Shifts in buyer-seller relationships: A retrospective on

One of the most highly cited papers in the Industrial Marketing Management journal was published 17 years ago, and proposed a strong linkage in the elements of buyer-seller trust, asset specificity, contracts, and supply chain performance. In this paper, explore the question of “what has changed”? We note that the emergence of 1) real-time analytic technologies, 2) new governance models that span multiple parties across organizations in a supply chain network, and 3) new digital innovation requiring partnering with new entities are required to produce end to end analytical capabilities. We offer three new propositions that provide some insights towards future research areas, and we also note that although interpersonal buyer-seller relationships will remain important, digital transformation is changing the nature of how these will unfold. Our propositions provide insights on how the role of technology and other shifts in the supply chain ecosystem is shifting the role of buyers and sellers in the industrial landscape. I offer these insights in the hope that they may provide a basis for future researchers to engage in research in the field of emerging industrial buyer-seller relationships, and devote this paper to the memory of Christian.     

Interpersonal attraction in buyer–supplier relationships: A cyclical model rooted in social psychology

The concept of attraction is not reserved for the study of interpersonal relationships between husband and wife, family members, or lifelong friends. On the contrary, it contains much potential as a variable describing interpersonal business exchange relationships. This potential has been noted by well-known industrial marketing scholars in the past, and recent theoretical advances have incorporated attraction to describe buyer–supplier exchange, although primarily at the interorganizational level of analysis. The in-depth understanding of interpersonal attraction between boundary spanners representing buying and supply companies has yet to be developed. By drawing on social psychology and social exchange literature, this paper attempts to fill some of this gap. It contributes by uncovering the elements and process of interpersonal attraction. Furthermore, propositions are formulated to guide future research efforts on interpersonal attraction in the buyer–supplier context. Finally, the managerial value and challenges of applying attraction to buyer–supplier exchange relationships are discussed.     

When Western measures meet Eastern perspectives: A prototyping analysis of xinren in buyer-seller relationships

This paper contributes to our understanding of xinren within buyer-seller relationships. Xinren is often translated to trust and is critical for the development of strong business relationships. Previous conceptualizations and measurements of xinren have been inconsistent and questionable. Through a novel methodology, prototyping analysis, this research outlines a foundational structure for xinren. A series of 4 studies were conducted on xinren in buyer-seller relationships in China involving a total of 311 participants who were employed in sourcing and procurement (33.23%) or marketing and sales (31.29%), and had spent less than one year working outside China. Central prototypical features include high arousal emotions highlighting the importance of affect-based aspects when developing xinren. Negative features indicate that both trust and distrust may be synergistically operating within xinren. Contributions are also made by outlining both universal trust features and more culturally-nuanced trust features. Suggestions for managers indicate how both Eastern and Western partners may use these results to build deeper trust within their relationships. Future research includes undertaking further prototyping analysis on trust within other cultures to develop foundational structures that may include both universal and culturally-nuanced trust features.     

Buyers' perspectives of buyer-seller relationship development

Long-term buyer-seller relationships have been a focus of research for several years. The present study draws on interaction/network theory to test a model examining the interaction mechanisms and relationship characteristics of buyer-seller relationships during four progressive phases of relationship development. Data from 174 members of the Institute for Supply Management offer empirical support for the associations proposed in the model, as well as some surprising results. One of the most useful findings of the research is that the patterns of these associations vary as buyer-seller relationships progress through the four phases of relationship development. Specifically: in the awareness phase, joint problem solving increases buyer uncertainty; in the exploration phase, communication quality and joint problem solving increase relationship-specific investments; and in the expansion phase, joint problem solving increases relationship-specific investments and severe conflict resolution increases buyer uncertainty. Seller reputation moderates many of these relationships. The major conclusion of the research is that buyers and sellers should recognize that while information exchange and conflict resolution are important aspects of buyer-seller relationships, their use may not always lead to the desired relationship characteristics. Managerial implications of these findings and further research ideas are presented.     

