Digital love – inviting doubt into the relationship: the duality of digitalization effects on business relationships

Abstract

Purpose

This study aims to hypothesize that the implementation of information technology (IT) in industrial business relationships entails both positive and negative effects for the relationship’s continuation. The purpose is to study the digitalization of business relationships with a focus on effects on commitment in context with uncertainty and cooperation.

Design/methodology/approach

Hypotheses are tested with data from 353 customer relationships in the industrial market. The model suggests the impact of IT on business relationship commitment.

Findings

The results show that IT use in industrial relationships has a direct impact on commitment, as well as an indirect effect via uncertainty and cooperation, which both can increase as a result of IT use. When IT use increases uncertainty, it negatively impacts commitment, and when it increases cooperation, the effect on commitment is positive.

Research limitations/implications

IT use in industrial relationships has a direct impact on commitment, as well as an indirect effect via uncertainty and cooperation, which both can increase as a result of IT use. When IT use increases uncertainty, it negatively impacts commitment, and when it increases cooperation, the effect on commitment is positive.

Practical implications

Awareness of the effect of IT use and the factors involved entails working with cooperative activities to counteract the negative impact there may be if the IT leads to increased uncertainty. Companies need to have knowledge regarding the effect of IT use in each of their business relationships to manage them according to their given situation.

Originality/value

This study contributes to industrial marketing by demonstrating that digitalization can increase uncertainty and cooperation (differently), and they have different effects on commitment, thus that there is a “bright,” as well as “dark” side to it, evident in the business relationship dynamics.

Citation

Hadjikhani, A.I. and Lindh, C. (2021), "Digital love – inviting doubt into the relationship: the duality of digitalization effects on business relationships", Journal of Business & Industrial Marketing, Vol. 36 No. 10, pp. 1729-1739. https://doi.org/10.1108/JBIM-05-2020-0227