This document summarizes a research paper about governance of buyer-supplier relationships in Morocco. It discusses how collaborative, long-term relationships can provide competitive advantages but also notes that many such relationships fail. The document reviews contractual and relational approaches to understanding buyer-supplier relationships. It discusses how relational approaches consider non-contractual factors like trust, commitment, and learning that influence relationship effectiveness and sustainability. Finally, it examines theories of power and dependence in relationships and how mutual dependence between buyers and suppliers can encourage cooperative behavior.
Collaboration in Buyer-Seller Relationships as a New Approach to Competitive ...IOSR Journals
Although recent academic work on business relationships often discusses relationship quality as a major subject, particularly with regard to the phenomenon of seller stratification, there is still little empirical research on this important construct. In this paper, the authors provide a thorough conceptualization of relationship quality and its possible antecedents, i.e., bond relationship, Temporal, Social, and Structural bond, drawing on an empirical base of 219 buyers questionnaires, Structural equations modeling (SEM) is used to assess the simultaneous effects of the predictive variables. An empirical survey confirms the impact of the relational bond dimension on the satisfaction. The satisfaction has an effect on the customer trust witch influence his commitment. The findings are discussed and the authors provide managerial implications for decision-makers from both buyer and supplier organizations.
Managing Material and Logistics Embeddedness: Material Buyers' PerspectiveRuss Merz, Ph.D.
Because an organization's visibility and decision-making abilities in a supply network is limited by its embeddedness, managing the embedded activities may be affected by non-contractual forms of governance and capability. Whatever the organization cannot see, it can't efficiently control. In this paper, the authors have studied non-contractual governance, dependence, and reliance in a manufacturer-vendor dyad in light of logistics, spill-over customer-centric service, and performance. Relational norms (information sharing and flexibility), trust, commitment, and bilateral dependence were hypothesized to explain manufacturers' logistics capability and customer-centric services. Using SEM-PLS (Structural Equation Modeling using Partial Least Squares) approach, all the hypothesized paths were proven with adequate R2 explained for each construct; R2 for financial performance was low.
Value creation in relationship exchange explication by Ethical Approach: an a...IOSR Journals
This research developed an integrative model to explain the impact of the ethical dimension and bonding on value relationship in the field of services to morocco SMES on inter organizational context. In this article, the authors provide a thorough conceptualization of value relationship and its possible antecedents, i.e., bond relationship; equity drawing on an empirical base of 240 SMEs questionnaires, Structural equations modeling (SEM) is used to evaluate the simultaneous effects of the predictive variables. Implications for marketers’ academicians and managers are discussed, and areas for future research are presented.
This document summarizes a research article that examines how transaction costs and goodwill trust influence the nature of business relationships between organizations in electronic markets. The article first reviews literature on how transaction cost economics has been used to analyze how information technology impacts relationships. It notes limitations of only considering transaction costs and discusses how incorporating the concept of goodwill trust can provide additional insights. The article aims to address both transaction costs and goodwill trust to better understand how internet-based electronic markets shape interorganizational relationships between collaborative and transactional models. It analyzes two case studies to describe the role of trust and transaction costs in these relationships.
This document summarizes key concepts from relationship marketing literature. It discusses three types of relationships: business marketing relationships between symmetric partners; interpersonal commercial relationships between service firms and customers; and business-to-customer relationships. While business marketing relationships have been well-studied, critics argue that relationship marketing has limited application to business-to-customer relationships due to the lack of interdependence. The document also discusses perspectives on relationship marketing practice, noting that most firm communications are one-way and do not impact future interactions. It emphasizes understanding relationships from the customer's viewpoint.
Determine the role of customer engagement on relationship qualityAlexander Decker
This document summarizes a conceptual paper that aims to investigate the potential effect of customer engagement on relationship quality and relationship performance. It proposes that customer engagement is based on social exchange theory and is linked to relationship quality and relationship performance. Specifically, it argues that relationship involvement moderates the relationship between customer engagement and relationship quality. The paper provides background on relationship marketing and social exchange theory. It establishes customer engagement as a concept and distinguishes it from similar marketing constructs. The purpose is to determine how customer engagement impacts relationship quality and performance, especially in service industries.
The effects of trust and interdependence on relationship commitment: A trans-...Jan-Benedict Steenkamp
In recent years, interorganizational relationship management has become of paramount interest in marketing channels research. Marketing managers and researchers have identified mutual commitment among exchange partners in a marketing channel as central to successful relationship marketing and as key to producing significant benefits for firms. We consider two types of commitment that may characterize interfirm relationships, Affective commitment expresses the extent to which channel members like to maintain their relationship with specific partners. Calculative commitment measures the degree to which channel members experience the need to maintain a relationship. After conceptualizing commitment, we offer a set of hypotheses concerning the joint impact of trust and interdependence on both affective and calculative commitment. Testing our hypotheses in a field study involving two countries, we find strong evidence that total interdependence enhances both
affective and calculative commitment. Which type of commitment develops depends on trust. The unexpected positive effect of interdependence asymmetry on affective commitment seems to be in line with a stream of research that has emphasized the positive role of power differences in promoting the effective coordination of channel relationships.
Collaboration in Buyer-Seller Relationships as a New Approach to Competitive ...IOSR Journals
Although recent academic work on business relationships often discusses relationship quality as a major subject, particularly with regard to the phenomenon of seller stratification, there is still little empirical research on this important construct. In this paper, the authors provide a thorough conceptualization of relationship quality and its possible antecedents, i.e., bond relationship, Temporal, Social, and Structural bond, drawing on an empirical base of 219 buyers questionnaires, Structural equations modeling (SEM) is used to assess the simultaneous effects of the predictive variables. An empirical survey confirms the impact of the relational bond dimension on the satisfaction. The satisfaction has an effect on the customer trust witch influence his commitment. The findings are discussed and the authors provide managerial implications for decision-makers from both buyer and supplier organizations.
Managing Material and Logistics Embeddedness: Material Buyers' PerspectiveRuss Merz, Ph.D.
Because an organization's visibility and decision-making abilities in a supply network is limited by its embeddedness, managing the embedded activities may be affected by non-contractual forms of governance and capability. Whatever the organization cannot see, it can't efficiently control. In this paper, the authors have studied non-contractual governance, dependence, and reliance in a manufacturer-vendor dyad in light of logistics, spill-over customer-centric service, and performance. Relational norms (information sharing and flexibility), trust, commitment, and bilateral dependence were hypothesized to explain manufacturers' logistics capability and customer-centric services. Using SEM-PLS (Structural Equation Modeling using Partial Least Squares) approach, all the hypothesized paths were proven with adequate R2 explained for each construct; R2 for financial performance was low.
Value creation in relationship exchange explication by Ethical Approach: an a...IOSR Journals
This research developed an integrative model to explain the impact of the ethical dimension and bonding on value relationship in the field of services to morocco SMES on inter organizational context. In this article, the authors provide a thorough conceptualization of value relationship and its possible antecedents, i.e., bond relationship; equity drawing on an empirical base of 240 SMEs questionnaires, Structural equations modeling (SEM) is used to evaluate the simultaneous effects of the predictive variables. Implications for marketers’ academicians and managers are discussed, and areas for future research are presented.
This document summarizes a research article that examines how transaction costs and goodwill trust influence the nature of business relationships between organizations in electronic markets. The article first reviews literature on how transaction cost economics has been used to analyze how information technology impacts relationships. It notes limitations of only considering transaction costs and discusses how incorporating the concept of goodwill trust can provide additional insights. The article aims to address both transaction costs and goodwill trust to better understand how internet-based electronic markets shape interorganizational relationships between collaborative and transactional models. It analyzes two case studies to describe the role of trust and transaction costs in these relationships.
This document summarizes key concepts from relationship marketing literature. It discusses three types of relationships: business marketing relationships between symmetric partners; interpersonal commercial relationships between service firms and customers; and business-to-customer relationships. While business marketing relationships have been well-studied, critics argue that relationship marketing has limited application to business-to-customer relationships due to the lack of interdependence. The document also discusses perspectives on relationship marketing practice, noting that most firm communications are one-way and do not impact future interactions. It emphasizes understanding relationships from the customer's viewpoint.
Determine the role of customer engagement on relationship qualityAlexander Decker
This document summarizes a conceptual paper that aims to investigate the potential effect of customer engagement on relationship quality and relationship performance. It proposes that customer engagement is based on social exchange theory and is linked to relationship quality and relationship performance. Specifically, it argues that relationship involvement moderates the relationship between customer engagement and relationship quality. The paper provides background on relationship marketing and social exchange theory. It establishes customer engagement as a concept and distinguishes it from similar marketing constructs. The purpose is to determine how customer engagement impacts relationship quality and performance, especially in service industries.
