Coopetition and framework contracts in industrial customer-supplier relationships

2014 ◽  
Vol 17 (1) ◽  
pp. 43-57 ◽  
Author(s):  
Sylvie M. Lacoste
Keyword(s):  
Price Competition ◽  
Supplier Relationships ◽  
Content Type ◽  
Industrial Setting ◽  
Key Accounts ◽  
Effective Use ◽  
The Relationship ◽  
Business To Business

Purpose – The paper aims to investigate how business-to-business key accounts deal with the consequent tension between cooperation and competition, and how they can resolve that relational paradox, using framework contracts. Design/methodology/approach – The paper argues that the role played by framework contracts can be ambivalent: as a tool to define cooperation with suppliers while simultaneously organising competition within suppliers, but by formalising such ambivalence, it does help to ease the tensions that may arise. To clarify such a conceptual and counter-intuitive ambivalence, the paper uses a case study that shows how framework contracts are used to solve the inherent tensions between cooperation with “preferred suppliers” and their price competition with invited “challengers”, in a competitive bidding situation. Findings – This study is a first step in an investigation of the role of framework contracts in a customer-supplier relationship, aiming to explain their use as they highlight the “coopetitive” nature of the relationship, turning it into something tangible and psychologically acceptable. Research limitations/implications – Because of the complexity of vertical “coopetition” and the research method adopted, the findings may not be generally applicable. Practical implications – This research offers an enlarged perspective for suppliers as well as customers to think over their own relationships (in an industrial setting). Originality/value – Little research has been conducted to date on vertical coopetition and the role and effects of framework contracts in the context of such complex customer-supplier relationships. This case study offers insights for practising managers and academics into the effective use of framework contracts.

Corporate associations in B2B: coping with multiple relationship-specific identities

IMP Journal ◽  
2016 ◽  
Vol 10 (1) ◽  
pp. 172-188 ◽  
Author(s):  
Antonella La Rocca ◽  
Ivan Snehota
Keyword(s):  
Multiple Identities ◽  
Business Networks ◽  
Supplier Relationships ◽  
Content Type ◽  
Distinctive Features ◽  
Business Context ◽  
Corporate Associations ◽  
The Relationship ◽  
Business To Business

Purpose – The purpose of this paper is to explore how corporate associations emerge in business networks focusing on mutually attributed identities in customer-supplier relationships. The role of the mutually perceived identities for interaction behaviours of the parties is examined and consequences of multiple emergent identities for management are discussed. Design/methodology/approach – The paper is a conceptual one starting from an overview of prior research on corporate associations in marketing, findings on distinctive features of business markets and review of studies on identity in interaction processes. Findings – Departing from various strands of research on the origin and role of corporate associations in the literature the authors argue that corporate associations, in business networks are relationship specific and continuously emergent, and that businesses acquire multiple identities in relation to main stakeholders as customers and suppliers. The relationship specificity, emergent nature and multiplicity of relationship-specific identities have consequences for management. Originality/value – This study is among the few that explore the role of corporate associations in business-to-business context. It results in two propositions: first, that corporate associations are relationship specific and continuously emergent and, second, that businesses operating in business networks have to cope with multiple relationship-specific identities. Both propositions are original and contribute to the understanding of dynamics of business relationships and networks.

How does renqing influence purchase intentions in the Chinese business-to-business context?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xun Zhang ◽  
Biao Xu ◽  
Jun Wu
Keyword(s):  
Positive Relationship ◽  
Purchase Intentions ◽  
Moderating Effect ◽  
Content Type ◽  
Mediating Role ◽  
Chinese Business ◽  
The Relationship ◽  
Business To Business ◽  
Positive Effect

Purpose This study aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese business-to-business (B2B) context. Design/methodology/approach Renqing in China has played an important role in business relationships and has been receiving increased attention in both practice and theory. However, little is known about whether it can influence purchase intentions in a rational B2B condition. This research aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese B2B context. Based on a survey of 1,010 industry buyers from 468 Chinese downstream buyer companies, the empirical findings indicate a positive relationship between renqing and purchase intentions and the mediating role of long-term orientation (LTO) for increasing purchase intentions. In addition, this study also finds that product involvement (PI) has a negative moderating effect on the relationship between renqing and purchase intentions, which means that renqing has a big positive effect on purchase intentions in low PI conditions. The results highlight several implications for B2B companies that sell products to Chinese enterprises. Findings The empirical findings indicate a positive relationship between renqing and purchase intentions and the mediating role of LTO for increasing purchase intentions. In addition, this study also finds that PI has a negative moderating effect on the relationship between renqing and purchase intentions, which means that renqing has a big positive effect on purchase intentions in low PI conditions. Originality/value First of all, by answering the research question, this study shows that renqing has a positive effect on purchase intentions in Chinese B2B context. Second, this study elucidates the influence mechanism of renqing on purchase intention and identifies the mediating effect of LTO and the moderating effect of PI.

