Developing an alternative approach to the measurement of B2B relationship health

Abstract

PurposePsychotherapy is often used to treat dysfunctional inter-personal relationships, but it is rarely used to treat dysfunctional B2B relationships. Yet many of the variables found in inter-personal relationships are also found in B2B relationships and both types of relationships have similar fail rates. The authors take a multi-disciplinary approach by adapting an instrument from marriage therapy into a new measure called the Business Relationship Health Index (BRHI). In the process we re-evaluate the drivers of B2B relationships.Design/methodology/approachThe authors apply the Global Assessment of Relational Functioning (GARF) psychiatric system to B2B relationships. The GARF instrument incorporates three components: interaction/problem solving, organization/structure and emotional climate. Using US panel data of 500 B2B relationships based in the USA, the authors use partial least squares analysis and develop a structural equation model to test the validity and reliability of the BRHI with some well-known relationship measures including, satisfaction, trust, commitment and performance.FindingsThe findings support a strong link between the BRHI (emotion, interaction and organization) and relationship performance. The proposed measure shows a strong link between BRHI and relationship performance (R2 = 0.54).Originality/valueThe GARF instrument has never been applied to a B2B context. BRHI is a holistic instrument used for assessing the specific relational characteristics of B2B relationships. The BRHI can benefit relationship stakeholders when used as a diagnostic tool to prioritize B2B investment strategies. Managers can use BRHI to determine the extent to which the relationship is healthy or needs repair, re-evaluation, re-commitment, or repositioning.