Testing a theoretically constructed relationship management capability

Purpose – The purpose of this paper is to test a theoretically derived representation of a relationship management capability. The relationship management capability architecture developed from the literature integrated theory on dynamic capabilities, the resource-advantage theory of competition, and prior capability research in innovation and information technology management. Design/methodology/approach – The second-order constructs of relationship infrastructure, relationship learning and relationship behaviour argues to represent a relationship management capability (RMC) was assigned measures adapted from the literature, and pilot tested with industry consultants. The final questionnaire was sent to senior executives responsible for customer relationship management in manufacturing and business service firms in the UK. The structural model representing the RMC was shown to be robust with a comparative fit index of 0.91. Findings – Although the low response rate and the subjectiveness of respondents encourage caution in interpreting the research findings, the results suggest that relationship management systems, implemented through collaborative and flexible behaviours, and renewed through adaptive and generative knowledge derived from experience and challenging current relationship management assumptions, are key dimensions of a RMC. Originality/value – This framework advances and tests a new theoretical perspective of a relationship management capability that incorporates a capacity for renewal. In addition, it provides managers with a tool to evaluate their organisation’s relationship management capability at key stakeholder interfaces on attributes that define relationship infrastructure, relationship learning and relationship behaviour, as this capability is renewed over time

Testing a theoretically constructed relationship management capability

Purpose – The purpose of this paper is to test a theoretically derived representation of a relationship management capability. The relationship management capability architecture developed from the literature integrated theory on dynamic capabilities, the resource-advantage theory of competition, and prior capability research in innovation and information technology management. Design/methodology/approach – The second-order constructs of relationship infrastructure, relationship learning and relationship behaviour argues to represent a relationship management capability (RMC) was assigned measures adapted from the literature, and pilot tested with industry consultants. The final questionnaire was sent to senior executives responsible for customer relationship management in manufacturing and business service firms in the UK. The structural model representing the RMC was shown to be robust with a comparative fit index of 0.91. Findings – Although the low response rate and the subjectiveness of respondents encourage caution in interpreting the research findings, the results suggest that relationship management systems, implemented through collaborative and flexible behaviours, and renewed through adaptive and generative knowledge derived from experience and challenging current relationship management assumptions, are key dimensions of a RMC. Originality/value – This framework advances and tests a new theoretical perspective of a relationship management capability that incorporates a capacity for renewal. In addition, it provides managers with a tool to evaluate their organisation’s relationship management capability at key stakeholder interfaces on attributes that define relationship infrastructure, relationship learning and relationship behaviour, as this capability is renewed over time

Organizational preconditions supporting relationship management capability renewal

The Resource-Advantage Theory of Competition established that comparative advantage is a consequence of an organization's capacity to renew critical resources such as an organization's relationship management capability. To date, only limited research has been undertaken on organizational preconditions that support capability renewal. A survey was mailed to senior executives of 1500 manufacturing and service firms in the UK. The structural model representing the hypothesized relationships between a learning orientation, learning structures and relationship management capability renewal was shown to be robust with a Comparative Fit Index of 0.90. This research has established that structural dimensions important to facilitating learning about relationship management systems, processes and behavior include collectivist structures and the ability of employees to cross functional and hierarchical boundaries to access knowledge. These structural dimensions were shown to mediate the relationship between an organization's learning culture and its relationship management learning capability, subsequently stimulating relationship management change and facilitating relationship management capability renewal

How does relationship management infrastructure influence performance?

The contribution of Relationship Management Infrastructure (RMI) to positional advantage, customer, market and financial performance was tested in major, organisational customer relationships through structural equation modelling. The results support a direct, significant contribution of RMI to positional advantage, however the anticipated direct contribution of RMI to financial performance resulting from efficient and productive relationship infrastructure was not supported. The contribution of RMI to the variance in customer, market and financial performance was indirect. Explanations of these findings are proposed

The complexity of trust in business collaborations

Research on trust in business collaborations is generally founded on the premises that: a) cognitive trust is initially defined within contractual procedures; b) positive experiences lead to adjustments in contractual and/or informal arrangements, and c) cognitive trust is eventually supplanted by affective trust. This dynamic, process view of trust fails to capture the impact of trust experiences in external collaborations on trust emergence in a focal collaboration, and the complexity of trust co-evolution as each actor interprets and responds to the other's communication, behaviour and action. A complexity conceptualisation of trust as a self-organising, adaptive phenomenon can help us better understand the way trust develops. Through engaging with complexity theories as metaphors to enrich trust theory, trust is described as 'self-organising' as new cognitive, interpretive schema are evoked, and 'adapting' in response to trust experiences external to the collaboration. A complexity perspective evokes a new field of research questions and rich methodological opportunities

Conceptualising trust in relationships : a service dominant logic, complex systems perspective

Trust has generally been presented in the literature as a phenomenon derived through cognitive and affective processes, and developing within specific, defined stages of a collaborative relationship. This process perspective has been enhanced through viewing relationships as interactions and exhibiting downwards competence trust spirals and trust-building loops. Service Dominant Logic positions value creation as central to ongoing interactivity between customers (individual buyers or client organisations) and providers. Framing trust within this interactivity, we offer a complexity explanation of trust as a self-organising, adaptive phenomenon, self-organising as a consequence of each interaction, and adapting in response to trust experiences and knowledge external to the relationship

Services segmentation and emergent customer behavior : a case study

Traditional approaches to segmentation have been questioned in terms of their economic efficiency, and found to be ineffective in online environments. The research objective was to identify how market segmentation can be reconceptualized to support decision-making in dynamically changing environments, and where engagement with customers occurs both online and off-line. A value-in-use segmentation methodology was developed through a workshop to address segmentation challenges identified through the case study, and tested against forces anticipated to drive future environments. Its feasibility for implementation was interrogated against records of off-line engagement and data streaming into the case organization's warehouse as customers engaged online

Emergent behaviour, triggers of change and customer engagement

To date, there has been little attention given to the fundamental issue of how organisations might approach market segmentation, targeting and positioning in dynamically changing environments. An analysis of interview data and market research and strategy documentation provided by a major participant in the financial services sector revealed previous and current approaches to market segmentation, issues surrounding the strategic application of these traditional approaches, and key risk elements shaping emerging financial services markets. Scenarios capturing these key risk elements were co-produced by researchers and focus group participants, and an approach to customer engagement which captures the dynamic nature of customer behaviour through triggers affecting value-in-use of financial services was tested against those scenarios