Relationship Marketing in An International Context

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Relationship Marketing in an International Context: A

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Article in International Business Review · April 2003

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International Business Review 12 (2003) 193–214
www.elsevier.com/locate/ibusrev
Relationship marketing in an international

context: a literature review
Saeed Samiee a,∗, Peter G.P. Walters b
a
College of Business Administration, The University of Tulsa, 600 South College Avenue, Tulsa, OK
74104-3189, USA
b
Hong Kong Polytechnic University, Kowloon, Hong Kong
Received 1 March 2002; received in revised form 1 May 2002; accepted 1 July 2002
Abstract
This study identifies and examines the extant literature in international relationship market-
ing. Twenty-four empirical studies that address various aspects of relationship marketing are
identified. However, only eight studies were found to explore marketing relationships across
national boundaries. The remainder combine multi-country data or examine relationship mar-
keting in non-US settings. In this review, we report the nature and the findings of these studies
and discuss their implications for future research and marketing practice. It is apparent from
this review that, despite the increasing importance of international marketing, insufficient atten-
tion is being paid to exploring and theorizing relationship marketing in international contexts.
Furthermore, limited effort in validating domestic findings in international settings circum-
scribes the universal applicability and managerial relevance of relationship marketing studies.
 2003 Elsevier Science Ltd. All rights reserved.
1. Introduction
Interest in the impact of buyer–seller relationships in business markets has

increased significantly over the last decade. This interest reflects the importance of
distribution in the value chain and wide acceptance of the relevance of social net-
works and personal relationships for many exchange transactions (Dwyer, Schurr, &
Oh, 1987). As a consequence, frameworks and paradigms emphasizing the signifi-
∗
Corresponding author. Tel.: +1-918-631-2019; fax: +1-918-631-2083.
E-mail address: samiee@utulsa.edu (S. Samiee).
0969-5931/03/$ - see front matter  2003 Elsevier Science Ltd. All rights reserved.
doi:10.1016/S0969-5931(02)00096-3
194 S. Samiee, P.G.P. Walters / International Business Review 12 (2003) 193–214
cance of the development and management of relationships with channel members

have attracted growing scholarly attention (Webster, 1992). Variously labeled as cus-
tomer-orientation, relationship marketing, market-orientation, data-base marketing,
and customization (Duncan & Moriarty, 1998; Cross & Smith, 1995; Day, 1994;
Sheth & Parvatiyar, 1995a, 1995b; Webster, 1992), each approach is thought to offer
a unique competitive advantage to firms (cf., Dertouzos, Lester, & Solow, 1989).
Marketing scholars and practitioners have long recognized the importance of
developing and nurturing relationships, particularly in distribution channels where
relationships with suppliers (i.e., the upstream view) and customers (i.e., the down-
stream view) have been given a great deal of attention. Thus, despite the relatively
recent emergence of the relationship marketing (RM) paradigm (Sheth & Parvatiyar,
1992, 1995a), marketers have always been keenly aware of the critical role of
relationships and personal interactions, which have credibility both intuitively and
pragmatically and are being applied increasingly in many contexts. However, the
rate of conceptual development of new frameworks has tended to go faster than
empirical testing and, not surprisingly, hard data on many aspects of RM is still
lacking (Pressey & Mathews, 2000).
In an international marketing context, relationships transcend national boundaries
and key players in a given channel may be located anywhere in the world. Increased
emphasis on globalization, cooperative strategies, and strategic alliances, coupled
with the intensification of competition on a global scale, has led a growing number
of firms to rethink their distribution strategies and to emphasize and seek to create
greater mutual interdependence.1 As a result, channel relationships play an increas-
ingly central role in the marketing strategies of many firms in both domestic and
international markets (Heide & Stump, 1995; Johnston, Lewin & Spekman, 1999).
Unlike relationships in domestic settings, those formed across national boundaries
are affected to a much higher degree by diverse social, cultural, and other environ-
mental factors which, in turn, can significantly modify the role and scope of relation-
ships from one country or region to the next. Although the literature on RM has
proliferated during the last two decades, only limited attention has been paid to
international relationship marketing (IRM). A key goal in this study is thus to identify
and review the extant empirical literature in IRM. Following on from this discussion,
we seek to identify key issues deserving further scholarly attention and directions
for future IRM research.
In the sections that follow, we describe the governance of exchange relationships,
the search process for our literature review, characteristics of the extant literature,
1
There is considerable evidence in the literature that supports these trends. See, for example, Buzzell
and Ortmeyer (1995); Narus and Anderson (1996); McKenna (1995), and Johnston et al. (1999). Addition-
ally, advances in telecommunications and computer technologies and the rapid expansion of electronic
commerce have afforded an increasing number of firms the opportunity to internationalize the scope of
relationships they pursue and maintain. Various technologies also permit ways of gathering customer
intelligence to more precisely segment customers and to reach and to address their needs or to individ-
ualize offerings. However, the literature has not specifically assessed the relative impact of technology
in developing and maintaining marketing relationships with customers and suppliers in markets abroad.
S. Samiee, P.G.P. Walters / International Business Review 12 (2003) 193–214 195
IRM constructs, research methodologies and findings. Inasmuch as three streams of

