Business Relationship Resroration After Severe Norm Violation Episodes.

Abstract

Relational norms provide behavioural guidelines for individual actors interacting in business relationships. Frequently, norms are violated and the involved actors initiate a normalization process to restore exchange order. However, in rare instances violations occur with a severity where the exchange cannot be normalized by the means available in the interpersonal relationship. Furthermore, dissolution is not an option due to high perceived dependence. In this paper, we report on an investigation of three such severe norm violation episodes. We identify the violated norm sets and violating behaviours of core actors along with emotional reactions and effects on the business exchange. In addition, we map the processes of violation and normalization. We find evidence of serial norm violations, causing the interpersonal relationship to enter a state of suspension. Furthermore, cross case analysis shows that exchange was normalised through an organizational level process of alternative actor channel activation and executive intervention

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