managing relationship research in a turbulent environment

Managing Relationship Research in a Turbulent Environment

Sheena Leek, University oj Birmingham 1Peter W. Turnbull, University oj Birmingham

Peter !\aude, University oj Bath

AbstractI he aim ol this paper is to reexamme the intciacliuii approach in light oi liie ea>noiiiK. social and managerial changes that have occuiTed since itb inception Mich as the information technology boom and globalisation. Methodological criticisms ol previous research are also to be addressed.

1. IntroductionSince the early work of the International Marketing and Purchasing (IMP) Group (Hakansson 1982, Turnbull and Cunningham 1981) there has been a growing interest in, and recognition of, the interaction approach and relationship theory. This has stimulated much empirical research and relatively recently the application and development of the basic constructs in the fields of consumer and services marketing. There have been a number of critical reviews of the interaction paradigm (Turnbull, Ford and Cunningham 1996) but no-one has tried to re-examine or revise the basic conceptualisation. It is now appropriate to attempt to do this given the enormous changes that have and continue to impact on the business world. This paper will review the components of the interaction approach in light of the changing economic, social and managerial context. It will also address some of the methodological criticisms of past research.

2. The Interaction ApproachBuilding on earlier work by Williamson (1975) and their own early research findings. the IMP group postulated a "new" approach to understanding industrial market dynamics (Hakansson 1982). Their fundamental platform was dissatisfaction with the- then established or classical marketing approach enshrined in the 4P's. The classical approach presented a transactional view of market exchanges and did not represent the realities of business markets.

The realities of business markets, it was argued, were more complex and the key elements of successful marketing and purchasing was the establishment and maintenance of interactive relationships. Thus, it was not sufficient to "look down either end of the telescope"; a true understanding could only come from examining and analysing the parties in dyadic relationships, the processes of interaction between them and the context in which the interaction was embedded (Hakansson, 1982). Subsequently, the IMP group recognised that dyadic interactions are only one part of the business world and that organisations' dyadic relationships are embedded in a wider web or network of interconnected and independent relationships.

1 Sheena Leek, Department of Commerce, University of Birmingham, tdgbaston. Birmingham U 1 5 211 0121 414 S983 ic: ekshae^s b.ham ac.uk2 Peter W Turnbull, Department of Commerce, Umversit) of Birmingham, hdgbasion. Birmingham BI5 2TT 01 21 414 7097 P,\\.,I.urnbuIKa nhum.ac.uk3 Peter Naude, School of Management. Umversit> of Bath. ( laverton Down. Bath. BA2 "A"* 01225- 823772 mnspnta bath.ac.ukin McLoughlin, Damien. and C. Horan (eds.), Proceedings oj The 15"' Intniul IMP C'onJtTi'iu-c.

L'niversity C ollege, Dublin 1999Pa^e 1 of 22

At this point, it is worthwhile to review the four elements of the original interaction model and to try to identify the changing dynamics of these elements and how these have affected both the theory and practice of business to business marketing.

The Parties - At its simplest, interaction takes place between a buyer and a seller. In business markets the two players will be some form of organisation and the individuals involved in the interaction process will be affected by organisational rules, structures and norms, as well as by their own character, personality, experience etc.

The Interaction Process - The process of exchange - the episodes - are at the heart of relationships and a cursory analysis reveals a continuum of relationship types from simple transactional relationships at one end and close interdependent partnerships at the other. The exchange episodes may relate to tangibles, e.g. product. mone\ or intangibles e.g. cultural values and information exchanges.

The Atmosphere - This is perhaps the most nebulous and difficult of the interaction model elements to define. It reflects the cultural and behavioural aspects of the two parties and can be defined as the attitudes, feelings and expectations of the individuals within a relationship about the other party. It encompasses issues such as power- dependence, loyalty and trust and can be an important determinant of the way a relationship continues and develops. Again it may be possible to classify atmospheres in some way.

The Environment - No relationship exists in a vacuum but is embedded in political, economic and cultural networks. These environmental networks can be significant influences on the nature, extent and success of individual relationships through their effects on individuals and organisations.

3. The Research Challenge of the Interaction Approach.There are two main criticisms of the business to business marketing research. Firstly, much of the research has failed to address the effect of the external changes that have occurred in both organisations and the world during the last 10-20 years. Secondly, the various methodologies employed by different researchers mean that it has been difficult to generalise results and apply them in industry. These two problematic areas are addressed in more depth belo\\

3.1. External Changes Affecting the Interaction Approach.There are four major changes that have occurred since the business to business marketing research started which will have considerably impacted on how business is conducted. These factors are, the changing nature of industry, the growth oj information technology, globalisation and changing customers ' expectations.

3.1 a) The Changing Nature of Industry - The nature and structure of industry in the developed economies has changed. In the early seventies the business world was considerably different to today's business world, manufacturing still played a major role in the economy. The last twenty years has seen the emergence of highly profitable niche players rejecting the pursuit of volume as a strategic theme, and also a huge growth in the services sector.

In the past, companies had clearly identifiable functions such as "sales", "purchasing" and "new product development" but the boundaries between functions has becomein McLoughlin, Damien. and C. Horan (eds.). Proceedings of The 15" Annual IMP C onfcrencc.

Universit) College, Dublin 1999

increasingly blurred over the sears. People Irom \arious departments ha\c become involved in the buying and selling processes eg people (rum Research and Development will use their technical knowledge to sell the advantages ol then product to potential buyers, people using the product will specify their requirements to the people doing the purchasing etc. The number of people from each party involved in the interaction process has increased which has made the interaction process and atmosphere in the relationship potentially more complex. People from different departments may have slightly different agendas, personalities and past experiences so there is greater potential for disagreement that will adversely effect the interaction processes, atmosphere and thereby the whole relationship.

As the demand for technological innovation and economic efficiency has increased the complexity of relationships has grown. In particular, we have seen the emergence of single sourcing and supply chain management, which have impacted hugely on how relationships are managed (see, for example, Magretta, 1998). In addition, instead of straight forward buyer-seller, relationships there are strategies such as joint ventures, strategic alliances and supply chain management, as well as others Thus, it is not unusual that more than two parties may be involved in a relationship, which \\ill effect both the interactions and the atmosphere.

3.1 b) The Effect of Information Technology Since the early seventies there has been a huge explosion in the growth and application of information technology. IT has affected each element of the interaction process. At the organisational level, IT has lead to the loss of jobs, i.e. people have been replaced by machinery, it has created jobs e.g. people are required to maintain and keep computer systems running, and it has altered the nature of many jobs e.g. stocktaking and most administrative tasks are carried out by a computer. IT has probably affected all organisational departments. It has also affected relationships in that it has facilitated both an increase in disintermediation and, used innovatively, has led to new forms of relationships becoming possible (Naude and Holland, 1996). In addition, the increase in MRP/ERP systems as well as in Interorganisational Information Systems are affecting inter-company relationships in a fundamental way (Holland and Lockett, 1997).

