Development Of Business Relationships Research Articles

Third actor introductions to interaction episodes aiming at fast-forwarding new firm relationship development

PurposeThis paper aims to address third actor introductions to interaction episodes aiming at fast-forwarding the continuous development of business relationships of new firms.Design/methodology/approachThe study is qualitative, collecting data from 30 interviews from 28 informants associated with creation of new ventures and business network development in the context of a novel type of third actor called venture builder. Venture builders are privately owned organizations devoted to new firm creation in a factory-like mode, collaborating with individual entrepreneurs.FindingsThe findings suggest that interaction episodes, central to the development of new relationships, may be triggered by introductions managed by third actors using different types of involvement depending on the location and focus of the potential relationship. A framework is presented including four types of introductions to interaction episodes, aiming at saving time by removing the perceived distance between new firms and their counterparts in the initiation of business relationships. The framework describes four types of introductions of interaction episodes: Managed, Advised, Facilitated and Monitored.Originality/valueTriggers and introductions of interaction episodes for new firms has previously been sparsely addressed. This paper presents how third actor involvement, by the introductions of interaction episodes with internal and external counterparts is managed with an aim of fast-forwarding relationship development.

Local value creation for developing business relationships: An SME case study in the pasta industry

Drawing on the market-as-network approach from the Industrial Marketing and Purchasing (IMP) Group, this paper explores how small and medium-sized companies can leverage their network to become network orchestrators, co-creating value locally and developing business relationships. Specifically, the paper addresses the following research questions: RQ1) How can SMEs act as network orchestrators for local value co-creation? RQ2) How can SMEs leverage local value to develop business relationships? Methodologically, the industrial network theory is applied to an exploratory and single case study of an Italian food company in the pasta sector, Fabianelli. This enterprise boasts a historical tradition firmly linked to its origins and a solid attachment to the Tuscany region where it is located. The paper identifies specific actors, resources, and activities defining a company’s network orchestrator role. Further, it analyzes the value co-created locally to discuss four strategies used by Fabianelli to develop relationships with national and international actors.

On the starting situation for business relationship initiation in turbulent business networks

PurposeThe purpose of this study is to develop a model of a starting situation for relationship initiation in turbulent business networks.Design/methodology/approachThe study is designed as an extreme single case study that takes its point of departure in a company’s bankruptcy in the Swedish automotive industry.FindingsThis study illustrates how a new business relationship can start from a resource combination previously controlled by one actor (i.e. a single company) in a turbulent business network, thereby bringing nuances to the common understanding that new relationships start in stable business networks where resource combinations are developed between actors in established business relationships.Originality/valuePrevious studies have stated that the development of a mutual orientation between actors leads to the formation of a business relationship. The business relationship then leads to resource adaptations between the two companies. The developed model, however, illustrates that this pattern can be reversed in situations of turbulence. Hence, previously adapted resources might lead to the formations of a business relationship. Based on this observation, the authors argue that there are reasons to question if previous models of business relationship initiation and development in business networks are adequately equipped for analysis in turbulent business networks.

Development of business-to-business relationships in turbulent environments

This research examines business relationship structure, formation, development, and maintenance where the socio-political and economic environment for both exchange partners is highly turbulent. Based on multiple case-study data from 33 firms located in the Middle East, we find that turbulent environments create perceptions of uncertainty, dependence, vulnerability, urgency, and crises, leading to the formation of interimistic relationships different from those found within non-turbulent environments. These relationships are characterised by a constant search for new partners and the maintenance of a diverse portfolio of relationships. Relationships typically develop rapidly comprising three phases where a unique dynamic and structure is apparent. Dominant relationship characteristics include competence-based trust alongside control, high levels of instantaneous commitment, informal and rapid adaptation, frequent informal communication, and significant and ongoing efforts at strengthening social bonds with existing and potential partners.

