies show that doing so can lead to reduced levels of turnover as well as increased levels of performance.

Contribution of the article: This study is important to sales research, theory, and practice. The authors contribute to the selling and sales management literature by extending motivation and social power theories into the sales domain by showing that managerial power may be a key moderating determinant between a salesperson’s motivation and his/her sales performance. For practicing sales managers, we provide some insight and guidance for understanding how to throttle or moderate their use of various social power bases when dealing with individual salespeople who may differ in their motivation orientation, age, and degree of selling experience.     

Impact of CRM technology on sales process behaviors: empirical results from US,Europe, and Asia

Purpose: The diffusion of customer relationship management (CRM) systems across the globe, over the last decade, has created a need to improve the understanding of the impact of technology on the sales process from a global perspective. The authors examine how CRM technology impacts the sales process (creating opportunity, managing opportunity, and managing relationships) in three regions of the world (US, Europe, and Asia).

Methodology/Approach: The differences among US respondents (n = 789), European respondents (n = 327), and Asian respondents (n = 91) were explored. A multivariate analysis of variance (MANOVA) was conducted on creating opportunity, managing opportunity, and managing relationships, with dichotomized CRM effectiveness and geography (US/Europe/Asia) as factors.

Findings: The MANOVA revealed a significant influence of CRM effectiveness, but a non-significance for geography and a non-significance for the interaction between CRM effectiveness and geography. This pattern of results suggests that CRM effectiveness leads to significant differences in sales processes; however, these influences are not qualified by the geography to which the firm belongs. Ensuing univariate Analysis of Varirances (ANOVAs) revealed a significant influence of CRM effectiveness on creating opportunity, managing opportunity, and managing relationships, but not for firm–geography or its interaction with CRM effectiveness. Post hoc tests revealed that firms high on CRM effectiveness were better at creating opportunity, managing opportunity, and managing relationships. Differences in CRM effectiveness lead to significant differences in sales processes; however, these influences once again are not qualified by the geography to which the firms belong.

Originality/Value Contribution: This study provides several contributions to the stream of research focused on CRM globally. First, due to globalization, CRM use and process can be more standardized across regions and cultures. With the evolution of technology such as Web 2.0 and cloud computing, barriers to communicating and exchanging information, regardless of time zone or location, have been decreased. A US firm’s use of a CRM platform can essentially capture the same information on a client that a firm in Europe or Asia also manages. CRM’s ultimate measure of success is for the buyer–seller relationship process to positively impact the level of business conducted.     

Buyer Loyalty in Business Markets: Can the Firm and Salesperson Get What They Truly Desire?

Purpose: Prior literature has acknowledged multi-foci customer loyalties (loyalty to the selling firm and salesperson-owned loyalty) and argued that both entities (selling firms and salespersons) foster customer loyalty through respective loyalty-capturing efforts (relationship investments). However, scholars have not investigated the influences of different types of interfirm relationship-specific investment (RSI) activities and salesperson behaviors (brand-building and guanxi behavior) on customer loyalty to the selling firm and salesperson-owned loyalty, especially their simultaneous (interaction) effects. The current research attempts to address this issue and examines the impacts that RSIs and salesperson behaviors have on customer loyalties.

Methodology/approach: A survey of seller–buyer dyads was conducted to test the proposed theoretical model and hypotheses. Using 192 dyadic data from customers and salespersons in the Chinese business-to-business contexts, this study specifies the direct and interactive effects of sellers’ RSIs and salespersons’ behaviors on customer loyalties.

Findings: Results indicate that selling firms’ loyalty-capturing efforts—property-based and knowledge-based RSIs—have different influences on two types of customer loyalty. Salespersons’ relationship investments—brand-building and guanxi behaviors—also have asymmetric impacts on customer loyalty. Counterintuitively, salespersons’ loyalty-capturing efforts weaken the relationships between firms’ RSIs and customer loyalties.

Originality/value/contribution: This study specifies different types of relationship investments and examines their respective and interactive impacts on two types of customer loyalty—loyalty to the selling firm and salesperson-owned loyalty. The findings indicate that firms’ and salespersons’ efforts may lead to unexpected and unintended effects on multi-foci loyalties. Therefore, the current study enriches our knowledge about multi-foci loyalty management and relationship marketing.

