Linking key account management practices to performance outcomes

Many suppliers practice relational strategies that aim to achieve competitive advantage through a collaborative business relationship with their customers. Key account management (KAM) is one such relational strategy that suppliers rely upon to manage their relationships with strategically important customers. Yet suppliers still struggle to put such programs into practice effectively, most likely because academic investigation has yet to report on what actions explain the performance of KAM initiatives. Aiming to fill this gap, we first identify a set of key KAM practices at the strategic, organizational, tactical and control levels of management. Next, we examine how these practices explain the performance of KAM through the mediating effect of the supplier's relational capabilities and the relational outputs that such capabilities produce. The results provide support for most of the hypothesized relationships, showing that the identified practices positively affect performance and dyadic outcomes through the mediation coming from the variables examined. From a theoretical perspective, the study adds to our understanding of the factors underlying effective KAM practices. From a managerial perspective, the results provide insights into how suppliers can achieve KAM effectiveness through relationship-oriented activities, skills and outcomes.     

Firm-internal key account management networks: Framework,case study,avenues for future research

Key account management (KAM) is used for managing relationships between a supplier and its strategically important customer firms, that is, the key accounts. KAM activities typically involve a firm-internal network of actors. While there is a rich body of literature on key account managers' work with external networks in customer firms, this study focusses on the much less explored KAM activities in interaction with the firm-internal network that is required to mobilise resources and develop activities towards key accounts. The purpose of this study is to develop a conceptual framework explaining how the firm's capability to manage the internal KAM network contributes to firm performance. We illustrate our framework using case study material and develop avenues for future research along the elements of our framework.     

Implementing key account management: Intraorganizational practices and associated dilemmas

Over the last few decades, key account management (KAM) has become a widespread approach to creating value in strategic customer relationships. Research in KAM has often focused on the role of the key account manager, taking a customer interface perspective and adopting cross sectional methods. We contribute to the KAM body of knowledge by presenting a novel longitudinal study of the intraorganizational decisions and dilemmas faced by leaders when implementing KAM programs. Our findings demonstrate that deploying KAM involves the continual balancing and harmonization of strategic and operational practices. In particular, we show that KAM programs become embedded when firms create structural as well as individual support systems and when long-term aims can be reconciled with the need for short term deliverables.     

The organizational implications of implementing key account management: A case-based examination

Most companies struggle in the effort to become more customer-centric. A typical example of customer-centric change initiative is adoption of a key account management (KAM) program. Companies are increasingly adopting such programs, but knowledge of how to successfully manage the organizational change required to implement them is extremely limited. Our goal in this study was to use case study methodology in order to develop a comprehensive understanding of organizational issues that firms need to consider when implementing a KAM program. We accordingly describe, using as our observational lens a well-established framework (the 7S model), how a multinational company adopted a KAM program in a local branch. We argue, on the basis of our review of the literature on KAM adoption and on change management in sales organizations, that the 7S model can be used to meaningfully synthesize both processes. Using the 7S model, we describe and interpret the change management project the company followed in order to implement the KAM program. Based on this we present some key learnings from the case, accompanied by a conceptual model and a checklist, advanced to help academics and executives better understand how to investigate and manage KAM adoption programs.     

A bibliometric analysis of extended key account management literature

Key account management (KAM) has played an important role in business, and this study reviews key account management research using bibliometric techniques. This review includes 373 KAM relevant articles published in 68 journals between 1979 and 2016. In our analysis, we extend the discussion on KAM literature by highlighting areas such as the roles of technology and conflict as well as relationship planning and implementation. We discuss the value of co-creation, inter-organizational design elements, and dyad-level performance measures. We examine five distinctive time-periods and find that KAM relevant literature has progressed 1) from selling and relationship-building approaches to key network management, 2) from network innovation to governance, 3) from network-level performance to co-creation of business solutions and values, 4) from product and service performance to incorporating sustainability. Finally, we present the fifth transition based on a network-view of KAM and identify future research aimed at integrating areas such as network-based orientation, applications of organizational theories, organizational innovativeness, network competence for optimal structure and processes, network-based KAM teams, value-sharing mechanisms, co-created value measurement, and value sustenance within networks. We identify areas of future research and expect the adoption and application of key account management concepts to grow across multiple disciplinary fields.     

