Digital Media as a Game-Changer in B2B Buyer-Vendor Relationships

Source:
By:Werner Krings, Roger Palmer, Michael J Harrison, Alessandro Inversini

DOI: https://doi.org/10.30564/jsbe.v5i3.17

Abstract:

Purpose: The article examines the role of digital and, in particular, social media in business-to-business marketing in the international software industry. The authors responded to calls for empirical research on how these media impact buyer-vendor relationships and the conjunction of the marketing and sales processes, particularly the distribution of complex software solutions. This paper develops a digital framework and discusses the managerial consequences. Design/methodology/approach: The model arises by merging themes derived from literature, experts, and job descriptions. Mixed Methods included conducting semi-structured interviews across marketing, business development, and sales executives from buyers, vendors, and third parties of various industries, supplemented by a survey of 530+ executives. Findings: Multinational companies secure competitive advantage through agile business processes to improve buyer-vendor relationships in the digital era. Digital media enable vendors to interact continuously with buyers, gather intelligence, and foster mutually beneficial, trustworthy, long-term relationships. The objective is to prompt transactions and secure revenue streams. Research limitations/implications: The outcomes of this research center on North America, Western Europe (including the UK), and DACH (Germany-Austria-Switzerland), affecting the generalizability. Originality/value: The research is novel and bridges several gaps concerning industrial relationships in digitalization: it merges buyer, vendor, and third-party’s perspectives on an international scale. It provides deeper insights into existing and new relationships by identifying relevant digital/social media platforms, the underlying usage motivation, and fundamental B2B processes. Finally, it equips practitioners with metrics to improve performance.

References:

Rodriguez, M., Peterson, R.M., Krishnan, V., 2012. Social media’s influence on business-to-business sales performance. Journal of Personal Selling and Sales Management. 32(3), 365-378. DOI: https://doi.org/10.2753/PSS0885-3134320306 Krings, W., Palmer, R., Inversini, A., 2021. Industrial Marketing Management Digital media optimization for B2B marketing. Industrial Marketing Management. 93, 174-186. DOI: https://doi.org/10.1016/j.indmarman.2021.01.002 Rodriguez, A., Rodriguez, Y., 2015. Metaphors for today’s leadership: VUCA world, millennial and “cloud leaders”. Journal of Management Development. 34, 854-866. DOI: https://doi.org/10.1108/JMD-09-2013-0110 Kohli, V., Paulowsky, R., Stanley, J., 2019. How digital is powering the next wave of growth in key-account management. McKinsey & Company, Marketing, and Sales Practice. Avlonitis, G.J., Karayanni, D.A., 2000. The impact of internet use on business-to-business marketing: examples from American and European companies. Industrial Marketing Management. 29(5), 441-459. DOI: https://doi.org/10.1016/S0019-8501(99)00071-1 Bernard, M., 2016. The impact of social media on the B2B CMO. Journal of Business & Industrial Marketing. 31(8), 955-960. DOI: https://doi.org/10.1108/JBIM-10-2016-268 Krings, W., Palmer, R., Inversini, A., 2019. Social media business usage – accelerator in B2B-business development and sales. Popma W and Francis S (Eds.), Proceedings of the 6th European Conference on Social Media, University of Brighton, UK. pp. 169-180. Suh, T., Houston, M.B., 2010. Distinguishing supplier reputation from trust in buyer-supplier relationships. Industrial Marketing Management. 39(5), 744-751. DOI: https://doi.org/10.1016/j.indmarman.2010.02.013 Wilcox, G.B., Sussman, K., 2014. Lead-generating social media strategies using the social media performance model: the B2B connection. Journal of Digital & Social Media Marketing. 