Resource acquisition strategies in business relationships

Integrating the IMP Group approach with aspects of the resource-based view of the firm, we seek to develop and test a typology of relationship strategies based on different resource acquisition foci. For this purpose, we conducted interviews with thirty CEOs and other senior marketing managers in the UK and the USA. In-depth content analysis identified five main resource acquisition strategies (RAS) behind building business relationships: money bonds, new market bonds, utilization bonds, intellectual bonds, and credibility bonds. We further carried out a quantitative study with 658 senior managers in the USA to test for the generalizability of our findings. Results of a one-way repeated ANOVA and multinomial logistic regression analysis show significant differences between the five RAS for business relationships. However, a pair-wise comparison provides evidence for the existence of hybrid strategies. In addition, an investigation of the association between the RAS of business relationships on the one hand, and business strategy on the other, revealed equifinality of alternative business strategies vis-à-vis the applied relationship strategy. Finally, our analysis revealed no significant differences between the distributions of RAS types for knowledge intensive versus non-knowledge intensive business services. However, we found that RAS distribution is significantly associated with company size.     

Initiation of business relationships in service-dominant settings

Industrial companies today are becoming increasingly service-oriented and therefore need to shift from selling hardware to valuing services and managing customer relationships. A new and particularly significant challenge for these companies is how to initiate relationships which is an issue that has received surprisingly limited scientific attention. The aim of this study is to develop a conceptualization that explores the dynamics in the relationship initiation process in service-dominant settings. Narratives from three sellers of professional services, augmented with narratives from a buyer's view, form the empirical basis of the study. The dynamics in the relationship initiation process are clarified with three new concepts: status, converter, and inhibitor. The paper concludes with implications of the new conceptualization and suggestions for future research.     

Value-based sales process adaptation in business relationships

In business relationships, the seller is often expected to adapt to the buyer. The main purpose of this study is to understand how business firms adapt their sales processes to the buyer. The resulting framework, which reveals how different modes of adaptation are contingent upon the type of product being purchased, includes three layers: sales process adaptation, seller–buyer relationship orientation, and the purchasing portfolio. The study is a qualitative one and utilizes a retrospective case study, where the main sources of information are in-depth semi-structured interviews with key informants representing the seller and buyer counterparts in the ICT industry. Our study adds to the understanding of how different modes of adaptation are contingent upon the type of item being sold and purchased. Managerial implications include that to strategically adapt, the seller could focus on the purchasing portfolio. Although previous research has recognized adaptation as a central aspect in relationships, how the sales process could be adapted to the buyer has received little attention. This study focuses on the adaptation of sales to strategically match it to the buyer's situation.     

Social capital in Southeast Asian business relationships

Social capital is the glue and the lubricant facilitating network behavior [Anderson, A. & Jack, S. (2002). The articulation of social capital in entrepreneurial networks: a glue or a lubricant?. Entrepreneurship & Regional Development, 14, 193-210.]. The purpose of this paper is to add to the current literature on social capital by investigating social capital structures, opportunity, motivation and ability within export relationships in Thailand. We conceptualize social capital following Adler and Kwon [Adler, P. & Kwon, S-W. (2002). Social Capital: Prospects for a New Concept. Academy of Management Review, 27(1), 17-40.] and use interview data to further explore the construct. Our results indicate that the social structures from which social capital is drawn are not independent for large overlaps are present. Opportunity, motivation and ability are linked with a common thread of trust. The research highlights implications for managers wishing to develop social capital or use social capital as a marketing strategy.     

Empirically testing ES success factors in business process reengineering

Previously proposed success factors for Expert Systems implementation are field tested in the context of business process reengineering (BPR) projects. Due to its nature mimicking human expert behavior, ES technology applications in BPR provide a unique opportunity to study major organization changes within a relatively short time. Using Pearson correlations and multivariate regression analysis, eight ES implementation success factors proposed in the literature were empirically tested in this study in terms of their importance to the BPR benefits derived from the application. Sixty-two ES applications within E.I. Dupont de Nemours and Company dealing with business process changes significant enough to be called BPR were used. Despite the relatively small sample size, six of the eight success factors were corroborated: user satisfaction with the ES, the importance and difficulty of the business problem addressed, user attitudes toward ES technology and the particular ES project, the degree of user involvement in the ES implementation process, and the ES developer(s) skills.     

