CUSTOMER-SUPPLIER RELATIONSHIPS AS A MEANS OF VALUE CREATION LES RELATIONS CLIENT-FOURNISSEUR COMME OUTILS DE CRÉATION DE VALEUR

Transcription

1 AURELIA LEFAIX-DURAND CUSTOMER-SUPPLIER RELATIONSHIPS AS A MEANS OF VALUE CREATION LES RELATIONS CLIENT-FOURNISSEUR COMME OUTILS DE CRÉATION DE VALEUR Thèse présentée à la Faculté des études supérieures de l Université Laval dans le cadre du programme de Doctorat en Administration pour l obtention du grade de Philosophiae Doctor (Ph.D) MANAGEMENT SCIENCES DE L ADMINISTRATION UNIVERSITÉ LAVAL QUÉBEC 2008 Aurélia Lefaix-Durand, 2008

2 ii Abstract This dissertation argues that customer-supplier relationships are a means of value creation and represent a solution for organizations to increase their competitiveness. The research conducted to validate this thesis targets Canadian wood products manufacturers and follows the steps of exploration, theory building and empirical assessment. An exploratory study first documents the critical trends reshaping the supply chain of structural wood products for residential construction in North America and provides empirical data on procurement strategies of the largest U.S. homebuilders. Findings ground the necessity to focus on value creation and interfirm relationships to help Canadian wood products manufacturers capitalize on the changes detected in the business environment. A theoretical model is then built to identify and relate the key elements of the phenomenon of interfirm relationships as a means of value creation. This step leads to, on the one hand, extending the emergent construct of relationship value to measure value creation in relationships, and on the other hand, developing a new construct, exchange orientation, to position the nature and governance of relationships on the transactional/relational continuum. Finally, a multiple-case study investigates interfirm relationships in the North American supply chain for structural wood products through the lens of this new orientation/value approach to relationships. The findings indicate that a relational exchange orientation is associated with a superior relationship value for customers and with a competitive edge for suppliers. While the findings do not suggest abandoning a transactional orientation altogether, they do advocate that customer-supplier relationships should be strategically managed according to their value and the appropriate exchange orientation.

3 iii This work thus underlies the future development of a general theory of business relationships. Such a theory will support the strategic management of customer-supplier relationships, likely to be one of the most powerful sources of value creation and competitive advantage in the next decades. Keywords Customer-supplier relationships; relationship value; relationship management; value creation; competitiveness; wood products.

4 iv Résumé La thèse soutenue dans cette étude établit les relations clients-fournisseurs comme des outils de création de valeur à privilégier pour améliorer la compétitivité des organisations. La recherche conduite pour valider cette thèse repose sur le cas particulier des fabricants canadiens de produits du bois et s articule autour des étapes suivantes : exploration, théorisation et investigation empirique. Tout d abord, une étude exploratoire documente les principales tendances qui transforment le commerce des produits du bois structuraux en Amérique du Nord et fournit des données empiriques sur les stratégies d approvisionnement des plus gros constructeurs aux Étatsunis. Les résultats soulignent la nécessité de placer la création de valeur et les relations interentreprises au cœur de la réflexion stratégique des fabricants canadiens de produits du bois pour leur permettre de réagir adéquatement aux changements détectés dans l environnement d affaires. En deuxième lieu, un modèle théorique est élaboré pour identifier les éléments clés du phénomène de création de valeur au sein des relations interentreprises et expliquer les liens entre ces éléments. Cette étape conduit à développer d une part, le concept émergent de valeur des relations pour mesurer la création de valeur au sein des relations d affaires et d autre part, à développer un nouveau construit, l orientation d échange, afin de positionner la nature et la gouvernance des relations dans le continuum transactionnel/relationnel. Finalement, une étude de cas multiple est entreprise dans la chaîne d approvisionnement nord-américaine des produits du bois structuraux pour examiner cette nouvelle approche valeur/orientation des relations interentreprises. Les résultats obtenus indiquent qu une orientation d échange relationnelle est associée à une valeur des relations supérieure pour les clients et à un avantage compétitif pour les fournisseurs. Les résultats n incitent toutefois pas les gestionnaires à abandonner toute orientation transactionnelle mais à gérer stratégiquement leurs relations d affaires en fonction de la valeur de ces relations et de l orientation d échange adéquate.

