Long-term Business Relationships Research Articles

Revisiting the classic ABI model of trustworthiness: interactive effects of trustworthiness components on trust in mixed-motive social exchange contexts

ABSTRACT Trust is a core precondition for positive outcomes in multiple types of social exchange interactions, and has been successfully predicted by the perceived ability, benevolence, and integrity of a counterpart (i.e. the ABI model; Mayer et al. 1995. However, the specific interplay of these ABI components remains largely unclear, especially in mixed-motive social exchange settings. We propose there is an interplay of the ABI components, expecting a main effect of benevolence moderated by ability and integrity perceptions. In doing so, we refer to basic rationales for interaction effects from existing motivational and social psychological theories such as Expectancy Theory (e.g. Vroom, 1964) or the Stereotype Content Model (Fiske et al., 2002). We tested our predictions in two preregistered experimental studies (N = 1.058) using negotiation vignettes (Study 1) and a multi-round decision game (Study 2). As expected, counterpart benevolence consistently predicted trust and this main effect was moderated by counterpart integrity in Study 1 and by ability in Study 2. Our findings challenge the common main effect assumption for the trustworthiness – trust relationship, provide insights into the mechanisms of trust formation, and are relevant for trust building as well as long-term business relationships.

Sustaining Success in B2B Partnerships: Exploring Intention to Continue the Relationship

This study aimed to analyze the influence of service quality, relationship marketing, perceived value, and satisfaction on intention to continue relationships in the business-to-business context of lubricant companies in Indonesia. We utilized the theoretical perspectives of the Social Exchange Theory and Expectation–Confirmation Theory. The research sample comprised 135 distributors of lubricant companies in Indonesia selected through saturated sampling. Data collection employed a survey method, and data were analyzed using PLS-SEM. The results indicate that service quality and relational marketing significantly affect perceived value while perceived value significantly influences satisfaction. However, the direct influence of perceived value on the intention to continue relationships was not significant. Conversely, satisfaction was found to have a significant positive influence on the intention to continue relationships. These findings underscore the importance of integrating sustainability principles into service quality, relationship marketing, and satisfaction strategies to foster long-term business relationships in the B2B context within the lubricant industry in Indonesia.

Vendors Capability: A Way for Winning the Contract in a B2B Relationship

A Business-to-Business commercial (B2B) transaction is different from normal retail transactions with customers. Organisations engage with each other and vendors in a specific manner in a B2B purchase environment. Organisations, big or small, spend money to keep up with their business operations. This requires them to deal with many other business units called vendors/suppliers to help them with necessary input resources for their business operations. In B2B transactions, organisations deal with each other to purchase goods and services. These associations work on long-term business relationships. The vendor organisations hire sales teams and relationship managers to work with the client organisation in order to maintain healthy business relationships. It is a point of debate whether the relationship that exists between the vendor and the client is because of the personnel who is responsible for the relationship or is it the vendor organisation as a whole that has built its capability and experience over the years has been successful in maintaining business relationships with the client. A client who engages with a vendor will have certain criteria for selection and engagement with a vendor. With this view, we have decided to study this phenomenon by comparing the two factors – sales person’s relationship and vendor’s capability and check which of the two factors influences the awarding of contracts from the clients. Purchase is more process driven it evaluates the vendors strongly on their capability to deliver on the purchase terms. The data analysis and the hypothesis testing results obtained indicate that evaluating vendors by their capabilities for awarding contracts is a more pragmatic way of supplier selection.

Економічна ефективність переходу до органічних добрив за допомогою сучасних технологій

