The Role of Buyer Trust in Outsourced CRM: Its Influence on Organizational Learning and Performance

Purpose: Company outsourcing of customer relationship management (CRM) functions is increasing (Kalaignanam and Varadarajan 2012). Although outsourcing CRM may provide financial benefits, the tasks of developing and utilizing the complex, cross-functional processes needed to gain enhanced customer knowledge from CRM may be more difficult when some or all CRM activities are outsourced. Trust in the information provided by the outsourced CRM supplier is vital. In this study, the authors examine the influence of buyer trust in its outsourced CRM supplier on cross-functional learning processes and firm performance within the buyer firm.

Methodology: Data were collected from a survey of marketing managers in 221 firms. LISREL 9.2 was used to assess convergent, discriminant, and nomologic validity using the two-step approach (Anderson and Gerbing 1988). Convergent and discriminant validity were evaluated in the measurement model phase, whereas the structural model provided an appraisal of nomologic validity.

Findings: The results provide evidence of buyer firm trust in the outsourced CRM supplier playing a critical role in the buyer firm’s success with information sharing, and both trust and information sharing strongly influencing information interpretation and information access in the buyer firm. All three organizational learning processes positively influence buyer firm customer satisfaction/retention and market performance.

Research implications: An important area for future research is the possibility of varying levels of trust needed for success with outsourced CRM depending on the buyer firm’s goals for its CRM system. It is possible that the simpler CRM functions could be outsourced effectively through efficiency strategies that do not require significant levels of trust, whereas the more complex CRM activities that affect organizational learning require more stringent coordination and inter-organizational development. Varadarajan’s (2009) cost versus quality classifications of outsourcing could be a useful starting point for this type of analysis. Considering the finding in this study that information sharing is critical for information interpretation and information access in the buyer firm, another area for future research is possible differences in the extent of information sharing required by firms that are outsourcing CRM versus those that conduct the CRM function in-house. One starting point could be possible differences in relevance among Maltz and Kohli’s (1996) factors affecting information dissemination.

Practical implications: For effective use of CRM data, it is important for buyer firms to develop trust in their outsourced CRM supplier. Managers can assist in this by communicating qualifications of the outsourced CRM supplier, such as any trade-specific certifications, awards, information about the supplier’s number of years in business, and examples of other companies the supplier has assisted. Managers can also help employees develop confidence in the supplier’s integrity by sharing the supplier’s code of ethics and serving as a champion for the supplier. In addition, firms engaged in outsourced CRM are encouraged to develop reward systems that motivate employees to build relationships with their counterparts in the supplier firm, and it would be useful for the buyer firm to help its employees understand the importance of the CRM outsourcing relationship to the buyer firm’s success. Finally, it is important for management to provide opportunities for interaction between the outsourcing partner and key buyer firm employees who will use the CRM data, to encourage effective processes in information sharing, information interpretation, and information access.

Contribution of the article: This article addresses the significance of outsourcing the CRM function and provides evidence that buyer trust in its CRM supplier is a critical factor in its utilization of CRM data for organizational learning and firm performance. It also demonstrates that effective sharing of information, cross-functional integration of customer data, and CRM information accessibility are critical for firm success.     

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.     

The Influence of B to B Social Media Message Features on Brand Engagement: A Fluency Perspective

Purpose: Social media is increasingly drawing the attention and interest of business-to-business (B to B) organizations. Yet, B to B organizations remain cautious in their social media pursuits, in part based on a stated lack of understanding for best practices. The purpose of the current work is to take initial steps to address this challenge by identifying specific social media message features that influence online users’ engagement with B to B organizations.

Methodology/Approach: This work examines the Twitter feeds of the top 50 social B to B brands (as reported by Brandwatch in 2015) to examine the effects of message features (hashtags, text difficulty, embedded media, and message timing) on user engagement, captured in terms of Twitter likes and retweets.

Findings: We argue that message features that enhance fluency (e.g., images) should enhance engagement. In contrast, those that disrupt fluency (e.g., hasthags) should result in lower levels of engagement. Consistent with these predictions, we find that hashtags and text difficulty correlate to lower levels of engagement whereas embedded media in the form of images and video correlate to higher levels of engagement. Also consistent with the proposed fluency framework, we find that tweets from B to B organizations generate greater engagement on evenings and weekends.

