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Book part
Publication date: 16 August 2014

Anna Kaunonen

Three types of industrial buyer-seller relational process models are available: joining theory, stage theory, and state theory. However, historically, these models have…

Abstract

Three types of industrial buyer-seller relational process models are available: joining theory, stage theory, and state theory. However, historically, these models have developed based on the knowledge and cultural context of the Western world. Several researchers note that national culture may have an impact on international industrial buyer-seller relationships. Including culture in the models is highly important, especially as the business environment is increasingly more global and different countries have different business cultures. The goal of this paper is to define the most suitable industrial buyer-seller relational process models for describing relationships in various contexts. The paper includes a through literature review and a single case study in order to reach this objective. A new state theory model evolved during the research. It consists of two beginning states: searching and starting; four purely middles states: constant/static, decline, growth, and troubled; and a purely end state: termination. The state of dormant/inert is both a middle state and an end state, that is, when the relational actors are not in contact does not mean that the relationship has ended, but instead, for example, new legislation may have been implemented, which requires the actors to evaluate their relationship and its future. A relationship goes through the two beginning states in the order mentioned above, but after that, any state may occur.

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Advances in Business Marketing & Purchasing
Type: Book
ISBN: 978-1-78190-858-7

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Article
Publication date: 1 September 1991

Lisa M. Ellram

The use of a life‐cycle framework is explored as a means ofdescribing the evolution of partnership relationships between industrialbuyers and sellers. Based on case…

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600

Abstract

The use of a life‐cycle framework is explored as a means of describing the evolution of partnership relationships between industrial buyers and sellers. Based on case studies of eight manufacturing firms, industrial buyer‐seller partnerships evolve through four stages: development, commitment, integration and dissolution. In addition to exploring a “traditional” life‐cycle pattern, case studies are used to illustrate and support examples of variations on the traditional partnership life‐cycle pattern. The life‐cycle analogy is useful to both practitioners and theorists in developing, understanding and influencing the patterns which industrial buyer‐seller partnerships may follow.

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International Journal of Physical Distribution & Logistics Management, vol. 21 no. 9
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 1 May 1980

David Ford

Notes buyer‐seller interdependence is crucial to industrial marketing — industrial firms establish buyer‐seller relationships of the close kind and long term. Examines…

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7148

Abstract

Notes buyer‐seller interdependence is crucial to industrial marketing — industrial firms establish buyer‐seller relationships of the close kind and long term. Examines buyer‐seller nature in industrial markets by considering development as a process through time, it is based on ideas from the IMP Project. Analyses the process of establishment and development of relationship over time by considering stages in revolution. Notes also that this process described herein does not argue the inevitability of relationship development. Discusses the pre‐relationship stage: the early stage; the development stage; the long‐term stage; and the final stage with points to debate. Describes how the development of buyer‐seller relationships can be seen as a process in terms of: the increasing experience of the two companies; reduction in their uncertainty and the distance between them; growth of both actual and perceived commitment; formal and informal adaptation to each other and the investments and savings involved. Finally, states it is important to emphasize that companies should examine existing relationships according to the potential and stage of development.

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European Journal of Marketing, vol. 14 no. 5/6
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 1 January 2006

Leonidas C. Leonidou, Dayananda Palihawadana and Marios Theodosiou

Research on the behavioural aspects of buyer‐seller relationships, although sizeable, is too heterogeneous and fragmented to yield complete and conclusive insights as to…

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3593

Abstract

Purpose

Research on the behavioural aspects of buyer‐seller relationships, although sizeable, is too heterogeneous and fragmented to yield complete and conclusive insights as to the inter‐relationships of the basic parameters involved. This article attempts to put together extant knowledge on the subject under an integrated conceptual model comprising ten key behavioural constructs.

Design/methodology/approach

A total of 24 theoretically‐anchored hypotheses are developed, indicating possible positive or negative associations among the constructs of the model. Based on input received from 122 producers of industrial goods, the proposed model is empirically tested using structural equation modelling.

