Ngoc Luu

Outcome versus process value in service delivery

Purpose: This study is embedded in social exchange and transaction cost theories. The objective is twofold: First, to compare the relative importance of process value and outcome value in building affective and cognitive relationship strength; and second, to compare the relative effects of each type of relationship strength on attitudinal and behavioral loyalty. Design/methodology/approach: This empirical study features a quantitative approach. The sample comprises 167 business-to-business (B2B) customers of a large transportation and logistics company in Vietnam. Findings: Process value and outcome value have different effects on affective relationship strength: The effect of process value is greater than that of outcome value. In addition, cognitive strength has a stronger impact on both attitudinal and behavioral loyalty than affective strength. Research limitations/implications: These insights extend extant literature regarding the process and outcome components of the service assessment. Further studies also should employ a cross-industry, cross-country sample to examine the potential moderating effects of country- or industry-specific factors. These findings show B2B managers how to make appropriate resource allocation and investment decisions to enhance relationship strength and resulting customer loyalty. Originality/value: To clarify the links among customer value, relationship strength and customer loyalty, this study examines the relative importance of rational and non-rational factors (i.e., process value vs. outcome value; affective strength vs. cognitive strength) for relationship performance. Unlike most prior research, this study is set in the B2B context of a developing country.

Governance mechanisms and total relationship value: The interaction effect of information sharing

Purpose: The objectives of this study are to examine how contractual and relational governance mechanisms influence total value created in a buyer-supplier relationship and to investigate how suppliers information sharing and information sharing asymmetry between two exchange parties differentially moderate these associations. Design/methodology/approach: The study is conducted with a sample of 110 buyer-supplier matched dyads in various industries in Vietnam. Findings: This study confirms that contractual governance and relational governance have curvilinear effects on total relationship value. Governance mechanisms have distinct interactions with supplier’s information sharing and information sharing asymmetry to influence total relationship value. Research limitations/implications: Future study could expand the sample to various countries to investigate the role of cultural factors in the effects of contractual and relational governance. Practical implications: The study draws implications for supplying managers about how to govern a relationship with a buying firm with which they are sharing information. It also provides implications about how to use contractual and relational governance to control the effects of supplier’s information sharing, information sharing asymmetry, on total relationship value. Originality/value: The study extends the information sharing literature by looking into the effect of supplier’s information sharing on both parties’ relationship value. It contributes to the governance literature by investigating curvilinear effects of contractual and relational governance on relationship performance.