Development of special forms of B2B relationships: Examining the role of interpersonal liking in developing Guanxi and Et-Moone relationships

The paper examines the driving factors of two of the special forms of relationships that exist in Eastern countries namely Guanxi (China) and Et-Moone (Saudi Arabia). The paper argues that these special forms of relationships that have been found to significantly influence business-to-business relationships in these countries are primarily motivated by the presence of strong interpersonal liking. To do this, a conceptual model has been developed within which interpersonal liking is placed as the key mediating variable. The key outcomes of interpersonal liking are trust and Guanxi (in the Chinese sample) and Et-Moone (in the Saudi sample). Because Guanxi has received significant attention both conceptually and empirically, the research started by conducting in-depth interviews in Saudi Arabia to further explore the concept of Et-Moone. Survey data was collected from 401 businesses in China and Saudi Arabia. Using structural equation modelling, the model has been supported in both samples. The findings show that interpersonal liking plays a crucial role in the development of Guanxi and Et-Moone. Managerial implications and future research are discussed.     

An Exploratory Model of Interpersonal Cohesiveness in New Product Development Teams

There has been a heavy emphasis in new product development (NPD) research on intrateam issues such as communication, trust, and conflict management. Interpersonal cohesiveness, however, has received scant attention. In addition, there are conflicting findings regarding the effects of close‐knit teams, which seem to have a beneficial effect up to a point, after which the tight bond becomes a detriment. This paper addresses these issues by introducing an exploratory model of interpersonal cohesiveness→NPD performance that includes antecedents, consequences, and moderating factors. Antecedents of interpersonal cohesiveness include clan culture, formalization, integration, and political dominance of one department, while consequences are groupthink, superordinate identity, and, ultimately, external/internal new product (NP) performance. The relationships among interpersonal cohesiveness, groupthink, and superordinate identity appear to be influenced by two moderating factors: team norms and goal support. Additionally, product type is identified as a moderator on the effects of both groupthink and superordinate identity on external NP performance. The model is built from two sources: a synthesis of the literature in small group dynamics and NPD, and qualitative research conducted across 12 NPD teams. Individual team leaders were interviewed first, followed by interviews with two additional members on each team, for a total of 36 interviews. In keeping with the goals of qualitative research, the interviews and analysis were used to identify and define aspects of interpersonal cohesiveness rather than to test a preconceived model. Representation of different industries and product types was sought intentionally, and variance in NP innovativeness as well as in NP market success/profitability became key criteria in sample selection. The exploratory model and propositions developed in this study provide a framework for understanding the role of interpersonal cohesiveness in NPD teams and its direct and indirect effects on NP performance. Although a significant amount of research on cohesiveness has been conducted in previous studies of small groups, the narrow laboratory settings of that research have limited the generalizability of the findings. This study therefore serves as a useful starting point for future theory development involving interpersonal cohesiveness in NPD. It also provides a guide for managers in dealing with team cohesiveness.     

The challenge of communicating reciprocal value promises: Buyer-seller value proposition disparity in professional services

This study explores the communication of reciprocal value propositions in buyer-seller interaction and examines whether each party's value proposition is congruent with the value sought by their respective counterpart. Through 31 in-depth interviews with customers and salespeople from six professional service organizations, it was found that while both parties deliberately articulate value propositions, thereby initiating the co-creation process, there are some surprising disparities in the value dimensions offered by the salesperson. Although the customer's value proposition is largely consistent with the value sought by the seller, a marked discrepancy was encountered in the reverse case (i.e. between the seller's value proposition and the buyer's desired value). These findings indicate a significant misalignment between the seller's value proposition and actual co-creative behavior that can impede the subsequent collaboration and resource integration between the two parties, which could lead to customer dissatisfaction and potentially even service failure.     

