A competency based theory of business partnering : an empirical study of Australian business-to-business partnerships

Abstract

This research, conceptualizes, operationalises and empirically tests a competency-based theory of business-partnering performance within an Australian business-partnering context. Drawing on theory from social psychology and marketing, the research integrates a number of theoretical approaches including resource-based theory, competency based theory, relational factors view, relational interaction theory, and competitive advantage theory to explain why some business partnerships are more successful than others are. The results use a ‘process model of business-partnering’ performance to explain the interaction process through which business partners exploit the available partnering related ‘operant resources’ and how these resources influence the performance of business partnerships and their ability to achieve a competitive advantage. Specifically, this research investigates a number of important internal resources, which facilitate the building, and maintaining of external business partner relations including ‘joint alliance competence’, ‘joint alliance structure’, ‘interpersonal relational competence’ and ‘market orientation’. This research shows that an adequate understanding of how these ‘operant resources’ are deployed/accessed and co-created by the business partners to achieve a competitive advantage requires integration of ‘relational interaction theory’ into ‘resource-based theory’ and ‘competency-based theory’. The results of this research show that those firms that pursue business partnerships as a competitive strategy can improve performance by engaging in a range of activities, which facilitate the building of ‘relational capital’ of the partnership. The results provide support for conclusion that ‘communication behaviour’ is a central and important mediating variable in the performance of business partnerships. Overall, the findings are consistent with the literature in finding support for the notion that ‘joint alliance competence’ is a direct antecedent of businesspartnering performance. There is support for the notion that the partnership's ability to govern and manage itself is an important determinant of ‘communication behaviour’ and ‘co-ordination behaviour’. The results identified ‘market orientation’, ‘co-ordination behaviour’ and ‘relational capital’ as all having a direct influence on business-partnership profitability. Finally, given the relatively high failure rates of business partnerships this research provides greater opportunity for a discussion of the kinds of intervention strategies that could be used to minimise the risk of failure and/or to improve partnership performance. Keywords: competency, alliance, business partnership, relationship marketing, business partnering competency, relational factors view, resource based view, relational interaction theory, market orientation, interpersonal relational competency, alliance structure, process model.