This topic is devoted to the study of the economic advantages that arise when switching to the use of organic fertilizers, with the help of modern technologies in their production and application in agriculture. Emphasis is placed on the analysis of the impact of the latest technologies on the economy in the context of the agricultural sector. The article examines not only the process of production of organic fertilizers, but also its impact on the financial performance of enterprises, selection results and the quality of agricultural products. Attention is also drawn to how modern technologies help reduce production costs, while increasing the efficiency of resource use. The study of this topic can contribute to the understanding and determination of the strategic importance of the implementation of technologies in the field of organic fertilizers to achieve economic sustainability, ensure food security and reduce the negative impact on the environment. Organic agricultural production in Ukraine is only at the initial stage of development and faces problems, despite the great potential of opportunities. The problem of formation arises from the fact that the organic sector can be very promising thanks to the fertile black earth grounds and sustainable traditions of agricultural production. Organic producers must compete with conventional producers to strengthen their position in the organic sector, defend their views on the future of agriculture and ensure that it is implemented at a legal level. Over time, organic companies can become preferred suppliers and establish long-term business relationships that provide security. Therefore, the world market of organic products is developing rapidly. Ukraine has only taken the first steps in the formation and formation of the market for organic products, which is already quite developed in other countries (especially in the EU). For this reason, the market for organic products has many advantages, such as environmental, economic, and social advantages inherent in this field of activity, and therefore the development of this market is of great importance today. Keywords: organic fertilizer, agricultural market, technologies, products, agricultural technologies, production, agricultural crops, economic efficiency.

Trade Show Triumph: A Strategic Guide for New Businesses for Better Exposure

Trade shows stand as beacons of opportunity for growth and recognition. This whitepaper discusses a roadmap to excel on the trade show stage. Drawing from the experience in prestigious events such as Expo West and Expo East, this guide confers a strategic framework tailored to the unique needs of new businesses looking to benefit from trade shows based on their industry. It includes several frameworks to follow before, during, and after tradeshows to help readers improve their trade show presence and in turn, their industry standing.
 The paper discusses the challenges and opportunities post-COVID-19, emphasizing the importance of quality over quantity in attendee engagement, a reflection of a 46% rise in attendee quality. It goes on to detail six strategies to master the art of trade show booth engagement. From interactive product demonstrations leveraging the Zeigarnik Effect to gamification rooted in the Pleasure Principle, personalized consultations, storytelling sessions, social media engagement, and feedback stations, each strategy is a powerful tool.
 Key to success is the flexibility to adapt, as unforeseen circumstances arise. The whitepaper concludes with a three-part checklist, pre-show, during-show, and post-show, serving as a comprehensive roadmap for event success. The post-show follow-up section emphasizes the importance of maintaining connections and fostering lasting relationships.
 Best Naturals extends an invitation to navigate trade shows with excellence. Recognize the potential of trade show interactions, transform them into long-term business relationships, and secure your place in the future of the nutrition supplement industry.

The Negative Impacts of Trust in Long-Term Agri-Food Business Relationships

Trust has been shown to be a key component of a successful business-to-business (B2B) relationship. However, recent studies have pointed to the potential adverse effects on different aspects of the relationship, with a lack of knowledge on how calculative trust and relational trust interact and their ramifications for long-term relationships, particularly in the agri-food context. Fifteen semi-structured interviews were conducted among different members of the rainbow trout and lamb supply chains in Canada. The data indicated that both types of trust can coexist in a long-term relationship, and while calculative trust can give rise to adverse effects such as complacency and payment delays, relational trust can help alleviate some of those impacts.

A SYSTEMIC APPROACH TO THE FORMATION OF MULTI-LEVEL SUPPLY CHAIN MODEL BASED ON CYBERNETIC MODELING OF VIABLE SYSTEMS

Iryna Fedotova 
 E-mail: irina7vf@gmail.com 
 Associate Professor Kharkiv National Automobile and Highway University 
 Kharkiv, Ukraine
 https://orcid.org/0000-0002-3277-0224
 
 Nadiia Bocharova 
 E-mail: bocharova.n.a.xnadu@gmail.com 
 Associate Professor Kharkiv National Automobile and Highway University 
 Kharkiv, Ukraine
 https://orcid.org/0000-0003-4371-0187
 The article discusses the structure and levels of supply chain formation as a logistics system from a systemic approach perspective. Research on the formation of logistics systems is important both theoretically and practically. The goal of the research is to improve the theoretical foundations of the formation of a multi-level supply chain model based on the concept of modeling viable systems. A supply chain model based on the methodological apparatus of cybernetic modeling of viable systems is proposed. The supply chain model is presented in the form of a subject (metasystem) and an object of management (operational element), which is proposed in the form of links-elements of the supply chain. This allows coordinating material and other flows in the supply chain, providing viable means of development and maintaining long-term business relationships, and achieving synergistic effects from the interaction between system links. Flows in this system are formed into a logistics chain, which generally combines producers, intermediaries, carriers, and consumers. Based on the structural-level and metasystemic approaches, the main levels and structure of the supply chain are defined. To form a multi-level supply chain model, a differentiation criterion for levels is proposed, which allows, in accordance with the metasystemic approach, to identify five levels of the supply chain - element, component, subsystem, system and metasystem. The multi-level model of an integrated supply chain requires the integration of various functional areas and their participants at all levels within a single supply chain for its optimization and can be applied to any enterprises. The proposed theoretical foundations make it possible to coordinate such management objects in the logistics system as interaction between chain participants, logistics functions, business processes, and create their specific structure and determine integration levels. The structure of the mechanism for forming the supply chain is proposed, which is based on five functions: planning, procurement, production, sales, returns. The feature of the proposed mechanism is that special attention is paid to information support. Generalizing the structure of the supply chain mechanism will improve the effectiveness of establishing logistics links for the enterprise.

