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Ritter 2018
Ritter 2018
A R T I C L E I N F O A B S T R A C T
Keywords: Based on the many contributions covering business-to-business relationship management found in the pages of
Ambidexterity Industrial Marketing Management and other prominent journals within the field of business market management,
Multidexterity we suggest framing the managerial challenge of customer relationship management in terms of multidexterity,
Relationship management i.e., the simultaneous management of (potentially) competing agendas. We build our arguments on the extant
Research agenda
literature about ambidexterity, and we explore the existence of multidexterity in customer relationship man-
agement as well as the managerial implications of multidexterity. In addition, we develop a research agenda for
deriving additional insights about customer relationship management.
1. Introduction need to master four different focus areas at the same time. Additions to
the 4P model led to the emergence of 7Ps (Booms and Bitner, 1980) and
Industrial Marketing Management has been a cornerstone in the ad- the 30Rs (Gummesson, 1995), which have added to the complexities of
vancement of our understanding of business marketing for the past marketing. Common to these contributions is the notion that the
25 years. In this period of time, our understanding of business mar- managerial challenge is not necessarily about choosing the right P, the
keting has advanced not only in depth (i.e., toward a more detailed most important R, or the most appropriate orientation, but to achieve
understanding of specific tasks) but also in breadth (i.e., toward an all of them simultaneously while managing the interplay among these
understanding of the many tasks that fall into the domain of business different tasks.
marketing). The many contributions focused on enhancing our under- This paper's first contribution is an illustration of the multiplex
standing of business market management suggest that business mar- nature of business marketing at the customer relationship level. We
keting consists of a plethora of tasks, such as building new customer suggest that customer relationship management can be conceptualized
relationships, maintaining existing relationships, exploring new mar- as 36 different tasks that may be equally important for a firm wishing to
kets and protecting existing ones, and generating customer insights. optimally manage its customer relationships. In this regard, we estab-
For many decades, marketing research has focused on different or- lish the existence of multiplexity in customer relationship management
ientations (e.g., Kohli and Jaworski, 1990) or waves of marketing (e.g., and the need to manage multidexterity.
Hedaa and Ritter, 2005). The emphasis on orientations, such as cus- We then turn to the managerial challenges of multidexterity. In
tomer orientation, product orientation, and market orientation, implies people, ambidexterity is the ability to use both hands (or both feet) at
that the focus of marketing is not only on something but also away from the same time, like drummers or helicopter pilots. Ambidexterity is also
something else. In other words, there is a distinct managerial choice, a well-known concept in business and it has been extensively studied in
such that one agenda “wins” over other agendas. This dichotomy is also that context. Its original conceptualization addresses the balance be-
implied in newer contributions to marketing thinking, such as service- tween exploration and exploitation (e.g., Duncan, 1976) or the “ability
dominant logic (SDL) (Vargo and Lusch, 2004) in which the orientation to simultaneously pursue both incremental and discontinuous innova-
is toward services and away from goods. However, what about firms tion and change” (Tushman and O'Reilly, 1996, p. 24).
servicing customers who are focused on both services and goods? How Ambidexterity has also been discussed in the pages of Industrial
can a firm manage combinations and co-existence? Marketing Management. In an attempt to move beyond analyses of am-
The classic 4Ps of marketing decisions (McCarthy, 1964) and the bidexterity within innovation and in relation to firm performance (e.g.,
balanced scorecard (Kaplan and Norton, 1996) suggested that firms Li and Huang, 2012; Zhang, Edgar, Geare, and O'Kane, 2016), Sok, Sok,
⁎
Corresponding author.
E-mail addresses: ritter@cbs.dk (T. Ritter), geersbro@cbs.dk (J. Geersbro).
https://doi.org/10.1016/j.indmarman.2018.01.019
Please cite this article as: Ritter, T., Industrial Marketing Management (2018), https://doi.org/10.1016/j.indmarman.2018.01.019
T. Ritter, J. Geersbro Industrial Marketing Management xxx (xxxx) xxx–xxx
and De Luca (2016) explore the duality of selling and servicing by forms of relationship management. This was illustrated in two seminal
salespersons as selling-service ambidexterity. More recently, Nijssen, articles published by Ford (1980) and Dwyer et al. (1987), and later
Guenzi, and van der Borgh (2017) documented the importance of ac- empirically verified by Jap and Anderson (2007) (for a more recent
quisition-retention ambidexterity—the ability of a sales force to handle contribution on relationship evolution, see Harmeling, Palmatier,
customer acquisition and customer retention at the same time—for Houston, Arnold, and Samaha, 2015). Many contributions acknowledge
organic sales growth. that relationships may regress or fail to develop. For example, Ford,
However, customer relationship management consists of more than Hakansson, and Johanson (2002) explicitly point to reverse movements
just two agendas. As such, we apply the term “multidexterity” to cap- between the relationship stages.
ture the multitude of tasks and objectives that are relevant in customer In terms of portfolios of customers, firms have six strategic options
relationships at the same time. While the acknowledgement of com- for each of their business relationships (Ritter and Geersbro, 2015):
plexity beyond a factor of two is widespread in the management lit-
erature, the term ‘multidexterity’ is notably overlooked and under- • Establish/acquire: Business relationships do not simply begin—they
utilized. In fact, we have found only a few references to the term (e.g., need to be established. Ford (1980) distinguishes two stages: the
Grant, 2008; Markman, Siegel, and Wright, 2008; Tallman, Luo, and “pre-relationship stage” for evaluating a new business partner and
Buckley, 2017). We define multidexterity as a firm's ability to si- the “early stage,” which includes sample deliveries and negotiations.
