Expected Relationship Value

Abstract Managing collaborative business-to-business relationships demands an understanding of how relationships create value for the firm and a method to accurately assess that value. The purpose of this research is to propose a new construct, expected relationship value, and an innovative method for its measurement. The proposed methodology relies on qualitative research techniques to gather dispersed organizational knowledge about the relationship. The results of the interviews then serve as input to a quantitative model using a Monte-Carlo simulation to operationalize expected relationship value as a probability distribution of the net present value of current and future relationship outcomes.

[1]  Stanley F. Slater,et al.  Evaluating Strategic Investments , 1998 .

[2]  Pradeep K. Chintagunta,et al.  Customer Value Assessment in Business Markets: A State-of-Practice Study , 1992 .

[3]  K. R. Conner.  A Historical Comparison of Resource-Based Theory and Five Schools of Thought Within Industrial Organization Economics: Do We Have a New Theory of the Firm? , 1991 .

[4]  Jan B. Heide,et al.  Transaction Cost Analysis: Past, Present, and Future Applications , 1997 .

[5]  Timothy W. Ruefli,et al.  Mean-Variance Approaches to Risk-Return Relationships in Strategy: Paradox Lost , 1990 .

[6]  James A. Narus,et al.  A Model of the Distributor's Perspective of Distributor-Manufacturer Working Relationships , 1984 .

[7]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[8]  Joseph P. Cannon,et al.  Buyer–Supplier Relationships and Customer Firm Costs , 2001 .

[9]  R. G. Newman.  Single Source Qualification , 1988 .

[10]  P. Ring,et al.  Developmental Processes of Cooperative Interorganizational Relationships , 1994 .

[11]  James A. Narus,et al.  A Model of Distributor Firm and Manufacturer Firm Working Partnerships , 1990 .

[12]  J. March,et al.  Managerial perspectives on risk and risk taking , 1987 .

[13]  Mean-Variance Approaches to Risk-Return Relationships in Strategy , 1990 .

[14]  Jule B. Gassenheimer,et al.  Marketing and Exchange , 1987 .

[15]  David A. Aaker,et al.  The Role of Risk in Explaining Differences in Profitability , 1987 .

[16]  R. B. Woodruff,et al.  Customer Value Change in Industrial Marketing Relationships - A Call for New Strategies and Research , 1997 .

[17]  G. Northcraft,et al.  Experts, amateurs, and refrigerators: Comparing expert and amateur negotiators in a novel task , 1986 .

[18]  James C. Anderson.  Relationships in business markets: Exchange episodes, value creation, and their empirical assessment , 1995 .

[19]  R. B. Woodruff,et al.  Customer Value Change in Industrial Marketing Relationships - A Call for New Strategies and Research , 1997 .

[20]  F. Dwyer,et al.  Developing Buyer-Seller Relationships , 1987 .

[21]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[22]  Peter Gorringe.  The Economic Institutions of Capitalism: Firms, Markets and Relational Contracting by Oliver E. Williamson , 1987 .

[23]  James A. Narus,et al.  Business Market Management: Understanding, Creating, and Delivering Value (Управление бизнес-рынками: понимание, создание и донесение ценности) , 1998 .

[24]  David T. Wilson.  An integrated model of buyer-seller relationships , 1995 .

[25]  R. B. Woodruff,et al.  Know Your Customer: New Approaches to Understanding Customer Value and Satisfaction , 1996 .

[26]  B. Burmahl.  The big picture. , 2000, Health facilities management.

[27]  S. Hunt,et al.  The Comparative Advantage Theory of Competition , 1995 .

[28]  Max H. Bazerman,et al.  Negotiator cognition and rationality: A behavioral decision theory perspective , 1992 .

[29]  Colin F. Camerer,et al.  Taking Risks: The Management of Uncertainty , 1988 .

[30]  Kenneth R. MacCrimmon,et al.  Taking Risks, the Management of Uncertainty , 1987 .

[31]  Shankar Ganesan.  Determinants of Long-Term Orientation in Buyer-Seller Relationships , 1994 .

[32]  Manohar U. Kalwani,et al.  Long-Term Manufacturer-Supplier Relationships: Do They Pay off for Supplier Firms? , 1995 .

[33]  Joseph P. Cannon,et al.  An Examination of the Nature of Trust in Buyer–Seller Relationships: , 1997 .

[34]  R. Kaplan,et al.  Measure Costs Right: Make the Right Decisions , 1988 .

[35]  Barbara Bund,et al.  Winning and Keeping Industrial Customers: The Dynamics of Customer Relationships , 1985 .

[36]  Timothy W. Ruefli,et al.  Risk measures in strategic management research: auld lang syne? , 1999 .