Computers have lead to the creation of the Internet, a new market place for selling and buying products worldwide. It is also useful as a source of information on competitors, potential customers and economic and scientific information. It has the potential to be a positive influence on company's marketing actions and their interactions with customers and suppliers.

Modern technology has influenced the way people communicate. There are no\\ a greater number of methods of communication available such as e-mail, fax. the Internet and audio and video conferencing, which can substantially change the interaction process. These methods have a number of advantages. For example, they have increased the speed of communication and they are increasingly available in companies around the world. There may be a disadvantage of these modern methods of communication in that the interaction has been de-personalised to a certain extent which may have an adverse impact on the interaction approach and the atmosphere of a relationship.

3.1 c) The Effect of Globalisation - The increase in effective communication through IT such as the Internet and satellite TV, along with people's greater experience of foreign

in McLoughlin, Damien. and C. Horan (eds.), Proceedings of The 15th Annual IMP Conference,University College, Dublin 1999

of 22

& fcT JL JL~%«. travel due to reduced prices has effectively lead to globalisation. People have learnedabout products available in different countries which has lead to changing product demand. This demand has been met in various ways. Companies have set up then- branches in foreign countries, franchised then compam or exported then product M> unfamiliar parties have been brought together by globalisation. It is anticipated that there has been an increase in the contact bei\\een foreign and domestic companies which ha> probably lead to an increase in the awareness of problems arising from the interaction^ between two cultures. Different cultures, values, work ethics and legislation influence how organisations conduct business. The interactions and atmosphere bet\\ccn companies will be affected by the political, social and economic em iromnent of not only each party's country but by other countries e.g. UK organisations are affected by European legislation as well as UK legislation.

3.1 d) Changing Customers' Expectations - A combination of globalisation along with the huge improvements in what can be achieved using technology in terms of both processes and the final product, has effected consumers' expectations and demands. It is generally more economically sound to retain current customers rather than attempt to win new ones, and therefore suppliers may find themselves having to meet with the greater expectations of their current customers. The importance of retaining customers may have lead over the years to increasingly complex interactions between the companies to prevent the customer from easily changing supplier.

These are the major external changes which have had a significant influence on business to business marketing and purchasing changes within the organisations, \\ithin relationships between organisations and within network^.

3.2 Improving on Past ResearchA large amount of research has been performed in the area of biiMnes> to biiMne.vs marketing, however there are areas where further attention is needed. 1 he problems are: the loose definition and measurement of terms, an abundance of exploratory and descriptive research and insufficient quantitative research and the lack of managerial relevance and transfer to management practices. Each of these problems is examined in more depth below.

3.2 a) Definition and Measurement of Key Terms - Within business to business marketing there are a huge number of terms which are regularly used but often in a "loose" or ill defined way e.g. trust, openness, commitment, power, cooperativeness, competitiveness etc. The definition of terms often differs between various pieces of research. For example a variety of definitions of commitment can be found in the literature, a few are mentioned below.

"The concept of commitment is defined as "....an exchange partner believing that an ongoing relationship with another is so important as to warrant maximum efforts at maintaining it; that is, the committed party believes the relationship is worth working on to ensure that it endures indefinitely". (Morgan and Hunt, 1994)

^Commitment to the relationship is defined as an enduring desire to maintain a \alucd relationship." (Morgan and Hunt, 1994)


of 22

"..commitment is an "implicit or explicit pledge of relational continuity between exchange partners'"' (Dwyer, Schurr and Oh 1987)

Moorman, Zaltman and Deshpande (1992) define commitment as "an enduring desire to maintain a valued relationship."

Hardwick and Ford (1986) point out that "commitment assumes that the relationship will bring future value or benefits to the partners"

A number of facets of commitment emerge, one or more of which may appear in the definitions, mutual benefits - in order for commitment to occur both parlies in the ivLiiion-»hip

must be gaining something of value, although this gain need not uecui simultaneously

maintenance over time - the relationship is continued over a period of time This part of the definition is problematic in that a specific period of time is impossible to define. In purchasing an expensive piece of capital equipment, negotiations ma\ extend over a period of years, can commitment be said to be occurring in such a situation i.e. is commitment actually a quality which grows over time or is it transaction based i.e. does commitment increase with each transaction as the company proves itself to be reliable and have integrity (trustworthy).

implicit and explicit - the desire for mutual benefits may be explicitly stated either in a contract or gentleman's agreement or it may be more implicit

Ford (1984) produced a slightly different definition "Commitment is the importance that a seller (or a buyer) attaches to its opposite number and is measured by its willingness to invest time and resources in its dealings.....A buyer will also, in part measure a supplier's commitment to him by the extent to which the supplier is prepared to adapt to his requirements." Although this definition mentions time and transactions, there is no mention of mutual benefit. Importance of the opposite number is mentioned bin importance can be a one sided need and does not fit in with the general understanding of the word commitment within a relationship which is both parties needing each other. These definitions vary both in the wording and interpretation. There is a similar degree of variation in the definitions of other terms.

The problem of definition is compounded when terms that encompass other terms are used e.g. a relationship atmosphere can be trusting, committed, friendly etc The definitions of the elements of the relationship atmosphere may vary with different pieces of research. Also researchers may have differing perspectives on the number of elements which make up the relationship atmosphere.

In addition to the problem of defining variables there is the problem of measurement. There are no standard tools for measuring the majority of terms. The wording of the statements used and the number of the statements used varies widely. Generally, most of the tools are not published in full, which prevents other researchers from using them and checking their validity and reliability.

The vocabulary used in business to business marketing needs to be clarified and defined to provide a common language for scholars working in this area. Succinct definitions and standard measures will enable researchers to be able to compare data from \anoiib

in McLoughlin, Damien. and C. Horan (eds.), Proceedings oj The 15th Annual IMP Conjerenc^.I imersit) College, Dublin 1999

I'.uii ^ ol 22

,. .studies more easily. A greater pool ot comparable data \\ill enable theors and research to progress in a more unified manner.

3.2 b) Research Methodology Issues - In the past a large proportion of the research carried out has been exploratory and/or descriptive. Case studies are extremely useful for providing in depth analysis on specific topics but its advantage is also its disadvantage. The specificity of case studies means its findings cannot be generalised to industry as a whole. Through carrying out large scale studies a broad picture of industry as a whole is obtained. Case study results can be used to complement the bigger picture.