Policies and Intervention Approaches Challenges in Promoting Agricultural Innovation: The Case of The Cashew Sector in Benin

Purpose: Innovations are necessary for the development of agricultural sector. However, there are questions about their appropriation and sustainability. This article analyzes policies and intervention approaches challenges in promoting local innovation in the cashew sector in Benin.
 Methodology: This study combines a literature review on policy and intervention approaches and qualitative information from nine cashew project managers to collect data.
 Finding: The results reveal the following three main intervention approaches: (i) Capacity-building approaches, which include training, experience sharing, experimentation and demonstration, (ii) approaches facilitating access to finance and organizational support, and (iii) Business relationship development approaches that focus on relationship building and training. The choice of approaches is generally based on the priorities given to the challenges related to the development of the sector
 Unique Contributions to Theory, Policy and Practice: However, investment and consideration of weaknesses in the implementation of intervention approaches would contribute to the development of innovation and the sustainability of innovation support services in the agricultural sector.

Evolution of trust in hawala networks – business relationships analysis from inception to maturity

PurposeTrust within hawala networks (HN) (a type of deeply embedded informal value transfer network) has been associated with minimal bureaucracy, relationship versatility and low operational costs. In the absence of formal governance structures, HN business relationships largely depend on trust as a control mechanism that brings operational efficiency and transactional effectiveness. However, a basic and a static view of HN business trust has been reported. This paper aims to track the progress and development of trust within HN. More specifically, this paper charts HN relationship trust transformation from inception to maturity. Social exchange theory (SET) and Dwyer et al. (1987) topology of formal business relationship development were used as conceptual frameworks to study development of trust within HN.Design/methodology/approachTwenty-five in-depth interviews were conducted with HN members in the South Asia region. Chain referral sampling was used to contact and recruit suitable respondents within the semiscattered HN. The data were collected from practicing and retired HN members from Qatar, Saudi Arabia and Pakistan. The data were analyzed using keyword categorization and further substantiated, and validated, by NVivo analysis.FindingsFour types of trust (i.e. calculative, verifiable, reciprocal and earned) were identified in HN relationships. It was revealed that trust progressed in a stepwise fashion from calculative trust (basic trust form) to earned trust (ultimate trust form). SET explained the progression of trust in terms of key drivers of different trust types at various stages of HN exchanges and relationships. In addition, it was observed that HN trust development followed Dwyer et al. (1987) topology of business relationship development.Originality/valueThis study extended the oversimplistic treatment of trust within HN by looking into its different types and its transformation over time. More specifically, this research provided an insight into how various types of trust were used within deeply embedded informal business networks to maintain and nurture business exchanges.

Studying the Impact of Factors Affecting Competitiveness in Seafood Export Enterprises: A case in the Mekong Delta, Vietnam

This study aims to explore the factors affecting the competitiveness of seafood exporters in the Mekong Delta by surveying 200 people who are leaders and managers of exporting enterprises seafood exports in the region. The results show that the factors affecting competitiveness are measured by 10 components in order of importance: (1) Research and development capacity, (2) Brand competitiveness, (3) Human resource capacity, (4) Production technology capacity, (5) Business relationship development capacity, (6) Marketing capacity, (7) Management capacity, (8) Capacity price competitiveness, (9) Financial capacity, (10)Commercial dispute handling capacity. The study makes several recommendations to the leaders of seafood export enterprises to improve their competitiveness. References Hoang, T.T. (2011). Improving competitiveness of Vietnamese seafood export enterprises by 2020. Doctoral thesis.  Ho Chi Minh City: University of Economics Ho Chi Minh City. Ministry of Agriculture and Rural Development. (2010). Vietnam Fisheries Development Strategy to 2020. Hanoi. Nguyen, D.T & Nguyen, T.M.T (2008). Research on dynamic competitiveness of Vietnamese enterprises in Ho Chi Minh City. The scientific research topic is mentioned in the Set No. B2007-09-46-TD. Vietnam:  University of Economics Ho Chi Minh City. Porter, M. E. (1980). Competitive Strategy Techniques for Analyzing Industries and Competitors. US: New York Free Press 1980. Porter, M. (1990). National competitive advantage. Ho Chi Minh City: Young Thanh, N.V. (2005). Enhancing the competitiveness of Vietnamese enterprises in the current period", Economic Development Magazine, November issue Quy, P.T. (2005). Policies and solutions to improve the competitiveness of Vietnam's export aquatic products in the process of international economic integration. Research project at ministerial level, MS B2004.38.80