The effects of trust and interdependence on relationship commitment: A trans-...Jan-Benedict Steenkamp
In recent years, interorganizational relationship management has become of paramount interest in marketing channels research. Marketing managers and researchers have identified mutual commitment among exchange partners in a marketing channel as central to successful relationship marketing and as key to producing significant benefits for firms. We consider two types of commitment that may characterize interfirm relationships, Affective commitment expresses the extent to which channel members like to maintain their relationship with specific partners. Calculative commitment measures the degree to which channel members experience the need to maintain a relationship. After conceptualizing commitment, we offer a set of hypotheses concerning the joint impact of trust and interdependence on both affective and calculative commitment. Testing our hypotheses in a field study involving two countries, we find strong evidence that total interdependence enhances both
affective and calculative commitment. Which type of commitment develops depends on trust. The unexpected positive effect of interdependence asymmetry on affective commitment seems to be in line with a stream of research that has emphasized the positive role of power differences in promoting the effective coordination of channel relationships.
Brennan, Niamh M., Merkl-Davies, Doris M., and Beelitz, Annika [2013] Dialogi...Prof Niamh M. Brennan
We conceptualise CSR communication as a process of reciprocal influence between organisations and their audiences. We use an illustrative case study in the form of a conflict between firms and a powerful stakeholder which is played out in a series of 20 press releases over a two-month period to develop a framework of analysis based on insights from linguistics. It focuses on three aspects of dialogism, namely (i) turn-taking (co-operating in a conversation by responding to the other party), (ii) inter-party moves (the nature and type of interaction action characterising a turn i.e., denial, apology, excuse), and (iii) intertextuality (the intensity and quality of verbal interaction between the parties). We address the question: What is the nature and type of verbal interactions between the parties? First we examine (a) whether the parties verbally interact and then (b) whether the parties listen to each other.
We find evidence of dialogism suggesting that CSR communication is an interactive process which has to be understood as a function of the power relations between a firm and a specific stakeholder. Also, we find evidence of intertextuality in the press releases by the six firms which engage in verbal interaction with the stakeholder. We interpret this as linguistic evidence of isomorphic processes relating to CSR practices resulting from the pressure exerted by a powerful stakeholder. The lack of response by ten firms that fail to issue press releases suggests a strategy of ‘watch-and-wait’ with respect to the outcome of the conflict.
Merkl-Davies, Doris M. and Brennan, Niamh M. [2007] Discretionary Disclosure ...Prof Niamh M. Brennan
This paper reviews and synthesizes the literature on discretionary narrative disclosures. We explore why, how, and whether preparers of corporate narrative reports use discretionary disclosures in corporate narrative documents and why, how, and whether users react thereto. To facilitate the review, we provide three taxonomies based on: the motivation for discretionary narrative disclosures (opportunistic behavior, i.e. impression management, versus provision of useful incremental information); the research perspective (preparer versus user); and seven discretionary disclosure strategies.
This document provides an overview of business networks and the ARA model, analyzing the case of Azimut-Benetti boatyards. It begins with theoretical background on network perspectives and the IMP approach. It then examines Azimut-Benetti's Benetti-Net network, which connects the company and other marine sector firms. The document analyzes how the network benefits members and applies network theory concepts to understand the case.
Organization Structure and Service Capabilities as Predictors of Supply Chain...Russ Merz, Ph.D.
An article published in the Journal of Applied Marketing Theory that reports on a study examining how organizational characteristics and service capabilities of supply chains explain performance. The study utilized survey data to build a predictive model.
This document provides a research proposal on the franchise market situation in Germany. The proposal has the following objectives:
1. To understand the synergy between major franchises like KFC, Starbucks, and Pizza Hut and their work councils in Germany.
2. To learn more about the risks faced by these franchises and their work councils.
3. To analyze the strategic networks between franchises and their franchisees in Germany and how resources are leveraged through these networks.
The proposal discusses strategic networking theory and different types of strategic networks like alliances, joint ventures, and franchising. It aims to adopt dimensions for analyzing strategic networks between franchises and franchisees in Germany.
Through an extensive analysis of theoretical and empirical literature on competition and risk in banking, this document forms the hypothesis that competition and risk are positively correlated. Several factors are discussed that support this hypothesis, including financial liberalization increasing competition and leading banks to take on riskier activities to maintain profits. Deregulation and consolidation in the banking sector are also argued to increase competition and incentivize greater risk-taking by banks. While various perspectives on the relationship between competition and risk are considered, the paper concludes that most evidence favors the view that higher competition induces higher risk in the banking industry.
Communications in Organization - Institutional Talk in Sales WorkCris Ong
Institutional talk and bodily conduct are useful tools for understanding sales work. Studies show that rapport is built through small talk sequences that establish affiliation between salespeople and customers. Sales objections are also revealed through implicit disagreements in adjacency pairs. Price escalation is influenced by how prices are presented interactionally - yes/no questions tend to elicit higher payments than alternative questions. Bodily conduct and use of objects also provide insights - maintaining rapport may involve retracting a touch, and auctioneers can encourage higher bids through delaying a gavel or targeting under-bidders for repeated invitations. Both talk and non-verbal elements sequentially organize actions to accomplish sales interactions and outcomes.
FAIRNESS: A CHALLENGE FOR THE DISTRIBUTION OF COOPERATION GAINS IN VALUE CHAINSijmvsc
Most scientific publications on the subject of value chain management only analyze which structures, processes and actions can contribute to the creation of cooperation gains. How the distribution of cooperation gains that were collectively achieved can influence the stability of such a cooperation is often disregarded. The distributive justice or the fair distribution of collectively created cooperation gains is one of the most important ways to secure the stability of networks. This paper therefore presents a proposal for an operationalization of the fairness term from an economic perspective. This proposal is specific to the distribution of cooperation gains in networks of autonomously acting companies and takes a cooperative game theory approach as its basis. With the aid of the τ-value, it is shown how intuitive and vague associations of fairness can be substantiated to give a concrete distribution proposal that can be perceived and communicated as fair by gradually establishing rational or at least plausible assumptions.
Effects of switching barriers on satisfaction repurchase intentions and attit...Cuong Dinh
This document summarizes previous research on switching barriers and their effects on customer satisfaction, repurchase intentions, and attitudinal loyalty. It defines switching barriers as any factors that make it difficult or costly for customers to change providers. Previous studies have identified different types of switching barriers, including interpersonal relationships with suppliers, switching costs, investment in the current relationship, and attractiveness of alternative providers. The document proposes that switching barriers can have both positive and negative effects, and aims to empirically test their impacts on satisfaction, repurchase intentions, and loyalty.
Effects Of Internal Organization Communication Channels On Efficiency In The ...paperpublications3
Abstract: In the recent years ,Kenya’s Public Procurement has experienced phenomenal importance with the formation of the Public Procurement and Oversight Authority and the subsequent reforms seeing the institutionalization of procurement in all public entities .With the launch in 2008 of Kenya’s development blue print vision 2030, the role of public procurement in stimulating economic growth and development has received more attention than before .The central objective of this study is to examine the effect of internal organization communication channels on efficiency of the procurement function in public institutions in Kenya using Kenya Seed Company as a case study . The study aimed at determining the effect of communication between procurement personnel on supplier selection, effect of communication between procurement and user departments on quality control of goods and services, effect of communication between procurement personnel on staff training and performance and well as effect of communication between procurement and user departments on inventory management. Data was collected by means of a structured questionnaire. Analysis of quantitative data was done using measures of central tendency, correlation and regression analysis. From the findings, communication between procurement department personnel explained 36 % of procurement efficiency, communication on quality control of goods and services explained 32% of procurement efficiency, communication on staff training and performance explained 22% of procurement efficiency while communication on inventory management explained 13 % of procurement efficiency. For the public entities to realize increased efficiency and effectiveness in the delivery of services, these four factors must be put into consideration during execution of procurement functions.
Keywords: Efficiency in procurement, internal organization communication channels, Procurement Function, Procurement functions, Public Procurement, Supply chain.
This document provides an abstract and introduction to a paper about developing a stakeholder perspective of business strategy. The paper's thesis is that how individuals cooperate through organizational structures affects the knowledge they apply to business activities. It considers knowledge as a network and takes a knowledge-based view of why firms exist, rather than just a goods-centered view. The paper will define stakeholders and discuss governance mechanisms, knowledge-based transaction costs, and developing a stakeholder perspective of business strategy based on considering five types of capital.
Alliance portfolios and shareholder value in post-IPO firms: The moderating roles of portfolio structure and firm-level uncertainty by Nacef Mouri, M.B. Sarkar, Melissa Frye.
Multidimensional Analysis Of The External Environment In The Strategic Netwo...theijes
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
The papers for publication in The International Journal of Engineering& Science are selected through rigorous peer reviews to ensure originality, timeliness, relevance, and readability.