3.2 c) Applicability of the Research - There is debate concerning the applicability of knowledge obtained from research in the business environment. One area where transfer of knowledge from researchers to practitioners is occurring is the management of relationships. Over the years companies' approaches to managing relationships has become increasingly sophisticated and it is thought that companies are increasingly recognising the need for a formal system of relationship management. Research has lead to the development of various customer/supplier portfolio models a number of which are mentioned below


of 22

Cunningham and Homse (1982) produced a two dimensional model encompassing technological interaction and sales volume Thev also suggested additional variables to examine including the importance of the customer as a relerencc point and the customer's ability to provide important commercial information Campbell and Cunningham (1983) further developed this model and called it the 1 hree-Mep Portfolio Analysis. It entails using the nature and attractiveness of the customer relationship and the customer's own performance. Fiocca (19S2) proposed a Two .step ( usiumei Portfolio Analysis model. The first step involved examining the customers at a general level, according to their strategic importance and the difficulties in managing each relationship. The second step entailed constructing a matrix with the customer's business attractiveness on one axis and the strength of the supplier customer relationship on the other. Yorke (1984) put forward the Three-Dimensional Market Segmentation Model which incorporates any three of the supplier's objectives e.g. profitability, minimisation of financial risk, a means to market entry. Shapiro et al (1987) developed the Customer Classification Matrix which focuses on the customers as profit centres. The Supplier Classification Matrix by Krapfel, Salmond and Spekman (1991) proposed a relationship classification based on the concepts of relationship value and interest commonality. Turnbull and Zolkiewski (1998) suggested the Three-Dimensional Customer Classification using the dimensions cost to serve, net price and relationship value. The very fact that there are so many models for relationship management consisting of different combinations of subjective and objective variables may create confusion amongst practitioners as they try to evaluate them. The usefulness and applicability of academic models in the business environment needs to be investigated to find out if they satisfy' practitioners' requirements or need to be reevaluated.

Both the external changes and methodological issues need to be incorporated into future research. Investigation of the external changes previously mentioned will enable the appropriateness and applicability of the interaction approach to be assessed in the industry at present. Utilising a more rigorous, quantitative methodological approach will enable the findings to be generalised to industry as a whole and allow research to progress in a unified manner. Through addressing both of these sets of problems the knowledge obtained may be more applicable and relevant to practitioners.

4. Where To From Here?If business to business marketing research was started in the current business environment it is probable that a new set of findings would emerge, different sets of assumptions would be produced, different processes would be found etc. It is necessary to re-examine industrial markets to find out not only what is happening in organisations, relationships and networks today but also to be better equipped to be able to sensibly advise managers in various situations. This need for a re-examination of the original IMP1 framework was launched by Valla (1997) who noted the increasing complexity underlying relationships in the 1990s, and the fact that the aligning action of firms within relationships are driven by internal and external complexities This critique was followed by Ford (1998), who criticised much of the previous IMP work both for its lack of managerial relevance and the fact that it was grounded in a previous business environment that bore little relationship to the changed world of the late 1990s.

Figure 1 Relationship Issues in the late 1990s

in McLoughlin, Damien. and C. Horan (eds.), Proceedings oj The 15"' Annual IMP Conference,University College, Dublin 1999

of 22

Strategic Themes:- quality- delayering- single out sourcmg- cost reduction-BPR

Globalisation:- new sources of

Into. Technology:

IQSs MRP'I RP

Customers:- increasingly

demanding

Ihe Issues in

R are more strategical!) important(more eggs in leuer baskets)R are less fnendK (more competition

arum; )is the other partner's cnliiiiX 1 mo a m

less :m|'i)il;"li lli>\\ '

i: h.ii'ie: ii . cMmeni ,n > J :H)\\ shii il ; u^ categorise '< '' no\\ !( manage i pon folio ol H '' uhat distinguishes betuecn -iiaccs.slul

and unsuccessful R''R !et'um .IK '. iC^v. i

tunctions ' ho\\ to manage the ne\N forms of R

Figure 1 shows some of the pressures that have affected relationships over the past two decades, and indicates some of the possible outcomes of that pressure. Essentially the question which business to business practitioners would like the answer to is how to manage their relationships to retain competitive advantage i.e. profitability through market share or quality. Within this question there are a number of research questions, which need to be addressed including,

how useful is information technology in business relationships how have customers' expectations changed what problems are encountered when dealing \\ith foreign companies and what

approaches are used to overcome them what systems are used for assessing relationships with customers and are they

perceived to be effective how can we define and measure components of the relationship atmosphere how does the relationship atmosphere differ between successful and

problematic/failed relationships

5. MethodologyThere are two stages to this research project, semi-structured interviews based upon a questionnaire and a large postal survey. The initial use of a qualitative approach of semi- structured interviews based on the questionnaire would allow the research instrument to be piloted, so that the clarity of the terminology and the relevance of the issues to practitioners could be checked. The questionnaire is made up of three main sections.

The first section of the questionnaire examines the general background of the company, what it produces, the turnover, the number of customers it has and how man\ customers make up 75% of the company's sales. It also looks at \anous forces tor change, the

in McLoughlin, Damien. and C. Horan (eds.), Proceedings oj The 15"' Annual IMP ( onjerencc,I niversity College, Dublin 1999

ot 22

impact of IT and globalisation on relationships and how customers' expectations ha\e changed.

The second section investigates the management of relationships with the company. It asks whether the company's approach in managing relationships has changed, whether they have a method, formal or informal, of managing relationships, what variables would be/are useful in managing relationships and what variables are used and how often in managing relationships. It also asks whether the system of managing relationships is useful.

The remaining section looks at a specific relationship in considerable depth. Firstly it asks what country the supplier/customer is from, followed by when the relationship started, the nature of the relationship, what formal links it has with the supplier/customer and how important they are in terms of turnover. It also asks to describe the relationship and why it is successful problematic failed. The next section examines the competitive positioning, i c what they had to do to win the account, what they have to do keep it and what product service leaiures are important to the customer/buyer. Finally the atmosphere of the relationship is examined There are a large number of statements relating to openness, trust, commitment, cooperation. competitiveness, power and problem resolution.

Analysis of the pilot questionnaire data will provide a further opportunity for refining the instrument for the main survey.

Twenty-one people participated in the study, four purchasers and seventeen suppliers. The respondents were recruited from part time MBA courses or personal contacts. Nineteen different companies were represented, encompassing a wide variety of industries including manufacturers of vehicles, packaging, medical products, automotive and aeronautical components and retailers of electrical goods and food. A total of thirty one relationships were examined, twelve of which were problematic and nineteen of which were successful.

