Trusting relationships and personal acquaintance : implications for business friendships

Friendship is very often a component of business relationships. Organisations frequently have relationships with their suppliers, customers and collaborators that could be described as 'friendly'. However, there is little comparative evidence concerning the extent to which business friendships resemble true social friendships. This article illustrates some differences that may exist between social and business friendships, with particular reference to the extent that interpersonal relationships are trusting, and are based on the nature of personal acquaintance. This means that managers need to understand the differences between business and personal friendships and adjust the type of interactions they, and those who report to them. have with customers, suppliers, collaborators, and the like. [ABSTRACT FROM AUTHOR]

Business relationship development and management in China

The Australian Government's White Paper on Australia in the Asian Century, released in October 2012, is based on the premise that the transformation of the Asian region into the world's economic powerhouse is not only unstoppable, it is gathering pace. Asia's extraordinary ascent has already changed the Australian economy, society and strategic environment. Within a few years, Asia will be the world's largest producer of goods and services, as well as the largest consumer market and the home of the majority of the world's middle class. The White Paper notes that thriving in the Asian century requires the Australian nation to have a clear plan to seize the economic opportunities and manage the strategic challenges that will arise, by taking a farsighted approach focused on fairness. To do so, Australians must be Asia-literate and Asia-capable, with a thorough understanding of Asian cultures and languages. These capabilities are needed to build stronger connections and partnerships across the region. Australia's commercial success in the region requires that highly innovative, competitive Australian firms and institutions develop collaborative relationships with others m the region. Australian firms need new business models and new mind-sets to operate and connect with Asian markets. Against this backdrop, this chapter discusses several important issues relating to Australian firms developing and managing their business relationships in China, in the context of urban planning, architecture, civil engineering and construction. The chapter examines the Chinese business environment, in terms of guanxi, business opportunities, risks and strategies, in a case study of the successful partnerships established to manage the 'Water Cube' for the Beijing Olympic Games in 2008.

Customer-focused CRM: a marketing challenge for organizations

The article explains that CRM is all about building longterm business relationships with customers. It is best described as the blending of internal business processes: sales, marketing and customer support with technology. Research indicates that poor project planning, weak and
incomplete business cases, cost and complexity of the technology, lack of.technological skills, lack of system integration and lack of senior management involvement in the CRM process are among the many factors that inhibit the successful adoption ofCRM in companies. The article presents a framework for customer centric CRM.

Analysis of stakeholder concerns with a view to avoid organisational conflict in B2B systems

In recent years there has been a remarkable increase in information exchange between organizations due to changes in market structures and new forms of business relationships. The increase in the volume of business-to-business (B2B) transactions has contributed significantly to the expanding need for electronic systems that could effectively support communication between collaborating organizations. Examples of such collaborating systems include those that offer various types of business-to-business services, e.g. electronic commerce, electronic procurement systems, electronic links between legacy systems, or outsourced systems providing data processing services via electronic media. Development and running of B2B electronic systems has not been problem free. One of the most intractable issues found in B2B systems is the prevalence of inter-organisational conflict reported to exist and persists between the participants of interorganisational electronic networks. There have been very few attempts, however, to prescribe any practical method of detecting the antecedents of such conflict early in B2B development to facilitate smooth construction and the subsequent operation of B2B services. The research reported in this paper focuses on the identification and analysis of antecedent conflict in a joint process involving different organizations in a B2B venture. The proposed method involves identification of domain stakeholders, capturing and packaging their views and concerns into a reusable form, and the application of captured domain experience in B2B systems development. The concepts and methods introduced in this paper have been illustrated with examples drawn from our study of six web-enabled payroll systems.

Re-examining relationship development

Research examining marketing relationships has not traditionally discussed the fact that business-to-business relationships strengthen and weaken over its life. The model also suggests relationship inactivity is not necessarily the same as relationship failure. The paper proposes a model that allows relationships to move in multiple directions over their existence.