Practical implications: Because firms’ and salespersons’ loyalty-capturing strategies exert positive direct influences on loyalty to the selling firm and salesperson-owned loyalty, both entities may actively leverage relationship investments’ impact on customer loyalty. However, as the interactive effects derived from concurrent loyalty-enhancing activities are negative, firms need to clearly assess the nature and

characteristics of their relationship with buyers and properly design relationship investments and guide salesperson behaviors. Managers should use property-based RSIs as a primary safeguard of customer loyalty to the selling firm. Meanwhile, internal branding and training programs can help salespersons develop brand building behaviors and better understand the potential unintended outcomes that different behaviors may induce. Aligning a branding goal between the firm and salespersons can benefit both parties while avoiding counter-productive outcomes.     

Validity and Reliability of Satisfaction as a Mediator between Quality Constructs in Manufacturer–Supplier Relationships Through Time and Across Contexts

Purpose: The main objective is to test and assess a research model through time and across contexts in which satisfaction is a mediator between quality constructs in manufacturer–supplier relationships. Satisfaction is positioned as a mediator between trust and commitment (i.e., causes) on the one hand, and cooperation, coordination and continuity expectancy (i.e., outcomes) on the other. The objective is also to provide a substantiation and contribution through time and across contexts, to business theory of supplier-manufacturer relationships

Methodology/approach: One out of eight samples selected for additional empirical substantiation for this study comprises a total of 600 small and medium-sized Spanish enterprises from various industrial sectors. A total of 259 usable questionnaires were returned, generating a response rate of 43.2%. The study is positioned (and compared) in relation to seven other samples that have been tested within the same research model in Canada, Finland, Norway (twice), South Africa, Sweden, and Taiwan. The total number of useable questionnaires is 1641, the average number of useable questionnaires per study is 205 and the average response rate is 37.4% in the studies assessed of this article.

Findings: The research model tested and assessed in the eight studies meets the requirements for satisfactory convergent, discriminant and nomological validity, as well as for construct reliability. The measurement and structural metrics support validity and reliability over time and across contexts, which is rare in marketing research.

Research implications: The theoretical framework contributes, through time and across contexts, to the business theory of supplier–manufacturer relationships. The tested research model demonstrates properties of validity and reliability across countries and company sizes. Implications and suggestions for further research are provided.

Practical implications: The empirical findings indicate key factors that contribute to satisfaction in manufacturer–supplier relationships in different countries and companies.

Originality/value: The article makes a contribution to theory relating to supplier–manufacturer relationships, providing evidence that the tested, hypothesized relationships are generally applicable. The validation or falsification of empirical findings in previous research is crucial in building valid and reliable theory over time and across contexts. Otherwise, theory becomes fragmented and undermines the credibility of marketing research.     

Business marketing in France: can the case be made for “French exceptionalism” or is it just a slight variation?

Purpose: The aim of this article is to elucidate the state of B-to-B marketing research in France by conducting a review of theoretical and empirical studies in this field that have been published over the last three decades.

Methodology/approach: Authors identified relevant literature sources, and proceeded with classifying the publications according to their main theme of study (as determined by reviewing the topic, the abstract, and/or keywords). To extract the main articles, authors explored multiple electronic databases, including Source Premier (EBSCO), Elsevier Science Direct, Google Scholar, and Cairn.info. This methodology has allowed comparisons both in time and in relation to similar works done in other countries. The analysis focuses on the main contributions of French literature in the B-to-B domain and establishes that progress has been made in understanding the issues of B-to-B marketing in France, as well as in the development of the theory in this field.

Findings: The review shows that B-to-B marketing research in France, although under-represented in relation to its B-to-C counterparts, is gradually emerging from the shadows and covers important topics that are increasingly diverse and varied. By identifying the main topics studied by French B-to-B marketing researchers, this work advances this academic discipline while also providing valuable information.

Originality/value: This study is the first attempt to conduct an in-depth examination of the state of B-to-B marketing research in France. Findings yielded by this literature review would be beneficial to both B-to-B marketing researchers and practitioners and promotes this research field.     