IRM research (upstream, downstream, and dyadic) are recognized, the findings are
grouped accordingly.
2. Exchange relationship governance
In order to better understand the genesis of the RM perspective, it is useful to

review briefly the theoretical context for the governance of exchange transactions.
In this regard, McNeil’s (1980) distinction between “discrete transactions” and
“relational exchange” is of seminal importance. The former are exchange events
which involve just the transfer of ownership between the parties concerned, and are
normally of a “one-off”, short-term nature driven by the interaction of market forces.
A relational exchange, on the other hand, is characterized by a context in which
past, present, and future interaction between the parties concerned is of fundamental
importance when seeking to understand the nature of exchange events.
In the real world, the conditions for frictionless pure market mechanisms often
do not exist, and many marketing transactions have important relational dimensions
and cannot be classified as purely market driven “discrete” events. This is particularly
the case when evaluating marketing activity in distribution channels, where many
exchange events undertaken between channel members are often best evaluated as
one of a sequence of transactions, with each being undertaken in a context where
history and future expectations are key factors (Johnston et al., 1999).
Non-market exchange events are not equally affected by relational factors.
Reflecting this reality, Heide and Stump (1994) have suggested a governance
typology where, in additional to market governance, two sub-groups—unilateral and
bilateral forms—are delineated under the non-market governance category.
Unilateral relationships involve a governance structure where one party is able to
set the rules and impose their will in exchange relationships without having to seek
compliance from other actors in the transaction. This category includes “internalized”
business transactions and many non-equity contractual relationships such as licens-
ing.
In the case of “bilateral” relationships, the actors in exchange events are committed
to continuing relationships which involve neither a unified hierarchy nor necessarily
comprehensive and detailed contractual obligations. This type of business relation-
ship is driven by shared behavioral norms which allow for the adoption of a common
normative framework for the regulation of exchange transactions, and patterns of
business behavior where opportunistic motives are constrained because of the long
term benefits of conforming to system norms and other social pressures (Dwyer et
al., 1987). This is the realm of relationship marketing.
Interestingly, scholars have not devoted much attention to the additional ramifi-
cations of undertaking RM across national boundaries. Clearly, this is an interesting
and important issue and it is now relevant to consider the literature with a view to
assessing what contributions have been made to understanding the dynamics and
nature of international marketing relationships.
3. Literature search
The focus of this review is on internationally-oriented published empirical research

within the RM paradigm. However, as noted earlier, academic interest in exploring
a firm’s relationships with its customers and suppliers precedes the emergence of
RM as a separate conceptual paradigm in marketing. Scholars have demonstrated
interest in exploring the sociopolitical processes and outcomes (e.g., power and
conflict) in distribution channels for decades (e.g., El Ansary & Stern, 1972; Stern &
Reve, 1980). In addition, the network approach has received much attention, parti-
cularly from European scholars (e.g. the International Marketing and Purchasing
Group), and the body of literature in this area has also grown significantly over the
last two decades. For example, Håkansson (1982) edited a collection of case studies
about “incremental [purchasing] commitment approach” of firms located in five Eur-
opean countries.2 An important feature of this contribution is the recognition that,
while transactions take place between firms, individuals within them implement
them. Thus, isolating a working definition for identifying relevant IRM articles for
the present study posed a challenge.
Given the wide range of possibilities for examining relationships within a market-
ing context, we used the presence of key constructs in the emerging RM research
as a screening device for identifying the extant IRM literature. For example, trust,
commitment, power, conflict, relationship age, information exchange and communi-
cations, relationship-specific investments, and performance are among the variables
frequently discussed in the RM literature. Also, only research involving buyer-seller
relationships was considered. The channel literature was also screened for relevant
content that met our broad definition and addressed relational issues.3 As a result,
several relevant articles from the 1980s are also included in this review. However,
conceptual contributions, case studies, and studies relying exclusively on the network
approach are not included in this review.
To uncover the extant literature in these areas, we examined all published research
dealing with distribution channels and RM using Infotrack and Ebsco electronic data-
bases. Next, we closely examined the leading journals for their conceptual and
empirical RM content. Reference sections of all relevant articles were examined for
additional RM publications. All published RM articles were screened for having an
international domain and an empirical approach. We used various search and library
resources to access all publications we identified in this manner. Our search included
all articles published before 2001.
Overall, 24 empirical articles were identified which address RM in an international
2
The collection involved personal interviews with 316 firms by local academicians in France, Ger-
many, Italy, Sweden, and the UK. However, only 23 detailed case studies were reported.
3
The volume of published work about distribution channels is significant. The main criterion used in
selecting channel articles for inclusion in this study is whether the investigation shared dimensions that
are deemed critical within the RM paradigm. For example, some articles in this field dealt largely with
power and conflict rather than dimensions that enable the firm to better manage relationships. As such,
these articles were excluded.
context.4 Specifically, three groups of studies were identified. The first group consists
of studies that examine marketing relationships with a supplier or customer in another
country and constitute true international projects. To be classified into this group, it
is not necessary for the data to be collected in two locations so long as the infor-
mation gathered involves a relationship with a non-domestic entity. The next group
are those that examine RM by combining data from several nations. These studies
are labeled as multi-country because, in the research identified, the data sets were
combined rather than cross-nationally compared. Finally, we also examined dom-
estically-oriented RM studies that involved data from a single country. Strictly speak-
ing, these studies are local in nature, however, they were included in this review
because they can verify or refute existing RM knowledge in other cultural settings.
4. Results
4.1. Characteristics of the extant literature
Although the RM paradigm did not emerge as a separate conceptual framework

until the early 1990s, the earliest IRM study identified dates to 1982. The earlier
studies do not fully incorporate some of the dimensions included in later work, but
do focus on the relationship between the buyer and the seller. Thus, these earlier
studies were also examining the nature of relationships and identifying factors that
assist in developing a better understanding of channel issues and ensuing relation-
ships.
Publication outlets and dates are shown in Table 1. Few IRM articles were pub-
lished prior to the 1990s but during the last decade, publication of empirical IRM
articles has proliferated with 20 such studies published. In contrast, we uncovered
only four relevant empirical articles published before 1990.
The most common publication outlets were Journal of Marketing Research, Euro-
pean Journal of Marketing, and Journal of Marketing Management, each having
published four studies; and Journal of Business Research and Industrial Marketing
Management, with each publishing two studies. Surprisingly, some key outlets for
channel research, such as Journal of Marketing, have published few IRM studies. It
is also noteworthy that no IRM studies were reported in the Journal of Retailing
and only one article has appeared in the Journal of Marketing Channels, even though
these publications are presumably dedicated to channel-related issues.
Two additional observations are noteworthy. First, one third of the articles are
published in journals that are generally considered top-tier (i.e., Journal of Marketing
and Journal of Marketing Research). Second, the IRM literature identified includes
4
The main determinant factor for the inclusion of a given article was whether it demonstrated a
significant overlap in measures and coverage with contemporary studies centering on RM. Given the
subjectivity of this rule, it is possible that some worthy articles might have been discarded. However, we
are confident about the fair representation of the subset being examined.
Table 1
Publication outlets
1980s 1990s+ Total
Journal of Marketing Research 2 3 5

