Abstract
This paper explores the dynamic development of inter-organisational relationships between provider and buyer over time. We specifically study how uncertainty drives relationship strength and contributes to intended future relationship strength in engineering service relationships due to the suitability of this setting for our purpose. From the literature, we derive a conceptual framework of three uncertainty types (environmental, relational and organisational uncertainty), which we investigate over the contract life cycle. We present four case studies of 10–17 semi-structured interviews each and secondary data. We show how pre-contract environmental uncertainty drives relationship strength depending on the pre-contract experienced organisational uncertainty. We further show how relationship strength affect early contract experienced organisational uncertainty. Depending on the development of this uncertainty during contract operation, the intended relationship strength is increased or decreased. We derive theoretical propositions regarding these three connections. This study contributes to the existing literature by demonstrating the dynamic effects of different uncertainty types and their respective interactions with relationship strength over time. We move beyond existing theory towards a nuanced understanding of the dynamic interaction between uncertainty and relationship strength over time.
Highlights
Uncertainty, defined as a lack of understanding, is a central factor in the development of inter-organisational relationships (Kreye, 2018; Yan & Dooley, 2013)
We derive a conceptual framework of three uncertainty types, which we investigate over the contract life cycle
More spe cifically, our study suggests that it is the nature of the operations within the relationship in terms of the similarity of prior activities to the con tracted activities that drives the experienced level of relational uncertainty
Summary
Uncertainty, defined as a lack of understanding, is a central factor in the development of inter-organisational relationships (Kreye, 2018; Yan & Dooley, 2013). Uncertainty becomes an increasingly important issue for industry as demonstrated by events, such as the Coronavirus pandemic or the container ship Ever Given blocking the Suez Canal and disrupting international cargo transport Events such as these shape the business environment and in turn affect how companies operate within their relationships with customers and suppliers (Kreye, 2018; Yan & Dooley, 2013). Existing theory highlights the role of un certainty for creating inter-organisational relationships (Liu, Wei, Ke, Wei, & Hua, 2016) and as a consequence of these relationships (Park, Kim, & Ryu, 2020; Yan & Dooley, 2013) respectively The latter is often described in terms of the potential to undermine intentions for rela tionship continuation (Williamson, 2008), providing further evidence that uncertainty affects the development of inter-organisational re lationships over time. Many researchers call for more detailed investigations of re lationships within their time-based context to capture the role of prior experience, commitment and trust in this context (Alinaghian, Kim, & Srai, 2020; Panda, Srivastava, & Pandey, 2020; Sting, Stevens, & Tar akci, 2019)
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