Modelling relationship quality across organizational cultures : an empirical investigation within the logistics outsourcing industry

Relationship quality is the cornerstone of relationship marketing. However, conceptualizations of relationship quality vary across studies indicating the absence of a general consensus. Consistent with the definition of Hennig-Thurau et al. (2002, p. 234), relationship quality most often refers to ―a metaconstruct composed of several key components reflecting the overall nature of relationships between companies and consumers‖. However, ―the only area of convergence is three major dimensions of RQ [relationship quality] (trust, commitment and satisfaction)‖ (Athanasopoulou, 2009, p. 603). This assumption is at odds with a growing body of research which calls to ―expand the constructs and determine which aspects or dimensions should be included to obtain a multifaceted view of relational exchanges‖ (Palmatier et al., 2006, p. 152). Moreover, there is a consensus that culture affects business relationships. Yet, to date, both the phenomena are under-researched. Owing to the fragmented insights into relationship quality and its links with organizational culture, calls for future research gather momentum each day. This thesis forwards a study of relationship quality across organizational cultures. Consequently, the objective of the current study is to conceptualize rival models by amalgamating extant literature stemming from diverse theories in order to empirically corroborate (1) the dimensions of relationship quality, (2) the structural relationships between them and (3) the effects of organizational culture on relationship quality. In doing so, the current study constitutes the first attempt to evaluate the direct and moderating effects of organizational culture on relationship quality in a holistic manner. Extensive synthesis of extant literature stemming from different theories reveals six dimensions of relationship quality: loyalty, reciprocity, co-operation, communication, trust and opportunism. Further synthesis of the literature identifies five dimensions or organizational culture relevant to relationship quality: individualism and collectivism, human orientation, power distance, assertiveness and uncertainty avoidance. Owing to the absence of a general consensus, two competing models of relationship quality are conceptualized. A web-based survey was employed to collect data within the logistics outsourcing industry in the United Kingdom. This process resulted in two hundred and sixty six usable responses. Subsequently, structural equation modelling was employed to test the hypotheses of interest. The findings demonstrate that the construct of relationship quality comprises five dimensions: action loyalty, reciprocity, co-operation, trust and opportunism. Moreover, four dimensions of organizational culture appear to have effects on relationship quality: individualism and collectivism, human orientation, power distance and assertiveness. The findings result in numerous theoretical contributions and practical implications

Effect of Digital Enablement of Business-to-Business Exchange on Customer Outcomes: The Role of Information Systems Quality and Relationship Characteristics

This study extends our understanding of how information systems impact business value creation by examining the effect of digital enablement of business-to-business exchange on customer outcomes. We shed light on the connection between information technology investment and firm performance by focusing on how information technology is used (Devaraj and Kohli 2003) in an industrial services context and by highlighting the importance of indirect effects (Mittal and Nault 2009). A conceptual model is developed that combines a customer centric perspective (Sheth et al. 2000) with elements from the information systems success framework (DeLone and McLean 1992, DeLone and McLean 2003). Mediating factors are identified in the chain of effects from information technology specific business-to-business service quality characteristics to customer outcomes. In addition, we consider two contextual factors, relationship duration and customer dependence, which are known to alter the nature of buyer-supplier relationships but which have received little attention in research on digital enablement of business-to-business exchange. An empirical test of hypothesized relationships was performed using subjective and objective archival data from business-to-business exchange relationships for a logistics services vendor. All expected main effects were confirmed. Customer satisfaction was found to be a significant mediator in the chain of effects from information technology specific business-to-business service quality characteristics to customer outcomes. In addition, logistics service quality was found to mediate the relationships between system quality and customer satisfaction and between information quality and customer satisfaction. The hypothesized moderating effects, however, were not found to be significant. Robustness of the findings was confirmed by testing model hypotheses using data from exchange relationships with customers in two different industries, manufacturing and wholesale trade. Differences in analysis results are consistent with industry differences. This study contributes to the literatures on interorganizational information systems (Rai et al. 2006) and information technology business value (Melville et al. 2004) by identifying mediating mechanisms in the chain of effects from digital enablement of exchange to customer outcomes. Explication of mediating mechanisms improves our understanding about the indirect nature of impacts from information technology. This study also contributes to the literature on information systems by extending DeLone and McLean\u27s (2003) model of information systems success to the context of business-to-business exchange relationships. In addition, this study contributes to the literature on services marketing (Zeithaml and Bitner 2003, Berry and Parasuraman 1993) by showing how system quality and information quality impact logistics service quality and customer satisfaction in a business-to-business exchange context

How does servitization impact inter-organisational structure and relationships of a truck manufacturer's network?

