TY  - JOUR
AB  - Purpose This paper aims to consider the impact of contractual and normative governance mechanisms on recommendation intent in a context of healthcare and professional lighting where repeat business from a customer is absent. The authors suggest both contractual and normative governance can create recommendation intent, but only when sufficient customer value is created.Design/methodology/approach The authors draw on a combination of survey and archival data from the supplier and customer in the medical equipment and advanced (business) lighting systems industries. The authors analyze the data using seemingly unrelated regression and mediation tests.Findings Contracts and relational norms can increase customer recommendation intent, but only when the supplier creates customer value.Practical implications The paper’s findings suggest that customers of business solutions are more likely to recommend their supplier when contracts are relatively detailed and when buyers and suppliers attempt to craft strong relational norms, despite service solutions being delivered during a relatively short time span.Originality/value The extant research on business solutions has focused on extended relationships between exchange partners with a high likelihood of repeated transactions. The authors demonstrate how to govern relationships in a solutions context where the likelihood of repeat business from the same customer is low using contractual and normative governance.
VL  - 35
IS  - 6
SN  - 0885-8624
DO  - 10.1108/JBIM-02-2019-0085
UR  - https://doi.org/10.1108/JBIM-02-2019-0085
AU  - Mooi Erik
AU  - Kashyap Vishal
AU  - van Aken Marc
PY  - 2020
Y1  - 2020/01/01
TI  - Governance and customer value creation in business solutions
T2  - Journal of Business & Industrial Marketing
PB  - Emerald Publishing Limited
SP  - 1089
EP  - 1098
Y2  - 2024/05/08
ER  -