Journal of Marketing Management 0 4 4
European Journal of Marketing 0 3 3
Journal of Marketing 1 2 3
Industrial Marketing Management 1 1 2
Journal of Business Research 0 2 2
Journal of Global Marketing 0 1 1
Journal of Marketing Channels 0 1 1
Journal of Services Marketing 0 1 1
The International Review of Retail, 0 1 1
Distribution and Consumer Research
Management International Review 0 1 1
Totals 4 20 24
three cases where partially or entirely the same data were used in multiple studies.5
Interestingly, two of the three cases in which articles shared the same data set
occurred in leading journals, and it is apparent that quality IRM articles are positively
embraced by top marketing journals.
As shown in Table 2, the majority of studies investigated channel relationships
in domestic contexts (n=14, 58%). Only one third of the studies (n=8) employed
international designs and gathered data about relationships with foreign suppliers
or customers. This is somewhat surprising given the broad interest in international
Table 2
Characteristics of publications
Internationala Foreignb Multi-countryc Total
Upstream 3 9 1 13
Downstream 5 1 1 7
Dyadic 0 4 0 4
Total 8 14 2 24
a
Studies involving relationships with customers or suppliers abroad.
b
Studies involving non-US data.
c
Studies involving data from multiple countries.
5
The six studies in question addressed somewhat different topics in each publication and the compo-
sition of authors varied in four of the six articles. The exception, Kumar, Scheer and Steenkamp (1995),
combined the Dutch data with data gathered in US auto dealers for their 1998 study. Kale (1986) and
Frazier, Gill and Kale (1989) relied on 51 observations from India. Finally, Brennan (1997) and Brennan
and Turnbull (1999) also used data from the same set of 13 interviews.
marketing, the straightforward nature of the data collection procedure for such stud-
ies, and that data collection in non-dyadic studies can be undertaken domestically.
Finally, two studies relied on data from two or more countries; however, in each
case the data were pooled for the purposes of hypothesis testing. Thus, no cross-
cultural IRM studies were identified.
4.2. Relationship direction
The IRM literature consists of three groups of studies (i.e., upstream, downstream,
and dyadic). The data appears to indicate that there are important differences in
relationships as a result of directional factors. Upstream relationships are often asym-
metrical because manufacturers and other upstream suppliers tend to be larger and
more powerful (Kumar, Scheer & Steenkamp, 1995). This condition typically results
in low levels of intrachannel trust, cooperation, and relationship stability
(Anderson & Weitz, 1989; Dwyer et al., 1987). Scholarly effort has focused on
developing a better understanding of these relationships and, not surprisingly, over
one-half of IRM studies reviewed examine relationships between firms and their
suppliers, i.e., upstream (n=13, 54%).
Downstream relationships tend to exhibit rather different characteristics. Cus-
tomers tend to be smaller than supplier firms (and presumably individually less
important because firms tend to depend on many more customers than suppliers)
which affords the latter significant potential power in the relationship. This is tem-
pered by the fact that customers are the main source of revenue for suppliers which,
in turn, implies that supplier firms need to manage relationships to maintain customer
satisfaction and ensure relationship continuity. Despite this critically important issue,
fewer studies investigated relationships between firms and their downstream cus-
tomers (n=7, 29%). Given that businesses tend to be most concerned about under-
standing and enhancing conditions and relationships that directly affect revenues, the
paucity of studies examining relationships with customers is surprising.
The dichotomous nature of the upstream and downstream relationships maintained
by a firm endorses the importance and the necessity of dyadic investigations of chan-
nel participants. However, even fewer IRM studies identified are dyadic in nature
(n=4, 17%) involving data collection from both parties in relationships investigated.
4.3. Main constructs
Although trust is the most common construct investigated in the IRM studies
reviewed, its impact was not considered in most work. This is surprising given trust’s
central role in the RM paradigm. Power was the second most frequently researched
construct, followed by commitment, conflict, and relationship quality. Finally, recip-
rocity, investment in the relationship, and information exchange were employed in
more than one study. It is thus evident that, to date, IRM studies share very few
central constructs.
It is noteworthy that only six IRM articles examined relationship performance
outcomes, with the first study to incorporate performance not appearing before 1995.
Given the critical importance of market and other outcomes, one would expect
greater interest in performance variables in IRM studies.
4.4. Research issues
The IRM literature has addressed a broad range of relationship issues. As shown
in Table 3, there does not seem to be a convergence of topics, issues, or questions
addressed in the extant research. Furthermore, although IRM studies overlapped to
some extent with respect to constructs used, there has been little convergence in the
methodological approaches pursued in exploring RM issues. Thus, in general, the
constructs, measurement methods, and models used vary greatly across IRM studies,
and no particular pattern or direction in the research pursued was discernible.
Given that only 24 IRM studies were identified it is perhaps not surprising that
there has been little convergence in the nature of the ongoing academic debate. Key
IRM issues and questions investigated are classified by relationship direction in Table
3, and it is evident that the range of issues examined varies widely. There is also
no particular pattern with respect to the relationship direction (upstream, downstream,
or dyadic).
4.5. Methodology issues
The majority of the 21 databases used in the 24 studies examined (see footnote #4)
involved intermediary relationships with manufacturers or service providers (10/13
upstream, 5/7 downstream, and 2/4 dyadic). They involved a wide range of industries
including ad agencies, auto, machine tool, food, petroleum, and telecommunications
sectors. Four studies discuss intermediaries other than manufacturers or consumers.
The remaining three studies were consumer-based (i.e., upstream), one of which dealt
with consumer services. Only two (one consumer and one business) of the 13 studies
involved an exchange of services.
A large proportion of studies used non-random samples. Convenience sampling
was used in eight studies (five upstream, one downstream, two dyadic—same data).
Quota sampling was used in two studies (one upstream and one downstream).
Although a few of the remaining 11 data sets involved the use of a random sampling
approach, most sampling methods were conceptually or methodologically unclear
and/or not specifically addressed. By their nature, dyadic studies required paired
responses, making it difficult to retain random samples. For this reason, dyadic IRM
studies involved smaller samples (13 ⬍ n ⬍ 105). The number of data points ranged
from 11 dyadic relationships (i.e., 22 responses) to two-country samples involving
706 data points.
All but two studies involved data from a single nation. The UK was the focus in
seven publications. Germany, the Netherlands, Sweden, and the US were discussed
in three publications each. Australia, Canada, France, Italy, New Zealand, and Nor-
way were the sites of two studies each. Other countries studied included China, India,
Japan, Indonesia, Ireland, Malaysia, Singapore, and Taiwan.
Table 3
Research areas
Upstream Downstream Dyadic
Power influence process in an LDC The contribution of additional services to Reliability and validity of informant data
building closer relationships in dyadic relationships
Use of information exchange, request, and recommendation Commitment explains the functioning of close Sales and marketing implications of
strategies in a sellers’ market inter-firm relationships insofar as risks, suppliers relationships developed in the
governance mechanisms, and results are automotive and telecommunications
concerned industries
Determinants of dealer dependence levels in a relational Relational exchanges are more appropriate in SE Adaptive behavior in buyer–supplier
exchange in an LDC Asia than transactional ones relationships in the automotive and
telecommunications industries
Linkages between dependence and coercive strategies by The influence of trust, social investment, and The degree and congruence of partner
the manufacturer intermediary relationship on export performance evaluations as key to trust and satisfaction
to China in a guanxi context
Sources of power within channels and intrachannel conflict Conflict in manufacturer–intermediary
relationship in terms of dependency, resource
commitment, and market knowledge
Control, trust, commitment, and information sharing issues Asset-specificity, governance mechanisms,
in developing relationships via data-base and direct relational investments, and relational norms as
marketing predictors of relationship continuity
Perception of distributive and procedural fairness on Inter-firm adaptation in relationships in terms of
relationship quality reciprocity and dependency
The influence of age, environmental uncertainty, and
relationship outcome on relationship quality
Channel interdependence asymmetry, punitive capabilities
and actions, and reciprocity
(continued on next page)
S. Samiee, P.G.P. Walters / International Business Review 12 (2003) 193–214
201
202
Table 3 (continued)
Upstream Downstream Dyadic
The influence of long-term relationships on service use and

