Post on 01-Jan-2016
Integrated Business Relationship Value Model
* value constituents
* value constituents
* value constituents
* value constituents Network level
* value constituents
* value constituents
* value constituents
* value constituents Relationship level
* value constituents
* value constituents
* value constituents
* value constituents Exchange episode
level
Social value(Motivation)
Economic value(Utility)
Social value(Motivation)
Economic value(Utility)
Value typesValue types
The SUPPLIER’s perceptionThe BUYER’s perception The prevalent
field of value
* value constituents
* value constituents
* value constituents
* value constituents Network level
* value constituents
* value constituents
* value constituents
* value constituents Relationship level
* value constituents
* value constituents
* value constituents
* value constituents Exchange episode
level
Social value(Motivation)
Economic value(Utility)
Social value(Motivation)
Economic value(Utility)
Value typesValue types
The SUPPLIER’s perceptionThe BUYER’s perception The prevalent
field of value
Operation Process of the Model
Value level Value types
Economic value (utility) Social value (motivation)
Exchange episode
recognition of the product importance of the product to the supplier suitability of the financial conditions
personal relationships satisfaction with the product security of supply of the product
Relationship profitability of the relationship decreasing the transactional costs supply potential of the relationship
smoothness of the relationship (routines) security of the relationship competence of the supplier
Network own portfolio management network potential related effects
emanation of the relationship the supplier’s position in his own industry non-market strategy of the supplier
The buyer’s perception
Operation Process of the Model
Value level Value types
Economic value (utility) Social value (motivation)
Exchange episode
possibility of manufacturing the product importance of the product to the buyer suitability of the financial conditions
personal relationships the buyer’s satisfaction with the product security of product sales
Relationship profitability of the relationship decreasing the transactional expenses income potential of the relationship
smoothness of the relationship (routines) security of the relationship competence of the buyer
Network own portfolio management network potential related effects
emanation of the relationship the buyer’s position in his own industry non-market strategy of the buyer
The supplier’s perception
Operation Process of the Model1. Definition of the indicators:
defined indicators describing the value constituents* Conducted interviews with experts to confirm whether the experts
understand the definitions and agree with them * Seller side: focus group interviews* Buyer side: individual interviews* Target group: persons responsible for buying decisions and/or for
relationships with partners (tried to use the multiple informants methodology, in some cases: successfully)
Result: clarification of definitions and some modifications
Operation Process of the Model2. Validation of the constructs
* Questionnaires for the sellers and buyers
* Company selected: one oil company in Hungary
* Sample: 31 sellers, 15 buyers (test-sample)
* Target group: persons responsible for buying decisions and/or for relationships with partners
Operation Process of the ModelThe validation methods:
First generation methods: Cronbach alpha Item-to-total correlation Explorative factor analysis
Operation Process of the ModelThe validation methods:
Second generation methods: Confirmatory factor analysis Discriminant Validity:
Test of Χ2 -differences Fornell-Larcker criteria
Operation Process of the Model
Reliability analysis Explorative Factor analysis
EconomicValue
Indicator Item-to-Total Correlation
Cronbach Alpha
Factor loading Total variance explained
S12 S11_1 0.71 0.92
S11_2 0.71 0.83 0.92 85%
S21 S21_3 0.58 0.88
S21_4 0.41 0.77
S21_5 0.29 0.59 0.57 57%
S31 S31_6 0.55 0.78
S31_7 0.73 0.86
S31_8 0.69 0.85
S31_9 0.48 0.79 0.68 63%
The supplier’s perception
Operation Process of the Model
Reliability analysis Explorative Factor analysis
Economicvalue
Indicator Item-to-Total Correlation
Cronbach Alpha
Factor loading Total variance explained
S41 S41_10 0.59 0.89
S41_11 0.59 0.75 0.89 79%
S41_12 To eliminate
S51 S51_13 0.28 0.80
S51_14 0.28 0.44 0.80 64%
S51_15 To eliminate
S61 S61_16 0.66 0.84
S61_17 0.82 0.93
S61_18 0.75 0.86 0.90 79%