Research Implications: This research applies a fluency lens to identify specific message features that influence online engagement. In doing so, it highlights fluency as a powerful construct for understanding the drivers of B to B social media brand engagement. More generally, this work suggests fluency as a valuable conceptual lens for developing effective B to B social media strategies. This research also speaks to the complexity of B to B social media strategies – organizations must go beyond content and platform decisions, to also consider the specific features of the message.

Practical Implications: Social media is becoming more and more important to B to B organizations and is as yet an underutilized engagement tool. The current work offers initial strategies regarding message features that business practitioners can incorporate into their content development strategies to strengthen engagement. Specifically, efforts should be made to attain high levels of fluency in B to B social media content development.

Originality/Value/Contribution of the Paper: The current work offers initial insights as to the importance of understanding not only how social media topics/content influence engagement, but also the influence of message features (e.g., hashtags, embedded media). In doing so, it highlights fluency as a novel conceptual lens for developing more effective B to B social media strategies. Finally, it draws on actual tweets from leading B to B brands to examine the proposed influence of message features on engagement.     

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.     

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.     

A Model of Interorganizational Networking Antecedents,Consequences and Business Performance

Purpose: This quantitative study intended to examine the communication interactions that develop within a business network among various actors (i.e., customers, providers, cooperators, etc.), together with their effects upon business networking and performance. To these ends, we developed a conceptual model of dyadic marketing-oriented and network-oriented communication exchanges (i.e., interorganizational antecedents), interorganizational networking consequences, and business performance. Specifically, interorganizational networking consequences were examined in terms of tactical and strategic cooperation, whereas business performance was examined in terms of adaptability, productivity and efficiency.

Methodology/approach: To set the hypotheses of the study we delved into the wide stream of marketing literature pertaining to interorganizational networks and business-to-business relationships, and specifically to the marketing orientation theory, the social network theory, and the IMP approach. These research hypotheses were tested using advanced statistical analysis and causal modeling. The research sample comprised 1,000 business-to-business international companies, which were mostly U.S., and European and were randomly selected from the yahoo.com business-to-business companies’ subdirectory. The data collection involved a two-wave e-mail survey, in which the quantitative research instrument was emailed to the respective marketing directors’ personal accounts. Totally 249 high ranking marketing executives responded, thus yielding a 24.9% response rate. The selected data were, then, subjected to rigorous advanced statistical analysis of structural equation modeling, using the AMOS21 statistical package, to test reliability and stability of selected measures and validity of the research model, as a whole.

Findings: Overall, the research findings provided sufficient evidence that the proposed model was robust. Moreover, the findings supported that communication exchanges that deploy within a wide array of participants (i.e., within a network of organizational members, customers, partners, and other interacting partners within a market), may have stronger explanatory powers upon a company’s networking effects and business performance, than communication exchanges that evolve merely at a dyadic company-customer level.

Originality/value/contribution: This research is original; that is, it deals with empirical, quantitative data and makes an attempt to combine marketing concepts mainly from 3 marketing streams studying the long-term business-to-business relationships. Our approach is based on existing marketing literature, suggesting that networks, apart from being embedded in previous relationships and interactions, they may also be based on more loosely coupling between organizations. Thus, we use the IMP approach to formulate the measures of our study; however, we don’t discriminate between strong and weak ties in relationship bonding. In this research we focus on specific communication behaviors that may nurture interorganizational networking and look for effects upon cooperation and business performance. The research findings imply that marketing executives would worthwhile expand their communication exchanges beyond their narrow customers’, or providers’ network, to the wider array of trustworthy business circle, as such a behavior may largely favor their companies’ adaptability to environmental changes, flourish innovation, and lead to synergies in efficiency and productivity gains.     

A longitudinal study of franchisor failure according to Altman’s Z model

Purpose: The foremost objective of this study is to obtain segments/clusters of franchisors that are more likely to fail. A second aim is to evaluate the influence of the usual variables of the franchise contract on the solvency of franchises.

