The principle of the conservation of business relationship energy: or many kinds of new beginning

Authors: Ian Wilkinson; Virpi Havila

The relationship termination phase has received rather less attention in the literature than other aspects of relationship development. In this article we focus on the stage when the firms involved stop doing business with each other. We argue that relationship ending is problematic in that, even when trading stops, there still seems to exist a kind of “relationship energy” which continues on, especially in the social bonds that have been created. We propose a new principle of the “conservation of relationship energy” which states that it cannot be destroyed and that it can only be transformed and transferred to other relationships, manifesting itself in a variety of ways. “Relationship energy” provides opportunities for the same relationship to be reactivated at a later time, and helps or hinders the formation and continuation of other relationships as this energy travels with people to other organisations and contexts. The principle is illustrated using three case studies of relationships that have ended, drawn from the IMP2 data base. The analysis provides new ways of analysing the relationship termination phase as a more dynamic ongoing process and suggests new ways of evaluating relationship outcomes.

Journal: Industrial Marketing Management (31 – 191-203)

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Publish Year: 2002

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