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Article
Publication date: 20 January 2021

Sandra Simas Graça, James M. Barry, Virginie P. Kharé and Yuliya Yurova

This paper aims to explore the effects of institutional environments across developed and emerging markets on buyer–supplier cooperation. It empirically examines a…

Abstract

Purpose

This paper aims to explore the effects of institutional environments across developed and emerging markets on buyer–supplier cooperation. It empirically examines a Business-to-Business relational exchange model of trust-building, commitment and cooperative behaviors within firms in the USA and countries such as Brazil, Russia, India and China (BRIC).

Design/methodology/approach

A conceptual model and accompanying research hypotheses are tested on a sample of buyers from the USA (n = 169), Brazil (n = 110), China (n = 100), Russia (n = 100) and India (n = 100). Structural equation modeling is used to test the relationships in the model.

Findings

Findings suggest that approaches to achieve successful cooperation vary across countries and depend on the interaction between formal and informal institutions present in each country. Results show that buyers from India and China place relatively greater emphasis on conflict resolution and commitment, whereas buyers from Brazil and Russia rely more on trust in their efforts to create cooperative relationships. For US buyers, formality and quality of communication and functional benefits are key factors in fostering trust, commitment and cooperation.

Practical implications

A conceptual framework is advanced that extends traditional westernized and China-only perspectives of relational exchanges to a more universal context. Results suggest that suppliers understand how their buyers’ country-level institutional environment shapes their partnership legitimacy and relational motivations at the transaction level.

Originality/value

To the best of the authors’ knowledge, this study is the first to examine buyer–supplier relational exchanges through the lenses of transaction cost, social exchange and institutional theories using the USA and BRIC nations as proxies for examination of institutional effects.

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Book part
Publication date: 15 August 2019

Sandra S. Graça and James M. Barry

This study investigates the antecedents and outcomes of cognitive trust during the expansion phase in buyer–supplier relationships. It takes a global approach and examines…

Abstract

This study investigates the antecedents and outcomes of cognitive trust during the expansion phase in buyer–supplier relationships. It takes a global approach and examines cultural nuances between developed nation and emerging market firms by including participants from the United States, China, and Brazil. The results demonstrate the importance of trust in building social capital and the central role which trust plays in shaping business relationships in all studied cultural contexts. There are similarities and differences across countries. Results support relationship marketing theory by demonstrating the importance of conflict resolution, communication frequency, and social bond in building buyer–supplier relationships in the United States, which in turn increase cooperation between partners. Results also indicate that in China, social bond plays a much greater role in building trust, which in turn increases cooperation only to the extent that it serves as a mechanism to secure committed relationships. In Brazil, results show that conflict resolution is the most important factor in building trust. It also mediates the relationship between communication frequency and trust, as well as drives cooperation positively. Overall, trust is found to influence exchange of confidential communication and increases commitment between partners in all three countries.

Details

New Insights on Trust in Business-to-Business Relationships
Type: Book
ISBN: 978-1-83867-063-4

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Article
Publication date: 8 January 2019

James M. Barry and Sandra Simas Graca

The purpose of this research is to show how institutional factors affect buyer–supplier relationships. Specifically, the authors examine a model of relationship quality…

Abstract

Purpose

The purpose of this research is to show how institutional factors affect buyer–supplier relationships. Specifically, the authors examine a model of relationship quality and its antecedents across rule-based, relation-based and family-based governance environments.

Design/methodology/approach

A conceptual model and accompanying research hypotheses are tested on data from a survey of 169 US (rule-based), 110 Brazilian (family-based) and 100 Chinese (relation-based) managers and buyers. Structural equation modeling is used to test the relationship quality framework and the hypothesized moderation of governance environment.

Findings

Results suggest that the informal institutions which shape a nation’s governance environment impact the relationship building process between buyers and suppliers. Communication quality was found to influence relationship quality more in developed economies where relationships are protected and managed under rule-based governance. Interaction frequency was found to be more relevant in emerging market firms characterized by relation-based societies. relationship benefits are applied more to relationships in emerging markets operating under family-based governance. No differences were found across governance environments for the influence that conflict resolution has on relationship quality.

Practical implications

Results provide insight into how the fairness and effectiveness of political and economic institutions surrounding a buyer’s nation of operation impact “rules of the game” differently for developed and emerging market firms.