СОЦІАЛЬНА ВІДПОВІДАЛЬНІСТЬ - ФЕНОМЕН СОЦІО-ЕКОНОМІЧНИХ ПРОЦЕСІВ: СУЧАСНИЙ ІСТОРИКО-КОНЦЕПТУАЛЬНИЙ АСПЕКТ

The article examines the main theoretical issues of choosing a market model of corporate social responsibility (CSR) by domestic enterprises. The irrelevance of CSR in solving social problems of Ukrainian society and increasing the efficiency of its economic sphere has been determined. The factors inhibiting the implementation of CSR in the economic activity of business structures have been clarified. It was noted that an accelerated transition from the market model of CSR to the model of CSR based on "common values" is possible. It is shown that the joint (community) model of CSR is based on the establishment of mutually beneficial, long-term business relationships with internal and external circles of stakeholders. The social and economic significance for companies of expanding the circle of interested subjects was revealed. It is shown that the presence of stable groups of stake holders, which are expanding, indicates the public recognition of enterprises as socially significant subjects.

Sustainability Governance: Insights from a Cocoa Supply Chain

The food industry is one of the main drivers of climate change, with serious impacts on the living and working conditions in developing countries. Due to these sustainability issues, consumers, governments, and non-governmental organizations are pressuring food companies to rethink their current business concepts of food production. Food companies rely on supply chain governance and its mechanisms to implement sustainability standards across all tiers of their supply chains. This study examines the sustainability governance at all stages of a cocoa supply chain, from the raw material production to the retailer, by using a qualitative case study approach. The results show a differentiation of the sustainability governance according to the different supply chain stages. At the raw material production stage, sustainability is mainly improved using contracts, extensive and frequent knowledge sharing, and audits. After the raw material production stage, environmental and social sustainability is almost exclusively coordinated by certificates, while other governance mechanisms are used to foster long-term economic business relationships. This study gives detailed insights into the application intentions and the functioning of sustainability governance mechanisms and provides propositions on how to efficiently improve sustainability in food supply chains.

PROFITS IN THE PERSPECTIVE OF TRADITIONAL MARKET TRADERS IN GRESIK, EAST JAVA PROVINCE, INDONESIA

<p>Traditional merchants’ profits are not limited to revenue gained over and above costs and expenses, but also include perks such as satisfying life's demands while maintaining a sense of happiness and long-term business relationships. The purpose of this research is to describe the phenomenon of the meaning of profit for traders in the perspective of Gresik culture. This research method is with a qualitative paradigm using an ethnographic approach. Collecting data using participant observation and in-depth interviews conducted by snowball. Test the validity of the data using the member check. Data analysis using the Spradley model. The research results that have been found, the meaning of profit for traders in the perspective of Gresik culture is courtesy, trust, and empathy.</p>Keywords: culture; profit; trader; traditional market

Trust and Communication Influence on Farm Performance for Paddy Farmers: A Study in Bangladesh

Farmers are currently moving toward business relationships and forming close ties with business partners in the supply chain. Close business ties reduce costs, enhance efficiency, improve profit, increase competitive advantage and build personal relationships. Utilizing strategic relationship elements such as trust and communication has significant importance for farmers and marketers. This study assessed the influence of trust and communication on farm performance of paddy farmers’ in Bangladesh. Data was collected through quantitative survey-based interviews with 356 farmers from the Mymensingh District, Bangladesh. Descriptive analysis was used to summarize the farmers’ demographic details and exchange relationship with their preferred paddy buyer. Partial least squares structural equation modeling (PLS-SEM) was used to test the hypotheses. The findings revealed that trust and communication contributed to promoting paddy farmers’ farm performance, especially profit, sales, and cash flow growth. The study findings offer farmers a basis for developing long-term business relationships by applying trust and communication to establish, maintain, and enhance farm performance.