Animating business relationships through community social capital: an insight into conviviality

PurposeAs conviviality can nurture community social capital, this paper aims to investigate how such capital can give rise to economic behaviour in terms of developing business relationships.Design/methodology/approachThe empirical analysis was based on case studies of Italian businesses recognised as active communities that periodically organise convivial activities to fuel reciprocal collaboration. The case studies were constructed by combining a collection of secondary data, in-depth interviews and participant observations.FindingsThis paper shows how: community social capital in convivium emerges from self-narrative stimulated by ritual practices; social trust mobilising a convivial social capital is fuelled by knowledge generated through sharing and empathic relationships; community-based social relations embed business relations and if mediated, community-based business relations can also embed a community business.Originality/valueThe originality of the paper is twofold as it contributes: to understanding how conviviality can be used as a strategic tool for entrepreneurs to develop business relationships from convivial relations; and to finding intersection points between studies on business relationships from social capital and studies on entrepreneurship from community social capital.

Evolution of B2B relationship stages in China: A study of confucianism philosophy

This study aims to explore the development of business relationships from an interactional perspective, which challenges the conventional time-based view in Western contexts. Twenty in-depth interviews with Chinese SME managers reveal the uniqueness and importance of the operationalization of Confucian virtues, the guiding principles, and mechanisms for social interactions and trading practice, in developing Chinese business to business (B2B) relationship stages (i.e., discernment, authentication, stabilization, and decoupling). Given the role of Confucian virtues and their dynamics for the development of business relationships, we further argue that the evolution of a relationship depends on the shifts in concerns of transactional and relational governances among business partners. Our propositions advance the literature by showing that distinct constructions of Confucian virtues mark a vantage point for business operators and practitioners in formulating effective B2B relationship strategies in China, and raising future research questions of the impacts from sub-evolutions in Confucian virtues on B2B relationships.

The Influence of a Profile in a Professional Social Network on the Development of a Specialist's Career

A successful career requires improving professional skills and developing business relationships. A personal profile in professional social networks and its proficient management can have a significant impact on career development. The article is devoted to investigating the impact of a specialists profile in professional social networks on the career development. The study analyses the statistical data on the use of social networks for recruiting. The relationship between a profile in professional social networks and the development of a specialist's career was investigated by conducting a sociological survey of networks users from various fields of activities. Most of the surveyed respondents (61 %) answered positively to the question about the benefits of professional social networks for career advancement, another part of the respondents (19 %) is not sure, but tends to answer positively. Only 11 % of the respondents are inclined to give a negative answer to this question and 1 % answered negatively, pointing out the uselessness of professional networks in their careers. Thus, the study confirmed the need to apply the profile for the development of a specialist's career. The advantages of a profile in professional networks are highlighted, allowing the development of effective professional communications: users of social professional networks, actively participating in forum discussions, publishing papers on the site, can attract attention of potential employers and develop their reputation. The authors propose to use a profile in a professional social network more widely in order to develop a specialist's career.