Design/methodology/approach: This study set up a database with information collected from several Spanish franchising yearbooks and franchisors’ websites to establish the census of Spanish franchisors. This article worked with a census of the franchises operating in Spain from 2001 to 2011. Latent class regression analysis is used.

Findings: This research found four segments or classes of franchisors with regard to their failure pattern. In addition, this article defined the most influential variables in the franchisors’ risk of failure. The relationships between the variables that define a franchise contract and the Z scores of Altman’s model have been extracted. The dependent variable has been the Altman’s Z model and the independent variables are those that define the franchise contract.

Research implications: This methodology offers potential franchisees a new criterion for assessing the franchise chains they are investigating, taking into account their risk of failure. This allows franchisees to better highlight those franchisors that have a lower crash risk and avoid the damage incurred by the closure of the chain. The information provided for franchisees should be accessible, usable, and suitable to help franchisees to choose the best franchise systems in which to invest. This methodology is of course very useful for franchisors, because they can comprehend their financial situation and how they could manage the franchising variables in order to improve their solvency.

Practical implications: All the segments are solvent, except Segment 3. The distinguishing feature of this segment is that over 64 percent of the firms are retailer chains. In addition, more than 20 percent of the franchises from our database are in financial danger, and this is the group where the number of service companies is lower.

Originality/value: This research is unique in two ways. First, this study presents a new methodology in this field that allows researchers to use the historical-financial data of franchisors, and the information of the franchise contract to predict franchisor failure. Second, this article helps franchisees to make their own decisions on the basis of the franchisors’ level of risk of failure. Third, this research offer a theoretical contribution about franchisor failure, this topic is scarcely treated by academic literature.     

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.     

Learning Styles,Motivation, and Career Choice: Insights for International Business Students From Linguistic Inquiry

Purpose: The purpose of this study is to develop a model of motives and career choice based on learning styles in order to apply the model in teaching business. Although the relationship between learning and McClelland’s (1961) three motives (achievement, affiliation, and power) as confirmed that motives are “learned,” little research has examined if learning styles are the key factor to classify motivation into three different implicit motives and whether those motives affect students’ career choice.

Design: The article first examines the Kolb’s (Kolb, 1984, 1999; Kolb & Kolb, 2005) learning styles including active experimentation (AE), reflective observation (RO), abstract conceptualization (AC), and concrete experience (CE). It then measures the learning styles and Holland’s (1985) six career types including realistic, investigative, artistic, conventional, enterprising, and social by the three McClelland (1985) motives including achievement, power, and affiliation using Linguistic Inquiry and Word Count (LIWC) 2015 software (Pennebaker, Booth, Boyd, & Francis, 2015). Finally, the article compared the factors of learning styles and career types against each other based on the three motives in order to discuss the teaching strategies for students in their career choice.

Methodology: The study has used LIWC 2015 (Pennebaker et al., 2015) software to find the scores of achievement, power, and affiliation motives in the four Kolb’s learning styles (Kolb, 1984, 1999; Kolb & Kolb, 2005), and the six career interests (Holland, 1985). Correlation analysis was conducted among the motive values to find the relations among the learning styles, motives, and career choice.

Findings: (a) The two learning styles of AC and AE stimulate the need for achievement; (b) the learning style of RO stimulates the need for power; (c) the learning style of CE stimulates the need for affiliation; (d) people with a high achievement motive would be fit in artistic, investigative, and realistic careers; (e) people with a high power motive would be fit in conventional and enterprising careers; (f) people with a high affiliation motive would be fit in a social career.

Originality of the research: Efficient teaching techniques applied based on the study findings indicate that (a) teaching high achievement students will use more challenge techniques such as assignments and projects for thinking and doing training, (b) teaching high power students will use more control techniques such as discussions and presentations for observation training, and (c) teaching high affiliation students will use more socially oriented techniques such as writing tasks for emotion training.     

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.     

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.     

