A relationship-management assessment tool: Questioning, identifying, and prioritizing critical aspects of customer relationships

With customer-relationship management (CRM) no longer a buzzword among trendsetters, organizations in all types of industries initially rushed to embrace it. Although a seductively attractive concept, the implementation of CRM proved difficult, however, and organizations are struggling with realizing their vision of a CRM organization. To help managers assessing the stage of relationships between their organization and the organization's business customers we consider the automotive industry. Based upon our case organization and its relationships with numerous business customers we develop a practical tool to question, identify, and prioritize critical aspects of customer-relationship management. First, we identify key areas in CRM. Secondly, we investigate how the chosen case organization has managed each of these key CRM areas over a broad range of business-customer relationships. Thirdly, we acknowledge that many organizations simultaneously have different types (transaction-relationship continuum) of business customers. We finish the article with a discussion of the study's limitations, and suggest avenues for future research.     

Suspicion: Its sources, means of control, and effect on interorganizational relationships

Suspicion in the interorganizational relationship literature has been associated with relationship decay but this literature fails to capture the value of suspicion in maintaining relationships. The authors offer an inventory of propositions, suggesting that the level of suspicion determines whether it has beneficial or harmful effects on channel relationships. Support for many of these propositions is based on a unique attribute of suspicion: Suspicion serves as an antidote to the fundamental attribution error, or the tendency to take behavior at face value without allowing for situational influences. Such an attribute suggests suspicion should have an important influence on interorganizational relationships. Specifically, the authors propose that suspicion can be beneficial at moderate levels, but harmful at very low or high levels. Of particular interest to practitioners, we propose some methods for controlling suspicion.     

Changes in sales call frequency: A longitudinal examination of the consequences in the supplier-customer relationship

Sales calls are one of the most valuable and expensive resources available to industrial sales managers. The main purpose of this research was to look at the relationship between an increase in sales call frequency and some important outcomes in the buyer-seller relationship. To do so, we adopted a longitudinal research design where data from 357 customers of one industrial supplier were obtained over a two-year period of time. Results indicated that an increase in call frequency has a positive effect on sales volume, perceived service quality, perceived value for money and overall customer satisfaction. Furthermore, these effects tend to diminish as relationships become longer, and are stronger at higher levels of hierarchy in the buying company.     

A classification of business-to-business buying decisions: risk importance and probability as a framework for e-business benefits

Business-to-business (B2B) markets have been considered an attractive e-business venue for the realization of cost reduction and exchange creation utilities. However, as marketers have long argued, there are different types of buying situations, and the benefits sought in each may vary substantially. The present work builds on the thinking of previous industrial buying typologies by integrating perceived risk concepts into the business buying decision. Specifically, we develop a classification grid of industrial buying situations and then explicitly link likely e-business benefits to the various situations. The proposed framework holds implications for management and research related to supply chain relationships.     

A bittersweet phenomenon: The internal structure, functional mechanism, and effect of guanxi on firm performance

This paper explores the mechanism of guanxi and how it affects firm performance from a constructive perspective. It aims to contribute to the extant literature by investigating the negative side of guanxi and expounding on how guanxi functions, adversely impacting firm performance. Specifically, as guanxi grows, its negative effect leads to erosion of firm performance. Further, interorganizational trust and relationship-specific investment, as two potential mediators, can enhance and amplify the eroding effect of guanxi on firm performance.     

The Effect of Industry, Region, and Time on New Business Survival – A Multi-Dimensional Analysis

We analyze the effect of industry, region, and time on new business survival rates by means of a multi-dimensional approach. The data relate to West German districts in the 1983–2000 period. The survival chances of start-ups tend to be relatively low in industries characterized by a high minimum efficient size and high numbers of entries. We find that regional characteristics play a rather important role and that introducing the regional dimension leads to considerable improvements of the estimation results. The significance of the regional dimension is also reflected in a remarkably high level of neighborhood effects.     

