A value perspective on relationship portfolios

Abstract

As portfolio models have evolved in the area of business marketing scholars have turned their attention from traditional product-based and transaction-oriented portfolios to portfolios based on business relationship considerations. However, the conceptualization of relationship portfolios has remained vague, and the applications of these analyses in business practice are quite limited. In a parallel stream of studies, the Industrial Network Approach (INA) has increasingly explored the concept of relationship value and highlighted the need to take into consideration the interdependent and dynamic features of business relationships as well as the phenomenological and situational nature of value perceptions. Although judgements in terms of relationship value applied to a set of business relationships are foundations of portfolio investment decisions, the connection between the two streams of research has not yet been explored in depth. This study introduces five critical elements of relationship value stemming from INA that have important consequences for business relationship portfolio management. Developing the concept of Relationship Value Portfolio provides the foundation for a discussion about the need to integrate the two fields of research-namely, relationship value and relationship portfolios-into a more grounded conceptual framework. This framework allows for propositions to be developed, which contribute to enriching the theoretical debate on both streams while offering important implications for managerial practice.

Actions for relationship value: a mission impossible?

“…Despite a growing academic interest in value from a relational point of view (Anderson and Narus, 1998;Baxter and Matear, 2004;Corsaro et al, 2012;Corsaro et al, 2013;Corsaro, 2014;Henneberg et al, 2009;Lindgreen, 2012;Möller, 2006;Ulaga and Eggert, 2005;Walter et al, 2001;Wilson and Jantrania, 1994), few have explicitly studied the challenge of acting upon value perceptions in a business relationship. Scholars advocate more knowledge and empirical studies on how perception of value guides companies' actions in relationships and the interconnectedness of relationship outcomes (Corsaro and Snehota, 2010).…”

Customer portfolios – challenges of internal and external alignment

“…The change and alignment of customer portfolio models has rarely been dealt with in academic literature (Terho & Halinen, 2007). This problem is reinforced by the vague conceptualization of relationship portfolios, with only limited relevance for managerial practice (Corsaro, Fiocca, Henneberg & Tunisini, 2013). Key Account management (KAM) is the process most often related to implementation of customer portfolios (Salle, Cova & Pardo, 2000;Zolkiewski & Turnbull, 2001) and within which alignment has been identified as being a key issue (Pardo, Ivens & Wilson, 2014).…”

Driving shareholder value with customer asset management: Moving beyond customer lifetime value

“…In this respect, the conclusions of the present study build a bridge to the relationship portfolio literature in industrial marketing and purchasing (see, for example, Corsaro, Fiocca, Henneberg, & Tunisini, 2013;Mitrega & Pfajfar, 2015;Ritter & Andersen, 2014). As yet, the literatures on customer asset management and relationship portfolios have developed mostly separately from each other.…”