SUPPORT SERVICES IN DEVELOPING TECHNOLOGY B-TO-B RELATIONSHIPS

Juha-Pekka Koistinen and Pekka Eskola
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Juha-Pekka Koistinen: Globate Ltd., Runeberginkatu 4 AC 49, 00100 Helsinki, Finland
Pekka Eskola: Department of Industrial Engineering and Management, Helsinki University of Technology, PL 1000, 02015 TKK, Finland

Chapter 7 in Creating and Managing a Technology Economy, 2010, pp 165-197 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractEspecially companies operating in business-to-business markets have acknowledged the benefits that can be gained from long customer relationship. As buyers operating in b-to-b markets make the purchases in order to achieve organizational objectives, they are generally interested in the value that can be generated with the equipment rather than only its features. The research problem of the study was: how can support services be used in developing high-technology b-to-b relationships?The structure of a b-to-b relationship was discussed using the interaction model consisting of interaction, interacting parties, environment, and atmosphere. The authors argued that the development of a relationship could be described best as seven stages framework. Koistinen & Eskola (2008) development stage model includes initial stage, establishment of relationship, exploration stage, expansion stage, stable stage, disengagement stage, and consequences management.By using support services it is possible to increase customer value, thus leading to customer satisfaction, which in part leads to customer commitment. The theoretical framework was empirically tested by applying it to high-technology b-to-b marketing context. The empirical research was conducted as a qualitative research by interviewing six representatives of partners of the case company. The case company in this study was Nordic ID, a Finnish supplier of handheld devices used in wireless automated data capture.The results of the study indicate that systematic relationship development is possible. However, the systematic aspect appears to be heavily grounded on the factors through which relationships develop over time in the first place: social exchange between individuals, information exchange, mutual trust, and long term mutual commitment.On the basis of the research, support services can effectively be used in establishing new customer relationships. Their importance for the customer supercedes even the aspects associated with the product itself. When the relationship is already established, the effect of support services changes. Rather than actively developing it, support services keep the relationship active and open for more interaction. It is at this point when information and social exchange together with trust become especially important, as they ultimately develop the relationship.According to the results of the study, there can be suggested many managerial implications. The authors argue, firstly, that managers cannot overestimate the meaning of information sharing in support services. Secondly, managers should consider the possibilities to establish an open information sharing within a network of interconnected companies. This network could be built from companies that complement each other's abilities and advantages. Thirdly, development associated with each company's technological core competence could be coordinated by partners possessing necessary knowledge of the subject. This would increase innovativeness and efficiency of research and development. Finally, some responsibility of customization could be moved to the partner possessing most knowledge about the subject, thus lightening the workload of the producer of the core product. Over time the companies in the network could also be able to provide support for the products of the other companies when possible.

Keywords: Management and Technology; Innovation Processes; Knowledge Management; Cross-Border Collaboration; Interdisciplinary Collaboration; Indicators for Measuring Innovation; Business in High-Tech Industry; Sustainability; Social Aspects of Technology Management (search for similar items in EconPapers)
Date: 2010
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