An Expanded Model of Business-to-Business Partnership Formation and Success

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Abstract

In this article, the authors develop an expanded model of partnership formation and success that builds upon a previous model constructed by Mohr and Spekman. Mohr and Spekman proposed that partnership success is predicated on relationship attributes, communication, and conflict resolution techniques, but their model did not specify what factors are associated with the initial formation of the partnership. The study described in this article is based on a series of in-depth interviews with purchasing managers, and identifies factors serving as antecedents to the formation of a partnership. Purchasing managers indicated that partnerships are initially formed in order to lower costs, increase service, and to improve a firm's competitive advantage. The study also confirms the existence of various characteristics of partnership success. The article concludes with suggestions for future research about business-to-business partnerships.

Introduction

In discussing the challenges facing marketing scholars at the beginning of the 1990's, Webster [1] proposed two main thrusts:

…The first is to develop an expanded view of marketing within the firm, one that specifically addresses the role of marketing in firms that go to market through multiple partnerships … The second is to develop a base of empirical research that broadens our understanding of the forces leading to the development of long-term customer relationships, strategic partnerships with vendors, … and the issues involved in creating, managing, and dissolving these partnerships over time.

As we enter the new millenium, Webster's charge still provides guidance, as evidenced by this special issue of Industrial Marketing Management. Although many case studies, conceptual papers, and empirical research articles have been published, there is still more that researchers can do to understand partnering. Among the needs is a more comprehensive model of partnership success than has been previously proposed.

The objective of this article is to present an expansion of an earlier model of partnership success originally proposed by Mohr and Spekman [2]. We describe the Mohr and Spekman model, and the results of a series of in-depth interviews of purchasing managers. The information gleaned from the interviews suggests that additions to the model are necessary. The in-depth interviews also confirm some of the factors associated with partnership success. We then offer an expanded model of partnership formation and success, as well as some suggestions for future partnership research.

Section snippets

Literature review

In the business-to-business marketing environment, many articles, in both the academic and popular business press, have touted the importance and benefits of partnering. Some of the articles have been conceptual or anecdotal in nature while others have presented the results of empirical studies. In diverse industries from healthcare [3] to the manufacture of power components [4], both the conceptual and empirical articles have supported the advantages gained by both buyers and suppliers

A model of partnership success

The Mohr and Spekman [2] model of partnership success uses two indicators of success: 1) objective measures, such as sales volume attributed to partners and 2) affective measures, such as satisfaction with the partnership. The authors further propose that partnerships are a more intimate form of business relationship and that certain characteristics should exist in successful partnerships. The factors upon which success is predicated include attributes of the partnership, communication

Research method

The primary data collection method used in this study was a series of in-depth interviews with purchasing managers. In-depth interviewing is a time-consuming, expensive data-collection technique relative to some other types of data collection such as mail or telephone surveying. However, for the purposes of this study, in-depth interviewing offered a chance to gather a rich database of open-ended responses to questions about partnering 24, 25. This database, in turn, provided the depth of

Factors Causing Organizations to Form Partnerships

When asked which side of the relationship—buyer or supplier—initiated the partnership, 38.1% of the respondents indicated that it depends on the particular situation facing the potential partners. Another 30.3% reported that the supplier initiated the partnership, while 15.8% of the purchasing managers said that the buyer was the driving force behind partnership formation. The remaining 15.8% of the respondents said that both parties were equally responsible for initiating partnerships.

The

Modifications to the Mohr and Spekman Model Suggested by the Data

Figure 2 presents an expansion and enhancement of the Mohr and Spekman model based on the results of the depth interviews. As noted in the previous section, purchasing managers indicated that they expected to receive such benefits as lower costs and increased service as a result of partnering with a supplier firm. While the Mohr and Spekman model assumed the formation of a partnership and focused immediately on success factors, our participants noted that the very antecedents to partnership

Implications for management

The expanded model and the comments from purchasing managers offer a number of suggestions for managers.

Limitations

Like all research studies, this study has certain limitations. One limitation stems from the utilization of in-depth interviews. The open-ended questions asked during the interviews provided a rich and insightful source of information. However, future studies should include questions designed for empirical examination. Specifically, better measurement tools for success factors should be examined and included in such an empirical examination. Measures for relationship management issues, such as

Conclusions

The research study and model development presented in this article represent an additional step forward in our understanding of partnership processes. As empirical documentation for the advantages of partnering continues to mount, one would expect additional refinements to models such as the expanded model described here. Ultimately, the combination of conceptual model development and empirical testing should yield a comprehensive, verified model of partnership formation, management, and

Acknowledgements

This research was supported by the Faculty Excellence Fund in the School of Business, Virginia Commonwealth University. The authors contributed equally to this article. The authors wish to thank Hiram C. Barksdale, Jr. of Georgia State University for stimulating our study of partnerships and for offering helpful comments regarding the development of the survey instrument used in this study. The authors also appreciate the helpful comments from the special issue editor and the anonymous

TRACY L. TUTEN is Assistant Professor of Management and Marketing, Longwood College, Farmville, Virginia.

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    TRACY L. TUTEN is Assistant Professor of Management and Marketing, Longwood College, Farmville, Virginia.

    DAVID J. URBAN is Associate Professor of Marketing at Virginia Commonwealth University, Richmond, Virginia.

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