With respect to the Northumbrian Water suppliers, Bensaou’s portfolio of buyers supplier relationship model is adopted to segment or categories suppliers. After segregation into different types of suppliers, Northumbrian Water choses to engage with its top 50 suppliers which indicate most of them to fall into the strategic partnership segment of the Bensaou’s portfolio. This indicates high trustworthiness, early supplier involvement and that these suppliers and buyers customize, specialize, differentiate, adapt, learn and innovate its supply processes according to the changes and requirements through exchange of information and expertise. In a strategic partnership the buyer and supplier tend to engage in a close long term relationships with constant exchange of information between the partnership to understand and work towards future goals in a more strategic and sustainable manner. Long-term relationship partnerships don’t start existing over night, (Zhand, 1972) suggests that trust is the ‘‘conscious regulation of ones dependence on the other that will vary with the task, the situation, and the other person…’’. This trust can be seen a concept of behavior that delivers suitable information, enables a mutual influence between the buyer and seller, promotes self-control and avoids the taking of undue advantage of the vulnerabilities of the others. According to (Spekman et al., 1997b; Yoshino and Rangan, 1995), trust is developed through personal relationships built over time with regular interactions. It is also important to remember that once the trust is dishonoured it often becomes very difficult to gain it back. This denotes that trust plays and important factor in maintaining a long-term business relationship while engagin... ... middle of paper ... ...ets, 2nd ed., London: The Dryden Press • Cousins, P. et al (2008). Strategic Supply Management. England: Pearson Education Limited • Lysons, K. and Farrington, B. (2005). Purchasing and Supply Management, 7th ed., England: Pearson Education Limited • Johnson, G., Whittington, R. and Scholes, K. (2011). Exploring strategy Text & Cases, 9th ed., England: Person Education Limited • Lambert, D.M. (2008) Supply Chain Management: Processes, Partnerships, Performance, Sarasota. Florida: Supply Chain Management Institute • Harrison, A. and Van Hoek, R. (2008) Logistics Management and Strategy, 3rd ed., England: Pearson Education • Yoshino, M., Rangan, U., (1995). Strategic Alliances. Boston, USA: Harvard Business School Press. • Spekman, R., Isabella, L., MacAvoy, T., Forbes, T., (1998). Alliance Management: A View From The Past And A Look To The Future. Oxford, UK:
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As we become better at measuring trust, we also become better at increasing trust. As we do this we turn this so-called intangible into a hard-edged, economic driver, enabling us to increase the dividends in our organizations and also our reputation. The practical relevance of this is that trust is the strongest predictor of consumer satisfaction (Rawlins, 2007). Due to its importance, trust should be measured and included as a critical indicator on the dashboard of any organization concerned about its global relationship and reputation
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In order to build a strong relationship between companies there must be a trust. So trust played a big role in this case. A good example in this case was that inland steel “concern that a single-sourcing policy might cause it to lose touch with the market”. On the other hand, whirlpool “concerned about the technological risks of relying on only one supplier”. However, building a trust relationship between them was the best solution by the belief that both companies will be a low-cost
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Both from the customer and the company point of view, each customer interaction is part of an iterative learning process (Ballantyne, 2004). Further, Yau et al. (2000) advocated that the relationships between business firms and its customers have been constantly encouraged as successful business practices worldwide. The strategy of relationship marketing is of high relevance particularly in the service industries because of the intangible nature of service and their high level of customer interaction (Al-Hersh, Aburoub, & Saaty, 2014). Relationship marketing is defined as the process of engaging in proactively creating, developing and maintaining committed, interactive and profitable exchanges with targeted customers (Haker, 1999). Furthermore, Gronroos (1990) asserted that relationship marketing is to establish, maintain, enhance and commercialise customer relationship so that the objectives of the parties involved are met which can be done by a mutual exchange and fulfillment of promises. Moreover, the implementation of the relationship marketing concept at the operational level refers to relationship marketing orientation (Hau & Ngo, 2012). Relationship marketing orientation indicates the firms’ philosophy of doing business concerning relationship building by propagating developing trust, empathy, bonding, and reciprocity between a firm and its customers (Sin et al., 2005a, b; Tse et al., 2004). Trust is an important element for a successful relationship between the firm and its customers (Berry, 1995). First, trust is an essential component for a successful relationship between the firm and its customers (Berry, 1995). Trust It refers to a willingness to rely on an exchange partner in whom one has confidence (Morgan & Hunt, 1994). Empathy, as a dimension of business relationship, enables the two parties to see the situation from
Partnerships, that started in 1990s (Higgins, 1998), begins with the expectation that each party would achieve far greater goals than each ever may by working individually (Kumaran et al., 2010). It was later classified as statutory, voluntary, commercial or contractual (Geddes, 2005) having components, like, joint planning, operating controls, communications, risk or reward sharing, trust, contract style and investment (Lambert, 2008). Therefore, it is mainly dependent on analysis of need, gap, opportunities, expectation, discussion, consensus, commitment, goal, rules, planning, responsibilities, motivation, negotiation, evaluation and recognition (Anandajayasekaram and Puskur, 2010). Further, there is a need to identify the “Partnership-performance parameters” (Waal et al, 2010). On the other
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Commitment Theory - Trust is suggested by demonstrating that trust and commitment are two main aspects for measuring the relationship quality. By integrating the perspectives of different researches, quality is measured in terms of trust, commitment, culture, interdependence, and contact. Although there is no agreement on the components of the relationship quality, generally, satisfaction and trust have been accepted as two important factors for measuring the relationship (Chakrabarty et al, 2007). Service providers can make long-term and stable relationships with their customers through customer satisfaction and trust and ultimately attract their loyalty. Therefore, in this research, the focus is on trust and satisfaction from the customer's perspective and the relationship quality. Creating customer loyalty is the most important goal of conducting relationship marketing activities. Oliver (1997, p. 3) defines customer loyalty as "a profound commitment to a product or service that leads to repeat purchase of brand or the set of the brand in the future, surely with situational factors and marketing efforts that