Understanding the non-economic value of business relationships

Abstract

This article contains a review of relationship value literature which is structured by episode, relationship, and network level. We propose characteristic value dimensions in each level. The article concludes by a three levels and two dimensions framework of focal relationship value in business network. This value combines economic and non economic aspects and episode, relationship and network levels. "All relationships are valuable…,but some are more valuable than others. " (Ford and McDowell 1999 pp.430) The value should be measured at the activity level (Porter 1985), also at the product level (Reddy 1991). But it is not certainly enough to measure its complexity in the business markets. That is why it is important to understand this complexity through the value of the business relationships. Business relationship value is also a problematic concept. "The value concept and value adding seem to be one of the most recent and popular trends today. However, the concept of value is multifaceted and complicated…." (Ravald and Grönroos 1996 pp.19). And Wilson said "value is a problematic concept which cannot be ignored " (Wilson and Jantrania 1996).