Client identification and money laundering control : perspectives on the Financial Intelligence Centre Act 38 of 2001

The Financial Intelligence Centre Act 38 of 2001 (FICA) compels certain persons and institutions (defined as "accountable institutions'') to identify and verify the identity of a new client before any transaction may be concluded or any business relationship is established.1 Accountable institutions are listed in schedule ¹ to FICA and include banks, brokers, financial advisers, insurance companies, attorneys and estate agents. This duty to identify new clients came into effect on 30 June 2003. However, FICA also requires a similar procedure to be followed in respect of all current clients. Current clients are those with whom an accountable institution had business relationships on 30 June 2003.² After 30 June 2004 an institution may not conclude a transaction in the course of its business relationship with an unidentified current client, until it has established and verified that client's identity as prescribed. An institution that concludes any transaction in contravention of this prohibition, commits an offence and is liable to a fine not exceeding R10 million or to imprisonment of up to 15 years.³

The majority of accountable institutions and their clients failed to meet the June 2004 current client identification deadline.4 This failure posed serious economic and legal risks. With a few days to spare, the minister of finance granted a partial and temporary exemption in respect of these requirements. This article explores the statutory scheme for identification and re-identification of clients and some of the practical problems that were encountered. The June 2004 exemptions from these requirements are also considered and proposals for law reform are made.

The discussion of the FICA identification scheme necessitates the following brief overview of the international and South African money laundering control framework.

1 s 21(1) of FICA.
2 s 21(2) of FICA. See also s 82(2)(b).
3 s 46(2) of FICA read with s 68(1) of FICA.

Inactivity and the dynamics of relationship development : a proposed model

Much of the relationship development literature assumes that business relationships evolve along a standard path that often ends in failure. However, this overly restrictive assumption ignores that firms can reactivate dormant relationships. To relax this assumption, we focus on this dormant stage and posit that it reflects either naturally occurring pauses or consecutive shifts – first divergent and then convergent – in partnering needs. Ultimately, we proffer an inactivity-inclusive model that augments current dynamic process models and may help firms to manage all their relationships, active and inactive.

The roles of social bonds in the Australian tourism network

There is limited published research on the social bonds between employees in two organizations. This paper aims to examine 1) relationships in the Australian tourism industry, 2) the nature and role of social bonds and commercial friendships, 3) the nature and roles of the investments in economic and social resources, and 4) the nature of personal relationships in the tourism network. The perspective and attitudes of the tourism network participants become clear and their vested interests are highlighted. Network pictures are developed for the 5 key sectors of this industry. The adaptations of these sectors are also discussed. The nature and role of social bonds and commercial friendships is examined. The Leximancer program is used to qualitatively analyze interview transcripts. Findings show the centrality of relationships in this industry and the importance of social bonds to the travel agency sector. This study provides additional insight into the nature of social bonds in the development of successful business to business relationships. A discussion of antecedents and outcomes of social bonds will be further developed.

Reasons why dissatisfied customers exhibit behavioral loyalty

The development of supplier loyalty and its potential application to the business-to-business settings has not been widely explored. Day (1969) cautions that loyalty viewed in terms of purchase decisions may not distinguish between loyalty and spurious loyalty. This study follows the composite loyalty approach providing both behavioral aspects (purchase intentions) and attitudinal loyalty in order to fully explain the concept of supplier loyalty. This framework has not been previously applied in the B2B literature.The objective of this research is to identify reasons why B2B customers do not show consistency between attitudinal and behavioral loyalty and why dissatisfied customers do not switch suppliers. A survey was conducted during 2006 with a sample of executives from 240 SME companies in a large Asian city. A range of measures was obtained including attitudinal loyalty, behavioral loyalty, satisfaction and open ended responses on nature of current problems. Following Dick and Basu (1994), customers are classified into loyalty groups. Customers having high and low attitudinal loyalty are compared on satisfaction, switching attitudes and problems within the relationship. Constraints to switching by the dissatisfied customers are discussed. A profile of the "Spurious Loyal" customer is provided. This study seeks to better understand the nature of dissatisfaction and loyalty within these long term focal relationships.