Retrospective View and Thematic Analysis of Business-to-Business Relationships through Bibliometric Analysis

ABSTRACT Purpose In the current business context, deliberations concerning business-to-business relationships (business relationships) and their importance to business firms are increasing. The extensive research in this area over the past three decades had created a need to synthetize existing research. This paper explores the development of business relationships domain concerning (1) publication trend, (2) influential publications, (3) prolific contributors, (4) themes of research, and (5) future research directions. Methodology/Approach This study used the Web of Science core collection to identify influential articles, authors, journals, geographies, universities, and key research themes associated with business relationships. We developed a graphical analysis of the bibliographical material using VOSviewer. Network structures, including keywords co-occurrence and coauthorship analysis, further strengthened our understanding of this domain. Findings The findings showed a consistent increase in research on business relationships since its inception. The content analysis of the keywords revealed four dominant research themes: the role of information and technology in maintaining business relationships, value creation in business relationships, customer satisfaction and loyalty in business relationships, and inter-organizational trust and governance in business relationships. Research Implications This study provides a comprehensive view into research themes in business relationship area. The present study also helps researchers in identifying future directions of research in the business relationships area. Practical Implications The four key dominant themes identified in the study present key managerial insights. According to the research themes, business firms should embrace digital technological tools, collaborate with customers and other stakeholders, develop loyal customers, and implement relational governance mechanisms to develop long-term business relationships. Originality/Value/Contribution of the paper This study provides insight into the advancement of business relationships area by exploring the relevant body of knowledge, dominant research institutions, prominent topics, and future research possibilities. This includes articles published in top management journals from 1990–2020. This bibliometric study is a pioneering effort to map the domain of business-to-business relationships, wherein current insights and future research directions take center stage.

The role of supplier satisfaction survey in building partnerships

Purpose: The main goal of this paper’s research was to determine the role and justification of surveying supplier satisfaction in building partnerships. Methodology: To collect primary data, qualitative research was used, which was conducted in several phases. The study tested nine key criteria modelled on the work of Vos et al. (2016). The sample of key suppliers was determined from a non-probability sample of experts from eight strategic suppliers who agreed to participate in the research. A qualitative approach was used due to the small sample and the desire to apply a different approach since the authors used a quantitative approach in most of the analysed papers. Results: Research has shown that the key criteria for supplier satisfaction are reliability, communication, and operative excellence of the customer they work with. Conclusion: Any long-term and successful business relationship implies the satisfaction of all parties in the relationship. The concept of supplier satisfaction research is a business practice of a modest number of companies. Despite this, the research participants confirmed that there are solid arguments and interest in introducing this type of research and its continuous implementation. The recommendation is the systematic introduction of supplier relationship management and, as part of that, the introduction of the practice of conducting supplier satisfaction surveys.

Кросс-культурный менеджмент в сложившейся культуре коммуникаций

The globalization of business, promotion of economic interests in the markets of other countries, the processes of unification and creation of a common economic space require knowledge of national customs and national culture. Culture is, above all, predictability. Acquiring ability to understand and use the peculiarities of national cultures, interpersonal communications and business ethics in global business is an important task of cross-cultural management. The success of international companies in providing high-quality products and services depends, on the one hand, on growing dynamics of the economic environment and, on the other hand, on adoption of international quality standards and procedures. As the market becomes more global, the products and services offered by international companies around the world face the challenges of a multicultural environment. These issues manifest themselves not only at the level of customer relations, but also deep inside companies, at the level of employees. The paper characterizes cross-cultural management and identifies the barriers that arise in the way of its successful implementation. In the course of further work, the authors consider main directions of modern solutions in the field of cross-cultural personnel management. Intercultural management is, first of all, the creation and application of technologies for managing cultural diversity in the context of globalization, successfully operating in different cultures in order to prevent intercultural conflicts. The proposed solutions include development of intercultural competencies, training of global managers in key aspects of intercultural interaction, the introduction and active use of advanced digital technologies, as well as the construction of a knowledge management system with deployment of publicly available databases and the expansion of their analytical capabilities at the national, regional and international levels. The authors note that cultural knowledge management is crucial for success in developing and maintaining long-term business relationships in a multicultural environment. Knowledge management provides necessary technological support for cross-cultural management in terms of improving knowledge sharing in multinational companies and the effective use of knowledge in international joint ventures.