When intelligence is dysfunctional for achieving sales performance | Professi...Professional Capital
This document discusses a study that investigates how general mental ability (GMA) interacts with other skills and capabilities like social competence and thinking styles to impact sales performance. The study finds that GMA alone does not predict sales performance, but it does when combined with other factors. Specifically, high GMA leads to the highest sales performance when combined with high social competence, but the lowest performance when combined with low social competence. High GMA also interacts with judicial thinking styles to positively impact sales performance. The study suggests sales success requires both cognitive abilities (GMA) and their application through social skills and thinking styles.
Attachment Styles and Sales Persons Behavior by Prof Willem VerbekeProfessional Capital
Attachment Styles and Sales Persons Behavior by Prof Willem Verbeke. The article seeks to understand the biological process - hard-wired neurological and endrocine processes conserved over millions of years in different spieces - that might help us to understand how people operate in organisations, particular those who work with others outside the organisation like clients and customers.
Corporate social-and-financial-performance-an-extended-stakeholder-theory-and...Jan Ahmed
This document summarizes a research article that empirically analyzes the relationship between corporate social performance (CSP) and corporate financial performance (CFP). The study extends stakeholder theory by considering stakeholder heterogeneity and incorporating insights from prospect theory. It analyzes a panel dataset of S&P 500 companies from 1997-2002 that includes disaggregated measures of CSP. The study finds that a reputation for CSP is more strongly related to CFP for secondary stakeholders than primary stakeholders. It also finds that the negative impact of bad CSP on CFP is larger than the positive impact of good CSP, due to prospect theory's concept of losses looming larger than gains. The study contributes to research by taking a more nuanced view of how different
1) The document presents a "Three C" framework for generating insider loyalty in de facto collaborations through contracting management, customization exploration, and explicit/implicit controls.
2) It studies how coactive dependence, explicit and implicit controls, and face-favour exchanges affect insider loyalty and relationship quality.
3) The results show that explicit contracts govern economic relationships while implicit controls provide flexibility, and that favour exchanges lead to long-term loyalty while implicit controls and customization exploration improve loyalty.
IPSERA 2016. Final paper by A. Okulov, A. van WeeleAnatoly Okulov
This document discusses relationship governance and its impact on performance outcomes in buyer-supplier relationships. It proposes that trust, commitment, and communication are key determinants of buyer-supplier performance. The study empirically tests these relationships using a sample of 95 Dutch firms, finding that trust, commitment, and communication positively influence quality improvement and customer satisfaction. Relationship governance mechanisms like contracts can also impact these relationships. Effective governance requires balancing formal mechanisms like contracts with informal aspects like trust and communication.
Role of relationship marketing in competitive marketing strategyDung Tri
1) The document discusses the role of relationship marketing in competitive marketing strategy. Relationship marketing involves identifying, establishing, maintaining and enhancing long-term relationships with customers to create value for both customers and the organization.
2) It defines relationship marketing and outlines a framework for competitive marketing strategy, which involves analyzing internal strengths/weaknesses as well as the external market environment. Relationship marketing serves as a moderator to sustain competitive advantages.
3) The role of relationship marketing in competitive marketing strategy includes guiding customer interactions, improving profitability, building partnerships, understanding customer needs, building trust, and protecting the emotional well-being of customers. These roles were observed in the hotel industry.
Brennan, Niamh M., Merkl-Davies, Doris M., and Beelitz, Annika [2013] Dialogi...Prof Niamh M. Brennan
We conceptualise CSR communication as a process of reciprocal influence between organisations and their audiences. We use an illustrative case study in the form of a conflict between firms and a powerful stakeholder which is played out in a series of 20 press releases over a two-month period to develop a framework of analysis based on insights from linguistics. It focuses on three aspects of dialogism, namely (i) turn-taking (co-operating in a conversation by responding to the other party), (ii) inter-party moves (the nature and type of interaction action characterising a turn i.e., denial, apology, excuse), and (iii) intertextuality (the intensity and quality of verbal interaction between the parties). We address the question: What is the nature and type of verbal interactions between the parties? First we examine (a) whether the parties verbally interact and then (b) whether the parties listen to each other.
We find evidence of dialogism suggesting that CSR communication is an interactive process which has to be understood as a function of the power relations between a firm and a specific stakeholder. Also, we find evidence of intertextuality in the press releases by the six firms which engage in verbal interaction with the stakeholder. We interpret this as linguistic evidence of isomorphic processes relating to CSR practices resulting from the pressure exerted by a powerful stakeholder. The lack of response by ten firms that fail to issue press releases suggests a strategy of ‘watch-and-wait’ with respect to the outcome of the conflict.
Merkl-Davies, Doris M. and Brennan, Niamh M. [2007] Discretionary Disclosure ...Prof Niamh M. Brennan
This paper reviews and synthesizes the literature on discretionary narrative disclosures. We explore why, how, and whether preparers of corporate narrative reports use discretionary disclosures in corporate narrative documents and why, how, and whether users react thereto. To facilitate the review, we provide three taxonomies based on: the motivation for discretionary narrative disclosures (opportunistic behavior, i.e. impression management, versus provision of useful incremental information); the research perspective (preparer versus user); and seven discretionary disclosure strategies.
This document provides an overview of business networks and the ARA model, analyzing the case of Azimut-Benetti boatyards. It begins with theoretical background on network perspectives and the IMP approach. It then examines Azimut-Benetti's Benetti-Net network, which connects the company and other marine sector firms. The document analyzes how the network benefits members and applies network theory concepts to understand the case.
Organization Structure and Service Capabilities as Predictors of Supply Chain...Russ Merz, Ph.D.
An article published in the Journal of Applied Marketing Theory that reports on a study examining how organizational characteristics and service capabilities of supply chains explain performance. The study utilized survey data to build a predictive model.
This document provides a research proposal on the franchise market situation in Germany. The proposal has the following objectives:
1. To understand the synergy between major franchises like KFC, Starbucks, and Pizza Hut and their work councils in Germany.
2. To learn more about the risks faced by these franchises and their work councils.
3. To analyze the strategic networks between franchises and their franchisees in Germany and how resources are leveraged through these networks.
The proposal discusses strategic networking theory and different types of strategic networks like alliances, joint ventures, and franchising. It aims to adopt dimensions for analyzing strategic networks between franchises and franchisees in Germany.
Through an extensive analysis of theoretical and empirical literature on competition and risk in banking, this document forms the hypothesis that competition and risk are positively correlated. Several factors are discussed that support this hypothesis, including financial liberalization increasing competition and leading banks to take on riskier activities to maintain profits. Deregulation and consolidation in the banking sector are also argued to increase competition and incentivize greater risk-taking by banks. While various perspectives on the relationship between competition and risk are considered, the paper concludes that most evidence favors the view that higher competition induces higher risk in the banking industry.
Communications in Organization - Institutional Talk in Sales WorkCris Ong
Institutional talk and bodily conduct are useful tools for understanding sales work. Studies show that rapport is built through small talk sequences that establish affiliation between salespeople and customers. Sales objections are also revealed through implicit disagreements in adjacency pairs. Price escalation is influenced by how prices are presented interactionally - yes/no questions tend to elicit higher payments than alternative questions. Bodily conduct and use of objects also provide insights - maintaining rapport may involve retracting a touch, and auctioneers can encourage higher bids through delaying a gavel or targeting under-bidders for repeated invitations. Both talk and non-verbal elements sequentially organize actions to accomplish sales interactions and outcomes.
FAIRNESS: A CHALLENGE FOR THE DISTRIBUTION OF COOPERATION GAINS IN VALUE CHAINSijmvsc
Most scientific publications on the subject of value chain management only analyze which structures, processes and actions can contribute to the creation of cooperation gains. How the distribution of cooperation gains that were collectively achieved can influence the stability of such a cooperation is often disregarded. The distributive justice or the fair distribution of collectively created cooperation gains is one of the most important ways to secure the stability of networks. This paper therefore presents a proposal for an operationalization of the fairness term from an economic perspective. This proposal is specific to the distribution of cooperation gains in networks of autonomously acting companies and takes a cooperative game theory approach as its basis. With the aid of the τ-value, it is shown how intuitive and vague associations of fairness can be substantiated to give a concrete distribution proposal that can be perceived and communicated as fair by gradually establishing rational or at least plausible assumptions.
Effects of switching barriers on satisfaction repurchase intentions and attit...Cuong Dinh
This document summarizes previous research on switching barriers and their effects on customer satisfaction, repurchase intentions, and attitudinal loyalty. It defines switching barriers as any factors that make it difficult or costly for customers to change providers. Previous studies have identified different types of switching barriers, including interpersonal relationships with suppliers, switching costs, investment in the current relationship, and attractiveness of alternative providers. The document proposes that switching barriers can have both positive and negative effects, and aims to empirically test their impacts on satisfaction, repurchase intentions, and loyalty.
