Value Co-Creation in Industrial Buyer-Seller Partnerships ... - Doria

” It is BR1&2 and BR9 also that … you see, it (the relationship) goes back to times inScandinavia. Back then it was done… as they both say, back then contracts were madeover vodka and sauna” . (Interview: Buyer 15)6.3 The pre-partnership years of the 1990’sMr SR1&2 was appointed responsible for the Seller Marine sales on the US market in 1991.Two years later the first service agreement between the companies saw daylight. Theagreement was a service agreement for the NN Class vessels, an agreement where the Sellertook responsibility for delivering spare parts, service, and maintenance work for theengines. It was an agreement that marked the direction towards wider cooperation betweenthe companies.In 1994 the Buyer ordered two ships with competing engines. The Seller lost the mainengine competition to a competitor. In 1995 and 1997 the Buyer built two NN Class vesselsin France with the Seller main engines. In 1996 the Buyer returned to the Nordics to buildthe next Class vessels. Two years later, in 1998 the first of a series of five ships waslaunched.According to Mr SR1&2 the interesting period (referred to as the interesting epoch) inthe development of the relationship between the companies started in 1997 when Mr BR9took over management of marine operations at the Buyer and Mr SR1&2 and Mr BR9started envisaging and discussing a partnership. Mr BR9 initiated the discussions about thepartnership with the aim of operating the Buyer fleet as efficiently and safely as possible.He wanted to develop the relationship between the Seller and the Buyer into somethingunique, something that would serve as a benchmark for the rest of the industry. In 1997 and1998 the Buyer experienced three breakdowns on engines, incidents that lead to high costs.These incidents were a catastrophe for Mr BR9 in his new position and can be seen astriggers for the development of a partnership with a trusted partner. Mr BR9 believed thatby working together and cooperating both companies could win in the long run.” Yes, he was quite helpless... He was in trouble and he needed help, he turned to usfor help, but did not get any (...) The question at the time was like throwing a life-buoyto someone who is about to drown and is struggling to keep his face above the surfaceof the water. (Interview: Seller 2)During his time at his previous employer in Scandinavia Mr BR9 felt that cooperation andcommunication was smooth with the Seller, that they had an understanding, and were ableto agree on things and create things together. Later his aim was to create a similar type ofrelationship and an atmosphere of cooperation between the focal Buyer and Seller.104