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The Moderating Role Of Relationship Quality In Determining Total Value Orientation

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  • Framarz Byramjee
  • Parimal Bhagat
  • Andreas Klein

Abstract

Among the several approaches to understanding value in business transactions, the one most frequently encountered in marketing, management, and economics literature is the tradeoff of benefits and costs, the difference or ratio of which is operationalized as value. In a complex business relationship involving goods and services as well as multiple business partners, assessing the total value of the system involves more complex transactional and relational dynamics than simpler one-time business transactions. Thus, the purpose of this paper is to offer a model of total value of a business system including antecedent factors and outcomes, and thereupon to study the role of relationship quality in moderating the value of the individuals in the business relationship. This paper uses the transaction cost approach to study the value in a business relationship to both the service-provider and client firm, considering the costs and benefits to each business partner. Next, it discusses the impact of the quality of the business relationship on the value perceived by each business partner. Finally, several outcomes of a total value orientation such as financial performance, competitiveness and, especially, end-customer value is considered.

Suggested Citation

  • Framarz Byramjee & Parimal Bhagat & Andreas Klein, 2010. "The Moderating Role Of Relationship Quality In Determining Total Value Orientation," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 4(2), pages 49-62.
    • Handle: RePEc:ibf:gjbres:v:4:y:2010:i:2:p:49-62
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    References listed on IDEAS

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    1. Oliver E. Williamson & Scott E Masten (ed.), . "The Economics of Transaction Costs," Books, Edward Elgar Publishing, number 1652.
    2. Mari Sako, 2006. "Outsourcing and Offshoring: Implications for Productivity of Business Services," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(4), pages 499-512, Winter.
    3. Almas Heshmati, 2003. "Productivity Growth, Efficiency and Outsourcing in Manufacturing and Service Industries," Journal of Economic Surveys, Wiley Blackwell, vol. 17(1), pages 79-112, February.
    4. George Baker & Robert Gibbons & Kevin J. Murphy, 2002. "Relational Contracts and the Theory of the Firm," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 39-84.
    5. Amar Gupta & Satwik Seshasai & Sourav Mukherji & Auroop Ganguly, 2007. "Offshoring: The Transition From Economic Drivers Toward Strategic Global Partnership and 24-Hour Knowledge Factory," Journal of Electronic Commerce in Organizations (JECO), IGI Global, vol. 5(2), pages 1-23, April.
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    Citations

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    Cited by:

    1. Corina M. RÃDULESCU, 2017. "New Strategic Orientation of Firms Based on Value Innovation," North Economic Review, Technical University of Cluj Napoca, Department of Economics and Physics, vol. 1(1), pages 303-311, October.
    2. Estera Piwoni-Krzeszowska, 2012. "Managing Relationships Value of Companies with Market Stakeholders – the Perspective of Flexibility in the Relationships," MIC 2012: Managing Transformation with Creativity; Proceedings of the 13th International Conference, Budapest, 22–24 November 2012 [Selected Papers],, University of Primorska, Faculty of Management Koper.
    3. Rémi Mencarelli & Arnaud Riviere, 2015. "Perceived value in B2B and B2C: A comparative approach and cross-fertilization," Post-Print halshs-01157807, HAL.

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    More about this item

    Keywords

    Value; Relationship Quality; Transactions; Costs; Benefits; Business Partnerships;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General

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