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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).

Purpose– The purpose of this paper is to investigate how buyers and sellers in cross-cultural business relationships manage cultural differences to ensure functional, successful business relationships. Failure to consider specific cultural issues may lead to the failure of business ventures crossing national borders. To succeed in today’s global business market, it is critically important to understand and manage cultural differences. Adapting to each other’s cultures is one way of managing cultural differences between business actors.Design/methodology/approach– A qualitative, explorative approach examining both sides of the exchange dyad was adopted to obtain insight into adaptation as perceived by both buyer and seller.Findings– The results of this study indicate that mainly Norwegian sellers adapt to the Russian culture and way of conducting business. This is explained by power asymmetry between partners, as well as cultural barriers and lack of cultural sensitivity from the Norwegian partners. Still, the business relationships function well.Practical implications– Knowledge of and applying strategies for managing cultural differences should be helpful for business managers engaged or planning to engage in business ventures with Russia and Norway – especially those doing so for the first time.Originality/value– The study provides new and important information about West-East business relationships and how to manage cultural differences in cross-cultural business relationships. The study shows that business relationships can function well in spite of the absence of some factors previously found to have detrimental effects on these relationships. In addition, the study investigates both sides of the buyer-seller dyad, which is a limitation in previous studies of adaptation.

Purpose This paper aims to discover the key elements for generating and protecting innovations based on the customer-supplier relationship in industrial sectors. Design/methodology/approach This exploratory qualitative study was performed using semi-structured interviews with chief executive officers and innovation managers of 22 industrial firms and institutions from the machine-tool industry. Findings Key forms of knowledge must be shared by the two agents. Producers have to obtain in-depth knowledge about customers’ needs and customers need knowledge on producer’s absorptive capacity. Producers distinguish between three types of customers: reference customers, necessary for innovations with greatest scope, clientes amigos or test users, required to test innovations currently being developed, and traditional customers, associated with incremental innovations. The traditional means of protecting innovations is a detailed contract between customer and supplier; and patents are used for innovations of greater technological scope, as a form of defense against third-party patents and as a signaling element of absorptive capacity. Originality/value The paper draws on the direct experience of executives from companies whose innovation is based on a close relationship with customers to answer questions to which the literature has yet to provide definitive answers: What sort of information to be shared is relevant for the generation of innovations? Are all customers equal or are there profiles that contribute more effectively to the development of innovations? What attitude and mechanisms are most effective for protecting the knowledge and competitiveness generated through knowledge sharing?

PurposeThe purpose of this paper is to illustrate the practical application of dynamic capabilities theory to improve investment decisions in customer relationship management (CRM).Design/methodology/approachAction research (AR) allows managers to raise the tacit knowledge of their dynamic capabilities to a level where they can be identified and developed. A framework and a process for managing dynamic capabilities in marketing are presented.FindingsThe findings relate to the nature of dynamic capabilities in marketing and how they are managed.Practical implicationsMarketing managers can improve the return on investments in CRM.Originality/valueThe paper presents a method for applying dynamic capabilities drawn from the resource‐based view (RBV) to practical marketing problems.

PurposeChinese agri‐food chains consist of the millions of small scale farmers, who are not well structured and organized in the supply chain. Owing to market liberalization and globalization, one of the most challenging issues along agri‐food chains in China is becoming the issue of how to link these small‐scale farmers into the modern chains. Consequently, it is essential for both policy makers and private sectors to understand the governance structure in agri‐food supply chains. Therefore, the purpose of this paper is to develop a theoretical framework for supply chain governance, including its antecedents and consequences, as well as a series of hypotheses for empirical testing.Design/methodology/approachA conceptual framework of chain governance is proposed in this study, where governance structure consists of two dimensions: contractual governance and relational governance. The study intends to propose a complementary relationship between contracts and relational aspects, such as trust, in the Chinese context. Future research is needed to empirically test this model.FindingsThe proposed conceptual model is unique, since the majority of the articles addressing this topic focuses on contract farming while limited research touches upon the issues of trust and relations. However, a combination of both contracting and relationships are seldom addressed.Originality/valueThis paper evaluates a novel concept of two dimensional governance structure in the agri‐food supply chain, where transaction cost economics theory and relational theory are combined to study the governance relationships between small scale producers in China and their buyers.