Leveraging Internet capabilities for international business relationships: a comparison between Australian, Chilean and Taiwanese exporting SMEs

PurposeThe purpose of this study is to investigate how Internet capabilities influence international business relationships using the resource-based view and capabilities perspective. Many studies highlight the importance of the Internet in helping smaller firms internationalize. However, few studies actually test how this is happening. The central purpose of this research was to examine and test the impact of Internet capabilities on international information availability, international strategic orientation and international business relationships in a sample of small and medium-sized enterprises (SMEs) in Australia, Chile and Taiwan.Design/methodology/approachThe study uses a structural equation modeling process so as to test the Internet capabilities on international business networks. The empirical research is based on an analysis of a sample of internationalizing SMEs in three export-intensive markets in Australia (215), Chile (204) and Taiwan (130) to test a conceptual model.FindingsThe results demonstrate that Internet capabilities have a distinct effect on the development of international business relationships for SMEs in the three countries. That is, Internet capabilities have a positive impact on a firm's international business relationships, but this varies across Australian and Taiwanese and Chilean SMEs.Originality/valueThese studies give empirical validation on the way in which smaller firms are using Internet capabilities for leveraging networks in internationalization and how this varies across countries. The results demonstrate that Internet capabilities have a distinct and positive impact on the development of international business relationships for SMEs in the three countries. However, there are specific differences between countries in how the Internet is being leveraged for the development of international business networks. Something currently not highlighted in the body of knowledge.

How Do Women Overcome Gender Inequality by Forming Small-Scale Cooperatives? The Case of the Agricultural Sector in Uganda

In Uganda, the agricultural sector contributes substantially to gross domestic product. Although the involvement of Ugandan women in this sector is extensive, female farmers face significant obstacles, caused by gendering that impedes their ability to expand their family business and to generate incomes. Gender refers to social or cultural categories by which women–men relationships are conceived. In this study, we aim to investigate how gendering influences the development of business relationships in the Ugandan agricultural sector. To do so, we employed a qualitative–inductive methodology to collect unique data on the rice and cassava sectors. Our findings reveal at first that, in the agricultural sector in Uganda, inter-organization business relationships (i.e., between non-family actors) are mostly developed by and between men, whereas intra-organization business relationships with family members are mostly developed by women. We learn that gendering impedes women from developing inter-organization business relationships. Impediments for female farmers include their restricted mobility, the lack of trust by men, their limited freedom in communication, household duties, and responsibilities for farming activities up until sales. Our findings also reveal that these impediments to developing inter-organization business relationships prevent female farmers from being empowered and from attainting economic benefits for the family business. In this context, the results of our study show that grouping in small-scale cooperatives offers female farmers an opportunity to overcome gender inequality and to become economically emancipated. Thanks to these cooperatives, women can develop inter-organization relationships with men and other women and gain easier access to financial resources. Small-scale cooperatives can alter gendering in the long run, in favor of more gender equality and less marginalization of women. Our study responds to calls for more research on the informal economy in developing countries and brings further understanding to the effect of gendering in the Ugandan agricultural sector. We propose a theoretical framework with eight propositions bridging gendering, business relationship development, and empowerment and economic benefits. Our framework serves as a springboard for policy implications aimed at fostering gender equality in informal sectors in developing countries.

Does corporate social responsibility matter even in the B2B market?: Effect of B2B CSR on customer trust

This study attempts to understand how Corporate Social Responsibility (CSR) positively influences the quality of business relationship in the business-to-business market. The purpose of this article is to suggest the CSR model in the B2B context. First, this study discerns two dimensions of firms' CSR activities based on the previous studies in B2B area - Business CSR and Altruistic CSR. Furthermore, we tried to investigate the CSR activities affecting the result of the development of business relationships (economic and non-economic factors) and customer trust as a relationship performance in the B2B market. Managerial implications and limitation of the study were also discussed.