Originality/value

This study extends research on cross-cultural relationship marketing to more than just communications context and cultural heritage. Results demonstrate that a buyer’s quest for legitimacy impacts its sensitivity to what supplier behaviors matter the most.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 6
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 16 January 2017

Sandra Simas Graca, Patricia M. Doney and James M. Barry

The purpose of this paper is to examine the strategic decision-making process regarding communication flows and trust and their impact on firm cooperation in the context…

Abstract

Purpose

The purpose of this paper is to examine the strategic decision-making process regarding communication flows and trust and their impact on firm cooperation in the context of buyer-supplier relationships in rule-based vs relation-based countries. An institutional view is explored to demonstrate how informal institutions shape a firm’s strategic decision making in the internationalization process.

Design/methodology/approach

A conceptual model and accompanying research hypotheses are tested on data from a survey of 169 US and 110 Brazilian buyers. Structural equation modeling is used to test the hypotheses.

Findings

Results suggest that the pattern of flows of communication on building trust and increasing strategic cooperation is based upon the governance of the individual’s country of origin. Quality communication is found to have a greater impact on trust in the USA, while two-way communication is the factor with the greatest effect on trust in Brazil. Frequency of communication and socialization are also found to have indirect, but important distinct roles in the flows of communication in both countries. Trust is also found to be a strong predictor of strategic cooperation.

Practical implications

Results provide insight into what patterns of communication flows are most influential in increasing a buyer’s trust in a supplier, so that suppliers can better formulate strategies to enter overseas markets.

Originality/value

This study extends the communication, trust, and cooperation literature to the context of buyer-supplier relationships in distinct county settings. Comparisons are made between one developed country characterized by rule-based governance, with a low-context style of communication and high country trust and one emerging market characterized by relation-based governance, with a high-context style of communication and low country trust.

Details

International Journal of Emerging Markets, vol. 12 no. 1
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 25 September 2007

Patricia M. Doney, James M. Barry and Russell Abratt

The purpose of this paper is to specify and test factors surrounding trusting relationships between buyers and suppliers in a global, business‐to‐business services…

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Abstract

Purpose

The purpose of this paper is to specify and test factors surrounding trusting relationships between buyers and suppliers in a global, business‐to‐business services context. In so doing, the paper aims to help to extend relationship marketing theories to this under‐researched domain.

Design/methodology/approach

A literature review and results of qualitative interviews in the paper provide a conceptual framework for the trust formation process and relational outcomes of trust. The research then tests a model of hypothesized relationships using structural equation modeling.

Findings

The paper confirms the influence of trust building behaviors (social interaction, open communications, customer orientation) and service outcomes (technical, functional and economic quality) on trust formation. Trust is shown to have a positive influence on key relational outcomes, loyalty commitment and share of purchases.

Research limitations/implications

The sample consists of buyers of aviation component repair services who may be susceptible to idiosyncratic industry pressures. Further, the sample of buyers in 42 countries includes a higher share of buyers from individualist countries.

Practical implications

The study provides managerially relevant (“actionable”) results that may help buyers execute customer retention strategies that lead to higher customer profitability.

Originality/value

This study adds to the limited literature on building trust in B2B services in a global context. The paper seeks to provide a balanced account of the interpersonal and tangible aspects of trust formation.

Details

European Journal of Marketing, vol. 41 no. 9/10
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 3 August 2015

Sandra Simas Graca, James M. Barry and Patricia M. Doney

The purpose of this paper is to explain the impact of relationship capital (trust and commitment) and the exchange climate (communication, conflict resolution and…

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2126

Abstract

Purpose

The purpose of this paper is to explain the impact of relationship capital (trust and commitment) and the exchange climate (communication, conflict resolution and cooperation) on performance satisfaction in the context of buyer–supplier relationships. The study also examines the influence of national culture on the proposed relationships.

Design/methodology/approach

A conceptual model and accompanying research hypotheses are tested on data from a survey of 169 US and 110 Brazilian buyers. Structural equation modeling (AMOS 18.0) is used to test the hypotheses.

Findings

Results suggest that performance satisfaction is highly dependent on the level of relationship capital and climate of information exchange between buyer and supplier. Quality communication and conflict resolution have the greatest impact on performance satisfaction while trust’s influence is both direct and mediated by the exchange climate.