2(1), 70-78. Brink, T., 2017. B2B SME management of antecedents to the application of social media. Industrial Marketing Management. 64, 57-65. DOI: https://doi.org/10.1016/j.indmarman.2017.02.007 Guesalaga, R., 2016. The use of social media in sales: individual and organizational antecedents, and the role of customer engagement in social media. Industrial Marketing Management. 54, 71-79. DOI: https://doi.org/10.1016/j.indmarman.2015.12.002 Lashgari, M., Sutton-Brady, C., Solberg Søilen, K., et al., 2018. Adoption strategies of social media in B2B firms: a multiple case study approach. Journal of Business & Industrial Marketing. 33(5), 730-743. DOI: https://doi.org/10.1108/JBIM-10-2016-0242 Buehrer, R.E., Senecal, S., Bolman Pullins, E., 2005. Salesforce technology usage–reasons, barriers, and support: an exploratory investigation. Industrial Marketing Management. 34(4), 389-398. DOI: https://doi.org/10.1016/j.indmarman. 2004.09.017 Agnihotri, R., Kothandaraman, P., Kashyap, R., et al., 2012. Bringing “social” into sales: the impact of salespeople’s social media use on service behaviors and value creation. Journal of Personal Selling and Sales Management. 32(3), 333-348. DOI: https://doi.org/10.2753/PSS0885-3134320304 Jussila, J.J., Kärkkäinen, H., Aramo-Immonen, H., 2014. Social media utilization in business-to-business relationships of technology industry firms. Computers in Human Behavior. 30, 606-613. DOI: https://doi.org/10.1016/j.chb.2013.07.047 Andzulis, J.M., Panagopoulos, N.G., Rapp, A., 2012. A review of social media and implications for the sales process. Journal of Personal Selling and Sales Management. 32(3), 305-316. DOI: https://doi.org/10.2753/PSS0885-3134320302 Schultz, R.J., Schwepker Jr, C.H., Good, D.J., 2012. Social media usage: an investigation of B2B salespeople. American Journal of Business (Emerald Group Publishing Limited). 27(2), 174-194. DOI: https://doi.org/10.1108/19355181211274460 Rodriguez, M., Ajjan, H., Peterson, R.M., 2016. Social media in large sales forces: an empirical study of the impact of sales process capability and relationship performance. Journal of Marketing Theory & Practice. 24(3), 365-379. DOI: https://doi.org/10.1080/10696679.2016.1170538 Brennan, R., Croft, R., 2012. The use of social media in B2B marketing and branding: an exploratory study. Journal of Customer Behaviour. 11(2), 101-115. DOI: https://doi.org/10.1362/147539212X13420906144552 Agnihotri, R., Dingus, R., Hu, M.Y., et al., 2016. Social media: influencing customer satisfaction in B2B sales. Industrial Marketing Management. 53, 172-180. DOI: https://doi.org/10.1016/j.indmarman.2015.09.003 Naudé, P., Sutton-Brady, C., 2019. Relationships and networks as examined in Industrial Marketing Management. Industrial Marketing Management. 79, 27-35. DOI: https://doi.org/10.1016/j.indmarman.2019.03.006 Rodriguez, M., Peterson, R.M., Ajjan, H., 2014. CRM/social media technology: impact on customer orientation process and organizational sales performance. Journal of Marketing Development and Competitiveness. 8(1), 85-97. DOI: https://doi.org/10.1007/978-3-319-10951-0_233 Bolton, R.N., Parasuraman, A., Hoefnagels, A., et al., 2013. Understanding Generation Y and their use of social media: a review and research agenda. Journal of Service Management. 24(3), 245-267. DOI: https://doi.org/10.1108/09564231311326987 Brennan, R., Croft, R., 2013. Using social media in business-to-business marketing. Available at: http://www.europeanfinancialreview.com/?p=873 (Accessed 10 July 2017). Borges, B., 2009. Marketing 2.0: bridging the gap between seller and buyer through social media marketing. Wheatmark, U.S.A. Michaelidou, N., Siamagka, N.T., Christodoulides, G., 2011. Usage, barriers, and measurement of social media marketing: an exploratory investigation of small and medium B2B brands. Industrial Marketing Management. 40(7), 1153-1159. DOI: https://doi.org/10.1016/j.indmarman.2011.09.009 Stephen, A.T., Galak, J., 2012. The effects of traditional and social earned media on sales: a study of a microlending marketplace. Journal of Marketing Research. 