Long-term relationship in industrial marketing: reality or rhetoric?
Article Abstract:
Although the interaction approach to industrial marketing, with preoccupation on building long-term relationship, holds much promise for theoreticians and practitioners alike, we need to confront the inevitability of misjudged partners, particularly those with hidden agendas, and ill-conceived business relationships. Business goals and objectives change over time, and accordingly, the transaction cost equation. This state of affairs may or may not be anticipated and further compounded by a subsequent relationship atmosphere void of any communication and commitment between the parties. What is certain, however, is with the prospect of costly litigation, corporate reluctance to see the demise of the relationship, together with the economic and social cost associated with a failed relationship, parties must be wary at the outset of committing considerable resources to building a relationship. The idealistic, utopian view of building a long-term relationship must be tempered with the harsh reality that one should under certain circumstances actively and consciously play the market, seek out opportunities, and develop an opportunistic mentality. Deciding when to get out of an existing relationship and into a new one would minimize the substantial economic, political, and emotional cost associated with building a relationship that was never destined to last. Under such circumstances, failure or success in industrial market planning is more assured by appreciation and understanding of the circumstances that favor short-term opportunistic relationships as opposed to long-term relationships. These include developing a planning framework, and indeed, a business mentality that encourages parties to consciously seek new opportunities with potential new partners. (Reprinted by permission of the publisher.)
Publication Name: Industrial Marketing Management
Subject: Business, international
ISSN: 0019-8501
Year: 1996
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Russian networks in transition: implications for managers
Article Abstract:
The relatively new research tradition on interorganizational relationships and networks in industrial markets is also useful for understanding the transition of the former Soviet Union from a planned economy to a market economy. This article examines the managerial implications of the network approach in the context of the changing Russian industrial networks. Network literature on managerial implications is briefly reviewed. So that these implications can be drawn, a focal firm's viewpoint to the network must be adopted. Implications concern the strategic level of decision-making and revolve around the concept of network position. The fundamental changes in industrial networks in the former Soviet Union are then discussed. The article concludes by inspecting the strategic implications of the network approach for both Eastern and Western managers active in the Russian networks. Two central issues are explicit attention to individual relationships in their context and sensitivity to network thinking. (Reprinted by permission of the publisher.)
Publication Name: Industrial Marketing Management
Subject: Business, international
ISSN: 0019-8501
Year: 1996
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