Value creation in the relationship life cycle: A quasi-longitudinal analysis

Among the growing literature on value creation in collaborative buyer-seller relationships, most researchers examine relationship value at a single point in time. In the present research, we explore whether different stages of the relationship life cycle moderate the relative importance of value-creating dimensions. To shed light on the dynamic nature of value in B2B relationships, we present the results of a survey among purchasing managers using a quasi-longitudinal research design. Our findings confirm the moderating role of the relationship life cycle in value creation. More precisely, our results indicate that a key supplier's potential for value creation in customer's operations increases in relative importance as relationships move through the life cycle. In turn, supplier's capabilities to create superior value at the level of the customer's sourcing process display a decreasing role over the life cycle of a business relationship. No significant link was found in the present study between value creation through a supplier's core offering and different stages of a buyer-seller relationship.     

The significance of trust and renqing in the long-term orientation of Chinese business-to-business relationships

While business relationships with China are receiving increased attention in both practitioner and academic discourse, very little empirical work however, has been undertaken to isolate and examine measures that focus on business-to-business relationships, and as such, research in this area is somewhat scant. In an attempt to bridge this gap, and add to the knowledge in this emerging discipline, the research aims to develop a conceptual framework to explore the relationship between trust and the long-term orientation in Chinese business-to-business market relationships. Based on a survey with Hong Kong companies that have a buyer-seller relationship with Chinese companies, the empirical findings indicate the mediating role and significance of ‘renqing’ for enhancing trust and contributing towards the long-term stability in relational exchange. The results highlight several implications for practicing managers to consider when aiming to establish and develop relationships in a Chinese business-to-business context.     

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.     

Stability factors in industrial marketing channels

This article is based on the notion that buyer-seller relationships can only be understood as part of the channel in which they are located. This article is also concerned with the factors that stabilize both the relations between individual companies and the channel as a whole. Some suggestions on how channels may be changed are also presented.     

Supplier market orientation and accommodation of the customer in different relationship phases

As customers' needs have changed rapidly, market orientation has become a more primary focus of marketing literature. This study explores the strategies market-oriented suppliers use to accommodate customer needs. In addition, because buyer-seller relationships proceed through phases characterized by distinct behaviors, this study explores the relationship between market orientation and accommodation strategies over the course of the buyer-seller relationship lifecycle. The results show that market-oriented firms use flexibility and relationship-specific adaptation as accommodation strategies. Also, three market orientation components (customer orientation, competitor orientation, and interfunctional coordination) relate differently to flexibility and relationship-specific adaptation during the relationship lifecycle. Finally, accommodation strategies significantly mediate the effects of the three market orientation components on customer satisfaction. Thus, market-oriented firms can satisfy their customers and avoid an overreliance on current relationships by emphasizing either flexibility or relationship-specific adaptations that correspond to the lifecycle of the relationship.     

Building commitment in buyer-seller relationships: A tie strength perspective

The strength of inter firm buyer-seller ties is vital to understanding the formation of commitment. Drawing upon the tie strength sociology and embeddedness literature, this study conceptualizes four dimensions of tie strength and examines their effects on the buyer firm's commitment to the selling firm, as well as the impact of commitment on favorable buyer behavior. A survey of 119 buyer organizations reveals that three of the four identified properties of tie strength (reciprocal services, mutual confiding and emotional intensity) are positively related to buyer commitment to the selling organization. Interestingly, the strongest relationship was found between emotional intensity and commitment — an understudied dimension of buyer-seller relationships. This study contributes to the B2B relationship marketing literature by increasing our understanding of the differential effects of behavioral and emotional aspects of ties on commitment. The study suggests to managers in manufacturing firms to develop strong behavioral and emotional ties with buyer firms in their relationship marketing strategy.     

组织间关系演进：三维契约、路径和驱动机制研究

组织合作是常态。如何构建高效的组织间关系是现代组织战略面临的重大挑战和关键问题。文章从组织间关系内在建构出发,表明组织间关系演进实质是显性契约、关系契约、心理契约的进阶过程。以此为基础,指出组织间关系演进遵循信任、关系依存、承诺路径,而复杂动态性、组织文化及网络嵌入则是组织间关系契约进阶和演变路径的动力机制。并分别结合三对组织间关系的演进实例对演进内在机理进行了验证性分析,从而为剖析纷繁芜杂的组织间关系提供了新视角和关系构建思路。     