© Cranfield University 2013. All rights reserved. No part of this publication may be reproduced without the written permission of the copyright owner.Network relationships play a significant role in the provision of servitized offerings. To date, little empirical research has been conducted to investigate the link between servitization and inter-organisational relationships. The objective of this doctoral thesis is to explore the implications of servitization on a manufacturer’s network. Particular emphasis is placed on the impact on the network structure and relationship attributes. An exploratory in-depth case study was conducted within the truck manufacturing industry using a multi-organisational perspective. An abductive research approach was adopted which was underlined by pragmatism. As part of this approach, 43 interviews were conducted in a total of 11 companies. The findings of the study suggest that managers need to be aware of the different customer needs, related offerings and resultant implications on the network structure and relationships. To this end, the findings show that as the offerings move towards advanced servitized offerings the network becomes more complex in terms of its structure and relationships. The research contributes to the literature by providing a more nuanced description of what actually occurs in a network when a manufacturer provides servitized offerings in conjunction with other product-based offerings. In particular, it identifies the relationship attributes that need to be managed in order to drive the right behaviour for the provision of each of these offerings. Moreover, it is the first known study to uncover triadic as well as tetradic network structures in a servitization context. Equally important, it provides a framework that captures the interplay between the different offerings and the resultant network structure and relationship attributes. In all of these capacities, this research is one of the first known studies to uncover some of the complexities surrounding the way in which inter-organisational relationships are enacted in a servitization context

The Management of Strategic Alliances - Performance Impact Factors and Alliance Management Capabilities in the Context of Logistics Alliances

The proliferation of logistics alliances has continued to grow, due to ongoing deregulation, globalization, increasingly demanding customers, and the constant pressure for efficiency improvements in logistics operations. Logistics alliances are voluntary and long-term agreements in which two or more independent supply chain entities render logistics activities together to achieve strategic goals for mutual competitive advantages. Partnering firms strive for revenue and/or costs gains, service improvements and better market positions through resource, information, and risk sharing among them. Every second Logistics Service Provider (LSP) already engages in a logistics partnership (either vertical or horizontal). The majority of German LSP (about 60%) cooperates with at least one competitor. Despite this proliferation of logistics alliances, about 70 per cent of logistics alliances have difficulties in meeting partners’ expectations and may even be considered failures. While scholars have spent considerable efforts over the last decades studying logistics alliances, major gaps remain in our understanding and explanation of logistics alliances and their evolution (both success and failure). Given the wide acknowledgement and increasing importance of logistics alliances on the one hand, but their well-established diagnosis of high failure rate on the other hand, this thesis identified four central research questions: (1) What are performance impact factors of logistics alliances? (2) Why are some firms more successful in their logistics alliances than others? And how may specific logistics alliance management capabilities explain these differences? (3) What are reasons for logistics alliance failure? And how can firms prevent failure and improve logistics alliance performance? (4) What are logistics-specific alliance management capabilities? And why are some firms not able to deploy them successfully? To answer the identified research questions, the aim of this thesis is to identify and explain logistics-specific (1) alliance performance impact factors, (2) alliance management capabilities, (3) reasons for alliance failure, and (4) barriers for the deployment of logistics alliance management capabilities. Thereby, the thesis wants to elaborate the current understanding and explanation of logistics alliances, and to help firms to prevent logistics alliance failure and to improve logistics alliance performance. Accordingly, the thesis builds on four independent research studies. Each of these four independent research studies provides a comprehensive account of logistics alliances. Thereby, this thesis adds to our understanding and explanation of logistics alliances and their performance. More specifically, it contributes to the logistics alliances scholarship in three ways: (1) Explanation of performance impact factors of logistics alliances (2) Introduction of new theoretical constructs (3) Providing empirical insights. Thereby, the thesis contributes both to the existing logistics alliance scholarship and to practice by helping firms to prevent failure and improve logistics alliance performances

Building Stronger Channel Relationships Through Information Sharing

Does sharing market information help channel partners to buildstronger mutual relationships? Is low initial trust really animpediment for further relationship development by means ofinformation sharing? How do connections with other competingchannel partners affect the relationship building process? Toaddress these questions, we conducted an experimental study.Our findings show that retailer information sharing helps todevelop higher quality supplier relationships. Interestingly,even if the initial level of trust in the retailer is low, therelationship quality substantially improves. In a morecompetitive situation the suppliers respond more favorably tothe retailer?s information-sharing initiative.experimental design;information-sharing;interfirm collaboration;marketing channels

