IDEAS home Printed from https://ideas.repec.org/a/eee/bushor/v64y2021i1p61-71.html
   My bibliography  Save this article

Loyalty or lethargy? Keeping sellers committed, not entrenched

Author

Listed:
  • Jelinek, Ronald

Abstract

While business sellers frequently enjoy long-term relationships with their buyers, not every extended association is based on a genuine sense of customer loyalty. Many organizations remain in relationships with providers for too long; while the seller has stopped providing value, the buyer sticks to the routine. Building from empirical research and theory on buyer-seller relationships, this research extends our understanding of customer complacency and seller entrenchment and introduces the concept of customer lethargy. Synthesizing theory from multiple domains with exploratory interviews conducted with business customers, this article offers insight into the functioning of organizational buying centers, the evolution of business exchanges over time, and how some exchanges can be undermined by various forms of relational dysfunction. I define customer lethargy, explore its root causes and offer business buyers a strategy which aims to help them self-audit their loyalty, avoid complacency and lethargy, and keep sellers committed, not entrenched.

Suggested Citation

  • Jelinek, Ronald, 2021. "Loyalty or lethargy? Keeping sellers committed, not entrenched," Business Horizons, Elsevier, vol. 64(1), pages 61-71.
  • Handle: RePEc:eee:bushor:v:64:y:2021:i:1:p:61-71
    DOI: 10.1016/j.bushor.2020.10.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0007681320301397
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.bushor.2020.10.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jelinek, Ronald & Jelinek, Kate, 2010. "From clear to complicated: Buying and selling accounting services post Sarbanes-Oxley," Business Horizons, Elsevier, vol. 53(5), pages 511-522, September.
    2. Laura Poppo & Kevin Zheng Zhou & Julie J. Li, 2016. "When can you trust “trust”? Calculative trust, relational trust, and supplier performance," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 724-741, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Faridzah Jamaluddin & Nizaroyani Saibani, 2021. "Systematic Literature Review of Supply Chain Relationship Approaches amongst Business-to-Business Partners," Sustainability, MDPI, vol. 13(21), pages 1-25, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lu, Tingyu & Zhuang, Mengzhou & Zhuang, Guijun, 2021. "When does guanxi hurt interfirm cooperation? The moderating effects of institutional development and IT infrastructure capability," Journal of Business Research, Elsevier, vol. 125(C), pages 177-186.
    2. Najafi-Tavani, Zhaleh & Robson, Matthew J. & Zaefarian, Ghasem & Andersson, Ulf & Yu, Chong, 2018. "Building subsidiary local responsiveness: (When) does the directionality of intrafirm knowledge transfers matter?," Journal of World Business, Elsevier, vol. 53(4), pages 475-492.
    3. Erik Mooi & Qiong Wang & Steven Seggie & Sandy D. Jap, 2024. "The show must go on: The role of contract frames in safeguarding relationship continuity," Journal of the Academy of Marketing Science, Springer, vol. 52(6), pages 1842-1858, November.
    4. Henn, Nicolas & Lohwasser, Todor S., 2020. "The advances of community cloud computing in the business-to-business buying process," Discussion Papers of the Institute for Organisational Economics 6/2020, University of Münster, Institute for Organisational Economics.
    5. Sheng Zou, 2021. "Disenchanting Trust: Instrumental Reason, Algorithmic Governance, and China’s Emerging Social Credit System," Media and Communication, Cogitatio Press, vol. 9(2), pages 140-149.
    6. Misani, Nicola, 2020. "Sustainability and Implicit Contracts," MPRA Paper 104963, University Library of Munich, Germany.
    7. Connelly, Brian L. & Shi, Wei & Cheng, Xin & Yin, Cheng, 2021. "Short Sellers: A screening theory perspective on B2B relationships," Journal of Business Research, Elsevier, vol. 134(C), pages 393-404.
    8. Jaskiewicz, Peter & Block, Joern & Wagner, Dominik & Carney, Michael & Hansen, Christopher, 2021. "How do cross-country differences in institutional trust and trust in family explain the mixed performance effects of family management? A meta-analysis," Journal of World Business, Elsevier, vol. 56(5).
    9. Yunhui Zhao & Chuanli Zhao & Yi Guo & Hongyan Sheng & Taiwen Feng, 2021. "Green supplier integration and environmental innovation in Chinese firms: The joint effect of governance mechanism and trust," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 169-183, January.
    10. Bai, Xuan & Wang, Qingtao & Sheng, Shibin & Li, Julie Juan, 2021. "Cross-level interpersonal ties and IJV innovation: Evidence from China," Journal of Business Research, Elsevier, vol. 134(C), pages 618-630.
    11. Najafi-Tavani, Zhaleh & Mousavi, Sahar & Zaefarian, Ghasem & Naudé, Peter, 2020. "Relationship learning and international customer involvement in new product design: The moderating roles of customer dependence and cultural distance," Journal of Business Research, Elsevier, vol. 120(C), pages 42-58.
    12. Mandi E & Qiyuan Zhang & Kevin Zheng Zhou & Chuang Zhang, 2024. "Interfirm trust and subsidiary performance of emerging market multinational enterprises: an examination of contingent factors," Asia Pacific Journal of Management, Springer, vol. 41(2), pages 583-614, June.
    13. Nicholas Argyres & Janet Bercovitz & Giorgio Zanarone, 2020. "The role of relationship scope in sustaining relational contracts in interfirm networks," Strategic Management Journal, Wiley Blackwell, vol. 41(2), pages 222-245, February.
    14. Claudio Panico, 2017. "Strategic interaction in alliances," Strategic Management Journal, Wiley Blackwell, vol. 38(8), pages 1646-1667, August.
    15. James Agyei & Shaorong Sun & Eugene Abrokwah & Emmanuel Kofi Penney & Richmond Ofori-Boafo, 2020. "Influence of Trust on Customer Engagement: Empirical Evidence From the Insurance Industry in Ghana," SAGE Open, , vol. 10(1), pages 21582440198, January.
    16. Joanna Radomska & Przemysław Wołczek & Letycja Sołoducho-Pelc & Susana Silva, 2019. "The Impact of Trust on the Approach to Management—A Case Study of Creative Industries," Sustainability, MDPI, vol. 11(3), pages 1-16, February.
    17. Lees, Nic & Nuthall, Peter & Wilson, Mark M.J., 2020. "Relationship quality and supplier performance in food supply chains," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(3), August.
    18. Jiachun Lu & Lutz Kaufmann & Craig R. Carter, 2021. "How Informal Exchanges Impact Formal Sourcing Collaboration (and What Supply Managers Can Do about It)," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(4), pages 26-62, October.
    19. M. Birasnav & Rakesh Mittal & Avadhesh Dalpati, 2019. "Integrating Theories of Strategic Leadership, Social Exchange, and Structural Capital in the Context of Buyer–Supplier Relationship: An Empirical Study," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(3), pages 219-236, September.
    20. Genjiro Kosaka & Koichi Nakagawa & Seiji Manabe & Mizuki Kobayashi, 2020. "The vertical keiretsu advantage in the era of Westernization in the Japanese automobile industry: investigation from transaction cost economics and a resource-based view," Asian Business & Management, Palgrave Macmillan, vol. 19(1), pages 36-61, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:bushor:v:64:y:2021:i:1:p:61-71. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/bushor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.