Supplier market orientation and accommodation of the customer in different relationship phases

As customers' needs have changed rapidly, market orientation has become a more primary focus of marketing literature. This study explores the strategies market-oriented suppliers use to accommodate customer needs. In addition, because buyer-seller relationships proceed through phases characterized by distinct behaviors, this study explores the relationship between market orientation and accommodation strategies over the course of the buyer-seller relationship lifecycle. The results show that market-oriented firms use flexibility and relationship-specific adaptation as accommodation strategies. Also, three market orientation components (customer orientation, competitor orientation, and interfunctional coordination) relate differently to flexibility and relationship-specific adaptation during the relationship lifecycle. Finally, accommodation strategies significantly mediate the effects of the three market orientation components on customer satisfaction. Thus, market-oriented firms can satisfy their customers and avoid an overreliance on current relationships by emphasizing either flexibility or relationship-specific adaptations that correspond to the lifecycle of the relationship.     

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.     

Towards a better understanding of partnership attributes: An exploratory analysis of relationship type classification

In recent years the creation of partnerships has been espoused by academics and practitioners but despite extensive writing in the area of characterizing partnerships the nature and attributes of partnerships are still only poorly understood. This is due to a lack of empirical testing of the factors that distinguish partnerships from other relational forms and a limited research focus on characteristics that distinguish between polar relationship types. Using a framework developed from the political economy literature this exploratory study draws on an empirical base of 155 supplier questionnaires and uses multiple discriminant analysis to identify attributes of buyer-supplier relationships that most effectively discriminate between relationships classified by suppliers as having limited coordination, being highly coordinated or best described as a partnership. The results indicate that 8 of the 10 attributes of buyer-supplier relationships included in the framework differ significantly across relationship type.     

Relationship stability, trust and relational risk in marketing channels: Evidence from China

This paper provides an integrated framework for examining effects of relationship stability and trust on relational risk and for exploring the moderating effects of guanxi on the relationships between trust and relational risk in marketing channels. The framework is tested with 225 dyads of questionnaires about buyer-supplier relationships in the Chinese household appliances sector. The results indicate that relationship length and dyadic solidarity can reduce the relational risk perceived by buyers through goodwill trust in their suppliers, but can increase the perceived relational risk through trust in their competence. Guanxi helps to weaken the positive relationship between a buyer's trust in suppliers' competence and its perceived relational risk, and dyadic solidarity can directly lower relational risk. This paper makes clear that buyers locked in a stable relationship will face relational risk, and it further identifies the specific variables which impact on the relational risk and the paths from which relational risk comes.     

Relationship quality as a resource to build industrial brand equity when products are uncertain and future-based

This article extends our understanding of industrial branding and the influence of buyer–seller relationships by examining key constructs within an industrial context where products are uncertain and future-based. SEM results elicited from 249 buyer surveys empirically validate satisfaction, trust and commitment as dimensions of relationship quality, and show that buyer–seller relationship quality facilitates direct and indirect seller brand equity accruals. Findings reveal that while focusing on sellers' corporate and product brands is good advice for building buyer–seller relationships, seller resource allocations to these areas should vary depending upon the selected target market segment(s). Findings support that sellers should place more focus on developing quality relationships with buyers than they should in focusing on the non-relational attributes of their corporate brands; however, if sellers choose to bypass building high quality customer relationships, they should instead funnel resources into their product brand offerings. Findings demonstrate that buyers credit their own skills and acumen when evaluating products with which they are confident, and ascribe increased value to the involvement of the seller as their attitude and certainty decrease. These findings provide strategic guidance to the sellers of uncertain and future-based industrial products.     

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.     

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 effects of market orientation on relationship learning and relationship performance in industrial marketing: The dyadic perspectives

From dyadic perspectives, this study explores the effect of market orientation on relationship learning and relationship performance and the moderating effect of relationship quality in Taiwan manufacturing industry. The results reveal that: (1) both customer market orientation and supplier market orientation are positively related to relationship learning; (2) relationship learning is positively related to relationship performance; (3) both customer and supplier market orientation has positively interaction effect on shared information and negatively interaction effect on sense-making activities; and (4) trust of relationship quality has moderating effect on the relationship between customer market orientation and relationship learning.     