Identification as a challenge in key account management: Conceptual foundations and a qualitative study

Managing business relationships requires that boundary-spanning actors, such as key account managers, perform their task at the interface between two relational networks, the internal firm network and the network on the side of the key account. Several streams of research have suggested that similar situations raise questions of identification, but the business-to-business literature has not yet paid much attention to this issue. This study focuses on key account management (KAM) as a typical task of inter-organizational interface management. The conceptual foundations of identification in a sales-related interface context, such as KAM, are first discussed. It then pursues with a qualitative exploratory study that uses data gained through 40 semi-structured interviews with key account managers to identify their identification anchors. The qualitative data suggest four identification foci, namely organizational identification, key account identification, leader identification, and occupational identification, which are illustrated in a conceptual model. The study concludes with a discussion and avenues for future research.     

A framework for key account management and revenue management integration

Key Account Management (KAM) and Revenue Management (RevM) have been widely practiced in the service industries for more than three decades, but the effects of RevM on KAM remain largely unknown. This paper addresses this neglected area of study in the marketing field by presenting a framework for KAM and RevM integration that aligns the potentially conflicting management priorities of the two. The study uses an international hotel company as a research context to investigate, first, how a long-term relational approach to KAM may have been affected by RevM short-term revenue maximization goals, and, second, how KAM could be facilitated by RevM through an integrated approach to yield optimization from perishable products and from key accounts. The proposed framework is the first attempt of its kind to amalgamate KAM and RevM, involving critical analysis to assess comprehensively the revenue and the relationship value of a key account.     

Using trade fairs in key account management

Trade fairs play an important role in marketing. In many cases, exhibitors view trade fairs as an opportunity for transactional selling, and thus may overlook opportunities that exist for initiating and building relationships with key accounts. This paper maps exhibitors' and visitors' exhibition objectives against key account management (KAM) activities, and in particular examines the role trade fairs can have in solving specific problems that arise at different stages in the development of the relationship between firms in a dyadic KAM scenario. Drawing on research conducted in the UK, US and Greece, the author concludes that trade fairs should occupy a pivotal position in KAM, but the evidence is that exhibitors are not taking full advantage of this opportunity.     

The role of personality and motivation on key account manager job performance

Key account management (KAM) has strengthened its relevance as a managerial process in business-to-business (B2B) markets. In many companies, the success of KAM initiatives often rely on individual-level achievement, that is, the performance of key account managers. Despite the relevance of research on individual-level KAM, these topics are largely neglected. This research addresses the problem by developing and testing a structural equation model of personality, motivation, and key account manager job performance. Our results show that two motivational constructs—learning orientation and performance orientation—play major roles in key account manager job performance. In addition, relationships between personality traits and motivational constructs are observed: Extraversion, agreeableness, conscientiousness, and emotional stability are found to have significant relationships to motivational constructs. Two of the personality traits, extraversion and conscientiousness are linked to both learning orientation and performance orientation. We discuss theoretical and managerial implications of our findings and finally provide future research directions.     

Barriers to the “key supplierization” of the firm

The phenomenon of key supply management (KSM) in business companies is far less investigated than the phenomenon of key account management (KAM) which beneficiates, both in practice and in an academic context, from a growing interest. This article is based on the empirical analysis of a sample of 10 international companies which have recently launched KSM programmes or are currently working on launching such programs. It examines the difficulties these companies come up against when implementing such programmes and proposes to organize these difficulties around three dimensions: 1) the difficulties in implementing real supplier portfolio approaches; 2) the narrow view of value co-creation with suppliers, and 3) the persistent lack of integration of the purchasing function with other internal functions within the company. The conclusion of the article is that KSM is far from being a mere symmetric phenomenon of KAM. Several implications are then discussed in relation to the implementation of KSM programmes within companies.     