Interaction in business relationships: A time perspective

Interaction is central to the relationship framework in business markets. Yet there is some theoretical imprecision with regard to the way interaction works in time. Clarification of this nexus further develops the interaction concept and provides theoretical support for the dynamic view of business relationships being developed by the industrial marketing and purchasing (IMP) group.The role of time as a backdrop for interaction is elaborated in conjunction with the cognitive ability of humans to arrive at an understanding of interfirm interaction. This elaboration extends the concept of horizontal relationship time (i.e., past, present, future), illustrates constraints on interfirm interaction, and analytically distinguishes between interaction as exchange versus adaptation while also displaying the importance of the actor in business relationships. In addition, theoretical grounds are provided for dismissing business relationship life cycle theories. Finally, the cognitive nature of time and relationships provides a means for theory development and management implications free from cultural and normative overtones.     

Use of the written contract in long-lasting business relationships

While contracts are signed in most business dealings, they are seldom used. These contracts are drawn up for different purposes: as a communication tool, to reduce uncertainty, or simply because it is customary. This study investigates how contracts are used in long-lasting business relationships and what factors influence the use of contracts. A number of studies claim that the negotiation process and the relationships developed during that process influence the subsequent use of contracts. In many cases, parties conduct business without contracts as they develop trust-based relationships. A conceptual framework is developed, which is then used to analyze three in-depth case studies. Findings show that the contract itself, rather than the negotiation process, has the greatest influence on how the contract is used.     

Analyzing business relationships and distinguishing different interaction levels

Over the years, there have been a large number of attempts to understand relationships in industrial markets. However, even if relationships are built up on the basis of series of interactions, these studies have not offered systematic categorization of different types of relationship interactions. The present article proposes a refined conceptualization for identifying different types of relationship interaction units, labeled interaction levels, ranging from a single exchange to a relationship portfolio. Compared to the current use of two interaction levels in relationship studies, the proposed conceptualization allows a more elaborate analysis of single relationships and better comparisons of different relationships.     

The involvement and influence of emotions in problematic business relationships

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

Capturing value creation in business relationships: A customer perspective

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

The emergent role of value representation in managing business relationships

This paper explores value processes, their effects, and their management in business relationships. Over time, scholars progressively moved their interest from the value of the objects exchanged to the value of business relationships. However, how value is related to interactive processes that characterize business relationships still remained unclear. With this scope, the paper brings to the fore recent studies on the role of actors' perceptions of value and the interactive features of the business context. The empirical research involves 77 interviews carried out over two years with actors internal and external to the Mikron Tool's business network, a Swiss leader in manufacturing high-precision tools. The study shows that four key value processes – value creation, value communication, value measurement, and value appropriation – determine specific consequences that must be managed to achieve effective business relationships. Moreover, empirical evidences highlight the relevance of value representation in affecting the four value processes. The study contributes to an improved understanding of value management in interactive and interdependent business contexts. Also, it draws attention to the need for a better integration between the traditional economic view of value and recent insights from the fields of organizational psychology and sociology.     

Relationships in the purchasing of business to business professional services: The role of personal relationships

There has been a shift from transactional to relational exchange and relationship marketing both in the business to business and professional services contexts. This paper seeks to explore the manner in which personal relationships affect the process and outcomes of purchasing of professional business services. Specifically, it focuses on the role of the professional service providers as boundary spanners in the formation of personal relationships. These personal relationships constitute the underlying basis of long-term relationships between the purchasing and provider organizations in such complex service settings. The findings of this study demonstrate that the manner in which the boundary spanners cultivate relationships support the concept of relationship specific tasks. It extends this conception by use of the data to outline the chronological process over time Understanding the roles, function, and ultimately importance, of these relationships facilitates the identification and development of appropriate strategies to manage these relationships.     

Interaction behaviors in business relationships and heuristics: Issues for management and research agenda

Various empirical studies have evidenced that interaction is a critical process in the development of buyer–seller relationships in business-to-business markets. Research examining the different aspects of interaction processes and the consequences of interaction in business relationships for the development of the businesses involved has tended to black-box the interaction process. Limited attention has been given to how interaction behaviors of individuals arise and the interplay between cognition and behaviors in interaction. At the same time, recent research offers some insights into the use and role of heuristics in contexts analogous to those individual actors face when they interact in business relationships. In this paper we review current research on interaction processes in business relationships as well as on heuristics in the management context and argue that focusing on heuristics used in interaction in business relationships offers valuable insights on how interaction behaviors emerge. In particular, we discuss the notion of heuristics as an “adaptive toolbox,” and how it relates to adaptations in business relationships. We also discuss implications for management and outline a future research agenda.     

