Value creation through relationship closeness

Abstract

Globalization and technological innovation are creating dynamic networks or chains of interconnected players, often known as value delivery networks or supply chains, in which a firm, whether manufacturing or service, holds the key to creating and delivering value in the form of offerings to the customers. This idea of value creation and exchange is the foundation stone of relationship marketing and it is considered successful when closeness is said to have been established in the relationship which subsequently leads toward the achievement of objectives. In order to study and understand the creation of value through relationship closeness in a value delivery network particularly at the backward end, a literature review is conducted. A framework is further developed with the help of Interpretive Structural Modeling (ISM), which signifies the antecedents and consequences of relationship closeness between a focal firm and its suppliers. The paper utilizes this methodology to understand the aforesaid phenomenon with the help of identified variables in a structured manner. In the final section, we discuss the theoretical and managerial implications of our study.