6. Results and Discussion 6.1 Information TechnologyThe presence of IT within companies \ancd considerably, some companies readily utilised modern technology whereas in other companies its use was minima! One company has used IT for a number of years to monitor their stock figures and sales figures. It has also established a web site where its products could be ordered, \nother company currently updating and increasing its use of IT is becoming aware of the uses of e-mail and videoconferencing but is not yet fully aware of the uses of the Internet. There are also companies where IT has had a minimal effect on how they conduct their business. Considering the huge growth in the uses and applications of computers that has occurred since the early eighties it is surprising that it is under utilised in some companies and has had a minimal effect on others.

The respondents' perceptions of information technology, the Internet and e-mail were examined. Information technology generally was perceived to be fairly useful. E-mail and the Internet were perceived to be marginally less useful.

Table 1: The Perceived Usefulness of Information Technology.

in McLoughlin, Damien. and C. Horan (eds.), Proceedings of The 15th Annual IMP Conference.University College, Dublin 1999

P;iiit 9 ol 22

Internet (n=27)E-mail (n=31)Information Technology (n=24)

Mean Rating of Usefulness3.2(s.d.l.2)

3.6 (xd.0.98)3.8(s.d.l.O)

Modal Rating of Usefulness

3.53.03.7

(Degree of usefulness increases from 1-5.)

The mix of uses of IT may have lead to an ambivalent perception of IT in general, the Internet and e-mail. Companies who do not use them may not appreciate their uses, some companies may not be fully utilising them and other companies may be gaining the maximum benefit.

The Internet is not perceived as marginally useful and appears to be an under-utilised resource. Sales/marketing respondents did not use it either as a place where they could advertise their business or for gathering information on competitors or potential customers. Buyers mentioned that suppliers often did not know the market they were trying to sell to so the Internet could be one way for suppliers to obtain accurate market information, which would improve their chances of getting the contract. The under utilisation of the Internet may be due to a number of reasons. It is a fairly new media with little evidence about its effectiveness as an advertising medium. Companies may also not want to advertise on it because they may perceive it to have a limited audience. There is a vast amount of information on the Internet which can only be searched \vith imperfect search engines, therefore companies may have had problems obtaining relevant information and not persisted in trying. For the same reason they may have decided not to produce a web site. It is not clear how people perceive companies advertising on the Internet. There are few, if any, legal requirements for what is placed on the Internet so people may be unsure of exactly what they are getting and who they are dealing with unless it is a well established company. Companies may not want to advertise on a media which as yet is not "established".

Buyers tended to perceive the Internet more positively and thought it could be useful for both obtaining information about suppliers and marketing themselves to customers. One company had produced a web site but was aware how it needed to be improved after looking at competitors 1 web sites.

Qualitative answers imply that information technology has had substantial impacts/effects on how business is conducted where it is utilised. The most common way it has altered business has been through the improvement of communications between parties via e-mail; the speed of response has been greatly reduced ll has enabled the exchange of information, such as purchase orders and designs, to he faster and accurate. Modern technolog) Mich as c-maii with atiachinents h.i > ieduced administration costs. One company stated that thev save an estimated LlUOm per annum through using an Intranet and eliminating paper work. Audio-conferencing and \ideo- conferencing has been successfully used and has reduced employees' travelling

expenses.

IT has a variety of applications, including using software for monitoring stock control, establishing databases of sales information and allowing customers to electronically place orders amongst many others. A Food Development Manager stated his company

i/i McLoughlin, Damien. and C. Horan (eds.)< Proceedings of The 15th Annual IMP Conference,University College, Dublin 1999

of 22

%lp. '' has a computer link with each of its public houses which provides food sales data. Thisdata is used to generate a pattern of consumer behaviour, \\hich is then used to determine future marketing strategy

If is anticipated to continue to improve business in the future and a \anetv uf^e.^ \\ere mentioned. Obviously IT such as e-mail and audio and \kieo conferencing i^ expected to become more commonplace which \\ill continue lo eui aJmmistiui; v , ai,J ira.eliing costs. A better quality service will also be provided due to faster communications enabling deadlines to be met. Also it is anticipated that IT will continue to impro\e stock management so less will be spent on holding stock. A bus and coach company is using the Internet to sell old stock. In the aeronautical industry a program has been developed which lists companies, products and prices. An aeronautical component company anticipates this program as becoming increasingly important once security has been improved so competitors cannot access the information and as more customers install the program onto their systems. IT is perceived by one company as being a method of providing education to their staff. They are aiming to set up a virtual university to teach staff the skills they require.

Only one person mentioned a negative aspect of IT. The increased use of IT was perceived as having a detrimental effect on relationships as it reduced the amount of interpersonal contact and lessened the opportunity to build up personal relationships.

6.2 The Perceived Changes in Customers 1 Expectations.The respondents were asked to state their agreement/disagreement \\ith a number of statements concerning customer's expectations The mean ratings would suggest that customers' demands have increased most in the area of after sales service. 1 his change may be due to suppliers producing very similar products and customers only being able to differentiate between them by the "added extras". There is a greater need, as revealed by the means, for innovation, technical advice and collaboration. ( ustomers gcnerallv strive to be better than their competitors and one way of achieving this is through producing innovative and/or technically advanced products. In an increasingly competitive environment this has lead to customers requiring more technical advice, greater innovation and an increasing desire for collaboration. One supplier stated that customers expect suppliers to be innovative and proactive but are subsequently reluctant to use any new product due to the risks involved. Although customers' demands are becoming more stringent and dictatorial they are still prepared to co-operate and change their ways of doing business. The modal scores suggests that customers have become increasing demanding with regard to most of the aspects mentioned.

Table 2: The Perceived Change in Customers* Expectations.

in McLoughlin, Damien. and C. Horan (eds.). Proceedings oj The 15"' Annual IMP Conjerencc,University College, Dublin 1999

Page Hot 22

• ————————— - —————————————————— i *aaajStatement

More after sales service (n=31)Make more stringent demands (n=3 1)Greater collaboration (n=3 1 )Greater innovation (n=30)More technical advice (n=30)More likely to be able to dictate their terms (n=30)More contracts and legal agreements (n=31)Will not alter the way they do business to help us (n=31)Less willing to negotiate (n=30)Less prepared to cooperate (n=3 1 )

*, ———————————— i Mean Rating of

agreement4. 7 (sd 0.60)4.6 (sd 0.56)4. 3 (sd 0.82)4. 2 (sd 0.89)4.1 (sd 1.1)

4.1 (sdO.99)

4.1 (sdO.Y3)

34(sd 1.3)

2. 9 (sd 0.77)2.5

Modal Rating of Agreement

555554

5

3 13

(Rated on a scale of 1-5)

The respondents also suggested a number of additional factors where customers' demands have changed. The vast majority of sales/marketing people think customers are more price conscious and try to get the lowest price they can. Customers' are demanding higher quality products and shorter lead times. Respondents also reported an increased desire for increased flexibility regarding delivery. This has occurred as a result of management innovations such as J.I.T., which has meant changing from large infrequent deliveries to smaller frequent ones. One supplier stated it was increasingly important to obtain contracts, in order to "tie" the customer to them and prevent a competitor from poaching their customer. British companies have become less nationalistic. In the past a company would have favoured a British supplier whereas now they will not necessarily be favoured and will have to compete against foreign companies. This change in attitude may be due to companies becomingly increasingly price conscious and wanting to get the best deal possible whether it's from a domestic company or a foreign company. A supplier stated they had to know more about their customer's business in order for them to provide added value to distinguish themselves from their competitors. \ bu\er \sho demanded a greater understanding from suppliers of his marketplace ivinloue-s irm perspective.