5 v Ainsi, cette étude fonde le futur développement d une théorie générale des relations d affaires qui est nécessaire pour implanter une gestion stratégique des relations. La gestion stratégique des relations client-fournisseur est en effet perçue comme l une des plus puissantes sources de création de valeur et d avantage compétitif dans les décennies à venir. Mots-clés Relations client-fournisseur; valeur des relations; gestion des relations; création de valeur; compétitivité; produits du bois.

6 vi Foreword This dissertation contributes to knowledge in strategic management, in close association with interests in strategic marketing, relationship marketing, and supply chain management. This work has been designed specifically to answer strategic issues in the Canadian wood products industry but the results can be extended to other business contexts. Following the logics of exploration, theory building and empirical assessment, the present dissertation includes three papers which have resulted from an extensive collaboration with scholars and professionals in administration and forest sciences. Papers #1, #2 and #3 are inserted in the dissertation as Chapters 2, 4 and 5, respectively. The first paper is inserted as published by the Journal of Forest Products Business Research (2006). An English translation of the second paper, published in the French Management Review [in French: Revue Française de Gestion] (2006), is inserted. Finally, the third paper is inserted in a version prior to submission to the Journal of Industrial Marketing Management (December 2007). References for these papers are as follows: Paper #1: Lefaix-Durand A., Robichaud F., Beauregard R., Kozak R., Frayret J.M., and Poulin D., Procurement Strategies in the Homebuilding Industry: An Exploratory Study on the Largest Builders in the United States. Journal of Forest Products Business Research, Volume 3, Article No. 6, June 2006 ( Paper #2: Lefaix-Durand A., Poulin D., Beauregard R., and Kozak R. Relations interorganisationnelles et création de valeur : Synthèse et perspectives [Interfirm relationships and Value Creation: Synthesis and Perspectives]. Revue Française de Gestion, ed. Lavoisier, Volume 32, Issue 164, May 2006, pp ;

7 vii Paper #3: Lefaix-Durand A., Kozak R., Poulin D., and Beauregard R. Superior Relationship Value in the Trade of Structural Wood Products: a Transactional or Relational Exchange Orientation? Submitted to Industrial Marketing Management (December 2007). Affiliations of co-authors for these papers are as follows: Diane Poulin is Professor at the Faculté des sciences de l administration, Université Laval (Québec, Canada); Robert Beauregard is Dean at the Faculté de foresterie et de géomatique, Université Laval (Québec, Canada); Robert Kozak is Associate Professor at the Faculty of Forestry, University of British Columbia (Vancouver, Canada); Jean-Marc Frayret is Assistant Professor at the Department of Mathematical and Industrial Engineering, University Polytechnique (Montreal, Canada); François Robichaud is Market Analyst at Forintek Corp., the Canadian Research Institute on Wood Products (Quebec, Canada), and a Ph.D. Student at the Faculty of Forestry, University of British Columbia (Vancouver, Canada). As a first author on these papers, I have been in charge of the research design, the literature review, the manuscript redaction, and most of the data analyses. For Paper #1, François Robichaud had a significant contribution in the research design, and in the data collection and analysis. The other co-authors who are also members of my thesis committee advised me according to their respective field of expertise and have carefully reviewed the manuscripts.

8 viii Abstracts (Inserted Papers) Paper #1 Title Procurement Strategies in the Homebuilding Industry: An Exploratory Study on the Largest Builders in the United States. Abstract In a context of market orientation, the softwood lumber and composite panel industries have little choice but to consider the needs of homebuilders. In view of the consolidation of the homebuilding industry and of their position as leaders, large homebuilders are considered to be gaining particular purchasing power, as well as influence over building techniques and preferred business relationships with suppliers. Increasingly, large builders are looking for easy-to-install products, engineered wood products and more off-site construction solutions. However, strategies they employ in developing and shaping business relationships with suppliers are not yet well understood. This exploratory study investigates the large U.S. homebuilders with respect to changes in procurement sources and arrangements, collaborative practices and information technology use. This study underlines a need for further research to focus on interfirm relationships and the possible emergence of value-creating networks for structural wood products. Keywords Residential construction; wood products industry; value-added wood products; interfirm relationships; cooperation; electronic business; building techniques.

