Relationship Quality—Relationship Value and Power Balance in Business Relationships: Descriptives and Propositions

Abstract

Purpose: The objective of this study is to develop understanding of the interplay between the perceptions of power balance, relationship value, and relationship quality between retail distributors and their suppliers. Methodology: The authors applied a phenomenological approach in both qualitative and quantitative data collections and analyses. Key informants in 27 of the dominant retail distributors within 5 Norwegian industries and 50 of their most important suppliers were interviewed. Findings: The power balance seems to favor the retail distributors. Retail distributors and suppliers tell of somewhat different characteristics pertaining to “best” and “worst” relationships relating to economic-, capability-, and integration-based values as perceived between retail distributors and their suppliers. Research limitations/implications: The empirical findings indicate the complexity in assessing relationship quality and show a rich basis for further research, thereby contributing to knowledge and insights in characterizing relationship quality when power is asymmetrically distributed between distributors and their suppliers. However, personal interviews may reveal answers at rational, cognitive, and even emotional levels, thus complicating subjective analysis. Practical implications: The results of the study are important for both researchers and practitioners on both sides of retail distributor–supplier relationships. Originality/value: This study advances the work on what characterizes relationship quality in asymmetric power business relationships.