Business relationship process management as company dynamic capability improving relationship portfolio

Abstract

Recent studies on industrial marketing and business networks suggest that business relationships are changeable phenomena and many of them loose their rent-generating mechanism in time, especially when opportunity costs are taken into consideration. Unfortunately, our knowledge about management tools oriented at handling relationship dynamics is relatively weak. Trying to fill this gap, this study proposes a concept of Business Relationship Process Management (BRPM) and grounds it in dynamic capability view of company's strategy. BRPM comprises actions that help a company to restructure its relationship portfolio and improve relationships with deficient partners. This study contributes also to management knowledge by providing an empirical test for the validity of BRPM on the basis of an online survey conducted with 307 Polish companies that handle relationships in supply area. It supports the hypothesis that BRPM leverages the relationship portfolio performance and it complements other relationship-related strategies, like building personal business ties and relationship flexibility. The environmental uncertainty is discussed and tested as a factor moderating the influence of BRPM on relationship portfolio performance.