What makes relationships between businesses similar to personal ones? 

Think about Apple’s iPhone, which uses Gorilla Glass and different component makers as well as FoxConn to manufacture the phones, and then various retailers to actually sell the things. These are examples of very symbiotic relationships that have benefited all of the companies involved, but they have to start from somewhere, right? 

So the question becomes: How do these organizations that begin as strangers form these strong relationships to begin with? In a way, it’s similar to meeting someone and becoming either friends or romantic partners. 

For the paper, we borrowed ideas for sociology and social psychology, as well as literature on marriage. And in addition to looking at what happens when relationships go well, we also looked at what happens when they go south – and you need to either find a way to repair things or sever the relationship. 

In addition, we attempted to model how at certain points of a relationship, certain actions are more important than others. For instance, communication is important throughout the duration of a relationship, but we found that it’s more vital at the beginning in order to establish norms. For companies, that means sharing as much data as possible earlier on so when it’s become a long-term relationship, you’re at the “finishing each other’s sentences” stage. 

With that being said, businesses don’t want to become so comfortable in their relationships that they neglect one another, so to speak. 

And like individual relationships, if there’s an act of betrayal or damage in another way, it’s important for both sides to find ways to compromise – otherwise, completely severing ties could lead to back word of mouth outside of the two businesses. 

What are some of the real-world impacts of this research? 

This can help firms learn how to adapt their approaches to how they deal with certain companies. For instance, imagine you’re Walmart, and you work with thousands of suppliers. You might already have a strong relationship with someone like Procter & Gamble, but you’re also dealing with hundreds of other firms of various other sizes. 

From Walmart’s perspective, they need to have a different approach to building relationships with all of them. There might already be trust with Procter & Gamble, but they’re still in the dating stage with others – and that means lots of visits to figure out if the relationship is worth it, and lots of communication to determine that it will be a beneficial relationship that could last for the long haul. 

Our research can help businesses adjust their approach to where they are in their relationships with various companies, so to speak. 

Outside of this paper, what else does your research encompass? 

I’m interested in a variety of topics, ranging from how some businesses give different discounts to certain buyers and what impact that has, to how companies become more digital overtime. 

Another piece I’ve been working on is the role of a physical retail store, and how for the past decade we’ve seen longtime physical retailers struggle while at the same time, traditionally digital companies like Amazon and Warby-Parker are moving into physical locations. 

In a way, a physical store is a learning mechanism for customers to determine what they do and don’t like. 

I’ve also studied the lines of succession within different businesses – something which isn’t different from the HBO show “Succession,” in a way.