Improving Supplier New Product Development Performance: The Role of Supplier Development

Suppliers play an increasingly central role in helping firms achieve their new product development (NPD) goals. The literature implicitly assumes that suppliers are able to meet or exceed the quality standards and technological expectations of the firm, and yet, in practice, suppliers often lack the technological capabilities needed to undertake collaborative NPD. In such situations, a firm may choose to intervene and actively develop the supplier's technological and product development capabilities. We develop a theoretical framework that conceptualizes supplier development activities within interorganizational NPD projects as part of a bilateral knowledge‐sharing process: design recommendations, technical specifications, and new technology flow from supplier to the firm, and in turn, the firm can implement supplier development activities to upgrade the supplier's technological capabilities. Antecedents (supplier responsibility, skills similarity, single sourcing strategy) and consequences of supplier development activities (on supplier, product, and project performance) are examined using a sample of 153 interorganizational NPD projects within UK manufacturers. We find broad support for our hypotheses. In particular, we show that the relational rents (in the form of improved product and project performance) attained from supplier development activities in new product development are not achieved directly, but rather indirectly, via improvements in the supplier's creative and technological capabilities. Our results emphasize the importance of adopting a strategic view of the potential returns available from investing in the NPD capabilities of key suppliers, and provide clues about underlying reasons for the suboptimal experiences of many companies' collaborative NPD projects.     

Customer-supplier partnerships: Perceptions of a successful key account management program

Key account management (KAM) is regarded as one of the significant marketing trends over the last few years. This study investigated the perceptions of suppliers and key account customers regarding the success factors of customer-supplier partnerships. The results are reported from a survey of 92 suppliers and 98 key account customers. Analysis of the results indicates that suppliers and their key account customers have similar perceptions of the key success factors in the customer-supplier partnership. Finally, recommendations for the development or improvement of a KAM program are presented.     

Top management involvement with key accounts: The concept,its dimensions,and strategic outcomes

This research proposes a new conceptualization of top management involvement (TMI) in key account management (KAM) – i.e. the breadth and nature of the construct and the specific ways in which senior executives are involved in KAM, which is derived from organization theory and insights from 27 in-depths with KAM practitioners. These dimensions are grouped in two types: direct TMI involvement (through customer contact), and indirect TMI involvement (through decision-making and organizational alignment). The authors then survey 261 key account managers and conduct multiple regression analysis to examine how the dimensions of TMI relate to KAM outcomes. They find that top managers' social interaction with customers is more relevant than business-related interaction, which can even be detrimental when focused on tactical issues. The results also suggest that senior managers should support key account management by aligning the goals and procedures of the different functional areas in the company, and by participating in decision-making of strategic issues.     

Relational selling strategy and key account managers' relational behaviors: An exploratory study

Many companies see key account management as a potentially successful way to implement a relational strategy. Nevertheless, the literature suggests that strategy implementation at the sales force level is difficult to achieve, mainly because salespeople may not understand - nor accept - what they are requested to do. Despite their relevance, behaviors of key account managers have poorly been investigated. This article defines and tests a model of relational selling behaviors from the part of key account managers. Results show that the perception of the adoption of a relational selling strategy is associated with some specific key account managers' behaviors (customer-oriented selling, adaptive selling and team selling), but not with others (organizational citizenship behaviors). These findings suggest that potential discrepancies can exist between a relational selling strategy and its implementation at the key account manager level. Based on these results, theoretical and managerial implications are discussed.     

