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Abstract
Existing research on buyer seller relationships has focused on the role played by trust in shaping the dynamics of interpersonal
interaction between the buyer and the seller. While this is undoubtedly an important variable in governing the interactional dynamics it is by
no means the only variable. The paper begins by reviewing the existing literature on buyer seller relationships. The role played by emotions
is articulated. Finally, it is recognized that the emotions that emerge in a buyer seller relationship do so at multiple levels. A model and
propositions highlighting the impact of emotions on interpersonal relationships are developed. Illustrative cases are used to ground the
propositions empirically.
D 2005 Elsevier Inc. All rights reserved.
Keywords: Marketing relationships; Emotions; Inter- and intra-group behaviors; Business negotiations
1. Introduction
It is widely recognized that personal relations play an
important role in business-to-business (B2B) marketing.
A lack of a positive personal chemistry is an often-cited
reason for why business relationships either fail to
develop and/or fail to be sustained over time. The idea
that emotions play an important role in business relationships is also a theme that is also widely reflected in the
marketing research literature. In B2B literature, interpersonal dynamics determine the fate of many buyer
seller activities (e.g., Brierty, Eckles, & Reeder, 1998;
Coviello, Brodie, & Munro, 2000; Geyskens & Steenkamp, 2000; Keillor, Parker, & Petijohn, 2000). A
number of studies have highlighted the role played by
emotions in marketing channel relationships (e.g., Geyskens, Steenkamp, & Kumar, 1998).
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PSYCHOLOGICAL STATES
Cognition
Affect
positively
vs negatively
framed
behavior
perception of
other party's
behavior
Behavioral
Outcomes
Reinforce or lessen
trust
Fig. 1. The causal linkage between affect, behavioral outcomes and trust in business relationships.
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1987; Ford, 1980; Frazier, 1983). The nature of interpersonal interaction is different at each of these stages
(Hallen & Johanson, 1990). It is also worth noting that at
each of these stages a number of individuals are involved
each of whom plays a different role (Kumar & Andersen,
2000). Thus, as argued in the earlier part of the paper the
impact of emotions on the evolution of the relations may be
studied either at the individual, the intergroup and/or the top
management level. At an individual level it is important to
differentiate between those involved directly in the interorganizational process (so-called boundary spanners) and
those only indirectly related to it. Likewise at a group level a
distinction between groups of individuals directly affected
by the initiation, management, termination and possible reestablishment of buyer seller relationships and those outside this process can be made. Adding to the complexity of
the analysis is the dynamic nature of the groupings of
individuals and the demarcation of boundaries in relation to
these groups. As buyer seller relationships evolve, individuals develop personal bonds with personnel located in
the exchange partner. Moreover, the successful development
of business relationships is associated with increasing
commitment and mutual adaptation, involving an increasing
number of individuals and departments on both sides of the
buyer seller dyad. Therefore, personnel groupings indirectly involved in the initiation phase of the business
relationship may become directly involved as the relationship commences. Finally, new personnel groupings (i.e.
interorganizational task forces) may be formed during the
relationship development and others (i.e. negotiation teams
established to initiate the relationship processes) may
dissolve.
For the purposes of this paper differentiated positions of
individuals and groups present in the buyer seller relationship formation process have been identified. These roles are
portrayed in Fig. 2.
4.1. Emotions at the individual level
As argued earlier buyer seller relationships have the
potential for generating negative as well as positive emotional reactions among individuals. The intensity of the
emotional reaction among the involved actors depends on a
number of different factors. The greater the unexpectedness
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Table 1
A conceptual overview of emotional states among different groupings in relationship development
Boundary
spanner
individuals
Boundary
spanning
group(s)
Peer groups
Implications
for trust
building
Initiation
Development
Voluntary termination
Forced termination
Re-establishment
(following voluntary
termination)
Medium strength,
active,
positive anxiousness
Not established at
this stage
Medium or low
strength, active,
positive anticipation
High strength,
active, positive joy
Low strength,
passive,
negative fear
Medium strength,
active,
neutral confusion
Low strength, active
acceptance
Medium strength,
active, negative
anger
High strength,
active confusion
High strength,
passive, positive
relief
Anxiousness increases
incentives for trust
building by boundary
spanning individuals
but is constrained by
negative emotions such
as fear among peers
resisting change
Trust building
enforced by the
dynamic interplay
of positive emotions
shared and reinforced
among boundary
spanners and boundary
spanner groups
Low strength,
neutral, passive
compliance or
avoidance
Emotional states
following from
re-establishment of
relationship lead to
a gradual rebuilding
of trust
5. Initiation
At the initiation phase, Dwyer et al. (1987) note that the
actors are engaged in finding the right partner for
collaboration. To this end, the potential partners consider
the obligations, benefits and burdens and the possibility of
exchange. According to Dwyer et al. (1987) the exploratory
relationship is very fragile in the sense that minimal
investment and interdependence guarantee that termination
would not be a problem if circumstances warranted it. In a
similar vein, Heide (1994) notes that relationship initiation
entails an evaluation of potential exchange partners, initial
negotiations about the potential relationship, and some
adaptation if the collaboration goes forward. Ford (1980)
notes that at this stage the partners do not know each other
very well and for this reason there is considerable
uncertainty. While the partners may be aware of the risks
involved, they may have little or no evidence of how to
judge their partners commitment to the relationship.