Effects Of Internal Organization Communication Channels On Efficiency In The ...paperpublications3
Abstract: In the recent years ,Kenya’s Public Procurement has experienced phenomenal importance with the formation of the Public Procurement and Oversight Authority and the subsequent reforms seeing the institutionalization of procurement in all public entities .With the launch in 2008 of Kenya’s development blue print vision 2030, the role of public procurement in stimulating economic growth and development has received more attention than before .The central objective of this study is to examine the effect of internal organization communication channels on efficiency of the procurement function in public institutions in Kenya using Kenya Seed Company as a case study . The study aimed at determining the effect of communication between procurement personnel on supplier selection, effect of communication between procurement and user departments on quality control of goods and services, effect of communication between procurement personnel on staff training and performance and well as effect of communication between procurement and user departments on inventory management. Data was collected by means of a structured questionnaire. Analysis of quantitative data was done using measures of central tendency, correlation and regression analysis. From the findings, communication between procurement department personnel explained 36 % of procurement efficiency, communication on quality control of goods and services explained 32% of procurement efficiency, communication on staff training and performance explained 22% of procurement efficiency while communication on inventory management explained 13 % of procurement efficiency. For the public entities to realize increased efficiency and effectiveness in the delivery of services, these four factors must be put into consideration during execution of procurement functions.
Keywords: Efficiency in procurement, internal organization communication channels, Procurement Function, Procurement functions, Public Procurement, Supply chain.
This document provides an abstract and introduction to a paper about developing a stakeholder perspective of business strategy. The paper's thesis is that how individuals cooperate through organizational structures affects the knowledge they apply to business activities. It considers knowledge as a network and takes a knowledge-based view of why firms exist, rather than just a goods-centered view. The paper will define stakeholders and discuss governance mechanisms, knowledge-based transaction costs, and developing a stakeholder perspective of business strategy based on considering five types of capital.
Alliance portfolios and shareholder value in post-IPO firms: The moderating roles of portfolio structure and firm-level uncertainty by Nacef Mouri, M.B. Sarkar, Melissa Frye.
Multidimensional Analysis Of The External Environment In The Strategic Netwo...theijes
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
The papers for publication in The International Journal of Engineering& Science are selected through rigorous peer reviews to ensure originality, timeliness, relevance, and readability.
When intelligence is dysfunctional for achieving sales performance | Professi...Professional Capital
This document discusses a study that investigates how general mental ability (GMA) interacts with other skills and capabilities like social competence and thinking styles to impact sales performance. The study finds that GMA alone does not predict sales performance, but it does when combined with other factors. Specifically, high GMA leads to the highest sales performance when combined with high social competence, but the lowest performance when combined with low social competence. High GMA also interacts with judicial thinking styles to positively impact sales performance. The study suggests sales success requires both cognitive abilities (GMA) and their application through social skills and thinking styles.
Attachment Styles and Sales Persons Behavior by Prof Willem VerbekeProfessional Capital
Attachment Styles and Sales Persons Behavior by Prof Willem Verbeke. The article seeks to understand the biological process - hard-wired neurological and endrocine processes conserved over millions of years in different spieces - that might help us to understand how people operate in organisations, particular those who work with others outside the organisation like clients and customers.
Corporate social-and-financial-performance-an-extended-stakeholder-theory-and...Jan Ahmed
This document summarizes a research article that empirically analyzes the relationship between corporate social performance (CSP) and corporate financial performance (CFP). The study extends stakeholder theory by considering stakeholder heterogeneity and incorporating insights from prospect theory. It analyzes a panel dataset of S&P 500 companies from 1997-2002 that includes disaggregated measures of CSP. The study finds that a reputation for CSP is more strongly related to CFP for secondary stakeholders than primary stakeholders. It also finds that the negative impact of bad CSP on CFP is larger than the positive impact of good CSP, due to prospect theory's concept of losses looming larger than gains. The study contributes to research by taking a more nuanced view of how different
1) The document presents a "Three C" framework for generating insider loyalty in de facto collaborations through contracting management, customization exploration, and explicit/implicit controls.
2) It studies how coactive dependence, explicit and implicit controls, and face-favour exchanges affect insider loyalty and relationship quality.
3) The results show that explicit contracts govern economic relationships while implicit controls provide flexibility, and that favour exchanges lead to long-term loyalty while implicit controls and customization exploration improve loyalty.
IPSERA 2016. Final paper by A. Okulov, A. van WeeleAnatoly Okulov
This document discusses relationship governance and its impact on performance outcomes in buyer-supplier relationships. It proposes that trust, commitment, and communication are key determinants of buyer-supplier performance. The study empirically tests these relationships using a sample of 95 Dutch firms, finding that trust, commitment, and communication positively influence quality improvement and customer satisfaction. Relationship governance mechanisms like contracts can also impact these relationships. Effective governance requires balancing formal mechanisms like contracts with informal aspects like trust and communication.
Role of relationship marketing in competitive marketing strategyDung Tri
1) The document discusses the role of relationship marketing in competitive marketing strategy. Relationship marketing involves identifying, establishing, maintaining and enhancing long-term relationships with customers to create value for both customers and the organization.
2) It defines relationship marketing and outlines a framework for competitive marketing strategy, which involves analyzing internal strengths/weaknesses as well as the external market environment. Relationship marketing serves as a moderator to sustain competitive advantages.
3) The role of relationship marketing in competitive marketing strategy includes guiding customer interactions, improving profitability, building partnerships, understanding customer needs, building trust, and protecting the emotional well-being of customers. These roles were observed in the hotel industry.
This document discusses relationship marketing and its impact on organizational performance. It explores the theoretical foundations of relationship marketing and examines how adopting this concept affects performance indicators. Relationship marketing focuses on creating and sustaining long-term relationships with customers through mutual cooperation rather than short-term transactions. When organizations implement relationship marketing successfully through internal marketing and keeping promises to customers, it can lead to improved customer loyalty, retention and positive word-of-mouth, ultimately improving organizational performance. Interactive marketing and developing trust, empathy and reciprocity in customer relationships are important aspects of relationship marketing discussed in the document.
A Model of Manufacturer-Driven Governing Mechanisms and Distributor PerformanceRuss Merz, Ph.D.
Drawing from relational exchange, dependence, and agency theories the authors explain that it is not only the type of governing mechanisms but also the proper sequencing of them that improves a manufacturer-distributor relationship and performance. Dependence affected relationship continuity positively. Monitoring affected the second order relational norm construct, comprising information sharing and flexibility, positively. Relational norm positively affected relationship continuity. Dependence, relationship continuity, monitoring, and relational norm affected distributor performance positively.
The Hazards of Sole Sourcing RelationshipsChallenges, Pract.docxarnoldmeredith47041
The Hazards of Sole Sourcing Relationships:
Challenges, Practices, and Insights
Mark O. Lewis, Appalachian State University
Scott D. Hayward, Appalachian State University
Vijay Kasi, AT Kearney's Supply Chain Practice
Introduction
Fueled by advances in information technology,
supply chain management has moved from a
back office administrative function to a board
room imperative. Today, companies work more
closely with their suppliers to be more respon-
sive to customers' changing needs and to build
competitiveness. Many firms have significantly
reduced the number of suppliers they use,
sometimes to a single, trusted source to enable
tight integration between firms. Operations
management scholars continue to examine the
effects of tight supplier integration and often
point to the positive relationship between in-
tegration and performance (Handfield, Ragatz,
Peterson, and Monczka, 1999; Kulp, Lee, and
Ofek, 2004; Rosenzweig, Roth, and Dean Jr,
2003). With a relationship built on a foundation
of trust, single supplier relationships potentially
offer many benefits. The buyer and a single
supplier can better coordinate shipments and
production, share technological knowledge to
integrate the input into production, and com-
municate design changes to mutual benefit.
Multiple sourcing, in contrast, may weaken the
ties between the firm and its suppliers making
communication, control, and standardization
more difficult.
Though the potential benefits of single sourc-
ing and tight integration are many, the strategy
has its drawbacks. For example, Horwitch and
Thietart (1987) uncovered the costs of coordina-
tion, compromise, and rigidity that may follow
from especially tight firm-supplier relationships.
Similarly, Das (2006) argued that the increased
virtual span of control stemming from tight inte-
gration may lead to coordination costs that offset
savings incurred from single-sourced relation-
ships. In addition to the explicit costs of integra-
tion, Sorenson (2003) focused on other costs of
tight integration that were less measurable, such
as the absence of learning that may come from
limiting a firm's contact with its external envi-
ronment. Clearly, management scholars disagree
about the utility of developing tight firm-supplier
relationships, such as those that might arise from
sole sourcing strategies.