These changes have had a number of effects on relationships. Sales marketing personnel who are under pressure from price conscious customers ha\e had their profit inarms reduced so much their desire to help the customer in terms of deliver} and service has also been reduced. They are often more willing to help more profitable but smaller customers. It was suggested that relationships are becoming more professional i.e. there are more likely to be formal negotiations, processes, contracts etc. This change may have occurred as a result of customers' increasing demands and/or increasing competition. The drive for lower prices as indicated above may be particularly important in creating this change. Obviously if relationships are becoming more professional it will lead to a decrease in informal one-to-one relationships where the parties like each other. Loyalty, which is usually associated with informal one-to-one relationships, is perceived as being a concept, which will be consigned to the 20th century by one respondent.

in McLoughlin, Damien. and C. Horan (eds.), Proceedings oj The 15'" Annual/ MP Conference.University C ollege, Dublin 1999

u! 22

6.3 The Influence of Globalisation and CultureWith increasing globalisation it was expected that the importance of the domestic market would decrease, as companies would have greater access to foreign markets both suppliers and customers. This point of view is supported by the modes. However, according to the means, it appears that companies do not have a greater number of foreign customers than before so the domestic market has not decreased in importance. Companies do report having a greater choice of foreign suppliers (See Table 3).

Table 3: Companies' Perceptions of the Affects of Globalisation.

Statement

We have more foreign customers than ever. (n=23)We have greater access to foreign customers than before. (n=19)We ha\e greater access to foreign suppliers sei vices than ever. (n=24)The domestic market has become less important to our company over recent years. (n=24)

Mean rating of

agreement3.3 (sd 1.7)3.7(sd 1.0)

4.1 (>d 0 SO)

3.1 (sd 1.3)

Modal rating of

agreement54

4 and >

s- 1

i(Rating Agreement/ Disagreement \\ith statement on a scale of I. StrongK -5 Strondy \uieo)

With increasing globalisation it was thought a greater consideration ol culture would be occur within companies. This perspective is supported b} the modes. Hovvexer it can be observed from the means that this is not the case. Companies may speak some of their foreign customers' languages but it will be a token effort as many foreigners speak English as a second language. They may also try to find out about any relevant legislation, which will affect them. Generally though companies do not give a country's culture much thought.

Table 4: Companies' Perceptions and Adaptations to Culture.

StatementWe speak a little of our foreign customers' language. (n=24)*Culture is irrelevant to business. (n=25)We always obtain information about foreign legislation affecting our business. (n=25)*Generally we assume our foreign customers conduct business in the same \\a) as oursehes. (n~2^jWe gather information on foreign customers work ethics. (n=24)*Our customers speak good English so we do not try to speak their languageOverall Adaptation to Culture

Mean Adaptation3.5(sd 1.5)

3.4 (sd 14)3.4 (sd 1 4)

2.9(sd 1 4)

2> (>d 1.3;

1.7(sd0.75)

2. 9 (sd 0.62)

Modal Adaptation5.0

5.0^.0

4 o |c - - - -i

vO

1.0

3.2* Reverse scored items on a scale of 1-5

A few companies mentioned a selection of cultural adaptations they made. One company published promotional material such as company brochures and the company's website in their customers' foreign languages. Courses on how culture influences

i/i McLoughlin, Damien. and C. Horan (eds.), Proceedings of The 15th Annual IMP Conference,University College, Dublin 1999

of 22

business conduct were run at another company. A health product compan\ produced different market strategies for different countries. French and German markets \\ere found to be similar but quite different to the British market. In 1 ranee and (jerman) ihey "pushed" their products, i.e. promoted them through discount coupons etc whereas in the UK the market involved a "pull" process i.e. they provided advertising for the retailers etc. An aeronautical components company stated they do consider a number of religious and cultural issues when dealing with foreign companies. The eompain made sure they did not try to arrange meetings on national or religious holidays and thev were aware of various cultural rituals e.g. exchanging gifts with Japanese customers, giving deeper bows to more senior Japanese people.

The lack of consideration of different cultures is surprising as it would seem necessary to at least be aware of the factual information required when dealing with foreign companies such as the legalities of importing/exporting products, meeting different countries quality standards etc. An understanding of various cultures and a willingness to learn some of their language is obviously not regarded as essential. However a demonstration of some knowledge of a country's culture may positively contribute to the overall company image. If two companies presented a similar product to a foreign company they might favour the company who showed a greater understanding of their culture.

An understanding of culture is a two way process. A UK company was in the process of setting up a deal with a Japanese distributor when the two teams went out for the evening. The Japanese team consisted entirely of males and the UK team only had one female in it. A member of the Japanese team taped a pornographic film from the television in his hotel room and proceeded to play it back to everyone at the dinner table. The male members of the UK team joined in with the Japanese team but it offended the only female present. The Japanese are renowned for working hard and playing hard which the UK males were willing to join in \\ith. It is imlikelx that a British businessman would have indulged in this behaviour in front of a foreign female business colleague. The Japanese man's behaviour may be due to women having a more traditional role in Japanese society whereas in the UK they are regarded as more equal. Alternatively Japanese women may have to adopt a more masculine persona to fit in with Japanese companies and may not be as offended by pornography.

6.4 Relationship Management6.4 a) Changes in Relationship Management - The majority of companies had changed their approach to managing relationships. Of the sales/marketing respondents two companies had not changed their approach to managing relationships. One respondent admitted they had been reactive to managing relationships rather than proactive as they had a fairly strong market position i.e. they are doing well so they did not need one.

Various changes had taken place to improve relationship management. Two companies had been restructured in an attempt to improve relationship management. One company had flattened their structure so all of its account managers had to report to the senior manager.

A number of companies ha\e Parted dividing their customers into various ^aieeurics \ components company divides its customers into direct accounts and distributor accounts. In the past an aeronautical company had a list of customers, all of \\hich

in McLoughlin, Damien. and C. Horan (eds.), Proceedings oj The 15"' Annual IMP Conference.University College, Dublin 1999

of 22

would be visited regularly. However, they have become more selective about \\hat customers they deal with and how they deal them. They now devote more time to new customers, use distributors to deal in areas where there is either only a small potential sales volume and/or the country is unstable and they concentrate on their core business rather than spending their resources developing products which are not going to be competitive. A utility company divided its customers according to size, multi-sited national companies, household consumers etc. These companies are acknowledging that there are different types of customers that need to be treated in different ways. However, the divisions used seem rather arbitrary and simplistic.

