Abstract
Relationship marketing is essential for success in business. The need to understand better the differences in the strategies buyers and suppliers follow is what has motivated this study. We drew on emerging perspectives on inter-firm governance and networks to develop a theoretical framework to understand the success of long-term relationships. We tested the framework using data from 67 merchant distributors (buyers) and 174 suppliers of theirs in the Dutch potted plant and flower industry. While the most successful distributors tend to take the "hard", tangible strategy using transaction specific investments and fostering joint action, the successful suppliers take the "soft", social approach by emphasizing trust and the norm of flexibility in the relationship.
Highlights
Relationship marketing is essential for business success
Scholars have suggested that to understand fully the nature of a dyadic relationship, greater attention must be paid to the network context
We found several positive impacts of the information obtained from the business network on the dimensions of a long-term buyer-supplier relationship, such as transaction specific investments, trust and the norm of flexibility
Summary
Relationship marketing is essential for business success. Issues on relationship marketing have received considerable attention in network literature. A growing body of research addresses different aspects of the firms’ relationships with exchange partners from a variety of theoretical perspectives (OMTA et al, 2001). The predominant focus in much of the existing research has been on individual dyadic relationships between firms. There is a clear need to move beyond the dyadic relationship and explore the competitive advantages of being embedded in a business network. In this respect, it becomes essential to understand whether the strategy differs in the sales relationship and purchasing relationship of companies
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