Against this backdrop, this paper offers two
core contributions. First, while grounded in a
real life case study of a large consumer products
company, it offers a theoretical explanation of
the perils of single-sourcing relationships. In
doing so, it shows the actual drivers of bound-
ary drift, a term we develop to represent the
change in organizational boundaries that result
from sourcing decisions. Furthermore, we show
how such a phenomenon can lead to unintended,
and potentially detrimental, strategic outcomes.
Second, by following the focal firm as they
design a new sourcing strategy, we offer impor-
tant insights for practicing manage.
The Effect of Relationship Quality on Customer Advocacy: The Mediating Role o...IOSR Journals
Advocacy is a strategic choice for companies responding to the new reality that customers power increased. Potential customers see information from peers or even strangers as less biased and reliable than those of an economic entity. Thus, the information conveyed by a satisfied customer is more believable than that delivered by the business entity. Customer advocacy is very important in the company's efforts to get new customers. Based on social exchange theory, advocacy can be generated from the satisfaction, trust, commitment and loyalty. The purpose of this study was to analyze the influence of satisfaction, trust and commitment to loyalty and its impact on customer advocacy. The hypotheses were tested with structural equation modeling using survey data from 178 customers of a commercial bank in Indonesia. Satisfaction and commitment have direct effect on advocacy, but trust hasn’t. Loyalty mediates the relationship between trust and advocacy, while commitment has the greatest effect on advocacy. Findings hold implications for future research as well as for managerial practice
This document summarizes a journal article that examines the antecedents of relationship commitment between pharmaceutical suppliers and retailers in Bangladesh. The study collected survey data from 200 retailers to test a model of how relationship factors like communication, trust, flexibility, reputation and dependence influence commitment. The results found that all variables were positively correlated and that communication had the strongest influence on the supplier-retailer relationship. The document provides context on relationship marketing and reviews several other studies that have explored relationship commitment and its antecedents in business-to-business exchanges.
THE INFLUENCE OF COLLABORATION IN PROCUREMENT RELATIONSHIPSijmvsc
Supply Chain Management often requires independent organizations to work together to achieve shared
objectives. This collaboration is necessary when coordinated actions benefit the group more than the
uncoordinated efforts of individual firms. Despite the commonly reported benefits that can be gained in
close relationships, recent research has indicated that collaboration attempts between purchasing firms
and their suppliers have not been as widespread as anticipated. Using a survey of procurement
professionals, this research investigates how the purchasing function utilizes collaboration in its supply
chain relationships. Structural equation modeling is used to identify how information sharing, decision
synchronization, incentive alignment, collaborative communication, and trust impact collaboration, as well
as how collaboration impacts performance. Results from 86 survey responses indicate that firms are still
not fully utilizing collaborative relationships
Modelling Trust of Customer and Supplier Interaction_2023 Vol 10 Issue 1.pdfGan Chun Chet
This published paper depicts, A Trust Model (Equation) to ensure that the number of rejects and under control by means of well-known trending techniques - moving averages and exponential smoothing, probability of occurrence and moving (averages) windows. This will be suitable for business consultants to refer to (in the area of supply chain management).
The document summarizes an academic article on collaboration between firms, customers, and suppliers in a supply chain context. The article defines collaboration as coordinated, shared activity between organizations to achieve common goals. It distinguishes collaboration from cooperation and coordination by requiring greater commitment and information sharing. The article also discusses how firms can collaborate with customers by incorporating customer feedback, and with suppliers by sharing information and strategic planning. It concludes that collaborating with both customers and suppliers leads to business benefits and relationships are key to an effective collaboration model.
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The document discusses strategic alliances between buyers and suppliers and factors that contribute to their long-term success. It notes that competition is shifting from firm vs firm to supply chain vs supply chain, requiring more cooperative arrangements. However, most alliance efforts fail to meet expectations. The research aims to identify the key success factors for alliances as reported by both buyers and suppliers, and determine if their perspectives are aligned. It focuses on alliances in the food and health/personal care industries.
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This document summarizes stakeholder theory and its application in the insurance industry. It discusses various models of stakeholder management, including representative theory, agency theory, stewardship theory, and resource dependency theory. Stakeholder theory suggests organizations should be responsible to a range of groups besides owners. The paper also analyzes key attributes of stakeholders - power, legitimacy, and urgency. It categorizes stakeholders based on possessing some combination of these attributes. The document aims to explore stakeholder theory literature to develop a framework for understanding the role and influence of stakeholders in organizations like insurance companies.
Identify and establish, maintain, and enhance, and when necessary, terminate relationships with customers and other stakeholders, at a profit, so that the objectives of all parties involved are met.
As part of my research for the October 26th Interview with expert author Bill McAneny on generational learning and communication, I came across this paper that is fascinating.
Link to on-demand broadcast: http://www.blogtalkradio.com/jon-hansen/2010/10/26/generational-learning-what-is-the-impact-on-the-purchasing-profession
This document discusses a study that examines the relationship between relationship marketing and bank performance in commercial banks in Southwestern Nigeria. The study uses a questionnaire to collect data on direct marketing, internal marketing, relationship quality, relational benefits, and bank performance indicators from employees at branches of commercial banks in three states. Regression analysis is used to analyze the data and determine the impact of the relationship marketing factors on bank performance. The results show some factors have a positive significant relationship with bank performance while others do not.
A study on the chain restaurants dynamic negotiation games of the optimizatio...ijcsit
In the era of meager profit, production costs often become an important factor affecting SMEs’ operating
conditions, and how to effectively reduce production costs has become an issue of in-depth consideration
for the business owners. Especially, the food and beverage (F&B) industry cannot accurately predict the
demand. It many cause demand forecast fall and excess or insufficient inventory pressure. Companies of
the F&B industry may be even unable to meet immediate customer needs. They are faced great challenges
in quick response and inventory pressure. This study carried out the product inventory model analysis of
the most recent year’s sales data of the fresh food materials for chain restaurants in a supply chain region
with raw material suppliers and demanders. Moreover, this study adopted the multi-agent dynamic strategy
game to establish the joint procurement decision model negotiation algorithm for analysis and verification
by simulation cases to achieve the design of dynamic negotiation optimization mechanism for the joint
procurement of food materials. Coupled with supply chain management 3C theory for food material
inventory management, we developed the optimization method for determining the order quantities of the
chain restaurants. For product demand forecast, we applied the commonality model, production and
delivery capacity model, and the model of consumption and replenishment based on market demand
changes in categorization and development. Moreover, with the existence of dependencies between product
demands as the demand forecast basis, we determined the appropriate inventory model accordingly.
Impact of Customer Relationship Marketing on Customer Value Creation and Cust...inventionjournals
A common slang in the American Businesses known as ―Customer is king‖ and undoubtedly, without customers any business is useless. For achieving desired goals and objectives, there must be a long term relationship. In the modern world, there is a huge competition between organizations so the importance of the relationship with customer exceeds. As we know that the competition is just a mouse click away and the market is more demand oriented so that customer is life blood of any organization. A research study was conducted to analyze the relationship of customer relationship marketing with customer value creation and customer loyalty. Questionnaires were used to collect data from customers of different telecom firms and statistically analyzed using SPSS Version 20. Results demonstrated the impact of customer relationship marketing on customer value creation and customer loyalty
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The document describes a theoretical model of the stages involved in the process of ending a business relationship. It identifies six main stages:
1) Assessment stage, where one party considers reasons for ending the relationship and potential costs/benefits.
2) Decision-making stage, where the party decides whether to pursue an exit or voice strategy - either ending the relationship or trying to restore it.
3) Dyadic communication stage, where the party wishing to exit directly or indirectly communicates this intention to the other party using different exit strategies.
4) Disengagement stage, where the interdependence between the parties erodes as activity links, resource ties, and bonds weaken.
5)
This document summarizes a journal article about customer relationship management (CRM). It defines CRM as a comprehensive strategy to acquire, retain, and partner with selective customers to create value for both the company and customer. The article discusses how several factors have contributed to the emergence of CRM practices, including de-intermediation, the growth of the service economy, the total quality movement, systems selling approaches, and changing customer expectations. It proposes a CRM process framework and discusses CRM implementation challenges and its potential to become a distinct marketing discipline.
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Governance of buyer supplier relationship in morocco context qualitative study
1. European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.16, 2013
105
Governance of Buyer Supplier Relationship in Morocco Context:
Qualitative Study
Jamila Jouali1,
Abdelatif Chakor2
1. Jamila JOUALI, PhD student – Faculty of Economic Sciences Souissi Rabat Morocco
2. Professor Authority – Faculty of Economic Sciences Souissi Rabat Morocco
* E-mail of the corresponding author: jamilajouali@hotmail.com
Abstract:
Research excellent, strong relationships, between buyers, and supplier in a highly competitive business,
emerging as a solution to ensure the profitability and sustainability of the organizations.Establish sustainable and
stable relations with different partners appear forward as a solution that can be a potential source of competitive
advantage. However, how these relationships are built, managed in a Moroccan context remains neglected. The
objective of this paper is to explain the mechanisms and processes by which the buyer-seller relationships in
emerging and developing morocco companies.