Understanding attractiveness in business relationships — A complete literature review

The concept of attraction has received surprisingly little attention within business relationship research. Yet, recently, more and more authors have argued that attraction may contribute to the motivation and willingness of a buyer and supplier to engage in and develop a business relationship. However, the concept of attraction is relatively new and there have been diverse interpretations of it. This literature review collates those interpretations with the aim of enhancing current understanding and creating fundamental knowledge of the current streams of literature on the concept. In examining how the concept has been investigated, the paper aims to establish the direction that the understanding and use of the concept of attractiveness may take in the future in the context of business research. The literature review indicates that attraction has been used in three research areas to explain or resolve a particular construct: 1) attraction in the development of buyer–supplier relationships, 2) customer attractiveness to suppliers, and 3) attractiveness in portfolio and key account management. This literature review contributes to the understanding of how knowledge of the power of attraction could enrich the theory and practice of business relationships.     

Are key account relationships different? Empirical results on supplier strategies and customer reactions

In this paper, the authors analyze 91 key account relationships and 206 ordinary supplier-buyer dyads regarding differences in suppliers' relational behaviors and customers' perceptions of relationship quality (satisfaction, trust, and commitment). The results suggest that while - as compared to ordinary relationships - suppliers put significantly more effort in “value-creating behaviors” in key account relationships, they do not modify their “value-claiming behaviors” in those dyads. On the customer side, suppliers' increased value creating activities lead to increased commitment. However, customers are neither more satisfied, nor do they trust their suppliers more when they receive key account status.     

Business marketing and the ethics of gift giving

This paper focuses on the common though ethically problematic practice of suppliers providing gifts and other benefits to buyers in a business-to-business context. It is argued that contrary to the claim that the boundary between acceptable and unacceptable practices is blurred when there is a focus on developing mutually beneficial, long-term relationships between suppliers and their business customers, there is a straightforward decision making procedure that can be applied. Central to this decision making procedure is the concept of a conflict of interest. While all organisations have very good reasons to address the issue of gifts and benefits, in a relationship marketing context there is even more reason to do so.     

Market and supplier characteristics driving distributor relationship quality in international marketing channels of industrial products

Although we are beginning to comprehend the fundamental importance of relationship quality in interorganizational exchange, a relatively small, but growing, body of literature that has not kept pace with the tremendous growth in global channel transactions has been devoted to the development of cross-border relationship quality. This study addresses this gap in the literature by investigating the extent to which certain market and exporter characteristics affect the development of relationship quality in the context of importing distributors trading with exporting manufacturers of industrial products. Relationship quality is viewed as a higher-order construct composed of trust, commitment, and satisfaction. Findings reveal that psychic distance is related negatively to relationship quality, while transaction-specific investments and role performance are associated positively with relationship quality. No link is found between environmental uncertainty and relationship quality. Managerial implications of the findings are considered and limitations along with future research directions discussed.     

Unlocking the link between relationship duration and product De-listing in retail channels: The role of market orientation and brand diffusion

The literature on retailers' range rationalization is limited and focuses primarily on the consequences thereof from a consumer perspective. Drawing on the extant research on buyer-supplier relationships, brand management, and market orientation (MO) in business-to-business (B2B) markets, our research explores the antecedents of product de-listing in retail channels. It unlocks the link between relationship duration and product de-listing by examining the role of MO and brand diffusion. Using a combination of primary data with both objective and perceptual measures and proprietary objective data from a sample of suppliers to a large British supermarket, we find that the supplier's brand diffusion is an essential means of utilizing relationship duration between suppliers and retailers to reduce product de-listing in retail stores. Additionally, we find that MO plays opposite moderating roles in the links between relationship duration, brand diffusion, and product de-listing. It strengthens the negative influence of relationship duration on product de-listing, while it weakens the positive influence of relationship duration on brand diffusion. Our study contributes to research on marketing channels and B2B marketing by highlighting the limitations of relational view theory and unveiling the role of brand diffusion and MO in explaining the outcomes of buyer-supplier relationships in retail channels.     

Capturing value creation in business relationships: A customer perspective

Collaborative relationships in business markets are of growing importance to customers and suppliers alike. Customers need to decide whether to invest in a new supplier relationship, to maintain and develop a valued relationship, or to divest from a low-value relationship. Suppliers, in turn, face growing commoditization of products and seek to differentiate themselves through relationships. The measurement of value creation in buyer-seller relationships is still in its infancy, and a sound understanding of how firms create and deliver value in business relationships is needed. Emerging studies investigate relationship value based on dimensions derived from theory and lack a managerial perspective. Therefore, the present research explored relationship value from a grounded theory perspective. In-depth interviews with purchasing managers identified eight value drivers in manufacturer-supplier relationships. Implications for the measurement of the concept are discussed, and directions for further research are suggested.     

