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Dynamic effects of business cycles on business relationships

Dynamic effects of business cycles on business relationships Purpose – The aim of this paper is to identify the effects of business cycles on industrial business‐to‐business relationships within extremely volatile industries. Design/methodology/approach – The paper is an in‐depth case study on Outotec plc, a leading provider of technologies for the mining and metal industries. Findings – The study identifies the changes in a business relationship during a business cycle as the dominance between the parties and the cooperative and the competitive nature of the relationship alternate. Practical implications – The study identifies ways to smooth the effects of business cycles in extremely volatile industries from the viewpoint of a project‐based technology provider. Originality/value – While a significant amount of macroeconomic research on cycles and a few studies on industry‐specific business cycles can be found, this study is a rare example of company‐specific research on surviving business cycles. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Decision Emerald Publishing

Dynamic effects of business cycles on business relationships

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Publisher
Emerald Publishing
Copyright
Copyright © 2012 Emerald Group Publishing Limited. All rights reserved.
ISSN
0025-1747
DOI
10.1108/00251741211203579
Publisher site
See Article on Publisher Site

Abstract

Purpose – The aim of this paper is to identify the effects of business cycles on industrial business‐to‐business relationships within extremely volatile industries. Design/methodology/approach – The paper is an in‐depth case study on Outotec plc, a leading provider of technologies for the mining and metal industries. Findings – The study identifies the changes in a business relationship during a business cycle as the dominance between the parties and the cooperative and the competitive nature of the relationship alternate. Practical implications – The study identifies ways to smooth the effects of business cycles in extremely volatile industries from the viewpoint of a project‐based technology provider. Originality/value – While a significant amount of macroeconomic research on cycles and a few studies on industry‐specific business cycles can be found, this study is a rare example of company‐specific research on surviving business cycles.

Journal

Management DecisionEmerald Publishing

Published: Mar 2, 2012

Keywords: Business cycles; Project business; Relationship management; Volatile business environment; Business‐to‐business marketing

References