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RELEVANCE OF SOCIAL EXCHANGE THEORY IN B2B SITUATION

Kunal R Joshi, Research Scholar, Department of Management, B N Bahadur Institute of Management Science, University of Mysore, Mysore.

Dr. D Anand, Professor and Chairman, Department of Management, B N Bahadur Institute of Management Science, University of Mysore, Mysore.

Abstract

It is often perceived that B2B engagements are pragmatic, and process oriented with limited or no room for emotional / personal decisions. However, we also observe that in many situations, the parties involved in transactions end taking emotional decisions as a part of obligatory commitment. This occurs when the parties swear obligation to each other, and this formulates the idea of social exchange that could possibly emerge between the parties. One party may have taken an obligation from another party, and he would be compelled to reciprocate the favor. We try to study this phenomenon and try to understand if social exchange can influence business decisions in organizational buying scenario. As Business-to-business purchase engagements are evolving and emerging each year with process taking more control of the transaction, it is interesting to note that concepts like social exchange can play some influence in Business buying decisions. Therefore, it would be important to study some of subtle aspects of social exchange theory and the concept of reciprocity between the buyers and sellers.

Keywords: Social Exchange, Social exchange theory, Reciprocation, Relationship, Business marketing, B2B Sales, BusinessSelling, Purchasing, Organizational buying.

Citation of this paper: Joshi, K. R., & Anand, D. (2024). Relevance of social exchange theory in B2B situation. VLEARNY Journal of Business, 1(1), 30–37. https://doi.org/10.5281/zenodo.10541230

 

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