Cretu, Anca Elena
(2023)
Business Engagement Practices, Patterns and Outcomes - A case study in the pharmaceutical industry.
PhD thesis, University of Nottingham.
Abstract
A host of studies has marked research on engagement, most focused on customer engagement, the customer as an end-user (consumer). Although there is a recognized requirement to also discover and understand engagement ‘as supplier, manufacturer, retailer, and ... actor-engagement’ (Chandler and Lusch, 2015, p.4), the literature addressing engagement amongst versatile actors in networks remains fragmented (Brodie, Fehrer, Jaakkola, and Conduit, 2019). Understanding business-to-business engagement (BE) is equally essential to academia and industry since the construct has been theorized to be related to value co-creation processes (Storbacka, 2019). Moreover, BE is a critical construct since it influences the actors' consideration set, dependence on other interacting actors and willingness to pay a premium (Nyadzayo, Casidy and Thaichon, 2020), linking it to financial rewards (Sands, Campbell, Ferraro, and Plangger, 2022).
The definition of business engagement is based on Vivek, Dalela and Ahmed (2021) and Brodie et al. (2019)’s actor engagement. BE is ‘a dynamic and iterative process’ (Brodie et al. 2019, p.183) generated by episodes of intense interactions that reflect actors’ tendencies to invest resources in their interactions, beyond the contractual obligations, with other actors for the benefit of [their] own, interacting actors, as well as others in the service ecosystem.
This research is organised around several questions that are relevant to both marketing and organisational research since the BE concept is related to organisational settings.
This research examines how business-to-business engagement expresses itself in the pharmaceutical industry. Service-Dominant logic (S-D logic) and practice theory are used to support the research, which is an in-depth case study of a large multinational pharmaceutical company. S-D logic provides a mindset for an integrated understanding of the nature of organisations, markets and society, allowing for a broad understanding of engagement within a network of actors (Vargo and Lusch, 2017). This permits for research on engagement to be based on dyadic, actor-to-actor relationships but also to include multiple actors, enabling research at the micro and meso level (Breidbach and Brodie, 2017; Storbacka, Brodie, Böhmann, Maglio, and Nenonen, 2016).
Practice theory also informs this research. Social practice theory ‘de-centers individuals from analyses, and turns attention towards the social and collective organization of practices’ (Hargreaves, 2011, p.80), which makes it very suitable for understanding business engagement resulting from the interaction of businesses. Brodie et al. (2019 p.11) advocate understanding engagement from a practice perspective because ‘we need a better understanding of the actions performed by interacting actors’. The ‘understandings’ element of each practice (Schatzki, 2006) can offer insights into the actions, activities and rules associated with each practice.
Since the initial customer (consumer) engagement conceptualization (Brodie, Hollebeek, Juric, and Ilic, 2011) engagement research has flourished (Alexander, Jaakkola and Hollebeek, 2018). Research has extended the concept to the broader networks of customers and many other stakeholders (Chandler et al., 2015; Storbacka et al., 2016). However there are just a few B2B empirical studies that are based on dyadic interactions including at the same time different types of actors, other than consumers/ end users (Jonas, Boha, Sörhammar, and Moeslein, 2018).
Critical realism (CR) is a philosophical approach used in this research to understand B2B engagement. The essence of realism is that, there is a realm of truth, even if our perceptions of it are mediated. Therefore, even if we cannot directly observe reality it still exists and exercises powers, and the observable events are manifestations of invisible mechanisms (Bhaskar, 2013). CR can be a strong foundation for theories of business markets, as it assists in uncovering the properties of business relationships which are based on the assumption that value is created within a service ecosystem (Ehret, 2013). As CR is based on the belief that relationships have causal powers (Peters, Pressey, Vanharanta, and Johnston, 2013), it is epistemologically appropriate for business-to- business research.
A qualitative research design is used for a case study of a large multinational producer, its distributor in Romania, and the interactions of the distributor with its customers (pharmacies). The analysis examines BE practices generated by the collaboration and interactions between the focal organisation with different types of stakeholders. The research includes a manufacturer that is a large multinational company, a distributor and its business customers, pharmacies to understand the patterns of engagement practices. As part of the research design, the data collection is based on direct observations of interactions, in-depth and joint interviews with pharmacists, sales representatives, and sales and marketing representing distributors and a manufacturer in the Romanian pharmaceutical industry. A mini-focus group was conducted to endorse some of the main findings from observations and interviews. The data collection started in June 2018 and ended in February 2020.
The study revealed the existence of three higher-level BE practices: social, cognitive, and transformative, each containing lower-level practices. The study also showed that under the influence of intensity or valence, actors might experience different patterns: rewarding, routine or conflictual BE that leads to value being co-created or co-destructed. These patterns generate for interacting actors specific outcomes.
This research contributes to both theory development. Theoretically, a better understanding of BE viewed from a service ecosystem perspective will address major gaps identified in academic research (Storbacka et al., 2016). The main contribution of this research is related to the insights generated by how BE practices take place, revealing what actors do in practice by looking at dyadic interaction between three parties (pharmacies, a distributor and a manufacturer), recoding also the impact on other stakeholders (patients, doctors, competitors). The research also reveals the patterns of BE practices, namely rewarding, routine and conflictual BE practices and their related outcomes.
The research has managerial implications. From an industry perspective, value co- creation processes and related outcomes can determine which companies will survive. Insights about BE will help companies to prioritize investments in this area. In addition, firms survive and flourish when engagement exists and is high, as engagement has been found to be related to innovation processes (Jaakkola and Alexander, 2014) and better company performance (Kumar and Pansari, 2016; Sands et al., 2022). Therefore, insights about the concept can help managers to develop tactics to increase BE and improve practices that will generate better outcomes for their firms.
| Item Type: |
Thesis (University of Nottingham only)
(PhD)
|
| Supervisors: |
Winklhofer, Heidi
Peters, Linda
Brodie, Rod |
| Keywords: |
customer engagement, actor engagement, business engagement, practice theory, S-D logics, Service-Dominant logic, pharmaceutical industry |
| Subjects: |
H Social sciences > HD Industries. Land use. Labor
H Social sciences > HF Commerce |
| Faculties/Schools: |
UK Campuses > Faculty of Social Sciences, Law and Education > Nottingham University Business School |
| Item ID: |
76569 |
| Depositing User: |
Cretu, Anca
|
| Date Deposited: |
11 Aug 2025 12:51 |
| Last Modified: |
11 Aug 2025 12:51 |
| URI: |
https://eprints.nottingham.ac.uk/id/eprint/76569 |
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