Purchasing behaviour and supplier base evolution – a longitudinal case study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anna Dubois ◽  
Lars-Erik Gadde ◽  
Lars-Gunnar Mattsson
Keyword(s):  
Design Methodology ◽  
Longitudinal Case Study ◽  
Short Term ◽  
Supplier Relationships ◽  
Content Type ◽  
Research Findings ◽  
Purchasing Behaviour ◽  
Time Periods

Purpose The purpose of the paper is to describe and analyse the evolution of the supplier base of a buying firm and the reasons behind these changes. Design/methodology/approach The paper is based on a case study of the changes over 52 years in a sub-set of the supplier base of a firm manufacturing fork-lifts. Findings The study shows that some relationships feature substantial longevity. However, the duration of one-third of the total relationships is shorter than five years. There was considerable variation over time in the dynamics of the supplier base in terms of entries and exits of suppliers. Owing to this variation, research findings and conclusions in short-term studies are heavily dependent on the specific conditions at the time of the study. Finally, no less than one-fourth of the terminated supplier relationships were reactivated later. Research limitations/implications The study was designed in a time when purchasing was considered entirely from the perspective of the buying firm. Further studies, therefore, must increasingly emphasise the role of suppliers and the interaction in the buyer–supplier relationships, as well as the embeddedness in networks. Originality/value The findings of the study are unique in two ways. First, they are based on systematic observations over more than 50 years. Second, the study involves the purchases of 11 components representing different technical and economic features. The (few) previous studies are based on much shorter time periods and involves fewer suppliers/components. Moreover, the findings regarding re-activation of terminated relationships represent unique contributions.

Implementation and adoption of CRM and co-creation leveraging collaborative technologies

2020 ◽  
Vol 12 (1) ◽  
pp. 113-132
Author(s):  
Neeraj Kumar Dubey ◽  
Preeti Sharma ◽  
Purnima Sangle
Keyword(s):  
Customer Orientation ◽  
Real Life ◽  
Customer Relationship ◽  
Case Study Method ◽  
Content Type ◽  
Collaborative Technologies ◽  
Customer Centricity ◽  
The Relationship

Purpose This paper aims to study the role of the emerging technology landscape and collaborative platforms in customer relationship management (CRM) unravelling novel opportunities for mutual co-creation in Indian banking context. Design/methodology/approach This study used the case-study method for collecting various sources for “triangulation”. Findings The advancement of technology has drastically increased avenues of dialogue and access and brought transparency in the relationship, offering opportunities for co-creation and increased dependence on technology in CRM. A longitudinal approach explained how bank leveraged technology in multiple aspects of CRM for enhancing relationship quality and outcome. Research limitations/implications The study is exploratory in nature in Indian banking context, and thus it should be viewed as a preliminary step in contributing to the understanding of CRM in a new collaborative technology landscape. Practical implications This study explains the changing shape of CRM and provides relevance of customer orientation and offers insight about co-creation which has taken centre stage because of the emergence of collaborative technologies. Originality/value This study is possibly one of the first to conduct a case study to understand the way collaborative technological advancements are being exploited by organisations to develop superior CRM capability and achieve co-creation. This study analysed and comprehended the design and implementation of CRM in an Indian bank in real-life settings to gain a better understanding of the adoption of new collaborative technological advancements by a bank for customer centricity and facilitating co-creation.

The role of suspicion in B2B customer entertainment

2016 ◽  
Vol 31 (5) ◽  
pp. 565-574 ◽  
Author(s):  
Jared Oakley ◽  
Alan J. Bush
Keyword(s):  
Design Data ◽  
Negative Attitudes ◽  
Content Type ◽  
Customer Perspective ◽  
Customer Attitudes ◽  
The Relationship ◽  
Business To Business ◽  
Potential Customers ◽  
Larger Sample

Purpose The purpose of this paper is to conduct an exploratory study of potential business-to-business (B2B) customers that includes an empirical analysis that investigate the effect that customer entertainment has on customer suspicion toward the salesperson, and how those negative attitudes are influenced by the relationship stage and the perceived cost of the event. Design/methodology/approach Using an experimental design, data were collected from 105 potential customers working in a B2B environment that assessed their attitudes regarding offers of varying levels of customer entertainment across differing stages of the relationship. Findings Results demonstrate that B2B customers have important perceptions regarding the perceived cost of customer entertainment offers by salespeople. Those evaluations resulted in a positive relationship between customer attitudes of suspicion toward the salesperson and the perceived cost of the entertainment event. However, the stage of the relationship tended to ameliorate suspicious attitudes of customers, although not in a completely symmetrical manner. Research limitations/implications Additional testing with larger sample populations would better solidify the existence of the relationships. Practical implications This study provides a framework for practitioners that gives direction to the strategic use of customer entertainment such that it acts as a relationship catalyst, and not a relationship poison. Originality/value The paper uses a customer perspective to fill a need to better understand the instrumental role of customer entertainment in relationship marketing, and how it interacts with the perceived cost of the event and relationship stage to create differing customer attitudes.