Key words: buyers-suppliers, social exchange, trust, commitment
I. Introduction:
A collaborative relationship is one in which the other party provides core value to partnership, it increases, more
resources and richer information are required to realize increasing benefit. The collaboration focused on a long
term relationship; it has become one of the main subjects in relationships between Buyers and their suppliers.
Durable relationships are seen as sources of a stronger competitive position. Long-term relationships with
suppliers enable firms to be more efficient in procurement as well as more effective in delivering quality and/or
in reducing transaction costs. This collaboration make more easy a faster access to the new technologies and
allow to acquire a capacity to supply a wide range of goods and services, to reach knowledge beyond the borders
of the company, To share risks and to accomplish the complementary skills (Johansson and Mattson, on 1987;
Powell, on 1987). With the tendency to the homogenization of products and services, the relation established by
the company with each of his customers seems determining for the customer satisfaction and the long-term
development of the relation (Dampérat on 2004. As valuable source which could lead to the competitive
advantage, these relations must be managed and supported. For that purpose, the managers have to distinguish
the various types of relation to adapt their management to the type of exchange who appears at them and to
develop relevant mechanisms which are connected to them. However, in spite of the increasing interest of the
researchers, it seems that the relations buyers’ sellers record an important rate of failures. In the practice, it
seems that the organization, the management, the implementation of these relations or the mobilization of the
elements of support for these relations is complex. The object of this reflection articulates around two questions:
which are the modalities of management of the relations buyer -supplier in the Moroccan context and which the
determining factors of their success. To answer these questions, this document is structured in three sections: At
first, it is a question of presenting an abstract frame allowing clarifying the foundations of the modalities of
management of the relations exchanges, and to report the limits of the contractual governance. Then, we analyze
factors assuring their sustainability.
1. Relational approach: towards new theoretical perspectives
The researchers in marketing emphasized for a long time the complex, turbulent and characteristic of the
environment. This tendency confirms and the new complexity rests on the emergence of new practices in
marketing, this change introduces new components in the governance system of the relations of exchanges. The
dominant theoretical current established on a contractual conception, does not however allow understanding this
evolution The relational approach is the most privileged to make more relevant the abstract frame and answer
better the questions of the research. In this perspective, the limits of the readings contractual lists of the customer
relationships supplier will be presented.
1.1 The limits of the contractual approaches in buyer supplier relationships
The contractual theories, such as, the property theory, the agency theory or the transaction costs, theory of share
a common conception of buyer supplier, relationships the researchers joining of this approach apprehend the
relations as the relations discreet and economic exchanges the efficiency of which rests on the decrease of their
costs. According to Williamson (1985), the specificity of assets constitutes the essential attribute of the deal and
plays the central role in the development of a relation customer-supplier, Indeed the more the degree of
specificity of assets appropriate for the transaction is weak, the more we extend out towards situations of
2. European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.16, 2013
106
instability or lesser sustainability in the time. The best economic organization of the transactions is assured in
that case by the market. Within the transactional approach, the theory of the agency and the theory of contracts
offer two complementary abstract frames to the TCT (Charreaux, on 1987).The theorists of the agency
investigated about the mechanisms of incentive surveillance and penalty of the partners in contexts difference of
interests and asymmetry of information. Of their esteemed, the specialists of contracts propose the most efficient
contractual arrangements considering the conditions of the exchange. In this approach, the success of the relation
bases on transactional profits where every part tries to maximize its earnings and to minimize its losses in
depends on the interest of the other one. Indeed in spite of the importance of the not contractual parameters, this
approach indeed neglects the importance of the no contractual parameters which constitute determining factors
in the functioning and the sustainability of the relations namely: the trust, Commitment, the apprenticeship, the
information, and competency acquisition …
1.2 Theory of relationship exchange and Its implication in the explanation of the effectiveness of relation
buyer supplier:
Buyer-supplier relationships are processes of interaction and exchange between a client organization (buyer or
consumer) and a supplier organization (seller or producer) (Guibert, 1996).These relationships take different
forms more or less cooperative (Webster, 1992): Unique transactions discrete, repeated transactions, long-term
relationships and partnerships. The relational exchanges form the basis for another approach of research in
relationship marketing and the basic concept of this approach is the partnerships, it focused on the exploration of
variables to model the relationship between buyer and seller. (Heide and John 1992) it explores the importance
of non-contractual norms in structuring successful relationships between companies. The relational exchange, as
opposed to the traditional exchange, takes explicitly into account the historical and social context in which
inserts the transactions. Contractual objectives’ resulting in common interest between the parties,(Dwyer, Schurr
& Oh, 1987). In such a system, the member’s has self-control on the basis of common values and preoccupation
in favor of a long-term benefit (Heide, 1994) .The individual utility function are combined through a system of
bilateral governance that adopts an action unit (Bonoma, 1976). Wilson (1995) suggested a model for research in
the buyer-seller relationship under its organizational dimension integrating relational variables (commitment,
trust, cooperation, adaptation, interdependence, bonds, etc.) with process variables (partner selection and
interpersonal skills ...). This current research is to some extent similar to the model developed by IMP
"International Marketing and Purchasing" group, the difference being IMP focuses on the conceptual model or
the perspective of relational exchange is more exploratory and empirical in its approach. Partnership in business
markets is the central concept of this research and as such it explores the different variables to be measured in
the context of business relations, According to (Dyer et al .1998), it refers to the specific assets created through
relationships based on trust, norms, identification can be evaluated by the degree of mutual respect, the close
interaction between actors. These assets are included in the relations and the different bonds between actors
(Hakansson and Snehota 1989) Indeed this concept is not new in the strategic literature found although the
absence of empirical studies, this relational perspective acts as an important governance mechanism in inter-
organizational relationships.
1.3 Justification of cooperative behavior between partner buyer supplier:
The approach of the power and dependence is based on the reflections of the political scientist (Dahl .1957), the
work of Emerson (1962) on dependence and the proposals (Pfeffer and Salancik 1978). Dependence is described
as relative and asymmetric, and it produces a switch cost and an imbalance of power (Ganesan, 1994). As such,
it reflects a measurement of the value of the resources provided for which few alternatives are available
(Palmatier et al., 2006). Researchers joining in this approach apprehend relational exchange in the mutual
dependence of their parties; dependence is proportional inversely to their power. Numerous marketing
researchers have also included power as an important dimension in customer supplier relationship (see Dwyer et
al, 1987). Dependence refers to parts need to maintain the relationship intended for achieve desired goals
(Frazier, 1983). The Actors in this approach examine, in particular, the coercive influence strategies (menace of
legal argument and the promise) or non-coercive (the request, recommendation and information exchange) that
individuals and / or organizations develop to control their environment, reduce uncertainty and maintain their
independence. In this approach, the performance of customer-supplier relationship is determined by the
effectiveness of influence strategies associated by their condition of dependency partners. Dependence is
increased when the outcomes obtained are significant and very valuable, when the value of the outcomes
exceeds that of the outcomes available from the best alternative option, and when there are few
alternatives (Heide and John, 1988; Ganesan, 1994). Based on the theory of the social exchange (Emerson, on
1962; Thibaut and Kelley, on 1959) and on the reflections of the political analyst Dahl (1957), the theory of the
dependence and the resources considers the governance inter-firm as a strategic responds in the conditions of
uncertainty and of dependence (Pfeffer and Salancik, on 1978). The power is defined in the sense of Dahl (1957,
p202) «as the capacity of A to obtain that a person B makes something that she would not have otherwise made ".
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The dependence determines the level of power of each of the parties in the relation. Pfeffer and Salancik (1978)
determine three critical factors which allow estimating the dependence of an organization in front of the other
groups:
- The importance of the resource for the dependent organization;
- The exclusive character or not of a group of interest which can supply the resource;
- The extent of the power of a group of interest on the resource.
Power and dependence are conversely correlated: «when the net exchange between two organizations is
asymmetric, a net power arises from the least dependent organization on the other one. This power can be used
to try to influence or to force the most dependent organization « (Pfeffer and Salancik, 1978, p53).
The impact of the power and the dependence in a relation, whether is to inter - organizational or interpersonal is
widely studied by the researchers in management, in particular in marketing (Frazier, on 1983; Kale, on 1986;
Heide, on 1994). Developed originally in a context of interpersonal relations (Emerson, on 1962), the concept of
power was spread to the relations inter firms (Aldrich, on 1979; Pfeffer and Salancik, on 1978). This dependence
between firms arises from their incapacity to be self-sufficient as regards their critical resources. The dependence
can be applied or in a global way, with regard to the environment into which the firm is inserted, or of a way
more targeted with regard to definite partners. An uncertainty for the company ensues then from its incapacity to
control its flows of resources. The main proposition of the theory of the resources and the dependence lives in
the fact that firms try to reduce the uncertainty and to manage their dependence by structuring deliberately their
relations by creating formal links or semi - formal with the other firms.