Bourdieusian interaction: actors’ habitus, agentic activities and field resources

PurposeThis paper aims to explore the implications of applying a Bourdieusian meta-framework to business interaction and relationship building within networks. The motive is to advocate the use of Bourdieu’s work in its entirety rather than sub-optimal use of selected concepts in isolation.Design/methodology/approachThe aim of this conceptual paper is to explore how a Bourdieusian framework benefits understanding of structure/agency relations as a mutually constituted duality within business networks. The concept of duality regard relationships as emergent from synergies between structure and agency made possible by the translational capacity of “habitus”. Habitus is, therefore, the main intersection, catalyst or chiasmus between structure and agency facilitating enacted, emergent properties of business relationships.FindingsThe Bourdieusian framework suggests that structures and practices are related by multiple dualities brokered by multiple knowledge forms. The main contribution that this triadic framework brings to debates on structure-agency relationships is mostly contained in the concept of “habitus”, which is identified as a translation vehicle provides critical brokerage between actors’ resource structures and activities. It is a key concept that helps us understand how structures and agentic behaviours are equally important and mutually constituting influences upon emergent properties of business interaction. For business marketing, this means that the habitus of actors’ schemas are both embodied and cognitive. Habitus acts as the main catalyst for emergent and diverse capital resources and a plural set of skills essential for effective practical activities.Research limitations/implicationsThe research focus of a Bourdieusian framework is upon investigating a triadic understanding of concepts of habitus, field and practice as elements of a “pan-relational” or mutually constituted amalgam facilitated by a corresponding triadic relationship between three types of knowledge; namely, “illusio”, “phrónesis” and “poíesis”.Practical implicationsBy adopting a Bourdieusian framework, this paper can regard the practical development of durable business relationships as involving interactions that adequately co-ordinate the different habitus, sub-fields and practices of parties as shared. The implication is that the practitioner needs to be equally competent in their use of “illusio”, “phrónesis” and “poíesis” as different knowledge forms whose sum is greater than its parts.Originality/valueThe approach reveals that habitus emphasizes that structures are never entirely conscious and calculated schemas as they contain unconscious, embodied habits fuelled by tacit, cultural knowledge infused with symbolism, mythologies and rituals, which are communicated mostly indirectly through analogical reasoning, narrative, heuristics and embodied gestures.

When Western measures meet Eastern perspectives: A prototyping analysis of xinren in buyer-seller relationships

This paper contributes to our understanding of xinren within buyer-seller relationships. Xinren is often translated to trust and is critical for the development of strong business relationships. Previous conceptualizations and measurements of xinren have been inconsistent and questionable. Through a novel methodology, prototyping analysis, this research outlines a foundational structure for xinren. A series of 4 studies were conducted on xinren in buyer-seller relationships in China involving a total of 311 participants who were employed in sourcing and procurement (33.23%) or marketing and sales (31.29%), and had spent less than one year working outside China. Central prototypical features include high arousal emotions highlighting the importance of affect-based aspects when developing xinren. Negative features indicate that both trust and distrust may be synergistically operating within xinren. Contributions are also made by outlining both universal trust features and more culturally-nuanced trust features. Suggestions for managers indicate how both Eastern and Western partners may use these results to build deeper trust within their relationships. Future research includes undertaking further prototyping analysis on trust within other cultures to develop foundational structures that may include both universal and culturally-nuanced trust features.

Business Practice Note No. 34: Business-to-business collaboration - an introduction to ISO 44001

Neil Wakeman gives an overview of the development of collaborative business relationships in accordance with internationally recognised standards

The importance of Interactive Network Branding for business relationship development: insights from emerging markets

