Relational embeddedness, <b><i>tertius iungens</i></b> orientation and relationship quality in emerging markets

Abstract

Purpose The purpose of this paper is to investigate in an emerging market (India), the impact of relational embeddedness of dyadic business relationships on relationship quality (RQ) and the moderating impact of tertius iungens orientation (TIO) on this relationship. Design/methodology/approach A sample of 75 business managers from various industries in India was surveyed, and analysis was done using moderated multiple regression analysis. Findings The key finding of the study is that among the five different types of connection that a firm has (with competitors (C), value chain partners (V), internal (I), external (E) entities and auxiliary (A) connections), the A‐connections like those with banks, MR agencies, advertising agencies and other service providers, have the most favorable impact on relationship quality with firms’ customers, when its boundary personnel exhibit high TIO (bonding) towards their customer. However, the direct impact of A‐connection on RQ is negative, possibly due to the negative externalities such as sharing limited common resources. Other four connections were found to be insignificant. Research limitations/implications A major limitation of this study is sample size (75). Hence, the findings of this study may not be generalisable. Practical implications The findings of this study suggest that higher ability to bond disparate actors in network of business firm (TIO) have a strong and favorable impact on improving the RQ with its customers in embedded relationships. Originality/value The major contribution of the study is to explain the moderating role of TIO in the network embedded dyadic business relationships.