multaneously perform more than two tasks in order to achieve different This relationship management task describes the process of trans-
and multiple objectives. forming a non-customer into an active customer or, in other words,
We look to the ambidexterity literature to find arguments about the process of turning a prospect into a buying customer (e.g.,
how to successfully manage the complexities of business marketing. Valtakoski, 2015). The establishment of new relationships is a
“Organizational scholars have recognized the importance of simulta- common theme in the marketing literature, where it is discussed
neously balancing seemingly contradictory tensions and have begun to under such headings as customer acquisition (Reinartz, Thomas, and
shift their focus from trade-off (either/or) to paradoxical (both/and) Kumar, 2005) and supplier selection (Ellram, 1990). The details of
thinking” (Gibson & Birkinshaw, 2004, p. 209, referring to Bouchikhi, this process have received a great deal of attention in recent years,
1998; Earley and Gibson, 2002; Gresov and Drazin, 1997; Koot, Sabelis, as business-to-business selling has moved toward a more relational
and Ybema, 1996; Lewis, 2000; Morgeson and Hofmann, 1999). We paradigm (e.g., Doyle and Roth, 1992).
find that the four mechanisms suggested in the ambidexterity literature • Develop: This relationship management task describes a process in
have only been tested in the context of customer relationship man- which a firm wants to change a business relationship in a way that
agement to a limited degree, and that some of the suggestions cannot strengthens the relationship and/or enhances the value created in
adequately inform customer relationship management research and the relationship by increasing the level of trust, commitment, in-
practice. Therefore, we develop a research agenda on multidexterity in tegration, or value creation. Ford (1980) refers to “increasing formal
industrial marketing aimed at addressing researchers' and practitioners' and informal adaptation” and “increasing cost reduction” as char-
evolving needs for additional insights. acteristics of this dimension. In the sales literature, this task is ty-
pically referred to as “upselling” or “cross-selling” (e.g., Reinartz,
2. Multidexterity and customer relationships Krafft, and Hoyer, 2004).
• Maintain: This relationship management task describes a process in
Buyer-seller relationships have been a central object of study since which a firm wants to maintain a given relationship in its current
the launch of Industrial Marketing Management. Much effort has been put form. In other words, no changes the scope and volume of business
into framing variations in business relationships, which range from or in the way the relationship is managed are intended. The main
transactional “true market” relationships to highly collaborative, long- thrust of relationship management literature is about this long-term,
term “market failure” relationships. As a consequence, the focus of institutionalized form of continued interaction, which is labelled
marketing theory and practice has been significantly extended from a “final stage” and is characterized by extensive institutionalization
transactional, neoclassical, market-oriented, arm's-length view of busi- and stability (Ford, 1980). Sometimes referred to as “retaining,”
ness-to-business relationships to include an emphasis on close, trustful, maintaining a relationship's scope and scale requires effort. In fact,
long-term relationships (e.g., Dwyer, Schurr, and Oh, 1987; Ford, 1980; without constant effort, relationships eventually decline, fade, and
Håkansson, 1982). While many contributions in the marketing field ultimately dissolve (Halinen and Tähtinen, 2002). Thus, the main-
describe and distinguish relationships along a continuum ranging from tenance of business relationships requires processes to be successful.
transactional to relational (e.g., Coviello, Brodie, Danaher, and • Reduce: As a counterpart to “develop,” which has a positive con-
Johnston, 2002; Day, 2000; Wilson, 2000), alternative approaches notation, this relationship management task describes a process in
analyze relationships in terms of three distinct modes markets, hier- which a firm wants to change a given relationship in a way that
archies and relationships (e.g., Ritter, 2007; Thorelli, 1986) or in terms weakens the relationship and/or lessens the created value. To the
of relationship portfolios (e.g., Turnbull and Zolkiewski, 1995; best of our knowledge, this dimension of relationship management
Wilkinson and Young, 1994). has not received much attention in the literature, where it is merely
Therefore, a firm's market-relating capability cannot be constrained implicitly treated as “negative development.” However, our dis-
to or singularly focused on building close, intense, trust-based re- cussions with practitioners suggest that reducing is a capability that
lationships. Instead, that capability must include the handling of a differs significantly from developing. For various reasons, relation-
variety of relationships and a range of different interaction practices ships may reach a point at which the scale and scope of the business
(Coviello et al., 2002). The interaction modes, which are known as “go- cannot be maintained or developed (e.g., Ford et al., 2002).
to-market strategies,” are not mutually exclusive. In fact, they are Therefore, relationship management needs to address reductions in
complementary, with each mode or strategy characterized by different resource allocations and value creation.
properties, advantages, and challenges. • Terminate: While this task was not of interest in early studies of
The continuum from transaction to integration creates the first business relationships, the termination of business relationships has
multicentricity challenge: no firm can handle all of its customer re- recently received considerable attention under several headings,
lationships at one level. Instead, firms need to be able to handle re- such as dissolution, ending, and termination (e.g., Giller and Matear,
lationships at different levels. A firm's relationship multicentricity (i.e., 2001; Halinen and Tähtinen, 2002; Holmlund and Hobbs, 2009;
its handling of different kind of relationships) also supports individual Ritter and Geersbro, 2011). This relationship management task de-
relationships as they evolve over time and, therefore, need different scribes a process in which a firm wants to actively end business
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T. Ritter, J. Geersbro Industrial Marketing Management xxx (xxxx) xxx–xxx
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