How does Relationship Management Infrastructure influence performance?

The contribution of Relationship Management Infrastructure (RMI) to positional advantage, customer, market and financial performance was tested in major, organisational customer relationships through structural equation modelling. The results support a direct, significant contribution of RMI to positional advantage, however the anticipated direct contribution of RMI to financial performance resulting from efficient and productive relationship infrastructure was not supported. The contribution of RMI to the variance in customer, market and financial performance was indirect. Explanations of these findings are proposed.     

Reflection on Contemporary Issues in Relationship Marketing: Evidence from a Longitudinal Case Study in the Building Materials Industry

This article examines a number of issues in relationship marketing through the perspective of the competence-based view of the firm. It draws on data from a 53-year case history of a firm in the Irish building materials industry. Relationship marketing emerges from this data as a significant market-related competence helping the firm to enjoy a preeminent position in the marketplace over five decades.

Discussion focuses on the dynamic nature of relationship marketing in the company – how the intent, thrust and characteristics of relationship marketing evolved over 53 years and five eras of the firm's history. In this context, customer loyalty is observed to have an enduring and at times idiosyncratic character. Further, relationship marketing is found to be enmeshed in other competences and capabilities of the firm, and to have an important tacit dimension. Finally, aspects of best practice in the firm are considered in the light of contemporary conceptualisation about relationships and marketing.     

The antecedents of relationship commitment in the management of relationships in business-to-business (B2B) financial services

The importance of commitment in the management of long-term marketing relationships is well accepted in the marketing literature. There is, however, uncertainty regarding the antecedents of relationship commitment. The study on which this paper is based focused on four possible antecedents of relationship commitment, namely trust, communication, shared values and attractiveness of alternatives.

The study was conducted in the South African business-to-business (B2B) financial services industry. A web-based approach was used to survey 300 relationship managers, while data from 400 B2B clients were collected using a telephone survey. The relationship-manager data were analysed with regression analysis, while structural equation modelling (SEM) was used to analyse the client data.

The uniqueness of the study is the simultaneous consideration of the perceptions of both relationship managers and clients. As far as could be ascertained, a study of this nature has not yet been conducted in the B2B financial services industry. Based on the perceptions of both relationship managers and clients, the contribution of this study is the confirmation of the important roles of trust, communication, shared values and attractiveness of alternatives in the management of commitment to a relationship from both a customer and a provider perspective.     

A market-level model of relationship regulation

This research examines the moderating effects public policy has on relationship strength in a relationship marketing context. Prior research suggests that many positive outcomes emerge from forming inter-firm relationships, yet few examine potential negative outcomes such as anti-competitive behavior. This paper examines what happens to both positive and negative outcomes, when close inter-firm relationships are regulated directly by public policy. It is found that regulations intended to protect consumers and small retailers from anti-competitive behavior are effective in reducing the negative outcomes of such behavior, yet they simultaneously have an unintended effect of dampening the positive outcomes that close inter-firm relationships provide.     

A Cultural Perspective of Relationship Orientation: Using Organisational Culture to Support a Supply Relationship Orientation

Relationship marketing theory maintains that firms can engage in a multitude of relationships oriented towards key stakeholders such as customers and suppliers. This study explores one type of relationship orientation from the viewpoint of the relationships firms have with their suppliers, referred to as a Supply Relationship Orientation (SRO). We take an organisational culture perspective positing that an SRO is manifested through the basic assumptions, values, artifacts and behaviours of the organisation and introduce a measurement tool for SRO. Based on a study of buyers' perceptions of their firms' relationship orientation towards suppliers, the results indicate that an organisational culture perspective of relationship orientation appears valid and enhances previous studies of relationship orientation by providing support for being culturally embedded     

The Role of Value Change Management in Relationship Dissolution: Hygiene and Motivational Factors

Responding to client needs is a central tenet of marketing, and thought vital to relationship renewal in the business-to-business context. We explore this issue by examining whether supplier response to client requests for value change is sufficient motivation for client firms to renew relationships with advertising agencies. Based on 17 dyadic interviews we find that reacting to client initiated value change is a relationship hygiene factor that does not of itself encourage renewal as it fails to evolve the structure of the relationship over time, and leads to client perceptions of supplier complacency. Although firms must respond to customer requests for value change to avoid dissatisfaction developing in the relationship, they must also actively seek to improve the relationship through driving market actions. We identified these as supplier initiated value change (SIVC), contributing to the emerging literature on value change by identifying a more vital component of managing client relationships to avoid dissolution and enhance the prospects of renewal.     