trust
Utilitarian value and reciprocal trust and legitimate image
are positively related
The influence of buyer–supplier relationship types on
performance
Balance of power, purchase involvement, professionalism,
and personal contact influence the implementation of RM
Buyer’s assessment of skills of suppliers and suppliers’
commitment, adaptability, perceived distance, and conflict
Relationship between service quality, power, relationship
strength
Firm’s relationship to its network structure
5. Findings
5.1. Upstream studies
Most IRM studies centered on firms’ relationships with their suppliers. As shown
in Table 3 and Appendix A, a range of topics and constructs were investigated in
these publications. However, seven constructs were shared in several upstream stud-
ies: customer service/relationship quality, involvement, commitment, trust, power,
conflict, and information exchange. In general, the findings stress the importance of
maintaining and demonstrating the presence of high quality relationships. Customer
service quality was found to affect the perceived closeness of relationships with
suppliers in international marketing channels (de Ruyter, Wetzels, & Lemmink,
1995). Additionally, greater perceived quality of buyer-supplier interactions increases
commitment to the relationship and patronage (Grayson & Ambler, 1999). Kumar
et al. (1995) found that relationship quality is related to perceived distributive and
procedural fairness. They note further that the customer’s perception of fairness had
a greater effect on relationship quality than the supplier’s view. However, given the
upstream nature of the data, this finding is one-sided and needs to be verified through
a dyadic design. The authors also reported that relationship quality is negatively
impacted by environmental uncertainty. Chien and Moutinho (2000) and Pressey and
Mathews (2000) reported that the level of involvement in relationships and infor-
mation exchange are instrumental in developing and maintaining marketing relation-
ships and for buying behavior and legitimacy.
The IRM literature clearly points to the importance of commitment. Grayson and
Ambler (1999) found that the higher the perceived quality of buyer–seller interactions
and the greater the supplier’s involvement in the buyer’s marketing process the
greater the commitment by the buyer to the relationship. Perceptions of a supplier’s
commercial and technical competence is also associated with perceived supplier com-
mitment to the relationship (Ford, 1984). Commitment has also been found to be
reciprocal in nature with successful relationships relying on commitment from both
parties (O’Malley, Patterson, & Evans, 1997).
In the case of trust, the upstream studies found that it is associated with lower
opportunism/loss of objectivity (Grayson & Ambler, 1999). The authors also report
that trust is associated with rising expectations which, in turn, are associated with
greater involvement, interaction, and commitment. Higher levels of reciprocal trust
were found to be associated with customers’ perceptions of the utilitarian value of
suppliers (Chien & Moutinho, 2000). Thus, customers seem to place greater value
on relationships in which they perceive a high level of reciprocal trust. O’Malley et
al. (1997) also found that, in consumer markets, trust is closely related to the notion
of privacy in relationships.
Elg and Johansson (1996) report the presence of conflict (or confrontation)
between the firm’s original domestic relationships and the extended international
network being incorporated into the system. Conflict decreases as the likelihood of
using non-coercive sources of power increases (Ong, Elliott, & Armstrong, 1990).
In sellers’ markets, perceived conflict is inversely related to manufacturer’s role per-
formance (Frazier, Gill & Kale, 1989). The authors also found that conflict is inversely
related to dealer dependence. Finally, conflict was found to be inversely related to
buyers’ perception of suppliers’ commercial and technical skills (Ford, 1984).
RM is apparently accommodated by a balance of power between the parties
(Pressey & Mathews, 2000). The use of coercive power, on the other hand, has a
negative impact on relationship strength (de Ruyter et al., 1995). Manufacturer power
in a sellers’ market is positively related to the degree of pressure involved in the
use of influence strategies to alter a dealer’s behavior and the less powerful suppliers
are perceived to use low pressure means of influencing the buyer such as information
exchange, requests, and recommendations (Kale, 1986).
5.2. Downstream studies
Seven IRM studies focused on relationships with customers; with two centered on
relationships with customers in Southeast Asian nations. Both of these studies demon-
strate that a relationship marketing context facilitates business activities and enhances
business performance. Additionally, trust and commitment are shown to be central to
relational success. Chadee and Zhang (2000) examined the impact of guanxi for New
Zealand firms exporting to China. Their findings indicate that intermediaries have no
influence in locating and selecting Chinese business partners for New Zealand
exporters. This is a potentially important finding because other studies have demon-
strated that foreign investors frequently employ intermediaries to identify suitable ven-
ture partners and other contacts in China (De Keijzer, 1992; Yeung & Tung, 1996).
However, the authors stress the critical importance of developing mutual trust and
guanxi connections with both business partners and government officials.
Abramson and Ai (1998), on the other hand, examine Canadian exporters’ experi-
ences in dealing with Chinese customers within transactional and relationship mar-
keting contexts. Their results suggest that building networks of contacts, providing
gifts, and performing favors were characteristics of both contexts. Gifts and favors
did not have a positive effect on uncertainty or performance in transactional
exchanges, but, in contrast, were positively associated with lower uncertainty and
higher performance in longer-term, relational exchanges. Söllner (1999) addresses
the varying nature of relationship development and maturity by demonstrating a null
association between age and the stage of relationship development.
Other downstream IRM research complements these findings. Experienced
exporters who presumably maintain more longer-term relationships tend to have
fewer channel conflicts (Sachdev, Bello, & Verhage, 1995). Greater relationship
investments are positively associated with relationship duration (Haugland, 1999).
However, asymmetric relationship-specific investments had no negative impact on
relationship outcomes (Haugland, 1999). Unilateral adaptation in interfirm relation-
ships is in part a function of imbalance in channel power and is partly due to a
reciprocal demonstration of commitment and trust in relationships (Hallén, Johan-
son, & Mohamed, 1991). The authors contend that their model is reciprocal because
the same constructs explain adaptation behavior in both nodes of a relationship, even
though their data are downstream.
5.3. Dyadic studies
As reported in Table 2, a dyadic approach was identified in four IRM articles