9 ix Paper #2 Title Interfirm Relationships and Value Creation: Synthesis and Perspectives. Abstract This study provides a better understanding of interfirm relationships (IRs) as a means of value creation. Based on a comprehensive cross-disciplinary literature review, a conceptual framework is put forth which integrates aspects of the nature, governance, and outcomes of IRs, as well as of the business environment. The linkages between these four key elements indicate that value creation within relationships varies according to the exchange orientation (transactional/relational) between organizations and the coherence between the nature and the governance of IRs. Relationship management and the development of a relational competence emerge as the next sources of competitive advantage. Keywords Value creation; interfirm relationships; marketing orientation; relationship marketing; governance; customer-supplier relationships management.

10 x Paper #3 Title Superior Relationship Value in the Trade of Structural Wood Products: a Transactional or Relational Exchange Orientation? Abstract Relationship marketing assumes that relational exchange generates greater value than transactional exchange. This conjecture warrants particular attention in the trade of wood products where exchange is traditionally transaction-based. This study addresses whether a transactional or relational exchange orientation (EO) leads to a higher relationship value (RV) between suppliers and customers. A multiple-case study was used to investigate such relationships in the North American supply chain of structural wood products for residential construction. The results suggest that RV is superior in a relational EO due to the occurrence of longer-term relationships and higher degrees of interdependence, commitment, trust, communication, cooperation, and coordination between organizations. The results indicate that a relational EO can lead to a superior value for customers and a competitive edge for suppliers. While the findings do not support abandoning a transactional EO altogether, they do speak to the need for managers in the wood products industry to strategically manage business relationships according to RV and the appropriate EO. Keywords Customer-supplier relationships; relationship value; exchange orientation; competitiveness; wood products.

11 xi Résumés (articles insérés) Article 1 Titre Les stratégies d approvisionnement dans l industrie de la construction : une étude exploratoire auprès des gros constructeurs de maisons aux États-Unis. Résumé Dans le cadre d une orientation marché, l industrie des produits du bois n a d autre choix que de considérer attentivement les besoins du secteur de la construction résidentielle. En raison du mouvement de consolidation et de leur statut de meneurs de jeu, les gros constructeurs aux États-Unis gagnent considérablement en pouvoir d achat et en influence sur les techniques de construction et sur les relations d affaires. Toutefois, leurs stratégies d approvisionnement et leurs relations avec les fournisseurs sont encore méconnues. Cette étude vise à explorer les changements en cours concernant les sources et les ententes d approvisionnement, les pratiques de collaboration et l utilisation des technologies de l information dans la construction résidentielle à grande échelle aux États-Unis. Elle met à jour le besoin pour la recherche future de focaliser davantage sur les relations clientsfournisseurs et suggère l émergence de réseaux de création de valeur pour les produits du bois structuraux. Mots-clés Construction résidentielle; industrie des produits du bois; produits du bois à valeur ajoutée; relations interentreprises; coopération; affaires électroniques; techniques de construction.

12 xii Article 2 Titre Relations interorganisationnelles et création de valeur Synthèse et perspectives. Résumé Cette étude aide à mieux comprendre comment et pourquoi les relations interorganisationnelles (RIO) créent de la valeur. Sur la base d un état de l art pluridisciplinaire, un cadre conceptuel intègre les retombées, la nature, la gouvernance et l environnement d affaires des RIO. L examen des liens entre ces quatre éléments clés indique que la création de valeur varie en fonction de l orientation d échange (transactionnelle/relationnelle) entre les organisations et de la cohérence entre la nature et la gouvernance des RIO. La gestion des RIO et le développement d une compétence relationnelle sont alors mis en relief comme étant les sources de l avantage concurrentiel de demain. Mots-clés Création de valeur; relations interorganisationnelles; orientation marketing; marketing relationnel; gouvernance; gestion des relations client-fournisseur.

13 xiii Article 3 Titre Pour une valeur des relations d affaires supérieure en contexte de commodités : une orientation d échange transactionnelle ou relationnelle? Résumé Le marketing relationnel pose pour acquis qu un échange de type relationnel crée davantage de valeur qu un échange transactionnel. Cette supposition mérite tout particulièrement d être validée dans le cadre du commerce des produits du bois, développé sur une base transactionnelle. Une étude de cas multiple est conduite dans le but d analyser l impact de l orientation d échange (relationnelle ou transactionnelle) sur la valeur des relations d affaires entre clients et fournisseurs au sein de la chaîne d approvisionnement des produits du bois structuraux pour la construction résidentielle en Amérique du Nord. Les résultats montrent qu une orientation d échange relationnelle conduit à une création de valeur supérieure pour les clients et à un avantage compétitif pour les fournisseurs. Toutefois, ces résultats n incitent pas les gestionnaires à abandonner toute orientation transactionnelle mais à gérer stratégiquement leurs relations d affaires en fonction de la valeur de ces relations et de l orientation d échange appropriée. Mots-clés Relations clients-fournisseurs; valeur des relations d affaires; orientation d échange; compétitivité; produits du bois.

