PurposeBy analyzing organizations as social actors and business relationships as social relationships, sociology can improve business relationship management. This paper aims to explore the issues involved.Design/methodology/approachA business relationship is an interactive exchange between two organizations embedded in a network of business connections. The paper reviews theories of social actions and social actors and the concepts of economic field and embeddedness to illustrate some social dimensions of business relationships.FindingsSocial action and social actor theories emphasize that co‐operation is always encumbered with conflicts, that consciousness about the relationship is fundamental for both strongly and weakly structured actors, and that actors (people involved in a business relationship) always have some freedom of manoeuvre. The concept of economic field underscores the specificity of each business relationship and the critical need for concrete analysis. The concept of embeddedness highlights that no business relationship is possible without personal bonds.Research limitations/implicationsThese are the first results of a deeper and broader research directed towards a conceptual model of business relationship management.Practical implicationsThe paper can help managers to analyze more deeply the social dimensions of business relations with both suppliers and buyers. Consciousness, the ongoing presence of conflicts, the unavoidable role of personal bonds, and interactivity are always relevant in business relationship management.Originality/valueThe paper integrates sociological and business marketing approaches. It applies essential sociological theories and concepts to business relationship management.
Collecting rich qualitative data in business-to-business market context, where respondents are more reluctant towards investing time in academic research, may impose several barriers for researchers. In particular, challenges may emerge in collecting data and establishing its trustworthiness in Central Eastern European (CEE) countries, due to a distinct business context that has developed over several historical instances.The aim of this paper is to investigate and understand the methodological challenges of collecting rich qualitative data on business relationships and networking in CEE countries. The countries in focus are Russia, Croatia and Hungary. In order to achieve our aims, we critically reflect on personal experiences and consult the literature on conducting research in the aforementioned countries. The contribution of the paper lies in implications for methodological specifics and plausible solutions to overcome barriers to conducting qualitative research on business relationships and networks in CEE countries.
Purpose The main goal of the paper is to describe the knowledge interconnection process embedded in an interactive business relationship. The purpose of this study is to understand the knowledge interconnection inside the supplier-buyer relationship in the field of contract manufacturing. The knowledge interconnection process is defined by the authors as a process linked to business relationships, which contains different types of knowledge and various sub-processes related to them. Design/methodology/approach The Industrial Marketing and Purchasing Group (IMP) research framework has been applied and the contribution is a better understanding of the role of knowledge in the interactive business world. The empirical evidence is based on a case study of a Hungarian contract manufacturing company. This paper describes empirical, qualitative research about knowledge interconnection processes applying an abductive research design. Findings The knowledge interconnection process is linked to business relationships. It is a complex process, which contains three types of knowledge and five sub-processes. The knowledge evolution indicates the links between the different types of knowledge. The sub-processes relate to different types of knowledge and allow the flow of knowledge between the supplier and the buyer. In the business relationship, this flow of knowledge makes possible the new knowledge creation. A model of the knowledge interconnection process has been developed. Research limitations/implications Single case studies can create rich descriptions of complex phenomena, but the possibility for generalization is limited. Another limitation is that the knowledge interconnection process has been studied only from the supplier’s perspective. The present research extends IMP’s knowledge of embedded knowledge. In addition, empirical research contributes to the emerging field of IMP research that explores knowledge as a resource but lacks an empirical foundation. Practical implications The knowledge interconnection process is a decisive factor in the development and maintenance of long-term customer relations in the field of contract manufacturing. The evolution of knowledge types – from the body of knowledge to knowledge in use – demands the management of different sub-processes. Knowledge selection, knowledge recombination, knowledge mobilization and new knowledge creation processes are more strongly related to the supplier-customer dyad, while the knowledge relocation process has a network character. The knowledge interconnection process influences the company’s body of knowledge and its relationship management capability. Originality/value The originality of the study is, on the one hand, an empirical examination of the process of knowledge interconnection. On the other hand, the development of a model of the knowledge interconnection process. A further feature is that empirical research has been conducted in the field of contract manufacturing.
Purpose The purpose of this paper is to empirically investigate how context influences the quality of business relationships. This theoretical question is studied from the point of view of trust, one of the important components of business relationship quality. The authors study how trust is related to the dynamics and management of the business relationship in the context of an emerging market. Design/methodology/approach This paper is based on qualitative interviews with 15 spare-parts resellers in the Tunisian automotive industry. The authors take a monadic view, interviewing resellers about their relationships with their wholesalers-importers. The decision to undertake the research in Tunisia is based on three factors. First, Tunisia is an emerging country and there is very little published research based in the Maghreb countries. Second, the Tunisian automotive parts market structure is relatively simple and, hence, easily understood, with most spare-parts being imported because of the low level of local production. Third, the actors in the study are all Tunisian companies, so research allows us to explore relationships between local companies in an emerging country. Findings The authors find that different kinds of trust play different roles over the dynamics of the relationship. Perceived trust is more important at the emergent stage of a relationship, and as the two parties learn from each other, experienced trust becomes more important in the established relationships. The initial perceived trust creates the possibility of building trust, and when mutual trust exists between the parties, it motivates them to maintain the relationship, but there is always the threat of the degradation of the quality of the relationship because of the violation or destruction of the trust. Research limitations/implications This paper shows that more care should be taken when using trust as the variable under scrutiny. Different aspects of trust manifest themselves at various stages of the relationship building cycle. Practical implications The results emphasize that when initiating a business relationship, managers first need to create perceived trust. Thereafter, once trust is built up, it is the trust that may “manage” or act to control the on-going relationship as long as the partners’ behavior or network changes do not violate the trust. Originality/value The results of this paper show that there is a mutual but not necessarily symmetrical or balanced influence of trust on the behavior of the partners involved. The influence of the different parties is dependent on the power architecture, the history of the relationship and the network position of the actors.
Purpose Following industrial network theory, this paper aims to address network behavior from a focal company’s perspective. Special attention is paid to examining the effect of perceptions of the economic crisis on network behavior. Design/methodology/approach The study is built on a quantitative analysis of an empirical database of 300 companies based on a survey completed in 2013 in Hungary. A focal company network behavior model was developed and applied to investigate the link between variables (valuable customer relationships, valuable supplier relationships, relationship strategy and relational outcomes) and the effect of managers’ perceptions about the intensity of the crisis. To obtain a deeper understanding of the effect of the crisis, structural modeling methodology was applied during data analysis. Findings How crises are perceived has a moderating influence on companies’ network behavior. In a context in which a crisis is strongly perceived, valuable customer relationships are considered more important than valuable supplier relationships; relationship strategy becomes more intensive; and performance is increasingly focused on operations and less on innovation. The main difference in network behavior is found with the management of the supply side. A different level of attention is paid to supplier relationships in a high crisis-perception context than when a crisis is perceived as being less critical. Research limitations/implications Results emphasize the importance of perceptions as a key factor in managerial attitudes, behavior and, ultimately, decision-making. This finding merits more attention from both researchers of business relationships and networks. Practical implications From a managerial point of view, the results emphasize the existence of potentially new opportunities in network management. The reinforcement of attention to the customer during a period of crisis implies the importance of the customer orientation, but also suggests that firms may have unexploited opportunities and more potential resources on the supplier side. Originality/value The paper combines an analysis of network behavior and perceptions of crisis, helping to explain managerial decisions and attitudes. Analysis was undertaken from a focal firms’ perspective and differences were investigated in attitudes concerning both supplier- and customer-side relations. How crises are perceived is a moderating variable of network behavior.
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