Carsten Lund Pedersen and Thomas Ritter
As a great deal of strategy execution takes the form of strategic projects, how you align these projects ultimately determines the success or failure of your strategy. Here, we…
Abstract
Purpose
As a great deal of strategy execution takes the form of strategic projects, how you align these projects ultimately determines the success or failure of your strategy. Here, we discuss four executive challenges executives need to tackle to successfully manage a strategy in a project-based world.
Design/methodology/approach
Conceptual approach entailing illustrative case-examples
Findings
We find four executive challenges to tackle in order to successfully manage a strategy in a project-based world.
Research limitations/implications
As the study draws upon conceptual arguments, future studies need to assess the verisimilitude and boundary conditions of the challenges.
Practical implications
By thinking of a strategy through a project-based lens, and understanding the challenges thereof, executives should be better able to bridge strategy formulation and execution.
Social implications
A project-based approach to strategy is not necessarily limited to a for-profit sector; NGOs and governmental organizations may similarly learn from and draw upon a project-based approach to strategy.
Originality/value
As little research within strategy has explicitly conveyed a project-based lens, the study emphasizes a novel approach to strategy.
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This paper aims to reflect on relevance of business-to-business research based on Van de Ven’s (2007) engaged scholarship model.
Abstract
Purpose
This paper aims to reflect on relevance of business-to-business research based on Van de Ven’s (2007) engaged scholarship model.
Design/methodology/approach
The paper is a reflection of the current state and potential future research avenues.
Findings
The paper highlights that relevance is important in all four engaged scholarship activities. Pitfalls also occur at all four parts.
Research limitations/implications
The paper highlights challenges and opportunities in business-to-business marketing research.
Originality/value
The paper reflects on relevance of research projects.
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The paper suggests a framework for analyzing business relationships using the hierarchy‐markets‐network framework. Instead of treating these three interaction modes as mutually…
Abstract
Purpose
The paper suggests a framework for analyzing business relationships using the hierarchy‐markets‐network framework. Instead of treating these three interaction modes as mutually exclusive, an integrated model is suggested offering the opportunity for dyadic and dynamic analyses.
Design/methodology/approach
The paper takes the form of a literature study.
Findings
Relationships between two organizations can vary significantly within a triangle defined by hierarchy, market and network. Firms need to understand their current position and how that fits the purpose of the relationship. Also, understanding the other side's evaluation and potential development opportunities are important.
Practical implications
The framework offers an analytical tool for firms in order to improve their relationship understanding and relationship management.
Originality/value
The paper offers some clear definitions and thus contributes to overcome some conceptual problems. It also contributes to the discussion on hierarchies, markets and networks as potential interaction modes.
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Jens Geersbro and Thomas Ritter
Most firms have a number of unprofitable customer relationships that drain the firms' resources. However, firms in general and sales representatives in particular hesitate to…
Abstract
Purpose
Most firms have a number of unprofitable customer relationships that drain the firms' resources. However, firms in general and sales representatives in particular hesitate to address this problem and, ultimately, to terminate business relationships. This paper therefore aims to investigate the antecedents and consequences of sales representatives' relationship termination competence.
Design/methodology/approach
A model of antecedents of sales representatives' relationship termination competence is developed and tested using a cross-sectional survey of more than 800 sales representatives. The impact of the constructs “termination acceptance”, “definition of non-customer”, “termination routines” and “termination incentives” on termination competence are analyzed using PLS.
Findings
A sales representative's termination competence is positively influenced by greater clarity and wider dissemination of the definition of a “non-customer”, higher prevalence of termination routines, and increasing degrees of termination incentives. Acceptance of relationship termination at the firm level does not appear to have a significant impact on sales representatives' relationship termination competence. In addition, termination competence significantly affects the value of customer portfolios.
Practical implications
The findings suggest that managers should more actively consider relationship termination as a legitimate option in customer relationship management. In order to increase the value of a firm's customer portfolio, managers must not only provide a clear definition of the types of customers the organization does not want to serve, but must also implement termination routines within the organization. Managers also need to establish incentives for sales representatives to terminate relationships with unprofitable customers.
Originality/value
This paper contributes to the currently scarce research on relationship termination by documenting results from a large-scale analysis of relationship termination.
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Thomas Ritter, Ian F. Wilkinson and Wesley J. Johnston
Argues that the ability of a firm to develop and manage relations with key suppliers, customers and other organizations and to deal effectively with the interactions among these…
Abstract
Argues that the ability of a firm to develop and manage relations with key suppliers, customers and other organizations and to deal effectively with the interactions among these relations is a core competence of a firm – one that has a direct bearing on a firm’s competitive strength and performance. This is referred to as a firm’s network competence. In the first part of the paper work in Germany that has led to the development and calibration of a scale to measure a firm’s network competencies is described. In the second part the results of preliminary studies designed to develop and test the validity of the scale in an English‐speaking context are reported. The results show that the measurement of network competence is valid and that the same relations between network competence and performance measures found in the German research hold. It is further shown that the measure of network competence is empirically and conceptually distinct to that of the market orientation scale.
