Michèle Paulin

Contractual Governance, Relational Governance, and the Performance of Interfirm Service Exchanges: The Influence of Boundary-Spanner Closeness

Academics and managers are confronted with reconciling the social and economic aspects of business-to-business exchanges. In a service context, the authors investigate the relative importance of contractual and relational governance on exchange performance and the influence of the boundary spanner on the implementation of these governance mechanisms and on exchange performance. They test a model of the governance of commercial banking exchanges using interview data with both parties to the exchange (the account manager as the bank’s boundary spanner and the business client). Relational governance is the predominant governance mechanism associated with exchange performance. Contractual governance is also positively associated to exchange performance, but to a much lesser extent. The closeness of the account manager to the client company in terms of information gathering is also positively associated to exchange performance. However, this is mediated through both contractual and relational governance mechanisms with relational governance being the stronger mechanism.

Customer sociability and the total service experience

Purpose – The service‐dominant logic describes customer‐actualized value as being idiosyncratic, experiential, contextual, and meaning laden. Since positive word‐of‐mouth (WOM) is an expression of customer‐actualized value, the paper postulate that WOM is not only related to a holistic set of assessments of the service experience but also to the idiosyncratic nature of the individual customer. In particular, do socially oriented individuals have a greater propensity to engage in positive WOM? The purpose of this paper is to test hypotheses that socially oriented personality traits, and personal values as well as a set of dimensions of the total service experience, are antecedents of positive WOM. The context studied is a surgical operation involving considerable personal meaning and implication in the whole service process.Design/methodology/approach – A cohort of 500 surgical patients are studied prior to, three‐days after and one‐month post‐surgery. Independent variables include the socially oriented pe...

Business effectiveness and professional service personnel Relational or transactional managers

This empirical study of commercial banking relationships in France demonstrates that, despite the current emphasis on new technology, contact personnel remain important for the success of professional business‐to‐business services. When account managers are changed, the business clients feel that their relationship with the bank is weaker and they judge the bank to be less client oriented. More important for the bank’s future profitability is the finding that changing account managers is negatively associated with the bank’s external effectiveness, as measured by the client’s judgement of satisfaction and service quality, by their purchase intentions and by their willingness to recommend the bank. Also, the business clients who change account managers express a greater likelihood of switching banks. In addition, the study points out the divergence between the transactional sales approach of the bank and the relational perspective of the business client. Commercial banks tend to overestimate both the degree to which they are client oriented and the benefits of technology as a substitute for human interactions with their business clients.

Relational contract norms and the effectiveness of commercial banking relationships

Bases the present study, on Macneil’s relational contract theory and illustrates the conceptual and managerial importance of relational norms in a business‐to‐business service context. Demonstrates a clear link between the client’s perception of the strength of the bank‐client relationship, as measured by relational norms, and the client’s intention to continue to purchase financial services and to purchase new financial services, willingness to recommend both the account manager and the bank to business colleagues and, assessment of satisfaction and judgement of service quality. Finds significant differences between the assessment of the strength of the relationship by account managers and client‐company representatives; these differences would have important managerial implications in the context of commercial banking.

Assessing service management effectiveness in a health resort: implications of technical and functional quality

This study assessed the technical (tangible) and functional (human interaction) quality of services in a first‐class international health resort and related these to service management effectiveness. Service management is effective when customers judge the overall service quality to be good, they are highly satisfied, they are willing to recommend the firm to others and they intend to re‐purchase or are predisposed to purchase additional services from the firm. The technical and functional aspects of services quality and their relation to service management effectiveness, were found to be different between the core and supplementary services, between customers and service personnel and between customers with and without experience. The results support the statement that competitive advantage in this industry can be obtained by improving the functional aspects of services management, by better performance of supplementary services and by reducing the gap in perceptions between customers and contact personnel.

Relational norms and client retention: external effectiveness of commercial banking in Canada and Mexico

This study was designed to assess the theoretical and managerial implications of relational norms in two distinct business contexts within the same service industry. The relationship between commercial banks and client‐companies was studied using matched pairs of account managers and company representatives in Canada and Mexico. This research indicates that: relational as well as short‐term economic variables are important for successful commercial banking; front‐line personnel may not accurately assess the client’s reality; contextual differences are important with regard to both the theory and practice of management in banking.