Exit and Survival in a Concentrating Industry: The Case of Daily Newspapers in the Netherlands

This paper studies the effects of aggregate, industry-, and firm-specific factors on the exit hazard rates in the market for daily newspapers in the Netherlands from 1950 to 1996. We present a brief overview of the exit literature. On the basis of the existing empirical evidence, we decided to specify and estimate exponential and piecewise constant hazard rate models. We find that exit hazard rates of daily newspapers depend on the circulation size, ownership, and number of incumbents. Moreover, the effects are time-dependent. We do not find any significant effect of macroeconomic factors.     

Network governance: A cross-level study of social mechanisms,knowledge benefits,and strategic outcomes in joint-design alliances

Drawing on multiple-level embedded case study research of eight dyadic joint-design alliances and 14 collaborative ventures within them, this study sheds light on how value, in the form of common and private benefits, is created in interorganizational relationships. To do so, I focus on network governance (i.e., interorganizational coordination based on social networks) and its outcomes. As a result, I advance a cross-level model of how a system of reciprocally influencing network-level (i.e., structural) and dyad-level (i.e., relational) social mechanisms affects the propensity of allied organizations to engage in knowledge-intensive activities that yield considerable knowledge-based benefits and strategic outcomes at the alliance and firm levels. I conclude that simultaneous consideration of structural and relational embeddedness can enrich our understanding of network-based forms of organization and their impact on the outcomes of interorganizational cooperation. Although the system of social mechanisms needs to be understood as an interconnected whole, practicing alliance managers are advised to leverage different social mechanisms depending on the specific knowledge benefits they intend to achieve.     

Firm enablement through outsourcing: A longitudinal analysis of how outsourcing enables process improvement under financial and competence constraints

The dominant view is that outsourcing is driven by efficiency considerations. We demonstrate that a different path to outsourcing originates from critical internal resource shortages. These shortages pose a critical dilemma; on the one hand outsourcing is a reasonably durable approach to solving resource shortages. On the other hand, the same resource shortages complicate the management of outsourcing and may create knowledge and evaluation problems. We empirically examine this dilemma and thereby add to the limited work on the enabling effects of outsourcing under resource constraints. We employ two rich and unique panel datasets of Australian firms observed over five-year periods, to test dynamic change models if firm-level financial and competence constraints induce outsourcing, and if this in turn enables internal process improvement. The results show that outsourcing indeed is associated with both financial and competence constraints, although the impact of these constraints differs over time. In turn, we find that increased outsourcing relates positively to contemporaneous and future process improvement. These findings thus shed a positive light on how outsourcing can enable firms to overcome constraints and realize internal process improvement.     

Assessment and redirection of longitudinal analysis demonstration with a study of the diversification and divestiture relationship

The authors review the application of longitudinal analysis in strategic management research and show that how such analysis is conducted has implications for empirical results and theory development. A content analysis of 203 longitudinal strategic management studies reveals that most researchers have not (1) tested and controlled for violations in the data assumptions underlying longitudinal analysis or (2) tested the stability and form of the empirical relationships over time. Implications of these findings are demonstrated with analyses of the diversification and divestiture relationships of 180 Fortune 500 companies over the period 1985–88. The results show that empirical results, theoretical development, and practical applications can vary on the basis of how longitudinal analysis is performed. Suggestions for the use of longitudinal analysis in strategic management research are offered. © 1997 by John Wiley & Sons, Ltd.     

Control-trust interplays and the influence paradox: A comparative study of MNC-subsidiary relationships

This study focuses on the interplay and possible coexistence of control and trust when influencing others and when being influenced. The paper presents an analysis of change processes whereby an actor becomes ‘a trusted influenced other’. This occurs due to the controls that take place, rather than despite of these. It is suggested that intended purpose and perceived legitimacy need to be considered, as well as the type and level of control. Moreover, imbalanced interactions whereby the other actor is prevented from becoming a source of influence may negatively impact the overall development and exploitation of knowledge. A second dimension in the studied relationships is when the other becomes ‘a trusted source of influence’, not only a ‘trusted influenced other’.     

