Relationship Management Maturity

This chapter introduces the notion of RM maturity. The first section clarifies the role of the maturity concepts in management science and presents the design of a systemic theoretical inquiry into RM maturity. In total, 13 RM-related themes were qualified to become the content of the RM maturity concept. The second section discusses the themes grouped in the strategic dimension of RM, including Service-Dominant Logic (SDL) as the most distinctive and consistent theme in this group. A brief theory-integrative discourse is given about the interplay between RM and SDL as permeable paradigms embedded in the RBV and dynamic capabilities theories. The third section discusses the roles of interdepartmental and departmental processes and ICT in defining RM maturity. The chapter concludes with the preliminary proposal of the RM maturity model fitted into the broad definitional basis of RM.

Theoretical Foundations of the Relationship Management Mid-Range Theory

In this chapter the domain of relationship management (RM) is discussed and the notion of the RM mid-range theory is introduced. The first section highlights the socio-economic duality of RM and presents the core characteristics of the RM business model. The diversity of partly overlapping relational constructs is commented on, and a uniform semantic programme for RM is proposed that links the notion of relationship capital and three RM dimensions: structural, psychological and behavioral. In the second section, the role of mid-range theories in linking macro and micro theoretical levels is presented. The theoretical boundaries (the content) of the envisioned RM mid-range theory are outlined, which link the RM business model, the key relational activities and approaches, and business performance. A hypothetical system of theories for competitive advantage is drafted, where the general theory level is occupied by the Resource-Advantage Theory of Competition followed by the upper mid-range theory level; where the RM mid-range theory is placed, completed by the specific market type mid-range theory level; and where network-based and market-based relational theories are positioned.

Research on the Competitive Advantage of the Firm

This chapter introduces the notion of competitive advantage in multiple research perspectives of the dominant strategic management schools, and references the academic discourse on the fundamental issue of the locus of competitive advantage. Its first section briefly presents exemplary attempts to organize the body of knowledge on the theory of the firm, including strategic management as an associated theory, and argues why the notion of competitive advantage lies at the heart of this book’s research agenda. In the second section, the dispute between the proponents of Industrial Organization Economics and the Resource-Based View is recounted. Following this, the relationship approach is introduced as a concept that facilitates market coordination based on cooperation.

Developing the Relationship Management Upper Mid-Range Theory

This chapter presents the final proposal of the RM maturity model and proposes a robust framework for the upper RM mid-range theory. The first section synthesizes and explains the mutual connections of distinct RM activities and approaches of an RM-mature firm. A quick test for RM maturity is proposed. The second section introduces the notion of an RM niche, which is needed to explain why moderate proficiency in RM yields no significant advantages and why the relationship between what a company does in terms of RM and achieving a sustainable competitive advantage is highly curvilinear. The universal factors that determine the size of an RM niche and thus the size and scope of RM-mature firms are proposed and discussed. The third section provides eight examples of companies illustrating different facets of RM ‘in motion’ and serves as supplementary qualitative material to study the diverse challenges in managing relationships.

Validating the Relationship Management Maturity Concept

This chapter operationalizes and tests the preliminary proposal of the RM maturity model in field research. The first section discusses the design of the 40-question questionnaire, which aims to verify the links between RM maturity and sustainable competitive advantage. Different classes of research biases are addressed on a semantic level, and a scoring method based on the Net Promoter Score methodology is introduced. The second section presents the analytical strategy and the design of the empirical test, encompassing the self-reporting of business respondents and machine learning analytical techniques. The product of this analysis is a set of association rules, which separate a ‘basket’ of 10 critical RM activities and approaches linked by 16 rules, typically in a reciprocal way. The third section comments on the detailed empirical results on RM maturity and sustainable competitive advantage, which are found to be much in line with business ethics. The hallmark of an ethical RM-mature firm is open internal vertical and horizontal communication, which enables the company to be a meaningful partner in the relationships with its customers and other stakeholders.