Drivers and outcomes of importer adaptation in international buyer–seller relationships

Notwithstanding the growing literature on international buyer–seller relationships, limited attention has been given to the crucial role of adaptation in enhancing relationship performance, especially from the standpoint of the importer. This article reports the findings of a study, conducted among 167 British importers, focusing on the factors that drive their adaptation in the working relationship with Western European or U.S. export manufacturers, as well as its resulting performance outcomes. It was revealed that trust positively affects commitment and cooperation, while communication positively influences cooperation but has no effect on commitment. Both commitment and cooperation subsequently lead to importer adaptation. It was also found that adaptive importers tend to be more conducive to effective and efficient relationship outcomes. Finally, the study confirmed that both the links between adaptation and relationship effectiveness and adaptation and relationship efficiency are moderated by both the level of dependence on and distance from the exporter.     

The meaning of commitment in professional service relationships: a study of the meaning of commitment used by lawyers and their clients

Several authors have identified the importance of commitment in successful business relationships. However, few studies have considered the meaning of commitment, especially within the context of customer-supplier relationships.

Most studies of commitment within the marketing literature use existing conceptualisations developed within the psychology and organisational behaviour literatures. The purpose of this paper is to explore the meaning of commitment in a customer-supplier relationship context, and to compare this with traditional conceptualisation of commitment.

This study investigates the meaning of commitment used by both lawyers and their clients, within the context of their relationship. The findings show that the meaning of commitment used in professional relationships may be more complex than its traditional conceptualisation and should be extended to include at least three additional components including: 'partnership commitment', 'impression management commitment' and 'personal commitment'. It is argued that it is inappropriate to 'borrow' the conceptualisation of the construct of commitment from other disciplines, without considering the market-based context in which it is used. Implications for professional service relationships include that professionals and clients would benefit from sharing a similar meaning of commitment and this meaning may be influenced by the culture, systems and processes of their organisation.     

Using guanxi-style buyer-seller relationships in China: Reducing uncertainty and improving performance outcomes

Recent marketing literature has recommended that companies employ either long-term relationship marketing or short-term transactional approaches to buyer-seller relationships depending on the value of the customer to the company. This article found that in China, guanxi-style buyer-seller relationships similar to relationship marketing were strongly related to reduced levels of perceived uncertainty about the business environment and a variety of improved performance outcomes. The use of transactional relationships was related to higher uncertainty and lower performance. The use of gifts and favors seemed more characteristic of transactional relationships and were not related to positive outcomes. Both quantitative evidence from American sellers and qualitative evidence from Chinese buyers supported these conclusions. It is argued that guanxi-style buyer-seller.     

Antecedents and Performance Outcomes of Strategic Environmental Sourcing: An Investigation of Resource‐Based Process and Contingency Effects

This study develops an understanding of the antecedents and performance‐related consequences of strategic environmental sourcing (SES). Institutional pressure and the firm's environmental engagement serve as antecedents to SES, with performance dimensions including environmental, product development, and product quality performance. While direct relationships between these dimensions and SES have been studied in prior work, the present research adds greater specificity and depth by investigating process and contingency effects on product‐level outcomes. The resource‐based theory provides the theoretical motivation for these relationships, which are tested via survey data collected from sourcing professionals in the U.S. manufacturing industry. The results emphasize environmental engagement as an important process element between institutional pressure and SES, and highlight the ability of institutional pressure to strengthen the relationship between environmental engagement and SES. Environmental performance was found as an influential conduit in the relationship between SES and both product quality and product development performance, with SES also serving as a contingency.     

The relationship between perceived training opportunities,work motivation and employee outcomes

The purpose of this study was to explore alternative relationships between training opportunities and employee outcomes. A cross‐sectional survey of 343 trainees from a broad range of Norwegian service organizations showed that the relationship between perceived training opportunities, and both task performance and citizenship behaviors were fully mediated, and that the relationship between perceived training opportunities and turnover intention was partially mediated by employee intrinsic motivation. In addition, intrinsic motivation was found to moderate the relationship between perceived training opportunities and organizational citizenship behaviors. The form of the moderation revealed a positive relationship for those with high intrinsic motivation. In sum, the variables included as predictors in our study explained 13 per cent of the variance in task performance, 19 per cent of the variance in organizational citizenship behavior and 24 per cent of the variance in turnover intention. Implications for practice and directions for future research are discussed.     

Value dimensions and relationship postures in dyadic 'Key Relationship Programmes'

Business-to-business marketing is often concerned with the way in which companies manage strategically important relationships with their counterparts: their Key Relationship Programmes (KRPs). These relationships can be managed through the implementation of specific managerial and organisational structures, commonly implemented via Key Account Programmes (on the supplier side) or Key Supplier Programmes (on the customer side). Underlying this managerial process is an implicit assumption that these important relationships bring some form of additional value to one or both parties involved. However, a dyadic view of how this value is created and shared between the parties remains an under-researched area. In this conceptual paper, we use the multi-faceted value construct introduced in Pardo et al. (2006) and posit that the buyer's or seller's value strategies can be best understood as being internally, exchange, or relationship based. This in turn allows us to analyse the value gained as being the outcome of one of nine generic key relationship postures within any dyadic KRP. We focus on an analysis of so-called "managed" relationship postures and identify a number of dyadic activities and competencies that we hypothesise are important in managing such KRPs, and which can form the basis for further empirical research.     

