Smart heuristics in business relationships: toward a typology

Abstract

PurposeThe purpose of this paper is to develop a typology of heuristics in business relationships. We distinguish between four categories: (1) general heuristics used in the context of a business relationship but that may also (and are often) used in other contexts; (2) relational context heuristics that are typically used in a relational context; (3) relational information heuristics that rely on relational information and (4) genuine relational heuristics that use relational information and are applied in relational contexts.Design/methodology/approachWe draw on existing literature on heuristics and business relationships to inform our conceptual paper.FindingsWe apply this typology and discuss specific heuristics that fall under the different categories of our typology. These include word-of-mouth, tit-for-tat, imitation, friendliness, recognition and trust.Research limitations/implicationsWe contribute to the heuristics literature by providing a novel typology of heuristics in business relationships. Emphasizing the interdependence between heuristics and business relationships, we identify genuine relational heuristics that capture the bidirectional relationships between business relationships and heuristics. Second, we contribute to the business relationships literature by providing a conceptual framework for understanding the types of heuristics managers use in business relationships and by discussing examples of specific heuristics and how they are applied in relational contexts.Practical implicationsWe contribute to practice by providing a simple framework for making sense out of the “universe” of heuristics for business relationships.Originality/valueOur paper provides a novel typology for understanding heuristics in business relationships.