49(5), 624-639. DOI: https://doi.org/10.1509/jmr.09.0401 Tang, J., Kacmar, K.M.M., Busenitz, L., 2012. Entrepreneurial alertness in the pursuit of new opportunities. Journal of Business Venturing. 27(1), 77-94. DOI: https://doi.org/10.1016/j.jbusvent.2010.07.001 Ulaga, W., Eggert, A., 2003. Relationship value in business markets: development of a measurement scale. Institute for the Study of Business Markets Report. 2, 1-41. Grönroos, C., 2011. A service perspective on business relationships: the value creation, interaction, and marketing interface. Industrial Marketing Management. 40(2), 240-247. DOI: https://doi.org/10.1016/j.indmarman.2010.06.036 Pöyry, E., Parvinen, P., Mc Farland, R.G., 2017. Generating leads with sequential persuasion: should sales influence tactics be consistent or complementary? Journal of Personal Selling & Sales Management. 37(2), 89-99. DOI: https://doi.org/10.1080/08853134.2016.1275973 Kaplan, A.M., Haenlein, M., 2010. Users of the world, unite! The challenges and opportunities of Social Media. Business Horizons. 53(1), 59-68. DOI: https://doi.org/10.1016/j.bushor.2009.09.003 Wang, Y., Rod, M., Ji, S., et al., 2017. Social media capability in B2B marketing: toward a definition and a research model. Journal of Business & Industrial Marketing. 32(8), 1125-1135. DOI: https://doi.org/10.1108/JBIM-10-2016-0250 Keinänen, H., Kuivalainen, O., Karjaluoto, H., 2015. Antecedents of social media B2B use in an industrial marketing context: customers’ view. Journal of Business & Industrial Marketing. 30(6), 711-722. DOI: https://doi.org/10.1108/JBIM-04-2013-0095 Macdonald, E.K., Kleinaltenkamp, M., Wilson, H.N., 2016. How business customers judge solutions: solution quality and value in use. Journal of Marketing. 80(3), 96-120. DOI: https://doi.org/10.1509/jm.15.0109 Palmer, R., 2007. The transaction-relational continuum: conceptually elegant but empirically denied. Journal of Business & Industrial Marketing. 22(7), 439-451. DOI: https://doi.org/10.1108/08858620710828827 Storbacka, K., 2016. The digitalization drive: elevating strategic account management. SAMA Research, Strategic Account Management Association, Chicago, Illinois. Giglierano, J., Vitale, R., Mcclatchy, J., 2011. Business development in the early stages of commercializing disruptive innovation: considering the implications of Moore’s life cycle model and Christensen’s model of disruptive innovation. Innovative Marketing. 7(2), 29-39. Brennan, D.R., Turnbull, P.W., Wilson, D.T., 2003. Dyadic adaptation in business-to-business markets. European Journal of Marketing. 37(11/12), 1636-1665. DOI: https://doi.org/10.1108/03090560310495393 Benton, W., Maloni, M., 2005. The influence of power driven buyer/seller relationships on supply chain satisfaction. Journal of Operations Management. 23(1), 1-22. DOI: https://doi.org/10.1016/j.jom.2004.09.002 Gao, T., Sirgy, M.J., Bird, M.M., 2005. Reducing buyer decision-making uncertainty in organizational purchasing: can supplier trust, commitment, and dependence help? Journal of Business Research. 58(4), 397-405. DOI: https://doi.org/10.1016/S0148-2963(03)00137-1 Ellonen, H.K., Kosonen, M., 2010. Treat your customers as equals! Fostering customer collaboration through social media. International Journal of Electronic Marketing and Retailing. 3(3), 221-240. Vargo, S.L., Lusch, R.F., 2011. It’s all B2B… and beyond: toward a systems perspective of the market. Industrial Marketing Management. 40(2), 181-187. DOI: https://doi.org/10.1016/j.indmarman.2010.06.026 Ryan, C., 2016. The evolving journey of the B2B buyer. Available at: https://www.business2community.com/sales-management/evolving-journey-b2b-buyer-01433392 (Accessed 31 March 2020). Salminen, R.T., Möller, K., 2006. Role of references in business marketing–towards a normative theory of referencing. Journal of Business-to-Business Marketing. 