Friends or strangers? Attempts at reactivating buyer–supplier relationships

Abstract

Purpose The purpose of this paper is to explore an important management aspect of business relationship dynamics, namely, the reactivation process of previously ended buyer–supplier relationships. Design/methodology/approach A processual case study approach focusing on a single in-depth case has been used. The case is based on longitudinal data from a number of sources concerning one reactivation failure. Findings Grounded in previous research and based on this study’s case findings, the authors have designed a model of analysis for relationship reactivation processes. Using the model on this study’s particular case, the authors show how the structural properties of network embeddedness and resource ties worked in favor of the process, whereas the social bonds and the lack of them led to mistrust that disturbed the negotiation and, hence, worked against the reactivation process. Originality/value This study makes a contribution to the field of relationship dynamics by exploring relationship reactivation processes. The designed model shows how reactivation can be understood as an interplay between structural properties and (re)building activities and contributes new knowledge on factors that affect this process.

Collaboration between supply chain partners: when does it matter? Evidence from collaborative profiles

“…A committed partner regard that the relationship is mutually beneficial and ensures it endures indefinitely (Morgan and Hunt, 1994;Nyaga et al, 2010). Partners involved may develop social bonds, which impact trust and contribute to the formation of social capital (Poblete and Bengtson, 2020). The social capital and social bonds help firms to reactivate the relationship (Poblete and Bengtson, 2020).…”

“…Partners involved may develop social bonds, which impact trust and contribute to the formation of social capital (Poblete and Bengtson, 2020). The social capital and social bonds help firms to reactivate the relationship (Poblete and Bengtson, 2020).…”

Seeds of demand-side legitimacy: when do existing companies procure from B2B startups?

“…Gaining legitimacy by startups is of immense importance in a B2B setting. In a business relationship, both the B2B customer and the startup have to make “important specific investments and adaptations in relation to each other” (Poblete and Bengtson, 2020, p. 178), so much so that investments made by one party are related to another in numerous ways. Not surprising, the issue of legitimacy attracts considerable attention in academia as well as popular media.…”

“…Empirical evidence is consistent with the idea that B2B ventures give adequate consideration to the founders of the startups. About three-fourth of the new suppliers fail to deliver the expected benefits (Poblete and Bengtson, 2020), making it crucial for B2B customers to have confidence in the capabilities of the management team. This argument holds true even from the perspective of the new venture.…”

“…Since most procurements in a B2B context are recurring, the stakes are higher than a typical business-to-consumer (B2C) setting in which customers may easily switch if they do not like the product. Accordingly, B2B relationships develop over time, involving close interactions between both parties (Poblete and Bengtson, 2020). Since startups often result from the intentions and actions of their founders (Shook et al , 2003), it becomes imperative for the customers to carefully evaluate the management team of the new venture.…”