Short term financial success in large business organizations: The environment-strategy connection

This study examines the interrelationships of environmental changes and strategic action variables with each other and with short term success, for 358 large business firms over a 45 year period. Success (Fortune ratings and ROA) is found to be related to two strategic decision segments. Several strategy-environment relationships are also found. Some methodological problems are noted in the attempt to move policy research from case analysis to statistical explanation.     

Understanding attractiveness in business relationships — A complete literature review

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

The power roots and drivers of infidelity in international business relationships

We propose a conceptual model of the power roots and drivers of infidelity in exporter-importer (E-I) working relationships. Based on data collected from 262 Greek export manufacturers, we confirm that the exercise of coercive power in the E-I working relationship by the exporter has positive effects on distance, opportunism, and uncertainty, as opposed to the exercise of non-coercive power that exhibit negative effects. In turn, distance, opportunism, and uncertainty each contribute toward driving infidelity in the relationship by the importer. The relationship length and relationship status were also found to have a control effect on infidelity.     

Building trust in US-Japanese business relationships: Mediating role of cultural sensitivity

While evidence suggests trust plays a fundamental role in maintaining successful buyer-seller relationships in Japan, little is known conceptually as to how foreign sellers can best develop trust in the minds of their Japanese customers. In this research, we develop and test a multi-component model of US seller actions that manifest key trust-building processes (intentionality- and capability-processes) which sellers find effective in building trust with their Japanese buyers. In this unique cultural context, theory suggests trust develops when sellers demonstrate benevolent intentions toward the buyer and exhibit a strong capability to fulfill business promises. An analysis of 181 US sellers in Japan demonstrates that a combination of trust-building efforts is recognized as being critical in seller attempts to develop and sustain trust on the part of their Japanese customers. Importantly, cultural sensitivity mediates the impact of intentionality-based practices on buyer trust, while capability-based activities directly influence trust.     

Emotions, trust and relationship development in business relationships: A conceptual model for buyer-seller dyads

Existing research on buyer-seller relationships has focused on the role played by trust in shaping the dynamics of interpersonal interaction between the buyer and the seller. While this is undoubtedly an important variable in governing the interactional dynamics it is by no means the only variable. The paper begins by reviewing the existing literature on buyer-seller relationships. The role played by emotions is articulated. Finally, it is recognized that the emotions that emerge in a buyer-seller relationship do so at multiple levels. A model and propositions highlighting the impact of emotions on interpersonal relationships are developed. Illustrative cases are used to ground the propositions empirically.     

Market-driving versus market-driven: Divergent roles of market orientation in business relationships

This study focuses on market orientation (MO) and customer intimacy (CI) in business-to-business marketing. These are generally regarded as key success factors in marketing. The authors argue, however, that the relationship between MO and customer relationship has not been properly examined, nor has its dependence on a firm's strategic market posture been understood. A contingency framework is proposed to test the postulated relationships between the key constructs. Our results indicate a strong positive association between MO and CI. Furthermore, this linkage is clearly influenced by the market focus and business logic adopted. In managerial terms, business executives must carefully match the strategic posture of the firm, its MO, and customer relationship management (CRM). Our findings strongly support a contingency modeling approach in studying the factors underlying marketing performance in business markets.     

Strategic decision making in business relationships: A dyadic agent-based simulation approach

This study employs agent-based simulation to model strategic decision making in business relationships, examining the influence of two important strategy drivers in business relationships (performance and power) on relationship success (relationship survival and performance). The study offers insights into the complex and evolutionary interaction and feedback effects between networking strategy choice, relationship performance and power. Findings show that although certain strategies may be desirable for firms to manage their business relationships, they are not necessarily as successful in all situations. Results indicate that a trade-off exists between relationship context and performance which needs to be considered in strategic networking decisions. Further, the study shows that too many strategy changes cause relationships to become unstable and thus negatively affect performance. The authors refer to this phenomenon as strategy volatility — the rate at which actors change their networking strategies within relationships. This phenomenon arises when too many variables influence firms' decision making and thus cause firms to frequently change their strategy. Although strategy volatility has a relationship safeguarding effect in the short term, this effect diminishes over time.