Strategic positioning,timing of entry,and new product performance in business-to-business markets: do market-oriented firms make better decisions?

Purpose: The mechanism by which market orientation contributes to positional strength of a new product, appropriate timing of entry to the market, and new product performance is examined in a business-to-business (B-to-B) context.

Methodology/Approach: We examine the role of new product positional strength and the role of timing of entry in the market orientation—new product performance relationship using 178 firms operating in the B-to-B market.

Findings: The results show that establishing a new product’s positional strength is a key step in the success of the new product. Market orientation does not directly influence new product performance. Instead, it shapes a new product’s positional strength, which, in turn, positively influences new product performance in the B-to-B market. Timing of entry decision for the new product, shown to be an outcome of its positional strength, is not a determinant of new product performance.

Research implications: We depict the tactical process in new product success and highlight the role of new product positional strength in linking market orientation and new product performance.

Practical implications: The findings reveal that market-oriented firms achieve superior new product performance through well-defined positioning strategy for a new product, not rapidity of action.

Originality/Value/Contribution: This study explains how market orientation influences new product performance in the B-to-B market, taking into consideration new product positional strength and timing of entry.     

Relationships between Entrepreneurs in Business Incubators. An Exploratory Case Study

Purpose: Business incubators are areas created to help firms find their feet and are devised to promote entrepreneurial initiatives. From the relationship marketing approach, the present study seeks to identify the key differentiating variables involved in relations between entrepreneurs located in the same incubator.

Methodology/approach: The research process is grounded on an exploratory qualitative analysis, based on in-depth interviews with entrepreneurs who belong to two Spanish public business incubators, which form part of the Chamber for Business Creation and Development (INCYDE) network of incubators.

Findings: Findings allow us to highlight aspects such as complementarity of resources, awareness and shared values, frequent contact, and a psychological commitment, as well as certain specific aspects of the relations to emerge in such contexts.

Originality/value/contribution: The article contributes to the literature on business-to-business relationships by developing a conceptual framework of relations among entrepreneurs located in incubators. Moreover, it provides an agenda for future research on the process whereby value and social capital is created through business incubators.     

Brand Loyalty Versus Store Loyalty: Consumers’ Role in Determining Dependence Structure of Supplier–Retailer Dyads

Purpose: This article aims to integrate consumers into a channel dependence framework and explores the influence of consumers’ brand loyalty and store loyalty on the dependence structure within the supplier–retailer relationship. It also examines effects of the dependence structure on perceived conflict.

Methodology/approach: The authors test the proposed triadic relationship model among department store, supplier, and consumer by collecting matched data from both retailers and consumers in a Chinese retailing channel of sports and leisure apparel. Polynomial regression in conjunction with a response surface analysis (RSA) approach is used to test the hypotheses.

Findings: The results indicate that consumers’ brand loyalty positively affects retailer’s dependence on supplier, while consumers’ store loyalty positively affects supplier’s dependence on retailer. In addition, the retailer’s dependence is higher when consumers’ brand loyalty is higher than store loyalty; the supplier’s dependence is higher when consumers’ store loyalty is higher than brand loyalty; and the retailer’s dependence increases with the increase of both consumers’ brand and store loyalty when consumers’ brand and store loyalty are equal. Moreover, supplier’s dependence has a negative linear effect on retailer’s perceived conflict, whereas retailer’s dependence has an inverted U-shape effect on perceived conflict. A retailer would perceive more conflict when the retailer is relatively more dependent on the supplier; but the symmetrical interdependence has no significant effect on retailer perceived conflict.

Research implications: Researchers are encouraged to explore channel behaviors from a network perspective. Consumers, in particular, should be included in research frameworks related to channel dependence and behaviors. Suggestions for further research on the effects of dependence on the conflict are also proposed.

Originality/value/contribution: This study goes beyond the dyadic paradigm by integrating consumers into the framework of the channel dependence structure. It develops and tests a mechanism of consumers’ brand and store loyalty influencing dependence structure within a supplier–retailer dyad. It also enriches the literature of channel conflict by exploring the effects of retailer and supplier unilateral dependence on retailer perceived conflict with RSA methods.