Purpose: In successful purchasing relationships, effective communication is a key factor. The purpose of this paper is to explore whether the choice of communication media is affected by different stages in the relationship development process and by different purchasing contexts: product and service purchasing. Design/methodology/approach: The study initially reviews the literature on inter-organizational communication and purchasing relationships. In order to explore the research question, data were gathered through semi-structured in-depth interviews with purchasing managers, buyers and their suppliers in three product and three service purchasing relationships. Findings: The study identifies a relationship development framework that influences the communication media selection in two purchasing contexts. It confirms that communication media selection is affected by the communication needs of the participants, the stage of relationship development, and the purchasing context. Research limitations/implications: This research was limited to six buyer/supplier relationships involving a single multinational buyer organization, so although a range of purchasing contexts was considered, the findings have limited application. The relationship development process and the incidence of media selection should be further examined in varied contexts and a survey of buyers and suppliers should test the framework. Originality/value: This study is a refinement of the existing predominantly single-respondent, survey-based studies in the literature in that both parties in a series of purchasing dyads were interviewed. The paper makes a contribution as it illustrates the application of the media richness theory, explores the contextual factors surrounding media selection and provides a buyer-supplier relationship development framework based on behavioural and functional aspects of the relationship..

PurposeEstablished models of buyer‐seller relationships do not reflect managerial emphasis on supplier performance evaluation when modelling business relationships. Proposes that relationship value should be included as a key constituent in such models. Aims to explore the construct's links with key constituents of relationship quality, i.e. commitment, satisfaction, and trust.Design/methodology/approachA two‐stage research design was used. First, depth‐interviews were conducted with ten senior‐level purchasing managers in US manufacturing companies. Second, data were gathered in a nation‐wide mail survey among 400 purchasing professionals.FindingsThe findings suggest that relationship value is an antecedent to relationship quality and behavioural outcomes in the nomological network of relationship marketing. Value displays a stronger impact on satisfaction than on commitment and trust. Value also directly impacts a customer's intention to expand business with a supplier. In turn, its impact on the propensity to leave a relationship is mediated by relationship quality. Contrary to previous research, trust does not appear in this study as an antecedent of behavioural outcomes, but as a mediator of the satisfaction‐commitment link.Research limitations/implicationsConfirms the role of value as a key relationship building‐block. Researchers should integrate this cognitive performance‐based construct in models of business relationships. Limitations and research directions refer to the sampling procedure, the need to include the supplier's value perceptions, the possibility of conducting longitudinal research, and the opportunity to assess additional moderating variables.Practical implicationsWhen the goal is to increase business with an existing customer, managers should focus on relationship value. In turn, when managers are concerned with the risk of customers leaving a relationship, they should focus on relationship quality. Trust appears as an important ingredient in stabilising existing business relationships.Originality/valueStresses the pivotal role of relationship value in marketing. Contributes to a better fit between relationship marketing models and managerial practice in business markets.

PurposeEffective management of suppliers is one of the ways manufacturing companies can improve their performance. Typically, it has been argued in the literature that close relationships with suppliers should be developed, in contrast to the traditional price‐driven transactional relationships. However, there has been relatively little empirical research on how supplier management is applied.Design/methodology/approachThis paper presents research probing how manufacturers manage their suppliers and takes a sample from Germany – which has a large manufacturing sector. In‐depth interviews with purchasing managers were used to understand whether relationships with suppliers were being utilised.FindingsThe analysis of the data indicates that a significant portion of the companies surveyed had experienced a change in their relationship with suppliers in the last few years. In the main, relationships had become closer and the use of partnerships was in evidence.Practical implicationsThe research results have implications for German manufacturing companies, as they indicate the potential for improving performance through the greater adoption of best practices in the area of supplier management. The research results indicate the need for German manufacturers to adopt leading‐edge practices in the area of supplier management.Originality/valueAlthough exploratory in nature, the investigation demonstrated the need for researchers to better understand the range of relationships in a typical manufacturer's supplier base.

PurposeThis paper explores what suppliers and customers do in order to integrate their operations across the supply chain. It also identifies on what contextual factors these specific CSI practices are contingent.Design/methodology/approachThe paper uses the multiple case study methodology as a basis for theory formulation. Insights from nine cases of OEM‐supplier relationships in the Italian high precision air conditioning industry are used to address the research questions and formulate theoretical propositions.FindingsThe paper develops four theoretical propositions derived from a framework that identifies four CSI forms contingent on two contextual variables – the value impact of goods purchased from each supplier and the degree of purchasing goods customization.Research limitations/implicationsThis paper provides a framework that advances the understanding of effective supplier relations management in two ways. Firstly, it gets over the traditional dichotomy between arm's length relationships and strategic partnerships by identifying a more articulated typology of CSI forms. Secondly, it characterizes each of the four CSI forms in terms of the practices buyers and suppliers apply to manage four key business processes.Practical implicationsThe paper provides a template to configure integration in customer‐supplier relations and suggests the different mix of integrative practices business partners should use in diverse supply chain environments.Originality/valueThe proposed framework improves existing theory that either considers one single aspect of customer‐supplier relations (i.e. pricing, logistics, or new product development) or interprets interfirm collaboration as a single dimension phenomenon.