Long-term business relationships, bargaining and monetary policy

We analyze a monetary economy where firms trading intermediate inputs engage in long-term business-to-business (B2B) relationships. We focus on features such as search for business partners, price negotiation and productivity levels that can make it convenient to separate a relationship. These features are introduced into an otherwise standard New Keynesian (NK) model for policy analysis, where the central bank adopts a Taylor rule. As a result of these features of the B2B relationships, final price and intermediate price inflation are generally not aligned, which is realistic but overlooked by the standard NK model. Consequently, we can investigate the extent to which the allocative role of the intermediate price contributes to the transmission of monetary policy shocks. We find that an allocative role arises from the endogenous separations of the relationships. However, this role is smaller than that in the standard NK model, leading to a comparable but micro-founded alternative explanation of the U.S. business cycle moments.

Understanding Customer Responses to Service Failures during the COVID-19 Pandemic for Sustained Restaurant Businesses: Focusing on Guanxi

Due to the COVID-19 pandemic, restaurants worldwide, including China, have been forced to protect public health by following food safety standards and adapting to the necessary social distancing practices. Accordingly, restaurant diners who are concerned about food safety and unsure of whether it is truly safe to dine out, put more importance on the entire stages of service consumption. Restaurants must make their best efforts to minimize service failures in their service provision process and outcomes. Given that customers from different cultures are reported to evaluate service quality differently, this study was designed to investigate what actions Chinese customers who encounter service failures would take under the influence of Guanxi. Guanxi represents Chinese attitudes towards long-term individual and business relationships and ultimately involves moral obligations and mutual favors. Analyzing our structural equation model using 439 responses obtained from Chinese diners, this study determined that Chinese consumers would react differently in the service process failures and outcome failures in terms of negative word-of-mouth, direct complaints, switching intention, and revisit intention. More importantly, this study confirmed the significant moderating effects of Guanxi within the proposed relationships. Based on the study’s findings, useful implications are provided for academics and practitioners regarding sustained restaurant businesses.

ОСОБЛИВОСТІ ЗДІЙСНЕННЯ АНТИКРИЗОВОГО УПРАВЛІННЯ ПІДПРИЄМСТВОМ ГОТЕЛЬНОЇ ІНДУСТРІЇ В УМОВАХ ПОШИРЕННЯ СВІТОВОЇ ПАНДЕМІЇ

The article is devoted the main aspects of the hotel industry, and proposes measures to form an integrated model of crisis management of the hotel. An analysis of data on Internet activity and promotion in social networks, which shows that a large number of global hotel chains continue to communicate with their followers, thus supporting their own brand. The article also research the current state implementation of anti-crisis measures during forced restrictions. It was found that many hotels use a variety of options to change their corporate strategies, including: simplification of procedures and focus on additional services; providing discounts and special offers if guests re-check into the hotel; creation of various loyalty programs, including the provision of corporate cards with a conical storage system or discounts; mitigation of cancellation conditions with possible cancellation of penalties, etc. However, according to statistics, all these measures become ineffective if there is no preliminary analysis of the factors that constrain the activities of the enterprise. Since the crisis management of hotel and restaurant enterprises is aimed at preventing and overcoming crises in the enterprise, as well as minimizing their negative consequences, when implementing or changing certain aspects of the crisis management strategy should take into account the time factor. The integrated model of anti-crisis hotel management which where proposed in the article decide reducing the consequences of the crisis and preventing its occurrence. This model has two main objectives: provide tools to improve the quality of guest service and employee motivation; development of a crisis management model that serves as a tool to improve long-term business relationships with other external counterparties and the state. The integrated model of crisis management for the hotel indystry, should be understood that this process is not a situational, forced measure, but a continuous process of the main activity; all measures within the crisis management should be implemented in the organizational culture of the hotel; department heads should play a key role in implementing this model.