Organizational factors enhancing customer knowledge utilization in the management of key account relationships

Customer knowledge has become an important topic for both academicians and practitioners in recent years. However, there has been little academic research on the utilization of customer-specific knowledge. This study adds to our understanding in focusing on the relationships between various intra-organizational factors and customer knowledge utilization in the context of key account management. The results of the study show, that the use of teams, top management involvement, KAM formalization and CRM technology enhance the utilization of customer knowledge in the management of large industrial key account customers.     

The impact of buyer–supplier relationships on supplier innovativeness: An empirical study in cross-border supply networks

Drawing on organizational learning and the relational view of the firm, this study seeks to understand the factors that drive supplier innovativeness in the context of cross-border supply relationships. To address this research objective, a survey included 189 parts and components manufacturers (suppliers) in Turkey; hierarchical regression analysis is used to test the hypotheses. The findings demonstrate that interfirm knowledge sharing routines, relation-specific investments, and governance mechanisms may promote supplier innovativeness by expanding the supplier's knowledge resources and encouraging it to invest in innovative activities. In addition, this research emphasizes differentiating effects of the supplier's tier position for the impacts of buyer assistance and cooperative tie. As such, this study contributes to the purchasing and supply management literature by empirically showing how buyer–supplier relationships, particularly in cross-border supply networks, affect supplier innovativeness.     

Buyer attractiveness as a catalyst for buyer–supplier relationshipdevelopment

The concept of buyer attractiveness has received increasing scholarly attention in the recent business marketing literature, yet empirical studies of the dynamics between buyer and supplier attractiveness and their implications for relationship development are scarce. The research framework presented in this study suggests that buyer attractiveness is connected, first, to supplier's experienced and expected business outcomes within the focal relationship, and second, to the leverage impact of the focal relationship on supplier's other relationships. A qualitative case study of two buyers and their key suppliers scrutinizes the dimensions of attractiveness associated with relationship development. The findings indicate that attractiveness and adaptations performed by the buyer and the supplier are interlinked in a mutually reinforcing or deteriorating manner, forming a mechanism that catalyzes relationship development. These findings and the resultant empirically grounded framework provide a conceptualization and enhanced understanding of the dynamics between attractiveness, adaptations and relationship development.     

Key account relationships: An exploratory inquiry of customer-based evaluations

The management and retention of key accounts is imperative in facilitating a firm's long-term viability. Previous examinations of key account relationships have revealed valuable insights into the factors facilitating key account management and driving relationship strength. However, account managers often fail to recognize weaknesses within their existing key accounts and the sources of their relationship vulnerabilities. Utilizing an exploratory inquiry of in-depth interviews with 99 executive decision makers across 52 key accounts cases, the authors assess customer relationship evaluations prior to contract expirations for account retention opportunities valued at over $1.3 billion. Unique positive and negative drivers of key account relationship evaluations are identified in a thematic categorization, along with a subsequent content analysis highlighting their patterned associations with positive and negative relationship evaluations, future business intentions, and business referral behaviors. These patterned associations reveal that positive and negative perceptions of relational drivers often affect outcomes in a differential manner, resulting in a classification of conventional constructs, prevention constructs, and promotion constructs. The results indicate that the desire of a supplier to maximize positive relational outcomes or minimize negative relational outcomes is driven by distinct underlying associations and allow for insights into resource allocation strategies within key account relationships.     

Government,company, and dyadic factors affecting key account management performance in China: Propositions to provoke research

Key account management (KAM) literature over the past forty years has mostly focused on practices in North America and Europe. China-based KAM research will broaden the scope of analysis to one of the most compelling markets in the world. Our work with hundreds of Chinese KAM personnel representing numerous Western suppliers and Chinese suppliers guides our KAM research propositions for China. We offer propositions regarding conditions where Western suppliers are at a competitive advantage or disadvantage relative to Chinese suppliers. We emphasize the roles of government and of guanxi relationships and how these factors affect suppliers and key account (KA) behaviors including information sharing, demands placed by KAs, and KA retention. We further propose that these relationships are affected by the cultural match/mismatch between suppliers and their KAs.