Exiting and entering relationships: A framework for re-encounters in business networks

Abstract

In the networked business environment, the same actors come together and part in various situations. Addressing this, existing research describes the lifecycle of business relationships and network participation: Stages from relationship formation to termination and network exits have been covered. Less is known about the phases following a termination of relationships in networks. Especially, literature is relatively silent on those situations where the actors' paths cross again after a past exit. That is, re-encounters remain poorly understood. Building on existing literature and illustrative examples on business networks and rela-tionships, this conceptual study suggests that a longitudinally integrated view connecting the exit and post-exit developments to later encounters is needed. This study points out that the crossing of paths may, or may not, give start to the re-establishment of business relations, depending on the re-encounter itself and the preceding steps. Moreover, it is suggested that these antecedents derive from individual, organizational, relationship, and network levels. Therefore a vertically integrated approach further explains the re-encounter outcomes. The aim is to capture dynamics behind re-encounter outcomes -categorized here as (1) refraining from future interaction, (2) retribution, (3) reactivation characterized by reframing, or (4) full reactivation of relationships and collaboration -to assist future research.

Purchasing behaviour and supplier base evolution – a longitudinal case study

“…One specific contribution of the study is the examination of the re-activation of suppliers that once exited. Several scholars have recently called for more attention to this topic (Poblete et al , 2014; Bygballe, 2017; Hurmelinna, 2018). This claim is raised because previous research covers quite short time periods, whereas investigation of these issues requires a long-term approach such as the one applied in this research.…”

“…Changes in the size of a supplier base occur through purchasing behaviour resulting in entries and exits of suppliers. The relevance of such issues has been illustrated in studies of supplier switching behaviour by, for example, Hirschman (1970), Pfeiffer (2010) and Hurmelinna (2018). However, supplier entries and exits are not only matters of switching behaviour.…”

“…Finally, recent research has emphasised one particular consequence of supplier exits and asked for studies of terminated relationships that later are re-activated (Poblete et al , 2014; Bygballe, 2017; Hurmelinna, 2018). Accordingly, the third research question relates to the possible re-entry of suppliers that once exited.…”

“…The authors argue that inactive relationships should be regarded as “sleeping” and waiting to be awakened, rather than as completely terminated. Hurmelinna (2018) concluded that “full re-activation” of an ended relationship can occur if the problems that caused termination can be solved. Furthermore, during the period of inactive business exchange, the exited supplier may have developed its resource base and in this way be able to provide new opportunities if the relationship is re-activated (Levin et al , 2011).…”

Change in supply networks: a case study in the automotive components industry

“…In spite of the importance of these and other contributions for our current understanding of relationship development (Hadjikhani et al , 2012; Kamp, 2005; Ring and van de Ven, 1994), their preliminary focus was on dyadic relationships, while the importance of other relationships to the evolution of each relationship, with few exceptions (e.g. Hurmelinna, 2017), was not a primary concern. That is, a network view of relationship development needs to stress the effect of “distant” or “indirect” relationships (by distant or indirect relationships we refer to those relationships which are not developed directly by a firm).…”