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

There is no simple or universal definition on what makes a relationship a partnership. Gaddeand Snehota (2000) argue that “ closeness” is commonly associated with partnerships, whileFord et al. (1998) takes this further by saying that “ degree of integration” has to beconsidered in order to understand closeness. According to Gadde and Snehota (2000) noneof these vague terms offer much help in understanding what a partnership is and thereforeinvolvement is proposed as a relevant concept. Consequently a commonly used synonym inthe IMP literature for partnership is high-involvement relationship, implying thatinvolvement is a crucial element in a partnership. A distinction between three dimensions ofinvolvement is proposed: coordination of activities, adaptations of resources, and interactionamong individuals. These are labeled: activity links, resource ties, and actor bonds using theHåkansson and Snehota 1995 conceptualization. An integrated delivery system is anexample of a coordinated activity, while a jointly developed product or process is anexample of a resource tie. Interaction between individuals can be either more or less intense.If the interaction is close, the choices become more interdependent, which is said to affectboth commitment and trust, which in turn impacts upon coordination and adaptations(Gadde & Snehota 2000).4.6.2 The potential benefits of high involvementThe potential that lies in relationships is to achieve efficiency, to achieve innovation toinfluence others, both immediately in the relationship and in the wider network where adyad is embedded. Relationships are assets and it is vital to examine and manage them atleast as carefully as other tangible physical assets. However, relationships also involvecosts: costs of investment, costs of disruption, loss of control, and possible negative affectson other relationships. Therefore it is important that managers regard their relationships asthe unit of analysis in their activities, rather than simply concentrating on sales, offerings,territories, or operations.The benefits of a high-involvement relationship are associated with effectivecommunication and flow of information, increased predictability, reduced problems ofmisunderstanding and a chance for both companies to cope with their uncertainties,enhanced efficiency of the two companies combined operations and activities and a” division of labor” between them, based on their respective abilities and resourceinvestment. Once achieved, a high-involvement relationship implies a certain degree ofinterdependence, which may be the source of considerable future business between them.The benefits associated with high-involvement relationships can be summarized asfollows:83