Research limitations/implications

The study is limited to a two-country sample in a business-to-business (B2B) context. Also, this study examines only the impact of socio-psychological behaviors on performance outcomes; economic variables are not considered.

Practical implications

Results provide insight into what behavioral attributes are most influential in increasing a buyer’s satisfaction with a supplier’s performance in distinct countries. Based on the findings, suppliers can better formulate strategies to enter overseas markets.

Originality/value

This study extends the strategic alliance literature on performance-relevant behaviors to the context of buyer–supplier relationships. In addition, the study contributes to the extant literature by including a sample from an emerging market.

Details

Journal of Business & Industrial Marketing, vol. 30 no. 7
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 1 July 1911

[In view of the approaching Conference of the Library Association at Perth, the following note on the Leighton Library may not be inopportune. Dunblane is within an hour's…

Abstract

[In view of the approaching Conference of the Library Association at Perth, the following note on the Leighton Library may not be inopportune. Dunblane is within an hour's railway journey from Perth and has a magnificent cathedral, founded in the twelfth century, which is well worthy of a visit.]

Details

New Library World, vol. 14 no. 1
Type: Research Article
ISSN: 0307-4803

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Article
Publication date: 25 April 2008

James M. Barry, Paul Dion and William Johnson

The purpose of this paper is to specify and test factors surrounding relationship strength between buyers and suppliers in a global, business‐to‐business (B2B) services…

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6366

Abstract

Purpose

The purpose of this paper is to specify and test factors surrounding relationship strength between buyers and suppliers in a global, business‐to‐business (B2B) services context. In so doing, the paper helps extend relationship marketing theories to this under‐researched domain.

Design/methodology/approach

A literature review, along with results of field interviews and surveys, provide a conceptual framework for the relationship strength formation process in the context of multi‐cultures. The research then tests a model of hypothesized relationships using structural equation modeling.

Findings

The paper confirms the influence of perceived value, switching costs and relationship quality (satisfaction, trust and affective commitment) on relationship strength. As predicted, relationship quality mediates the influence that perceived value has on relationship strength. Switching costs further mediate the influence that relationship quality has on relationship strength which, in turn, influences substitution scarcity. No support, however, was offered for the proposed moderating influence that national culture (as measured by a buyer's country masculinity and individualism) has on quality/strength linkages and value/strength linkages.

Research limitations/implications

The sample of buyers in 42 countries includes a higher share of buyers from individualist than collective countries. Consequently, a more balanced cultural sample may have supported the otherwise rejected proposition that culture has a moderating impact on relationship building.

Practical implications

The study provides managerially relevant (“actionable”) results which may help buyers execute customer retention strategies that lead to higher customer profitability.

Originality/value

This study adds to the limited literature on building B2B service relationships in a global context. The paper seeks to provide a balanced account of the social and economic aspects of relationship strength formation.

Details

Journal of Services Marketing, vol. 22 no. 2
Type: Research Article
ISSN: 0887-6045

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Book part
Publication date: 15 August 2019

Houcine Akrout

Trust is a crucial element in business exchanges. Trust has been the subject of considerable research. Most prior studies are insensitive to context studies. However, the…

Abstract

Trust is a crucial element in business exchanges. Trust has been the subject of considerable research. Most prior studies are insensitive to context studies. However, the advent of the extended enterprise with the disintegration of production and innovation processes, the digitalization of interactions, and the increased competition in global markets, among other factors, fundamentally alter the contexts of buyer–supplier relationships. New enriched perspectives and adapted approaches of trust in B-to-B settings are necessary.

This volume addresses new issues showing evidence from advanced, emerging, and developing markets by applying different theoretical and methodological perspectives. The findings lead to identifying consistencies, richness, and distinctiveness of antecedents, processes, and consequences of trust in various B-to-B contexts. It provides suggestions for future research and new levers and guidance for managers to build successful business relationships.

Details

New Insights on Trust in Business-to-Business Relationships
Type: Book
ISBN: 978-1-83867-063-4

Keywords

To view the access options for this content please click here
Book part
Publication date: 15 August 2019

Abstract

Details

New Insights on Trust in Business-to-Business Relationships
Type: Book
ISBN: 978-1-83867-063-4

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