Two companies emphasised the increasing need to be proactive I hese companies tell n was necessary to have an in-depth knowledge of their customers" businesses, which would enable them to supply a suitable product. This knowledge \\ould also enable them to exceed their customers' expectations.

Two companies stated that partnerships were increasingly important. One of the companies provided telecommunications. Partnerships with customers in this area are vital as it is impossible for customers to buy an off the shelf product to suit them. However another two companies voiced the opposite opinion. A packaging compan) stated that ten years ago they tried to engender partnerships with customers. The companies pooled information, customers had supplier days and they would work together to manage the total cost. However this company believes this situation has disappeared due to an increasing concentration on price. Customers have become more aggressive and want to drive the price down as low as possible.

Buyers had perceived relationships to have changed. One retail buyer said they had become more stringent in their agreements. Their suppliers must pay for in store advertising and promotion, purchaser's costs and they must profit margin protect slow moving stock lines. Another buyer said they had become more oriented towards forming partnerships with their suppliers. Their larger suppliers had become more open and honest with the introduction of open book costing and this change \\as expected to spread to the smaller suppliers. Buyers were inclined to behave more iavourablv to suppliers who used open book costing.

6.4 b) Relationship Management Systems - The majority of respondents said their company had a system for managing relationships, most of which were formal. 62.5% of the sales respondents stated that their company had a system for managing relationships, 37.5% of which were formal and 25% of which were informal. All of the buyers had a method for managing relationships, the majority had a formal system but one respondent said their company had both a formal and an informal system (See Table 5).

Table 5; Frequency of Various Relationship Management Systems

in McLoughlin, Damien. and C . Horan (eels.). Proceedings of The 15" .Annual IMP Conference.I'niversity College, Dublin 1999

of 22

Type of System

NoneInformal systemFormal systemBoth formal and informal system

All Respondents

(n=20)6 (30%)4 (20%)9 (45%)

1 (5%)

viles (iv !())

6(37.5%)4 (25%)6 (37.5%)

0

Muveis in 4

00

3 (75%)1 (25%)

It is interesting that the buyers had the more formalised systems for managing customer relationships. This may be due to budgeting, purchasers have a certain amount of money they can spend and have to work within that constraint therefore they have to work out a method which will help them to decide which suppliers will be the best option. Sales/marketing people are concerned with generating sales, reaching sales targets etc. therefore although they will be aware of whether the customer is generating revenue they may not be aware of how much it costs to serve the customer taking into account the time spent dealing with them etc. Sales marketing respondents need to alter then- perspective to take in a bigger picture of the company

The companies without any system for managing relationships suggested a number of variables which they think would be important in managing relationships including, regular contact, providing a good service, good technical support, trust, past performance, the expectations of both parties, whether it is a single transaction or not, future profitability and market share of the customer, net profit margin per customer (aggregated overall business), return on capital employed and customer satisfaction. There is a mixture of both subjective and objective variables. Once again the fact that they can name a number of variables suggests that an evaluation process of some kind is occurring. However, this evaluation process is unspoken and will vary between individuals in terms of the variables used which means the effectiveness of evaluations will also vary. It is for this reason a formal system is important.

A variety of informal and formal methods are used to manage relationships. Three companies stated their decisions about relationships concentrated on the potential revenue. A telecommunications company stated it had a matrix based on two variables, effort and opportunity, which they did not really use. A number of sales companies had informal methods of managing their relationships. In one company the indi\ idual salesmen devised their own methods of evaluating customei relationships. Variables considered included,

• Have they ordered previous!}, if not \\here did the\ llnd our name, it could a Meet the price we charge

• Information check to establish financial profile of the customer• How much do they spend/how often, determines what prioritv we give them• Does the buyer sound trustworthy, very subjective• How desperate do they seem in finding a supplier

Another company's informal method included,• Categorising customers by turnover or potential turnover• Deciding on a direct or distributor account• Allocating resources as needed

Allocating resources as necessary suggests a more reactive approach to managingcustomers.in McLoughlin, Damien. and C. Horan (eds.), Proceedings of The 15th Annual IMP Conference.

University College, Dublin 1999 of 22

The buyers tended to be more inclined towards formal s\ stems of managing relationships. One buyer had both a formal and an informal system for managing suppliers. Their formal system entails running a daylong program during \\hich suppliers have an hour and a half to sho\\ their products They also ha\e to present the company's objectives, focus, development strategy and other customers. Informal management of relationships occurs on a daily basis, through phone calls, meetings etc. Another buyer said her company had a manual for buyers which provided in detail instruction on how to conduct negotiations, make range decisions on products, the delivery schedules, after sales services, bar coding and advertising and promotions required.

The formal systems are not particularly distinguishable from the formal systems in terms of clarity, the number of variables used and the types of variables used. Both the formal and informal methods incorporate both subjective and objective variables and different numbers of variables. Generally the methods used for managing relationships have been described rather vaguely. In situations where there is no system or an informal system, experience was mentioned as being important in determining how relationships were handled. Over time people learn how to handle specific situations, the company's capabilities, certain people within various companies ete. Respondents stated that new recruits generally learned from the older employees. This method has numerous flaw*. primarily the lack of standardisation between emplo\ees but there are man\ others

6.5 Successful and Problematic RelationshipsBuyers and sellers both had similar views of what elements contributed to making a successful relationship.

Primarily the product needs to be of a satisfactory quality, as defined b\ the customers. It needs to match the customers' requirements; and this is achieved in a number of ways Companies are attempting to obtain a better understanding of their customers' requirements so they can provide products, which will match their needs more precisely. Some companies are capable of producing a specific product requested by the customer and some customers have an ideal application for the company's product. Buyers want a quality product, which shows that the suppliers have an understanding of the buyer's market. They do not want suppliers wasting their time showing them products, which have no relevance to their targeted market. They also do not want to have to go searching for the right product. A Food Development Manager has a good relationship with an innovative supplier because the supplier not only knew the market of his customer i.e. the types of products and the acceptable price range but was able to provide the customer with something different and appealing, which would positively differentiate him from his competitors.