International sport marketing : practical and future research implications

Purpose – Sport is a global product and service that many people around the world enjoy playing, watching and participating in. Whilst there has been an abundance of global media attention on sporting events such as the Olympics and World Football Cup, there seems to be a lack of integration between the sports marketing and international business disciplines both from a practical and also academic standpoint. This paper aims to discuss international sport marketing and why it is an important attribute of business-to-business marketing.

Design/methodology/approach – The aim of the paper is to provide practical implications and research avenues for those seeking to further investigate international sport marketing as a unique area of academic research. The introduction to the paper focuses on the importance of sport to the global economy and how entrepreneurship is ingrained in many sport businesses and organizations. Next, different areas of international business management that relate to entrepreneurial sport marketing ventures are discussed in terms of future research directions and practical implications. These include how entrepreneurial sport ventures affect internationalization, branding, corporate social responsibility, tourism, regional development, marketing and action sports.

Findings – The paper concludes by finding that there are numerous research avenues for future research on international sport marketing that combine different areas of marketing together with the sport marketing and international business literature. In addition, there is enormous potential for linking the sports marketing and international business literature through focusing on entrepreneurial sport ventures that occur worldwide.

Research limitations/implications – The authors demonstrate the need to take an international perspective of sports marketing and business-to-business relationships.

Practical implications – The paper discusses how and why sport firms interact in the international marketplace and how future competition will benefit from more sport-based business-to-business partnerships.

Originality/value – The paper examines the important area of international sports marketing and how businesses that are both profit and non-profit orientated collaborate. The paper explores the concept of international sports marketing, and discusses the practical and future research implications of this exciting new field of marketing research.

Small businesses as social formations : diverse rationalities in the context of e-business adoption

Small-business adoption of electronic business has been analyzed largely in conventional business terms such as benefits and costs, returns on investment, and competitive advantage. While these factors are important, small businesses are also embedded in social contexts which shape the rationalities with which they approach e-business. These rationalities are different from those that characterize larger businesses. They involve personal relationships, social esteem, lifestyle issues, and family considerations. Drawing on the theoretical work of Granovetter and Weber, this chapter examines interview data from a number of Australian studies of e-commerce by small businesses. These interviews illustrate the influence of the social context on the adoption (or deferral) of e-commerce. By recognizing that small businesses are social as well as economic formations, governments can tailor their programs to assist this important group of businesses in their approach to e-business.

Kokusaika and Internationalisation: Australian and Japanese sister city type relationships

Sister city type relationships at local government level form an important part of Australian-Japanese relations. The original concept of sister cities was to increase international understanding and peace at local level. Over the years, that concept has changed and there is now a robust debate over the inclusion of commercial exchanges into sister city type relationships. This article describes the context of this debate by analysing the different perceptions of sister city type relationships in Australia and Japan. It begins with a discussion of the public policy contexts of sister cities in both Australia and Japan. The second section deals with an analysis of the results of surveys in Australia and Japan. Finally, case studies of two important issues related to SCTRs are discussed: economic and business relations and community involvement. The article concludes by suggesting that sister city type relationships between Australia and Japan are dependent upon the over-arching public policy contexts and sometimes lead to mismatched expectations between the two countries.

E-marketing in perspective: a three country comparison of business use of the Internet

Presents an inter-country comparison of the business use of the Internet as part of a competitive marketing strategy. Firstly, examines online marketing strategy, reporting that the professed benefits from Internet use are mostly illusory, particularly for the small business sector. Next, describes a survey of 400 businesses in Australia and New Zealand plus a questionnaire survey of 140 business-to-business marketing organizations in the UK and compares the results in terms of the strategic function, marketing communication function, marketing logistics function and relationship management function. Discovers that there are both similarities and differences in the way the three countries use the Internet. Reports that the major difference is in the strategic use of the Internet to gain competitive advantage, improve cost-effectiveness and relationship management, with Australian and New Zealand firms using the Internet to communicate with local firms and maintain relationships at a local level to support sales made through traditional channels.