A Qualitative Study of Malaysian Parents’ Purchase Intention of Functional Weaning Foods using the Theory of Planned Behavior

Background: In this study, qualitative research methods were used to explore the behavioral, normative, and control beliefs underpinning parents’ decisions to purchase functional weaning food products.

Methods: Seven focus groups were conducted with 44 parents in two locations in Malaysia (Sabah and Selangor). Based on the Theory of Planned Behavior theoretical framework, participants were prompted with questions about commercial weaning foods including functional weaning foods and shown several different products to stimulate discussion.

Results: Important behavioral beliefs (product attributes, babies’ needs and suitability of the product, perceived healthiness), referrals and influences (family and friends’ opinions and experiences, internet and social media influence, health professionals’ recommendation and advice) and facilitating and inhibiting factors (trust and confidence, brand and cost, and product availability and options) were identified.

Conclusions: Overall functional weaning food purchase intention was influenced positively and negatively by behavioral, normative and control beliefs. To increase the awareness and commercial product knowledge on weaning food are suitable for their children, more information on functional weaning food products from reliable sources that can reach the parents and other potential customers is needed. Government, health professionals and manufacturers should work together to develop a better way to inform parents about functional weaning foods.     

How Strategic Purchasing Orientation and Transformational Leadership Impact Performance: The Mediating Role of Information and Communication Technologies

Purpose: Purchasing orientation (greater efficiency, use of information and communication technologies; ICT) is becoming an underlying part of company strategy in an increasing number of business organizations. Transformational leadership by purchasing managers is also emerging as a tool to generate more intense and effective use of ICT and as a means of enhancing performance. The present research pursues 2 goals: firstly to explore how the strategic nature of the purchasing function and transformational leadership of purchasing managers impacts ICT use intensity and purchase efficiency, and secondly to pinpoint how the use of ICT affects purchase performance.

Methodology/approach: The empirical work is based on an analysis of the information provided by a sample of 130 Spanish firms. Empirical verification of the proposed model was carried out through partial least squares analysis.

Findings: Findings show that the strategic importance which management attaches to the purchasing function impacts the intensive use of ICT. However, the transformational leadership exercised by purchasing managers proves relevant in achieving greater cost efficiency and coordination with suppliers.

Research implications: This work has sought to merge as determinants of efficiency both strategic aspects of the purchasing function in the firm as well as managerial aspects of said function (manager’s transformational leadership and the use of ICT). This research breaks new ground by empirically comparing the relationship between the strategic nature of the purchasing function in a firm and intensity of ICT use, a relation which has been the subject of very little inquiry and for which the mediating role of ICT in the link between strategic orientation and purchase performance is brought to light.

Originality/value/contribution: The study makes a twofold contribution. Firstly, the present research seeks to bring together strategic aspects of the purchasing function in the firm as well as other management factors involved in said function (managers’ transformational leadership and use of ICT) as drivers of efficiency. In this sense, the findings point to the important role played by the purchasing manager vis-à-vis the strategic vision of the purchasing function in achieving cost efficiency and coordination with suppliers. Secondly, this research breaks new ground by empirically verifying the link between the strategic nature of the purchasing function in a firm and intensity of ICT use, a link which has been the focus of scant attention and for which we underpin the mediating role of ICT in the relationship between strategic orientation and purchase performance.     

Exploring the impact of product service quality on buyer commitment and loyalty in B TO B relationships

Purpose: The purpose of this study is to understand and empirically test causal relationships among components of product service quality and commitment and buyer loyalty in business-to-business (B to B) relationships.

Methodology/approach: Data were collected through a web-based survey from 314 buyers of B to B manufacturers in Korea.

Findings: Product quality enhances all three types of commitment in B to B relationships, service quality is positively associated with affective commitment, and support quality has a significantly positive effect on affective and normative commitment. Also, the moderating effects of competitive intensity are significant. If competitive intensity is low in the buyer’s market, product quality and service quality play important roles in deriving buyer commitment; however, if competitive intensity is high, support quality is effective in maintaining long-term committed relationships with buyers.

Research implications: To fully consider product service quality in this study, we established support quality, product quality, and service quality as discrete components of product service quality.