Marketing and sales interface flexibility: a social exchange theory perspective

To be successful in today s turbulent business environment it is very important for a company to exhibit flexibility in its processes, activities and interfaces. Such a flexible approach enables firms to adapt and improvise in order to achieve the best possible outcomes. In spite of there being ample research on how to achieve flexibility in a variety of business process and activities, there remains little understanding on how flexibility in managing the use of resources reveals itself in intra-organisational interfaces. This thesis sheds more light on this issue and investigates flexibility specifically in the relational context of cross-functional interfaces. The importance of developing and investigating flexibility at the cross-functional relational interface is embedded in the recognition that the ability and willingness of departments to adapt and to accommodate deviations from original strategies through their cross-functional working is a critical factor for success. This research investigates flexibility at one such interface that is argued to be essential in achieving organisational success but that is characterised by conflict, lack of cooperation and distrust the Marketing and Sales interface. A literature review incorporating two broad literature streams; i.e., the Marketing and Sales cross-functional relationship literature and the literature on organisational flexibility helped develop a guiding definition of Marketing and Sales Interface Flexibility (MSIF). This definition was subsequently confirmed in the exploratory phase of the thesis, thereby providing a stronger conceptualisation of the MSIF phenomenon. The concept was found to be predicated on social exchange theory s view on the M&S exchange relationship as a dynamic process in which both continuously adapt to each other s needs through modification of their resources required to match those needs. Consequently, a theoretical model was developed. This model argues for an inverted U-shaped relationship between MSIF and business performance. According to this model, beyond certain optimal point MSIF may reduce business performance. Based on the empirical testing of the model via a survey of 229 UK-based business organisations no support was found for the inverted U-shaped relationship between MSIF and customer performance. Results of the empirical testing indicated that MSIF has an inverted U-shaped relationship with a firm s market performance. These results imply that a firm s market success is secured at lower levels of MSIF whereas further increases in investments in MSIF may, at some point, become detrimental to an organisation s market performance (i.e., market share and sales volume). Therefore, the findings suggest that managers should manage MSIF wisely, hold themselves from over-investing in MSIF and seek to find the optimal level which will provide the best market performance. On the other hand, MSIF was found to have a linear, positive relationship to customer performance indicating that higher levels of MSIF will secure more a satisfied and loyal customer base. The study also incorporates the contingency theory perspective and hypothesises the moderating effect of market dynamism on the MSIF - performance relationship. The results indicate that the value of MSIF for generating market performance decreases as technological turbulence in the market increases. Based on the social exchange theory the relationship between four socially constructed antecedents and MSIF are proposed. The findings highlight the positive impact of, (1) trust in the Marketing and Sales relationship, and (2) rules and norms of social exchange between Marketing and Sales as reflected in compatible goals and joint rewards on MSIF. However, resource dependence asymmetry is found to be negatively related to MSIF suggesting that a misbalanced resource dependency between the two will hamper MSIF. The theoretical and practical implications of the study findings are subsequently presented along with an acknowledgment of the study s limitations and proposed future research to further explore this important area

Collaboration in Buyer-Supplier Relationships.

This thesis focuses on collaboration in buyer-supplier relationships, with a specific interest for long-term, collaborative relationships that are part of a key supplier program. An extensive literature review of buyer-supplier collaboration is presented, before detailing the longitudinal, dyadic, multiple level, and multiple actor research design. The largest part of the empirical data is formed by 157 interview transcripts. The qualitative analysis of these transcripts is structured by using different types of data displays. The empirical chapters provide three different ways of looking at the development of collaborative buyer-supplier relationships. Furthermore, a dynamic model of relationship evolution has been developed in this thesis. This dynamic perspective advances on earlier work in the field of relationship development and provides insight in the mechanisms underlying the evolution of collaborative relationships.

Learning and Governance in Inter-Firm Relations

This paper connects theory of learning with theory of governance, in the context of inter-firm relations. It recognizes fundamental criticism of transaction cost economics (TCE), but preserves elements from that theory. The theory of governance used incorporates learning and trust. The paper identifies two kinds of relational risk: hold-up and spillover. For the governance of relations, i.e. the control of relational risk, it develops a box of instruments which includes trust, next to instruments derived and adapted from TCE. These instruments are geared to problems that are specific to learning in interaction between firms. They also include additional roles for go-betweens.transaction cost economics;trust;inter-organizational learning