Purpose This paper aims to clarify the meaning of Interactive Network Branding (INB) and demonstrate its importance for business relationship development, within a cross-cultural context of emerging markets (EM). More specifically, it integrates the idea of INB through its three branding dimensions into the first three relationship development stages introduced in the seminal article by Ford (1980). By bringing INB into relationship development, and by considering its embeddedness in a cultural context, the study extends current understanding of business relationships in connection to corporate branding. Design/methodology/approach The study is empirical and explorative. To reach the research aims, the authors apply a qualitative approach and present findings from four business relationships in two EM contexts, namely, the Croatian and Russian markets. Ten interviews have been undertaken, and the analysis was conducted by applying sensemaking and narrative approaches. Findings Findings show the influence of INB dimensions on three stages of business relationship development. In both EMs, the external dimension is found to be dominant for the pre-relationship stage while the internal dimension for the early stage. At the same time, mutual INB dimension, which is built on interpersonal interactions, is influencing each stage to a certain manner, while being a dominant dimension in the development stage. Also, the role of each dimension in a specific stage of relationship development is conditioned by the cultural context in which business relationships are embedded. Research limitations/implications Based on the chosen qualitative research approach and focus on two countries, the findings might lack generalizability. Thus, future research is needed to observe business relationship development through INB dimensions in different cultural environments. Practical implications This paper provides a new perspective for managers on coping with the development of business relationships and branding in the EM context. Originality/value This is the first attempt to study business relationship development through branding perspective in general and INB perspective in particular. It builds a deeper understanding of identity, reputation and mutual INB dimension and their manifestation and influence on each relationship stage. In addition, the study has a cultural context, which makes it one of the rare cross-cultural studies related to branding in business marketing research.

Междисциплинарный подход при разработке учебного курса по дисциплине «Межкультурная деловая коммуникация»

The paper discusses the problem of the development of intercultural competence in students of the Faculty of Economics through the course “Intercultural Business Communication”, developed on the basis of an interdisciplinary approach. Intercultural business communication implies the ability to create and develop business relationships with partners from different countries. In order to achieve success in this type of communication, the reference level of a foreign language is not high enough, it is also necessary to be able to adequately interpret the information received and accept the socio-cultural diversity of partners. Therefore, the specialist training program requires special attention to the formation of the linguistic personality (identity) of students – a person with intercultural communication skills. The development of intercultural competence can be carried out using an interdisciplinary approach, which helps to expand the scientific worldview and consider any concept from the standpoint of various fields of knowledge. The paper presents the content of the interdisciplinary course developed by the author on the topic “Intercultural Business Communication”, describes in detail how the course lectures are implemented, and an intermediate and final assessment of the course is carried out. In conclusion, the importance of developing and implementing interdisciplinary courses in the educational process, despite the complexity and significant time spent in their preparation, was noted.

An Integrated B2B Guanxi Model: A Taiwan Perspective

Due to the uniqueness of Chinese culture, relationship marketing cannot be interpreted directly from the extant theories developed in Western society. Using qualitative research, the study constructed an integrated model of B2B gaunxi and proposed seven observations through the interviews with Taiwanese small and medium enterprises. The proposed model describes a complete process of building guanxi with five levels: evaluation of the target firm, channels for building guanxi, exchange of B2B guanxi, evaluation of guanxi quality, and evaluation of guanxi performance, which can be applied for developing business relationships in China. The use of interviewees’ real dialogs provides a “hands on/real world” view of the role of guanxi for building and maintaining business relationships, which have here-to-fore been treated in comparatively esoteric ways.

Family Business Owner as a Central Figure in Customer Relationship Management

This paper presents theoretical and empirical research on the activities and attitudes of a family business owner regarding marketing as a business function. The development of successful business relationships of a family business is tightly connected with the activities of the business owner. The theoretical review examined numerous family and non-family business studies by analyzing the existing paradigms of marketing management as a whole. The empirical research, surveying 420 family businesses in Serbia, defined the overall role of the family business owner in customer relationship management regarding business-to-business (B2B) and business-to-consumer (B2C) relationships. Key findings suggest that the main difference in customer relationship management (CRM) between family and non-family companies is related to B2B relationships, which the family business owner is heavily involved in managing, in terms of invested time and responsibility. Future research should cover aspects of internationalization (to regional markets) because it is essential to cross-examine regional with local contacts of a family business owner, to provide full comprehension of the complexity of market relationships in a family business environment.