A lack of understanding and knowledge of each other's business and market has contributed to causing problems and breakdowns in relationships. \ Food Dexelopmem Manager's relationship with a French supplier has broken down purely because the company lacks an understanding not only of the British food supplied in public houses but of the food supplied in the buyer's chain of pubs. They also lack knowledge about the price range acceptable to the buyer. The last product the> put forward to the Food Development Manager was jugged hare, which is firstly, not a popular British dish, and secondly, it was too highly priced.

i/i McLoughlin, Damien. and C. Horan (eds.), Proceedings of The 15th Annual IMP Conference,University College, Dublin 1999

of 22

The price has to be acceptable to both parties. It has to be competitive in comparison to other suppliers and it has to be profitable in terms of making money for suppliers and saving money for customers. A packaging company sets the price with one customer at the beginning of the year and it remains that price all year.

Price was also a recurring factor in problematic and failed relationships Customers often demand the required product at a price, which the supplying company cannot afford, consequently the customer took their business to a supplier \\ ho could provide the product at the price they wanted. One supplier said a competitor \\as suppling similar quality products 50% cheaper than his own compam Another supplier said the customer would purchase on price alone and would not take a balanced view of what his compan) v\as offering in terms of after sale* service. Product pricing i.> important and options used to keep contracts include, maintaining a competitive price, reviewing the pricing with the possibility of a rebate based on turnover.

The supplier must be able to meet the customers' delivery dates and be flexible but also the buyer needs to understand and accept the capabilities of the supplier. An efficient after sales service is essential for many companies. An aeronautical company promises to replace their component within four hours otherwise the plane is grounded costing the customer money.

The company has to have the technological capability to satisfy the customers' needs. One company invited the customer to product seminars and to the factory where the product was made. This provided the customer with the opportunity to collect all the information required about the product and also about the company as a whole operation i.e. the staff, the conditions etc. The same company said this process which was not a hard sell, was important in building up the customer's trust and confidence in the company. Technological competence demonstrates the ability of suppliers to put themselves in their customers' position of anticipating future problems and developments. It also demonstrates their position in comparison to their competitors for example whether they are more technologically advanced.

Companies may successfully collaborate with others due to them having the exact innovative and/or technological capabilities required. A bus company collaborated with another company to produce parts for a gas powered vehicle. Two companies may have similar aims, which can be achieved more successfully through working together. For example a medical company made a product that reduced infection and an American company made a product which is essentially a graft for burns. People needed to be educated how to use the American product but even after undergoing training the patient's graft would often become infected resulting in the loss of the product which was expensive. A strategic alliance between the two companies meant that the two products were sold together resulting in the graft being used more successfully because the other company's product reduced the chances of infection occurring.

Organisational structure whilst not mentioned as contributing to any successful relationships, has created a problematic relationship as it caused communication problems. A telecommunications company set up a subsidiary to deal \\ith a subsidiary of a customer. The distance between the two companies is large due to the t\\o

.-Illin McLoughlin, Damien. and C. Horan (eds.). Proceeding of The 15' Annual IMP Conference.I'niversity College, Dublin 1999

Piiiit IS ol 22

• • ,. . . VJSM subsidiaries in between and has lead to poor communication and consequent the lossof trust and honesty.

Culture was stated as the root cause for the problems in one relationship. A French company, which builds aircraft, uses French suppliers in their standard models. Any airline who wants to purchase an aircraft from the French company can put in an RFC (request for change) asking for a specific component to be incorporated into the aircraft. An airline put in an RFC specifying that a British company's component should be used. The French company said the British company's component did not meet certain specifications therefore the British company had to carry out a number of tests at their own expense to confirm that it met the necessary standards although it had supplied the component to another customer without problems. The French customer in addition said they would put the component and the company into a global "'catalogue" \\hich potential customers have access to. However the French compam ha\c failed to put the British component into the "catalogue" stating various reasons such as lack o! manpower. The French company's action is costing the British company money in lost sales through failing to enter their component on the global "catalogue" 1 hen- nationalistic attitude is largely responsible for the creation of friction between the two companies.

A successful relationship has been described as a "smooth running" account, one where presumably there are no disagreements about the factors mentioned above.

A major element contributing to both successful and problematic relationships are the interactions between the individuals from each company. The interactions for a positive relationship must involve communication, which is open and trustworthy. Other elements may contribute to creating a successful or problematic relationship including friendliness, co-operativeness, commitment, competitiveness, power and the ability to solve problems. These attributes make up the relationship atmosphere and were compared in successful and problematic/failed relationships.

Table 6: Comparing the Relationship Atmosphere of Successful and Problematic Relationships.

Characteristic

FriendlinessOpennessTrustCommitmentCompetitivenessCooperativenessPowerfulnessAbility to solve problems

Successful (n=19)

3. 8 (sd 0.63)3. 8 (sd 0.62)3. 6 (sd 0.68)3. 9 (sd 0.65)2. 8 (sd 0.55)3.7(sd0.44)3.1 (sdO.52)3. 8 (sd 0.51)

Problematic (n=ll)

2.1 (sdO.59)2.1(sd 0.93)1.9(sd0.67)2. 8 (sd 0.83)3.1 (sdO.50)2. 7 (sd 0.36)3.0 (sd 0.92)2.3 (sd 0.98)

T value Sig.

7.2 0.000*5.6 u.OUO*

-6.4 0.000*-4.1 0.000*

1.4 1.61-6.4 0.000*-0.23 0.822

-4.73 0.000*

The scales of each characteristic range from 1-5, the higher the score the more of the characteristic.

It can be observed that successful relationships score significantly higher on all of the characteristics except competitiveness and powerfulness. The highest score is for commitment, followed by friendliness, openness, the ability to solve problems and co-


of 22

_operativeness. Trust came surprising!) low. This ma\ be explained b\ businesses not trusting each other 100% purely because they are in business Competitiveness and powerfulness did not contribute to successful relationships.

The relationship atmosphere is partially created by the individuals within the company therefore their personalities are important in determining the success of a relationship During a twenty two year relationship between an aeronautical company and an airline the same two people have dealt with each other. They get on socially and have built a close relationship, for example, the seller is invited over to the purchaser's home for meals and the seller has arranged for the purchaser's daughter to do work experience at his company and stay at his home. This relationship has continued without the need for formal contracts. However various changes have lead to the introduction of formal contracts which the seller is hoping to get the current purchaser to sign before he retires and a new purchaser is recruited. A Food Development Manager said if he got on well and liked the supplier he was more likely to fit a meeting with them, return their calls etc. Also if they supplied a product which was not up to his required standard he would be more prepared to work on the product with a supplier he liked to bring it up to standard than he would be if it was a supplier he did not particularl) like friendships, along with family ties, both contribute to establishing successful relationships.