Practical implications: The article provides several insightful implications for managers in understanding and managing interdependence structure in business-to-business marketing, especially in supplier–retailer relationships.     

Theoretical perspectives of supplier–buyer long-term relationships in India

Purpose: The purposes of this study are to investigate changing Indian supplier–buyer relationships and to propose an effective conceptual model using theoretically developed constructs such as power, performance, satisfaction (economic and noneconomic), conflict (economic and noneconomic), trust, cooperation, switching cost, and commitment

Methodology/approach: This study is focused on supplier–buyer relationships among Indian companies in the processed/packaged (not fresh) food business. All of the measures for the constructs were developed for and empirically tested in previous studies. Confirmatory factor analysis and path analysis were used to test the conceptual model.

Findings: First, Indian suppliers’ power sources and performance significantly influence satisfaction and conflict. Second, satisfaction and conflict are significantly related to cooperation, trust, and switching cost. Third, cooperation and trust have a significant impact on commitment.

Research implication: One of the unique aspects of the study is to analyze the differential effects of satisfaction and conflict in India. Using dichotomized (economic and noneconomic) constructs, the ways in which Indian buyers’ economic satisfaction, noneconomic satisfaction, economic conflict, and noneconomic conflict are related to other relationship constructs (power sources, performance, cooperation, trust, switching costs, and commitment) are investigated.

Originality/value/contribution: For global companies, a key requirement for success is how to develop and sustain long-term relationships with local companies. This study suggests practical and information for successful marketing strategies to establish long-term supplier–buyer relationships in India.     

Marketing and Technological Absorptive Capacities: Environmental Antecedents and Performance Outcomes in High-Tech Firms

Purpose: This article investigates marketing and technology absorptive capacities as distinct types of external knowledge while considering three environmental conditions, namely uncertainty, munificence, and heterogeneity and two distinct outcomes, namely innovation and financial performance.

Methodology/approach: Using a quantitative approach, the authors analyze data from 141 Israeli business-to-business high-tech firms.

Findings: The data mostly supported the hypotheses. Empirical findings imply that an uncertain environment is a precursor for a strong effort to develop a technological absorptive capacity and, to a lesser extent, a marketing absorptive capacity. Technological and marketing absorptive capacities were found to be distinct constructs with positive impacts on financial and innovation performance. Marketing absorptive capacity had a stronger impact than technological absorptive capacity on financial performance. Surprisingly, marketing absorptive capacity was negatively associated with innovation performance.

Originality/value: This study attempts to overcome some limiting assumptions of absorptive capacity theory that have contributed to its reification in order to make three theoretical contributions. First, it distinguishes between marketing and technological absorptive capacities. Second, it tests differential responses of the two absorptive capacities to environmental contingencies. Third, it compares the differential impacts of marketing and technological absorptive capacities on financial and innovation performance.     

Buyer–seller relationships of the dental devices industry in Taiwan: perspective of relationship

Purpose: While research in marketing and management has addressed characteristics associated with buyer and seller, relatively little research has been reported on the marketing of relationship benefits and relationship bonding tactics, particularly involving their relationships with customers. Given a dyadic perspective, it can be surmised that gaps in buyer and seller perceptions may well dampen relationships, and will inevitably occur, since a perfect match is highly unlikely between two exchange parties. To enhance relationships, major gaps need therefore to be identified and eliminated. Therefore, the purpose of this study is developing matrices of customer relationship benefits and relationship bonding tactics separately from buyer’s and seller’s perspectives, together with the insights of interrelated propositions.

Methodology: This research subjects chosen for this study consist of those distributors of dental devices, procurement in hospitals, and dentists. Using the grounded theory, four stages of coding analysis are conducted.

Findings: The results indicated that buyers and sellers differed in their perceptions in all field interviews due to their different attitudes toward different benefits. While buyers’ perceived benefits were based on the consideration of confidence and trust in the practical use of purchased medical devices, sellers primarily considered specialized issues of provided services and technologies. Based on this, buyer and seller perspectives were distinguished.