The impact of mandatory trans fat labeling on product mix and consumer choice: A longitudinal analysis of the U.S. Market for margarine and spreads

The impact of changes in food labeling policy on food consumption depends on how market participants—both firms and consumers—react to the changes across all products in the market. We investigate how both responded to the U.S. Food and Drug Administration’s 2006 rule mandating that the quantity of trans fat in food products be separately labeled on the mandatory Nutrition Facts Panel across an entire differentiated product category. Using a longitudinal data set tracking both product offerings and consumer purchases in the market for margarine and spreads for over a decade, we analyze how product mix and consumer purchase behaviors were influenced by the new regulatory requirement. We find that the number of products bearing voluntary “trans fat free” labels increased after the labeling regulation was implemented. However, a large number of the newly introduced products exited the market within five years. As a result, the FDA’s 2006 rule had a stronger short-run than long-run effect on product offerings. Even after the introduction of additional “trans fat free” labeled products, such products remained only a small percentage of margarine and spreads product offerings, increasing from a pre-regulation level of 2.3% of the market to a peak of 6.5% in 2007 before dropping to 3.1% by 2011. In addition to firm response, we examine demand-side reactions to the 2006 rule and find that consumers significantly increased their expenditures on “trans fat free” labeled products soon after the labeling changes were implemented, increasing from about 1.2% of the market in 2001 to a peak of 5.9% in 2007, before returning to 1.8% in 2011. We further explore variations in responses across different demographic characteristics. Although long-run effects are small, the market for “trans fat free” labeled margarine and spreads settled into a new equilibrium with a somewhat higher level of products in the market than prior to the 2006 rule taking effect and a somewhat higher share of expenditures in the category. Overall, our category-wide analysis of both firm and consumer behavior indicates that the effects of the labeling policy change were smaller in the longer run in this market than would be indicated by an analysis of only new product introductions in response to the policy change.     

Social networking relationships,firm‐specific managerial experience and firm performance in a transition economy: A comparative analysis of family owned and nonfamily firms

The effect of social networking relationships, firm‐specific managerial experience, and their interactions on performance between family owned and nonfamily firms are studied. Using data from 106 organizations in Ghana, the findings show that family owned firms benefit more from networking relationships with bureaucratic officials than do nonfamily firms. However, nonfamily firms benefit more from networking relationships with community leaders and firm‐specific managerial experience than do family owned firms. Networking relationships with politicians impede performance for nonfamily firms. Nonfamily firms are better able than family owned firms to use their firm‐specific managerial experience to manage the resources and capabilities obtained from networking relationships with community leaders to create value. Moreover, firm‐specific managerial experience attenuates the detrimental effects of networking with politicians for both types of firms. Copyright © 2012 John Wiley & Sons, Ltd.     

Suppliers' roles in category management: A study of supplier–retailer relationships in Finland and Sweden

The purpose of this paper is to analyze suppliers' roles in category management (CM) in the context of Finnish and Swedish supplier–retailer relationships. Using data from a survey of a sample of Finnish and Swedish suppliers, the study shows that the concept of CM is well known among both Finnish and Swedish suppliers, and that most of them have experience of CM as a key operational business process. The study also shows that, in general, larger suppliers in both Finland and Sweden have a relatively strong role in CM collaboration, whereas smaller suppliers (especially in Finland) are more likely to have a lesser role in CM collaboration. Suppliers with a strong role in CM collaboration are generally more capable of influencing individual CM tactics than suppliers with an equal role to competitors or those with no role (both in Finland and in Sweden). The study also finds that the effects of CM are perceived more positively among suppliers who have influence in decision-making regarding CM collaboration than among those who have no role in such decision-making. However, the opinions of suppliers who have no role in CM collaboration are neutral, rather than being especially negative. Qualitative studies, including face-to-face discussions with managers representing manufacturers who are more or less excluded from CM collaboration, might provide a more thorough understanding of CM from their perspective.     