External effectiveness of service management A study of business‐to‐business relationships in Mexico, Canada and the USA

The purpose of the present study was to determine, across three distinct national contexts, to what extent the creation of customer‐perceived value, as determined by the measure of the firm’s external effectiveness, was deemed important and implemented within a professional business‐to‐business service industry (commercial banking). External effectiveness is a measure of business performance reflecting the client’s judgement of satisfaction, service quality, future purchase intentions and willingness to recommend the service firm to others. It was postulated that strong relationships would contribute to external effectiveness and that, in order to be effective, a service firm needs to be client‐oriented and develop managerial processes and an organizational culture compatible with the creation of client‐perceived value, the driver of longer‐term profitability. In all three countries, the higher the business client rated the strength of the relationship with their bank, the higher was their assessment of external effectiveness. However, the banks’ service management processes supporting the work of the account manager and the dominant organizational culture were not congruent with the bankers’ perception that their organizations were client‐oriented. Important differences were found in the banking relationships and managerial processes in Mexico as compared to Canada and the USA.

Relational Norms in Interfirm Exchanges: From Transactional Cost Economics to the Service-Dominant Logic

Purpose: This article investigates the implication and importance of the service-dominant (S-D) logic to the increasingly relevant study and practice of Interorganizational relational exchange. It points out that relational exchange theory (norms) is an earlier reflection of the S-D logic. Recognizing a need for the transactional cost economics (TCE) framework to address bilateral or hybrid types of exchanges, marketing channel researchers have for over twenty years incorporated relational exchange theory (RET) and TCE to investigate problems of formal contract, environmental uncertainty, power/dependency, and opportunism. However, some theoreticians view relational modes of exchange to be broader in scope than that studied within TCE. We propose a conceptual framework that incorporates TCE constructs with S-D logic principles in order to provide a rich contemporary guide for future relational exchange research and practice. Methodology/Approach: We first expose the essential elements of the S-D logic and describe relational exchange theory and the problems generated by TCE. Database searches reveal a continuous stream of fifty empirical studies between 1988 and 2009 in which Macneils relational norms were operationalized in the context of interfirm exchanges. The studies are analyzed from the viewpoint of TCE and the emerging S-D logic. The empirical findings were also discussed in terms of their contribution to validating a fundamental premise of the S-D logic. Subsequently, using S-D logics conception of operant resources, we suggest several avenues for developing questions and conducting future relational norms research. Empirical Findings: The findings validate the fundamental assumption of S-D logic, that relational exchange is instrumental in the co-creation of value (exchange performance) whether service is rendered directly or indirectly through goods or a combination of both. Exchange performance is better when the formal contract exists within a relational context. Relational exchange is effective in contexts of both high and low environmental uncertainty, may attenuate the negative effects of power/dependency differences and mitigate opportunistic behavior. Originality/Value/Contribution: This article is a comprehensive review of relational norms research. It links the empirical findings conducted within the combined conceptual approaches of relational exchange theory and the TCE framework. It provides a comprehensive discussion of the essentials of the S-D logic and its compatibility with previous relational norm research. It outlines an S-D logic inspired framework for future research linking operant resources (knowledge, skills, and technology) to relational norms, facilitators of service-for-service, and value co-creation in interorganizational exchange networks.

Effectiveness of Relational and Transactional cultures in commercial banking: putting client‐value into the competing values model

This paper has four purposes. First, it points out and explains why the Market‐type culture, is not the culture type most conducive to business performance. This Market‐type culture reflects mainly a Transactional approach to the market rather than a longer term Relational approach to clients. Second, a modification of the CVM is presented which forces the respondents to weigh the value their firm places on the client or customer compared with the other competing values in the model. This modified version can be used to describe organizational cultures which are more Relational or Transactional in nature. Third, an empirical study of commercial banking relationships in France indicated that business effectiveness was greater when both parties in the exchange (account manager and business client) perceived their respective organizations to be Relational‐type cultures. Conversely, the worst business performance was found when both organizations had Transactional‐type cultures. Fourth, the managerial implications of the paper are discussed in the context of commercial banking.

Reconciliating Literature About Client Satisfaction and Perceived Services Quality

ABSTRACT The objective of this paper is to review the literature on client satisfaction and perceived quality of service in order: (1) to arrive at distinct definitions of both constructs, and, (2) to present a conciliatory model of the causal link between client satisfaction and perceived service quality. This will put an end to: (1) the confusion surrounding the conceptual definitions of satisfaction and perceived quality, and (2) contradictions in the conclusions about the causal link between these two constructs.