which were based on three data bases. All four studies were conducted in a domestic,
non-US setting and, thus, none is a true investigation of IRM. As shown in Appendix
A, the first study (i.e., John & Reve, 1982) is largely methodology-driven as the
authors examined the ability of key informants at both ends of a relationship to
provide valid and reliable data about each relationship. Using data gathered in Nor-
way and SEM, the authors establish that, even though key informants from different
firms within channel dyads are able to provide reliable and valid data about their
relationships’ structural form, their views regarding four sentiment measures did
not converge.
Studies by Brennan (1997) and Brennan and Turnbull (1999) focused on 13 buyer-
supplier relationships in the telecommunications and automotive sectors in the UK. In
the former research Brennan identifies a five-step process governing partner selection
and identifies difficulties that may complicate relationship marketing. In the latter study,
the authors examine motivations and decision making processes that underlie adaptive
behavior in buyer-seller relationships. Their qualitative data reveal three managerial
orientations, transactional, transitional, and partnering. Relationship marketing is firmly
imbedded in the organizational setting and practice of the latter group. The authors
observe a substantial level of supplier adaptation to customer needs and requirements
in five out of nine of the supplier cases examined. In contrast, only two out of six
buyer cases indicate a high level of buyer adaptation. This research offers support for
the findings of Hallén, Johanson and Mohamed (1991) that buyer-seller adaptations in
RM tend to enhance levels of trust and commitment. As the relationship grows through
greater trust and commitment, further adaptive behavior should be expected, but
relationship age is apparently unrelated to the level of adaptation.
The results reported by Smith and Barclay (1997) in another dyadic study suggest
that selling partners must invest time and effort in the relationship and demonstrate and
reciprocate trusting behaviors which, in turn, enhance task performance. The mutual
perception of trustworthiness is seen to be critical to mutually satisfying partnerships.
6. Discussion and implications for future research
This review draws attention to several important issues in investigations concern-

