Impact of digital technology on velocity of B2B buyer-supplier relationship development

Abstract

Purpose

This study aims to examine how the widespread adoption of digital technology (DT) in business-to-business (B2B) markets affects and, in particular, increases the velocity of relationship development over time.

Design/methodology/approach

A literature search was conducted to develop propositions concerning DT’s effect on the various stages of an existing B2B buyer-seller relationship development model. A group of 55 experienced practitioners was used to obtain reactions to the propositions.

Findings

DT affects buyer-seller relationship development by reducing the time needed to initiate and advance through sequential relationship stages. Agility in the decision-making process fosters stronger inter-firm relationships and influences other important attributes of B2B relationships, such as organizational commitment, organizational embeddedness, trust and value creation.

Research limitations/implications

A broader, more diverse sample of commercial buyers and sellers is required to permit testing the generalizability of the study’s findings.

Practical implications

DT affects the speed and agility of B2B relationship formation regardless of stage. As DT evolves in the age of Industry 4.0, an understanding of the effects of DT will aid managers in assessing ways to leverage its potential and apply appropriate DT strategies throughout the B2B relationship process to capitalize on current and future business opportunities. Firms need to explore the positive and negative effects of the digital revolution on managers within their supply chain networks.

Originality/value

To the best of the authors’ knowledge, this is the first study that specifically addresses DT’s impact during the specific stages of the relationship development process.

Citation

Kauffman, R. and Pointer, L. (2022), "Impact of digital technology on velocity of B2B buyer-supplier relationship development", Journal of Business & Industrial Marketing, Vol. 37 No. 7, pp. 1515-1529. https://doi.org/10.1108/JBIM-07-2020-0326