Relationship performance dimensions of buyer–supplier exchanges

Whilst there is much research material on buyer and supplier performance assessment and management, a relationship perspective can bring an added dimension, especially to the performance of close, mutual relationships. This article aims to bring a relationship performance understanding to the study of buyer–supplier exchange. Unfortunately, business-to-business relationships are assumed to enhance performance but what little research has been conducted is limited to a few dimensions reflecting a narrow theory or practice assumption. To remedy this we investigate a relationship performance definition that incorporates both non-financial and financial dimensions. The results are developed from seven qualitative interviews followed by a postal survey incorporating the views of 200 industrial buyer respondents in the UK. To examine the relationship among the performance variables, factor analysis was conducted on 21 dimensions of performance included in the research. On this basis, key dimensions of relationship performance are grouped and implications drawn for defining relationship performance and its measurement. The authors conclude that it is meaningful to take a relationship performance position when managing buyer–supplier interactions. However, not all the dimensions identified may be available to all types of relationships.     

Outcome quality of small- to medium- sized enterprise–based alliances: The role of perceived partner behaviors

Proponents of transaction cost theory have assumed that alliance formation is motivated by environmental uncertainty, with the structure and outcomes of alliance relationships being determined by the costs versus benefits of opportunism on the part of alliance participants (Williamson 1985; Zaheer and Venkatraman 1995). Williamson argued that cooperative relationships driven by perceived efficiency are inherently prone to opportunism or “self-interest seeking with guile” (1975, p. 6). In alliance relationships, opportunism generally takes the form of negative departures from the behavioral norms established for the alliance and is usually motivated by the firm leader’s desire to improve the firm’s position, regardless of the cost to the alliance (Parkhe 1993a). The traditional focus of transaction cost theory has been on the norms established by the formal alliance relationship. These contractual mandates encompass both goal-based and relationship-based expectations. Failure to meet these types of expectations significantly, but not completely, explains the quality of outcomes for alliance relationships.A growing body of research on social control theory suggests that the social embeddedness of the alliance relationship may also establish behavioral norms against which opportunistic departures may be judged (Ouchi and Parkhe). Such norms are extracontractual or taken-for-granted expectations established by both the prior experience of the firms’ leaders and the placement of the firms’ alliance relationships within the network of interpersonal relationships maintained by the firms’ leaders. This study explores the relative impact of negative departures from both contractual and extracontractual behavioral norms on the quality of alliance outcomes, while controlling for a wide range of environmental and firm-specific factors suggested to have an impact on alliance outcome quality.Norwegian manufacturing firms that met the study’s size criteria and belonged to any one of 10 industry types were surveyed. From a list of over 7,000 small- to medium-sized enterprises (SMEs), we randomly selected and mailed surveys to the key decision leaders of over 2,500 firms, ultimately identifying, of the 433 (17.6%) owners and general managers responding, 252 (58%) that maintained alliance relationships.The results of this study challenge several assumptions regarding the determinants of alliance outcomes. A number of resource- and environment-based factors, including the firm’s industry, size, and financial strength, are not found to significantly influence alliance outcomes. The financial return provided by the SME’s alliance relationships, as an indicator of goal-based determinants, was found to be the most important factor related to outcome quality, but the results also suggested that contract noncompliance and the perceived behaviors of the SME’s alliance partners are significant as well. Additionally, the notion that SME-based alliance relationships are generally marked by assumptions of trust rather than opportunism was supported. When partner behaviors are seen or perceived to be inconsistent with either contractually mandated or socially obligated expectations, the outcomes of those relationships are negatively effected, even when the financial goals have been met. An additional finding of this study was that firm leaders make judgments regarding the quality of alliance outcomes in light of their cumulative experience with alliance relationships.     

Toward an Understanding of Internet Adoption at the Marketing/Entrepreneurship Interface

The aim of this research is to explore those competencies within the entrepreneurial small firm, (ESF), which will determine if it is to adopt and fully exploit the potential of the Internet in developing and maintaining relationships with its customers. A key relationship, and one that is a major focus of much of the relationship marketing literature, is that between the supplier, in this case the ESF, and the customer or buyer. In this research, using a qualitative methodology, the authors examine the nature and character of the challenges faced by 30 entrepreneurial individuals in their relationship-oriented utilisation of the Internet. As a first stage of a larger research programme it explores the competencies likely to determine the extent of Internet adoption. The paper offers insights to a more complete competency spectrum for Internet marketing in the ESF.     