13(1), 1-51. DOI: https://doi.org/10.1300/J033v13n01_01 Schultz, M., Doerr, J.E., Frederiksen, L., 2013. Professional services marketing: how the best firms build premier brands, thriving lead generation engines, and cultures of business development success. Hoboken, NJ: John Wiley & Sons, Inc. Davis, C.H., Sun, E., 2006. Business development capabilities in information technology SMEs in a regional economy: an exploratory study. The Journal of Technology Transfer. 31(1), 145-161. DOI: https://doi.org/10.1007/s10961-005-5027-1 Avlonitis, G.J., Panagopoulos, N.G., 2010. Selling and sales management: an introduction to the special section and recommendations on advancing the sales research agenda. Industrial Marketing Management. 39(7), 1045-1048. DOI: https://doi.org/10.1016/j.indmarman.2009.12.006 Kind, S., Knyphausen-Aufseß, D.Z., 2007. What Is “business development?” - the case of biotechnology. Schmalenbach Business Review (SBR). 59(2), 176-199. DOI: https://doi.org/10.1007/BF03396747 Brennan, R., 2015. CRM systems in industrial companies: intra- and inter-organizational effects. Journal of Business-To-Business Marketing. 22(3), 253-255. DOI: https://doi.org/10.1080/1051712X.2015.1051917 Lindgreen, A., Palmer, R., Vanhamme, J., et al., 2006. A relationship-management assessment tool: Questioning, identifying, and prioritizing critical aspects of customer relationships. Industrial Marketing Management. 35(1), 57-71. DOI: https://doi.org/10.1016/j.indmarman.2005.08.008 Jiang, Z., Shiu, E., Henneberg, S., et al., 2016. Relationship quality in business to business relationships – reviewing the current literature and proposing a new measurement model. Psychology and Marketing. 33(4), 297-313. DOI: https://doi.org/10.1002/mar.20876 Panahi, S., Watson, J., Partridge, H., 2012. Social media and tacit knowledge sharing: developing a conceptual model. World Academy of Science, Engineering and Technology. 64, 1095-1102. Lilien, G.L., 2016. The B2B knowledge gap. International Journal of Research in Marketing. 33(3), 543-556. DOI: https://doi.org/10.1016/j.ijresmar.2016.01.003 Salo, J., 2017. Social media research in the industrial marketing field: a review of the literature and future research directions. Industrial Marketing Management. 66, 115-129. DOI: https://doi.org/10.1016/j.indmarman.2017.07.013 Kuhn, K.a.L., Alpert, F., Pope, N.K.L., 2008. An application of Keller’s brand equity model in a B2B context. Qualitative Market Research: An International Journal. 11(1), 40-58. DOI: https://doi.org/10.1108/13522750810845540 Hoffman, D.L., Fodor, M., 2010. Can you measure the ROI of your social media marketing? Sloan Management Review. 52(1), 41-49. Vieira, A.L., Winklhofer, H., Ennew, C., 2014. The effects of relationship marketing on share of business: a synthesis and comparison of models. Journal of Business-to-Business Marketing. 21(2), 85-110. DOI: https://doi.org/10.1080/1051712X.2014.903455 Andersen, P.H., 2001. Relationship development and marketing communication: an integrative model. Journal of Business & Industrial Marketing. 16(3), 167-182. DOI: https://doi.org/10.1108/08858620110389786 Hunt, S.D., Morgan, R.M., 1994. Relationship marketing in the era of network competition. Marketing Management. 3(1), 19-28. Moretti, A., Tuan, A., 2014. Social media marketing and relationship marketing: revolution or evolution? A first step analysis. Sinergie Italian Journal of Management. pp. 249-264. DOI: https://dx.doi.org/10.7433/ s93.2014.08 Shane, S., 2000. Prior knowledge and the discovery of entrepreneurial opportunities. Organization Science. 11(4), 448-469. DOI: https://doi.org/10.1287/orsc.11.4.448.14602 Veciana, J.M., 2007. Entrepreneurship as a scientific research programme. Entrepreneurship. Berlin Heidelberg New York: Springer. pp. 23-71. DOI: https://doi.org/ 10.1007/978-3-540-48543-8_2 Ahearne, M., Jones, E., Rapp, A., et al., 2008. High touch through high tech: the impact of salesperson technology usage on sales performance via mediating mechanisms. Management Science. 