ing relationship marketing in an international context. An important problem and a
major challenge posed by the RM paradigm is the broad, loosely defined nature of
the domain. Relationships are complex phenomena which can be examined from a
variety of perspectives in terms of theoretical frameworks, constructs, and method-
ology. When combined with firm-related factors and marketing strategy consider-
ations, the range of topics and issues that might be explored increases exponentially.
Not surprisingly, therefore, a major challenge to progressing scholarship in this field
is posed by a general lack of convergence in the literature around key topics, plus the
lack of a consensus on an appropriate theoretical framework and related constructs.
The evidence indicates that relatively few RM studies have been undertaken from
an international perspective. Our search resulted in only 24 studies of which only
eight studies were truly international in that they dealt with relational exchange
across national boundaries (Table 2). This is unfortunate given the centrality of
relationships and relational exchange in marketing transactions, and although
relationship marketing was identified as a new and important paradigm in the early
1990s, marketing relationships have been the subject of investigation by scholars for
a very long time. It is striking that, despite greater academic interest in international
aspects of business and marketing in academia since the early 1980s, marketing
scholars have not been motivated to pursue more internationally-oriented RM studies.
It is also apparent that no definitive empirically based conclusions can be derived
from the RM studies reviewed in this paper. No clear pattern is apparent from diverse
research findings and normative conclusions regarding managerial behavior do not
emerge. In part this is because few scholars have replicated RM in diverse national
settings. This fact, along with a lack of agreement regarding key constructs and
theoretical frameworks, has inhibited the development of robust models which are
meaningful in an international context. In addition, most IRM studies have not con-
sidered performance issues. This has meant that drawing normative conclusions for
practitioners from the extant research is problematic.
It follows from the preceding comments that there is much work remaining to be
done by international marketing scholars interested in exploring IRM. In contrast to
other areas in the international marketing literature such as exporting, country of
origin, and international marketing strategy, the IRM literature is relatively impover-
ished. As noted earlier, the design and implementation of IRM studies are generally
no more involved than exporting projects, and data can often be collected at home.
Despite this, IRM has attracted little attention from most scholars.
A lack of interest in IRM may be partly due to the complexity of the contextual
situation (Johnston et al., 1999). Very importantly, the regulatory environment is com-
plicated by political and legal factors that impact primarily on international business
transactions. For example, protectionism and politics will affect trade and investment
flows and associated marketing activity. As noted earlier, cultural diversity is also an
important complicating factor. In a similar vein, national differences regarding econ-
omic, competitive, and political variables are likely to have significant implications for
relationships, as are cross-national differences in management practice and style.
The implications of the factors noted above need to be captured in IRM frame-
works in order to better explain observed behavior. However, this does not seem to
be happening to any great degree, with many IRM models being essentially the same
as those utilized in a purely domestic setting. In particular, it is striking that cultural
factors are not taken more explicitly into account in most of the IRM studies
reviewed. In an international context, cultural diversity is a fact of life that can be
expected to have important implications for the development and maintenance of
buyer-seller relationships. Despite the relevance of the cultural context in inter-
national marketing, in most IRM studies cultural factors are conspicuously absent.
This is understandable in single-country studies and the majority of the IRM studies
(n=14) reviewed were of this type. In addition, certain RM measures (e.g., trust and
commitment) naturally incorporate cultural dimensions. However, to our knowledge,