The following relationship will eventually fail in a spectacular way due to a poor relationship atmosphere and a lack of open and honest communication. \ companv, which manufactures medical equipment, set up a deal to distribute one of then products through an American company. In order for the product to be alkmed to be sold in America it had to pass certain tests laid down by the PDA. The health equipment company had carried out tests, which complied with British standards, and it had passed these results on to the PDA, which readily accepted them as compl>mg with their own standards. However, the health equipment company had failed to release results of other tests, which would mean the PDA would fail to approve it for the American market. Obviously the respondent dealing with the American distributor found the situation to be stressful, as she had to avoid talking about specific test results. If the health equipment company were found to be releasing such a product onto the American market it could be disastrous. The health equipment company was aware of the standards they had to meet but they were prepared to take the risk rather than talk to the American distributor about altering the product for the market.

This relationship was also problematic due to poor communication. A packaging company arranged a deal with an agent to provide labels. The agent was asked by the company to provide labels meeting the company's specification. The agent provided labels but when the company used them they smudged. The compam claimed the labels provided did not meet their specification and showed them the perfect labels they produced when the right specification was used. The agent claimed the compam had altered the settings on their machinery, which was false, hventually the a^ent u.>»ed the company's labels and met the delivery schedules. The agent paid the company 76% of the agreed price but refused to pa\ the remainder due to expenses incurred and consequential losses. The woman representing the agent sent a fax to the company stating that the agent accepted some of the blame for what had happened between the two companies which she followed up with a phone call saying the fax should be destroyed. The company was open and honest about what they wanted and what they were doing to achieve it. The agent perhaps showed a lack of understanding of the


of 22

packaging company's business by providing labels, which were not the right specification. It is possible they thought the company had smudged the labels on purpose to make the agent buy labels from them to gain more business. Ideally both parties should have sat down and talked about the bad results and the company should have explained why they needed specific labels. However, an element of distrust entered the relationship effecting future communications.

Problem resolution was extremely important for winning contracts. The ability of an aeronautical company to solve a customer's problem and improve their profits won a contract. An airline's aircraft of a particular type were regularly grounded due to an unreliable component. The aeronautical company provided a reliable product, which practically doubled the aircraft's flying hours and consequently improved their profits. In addition once the company had successfully provided the component for one type of aircraft the airline were willing to use them as a supplier for other aircraft types.

7. SummaryThree major factors were examined, the influence of IT and globalisation and thechanges in customers' expectations. IT and globalisation did not seem to have impactedon relationships as much as anticipated. However there was a considerable change incustomers' expectations in that they have become increasingly demanding of theirsuppliers.

The management of relationships has changed over the years including an increase in the use of a system, either formal or informal. However the clarity and usefulness of these systems is not clear.

The methodological criticisms, the definition and measurement of terms and the generalisation of findings cannot be addressed at this preliminary stage of the research due to the small sample size. It is anticipated that the second stage of thi.s research project, a large survey, will enable progress to be made in these methodological areas

ReferencesCampbell, N. and Cunningham M.T., (1983), Customer Analysis for Strategy Development in Industrial Markets, Strategic Manangenient Journal, Vol. 4 pp. 309- 380

Cunningham M.T. and Homse E., (1982), An Interaction Approach to Marketing Strategy, in Industrial Marketing and Purchasing of Industrial Goods: An Interaction Approach, Hakan Hakansson (Ed), John Wiley and Sons

Dwyer, R.F., Schurr, P. and Oh, S., (1987), Developing Buyer-Seller Relationships, Journal of Marketing, Vol. 51 pp. 11-27

Fiocca, R., (1982), Account Portfolio Analysis for Strategy Development, Industrial Marketing Management, Vol. 11 pp. 53-62

Ford, D., (1984), Buyer/Seller Relationships in International Industrial Markets. Industrial Marketing Management Vol. 13 pp. 101 112

Ford, D., (1998), Plenary at the 14 l IMP Conference, Turku, Finland, September

in McLoughlin, Damien. and C. Horan (eds.). Proceeding* oj The 75"' liunnil IMP Conference.University College, Dublin 1999

of 22

Hakansson H. (Ed.), (1982), International Marketing and Purchasing of Industrial Goods: An Interaction Approach, John Wiley and Sons, Chichester, New York, Brisbane, Toronto, Singapore

Hardwick B. and Ford, D., (1986), Industrial Buyer Resources and Responsibilities and the Buyer-Seller Relationships, Industrial Marketing and Purchasing, Vol. 1 pp. 3-25

Holland C.P. and Lockett, A.G., (1997) Mixed Mode network Structures: The Strategic Use of Electronic Communication by Organisations, Organisational Science. 8:5, pp. 475-488

Krapfel. R.F Jr.. Salmon. D. and Spekman. R. (1991). \ Strategic Approach to Managing Buyer-Seller Relationships, European Journal of Marketing, \ ol. 25 No. 9 pp. 22-37

Magretta, J., (1998) The Power of Virtual Integration: An Interview with Dell Computer's Michael Dell, Harvard Business Review, (March/April), pp. 72-84

Moorman, C., Zaltman, G. and Deshpande R., (1992), Relationships Between Providers and Users of Marketing Research: The Dynamics of Trust Within and Between Organisations, Journal of Marketing Research, Vol.29 pp. 314-329

Morgan R.M. and Hunt S.D., (1994), The Commitment-Trust Theory of Relationship Marketing, Journal of Marketing, Vol. 58 (July) pp. 20-38)

Naude, P. and Holland, C. P., (1996) Business-to-business relationships, in Relationship Marketing, edited by F. Buttle, Paul Chapman Publishing, pp. 40-54

Shapiro, Benson, P., Rangan V.K., Moriarty, R.T. and Ross E.B., (1987), Manage Customers for Profits (not just for sales). Harvard Business Review. September-October pp. 101-108

Turnbull, P.W., Cunningham M.T. (Eds), (1981), International Marketing and Purchasing A Survey Among Marketing and Purchasing Executives in Five huropean Countries, The Macmillan Press, London and Basingstoke

Turnbull, P., Ford, D. and Cunningham M., (1996), Interaction, relationships and networks in business markets: an evolving perspective., Journal of Business and Industrial Marketing, Vol. 11 No. 3/4 pp. 44-62

Turnbull P.W. and Zolkiewski J., (1998), Relationship Profitability: Is Portfolio Planning the Key? (Paper in progress)

Williamson, O.E., (1975), Markets and Hierarchies: Analysis and Antitrust Implications, Free Press, New York

Valla, J-P. (1997) Plenary session at the 13 th IMP conference, Lyon, France, September


Pam 22 o! 22

. Wilson D.T., (1995), An Integrated Model of Buyer-Seller Relationships, Journal o/ theAcademy of Marketing Science. Vol. 23 No 4 pp 31>345

Yorke, D.A. and Droussiotis, G., (1994), The Use of Customer Portfolio Theor\ An Empirical Survey, Journal of Business and Industrial Marketing, Vol. 9 No. 3 pp. 6-IS


of 22

managing relationship research in a turbulent environment

Documents