14 xiv Acknowledgments The author deeply thanks the persons involved in the following organizations: CIRRELT (Centre Interuniversitaire de Recherche sur les Réseaux d Entreprise, la Logistique et le Transport / Joint Research Center on Networks, Logistics and Transportation), Université Laval, Université de Montréal, École Polytechnique de Montréal, HEC Montréal, UQAM ( and particularly Diane Poulin, Egide Karuranga, and Connie Van Horne of Université Laval; CIBISA (Chaire Industrielle sur les Bois d'ingénierie Structuraux et d'apparence, / Industrial Chair on Engineered Wood Products for Structural and Appearance Applications), Université Laval ( and particularly Robert Beauregard and Benoit St Pierre of Université Laval; C-BOM (Collaborative for Business and Operation Management), University of British Columbia ( and particularly Rob Kozak and Anne-Hélène Mathey of University of British Columbia; FORAC (Consortium de recherche sur les affaires électroniques dans l'industrie forestière / Research Consortium on Electronic Business in the Forest Industry), Université Laval ( and particularly Sophie d Amours and Marie-Josée Roy of Université Laval, as well as Jean-Marc Frayret of École Polytechnique de Montréal; Forest Business Solutions group, College of Forestry, Oregon State University ( and particularly Pablo Crespell, Eric Hansen, and Chris Knowles; FPInnovations - Forintek (Canada s Wood Products Research Institute); and particularly Chris Gaston and François Robichaud; Institution Financière DESJARDINS, and particularly Jacqueline Bédard and Richard Boursier; The Faculty and Ph.D. Program in Business Administration at Université Laval; especially Michel Audet, Karine Barquin, Marie-Claude Beaulieu, Mario Cayer, Anne Falardeau, André Gascon, Antoine Gautier, Réjean Landry, Johanne Nadeau, and Marie-Josée Roy of Université Laval;

15 xv The industrial partners of C-BOM, CIBISA and FORAC; particularly Abitibi Consolidated, Ainsworth, Canfor, Cascades, Freneco, Jager Building Systems, Nordic-Chantiers Chibougameau, TBS, Ultratec; and especially the incognito primary informants in the case study (Adrian, Chris, David, Jim, Brian, and Richard) as well as their valuable customers. The author also warmly thanks Taïeb Hafsi of HEC Montréal, Dorothy Paun of University of Washington, Wolfgang Ulaga of HEC Paris, and Richard Vlosky of Louisiana State University. This study was partly funded by CIBISA, FORAC and Institution Financière DESJARDINS.

16 Alexandra, Amy, Anne-Hélène, Antje, Bastien, Caroline B, Caroline L, Céline, Claude, Diane, Denise, Élyse, Égide, Eva, François, Frédérique, Jean-François, Jochen, Leila, Maman, Marlène, Martin, Matei, Papa, Pablo, Rob, Sophie, Rodolphe, Tom, Véronique, Vincent et aux nombreuses improbabilités qui ont rendu ce doctorat possible.

17 xvii Table of Contents Abstract... ii Résumé...iv Foreword...vi Abstracts (Inserted Papers)... viii Résumés (articles insérés)...xi Acknowledgments...xiv Table of Contents... xvii List of Tables...xx List of Figures...xxi 1. Introductory Chapter Purpose of the Study Research Context Strategic Issues in the Canadian Forest Sector Supply Chain for Structural Wood Products Canada-U.S Structure of the Dissertation Exploratory Study Introduction and Purpose Theoretical Background Overview of the U.S. Housing Sector The evolving U.S. Housing Sector Suppliers Attempt to Adapt in Procuring Wood Products New Business Practices in the Forest Products and Construction Sectors Methods Targeted Population Data Collection Method and Analysis Results Respondents Profile Sector Overview Emerging Issues Discussion and Future Research Conclusion Literature Review Value Creation Overview Conceptualization and Operationalization Development of the Value Literature Key-influences (1980s) Recent Developments (1990s) Newest Developments (late 1990s) Interfirm Relationships as a Means of Value Creation A Cross-Disciplinary Perspective Theories Explaining the Phenomenon...78