Power relations and the accounting system in the Archbishop’s Seminary of Siena (1666-1690)

2019 ◽  
Vol 32 (2) ◽  
pp. 401-420
Author(s):  
Michela Magliacani ◽  
Roberto Di Pietra
Keyword(s):  
Power Relations ◽  
Accounting System ◽  
Religious Institutions ◽  
Local Power ◽  
Content Type ◽  
And Control ◽  
Flow Of Information ◽  
The Relationship

Purpose Accounting can affect and determine power relations. Previous studies have emphasized how accounting has been used by “central” powers; less is known from the perspective of “local” power and its capacity to resist and protect its interests. The purpose of this paper is to investigate the relationship between the Archbishop’s Seminary of Siena (ASS) (local) and Roman ecclesiastic institutions (central). This study contributes to filling the existing gap in the literature regarding how accounting could be used as a tool for deception in local/central power relations. Design/methodology/approach The research methodology is based on a case study and archival research. The ASS case study was analyzed through its archive, made up for the most part of accounting books. As to the approach adopted, the authors used the Foucault framework to observe power relations in order to identify possible ways in which accounting can be employed as a factor of deception. Findings Power relations between the ASS and Roman ecclesiastic institutions were maintained through a system of reporting that limited the influence of the ecclesiastical power of Rome over the Seminary’s administration and control. The relationship thus runs contrary to the findings in previous studies. The accounting system was managed as a factor of deception in favor of local interests and the limitation of central ecclesiastic power. Research limitations/implications This study contributes to enhancing the existing literature on governmentality, proposing a different perspective in which power relations are based on the use of accounting. The Foucaldian approach demonstrates its validity, even though the power relations under consideration have the unusual feature of occurring within the context of religious institutions. Originality/value This study on the ASS has allowed the identification of two relevant points: the local/central dichotomy is consistent with the logic of power relations as theorized by Foucault, even in cases where it highlights the role of a local power in limiting the flow of information to a central one; and the ASS accounting system was used as a factor of deception.

A customer engagement framework for a B2B context

2018 ◽  
Vol 33 (1) ◽  
pp. 145-152 ◽  
Author(s):  
Youmna Mohamed Abdelghany Youssef ◽  
Wesley J. Johnston ◽  
Talaat Asaad AbdelHamid ◽  
Mona Ibrahim Dakrory ◽  
Mohamed Galal Soliman Seddick
Keyword(s):  
Customer Equity ◽  
Customer Relationship ◽  
Three Dimensions ◽  
Customer Engagement ◽  
Content Type ◽  
Equity Value ◽  
Comprehensive Framework ◽  
The Relationship ◽  
Business To Business

Purpose The purpose of this study is to investigate conceptually the relationship between the customer’s engagement and equity and to determine whether customer engagement could be positively enhanced by business-to-business (B2B) firms to maximize their customer equity, through examining the role of cognitive, emotional and behavioral engagement. Design/methodology/approach This paper is built on the evolving marketing literature and proposes a comprehensive framework that uses a multidimensional conceptualization for the customer’s engagement and equity constructs; examines the relationships between customer satisfaction, commitment, trust and involvement and customer engagement; and specifies the specific customer engagement dimensions – cognitive, emotional and behavioral – as key mediators of the engagement–equity relationship. Findings This paper indicated that customer engagement is a multidimensional construct with three dimensions: cognitive, emotional or behavior engagement. Customer’s satisfaction, commitment, trust and involvement would be regarded as antecedents to customer engagement, whereas customer equity would be regarded a consequence for customer engagement. In addition, this paper identified three drivers of customer equity – value, brand and relationship equities – based on reviewing the previous studies. Originality/value This paper integrates philosophies from previous marketing studies of customer relationship management and customer engagement and equity into a B2B environment in a more customer-centric approach.