these constructs have not been cross-culturally validated. Given that most IRM takes
place in a multi-cultural setting, relevant cultural variables need to be creatively
incorporated in research studies to more accurately and comprehensively gauge the
dynamics of international marketing relationships.
It is also interesting to observe that in the literature limited cognizance has been
taken about the potential importance of the direction of the buyer–seller relationship.
Thus, it has been noted that there has been a general assumption that “the factors
driving distributor commitment are suggested to have the same effects on supplier
commitment” (Kim, 2001, p. 87). This assumption may well be erroneous and there
is gathering evidence of the need for a more refined view, where there is an explicit
recognition that the factors driving relationships with suppliers may differ from those
affecting relational exchange with customers (Kalafatis, 2002; Kim, 2001). To our
knowledge, the RM literature has yet to examine the simultaneous view of upstream
and downstream relationships using the firm as the unit of analysis.
Dyadic IRM studies examine a relationship from the differing perspective of the
two entities involved and thus allow for concurrent study of buyer and seller orien-
tations and behavior. However, such work is more complex and expensive to under-
take, which can explain why we uncovered no international dyadic studies in this
review (Table 2). Such studies are especially valuable in shedding light on aspects
of relationships that might go unnoticed when only one actor’s perceptions of a
relationship are investigated. Inexpensive and convenient international communi-
cations can significantly reduce the costs of undertaking dyadic IRM projects and
their pursuit should be encouraged.
Complex distribution channels are common in international markets and channel
intermediaries often play a more significant role than in domestic markets (Kalafatis,
2002). The activities of intermediaries in terms of their role developing relationships
between suppliers and customers who know little about each other are worthy of
more detailed investigation. The same comment also applies to the nature of these
intermediaries’ relationships with their upstream and downstream clients.
The impact and role of trust and commitment in establishing and maintaining
marketing relationships is also an area worthy of greater attention. Such a focus
aligns with the importance attached to these constructs in the RM literature
(Morgan & Hunt, 1994). Key issues to examine include whether these constructs
are precursors to or outcomes of international relational exchange, and their influence
on performance in terms of market, profit, and satisfaction measures.
Other areas where more research is needed include the impact of power and depen-
dence upon IRM, strategies for successful integration of global distribution channels,
and the nature and impact of communication on inter-cultural relational exchange.
Frazier (1999) has already commented on a number of these issues in a domestic
context. He also highlights a lack of research on resource allocation in global chan-
nels. Finally, much closer attention should be paid to success and failure in IRM,
with a particular focus on describing the characteristics of successful relational
exchange. This will allow for the development of normative guidelines that are rel-
evant for international marketing managers.
Appendix A. The IRM literature 208
Study Dira Typeb Characteristics Comments
John & Reve, DY F A cross-sectional study of wholesaler– Data from key informant from both sides of a set of wholesaler–retailer
1982, JMR retailer dyads in a small European dyads demonstrate the structural validity of the model and that the measures
country. have convergent and discriminant validity. The measures describe the
structural form and collective sentiments within the dyadic interaction.
However, the sentiments variables fail to show adequate validity.
Ford, 1984, UPS I Part of the IMP project which has Examines the hypothesis that industrial purchasers’ assessments of their
IMM examined buyer–seller relationships suppliers are not based on views of suppliers’ technical and commercial
between industrial companies. Based on skills in isolation. Instead they are closely associated with their assessment
196 interviews with marketing and of suppliers’ skills in developing a relationship with them.
purchasing executives in Great Britain,
France, Germany, Italy, and Sweden.
Kale, 1986, UPS F Views of distributors regarding their A field study of channel relationships in India. Among the findings is that a
JMR relationships with tungsten carbide tool manufacturer’s perceived power is related positively to the frequency of use
manufacturers in India. Sample size = of relatively high pressure influence strategies by its field representatives.
51.
Frazier, Gill, & UPS F Views of distributors regarding their Develops a conceptual framework for channel relationships involving the
Kale, 1989, JM relationships with tungsten carbide tool exchange of industrial products within sellers’ markets in developing
manufacturers in India. Sample size = countries. Results are generally supportive of the conceptual framework and
51. illustrate the need to take the channel context into account in developing
channel industry and perform empirical studies in a wide variety of channel
settings.
Ong, Elliott, & UPS F The data were collected from a mail Assesses the sources of power extant within petroleum distribution channels
Armstrong, survey of all lessee and owner dealer and their contribution to intra-channel conflict. Results show a significant
1990, IRRDCR franchisees of two major oil companies inverse relationship between intra-channel conflict and the use of non-
in the Perth metropolitan area. Sample coercive power by the two major oil companies. The findings indicate that
size = 208. the use of coercive power is not an important predictor of intra-channel
conflict.
Hallen, DNS I The data pertain to 237 business Social exchange theory and the resource-dependence model are used to
Johansson, & relationships of industrial suppliers in present a structural model of interfirm adaptation. The model accounts for
Seyed- Germany, Sweden, and the UK with mutual adaptation as a consequence of trust-building as well as for
Mohamed, customers in France, Germany, Italy, unilateral adaptation due to imbalanced dependence between the parties.
1991, JM Sweden, and the UK. The view that interfirm adaptations are elements in a social exchange
process is supported.
Continued
Appendix A. The IRM literature Continued
Kumar, UPS F Perceived supplier fairness in the auto Examines the role of supplier fairness in developing long-term relationships
Scheer, & industry. Sample consisting of 417 and between relatively smaller, vulnerable resellers and larger, powerful
Steenkamp, 289 automobile dealers in the US and suppliers. Authors conceptualize two components of fairness—distributive
1995, JMR the Netherlands, respectively. fairness and procedural fairness. Vulnerable resellers’ perceptions of both
distributive and procedural fairness are shown to enhance their relationship
quality, but these effects are moderated by the level of outcomes and
environmental uncertainty.
de Ruyter, UPS I Worldwide importing intermediaries of Explores the relationship between perceived service quality, supplier power
Wetzels, & a large, multinational Dutch base, and perceived relationship strength in international marketing
Lemmink, 1995, manufacturer of fast-moving packaged channels.
EJM consumer goods. Sample size = 117.
Sachdev, DNS I Primary international intermediaries of Three major dimensions of export involvement: dependence on exporting,
Bello, & Dutch manufacturers regarding export knowledge of foreign markets, and commitment of resources to exporting
Verhage, 1995, involvement and channel conflict. are explored. Results indicate that a manufacturer’s conflict with its
JMC Sample size = 225. principal international intermediary decreases with greater manufacturer
dependence on the principal intermediary, increases as resources are
committed to exporting, and decreases with the manufacturer’s foreign
market knowledge.
Elg & UPS I Data generated from 30 personal Focuses on inter-firm relationships and the internationalization of companies
Johansson, interviews with representatives of with special reference to the Swedish food sector.
1996, EJM Swedish food firms.
Brennan, 1997, DY F Case studies of buyer-supplier The current state of buyer/supplier partnering within the automotive and
JMM relationships of 13 matched-pairs of telecommunications industries is evaluated within the historical context. The
interviews with UK purchasing key problem identified is the need to overcome antagonism of traditional
managers in auto and relationships with suppliers. The costs and benefits of partnering approaches
telecommunications fields and their to both marketing and purchasing are discussed and implications for
marketing/sales counterparts in supply marketing managers seeking to develop partnerships with major customer
firms. organizations are outlined.
Continued
209
Appendix A. The IRM literature Continued 210
O’Malley, UPS F Six phenomenological group discussions Identifies privacy issues which impact on the process of relationship
Patterson, & were carried out in the UK. Consumers building. It suggests that what some consumers define as “intrusion” is
Evans, 1997, discuss companies’ policies. what has been called “intimacy” by marketers. Nine propositions are
JMM presented which reflect the implications of current approaches to
relationship marketing in consumer markets. The integral elements of
meaningful relationships are absent or inhibited as a result of consumer
concerns over intrusion of their privacy. Thus, marketers need to adapt their
attitudes, behaviors, and processes in order to accommodate the
participation of the consumer in the relationship.
Smith & DY F Canadian subsidiaries of two A trust-based model of effective selling partner relationships offered and
Barclay, 1997, multinationals in the computer industry. tested. Partial Least Squares analysis found that organizational differences
JM Sample size consisting of 103 dyadic were modest predictors of three dimensions of mutual perceived
relationships. trustworthiness, which in turn differentially affected three trusting
behaviors. Trusting behaviors were found to have a somewhat greater effect
on perceived task performance than on mutual satisfaction, whereas
dimensions of trustworthiness had both direct and indirect effects on
satisfaction.
Kumar, UPS F Dutch auto dealers’ punitive actions Dealers’ punitive actions toward their key suppliers are affected by their
Scheer, & toward key suppliers as a function of perceptions of their own and their supplier’s interdependence and punitive
Steenkamp, perceived supplier interdependence. capabilities as well as by the supplier’s punitive actions. The authors test
1998, JMR Sample size = 289, also used in the hypotheses based on bilateral deterrence, conflict spiral, and relative power
1995 study. theories, but none of these comprehensively explains the effects of both
total power and power asymmetry. Interdependence asymmetry has no
direct effect on punitive actions, whereas punitive capability asymmetry
does. Dealers with a relative advantage in dependence or punitive capability
are more likely to reciprocate their supplier’s punitive actions.
Abramson & DNS I Canadian companies doing business in Buyer–seller relationships in Southeast Asia’s relationship marketing-style
Ai, 1998, MIR the S.E. Asian markets of Singapore, are based on trust, mutual benefits, shared goals, and a harmonious
Malaysia and Indonesia. Sample size = approach to handling disagreements were strongly related to reduced levels
103, combining both home and host of received environmental uncertainty and a variety of improved
market offices of Canadian suppliers. performance outcomes compared with the use of more opportunistic
transactional relationships.
Continued
Appendix A. The IRM literature Continued
Brennan & DY F 13 buyer–seller relationships were Confirmatory evidence is described supporting earlier arguments that the
Turnbull, 1999 investigated, between 6 purchasing concepts of power and social exchange in relationships are important
organizations and 9 supply companies. drivers of adaptive behavior. These factors are not exhaustive and the
The fieldwork was conducted in the strategic marketing orientation of the partners to a relationship is also
UK, with firms headquartered in Europe relevant.
and North America.
Grayson & UPS F The study examines relationships Replicates and extends the work of Moorman, Zaltman, and Deshpande
Ambler, 1999, between 200 advertising agency clients (1993). Results confirm seven of ten hypotheses proposed in the original
JMR, and their agencies in the United article that there is no hypothesized link between relational factors (such as
Kingdom. clients’ trust in their service providers) and clients’ use of marketing
services. It extends the original study by supporting the general hypothesis
that long-term relationships have a negative impact on service use, which
dampens the impact of trust. The results shed light on the mediating role
that certain “dark side” constructs play in marketing services relationships.
Söllner, 1999, DNS F Asymmetrical commitment between The study claims that the construct of commitment can help explain the
JBR German sales engineers and service functioning of close interorganizational relationships with respect to risks,
providers. Sample size = 94. governance mechanisms, and performance of relational exchange.
Haugland, 1999, DNS I Longitudinal data were obtained from Focuses on factors influencing the duration of buyer–seller relationships.
JBR Norwegian exporters of salmon The results indicate that relational investments are positively associated with
regarding their importers in the US and relationship duration; whereas, hierarchical governance mechanisms are
Japan. A sample of 11 firms reporting negatively associated with relationship duration. Furthermore, the results
on 22 relationships; 12 relationships suggest that governance by relational norms is an important element in
remained in 18 months. designing durable relationships.
Alexander & DNS MC Presents the findings of a survey carried Identifies factors that influence the development of financial services within
Colgate, 2000, out among the financial directors of retail organizations. Considers the introduction of financial services within
EJM leading retail companies in Australia, the context of retailers’ relationships with their customers and retailers’
Ireland, New Zealand and the UK. ability to build closer relationships with existing and potential customers.
Considers the opportunities which financial services provide for retailers