Practical implications: Previous quality-related works have focused on products and services with little research about support activities, and the literature is lacking empirical analyses of support activities. However, this study elucidates the importance of operational and technical support activities in B to B relationships. Specifically, in a fiercely competitive market, a high-quality consumer support strategy is shown to be highly effective in maintaining long-term committed relationships with buyers.

Originality/value/contribution: We analyzed the relationships among components of product service quality and commitment and buyer loyalty in B to B transactions. Our detailed results will help firms develop context-specific quality management strategies at the product service level in order to strengthen customer loyalty.     

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.     

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.     

Moderating roles of national culture for alliance relationship advantages and performance in Asia

Purpose: Despite the fact that some studies examine the role of cultural attributes as determinants of successful alliance relationships, there has been lack of studies that explored how a firm’s orientation toward alliances, as a culture, might provide competitive advantages in the form of alliance relationship, which influences the firm’s performance. The current study therefore proposes a research model, in which alliance orientation as an intangible resource enhances the alliance relationship advantage, which eventually improves alliance performance, with national culture as a moderator.

Design/methodology/approach: To test the hypotheses, responses were obtained from 145 South Korean and 123 Chinese firm samples. The proposed model was estimated using structural equation modeling and hierarchical regression analysis.

Findings: The empirical study confirms that alliance orientation directly influences alliance relationship advantage, en route to alliance performance. When uncertainty avoidance is greater, the relationship between alliance relationship advantage and alliance performance grows weaker, whereas when masculinity and long-term orientation are greater, this relationship becomes enhanced.

Research implications: Leveraging source–positional advantage–performance structures (Day and Wensley 1988), this study clarifies how alliance orientation influences a firm’s alliance relationship advantage as a positional advantage, which eventually enhances its alliance performance. Moderating effects of cultural factors arise between alliance orientation and alliance relationship advantage, thereby revealing the important, contingent role of cultural factors in managing the link between alliance orientations and competitive advantage.

Practical implications: This study provides managerial guidelines for how firms operating in different countries such as Korea and China can manage their alliance orientation and alliance-related activities to enhance their competitive advantages and firm performance, by noting and accommodating different cultural characteristics.

Originality/value/contribution: The proposed contingency model relies on the moderating role of national culture, reflected by uncertainty avoidance, masculinity, and long-term orientation, to explain the relationships between alliance competitive advantages and alliance performance.     

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.     

Preliminary Investigation of Entertainment Strategies Involving Alcohol: Implications for Professional Sales Education and Training in Business Markets

Purpose: With increased numbers of business to business (B to B) firms hiring professional sales students, it is important that both sales educators and sales managers understand entertainment’s influence and its potential consequences in the professional sales environment. This study examines the perceived role entertainment plays in today’s sales process and the importance of integrating entertainment topics into sales education and sales training. The purpose of this study is to update the sales entertainment literature, record its current importance in the age of sales systemization, and propose entertainment strategies and guidelines that can be shared in both corporate sales training programs and university professional sales curricula.

Methodology/approach: Partial least squares (PLS) methodology (SmartPLS 2.0) was used to examine the model and assess the relationships between the constructs and their indicators. Data was first gathered via online and in person surveys distributed to a total of 59 sales executives. To determine whether there were significant differences between path coefficients, PLS multi-group analysis was used (PLS-MGA) to compare sales practitioners’ response to sale educators and sales students. This method was used because conducting pair-wise group comparisons can result in family-wise error.

Findings: Results indicate significant positive relationships exist between entertainment orientation, internal bonding activities, and sales performance. The results confirm the path coefficients for the 3 groups, sales practitioners, sales educators, and sales students, did not differ significantly. Therefore, all groups rated external entertainment as being important to achieve sales performance and internally for bonding with co-workers.

Originality/value/contribution: The responses of B to B sales professionals, sales educators, and sales students are compared regarding their perception of entertainment in developing and managing sales relationships. Based upon the findings, sales professionals are provided with insight about the perceived role entertainment plays

in today’s selling environment and offered recommendations for collegiate classrooms and corporate on-boarding sessions that improve the knowledge of and ability to successfully manage entertainment of internal and external customers.