Developing a generic framework for building B2B relationship strategy in dyadic relationships

Kilinc, Abdulcelil

Abstract

The main investigation of this thesis, in simple terms, is to identify the underlying factors in the initiation and the development of dyadic business relationships and to classify them accordingly so that suitable and practical relational strategies can be drawn upon these classifications. In line with the idea that business relationships are required to ensure repeated orders, it becomes vital to find out what factors influence establishment and development of relationships; if any given relationship is fully utilised, and what actions needed to increase the value/strength of those relationships, even if the potential might be weak. The theoretical frame of reference chosen for the study is based on the Industrial Network Approach (INA), otherwise known as the Activities-Resources-Actors (ARA) model. The idea within this paradigm builds on the understanding that relationship development strategy is not an individual firm activity. It suggests that firms should develop relationships, which refers to an approach whereby the development involves activities directed at counterparts and/or actions are derived from the interaction with counterparts. While relationship is central to the INA literature, the regulating factors of initiating and developing relationships have been somehow unexplored. The prevailing literature on relationship building often fails to take into account the reality, which in turn weakens the theoretical grasp of the environmental context of industrial marketing and business strategy. In creating strategies and tactics, the study reviews major portfolio models and finds considerable theoretical and managerial gaps. In tackling these gaps, there emerges a need to define novel terminology such as relationship capacity and relationship index, and the thesis develops its own matrix for the taxonomy of relationships for relationship initiation/development with the view of the underlying factors. The variables that regulate the matrix are drawn from the industrial buying behaviour literature, and therefore the matrix has robust foundations in building relational strategies, whilst the dimensions of the others are left to the discretion of their creators. The matrix is used as one of the tools in a five-step methodology, also proposed by the study, in the initiation and/or the development of business relationships. This thesis then moves to validate the matrix and the methodology. To this end, it first uses the matrix and the methodology in an in-depth qualitative case study that involves the initiation and the development of a dyadic business relationship between a Turkish marble processer and its Qatari fit-out firm. The focal firms co-operated in winning a one-time order from the Qatari firm’s client, a Japanese contractor working in Doha. There had been no previous dealings between the focal companies and it required them to develop joint-selling activities that helped secure the contract from the contractor. The way the firms acted and interacted in relation to each other impacted their ability to organise and economise on their resources effectively when carrying out their dealings in being awarded with the contract. The case study demonstrates how the parties became convinced of setting a business relationship despite having had no previous relationship in place. For instance, shortly after the partnership arrangement was formed, the client of Qatari fit-out firm showed a great resistance in awarding the contract to the partnership. It was necessary to quickly find a solution in order to remain as the preferred supplier to the project. There were critical events that the partnership needed to address, and they managed to deal with the situation as the events unfolded and the relationship progressed. The case study illustrates and example of how a business relationship can challenge issues faced on the way in winning a large order. The partnership arrangement therefore serves as the empirical point of departure of the study. Secondly, in verifying the variables that regulate the matrix, the study applies to expert view to reveal whether or not the variables are really the reasons for initiating and developing relationships as deduced from the literature review. From that quantitative endeavour, it draws conclusions that support the main investigation of the thesis and presents considerable contributions to the prevailing literature.

• Thesis Type: Thesis
• Deposit Date: Sep 20, 2020
• Publicly Available Date: Jan 4, 2021
• Keywords: relationship initiation, relationship development, relationship strategy, portfolio approach, methodology
• Public URL: https://uwe-repository.worktribe.com/output/6698608
• Award Date: Jan 4, 2021