Validating action and social alignment constituents of collaboration in business relationships

Abstract

Purpose The purpose of this paper is to test hypothesized relationships within and between the domains of action and social alignment based on a sales perspective in business relationships. Design/methodology/approach This study is based on a cross-industrial sample of Norwegian companies consisting of 213 key informants corresponding to a valid response rate of 40.7 percent. Findings The findings validate that coordination relates positively to economic satisfaction (ES); coordination does not relate to non-economic satisfaction (NES); coordination relates positively to cooperation; cooperation relates positively NES; and cooperation mediates between ES and NES. Research limitations/implications This study tests and successfully validates an action and social alignment model based on a sales perspective in seller business relationships, providing additional insights into the field of relationship quality and the sales literature. Suggestions for further research are provided. Practical implications According to sales practitioners, the research model makes sense in relation to managerial implications for seller business relationships. Originality/value This study contributes to incorporating a seller perspective in relation to existing theory and previous studies on a buyer perspective to quality constructs in business relationships.

A multidimensional approach to the outcomes of perceived value in business relationships

“…In a business-to-business context, satisfaction represents an overall evaluation of, feeling about or attitude to the other party in a relationship or the relationship itself, with the evaluation process encompassing both the economic and the social aspects of the relationship experience (Sanzo et al , 2003). As a result, several authors support the notion that satisfaction in business relationships is not a unidimensional construct but are two distinct constructs, namely, economic satisfaction and non-economic satisfaction (Høgevold et al , 2019; Payan et al , 2019; Mpinganjira et al , 2017; Ferro et al , 2016; Del Bosque et al , 2006; Farrelly and Quester, 2005). As distinct constructs, it can be expected that each will have different antecedents, and thus failure to distinguish between these two satisfaction types will lead to contradictory research results (Geyskens and Steenkamp, 2000).…”

“…Similarly, Geyskens et al (1999) argue that satisfaction as a performance outcome contains both economic and non-economic (social) aspects. Despite previous research establishing that business customers’ satisfaction is not a unidimensional construct, but rather as a composite of both economic and non-economic satisfaction (Høgevold et al , 2019; Payan et al , 2019; Del Bosque et al , 2006; Sanzo et al , 2003; Geyskens and Steenkamp, 2000), no studies could be found that incorporates this multidimensionality together with perceived value in a business-to-business context.…”

“…Hence, as an outcome of perceived value, customer satisfaction is proposed to be influenced by both the economic and the social aspects of value creation (Callarisa-Fiol et al , 2009). While economic satisfaction and non-economic satisfaction have been established to be conceptually distinct (Geyskens and Steenkamp, 2000), satisfaction as a multidimensional construct – and the relationship between its two dimensions – has received little attention in the marketing literature (Høgevold et al , 2019; Mpinganjira et al , 2017; Del Bosque et al , 2006).…”

“…Most authors agree that customer loyalty is a source of competitive advantage, which has a powerful impact on organisation performance (Lam et al , 2004; Dick and Basu, 1994). The consequences of enhanced customer loyalty in service organisations are increased revenue, reduced customer acquisition costs and lower costs of serving repeat purchasers, leading to greater profitability (Høgevold et al , 2019; Reichheld, 1996). Despite the significance of customer loyalty, there is still no consensus on how loyalty should be defined and measured – particularly in a business-to-business context (Caceres and Paparoidamis, 2007).…”

Continuity, Coordination and Cooperation as Mediators Between Economic and Non-Economic Satisfaction – A Sales Perspective

“…The importance of distinguishing between economic and non-economic satisfaction lies therein that each has a distinct focus (Ulaga & Eggert, 2006), holds varying relationships with various antecedents and outcomes (Geyskens et al, 1999) and failure to differentiate between them will diminish organizations' ability to successfully manage customer relationships (Geyskens & Steenkamp, 2000). Researchers have thus increasingly adopted both economic and non-economic satisfaction as separate constructs when studying business relationships (Glavee-Geo, 2019;Høgevold et al, 2019;Payan et al, 2019).…”