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Gabriele Helfert, Thomas Ritter and Achim Walter
Many studies have shown that market orientation is important for firms because it has a positive impact on performance. However, several studies have indicated that the relation…
Abstract
Many studies have shown that market orientation is important for firms because it has a positive impact on performance. However, several studies have indicated that the relation between a firm’s market orientation and its success is sometimes weak and that moderating variables need to be considered at least under certain circumstances. As such the overall message from the market orientation studies is not clear. The usefulness of the market orientation concept must also be questioned when looking at the realities of business markets. In most if not all cases the firms’ “surroundings” should be seen as a network of inter‐organizational relationships rather than an anonymous market. Therefore, in this paper the notion of market orientation is explored with particular focus on inter‐organizational relationships. Hereby, it is argued that the relationships are important and that the overall market orientation of firms needs to be translated to a relationship level in order to be effective. It is further argued that market orientation on a relationship level can be interpreted in terms of a firm’s employed resources and executed activities dedicated to relational exchange processes.
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Thomas Ritter and Achim Walter
Managers and academics alike focus on value creation in business relationships. This paper adds to existing literature by analyzing functions of business relationships and their…
Abstract
Managers and academics alike focus on value creation in business relationships. This paper adds to existing literature by analyzing functions of business relationships and their impact on value perception. Applying a customer perspective, direct relationship functions are concerned about payment, quality, and volume. Indirect functions include innovation, access, and scouting. Furthermore, trust and number of alternative suppliers are included in the study. The empirical results illustrate the important role of direct and indirect functions for value creation. Understanding these functions is instrumental for driving customer value, both for the supplier and the seller. Direct functions do have a much stronger impact on value than indirect functions that still do have a significant impact. Thus, increasing direct function fulfillment is much more effective in order to gain key supplier status than relying only on indirect functions. But indirect functions may offer ample differentiation opportunities. Being a strong driver of relationship value, trust is also driven by function fulfillment. Thus, relationship value depends on rational elements (functions) and social elements (trust). Availability of alternative suppliers increases the importance of relationship function fulfillment on customer value and customer trust. In highly competitive markets, suppliers need clear understanding and communication of relationship value in order to succeed.
Thomas Ritter and Achim Walter
The paper seeks to analyse and discuss the impact of information technology competence and relationship management on relationship value and relationship profitability.
Abstract
Purpose
The paper seeks to analyse and discuss the impact of information technology competence and relationship management on relationship value and relationship profitability.
Design/methodology/approach
The paper draws on an empirical study of 123 relationships. The data are analysed using regression analysis. Interaction effects and curvilinear effects are tested.
Findings
The empirical results reveal that information technology competence and relationship management have positive effects on relationship function fulfilment and profitability. Furthermore, an interaction effect between information technology competence and relationship management is identified, i.e. the compensatory relation between high‐tech (ITC) and high‐touch (relationship management) is demonstrated.
Research limitations/implications
The limitations of the paper are the lack of dyadic data and the use of key informants. Further research could address these issues. Implications include the interplay between information technology competence and relationship management. The two concepts can replace each other to a certain degree but not fully as the main effects remain positive and significant.
Practical implications
The results of this study may lead to conscious decisions of how to apply the different means to create value and profits from relationships. The important message is that information technology competence can replace parts of relationship management but cannot do so totally. Also, “overcontacting” in relationships may produce dysfunctional effects. Thus, firms need to develop customer‐handling concepts which combine the two possible means in a synergetic way.
Originality/value
The paper combines two areas previously discussed separately, i.e. the influence of information technology competence on relationship functions and profitability and the influence of relationship management on relationships functions and profitability. This combination offers insights for researchers and practitioners.
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Jens Geersbro and Thomas Ritter
This paper aims to discuss the concepts of uncertainty, ambiguity, and conflict in business networks in relation to firm performance. The paper aims to argue that uncertainty…
Abstract
Purpose
This paper aims to discuss the concepts of uncertainty, ambiguity, and conflict in business networks in relation to firm performance. The paper aims to argue that uncertainty, ambiguity, and conflict are useful concepts for understanding firm performance and the way companies cope with external barriers to their performance.
Design/methodology/approach
The paper is a conceptual contribution based on a literature study and empirical observations by the authors.
Findings
The model of external performance barriers indicates four different barriers, each based on a different logic, thus demanding different tools for addressing them.
Research limitations/implications
The model establishes a better developed basis for further analysis of external performance barriers. The model is based on theoretical argumentation, and thus without empirical testing.
Practical implications
Managers are encouraged to analyze the different external barriers and the impact of those on firm performance. Furthermore, potential ways of reducing barriers are presented to inspire managers to potential action.
Originality/value
The paper contributes by developing a systematic view of external barriers of firm performance and potential managerial solutions to these barriers.