More is not always better: The impact of relationship functions on customer-perceived relationship value

Customer–supplier relationships have been promoted as a source of value for customers and as a way for suppliers to differentiate. Customer-perceived relationship value (i.e., a customer's overall assessment of the benefits and sacrifices of a given relationship with a supplier) is driven by relationship functions (i.e., the co\ntributions a supplier makes to a customer's value-creation processes). Earlier research categorizes relationship functions into two groups: direct, operation-related functions and indirect, change-related functions. This research finds that indirect functions have less impact than direct functions. Given the widely discussed advantages of supplier involvement in customer innovation, and the importance of information, access to market actors and motivation, this study analyzes why change-related functions have less of an impact than operation-related functions. The empirical results reveal that change-related relationship functions have a non-linear, inverted u-shaped impact on relationship value, and that the degree of customer innovativeness moderates this impact. Thus, while an analysis of all relationship functions is necessary, suppliers wishing to optimize business relationships should pay particular attention to customer innovativeness. The non-linear impact of change-related relationship functions gives rise to several interesting avenues for further research.     

Key supplier relationships and product introduction success: The moderating roles of self-enforcement and interdependence between buyer and supplier

This study investigates the extent to which strong relationships between a firm and its key suppliers promote effective new product introduction. Building on the relationship marketing literature, we identify self-enforcement and interdependence as two contingent relational variables that influence the strength of the buyer–supplier relationship. We use data from a survey of 2331 manufacturing firms in China to test the hypotheses. The results show that strong relationships with key suppliers correlate with product introduction success and that this positive effect is contingent on the two relational variables identified. Self-enforcement strengthens the utility of strong supplier relationships for these Chinese manufacturers, and buyer–supplier interdependence enhances this relationship.     

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.     

The involvement and influence of emotions in problematic business relationships

This paper discusses emotions as mediators in business-to-business relationships which is an understudied topic. Yet within consumer marketing, emotions have been widely studied, and calls have been made for business relationship research to take account of managers' emotions. This study addresses the gap by firstly establishing the relevance of emotions in problematic business relationships and secondly showing how emotions are a major component in determining the outcomes of the problematic relationships. Interview data in the form of narratives describing problematic relationships is analyzed and identifies both the emotions experienced by participants and their role in the future course of the business relationship.     

The role of contextual factors in relationship commitment of buyers to foreign suppliers: A survey of Korean importers

Businesses engaged in the importing of different products and services encounter suppliers with wide ranging backgrounds in terms of their size, cultural experiences, and duration of relationship. In this study, we investigate the effects of such contextual variables on the importers' relationship commitment to their foreign supplier. The hypotheses are tested using data collected from 144 Korean importers. Results indicate that both cultural similarity and type of product (consumer vs. industrial) do not impact the Korean importers' relationship commitment. However, their interaction is significant; cultural similarity matters for consumer products but not for industrial products. It is found that Korean importers tend to be more committed to larger suppliers and to those exporters with whom they have been having longer relationships. Implications for managers, limitations and suggestions for future research are provided.     

A comparison of manufacturers and financial services suppliers' and buyers' use of relationship management methods

Suppliers and customers work within a network in which they have a vast array of diverse relationships they have to manage [Easton, G. (1992). Industrial networks: A new view of reality. London: Routledge; Turnbull, P. W., & Moustakatos, T. Int. J. Bank Mark. 14 (1996) 26]. Past research in relationship portfolio analysis [Turnbull, P. W., & Cunningham, M. T. (Eds.). (1981). International marketing and purchasing: A survey among marketing and purchasing executives in five European countries. London: Macmillan Press; Fioca, R. Ind. Mark. Manage. 11 (1982) 53; Campbell, N. C. G. & Cunningham, M. T. Strateg. Manage. J. 4 (1983) 369; Reicheld, F. F. & Sasser W. E. Harv. Bus. Rev. (1990) 105; Krapfel, R. E., Salmond, D., & Spekman R. Eur. J. Mark. 25 (1991) 72] has sought to enable companies to allocate resources efficiently and effectively to different kinds of relationships. However, little research has been carried out to investigate how this concept can be applied across sectors, across functions, across manufacturing and financial services, and across suppliers and buyers. This research explores three methods of managing relationships: formal, documented systems, personal judgement, and meetings. The perceived usefulness of each method and combination of methods used varied across industrial sectors and functions. All three methods were used by the majority of financial suppliers and buyers and manufacturing buyers while manufacturing suppliers tended to use personal judgement and meetings. Overall, meetings were perceived as the most useful method for managing relationships. Formal, documented systems were generally perceived as the least useful method by all of the groups except the financial services buyers. Since relationship portfolio analysis is generally perceived as being less useful than personal judgement and meetings, researchers must reexamine the models put forward to improve their applicability and usefulness in industrial settings.