more from a transactional to relationship approach to marketing.
Continued
211
Appendix A. The IRM literature Continued 212
Chien & UPS F Selected PC purchasing behavior among Offers an explanation of relationship marketing through a conceptualization
Moutinho, college students in Taiwan. Sample size grounded on a higher level metaphor, theorized from derived abstraction,
2000, JMM = 240. and tested on empirical definition. Utility and projectability, reciprocity and
legitimacy are analyzed in the context of relationship marketing.
O’Toole & UPS F A survey of UK buyers in the Investigates the linkage between individual relationship structures and their
Donaldson, engineering, electronics and performance. Four relationship structures were shown to have different
2000, JMM telecommunications sectors. Buyers performance outcomes on the 20 dimensions of financial and non-financial
were asked to report on their performance. Different types of long-term buyer–supplier relationships have
relationship with a key supplier. Sample different performance outcomes. Each structure would appear to have a
size = 200. discernible pattern of performance. Most notable was the broad range of
performance possibilities of bilateral structures and the weak comparative
performance of the dominant partner relationship structure.
Pressey & UPS F Consumer’s views of “high street” Focuses on potential difficulties in implementing a relationship marketing
Mathews, 2000, service providers. Sample size = 301. strategy. A number of attributes characterize the nature of the service and
JSM market structure are influential in an organization’s ability to implement
relationship marketing: balance of power, level of involvement with the
purchase, professionalism of the service provider, and level of personal
contact. Seven dimensions of relationship marketing are evaluated in 4
service contexts (hairdresser/barber, optician, recreation center, and
supermarket). Findings indicate that because of the influence of the 4
factors identified above, hairdressers, opticians, and recreation centers are
more likely to operate in conditions that give greater support to the
development of relationship marketing.
Chadee & DNS I Guanxi influences upon performance of Path analysis is used to assess the impacts of guanxi on export performance
Zhang, 2000, New Zealand firms exporting to China. of a sample of New Zealand firms exporting to China. The results show
JGM Sample size = 62. that guanxi variables significantly facilitate trade partnering, business
negotiations and problem solving, and generally contributes positively to the
overall export performance of firms.
a
DNS = downstream; DY = dyadic; UPS = upstream.
b
F = Single-country, non-US data; I = data pertaining to relationships with non-domestic entities; MC = pooled multi-country data.
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Relationship Marketing in an International Context: A

Article in International Business Review · April 2003

Saeed Samiee Peter Walters

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Relationship marketing in an international

Interest in the impact of buyer–seller relationships in business markets has

cance of the development and management of relationships with channel members

IRM constructs, research methodologies and findings. Inasmuch as three streams of

2. Exchange relationship governance

In order to better understand the genesis of the RM perspective, it is useful to

The focus of this review is on internationally-oriented published empirical research

4.1. Characteristics of the extant literature

Although the RM paradigm did not emerge as a separate conceptual framework

1980s 1990s+ Total

Journal of Marketing Research 2 3 5

Internationala Foreignb Multi-countryc Total

4.2. Relationship direction

4.3. Main constructs

4.4. Research issues

4.5. Methodology issues

Upstream Downstream Dyadic

Upstream Downstream Dyadic

The influence of long-term relationships on service use and

5.1. Upstream studies

5.2. Downstream studies

5.3. Dyadic studies

As reported in Table 2, a dyadic approach was identified in four IRM articles

6. Discussion and implications for future research

This review draws attention to several important issues in investigations concern-

commitment) naturally incorporate cultural dimensions. However, to our knowledge,

Study Dira Typeb Characteristics Comments

Study Dira Typeb Characteristics Comments

Study Dira Typeb Characteristics Comments

Study Dira Typeb Characteristics Comments

Considers the opportunities which financial services provide for retailers

Study Dira Typeb Characteristics Comments

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