The theory of the power and the dependence allows identifying the dependence and the uncertainty as being
histories of the establishment of the relations inter firms. The researchers in marketing used the theory of the
resources and the dependence jointly to the other referents theoretical as paradigm of the relational exchange or
the works on the trust. Empirical studies so showed that the institution of emotional links increase the
dependence of the other one (Heide and John, on 1990). This field of research emphasizes the interest of the
actors to build relational exchanges. From their part, Hermel L. and al. (1996) assert that the phenomenon of
interdependence (supplier-customer) is understandable in particular by the search for stability and for reduction
of uncertainty for the customer, and by the will to constitute networks of relations for the seller. In the same line
of reflection, the other authors, as Goujet R, Bansard D and Room R, 1992, support that the strong
interdependence of organizations between them would contribute to favor the stability and the strengthening of
the relations buyer supplier.
1.4 The processes the development of the relation seller buyer
The process partner in the development of the relations in the B2B is often complicated. To make a success,
companies have to take into account: the bonds of adaptation, cooperation and the social bond. The literature (L.
Bagdoniene, R. 2009 and D Zilione. Gefen on 2004) showed that the adaptation within the framework of
partnership is compulsory in more close relations. These adaptations can also involve considerable investments
for the partners and these investments are often specific in the relation and are not transferable. In a long-term
temporal perspective, the adaptation is considered as a practical concept indispensable to the continuity of the
established relation. The Development of the process of adaptation translated indeed by the establishment of
certain reliable climate in the relation (Goujet R. and al ., on 1992) and depends Particularly on the importance
of the investments committed(hired) by the partners in the relation (Metcalf Lynn E. and al ., on 1990).
The more these last ones commit resources (human and financial) important in the relation, the more they are
motivated to adapt themselves to their mutual expectations and to the constraints of the evolution of the
cooperation in the time. In the same register, Håkansson (1975) emphasizes that the adaptations require specific
investments and pull long-lasting deals. They engender, consequently, a commitment mattering on behalf of the
partners to insure the continuity of the established relation. The adaptations can be introduced by the one or both
partner companies (Hallen L., Johanson J. and Seyed-Mohamed N., on 1991). The results of an empirical
research show however that the adaptations are realized at the same time one-sidedly because of the asymmetry
of power and in a mutual way, what translates the commitment and the trust during the social exchange "
(Machat K., on 2003). Moller and Wilson (1988) notes, besides, that the one or both partners can even adapt
their attitudes, their values and their objectives to favor the process of exchange in a long-lasting optics. At the
conclusion of an empirical study, Metcalf L E. and al ., (1990) concluded correlations between the various
variables of the model. They so deducted that the exchanges (social and of information) contribute strongly to
the creation of a cooperative mode which motivates the partners to realize the adaptations (formal and informal)
necessary for the continuity and for the stability of the relation. It results while the exchanges (social and of
information), the cooperation and the adaptations are determining factors in the durability of the relation. Among
the strong reasons for building partnerships, is the valuable creation for the implied companies. This last one can
be defined as the difference between the costs and the profits engendered by this partnership. Biggemann and
Buttle (2004) distinguish the personal, financial value, the knowledge and finally the strategic value. The
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personal value is centered on the feelings and the feelings that could be considered as an emotional value (the
emotional satisfaction). They have a positive effect on the retention of the relations. The financial value could be
connected with the satisfaction; it is indicated by the greater efficiency, an increase of market share. The
strategic value of relations allows a better planning, A reduction of the risks, it makes possible a better use of
assets (active persons), and it supplies a foundation on which the partnership can be built. The competitiveness is
the result profit of the relation in which the company is committed (Biggemann and Buttle, on 2004).
1.5 Trust and commitment history of development of relations of long-term exchanges
Based on the literature of social psychology and marketing, trust is generally considered an essential ingredient
for the development of exchange relationships (Berry, 1995), trust becomes the object of increasing attention
from researchers in industrial marketing. After the famous paper (Morgan and Hunt 1994) uncovering the role of
trust as a mediating variable in relational process, other authors (Ganesan, 1994; Kumar et al, 1996; Geyskens et
al, 1996; Doney and Cannon, 1997; Zaheer et al, 1998) considering trust as a belief showed its multi dimensional
character. More recently, other research approaches have been tested and are illustrated with intentions to
separate perceptions of trust and reliability of its manifestations (Mayer et al, 1995, and Fenneteau Guibert, 1997,
Smith and Barclay 1997). Thus, trust is a central determinant useful for developing a lasting relationship,
especially in the initial phase of development of the relationship. At each step of forming the relationship, trust
and its multiple facets, plays a key role in pursuing the latter. It manifests itself in benevolence, competence,
honesty, (Geyskens et al 1998, Swan et al 1999), past experience with a partner, The existence of a series of
positive experiences and encounters that enhance trust and partner commitment, competence, willingness to
reduce uncertainty, opportunism, the duration of the relationship, reputation, compatibility of objectives, cultural
similarity, coordination ... The commitment is a psychological variable influencing the relationship between
customer and supplier and has been the most studied industrial marketing, particularly to differentiate customers
"who are or who stay" from those "who are leaving”. The review proposed definitions highlights the
multidimensional nature of commitment. This concept thus has three dimensions (Gundlach et al., 1995):
− an attitudinal dimension (or emotional) which corresponds to an intention to develop and maintain the
relationship;
− an instrumental dimension (or behavioral) corresponding to a share of a portion of inter-organizational
relationship creating a special interest for her,
− and one time dimension (or continuity) meaning that the commitment is only meaningful in the long term
based on the conceptualization of long-term direction of Ganesan (1994), suggested by the author as
equivalent to the desire of the parties to develop and maintain a lasting relationship.
2. Methodology
The study of methods for managing customer relationships in the context of strategic repositioning services that
have to our knowledge not been studied in the Moroccan context, it seemed appropriate to explore by conducting
an empirical analysis qualitative (Yin, 1989). Therefore, the study is based on in-depth case study of a company
specializing in power and automation technologies, installed in Morocco. We conducted a case study due to
extended access has been given to us. Many authors have noted the need for such studies to better understand the
new forms of cooperative organization (Oliver and Ebers 1998, Das and Teng 1998). The qualitative
methodology aims to describe the essential properties of our field, especially in terms of process, although the
content aspect is not also absent. Yin explains that a case study treats with a different situation in which there are
more variables generating interest than a data. This methodology takes into account multiple sources in our case
(semi directive interviews, documentary analysis and observation ...). The goal is also to understand the issue of
modality of customer supplier relationship, the adoption of the case study is justified on the following basis. And
finally because of the lack of empirical studies found in this area, particularly in the Moroccan context. Data
collection took place in three ways: a study of internal documents (dashboards monitoring of suppliers, general
conditions of purchase and sale, assessment interviews of buyers, purchasing process ... project. .) and external
(press release, financial statements ...) semi-structured and fully transcribed from company officials meetings,
and three of its customers and suppliers. In reality, the objectives of our research support the use of a semi-
structured interview. The main advantage of using this type of interview in our study is the possibility to deepen
the managers on some pre-defined topics, while respecting his will and Open of expression. This extension can
help us to better understand the processes, experiences and practices more or less regular basis are related to their
professional activity. In our opinion, the semi-structured interview will allow us to structure a first step, the way
of our conversation, avoiding biases related to subjectivity and a second time; it will allow us to limit the
influence of value judgments on the information gathered. The interview guide can address the same issues
previously identified by the fact that all respondents in this case are faced with situations and common processes.
The data analysis was inspired by the approach proposed by Bardin L. (2001). We focused approach type
"content analysis" as a treatment modality of the data. It is a method that seeks to realize what was said by the
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interviewees as objectively as possible and the most reliable (Andreani JC et al., 2005). It involves transcribing
qualitative data to encode the information collected and analyzed (Andreani JC et al, 2005. L. Bardin, 2001).