Technological turbulence, supplier market orientation, and buyer satisfaction

The channel literature suggests that building a close relationship with key partners is one of the key strategies that channel members use to overcome the challenges of a changing environment. However, such a strategy may be ineffective when high technological turbulence exists in the buyer's market. This study focuses on the buyer's perspective in channel relationships and examines the buyer's satisfaction with outcomes resulting from engaging in relationships with a supplier. The results show that a buyer's performance is enhanced when a buyer develops a close relationship with a supplier whom it perceives to be market oriented but that a close relationship becomes detrimental to performance when technological turbulence increases. These findings suggest that managers need to be aware of the effect of technological turbulence and be alert in managing close relationships even with market-oriented suppliers.     

The Effects of the Economic Downturn on Interdependent Buyer–Supplier Relationships

The management of strategic buyer–supplier relationships is a critical concern for sourcing managers. The selection of key suppliers and how relationships with these suppliers are managed and incentivized can dramatically affect the buying company's performance. While the extant literature focusing on industrial buyer–supplier relationships is significant, the severe economic downturn beginning in 2008 tested buyer–supplier relationships in unprecedented ways, yielding new insights. The research presented in this paper uses dyadic cases to investigate transformations within industrial relationships during the economic downturn. Propositions are formulated that focus on why and how firms responded to the downturn. Three primary types of relationships are identified. The results indicate variation in the ways buying companies managed their key supplier relationships during the downturn: some firms behaved more cooperatively and found ways to jointly confront the effects of the downturn, while others responded by behaving competitively to maximize their individual outcomes. The results further suggest that researchers need to revisit existing models of relationship development and dissolution to understand how these relationships evolve or devolve. The research also raises questions about the value of physical and human asset specificity, and social investments in curtailing opportunistic behavior in times of severe economic stress.     

Making the most of group relationships: The role of gender and boundary effects in microcredit groups

Relationships and networks are important for a range of entrepreneurial outcomes. However, gender scholars' efforts to compare networks across genders rarely extend to provide empirical evidence for the link between networks and performance. Building on expectation states theory and network perspectives, we examine between- and within-gender differences in the network size–performance relationship, highlighting the conditions under which some females leverage their relationships for firm performance better than others. Using data collected from microcredit entrepreneurs in Kenya, we find that the number of within-group ties positively influences firm performance but more positively for male entrepreneurs. For female entrepreneurs, this relationship is contingent on both their individual and their group's characteristics. We discuss implications and future research directions for the gender, networks, and microcredit literatures.     

Relationship Value Management: Exploring the Integration of Employee,Customer and Shareholder Value and Enterprise Performance Models

Value as a theme in the relationship marketing literature is gaining increasing attention. In particular, the synthesis of value concepts with a multi-stakeholder approach to relationship marketing has been the subject of recent interest. Building on earlier work, this article explores how key elements of relationship value can be integrated through a focus on three key stakeholder groups: employees, customers and shareholders. The linkages between employee value, customer value and shareholder value, including the research on the service-profit chain, are explored. The paper also explores the extent to which linkage models or enterprise performance models, which integrate these components of value, have been adopted by organisations. Two case studies are used to illustrate the practical application by organisations seeking to develop enterprise performance models.     

Impact of Traditional Chinese Culture on Business-to-Business Relationship Marketing and Service Firm Performance

ABSTRACT

Purpose: This work addresses the mixed findings in relationship marketing studies regarding the importance of traditional culture-level (i.e., interpersonal) relationships on service firm outcomes.

Methodology/approach: This article leverages customer relationship marketing (CRM) theory to advance a framework for understanding the causal relationship between the Chinese cultural worldview and relationship marketing in order to better predict firm performance.

Findings: The author suggests that five major Chinese cultural characteristics—iren-qing, wa-pao, mianzi, chaxu-geju, and collectivism—can qualify the business-to-business (B-to-B) relationship building process and impact the effectiveness of interpersonal and/or group relationships on service firm outcomes.

Research implications: The study’s framework suggests that Chinese cultural characteristics, universal concepts manifest in the activities of Chinese society and organizations, have a positive effect on customer relationship marketing. Chinese culture characteristics can be used to generate excellent relationships with customers and thus create a consumer preference for certain companies and drive service marketing repurchase.

Originality/value/contribution: This study’s theoretical framework (a) distinguishes between Chinese cultural characteristic and relationship marketing relationships; (b) suggests that Chinese cultural characteristics and customer relationship marketing have a positive and substantial effect on service firm performance and that Chinese cultural characteristics are related to customer relationship marketing in their effect on service firm performance; and (c) provides managerially relevant guidelines for strategic sales planning.