Investigating the internet's impact on interfirm relations

Abstract

Purpose The purpose of the paper is to show that research on the internet's impact on B2B inter‐firm relations is limited, while findings are anecdotal and sometimes contradictory. This study investigates inter‐firm relations amongst Business Travel Management (BTM) firms and their clients by examining the impact of online BTM solutions on the creation and reinforcement of relational bonds. Design/methodology/approach The paper shows that two major approaches were combined for examining inter‐firm relations: economic (transaction costs economics) and socio‐psychological (social exchange; inter‐organisation; and industrial network) theories. A model illustrating the interrelations amongst the use of online BTM solutions, two structural (communication, dependence) and two social bonds (trust, satisfaction) was proposed for investigating the impact of online BTM solutions on BTM‐clients relations. Data were gathered from a convenience sample of BTM managers in the UK, Greece, and Cyprus and 194 usable responses were analysed using structural equation modelling. Findings The paper finds that the impact of online BTM solutions on trust, satisfaction and dependence was not confirmed. However, the hypotheses reflecting the interactions between structural and social bonds were supported, which confirmed the mediating impact of internet‐enabled communication on fostering inter‐firm relations. Research limitations/implications In this paper the sample is convenient, while data are gathered only from the buyer‐traveller perspective. Larger scale, cross‐industry studies that also combine buyers' and sellers' perspectives are required. Practical implications The paper shows that the internet's ability to foster relational bonds was found to be dependent on its exploitation for enhancing inter‐firm communications. When using the internet for enhancing clients' relations and satisfaction, firms should exploit the internet's communication tools and identify clients' information needs for customising the communications' content. Originality/value The paper sees that the internet's impact on forming relational bonds and building B2B relations in the BTM context has not been previously researched.

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