18 4. Theoretical Framework Introduction Key Elements of Interfirm Relationships Outcomes of Interfirm Relationships Nature of Interfirm Relationships Governance of Interfirm Relationships The Business Environment Integration into a Theoretical Model Links between Factors Characterizing the Nature of IRs Links between Factors Characterizing the Governance of IRs Links between Nature and Governance of IRs Links between Nature, Governance, and Outcomes of IRs Links between Environment, Nature, and Governance of IRs Discussion and Future Research Case Study Introduction Background Research Objectives Methods Findings Value of customers Value for customers How suppliers perceive their value offerings and competitiveness Impact of exchange orientation on relationship value Discussion Research and managerial implications Study limitations Conclusion Concluding Chapter Summary of results General Discussion Contributions and Limitations Concepts Methods Managerial Practices Research Evaluation Future Research Towards a General Theory of Business Relationships Towards a Strategic Relationship Management (SRM) Bibliography Annex 1 Exploratory Study / Survey Instrument Introduction Use of Building Systems Relationships / Strategic Alliances Information and Communication Technologies Use Procurement Sourcing Annex 2 Case Study / Methodological Developments xviii

19 1. Measures Relationship Value (RV) Exchange Orientation (EO) Detailed Research Protocol Phase #1. Adaptation of the Measure of RV Phase #2. Selection of Relationships Phase #3. Evaluation of the Relative Importance of RV Dimensions Phase #4. Assessment of Relationship Value Phase #5. Assessment of Exchange Orientation Annex 3 Case Study / Interview Guide Value of customer Value for customer Annex 4 Case Study / Questionnaire A Annex 5 Case Study / Questionnaire B Benefits Costs Annex 6 Case Study / Questionnaire C Proximity Interdependence Time Orientation Communication Trust Commitment Cooperation Regulation Coordination Structure xix

20 xx List of Tables Table 1 Respondents range of closings and revenues for Table 2 Estimated consumption by U.S. Top 100 homebuilders...32 Table 3 Procurement sources for large U.S. homebuilders surveyed...35 Table 4 Procurement channels for structural wood products...37 Table 5 Indicators of value creation in interfirm relationships...90 Table 6 Characterization of exchange orientation (EO) Table 7 Sample characteristics Table 8 Research Protocol Table 9 Criteria, methods and results for evaluating the research Table 10 Measure for relationship value (RV) Table 11 Measure for exchange orientation (EO)...200

21 xxi List of Figures Figure 1 Overview of the research context...14 Figure 2 A flowchart of the study...16 Figure 3 Respondents geographic markets in the U.S...31 Figure 4 Current cooperation between large U.S. homebuilders and their suppliers...39 Figure 5 IT applications used by large homebuilders to interact with their suppliers...40 Figure 6 Large U.S. homebuilders opinions on trends over the next five years...42 Figure 7 A possible value-creating network for structural wood products...48 Figure 8 Characterization of the environment, nature and governance of IRs...98 Figure 9 Integrative theoretical model of IRs Figure 10 Conceptual model of the impact of EO on RV Figure 11 Positions of analyzed relationships in the orientation/value matrix Figure 12 Dimensions of RV: suppliers and customers opinions Figure 13 Overall RV, benefits, and cost reductions compared to competition Figure 14 Suppliers perceptions of RV components related to costs and benefits Figure 15 Profile of customer relationships according to RV and EO...135

22 xxii List of Symbols and Abbreviations B2B Business-to-business B2C Business-to-consumer CAD Computer-aided design CDVC Customers desired value change CLV Customer lifetime value CRM Customer relationship management DFMA Design for manufacture and assembly EDI Electronic data interchange EO Exchange orientation ERP Enterprise resource planning (systems) EWP Engineered wood products GDP Gross domestic product ERV Expected relationship value HRM Human resources management IMP Industrial marketing and purchasing (group) I/O Industrial organization theory IOIS Inter-organizational information system IOS Inter-organizational system IRs Interfirm relationships IS Information system IT Information technology LVL Laminated veneer lumber NAHB National Association of Home Builders NAICS North American industry classification system (since 2002) NPD New product development OSB Oriented strand board RBV Resource-based view RV Relationship value RET Relational exchange theory SCM Supply chain management SET Social exchange theory SIC Standard industrial classification (until 1997) SIPs Structural insulated panels SRM Strategic relationship management SME Small and medium enterprise SWOT Strengths-weaknesses-opportunities-threats model TCA Transaction costs analysis U.S. United States