3. Case study
The company OMEGA case illustrates a company facing significant changes in its environment. His reaction
was to change its business model by systematically involving services to the sale of its industrial products. This
repositioning strategic induced a new structure of its revenues 53% now comes from the sale of value-added
services on long cycles. Taking as starting point the change in business strategy, our study does not detail the
specific terms of the modes of management buyer supplier relationships. It does however highlight the
importance of the convergence of interests between long-term partners in the successful repositioning of its
activities on the sale of services. Service providers must jointly produce their offerings with their customers at
the precise moment of their use (Lovelock et al. 2004). The success of this co-production is based on a very
strong supplier-customer interaction (Sarathy, 1994) and, therefore, on all devices facilitating its intensity and
quality. As part of the growth strategy of the group, the service activity was targeted as a source of growth and a
major growth opportunity for the company. A key differentiation from competitors. Three business areas have
been identified for the service: the service life cycle, the full service, consulting and engineering. The focus of
OMEG:
− The Service is a major growth opportunity for OMEGA with the target to increase service revenues by more
than 75% while doubling EBIT by 2012 compared to 2006. Service is less cyclical and a key differentiator
for OMEGA
− The service strategy presents a true next stage of excellence for OMEGA’s service activities. It focuses on
developing the full potential OMEGAs core, building on services that are related to OMEGA’s product and
system businesses.
− Three focus areas for service have been identified: life cycle services, Full Service and consulting.
− OMEGA’s diverse businesses require a range of tailored business models. Many businesses have an
opportunity to move towards models with increased service focus resulting in higher service growth and
margins.
− The design of the service organization is flexible to accommodate different business models. Service
business is kept close to BUs to derive the benefit of integrated business models. At local level, countries
should adopt a country level service organization, whilst a global service team will drive the group level
coordination.
− All the divisions and BU’s have developed specific initiatives and business plans in support of strategy
targets. About 70 key initiatives covering two thirds of the growth have been identified and will be tracked
in the Strategy Monitoring Tool.
Formal organization of the relationship between the collaborators:
The company has as the primary goal to stay a leader in its market and to develop a strategy whose foundations
are based on the loyalty and respect of its commitments to its customers. This strategy aims in particular to
promote the establishment of reliable and long-term relationships with large corporate customers in their
respective fields. Different types of contracts can be considered in the context of a customer supplier relationship,
they are chosen based on specific objectives and contracting party. These multiple contracts can be envisaged
into three broad categories according to the types of relationships: spot contracts, long-term contract, cooperation
or partnership. However, among the multitude of existing contracts, it is essential to keep in mind that there is no
"standard contract." Depending on individual needs, the parties regulate their contracts and legal arrangements
with a specialized lawyer. In particular, during the drafting of any contract, the company ensure the insertion of
clauses as complete and accurate as possible, on fundamental issues such as those related to business risk
(including the risk of poaching customers), technical risk and / or technology (such as the looting of know-how)
or financial risk (eg price changes due to changes in exchange rates). The company also plan provisions relating
to the termination or completion of the contract and in such case, what happens to the operations involved in the
relationship. Finally, it ensures compliance in all possible respect for the balance of interests of all parties. The
example of SLA. SLA Service Level Agreement is the formalization of a negotiated agreement between two
parties. This is a contract between customers and suppliers. He writes down the expectations of the parties on the
content of the services, their implementing rules, the responsibilities of the parties, guarantees, that is to say the
level of service. For example, the SLA may specify the levels of availability, performance, operation or other
attributes of the service, such as billing or penalties (financial or other)
Establish an approach more collaborative of the relation Buyer / supplier
Confronted with the current context, departments Purchases are in the obligation to use the other levers to update
still unexploited fields of productivity. The traditional levers, as the stake in competition or the commercial
negotiation are not any more enough. Purchases henceforth have to adopt a more global approach of the notion
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of performance. By leading in particular a deep reflection on the modes of management of the relations customer
/ supplier. The research for a collaborative approach has to bring to light the «zones of contact "Where the public
interests may converge better. The objective is to build a collaborative playground to maximize the produced
added value. In our case, both companies were equipped with a reference table shared on the way they work to
give meaning and of the coherence to the shares to be committed.
The full of the company OMEGA : To meet its commitments and improve the trust of his partners, the
company set up a full house service process, which leaned on a reference table proposing usual and reproducible
methods. The approach, generic, was not only built on common processes, but also on audits of site, the sharing
of the knowledge, the management of the customer satisfaction and all the stakeholders. It is a question of
proposing to the customer a solution by an offer adapted by products and by services integrating its expectations
and taking into account of situational contexts, of the use of these goods and services. Further to the full house
process service, the company offers a feasibility study to the professionals. This approach guarantees an optimal
result, and allows to improve the partnership of a way has limits the risk for both parties. The range of services
leaned on a model of management of life cycle. This offer aimed at assisting the customers throughout the life
expectancy of their industrial investments, the sustainability and the optimization of the performances of the
installed products. With teams of on-site intervention all over the world. The nearness of the company presents a
real advantage, in particular because the relation between both partners is established on goods and services
requiring a successful after-sales service and a very big reactivity on behalf of the company OMEGA. However,
we noticed that there is in the strategic prospect, a change of rules of the game because of the new requirements
of the customer. But the integration of the customer vision in the strategic process of the company and the
change of the technological orientation in a customer orientation constituted a value-creating source for the
company.
To be able to classify the buyer’s desires and to execute the methods and systems needed to get better the
business values, enterprise has developed a proven process in which a collaborative agreement will be developed
together. During the process, a core team of OMEGA ad your own resources follows a structured methodology
to collect and analyze information. This is a stage-gate process that balances investments in time and resources
against the data needed to make sound business decisions. At the conclusion of each stage, there is a review
where we together discuss progress and reach agreement on how to proceed.
Screening: In this step, scope and boundaries, desired outcomes, resource requirements, executive sponsorship,
and schedule are evaluated and documented to guide the team through the partnership. A common business fit
will initiate the feasibility study phase.Feasibility Study: Functional requirements are developed, benchmarking
and gap analysis are completed, current and future states are identified, expected benefits (OMEGA value
proposition) are identified and a risk analysis is conducted. A letter of intent is signed before proceeding to
partnership development.Partnership Development: The Maintenance Management Master Plan (MMMP) is
developed to set the strategy for maintenance and reliability on site. Detailed analysis is performed for finance,
human resources, legal, technical issues, and health and safety. Key Performance Indicators are defined and the
mobilization and transition plans are created. A Maintenance Alliance Agreement is signed to initiate
mobilization. Mobilization Systems and networks are installed, the new maintenance organization is announced,
and implementation plans are finalized for human resources, facilities, supply management and accounting. A
communication plan is developed to facilitate change management and identify issues early in the program.
Execution: with the introduction of new processes. The alliance management process governs the relationship
and continuous improvement programs are introduced to increase performance at the site.
4. Managerial implication
Since about fifteen years the prevailing view of companies’ customers concerns the respect for the relational
standards as first condition of success of their relations with their suppliers. By placing the relation customer /
supplier on the mode of the collaboration, the actors are equipped with additional means to improve their
performance. The effective success of this collaboration crosses necessarily by a significant stage in mode joint
project or the company weave the various links to satisfy the needs of his partner. It is the only way of
overcoming the natural resistances in any construction site of this scale. In this study, we tried to clarify the
methods of management of customer relationships suppliers in the industrial context from the approaches the
most quoted in the literature (the approach, by the power and the dependence, the social exchange and the
resources and the skills), The solid relations between the parties are also considered as a potential source of
competitive advantage by these companies. Create them and maintain them in the long term with the customer’s
fact henceforth left the marketing policies of these companies. On the other hand, the success of these relations
depends on several variables. The obtained preliminary results show that the factors which affecting the
sustainability of these relations are: the obligation of the partners in relation, the commitment, the loyalty, the
trust, the satisfaction. They are mostly considered by the actors implied as variables contributing to the success.
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The conclusions stemming from the empirical study indicate that the relations developed within the framework
of our case study evolve more towards long-lasting relations and of cooperation. This established fact can be
understandable by the consciousness of the companies of the increasing intensity of the requirements of their
professional clients in a sector such the technological energy products. This would particularly be smelt in
quality of the relation through the investments realized by the company. The agreements concluded between the
parts are often implicit and base themselves on contracts of collaboration which include the conditions necessary
for the implementation of the collaboration between dyad. The aforementioned contracts turn out complicated to
conceive and informal arrangements are often of vigor during their execution.
The risk of opportunism to which the incomplete contracts of cooperation by definition expose turns out not to
be the risk which frightens most the partner contracting parties. On the practical plan, we think that this research
will allow the managers to highlight very relevant factor in the commitment and the conduct of the relations of
cooperation with their customers. More particularly, these companies will can better: Develop an expertise and a
particular know-how which will help them to adapt itself, in a more corresponding way, to the requirements and
the expectations of their customers, to favor the establishment of long-lasting relations and cooperation.
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EBSCO, Index Copernicus, Ulrich's Periodicals Directory, JournalTOCS, PKP Open
Archives Harvester, Bielefeld Academic Search Engine, Elektronische
Zeitschriftenbibliothek EZB, Open J-Gate, OCLC WorldCat, Universe Digtial
Library , NewJour, Google Scholar