“Good Times–Bad Times” – Relationship marketing through business cycles

Abstract

Business cycles (BCs) can alter the conditions for long-term business-to-business (B2B) relationships. Based on relationship marketing (RM) and interorganizational learning theories, the authors propose a model that explains relationship configurations that reveal opportunities under economic uncertainty. In the Pilot Study, the authors identify key mechanisms of RM process (communication openness, technical involvement, and customer value anticipation) and performance outcomes (price, cost-to-serve, and expectation of relationship continuity) from the supplier’s view. In Study 1, the proposed model is tested with a sample of large size, market leader firms in times of economic crisis (T₁). In Study 2, conducting a multi-group analysis, the same sample is used to test the model in times of recovery/expansion (T₂). The findings offer directions for suppliers on how to leverage B2B relationships through a BC. Particularly, the authors indicate that supplier’s performance is influenced differently by RM mechanisms during times of economic crisis versus times of recovery/expansion.