Although there may be uncertainty in the organization as
to whether or not it is best to proceed with the relationship
this uncertainty may not be universally shared. The
boundary spanners are likely to be positively biased towards
the formation of this relationship for a number of different
reasons. First, the initiation of new relationships provides
new possibilities for boundary spanners in terms of
recognition and achievement. Given that it is their job to
Emotional states
created
from voluntary
termination
have limited effect
on established trust
Negative and
strong emotional
states created
from forced
termination erode
existing trust and
may even create
distrust
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6. Development
In their seminal piece, Dwyer et al. (1987) note that the
development phase is characterized by an increasing
interdependence among the alliance partners. The development of trust during the initiation of the relationship leads to
increased risk taking among the partners. One consequence
of this is the reduction of uncertainty and lessening of the
psychological distance between the partners.
A good example of this is the relationship between Nissho
and Novo Nordisk. The collaboration between Nissho and
Novo Nordisk deepened during the development and
successful launch of NovoPen\. As pointed out by Sako
and Helper, Japanese subcontractors expect frequent interaction, mutual recognition and support in their relationships
with customers. They prefer not to resolve issues through
contracts and arms length agreements (Sako & Helper,
1998). Novo Nordisk representatives learned from their
initial experience with the Japanese company that matters
must be solved in face-to-face talks. Novo Nordisk sees this
as a part of the Japanese business culture and has learned to
cope with this dimension of doing business in Japan:
You cannot conduct business with the Japanese only using
a telephone, a fax and the Internet. You need to be there and
to know them on a personal basis, and you must try to
develop close personal relation to them. Also they need to
know you on a personal level. (Jrn Rex, Product
Development Manager, Novo Nordisk)
Over the years, both Nissho and Novo Nordisk developed
their ability to collaborate in spite of cultural as well as
physical barriers among them. Four staff members from
Novo Nordisk worked together with 6 10 Nissho staff
members on a regular basis, improving the needle. Novo
Nordisk developed a culture sensitivity seminar for employees who were to encounter their Japanese partners for the
first time. Moreover, a person, who had already developed
personal relations with his/her Japanese colleagues, always
accompanied employees who needed to be introduced to the
Japanese for the first time. On the other hand, the Nissho
organization has also developed its interpersonal skills for
managing trust formation across organizational and cultural
boundaries. First, Nissho employees who were involved
directly with Novo Nordisk improved their English-speaking capabilities considerably. The employees from the
Japanese partner who took part in the exchange activities
with Novo gradually became aware of the Danish business
culture. Therefore, discussions between Danish and Japanese engineers became more open-ended and informal than
previously, indicating the emergence of affect based trust.
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7. Termination
According to Dwyer et al. (1987) this phase is
characterized by the possibility of withdrawal or disengagement from the relationship. Although the partners can
withdraw from a relationship at any stage, when the
dissolution occurs after the relationship is perceived by
the partners to be exceedingly good, the emotional
consequences of termination are likely to be particularly
severe. When expectations are high any violation of
expectations may have severe consequences, especially so
if the violations are attributed to the other partners
intentionality. Negative emotional states of high intensity
can cause a complete rupture of the relationship. For
example, in the alliance between KLM and Northwest
Airlines, strong negative affective states among top level
management were said to be the cause for the termination of
the alliance. The alliance between KLM and Northwest was
plagued by mutual suspicion and distrust at the outset.
Mutual antipathy and negative sentiments appeared to be
dominant in the relationship. The Dutch felt that Northwest
management were more deal-makers than airline operators and it led KLM management to undertake court action
to wrest control over the venture (Lewis, 1999). The
Americans undertook a counterattack by seeking to prevent
KLM from acquiring control. All of this was occurring at a
time when the alliance was being profitable. Although the
partners have now managed to put their differences aside
and the alliance seems to be functioning well, the venture
appeared to have been nearly undermined by the presence of
negative emotions on either side.
The strong negative affective states are likely to have
generated distrust among the partners leading them to
consider exiting the alliance. A situation of high distrust is
one, which is associated with fear, cynicism, and a high
degree of vigilance (Lewicki, McCallister, & Bies, 1998).
As groups socialize members into holding shared views and
share emotions, groups may magnify and propagate
negative affective states to other organizational members
(Janssen, Vliert, & Veenstra, 1999). The amplification is
likely to be particularly pronounced when these groups are
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8. Re-establishment
Although firms may discontinue their relationships, it is
conceivable that they may try to re-establish the relationship
at a later state. Negative emotions may tend to dissipate over
time, making it easier for the individuals to renegotiate the
relationship. The individuals who may have been previously
involved in bitter conflicts may no longer now be working
for one or all of the organizations or may have moved on to
a new position. Even when relationships are terminated,
they are often done with a heavy heart reflecting the
emotional ambivalence that is so predominant in mixed
motive interactions. A residue of positive affect may be
conserved and this may well be the main driver for the reestablishment of relationships (Havila & Wilkinson, 2002).
This is also reflected in the Novo Nissho case. Although in
this specific instance the relationship did not break down
entirely it experienced severe strain and damage control
measures had to be initiated by Novo Nordisk.
At an intermediate stage of the subcontractor relationship
with Nissho, Novo Nordisk invested in a production line-for
needles to the pen. The line was staffed with Nisshos
employees. By making these investments Nissho and Novo
Nordisk had both demonstrated a shared commitment to the
relationship, which was very much in line with the Japanese
tradition of subcontractor relationships.
Because of the merger of Novo and Nordisk Gentofte,
the new Novo Nordisk took over a needle fabrication plant
in Hjrring, Denmark. Partly based on semi-manufactured
needle tubes from Nissho, this plant manufactured needles
for the pen launched by Nordisk Gentofte in 1986. After the
533
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