54(4), 671-685. DOI: https://doi.org/10.1287/mnsc.1070.0783 Ryssel, R., Ritter, T., Gemünden, H.G., 2004. The impact of information technology deployment on trust, commitment and value creation in business relationships. Journal of Business & Industrial Marketing. 19(3), 197-207. DOI: https://doi.org/10.1108/08858620410531333 Devellis, R.F., 2016. Scale development: theory and applications. Thousand Oaks, CA: SAGE. Hofacker, C.F., Golgeci, I., Pillai, K.G., et al., 2020. Digital marketing and business-to-business relationships: a close look at the interface and a roadmap for the future. European Journal of Marketing. 54(6), 1161-1179. DOI: https://doi.org/10.1108/EJM-04-2020-0247 Jiang, J., Qu, L., 2020. Changes in global trade patterns in manufacturing, 2001-2008. American Journal of Industrial and Business Management. 10(5), 876-899. DOI: https://doi.org/10.4236/ajibm.2020.105059 Ahearne, M., Hughes, D.E., Schillewaert, N., 2007. Why sales reps should welcome information technology: Measuring the impact of CRM-based IT on sales effectiveness. International Journal of Research in Marketing. 24(4), 336-349. DOI: https://doi.org/10.1016/j.ijresmar.2007.09.003 Kazienko, P., Szozda, N., Filipowski, T., et al., 2013. New business client acquisition using social networking sites. Electronic Markets. 23(2), 93-103. DOI: https://doi.org/10.1007/s12525-013-0123-9 Morgan, N.A., 2012. Marketing and business performance. Journal of the Academy of Marketing Science. 40(1), 102-119. DOI: https://doi.org/10.1007/s11747-011-0279-9 D’Arcy, J., Gupta, A., Tarafdar, M., et al., 2014. Reflecting on the “dark side” of information technology use. Communications of the Association for Information Systems. 35(1), 109-118. DOI: https://doi.org/10.17705/1CAIS.03505 Gilfoil, D.M., Jobs, C., 2012. Return on investment for social media: a proposed framework for understanding, implementing and measuring the return. Journal of Business & Economics Research (JBER). 10(11), 637-650. DOI: https://doi.org/10.19030/jber.v10i11.7363 De Ruyter, K., Moorman, L., Lemmink, J., 2001. Antecedents of commitment and trust in customer-supplier relationships in high technology markets. Industrial Marketing Management. 30(3), 271-286. DOI: https://doi.org/10.1016/S0019-8501(99)00091-7 Katona, Z., Sarvary, M., 2014. Maersk line: B2B social media – it’s communication, not marketing. California Management Review. 56(3), 142-156. DOI: https://doi.org/10.1525/cmr.2014.56.3.142 Agnihotri, R., Rapp, A., Trainor, K., 2009. Understanding the role of information communication in the buyer-seller exchange process: antecedents and outcomes. Journal of Business & Industrial Marketing. 24(7), 474-486. DOI: https://doi.org/10.1108/08858620910986712 Pentina, I., Pullins, E.B., Wilkinson, J.W., 2014. Comparing drivers of social media marketing adoption by salespeople in Australia and the USA: a pilot study. International Journal of Information Systems and Management. 1(1), 146-165. Quinton, S., Wilson, D., 2016. Tensions and ties in social media networks: towards a model of understanding business relationship development and business performance enhancement through the use of LinkedIn. Industrial Marketing Management. 54, 15-24. DOI: https://doi.org/10.1016/j.indmarman.2015.12.001 Cano, C.R., Boles, J.S., Bean, C.J., 2005. Communication media preferences in business-to-business transactions: an examination of the purchase process. Journal of Personal Selling & Sales Management. 25(3), 283-294. DOI: https://doi.org/10.1080/08853134.2005.10749064 Foleon, 2020. Time to rethink the B2B buyer journey. available at: https://ebook.foleon.com/2020-insights-report/defining-content-experience/ (Accessed 10 October 2020). Lin, N., 2008. A network theory of social capital. The Handbook of Social Capital. 50, 1-25. Lambert, D.M., Enz, M.G., 2012. Managing and measuring value co-creation in business-to-business relationships. Journal of Marketing Management. 28(13-14), 1588-1625. DOI: https://doi.org/10.1080/0267257X.2012.736877 Trainor, K.J., Andzulis, J.M., Rapp, A., et al., 2014. Social media technology usage and customer relationship performance: a capabilities-based examination of social CRM. Journal of Business Research. 