Actions for relationship value: a mission impossible?

Abstract

Purpose The form and content of relationship value dominates the literature. This paper contributes by studying companies’ actions based on their value perceptions, a field which has attracted less attention. Scholars advocate more studies on how companies’ value perceptions shape actions in relationships and how this leads to outcomes. Design/methodology/approach A longitudinal critical case study of a customer/supplier relationship constitutes the empirical basis of the paper. Interviews and observation studies were conducted over a period of three years, giving access to special insight into the actors’ value perceptions and related actions. Findings Value perceptions shape actions performed individually, jointly or in the wider network. Moreover, misperceptions of the counterparty’s value perceptions may result in a maelstrom of interactions with no specific value outcome. Acting based on value perceptions is a complex matter due to its evolving nature, which leads to development becoming a value driver. Research limitations/implications The interdependencies between different value perceptions and their relational value drivers have special effects on actions and outcomes, also, value in actions needs to be studied. Practical implications Management needs to explore value from different perspectives to understand the counterparty’s value perceptions and communicate own perceptions. It is not sufficient to create value based on one value driver. Instead, it is vital to be able to connect value drivers to balance and prioritise relevant actions. Originality/value This paper stands out as one of the first contributions to relationship value literature that addresses and analyses value from both a customer perspective and a supplier perspective in a dyadic business relationship.

Automotive Salespeople Performance: Political Skill, Relationship Building, and Deviance

“…Companies also need to have the ability to consistently analyze customer needs, which is assisted by salespeople's ability to improve good and close relationships with customers. This is supported by previous research Munksgaard & Frandsen, (2019) that has shown that developing customer relationships will lead to higher performance and performance. Therefore, the eighth hypothesis is: H8: Customer-relationship-building competence has a positive effect on sales performance.…”

Symbiotic association of resources and market-facing capabilities in supply chains as determinants of performance: a resource orchestration perspective

“…The core theoretical proposition that we draw as relevant to our study is the synergistic effects from the appropriate alignment and deployment of resources and capabilities that managerial action engenders, especially in supply chain partnership contexts (Liu et al , 2016; Makadok, 2001). Mutual understanding of partnership value and interdependence, and thus actions enabling appropriate resource orchestrations, deliver desired performance outcomes (Maklan and Knox, 2009; Munksgaard and Frandsen, 2019).…”

“…Fourthly, the recent global events have propelled to the fore the need for supply chain capabilities, and research extensions beyond individual firms. Under such operating contexts, customer value creation is “a result of a mutual effort to gather and utilize resources and capabilities in a valuable way” (Munksgaard and Frandsen, 2019, p. 893) among supply chain partners, mitigating intra-firm resource constraints (Ko et al , 2018). Partnerships are foundational in enabling managerial action for optimum performance outcomes through leveraging and configuring cross-firm resources (Luxton et al , 2017).…”

Relationship value in business-to-business markets: a replication and extension of Ulaga and Eggert’s (2006) study

“…There is therefore need for research that reveals the construct's nomological structure along with its outcomes (Ulaga and Eggert, 2006b;Barry and Terry, 2008;Macdonald et al, 2016;Santos et al, 2018). Moreover, because of the subjective nature of the concept of value (Vargo and Lusch, 2008), more research is needed on how value is created over time in business relationships (Munksgaard and Frandsen, 2019). This is particularly important nowadays as customer perceptions and assessment of value drivers can also change by the evolution of the business environment that alter the levels and way of communication and cooperation in business relationships (Salo, 2017).…”