Tags:B2B, Emerging Markets, Innovation Adoption, Innovativeness and Relationship Marketing
Abstract:
B2B marketing research has made significant inroads into examining emerging market (EM) phenomenon, which as the theoretical and empirical evidence shows, operates differently than developed markets. This is especially true of interfirm relationship dynamics, where social contracts, local culture, unique institutions, and special forms of relationships (e.g., Guanxi in China) that are unique to EMs require distinct relationship management protocols. However, our understanding of how interfirm relationships in EM settings influence one firm’s (i.e., supplier) decision to be innovative and another firm’s (i.e., customer) decision to adopt innovations is lacking. This research fills that void by adopting a social exchange framework to show how supplier innovativeness can build trust and commitment among customers, which in turn leads to positive innovation adoption decisions on the latter’s part. Data collected from a large sample of top-level Chinese B2B executives shows that when interfirm communications are weak, supplier innovativeness can serve as a basis on which customers build trust in a supplier. This is due to the voluntary, innovative investments that a supplier commits that can benefit a customer. This, in turn, forges a reciprocal obligation or commitment on the part of customers which manifests in favorable adoption decisions.
Innovation and Adoption in Emerging Industrial Markets: the Role of Trust and Commitment in Interfirm Relationships