The business-to-business relationship: examining Sri Lankan telecommunication operators and vendors

Abstract

Purpose This study aims to identify and analyze factors affecting the business-to-business (B2B) relationship between Sri Lankan telecommunication operators and vendors. The authors conduct a survey and develop models to explain relationship strength and satisfaction. The authors find that telecommunication operators and vendors value trust, commitment, adaptation and communication. Operator satisfaction varies by perception of product quality, service support, delivery performance, supplier know-how and value for money. The vendor’s relationship strength is impacted by trust and commitment; vendor satisfaction is affected by economic factors and referencing. The authors suggest formulating management strategies using these results to strengthen business relationships. Design/methodology/approach The authors develop two conceptual models to analyze the supplier and customer perspectives. This study’s drafted models were drawn from established models and were presented to experts in the industry, both telecommunication operators and vendors. Models were modified based on experts’ feedback, and hypotheses were developed from the conceptual models, developed separately for the two perspectives. Data collection was done via questionnaires; 150 questionnaires were sent via email to identified telecommunication operators and 100 questionnaires were sent via email to identified telecommunication vendors, with follow-up emails and telephone calls to improve response rates. Findings This study’s findings show that employees in the telecommunication industry recognize the importance of B2B relationships. Employees of both telecommunication operators and vendors agree that stronger relationships are advantageous. The correlation and regression analysis results identify factors that affect the B2B relationship. The following factors impact the strength of B2B relationships irrespective of view point: trust, commitment and satisfaction. The following factors were found to significantly affect the strength of B2B relationships between telecommunication operators and vendors from the operator perspective: adaptation and communication. Practical implications To enhance relationship strength, the management of operator organizations should take action to improve trust, commitment and satisfaction. Demonstrating honesty and integrity when dealing with vendors and exhibiting concern for the other party’s interests can help establish trust or enhance trust in existing relationships. Displaying commitment toward the vendor will also facilitate stronger relationships. Reasonable profits for both parties and sizeable business volume will also help satisfy vendors, increasing relationship strength. Positive referencing of the vendor in industrial and public forums will improve vendor satisfaction, enhancing relationship strength. Reputational capital can be built and maintained for both operators and vendors by keeping promises and defending the other party to outsiders. For managers of telecommunications operators and vendors in other emerging markets, this study’s results are important and can inform internal business practices to support trust, commitment and satisfaction. Originality/value This study contributes to the existing literature in two ways, a focus on the telecommunication industry and a previously unexplored emerging market, Sri Lanka. In addition, this study includes an analysis of the relationship from both the operator and vendor perspectives.

The Impact of Customer Relationship Management Quality and Company Reputation toward the Antecedent of Customer Loyalty during COVID-19 Pandemic

“…Then, Supplier and/or service providers need to build individual relationship also with business customers (Alshurideh, 2019). The quality of the business-to-business relationship as a crucial f actor in building success in the market, which can enhance the competitiveness of both partners and reducing transaction in B2B environment (Dasanayaka et al, 2020;Ganesan and Hess, 1997) Theref ore, Indonesia Heavy equipment (HE) industry, as B2B context, will be af f ected by the COVID-19 pandemic too with a decline in growth of -2.27 percent on 2020 (Badan Pusat Statistik, 2021), This condition has inf luence B2B customer loyalty, which it strengthened the statement, customer change partner just because short time advantages is rational action outcome of recession condition, strongly support (Agostini et al, 2017;Hetesi, 2014). This study will deep investigate customer loyalty on Indonesia Heavy Equipment industry, especially on PT XYZ, a market leader of heavy equipment market in Indonesia with strong company reputation.…”

The dark side of effectuation in a key account management relationship

“…Such failure to deliver can be conceptualised as breach of trust (Dasanayaka, Al Serhan, Glambosky, & Gleason, 2020;Mungra & Yadav Prabhat, 2019). While clear that relevant resources must be available to avoid this failure, location and ownership of these resources may not be important to the relationship, as long as they are readily available when needed (Hakansson et al, 2009).…”

“…Continued use of effectuation may, however, reduce small supplier ability to successfully manage a KAM relationship long term, particularly where it leads to failure to meet KAM partner expectations, breach of trust, and relationship breakdown (Cambra-Fierro & Polo-Redondo, 2009;Dasanayaka et al, 2020;Morrissey & Pittaway, 2004Mungra & Yadav Prabhat, 2019). The literature of sales and new product development links customer needs and products/services that should be developed to meet them (Cooper, 2018;Ortega et al, 2017;Sarasvathy, 2009).…”

“…The formation of a KAM relationship may provide some form of protection against this opportunism (Chicksand, 2015;Hingley, 2005). To avoid relationship failure and enable commitment to the relationship, mutual trust must be developed and maintained so both parties are clear about the scope and purpose of the KAM relationship, including commitments made and mutual objectives set (Dasanayaka et al, 2020;Davies & Ryals, 2014;Grandinetti, 2017;Heidenreich et al, 2015;Mungra & Yadav Prabhat, 2019).…”

“…However, due to resource restrictions (Ellegaard, 2006), small suppliers may be unable to provide everything required by a large KAM buyer. Such failure to deliver can be conceptualised as a breach of trust (Dasanayaka et al, 2020;Mungra and Yadav Prabhat, 2019). While clear that relevant resources must be available to avoid this failure, location and ownership of these resources may not be important to the relationship, as long as they are readily available when needed (Hakansson et al, 2009).…”