67(6), 1201-1208. DOI: https://doi.org/10.1016/j.jbusres.2013.05.002 Collins, D., 2003. Pretesting survey instruments: an overview of cognitive methods. Quality of Life Research. 12(3), 229-238. DOI: https://doi.org/10.1023/A:1023254226592 Hair Jr., J.F., Celsi, M.W., Money, A.H., et al., 2011. Essentials of Business Research Methods. ME Sharpe. Gronau, N., 2001. Auswahl und Einführung industrieller Standardsoftware. PPS Management. 6, 14-18. Holland, C.P., Naudé, P., 2004. The metamorphosis of marketing into an information-handling problem. Journal of Business & Industrial Marketing. 19(3), 167-177. DOI: https://doi.org/10.1108/08858620410531306 Gartner, 2019. The new B2B buying journey,” available at: https://www.gartner.com/en/sales/insights/b2b-buying-journey (Accessed 12 January 2021). Barnes, N.G., Jacobsen, S., 2013. Adoption of social media by fast-growing companies: innovation among the Inc. 500. Journal of Marketing Development and Competitiveness. 7(1), 11-17. Andersson, S., Wikström, N., 2017. Why and how are social media used in a B2B context, and which stakeholders are involved? Journal of Business & Industrial Marketing. 32(8), 1098-1108. DOI: https://doi.org/10.1108/JBIM-07-2016-0148 Veldeman, C., Van Praet, E., Mechant, P., 2017. Social media adoption in business-to-business: IT and industrial companies compared. International Journal of Business Communication. 54(3), 283-305. DOI: https://doi.org/10.1177/2329488415572785 Zhu, Y., Lynette Wang, V., Wang, Y.J., et al., 2020. Business-to-business referral as digital coopetition strategy: insights from an industry-wise digital business network. European Journal of Marketing. 54(6), 1181-1203. DOI: https://doi.org/10.1108/EJM-01-2019-0011 Wymbs, C., 2011. Digital marketing: the time for a new “academic major” has arrived. Journal of Marketing Education. 33(1), 93-106. DOI: https://doi.org/10.1177/0273475310392544 Fatemeh, H., Caroline Anne, H., Michael John, V., et al., 2015. E-marketing orientation and social media implementation in B2B marketing. European Business Review. 6, 638. DOI: https://doi.org/10.1108/EBR-03-2015-0026 Lipiäinen, H.S.M., Karjaluoto, H., 2015. Industrial branding in the digital age. Journal of Business & Industrial Marketing. 30(6), 733-741. DOI: https://doi.org/10.1108/JBIM-04-2013-0089 Ritter, T., Pedersen, C.L., 2020. Digitization capability and the digitalization of business models in business-to-business Firms: past, present, and future. Industrial Marketing Management. 86, 180-190. DOI: https://doi.org/10.1016/j.indmarman.2019.11.019 Hagberg, J., Kjellberg, H., 2020. Digitalized markets. Consumption Markets & Culture. 23(2), 97-109. DOI: https://doi.org/10.1080/10253866.2020.1694209 Fang, Z., Costas, R., 2020. Tracking the Twitter attention around the research efforts on the COVID-19 pandemic. DOI: https://doi.org/10.48550/arXiv.2006.05783 Giamanco, B., Gregoire, K., 2012. Tweet me, friend me, make me buy. Harvard Business Review. 90(7/8), 88-93. Brennan, R., Tzempelikos, N., Wilson, J., et al., 2014. Improving relevance in B2B research: Analysis and recommendations. Journal of Business & Industrial Marketing. 29(7/8), 601-609. DOI: https://doi.org/10.1108/JBIM-09-2013-0201 Yaqub, M.Z., Srećković, M., Cliquet, G., et al., 2020. Network innovation versus innovation through networks. Industrial Marketing Management. 90, 79-89. DOI: https://doi.org/10.1016/j.indmarman.2020.07.001 Marshall, G.W., Moncrief, W.C., Rudd, J.M., et al., 2012. Revolution in sales: the impact of social media and related technology on the selling environment. Journal of Personal Selling and Sales Management. 32(3), 349-363. DOI: https://doi.org/10.2753/PSS0885-3134320305 Grewal, R., Lilien, G.L., Bharadwaj, S., et al., 2015. Business-to-business buying: challenges and opportunities. Customer needs and Solutions. 2(3), 193-208. DOI: https://doi.org/10.1007/s40547-015-0040-5