Style and substance: a case study of the expansion of mature business-to-business relationships in the Italian clothing industry

2017 ◽  
Vol 32 (1) ◽  
pp. 153-166 ◽  
Author(s):  
Mariachiara Colucci ◽  
Marco Visentin
Keyword(s):  
Demand Uncertainty ◽  
Clothing Industry ◽  
Business Relationships ◽  
Social Dimensions ◽  
Content Type ◽  
Relational Continuity ◽  
Business To Business ◽  
The Empirical Analysis

Purpose This paper aims to propose a model of the determinants of the expansion of mature business-to-business relationships in the downstream channel of the Italian clothing industry. The authors investigate the role of both economic and social determinants of retail buyers’ intentions to expand their relationships with a seller. Design/methodology/approach The empirical analysis is based on surveys of more than 150 retail buyers in mature relationships with a major clothing company. This context offers a unique opportunity to explore the interplay between the need for stable relationships and the need to continuously innovate to satisfy consumer demand, given rapidly changing tastes and styles, which can inhibit relationship expansion. Findings Buyers’ intentions to expand relationships are primarily determined by the absence of a formal agreement with the seller. Perceptions of a seller’s goodwill seem to overshadow the detrimental effects of two likely sources of opportunism in the clothing industry: demand uncertainty and the availability of alternative suppliers. Findings also provide evidence of a substitutive effect of formal control and trust in mature business relationships. Originality/value The authors provide insights into the dynamics of mature business relationships with a focus on expansion, rather than just the propensity for relational continuity, and they show how the interplay of transaction costs and social dimensions leads to this expansion. The authors also provide empirical evidence of a context, the clothing industry, where downstream relationships represent an important source of competitive advantage.

Crisis communication in key account relationships

2014 ◽  
Vol 19 (3) ◽  
pp. 234-246 ◽  
Author(s):  
Satu Nätti ◽  
Suvi Rahkolin ◽  
Saila Saraniemi
Keyword(s):  
Crisis Communication ◽  
Communication Strategy ◽  
Content Type ◽  
Future Studies ◽  
Account Management ◽  
Key Account ◽  
The Relationship ◽  
Business To Business ◽  
Practical Implications

Purpose – A deliberate and planned crisis communication strategy is an important part of key account management. The purpose of this paper is to draw links between key account managers (KAM) and crisis communication and explore the elements critical to crisis communication in key account relationships. Design/methodology/approach – The approach is qualitative. Data were gathered from people experienced in crisis communication and responsible for strategic accounts. The paper analysed managers’ stories of crisis processes and related communication in relationships. Findings – Successful crisis communication requires an open and active crisis communicator, one willing to solve problems, and also the company being a partner worth trusting and the retention of the relationship being worthwhile for the customer. Research limitations/implications – The present study focuses on the managerial view, and therefore a dyadic approach is suggested for future studies. Practical implications – The role of the KAM as a crisis communicator and primary identifier of the crisis is emphasized. Originality/value – Existing crisis communication discussions have been very media focused. This study focuses on the key account relationship and the related crisis communication. In addition, although earlier studies examine the influences of crises on business relationships (e.g. Salo et al., 2009; Thiessen and Ingenhoff, 2010; Tähtinen and Vaaland, 2006), research on crisis communication in business-to-business key account relationships is still scarce. The results will help to understand the characteristics of crisis communication in key account relationships and enhance communication with strategic accounts.

The nature and role of different types of commitment in inter-firm relationship cooperation

2015 ◽  
Vol 30 (1) ◽  
pp. 45-59 ◽  
Author(s):  
Neeru Sharma ◽  
Louise C Young ◽  
Ian Wilkinson
Keyword(s):  
Value Creation ◽  
Management Practice ◽  
Relationship Management ◽  
Supplier Relationships ◽  
Content Type ◽  
Industrial Marketing ◽  
Effective Relationships ◽  
Relationship Processes ◽  
Business To Business

Purpose – This paper aims to consider the nature and role of commitment in delivering value in customer–supplier relationships by developing and testing a model of relationship cooperativeness. Design/methodology/approach – Data were collected using an extended version of the Industrial Marketing and Purchasing (IMP2) Group’s instrument. Pre-qualified managers largely self-completed the survey. Model associations were tested via regression and causal path analysis. Findings – Various aspects of commitment play differing roles in relationship development. The role of commitment was less than expected; the exception is value-based commitment which is strongly associated with value creation, conflict management, trust and cooperation. Research limitations/implications – Findings provide explanations for some inconsistencies in previous findings including reported relationships between trust, cooperation and commitment. The composition of the commitment construct(s) strongly influences relationship processes. Practical implications – There are various kinds of commitment to build and multiple pathways to levering this into more effective relationships. In addition, an important part of these findings is strong indications that illustrate what the nature of ineffective commitment-building paths is likely to be. This is extremely important for managers in guiding deployment of relationship management resources and developing relationship management practice. Social implications – The regulation of close business-to-business relationships remains an important issue, and the ways in which commitment can be appropriately extended are an important part of this. Originality/value – This work focuses on the components of commitment in ways that previous work has not. The centrality of commitment in relationship value creation – beyond increased sales and revenue and predictability – is highlighted, and there is considerable extension to the understanding of the nature of this process.

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