Tell me a story: The role of narrative transportation and the C-suite in B2B advertising

This research investigates stories about buyer-seller experiences in B2B advertising. In two studies, the authors explore the impact of stories and narrative transportation in advertising on decision makers’ attitudinal responses. In Study 1, findings from a Fortune 100 company’s buyer panel indicate that stories told using narrative advertising were positively related to the decision maker’s trust in the supplier, ability to form personal connections with the supplier and the tendency to advocate for the supplier. Moreover, the organizational status of the decision maker (C-suite versus non-C-suite executives) was examined. Results demonstrate that the effect of these relationships were stronger for C-level decision makers than non-C-level decision makers. In Study 2, depth interviews were conducted with C-level decision makers. Findings reinforce results from Study 1 and provide additional insight into C-level decision makers’ perspectives on stories and narrative transportation. Implications for how stories about buyer-seller relationships can benefit organizational decision making are discussed.     

Conceptualizing and modeling interpersonal trust in exchange relationships: The effects of incomplete model specification

The importance of interpersonal trust in exchange relationships is well-established, and trust is known to have two important and distinct underlying forms, one cognitive, the other affective. Despite this, trust studies often model only the cognitive task-related form and omit the affective form. This article achieves two main objectives. First it demonstrates that interpersonal trust is best considered a bidimensional construct consisting of both cognitive and affective components, and that omitting either form of trust from empirical studies is a conceptual and specification error. Second, we reveal that both forms explain a large amount of variance in the quality of exchange relationships. Also, studies omitting affective trust ignore the more potent of the two trust dimensions. In addition, models examining only one form of trust strongly inflate the apparent effects of that form, and are diagnostically unsound. Our results have important theoretical and managerial implications regarding the conceptualization and measurement of interpersonal trust, and its role in improving the effectiveness of exchange relationships.     

From relationships to partnerships—new forms of cooperation between buyer and seller

An increased focus on operational performance and the reliance on fewer suppliers by industrial customers call for a higher quality of buyer-seller relationships.This article elaborates on economic explanations for value generated partnerships and describes the distinctive qualities of partnerships as something more than ordinary customer relationships. Particular attention is paid to the managerial implications and pitfalls awaiting companies when pursuing a partnership approach and a definition of vertical partnerships is provided.     

The effect of social conflict on relationship loyalty in business markets

This study examines the impact of perceived social conflict on existing buyer-seller relationships. The results indicate that as the level of social conflict increases, perceptions about the loyalty of the relationship decrease. Perceived importance of the relationship had no impact on conflict or relationship loyalty. Ramifications of these findings for selling, sales management, and sales training are discussed.     

Managing the trade-off between relationships and value networks. Towards a value-based approach of customer relationship management in business-to-business markets

The management of buyer-seller relationships was an early antecedent to the development of customer relationship management (CRM) concepts. Currently, CRM concepts are being challenged by the rise of value networks. Value networks can and, often, do interfere with customer relationships and thereby call for a broader range of concepts to analyze and understand relationship management and the influence of value networks on relationships. This introductory article describes the nature of the problem between relationships and value networks, reviews the current state of research, and describes the contributions of the articles presented in this special issue on CRM in business-to-business markets.     

Evolution of B2B relationship stages in China: A study of confucianism philosophy

This study aims to explore the development of business relationships from an interactional perspective, which challenges the conventional time-based view in Western contexts. Twenty in-depth interviews with Chinese SME managers reveal the uniqueness and importance of the operationalization of Confucian virtues, the guiding principles, and mechanisms for social interactions and trading practice, in developing Chinese business to business (B2B) relationship stages (i.e., discernment, authentication, stabilization, and decoupling). Given the role of Confucian virtues and their dynamics for the development of business relationships, we further argue that the evolution of a relationship depends on the shifts in concerns of transactional and relational governances among business partners. Our propositions advance the literature by showing that distinct constructions of Confucian virtues mark a vantage point for business operators and practitioners in formulating effective B2B relationship strategies in China, and raising future research questions of the impacts from sub-evolutions in Confucian virtues on B2B relationships.