Beautiful exit: how to leave your business partner

Abstract

Interorganisational buyer-seller relationships have been primarily studied from the perspective of relationship development and the benefits accrued from relationships. There is a lack of research concerning problems with relationships and relationship dissolution. The dissolution of a business relationship can be either desirable, freeing badly deployed resources, as indicated by the customer portfolio approach, or harmful, involving costly legal disputes and the loss of company reputation. By employing a theory-driven case study approach we examine the exit strategies available for the disengager in dissolving interorganisational buyer-seller relationships. We show that the quality of dissolution is affected by the disengager's choice of exit strategy. Managerial suggestions are provided for achieving``beautiful exits'', i.e. such communication strategies which minimise damages of the dissolution to the disengager, the other party, and the connected business network.

The bonding effects of relationship value and switching costs in industrial buyer–seller relationships: An investigation into role differences

“…Possibly, the supplier subsequently lowers or drops its demands or re-adapts its behaviors. However, the supplier might also break off the relationship (Alajoutsijärvi, Möller, &Tähtinen, 2000). This possibility makes a difference when comparing the effects of relationship value and switching costs on a buyer's relational tolerance.…”

Markets-as-Networks Theory: A Review

“…Biong, Wathne, and Parvatiyar (1997) offer two other reasons that can account for relationship dissolution: lack of relational orientation and mutual commitment by (or changed requirements of ) one or both of parties involved; and a nonpositive relationship value (i.e., relationship sacrifices more than offset, or simply equate benefits), for one if not both of parties. On the termination of business relationships, and its determinants and consequences, see Alajoutsijarvi, Moller, and Tahtinen (2000), Giller and Matear (2001), Gronhaug, Henjesand, & Koveland (1999), Halinen and Tahtinen (2002), Tahtinen and Halinen (2002), Tahtinen and Havila (2004), Tahtinen and Vaaland (2006), Tuusjarvi and Blois (2004), Vaaland (2004), and Vaaland, Haugland, and Purchase (2004.…”

Ending-competence in business closure

“…For these researchers, the lifecycle analogy placed attention on the final stage of a business relationship. However, later research focused on the ending process (Halinen & Tähtinen, 2002;Michalski, 2004), on ending strategies (Alajoutsijärvi et al, 2000;Giller & Matear, 2001), and on relationship stress (Holmlund-Rytkönen & Strandvik, 2005). There are also studies focusing on endings in different contexts, such as ending inter-organizational cooperation (Tidström & Åhman, 2006), and dissolution of relationships in a Chinese context (Pressey & Qui, 2007).…”

“…Another research field that has given attention to ending is research in business-to-business relationships (see Alajoutsijärvi, Möller & Tähtinen, 2000;Halinen & Tähtinen, 2002). This research offers insights into issues that become important when relationships to companyexternal parties need to be ended.…”