Findings

Of the hypothesized associations examined, 16 were found to be statistically significant and in the right direction, two were significant but in the opposite direction, while the remaining six were not validated. The results confirm most of the findings of previous research on the subject, while some fresh insights on the interrelationships of the constructs used are also revealed.

Research limitations/implications

The results of the study have serious implications for industrial marketers, organizational buyers, management consultants, and business educators, who may use the empirically tested model as a diagnostic and monitoring tool in guiding business relationships in the proper direction.

Originality/value

The article concludes that an integrative approach to studying the behavioural aspects of industrial buyer‐seller relationships can provide a more realistic understanding of the constructs at work, compared with a partial one which may conceal some of the effects of one construct over others and/or show misleading associations among constructs.

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European Journal of Marketing, vol. 40 no. 1/2
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 22 December 2020

Jari Salo, Teck Ming Tan and Hannu Makkonen

The purpose of this paper is to cast light on the nature of the digitalization process that occurs when digital technologies are adopted in buyer–seller relationships.

Abstract

Purpose

The purpose of this paper is to cast light on the nature of the digitalization process that occurs when digital technologies are adopted in buyer–seller relationships.

Design/methodology/approach

The study features a case study from the steel processing industry.

Findings

The present research builds on and extends the interaction approach to the context of buyer–seller relationship digitalization process. The study explicates the interrelated elements of digital infrastructure, digital communication and degree of digitalization of the buyer–seller relationship.

Research limitations/implications

The study aims at theoretical generalization and thus produces conceptual understanding that is to some extent applicable to various contexts. The generalization of the empirical insights to other process-focused industries is to some extent possible. However, further research in versatile empirical contexts is needed to validate the results.

Practical implications

For managers, the study presents a success case of digital technologies use for improving a buyer–seller relationship.

Originality/value

The originality of the present research is in the way it depicts how a buyer–seller relationship is gradually digitalized in successive digital technology adoptions, that is, a virtuous cycle of digitalization, that creates and alters the digital infrastructure and digital communication processes between the buyer and the seller resulting in different outcomes (degrees of digitalization in the buyer–seller relationship).

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Article
Publication date: 1 June 2001

Seppo Leminen

The purpose of this study is to increase understanding of gaps in buyer‐seller relationships. Business relationships are more complex and more dynamic in today’s…

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1277

Abstract

The purpose of this study is to increase understanding of gaps in buyer‐seller relationships. Business relationships are more complex and more dynamic in today’s environment, which itself is more complex, rapidly changing, and dynamic. It can be assumed that when an industry undergoes rapid change a great number of different groups of gaps, such as contextual, economic, informational, legal, planning, procedural, social, and technological, are likely to emerge. The present study provides a new framework and its seven glasses (perspectives of framework), i.e. viewpoints for managers to use for understanding, describing, and analysing gaps in buyer‐seller relationships.

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Management Decision, vol. 39 no. 5
Type: Research Article
ISSN: 0025-1747

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Book part
Publication date: 16 August 2014

Anna Kaunonen

The industrial buyer-seller relational process models from the Eastern and Western worlds have not been combined. The Western world has dominated the development of the…

Abstract

The industrial buyer-seller relational process models from the Eastern and Western worlds have not been combined. The Western world has dominated the development of the models, while there exist only a very limited amount of guanxi development models from the East. This paper is exploratory in nature, focusing on combining the development of these two worlds into one intercultural model. Four case relationships verify the proposed model.

This paper focuses on only one cultural context outside of the West, that is to say, China. In order to justify the model to be completely an intercultural one, research in other cultural contexts is necessary.

Details

Advances in Business Marketing & Purchasing
Type: Book
ISBN: 978-1-78190-858-7

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Article
Publication date: 7 March 2016

Alexandre A. Bachkirov, James Rajasekar and Maithe Paula da Silva

The purpose of this study is to explore the key cultural factors that shape the Arab style of buyer-seller negotiations in the industrial goods sector; formulate…

Abstract

Purpose

The purpose of this study is to explore the key cultural factors that shape the Arab style of buyer-seller negotiations in the industrial goods sector; formulate propositions predicting behaviors of empowered buyers, avoidant buyers and deciders in an expensive industrial purchase situation; and develop a model of communication structure in an industrial buyer firm in the Arabian Gulf. In addition, the study advances propositions concerned with the bargaining style of Arab industrial buyers and the relationships between industrial sales effectiveness and negotiation tactics.

