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Relationship development in a multinational utilities network

Relationship development in a multinational utilities network Purpose – The purpose of this paper is to research the development of services business relationships between a global telecommunications provider (the supplier) and the divisions of a multinational utilities company (the buyer), which was undergoing a de‐merger into strategic business units. Design/methodology/approach – The paper is a case study, supported by grounded theory. Findings – The paper finds that the supplier used strategic relationship management, relationship specific investment and adaptation, and service quality, proved during exploratory exchanges, to establish its credibility with divisions of the buyer's network. Purchases were based on four criteria: cost, quality, relationship management and technological capability. Each division of the utility company (the buyers) tested the relationship and service quality credentials of the service provider. The buyers confirmed information from the network on the aptitude and commitment of the suppliers to its clients. Long‐term contracts followed. Research limitations/implications – Research in other service sectors would be useful. Comparative case studies would be of value to provide influencing successful relationship development. Practical implications – The practical implications of the paper are: the long‐term strategic relationship vision; total customer focus; relationship development efforts must be responsive to potential customer needs, purchase strategies and time scales, willingness to assume risk; the demand to establish relationship and service credibility prior to extensive exchange requires relationship specific investments by the supplier; and empowering relationship management staff. Originality/value – There are few studies of relationship development in multinational services businesses in networks, and this research helps to fill this gap. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Services Marketing Emerald Publishing

Relationship development in a multinational utilities network

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Publisher
Emerald Publishing
Copyright
Copyright © 2006 Emerald Group Publishing Limited. All rights reserved.
ISSN
0887-6045
DOI
10.1108/08876040610679945
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to research the development of services business relationships between a global telecommunications provider (the supplier) and the divisions of a multinational utilities company (the buyer), which was undergoing a de‐merger into strategic business units. Design/methodology/approach – The paper is a case study, supported by grounded theory. Findings – The paper finds that the supplier used strategic relationship management, relationship specific investment and adaptation, and service quality, proved during exploratory exchanges, to establish its credibility with divisions of the buyer's network. Purchases were based on four criteria: cost, quality, relationship management and technological capability. Each division of the utility company (the buyers) tested the relationship and service quality credentials of the service provider. The buyers confirmed information from the network on the aptitude and commitment of the suppliers to its clients. Long‐term contracts followed. Research limitations/implications – Research in other service sectors would be useful. Comparative case studies would be of value to provide influencing successful relationship development. Practical implications – The practical implications of the paper are: the long‐term strategic relationship vision; total customer focus; relationship development efforts must be responsive to potential customer needs, purchase strategies and time scales, willingness to assume risk; the demand to establish relationship and service credibility prior to extensive exchange requires relationship specific investments by the supplier; and empowering relationship management staff. Originality/value – There are few studies of relationship development in multinational services businesses in networks, and this research helps to fill this gap.

Journal

Journal of Services MarketingEmerald Publishing

Published: Aug 1, 2006

Keywords: Buyer‐seller relationships; Customer services quality; Networking; Service industries

References

  • Approaches to relationship development processes in inter‐firm networks
    Batonda, G.; Perry, C.
  • Dyadic adaptation in business‐to‐business markets
    Brennan, D.R.; Turnbull, P.W.; Wilson, D.T.
  • Developing buyer‐seller relationships
    Dwyer, F.R.; Schurr, P.H.; Oh, S.
  • International Marketing and Purchasing of Industrial Goods: An Interaction Approach by the IMP Group
  • The problem of time in financial services business markets: a conceptual approach
    Stanley, E.; Tyler, K.
  • Exchange relationships in financial services: marketing equities to institutions
    Tyler, K.
  • Bridging the gap between suppliers and customers through relationship promoters
    Walter, A.; Gemunden, H.G.
  • Developing an account‐management lifecycle for advertising agency‐client relationships
    Waller, D.S.
  • Activities used by advertising agencies to attract new clients in Australia
    Waller, D.S.; Cusick, D.J.; Matheson, H.D.; Miller, M.K.

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