Rethinking interaction in social distancing times: implications for business-to-business companies

Abstract

Purpose This paper aims to investigate how the COVID-19 pandemic has affected the interaction in a business-to-business (BtoB) setting and the emerging relational dynamics. The COVID-19 pandemic is having a strong impact on BtoB markets in terms of the stop of production, the difficulty of coping with payments, restrictions on the flows of people and goods within national and international markets. The paper discusses that the effects of worldwide lockdowns, social distancing and other related restrictions undermine one of the salient features of business relationships, namely interaction. Design/methodology/approach The paper relies on a qualitative interpretivist approach based on the data collected from in-depth interviews with key informants and secondary sources. The fashion industry is taken as an emblematic case, given the relevance of BtoB relationships, especially those between global fashion brands and their suppliers, and the dramatic impact of the pandemic. Findings The paper shows four effects in terms of relational dynamics. The freezing effect is the maintaining of interaction at minimum operating levels capable of ensuring survival for both interacting actors. The ripple effect can be conceived as a negative effect of the pandemic related to the weakening of the freezing effects in interactions along the supply chain. The rebound effect is a sudden increase in interactive processes among existing relationships. The vicious effect is a negative effect of the pandemic on the interaction that refers to the decay of existing interaction and their ending. Originality/value This study fits into the current period of the COVID-19 pandemic to stress the role of interaction involving people and businesses as a key to restart. The paper suggests managerial implications to respond to the pandemic in the short term and to set the basis for future opportunities.

The PPE industry in Italy during COVID-19: supply chain disruption and the adoption of digital and social media in B2B firms

“…However, as customer visits were not allowed, the lockdown pushed companies to increase their use of digital and social media to maintain business relationships. In line with Runfola et al ’s (2021) findings, digital tools can be used as a solution for the short-term management of existing relationships and a driver of a new wave of growth in B2B markets in the medium-long term, also once the pandemic will be over.…”

Demand and Supply Disruptions During the Covid-19 Crisis on Firm Productivity

“…Fourthly, to get through a crisis, a more effective strategy is required to leverage existing relationships to stabilise the effect of the shock (Runfola et al, 2021 ). Companies need to know the production recovery status of other SC partners and assist them as it can be costly and difficult to replace them.…”

Toward a resilient supply chain model: critical role of knowledge management and dynamic capabilities

“…Supplier proximity has vital advantages in general and to the fast fashion market in particular (Runfola et al. , 2021).…”

“…4.2.6 Geographic proximity (long distance) and logistic problems. Supplier proximity has vital advantages in general and to the fast fashion market in particular (Runfola et al, 2021). The literature identified cultural, distance, technological, knowledge and other proximities as the main factors that influence the supply chain.…”