Research Implications: As a self-enclosed system, the medical device industry is difficult to enter for new manufacturers. Therefore, from the perspective of product providers, academic support can increase their product visibility, improve their company’s image, and provide more opportunities to contact new clients. From the perspective of medical institutions, the participation of hospitals and clinics in relationship marketing activities and seminars can raise their prestige and provide more opportunities for gaining new information.

Originality/Value/Contribution: Theoretical contribution of this study is in building matrices of customer relationship benefits and relationship bonding tactics separately from buyer’s and seller’s perspectives, together with the insights of six propositions. These insights shall expose the undisclosed systems of the dental devices industry.     

New Product Development Process Implementation in a Business-To-Business Firm: The Driving and Moderating Factors for Improved Program Performance and Time-To-Market

Purpose: The study aims to examine the critical factors affecting the implementation of a formalized new product development (NPD) process in a business-to-business (B-to-B) company with product-driven growth.

Methodology/approach: Case study using a combination of survey, artifacts, and long interviews

Findings: The findings suggest that (1) the initial phase proficiency can improve NPD effectiveness (NPD program performance) and NPD efficiency (i.e., time-to-market), but this relationship is moderated by the effective communication of the new NPD process throughout the entire firm; (2) the process formalization enhances time-to-market and NPD program performance, but its effects are asymmetric and contingent upon the decision concerning the inclusion of ad hoc and extended NPD team members; and (3) the product approval (executive) committee’s (PAC) ineffective communication could alienate team members from NPD efforts while resource availability moderates the influence of PAC’s decision making quality on time-to-market.

Research implications: Future research could examine the PAC decision-making quality as a multidimensional construct, composed of rigor and timeliness dimensions. That way, a more granular understanding of the effect of PAC decisions could be achieved. Future studies could make a clear distinction of the NPD process type in the study context when NPD decisions are examined.

Practical implications: Managers should acknowledge that decision-making processes and their comprehension by worker bees affect an NPD program’s success. It is interesting to note that removing go-no go decisions by the product approval committees at each phase may not lead to faster product development as these executive committee meetings have double entendre: they are not only to get the executives informed and get their signoff, but also is a facilitator to capital approvals. Hence, appropriate measures must be taken to remove or ease all bottlenecks in the NPD process.

Originality/value/contribution: This study uncovers several crucial factors that can improve the effectiveness and time-to-market of an NPD program in B-to-B companies, especially when firms implement a new formalized NPD process.     

Why do buyers share knowledge with suppliers in new product development? current and alternative supplier antecedents

Purpose: Interfirm knowledge sharing has been well recognized to activate the performance and competitiveness improvement of the firms. Previous research has discussed the impacts of current suppliers on buyer–supplier knowledge sharing, but does not explain how this influence occurs. This study aims to disclose the mechanism by which both current and competing suppliers impact buyer–supplier knowledge sharing in buyers’ new product development activities.

Methodology/approach: This study proposed a conceptual model based on relational exchange theory and developed eight hypotheses. Questionnaire survey was used to collect empirical data from R&D staff of Taiwanese electronics firms. This study distributed 1,475 questionnaires and received 246 eligible questionnaires. Structural equation modeling was used to test and verify appropriateness of the proposed model.

Findings: The findings show that current supplier asset specificity positively and directly influences buyer–supplier knowledge sharing in new product development. The current supplier asset specificity also has indirect positive influence on buyer–supplier knowledge sharing in new product development via the mediating effects of buyer trust, satisfaction, and commitment. However, the attractiveness of alternative suppliers only indirectly and negatively affects buyer–supplier knowledge sharing via the mediating effects of buyer trust, satisfaction, and commitment.

Research limitations/implications: This study surveyed the firms in Taiwanese electronics industry. Nevertheless, new product development activities are executed by electronics firms in numerous countries and firms in various industries. For validating the generalization of this study’s results, future research can investigate firms in other industries and countries to verify the proposed model and hypotheses.

Practical implications: Current suppliers’ asset specificity is found to exert more influence on buyer–supplier knowledge sharing than alternative attractiveness. The findings imply that current suppliers should focus on investing specific assets for buyers other than stress the attractiveness and threat of competing suppliers.

Originality/value/contribution: This study initiates to approach the antecedents and influence mechanism of current buyer–supplier knowledge sharing via both perspectives of current and competing suppliers.