Design/methodology/approach

The study draws on literature in the domains of industrial buying behavior, influence tactics in industrial buyer-seller negotiations and communication in industrial buyer-seller bargaining interactions.

Findings

The more expensive an industrial purchase is the more empowered buyers will tend to anticipate the wishes of and seek the endorsement of powerful stakeholders, the more avoidant buyers will tend not to take responsibility for the purchase and the more decision makers will tend to rely on unwritten and formal rules and consult with influencers, subordinates and peers. Aggressive bargaining is unlikely to be used by Arab industrial buyers, who prefer a problem-solving approach. Sales effectiveness will be higher when industrial vendors incorporate tactics of ingratiation and inspirational appeal to influence Arab industrial buyers.

Originality/value

The study offers a systematic examination of industrial purchasing characteristics through the lens of Arab culture. It synthesizes several literature streams, develops eight original research propositions and proposes a new conceptual model of the communication structure in an industrial buyer firm in the Arabian Gulf.

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Review of International Business and Strategy, vol. 26 no. 1
Type: Research Article
ISSN: 2059-6014

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Article
Publication date: 1 June 1998

Charles C. Nielson

Managers of marketing relationships are advised to get “close” to the customer. Some theoretical models of industrial buyer‐seller relationships incorporate notions such…

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2468

Abstract

Managers of marketing relationships are advised to get “close” to the customer. Some theoretical models of industrial buyer‐seller relationships incorporate notions such as “closeness” and “intimacy”. What does it mean to have a close relationship? Is closeness essential to success in partnering? What is the payoff? This study attempts to address these questions. A concept of “closeness” is defined and tested empirically. A closeness construct is developed and tested for discriminant and convergent validity. The construct is then incorporated into a structural model of successful industrial buyer‐seller relationships and tested for pragmatic validity. The overall model and hypotheses are tested for statistical significance using LISREL VII. The results of the study indicate that the concept of closeness is indeed an important element in the partnering process. The managerial and research implications of these findings are discussed.

Details

European Journal of Marketing, vol. 32 no. 5/6
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 1 May 2005

Bradley R. Barnes

The paper reports on an exploratory study aimed at analysing a series of independent variables derived from international industrial marketing and channel management literature.

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1050

Abstract

Purpose

The paper reports on an exploratory study aimed at analysing a series of independent variables derived from international industrial marketing and channel management literature.

Design/methodology/approach

The respondents represent a number of dyadic business‐to‐business relationships of different duration, and involve firms of different size (multinational enterprise buyers and their corresponding medium sized enterprise suppliers).

Findings

Initial findings support much of the extant literature on relationship marketing, demonstrating that certain aspects of a relationship tend to change over time. In particular, the study revealed that: there is a high degree of optimism associated with dyadic relationships at early stages, and these are characterised by both parties having high initial perceptions of the relationship; in mid‐term relationships some negativity maybe apparent, where certain aspects regress; and in long‐term situations, there is a tendency for relationships to be well structured, and these are particularly highly perceived among both exchange parties.

Research limitations/implications

The research approach shares those benefits as well as limitations associated with earlier empirical investigations. That is a trade‐off in favour of undertaking dyadic exploration, than administering large samples and data sets. As a consequence of the sample size, some caution should be exercised when interpreting these findings.

Practical implications

Firms need to pay particular attention to relationships of differing time duration. This is because specific aspects of relationships may not develop in a uniform direction.

Originality/value

The research attempts to unravel the complexities and difficulties associated with obtaining data of a dyadic perspective for a significant number of relationships of different length. Such studies that map the evolvement of buyer‐seller relations over time are rare.

Details

European Journal of Marketing, vol. 39 no. 5/6
Type: Research Article
ISSN: 0309-0566

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