23 1 1. Introductory Chapter The author of this study believes that one core objective of research in strategic management is to support sustainable development of businesses. To this end, research should target a better understanding of evolving business environments and develop conceptual and operational tools for practitioners. The present study has been designed with this objective in mind Purpose of the Study The research has been initiated in the early 2000s to better understand how businesses are to navigate the combined effects of accelerating globalization and fast developing information technologies. The Canadian forest industry seemed especially relevant for grounding a study in this objective. Indeed, its long-term survival as a major contributor to the Canadian economic, social, and environmental wealth is currently threatened. This chapter later presents rationales supporting this premise and explains choices to reduce the scope of the study to structural wood products for residential construction between Canada and the United States (U.S.). Focusing on the supply chain for structural wood products in North America has required a better understanding of strategic issues at stake in this business area. Because of a gap in knowledge with respect to changes impacting the end-users for structural wood products, an exploratory study was undertaken investigating the large U.S. homebuilders procurement strategies. This exploratory study empirically documents various trends (e.g., consolidation, factory-built methods, value-added wood products, strategic partnerships, electronic business, and supply chain management) and the evolving linkages between the

24 2 homebuilding and wood products industries. The study highlights the need for Canadian wood products suppliers to add value to both their products (to adapt to industrialization and prefabrication in construction) and their business practices (to address anticipations of shorter supply chains and increased cooperation and use of information technologies with suppliers). The general question guiding the research thus emerged from the exploratory study as: How can Canadian wood product manufacturers add value to both their products and business practices in order to face current strategic issues detected in their business environment? Answering this question, the dissertation supports the following thesis: Suppliers can increase their value offerings and hence their competitiveness by strategically managing their business relationships according to the value of these relationships and the appropriate exchange orientation. Accordingly, the general objective of the research is to show why and how customersupplier relationships are to be used as tools to enhance suppliers value offerings and competitiveness. The phenomenon under study is: interfirm relationships as a means of value creation. Answering the general research question has required a broad understanding of value creation. A cross-disciplinary literature review was conducted to develop this understanding (in the fields of strategic management, marketing, operations management, research and development, logistics, and information systems). This review of the literature shows the breadth of research as regards value creation and highlights important challenges in defining and operationalizing the concept of value. Overall, this review reveals the central role played by interfirm relationships in value creation.

25 3 Yet, the diversity of approaches to the phenomenon sheds confusion. Existing publications fail to offer a broad yet clear understanding about how and why interfirm relationships can create value. To close this gap, the present research offers a theoretical framework integrating four key elements of interfirm relationships: their nature, their governance, their outcomes, and their business environment. Building on the emergent concept of relationship value (RV), this framework structures the many positive outcomes (i.e., value creation) associated with customer-supplier relationships. In addition, this framework supports the development of a new concept, exchange orientation (EO), proposed in this study to characterize the nature and governance of business relationships along the transactional/relational continuum. In particular, one research proposition drawn from the theoretical framework suggests that RV is influenced by EO. An explanatory case study was then conducted to examine empirically this proposition. The multiple-case study investigates relationships between three Canadian wood products suppliers and their customers in the North American supply chain for residential construction. The purpose of this case study is to determine whether a relational or a transactional EO generates superior RV. Methodological developments provide empirically tested tools that help measure and monitor EO and RV. Results of this case study suggest that RV is superior in a relational EO due to the occurrence of longer-term relationships, and higher degrees of interdependence, commitment, communication, trust, cooperation, and coordination between firms. These findings indicate that a relational EO can lead to superior value for customers and with a competitive edge for suppliers. While the findings do not support abandoning a transactional EO altogether, they do speak to the need for managers in the wood products industry to strategically manage their business relationships according to RV and the appropriate EO. Finally, implications of this study at the theoretical, methodological, and managerial levels are outlined, as well as opportunities for future research towards the development of a