The supplier’s perception
Operation Process of the Model
Reliability analysis Explorative Factor analysis
Economicvalue
Indicator Item-to-Total Correlation
Cronbach Alpha
Factor loading Total variance explained
S71 S71_19 0.26 0.81
S71_20 0.54 0.94
S71_21 0.59 0.69
S71_22 0.18 0.59 0.20 51%
S71_23 To eliminate
S81 S81_24 0.78 0.91
S81_25 0.78 0.92
S81_26 0.64 0.85 0.82 78%
S61 S91_27 0.24 0.42
S91_28 0.51 0.76
S91_29 0.53 0.81
S91_30 0.42 0.62 0.76 49%
The supplier’s perception
Operation Process of the ModelResults of the first and second generation-
methods for both the seller and buyer samples and economic and social values:
Good or satisfactory statistical results EFA proves almost in all cases the hypotesis
of one-dimensionality CFA proves the latent variables are
measured by the indicators at a satisfactory level (some eliminations or re-assignment are necessary)
Ongoing and further researchApplication of the second generation methods: Confirmatory factor analysis Test of the sub-constructs as measurement models
(each value-constructs) Test of the integrated model (it means the 9 value
constituents of the economic and social value types) After the evaluation of the pretest with the sellers
and buyers we do some modifications in some set of indicators (eliminations)
Ongoing and further researchThe set of indicators are finalized after the
pretest
Data collection for the main samples will be conducted at the same company
Conclusion after the pretest
At this stage of pretest we can suppose:
Integrated Value Model seems to be adequate (with some changes compared to the initial model)
Indicators measure well value constituents (latent variables)
Business relationship value always contains the economic and the social value types
Map of dyads (buyer-supplier pairs)The map is in a test-phase The map is calculated based on differencies
between the buyer and seller evaluation Similarities and differencies of the positions
can be explained mainly by being in other business, less with other parameter of the dyad
Value of relationship variables – economic Value constituents Supplier Average value Buyer Average value
1 Possibility of manufacturing of the product
7.33 Recognition of the product
8.80
2 Importance of the product for the buyer
8.20 Importance of the product for the supplier
8.83
3 Sustainability of financial conditions
12.42 Sustainability of financial conditions (B31)
10.83
4 Profitability of the realationship
7.83 Profitability of the realationship
6.59
5 Reduction of transactional costs
4.36 Reduction of transactional costs
6.35
6 The income potential of the relationship
10.64 The supply potential of the relationship
10.62
7 The role of the relationship with the buyer
10.46 The role of the relationship with the supplier
13.08
8 Network potencial 10.32 Network potencial 13.11
9 The related effect 10.24 The related effect 8.05
Average value Economic value constituents of supplier
9.08 Economic value constituents of buyer
9.58
Value of relationship variables - socialValue constituents Supplier Average value Buyer Average value
1 Personal relationships 5.31 Personal relationships 5.84
2 Satisfaction with the product
12.78 Satisfaction with the product
6.66
3 Security in product sales
5.73 Security in product supply
14.10
4 Smoothness of the relationship (routines)
13.43 Smoothness of the relationship (routines)
15.53
5 Security of the relationship
15.97 Security of the relationship
11..88
6 Competence of the buyer
10.30 Competence of the supplier
10.96
7 Emanation of the relationship
12.34 Emanation of the relationship
9.96
8 The buyer’s position in his own industry
15.77 The supplier’s position in his own industry
19.49
9 The non-market strategy of the buyer
12.54 The non-market strategy of the supplier
12.89
Averagage value Social value constituents
11.57 Social value constituents
12.51
Matching of evaluations
Differences between the supplier’s and buyer’s evaluation: no big discrepancies
The buyer’s total evaluation is slightly higher, than the supplier’s evaluation
There are some fluctuations in differencies
Ongoing and further researchTo formulate the final version of model
To find some focuses for the further research that can be pointed out and investigated more in detailes
Theoretical goals: to prove how the relationships of the model work (levels – type of relationships)
Managerial implication: the matching of the elements and levels of the value perceived on the buyer and supplier sides