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

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

A tale of two effects: Using longitudinal data to compare within‐ and between‐firm effects

Research summary : We investigate the theoretical and empirical implications of longitudinal data in strategy research. Theoretically, longitudinal data allow strategy researchers to distinguish between relationships among constructs within versus between firms. Empirically, longitudinal data contain information about two types of relationships: within‐ and between‐firm. We describe how the hybrid approach, a technique used in other disciplines, disentangles within‐ and between‐firm relationships. We reexamine a study of research and development expenditures to illustrate the advantages of the hybrid approach. Based on our theory and reexamination, we offer a series of recommendations for researchers using longitudinal data to test theoretical perspectives . Managerial summary: Strategy research examines two sources of variation over time: what is occurring within the firm (e.g., Do firms perform better over time when investing more in R&D?) and what is occurring between firms (e.g., Do firms investing more in R&D outperform firms investing less in R&D?). These two sources may be similar or different in both direction and magnitude, and when significant differences exist in either direction or magnitude, researchers must carefully consider the implication of these differences to their theoretical rationale and statistical testing. Our article highlights the benefits of theorizing and testing these two sources of variance, providing scholars the ability to broaden both the theoretical and empirical contribution of their research. This distinction is important to how research informs managerial decision making . Copyright © 2016 John Wiley & Sons, Ltd.     

Order release planning with clearing functions: A queueing-theoretical analysis of the clearing function concept

We consider the problem of planning future order releases in hierarchical production planning and control systems. An established research direction is the clearing function concept: the planned material flow through a production unit is modelled by inventory balance equations for WIP and final products, and the consequences of the stochastic properties of the material flow are modelled by clearing functions, which is the functional relationship between the level of WIP and the maximum output of a work centre in a period.Using a transient M/M/1 model, our paper shows that the usual definition of a nonlinear clearing function suffers from substantial shortcomings concerning both the definition of the function and empirical estimation of its parameters. We propose an alternative transient clearing function and derive a procedure for its parameterization.     

The structure and evolution of business-to-business marketing: A citation and co-citation analysis

The field of business-to-business (B2B) marketing has grown considerably in the past four decades. However the state of knowledge about its structure and evolution remains limited. Who are the key players and what are the key papers in B2B marketing? What main research topics have been investigated over time? This article answers these questions by applying bibliometric methods for the first time to the existing body of scholarly B2B research. The key findings reveal a highly dynamic discipline in the 1970s and 1980s, when new knowledge was being intensively exchanged among an increasing number of B2B researchers. Since that time, the pace of development has slowed, and diversification in the discipline manifested itself in a distinctive number of core research subfields. Yet initial research topics such as organizational buying behavior, where much research is still undone, are to a large extent not addressed by modern B2B scholars.     

Digitalization and economic growth: A comparative analysis of Sub-Saharan Africa and OECD economies

This paper examines the contribution of digitalization to economic growth of Sub Saharan Africa (SSA) in comparison with the Organization for Economic Cooperation and Development (OECD) economies. The main reason for comparing the most and the least developed countries to measure the effects of digitalization is to have an insight of whether such effects depend on the levels of development of the country. New technologies in Sub Saharan Africa are assumed to have played significant roles in economic activity, including accessibility of communications, which was impeded by poor infrastructure, accommodation of the poor majority who were initially financially excluded from mobile banking and participation of small and medium enterprises (SMEs) in e-commerce. On the other hand, due to the effects of digitalization, least developed countries in SSA have been facing a premature deindustrialization.This study employs a panel dataset consisting of 11 years from 2006 to 2016 for 41 SSA and 33 OECD economies and we use the generalized linear methods of moments (GMM) estimators. The results show that digitalization has a positive contribution to economic growth in both groups of countries. The effect of broadband internet is minimal for SSA compared to OECD countries, whereas the impact of mobile telecommunications is higher in SSA compared to the OECD counterpart. These results are particularly interesting as less advanced technologies create more opportunities in the least developed countries since there is more space for improvement. With respect to policy implications, this study recommends that SSA governments should invest more in ICT along with other infrastructures, so as to benefit from digitalization and to realize significant economic growth.