Longitudinal Analysis of Digital Bonding in Buyer–Seller Relationships

Abstract

ABSTRACT Purpose: Advances in information technology (IT) have made communication and transactions in business markets more effective than ever before. In spite of the increased popularity of studying buyer–seller relationships, IT influences on business relationships remain an underresearched area. The purpose of the current research is to illustrate how a digital bond emerges in a relationship in terms of the digital bonding process and its influence on other bonds in buyer–seller relationships. Methodology: A literature review, conceptual analysis, and in-depth case studies are used. Findings: The digital bond is presented as a special type of bond that is formed in an IT-mediated coordination effort and from the interaction between companies. An antecedent of the formation of a digital bond is an existing IT system that is successfully shared in a relationship, or relationship-specific IT acquired for business activities. Research Implications: Digital bonds bind business parties through interlocking business-specific activities affecting other bonds and the business relationship. Digital bonds were also found to be drivers of the other bonds affecting structural bond strength and the business relationship. Practical Implications: Managers should engage in digital bonding behavior with selected key suppliers and customers to increase the efficiency of their firms’ in day to day processes. Illustration of successful digital bonding will be provided. Contribution of the Paper: The concept of the digital bond is introduced as a subdimension of the structural bonds (technical, time, knowledge, and economic bonds). The digital bonding process is described and its influence on the business relationship and other bonds depicted.