ИННОВАЦИОННОЕ РАЗВИТИЕ МАЛОГО АГРОБИЗНЕСА НА ОСНОВЕ СЕТЕВОГО АУТСОРСИНГА

Currently, outsourcing is be- coming one of the most effective tools for in- novation, stimulating the development of new forms of cooperation based on the networking of organizations. At the same time, outsourcing requires significant efforts for organizations, their organizational transformation, the ability to buildand maintain long-term business relationships. The methodological basis of the study was the development of scientists in the field of innovative development of small agribusiness on the basis of network cooperation, the study of foreign experience in the use of outsourcing in agriculture. General scientific and empirical research methods were applied, including abstract-logical, monographic, economic-statistical and comparison method. The analysis showed that the leading strategy of the agricultural business today is a strategy based on rigid forms of integration. However, with the development and complication of inter-firm ties, the replacement of rigid forms of integration with soft, network or hybrid ones, which are based on mutual benefit and co- operation, is gradually observed. In this regard, network outsourcing represents an alternative to vertical and horizontal integration. The article shows the advantages and disadvantages of network structures; revealed the trends influencing the strategy of outsourcing introduction; the factors hindering its development have been identified; a comparative analysis of agricultural outsourcing in Russia and foreign countries for the main business processes has been carried out. It is concluded that in order to increase the innovative activity of small agribusiness, it is necessary to use more tools and mechanisms of digital technologies, including various forms of network cooperation, such as outsourcing.

Legal risk management: Can the COVID-19 pandemic be included as a force majeure clause in a contract?

PurposeThis study aims to investigate the legal consequences of the use of force majeure (FM) clause in a contract related to the prospect of business sustainability. In addition, this paper also examines the legal risk perspective toward the interpretation of FM clauses in contracts that incorporate the coronavirus disease 2019 (COVID-19) pandemic situation.Design/methodology/approachThe research design in this paper uses the normative juridical method, which means that it is carried out with library research on secondary data in the field of law, in the form of primary and secondary legal materials and tertiary legal materials. Primary legal materials are in the form of regulations relating to the variable topics of this paper, namely, FM, COVID-19, contracts and legal risk management (LRM).FindingsThe study found that studies of FM are still limited in terms of the aspects of contract sustainability, and none has reviewed them using the LRM paradigm.Research limitations/implicationsGiven the fact that this pandemic is still ongoing and uncertain, the extent to which the broadening of the interpretation of FM in the contract by the parties and how much the designs offered above can help the parties, will greatly depend on the commitment of the parties. However, if the orientation is to maintain a long-term business relationship, it still fulfills the essence of a win–win solution that will greatly assist the parties in determining the continuity of the contract.Practical implicationsThe results of this study are expected to provide benefit to the parties in an agreement affected by the COVID-19 outbreak and by regulators who wish to provide a legal basis in contract law.Social implicationsLong-term business relationships will create sound, peaceful and conducive environment for modern business. This kind of situation will sustain the business as expected.Originality/valueThis study concludes that the interpretation of FM can be extended to accommodate the interests of the parties to the contract by considering several principles in contract law and other relevant clauses. In addition, this study also produced four essential designs for LRM oriented to long-term business relationships in a win–win solution.

Taking care of a highly valuable resource throughout the value chain - Lack of market orientation in red king crab export?

PurposeThe main purpose of this research is to reveal whether the valuable Norwegian red king crab industry handles the resource appropriately throughout the value chain, securing both companies' long-term profit and environmental sustainability. The question is also asked whether todays’ management system for king crab in Norway is beneficial for attaining optimal quality. Design/methodology/approachThe explorative study involves in-depth interviews with members along the entire value chain of Norwegian companies exporting live king crab to South Korea, including the South Korean buyers. FindingsThe results reveal that the resource is not optimally handled due to lack of market orientation and the sellers have several misperceptions of their own behavior and of the buyers’ satisfaction with their behavior. The disparities are explained by examining the complexity of the market orientation for small, nature-based value chains in the context of cross-cultural trading. Research limitationsContext limited to the Norwegian Seafood industry and South Korean buyers. Still, the results and explanations are relevant for much cross-cultural businesses, at least for smaller companies with limited resources. Practical implicationsAwareness of cultural differences and sensitivity to the effect it may have on cross-cultural buyer-seller relationships will have strong practical implications on achieving long-term business relationships across cultures.