First published 24 March 2025
- Formal and informal mechanisms enhance suppliers' knowledge transfer to customers.
- Transferred knowledge fosters stronger supplier-customer relationships.
- Cognitive trust, not affective trust, is key in relationship-building via knowledge transfer.
- Tie strength and customer size further moderate the effects of knowledge transfer mechanisms.
Dr Thusyanthy Lavan and Associate Professor Di Wang from the QUT School of Advertising, Marketing and Public Relations, with colleagues from Macquarie University, published their study on how the extent of knowledge transfer (extent of KNTS) can cultivate robust B2B customer relationships in the journal, Industrial Marketing Management.
First author Dr Lavan said that inter-organisational knowledge transfer from supplier to customer was an important site for building sustainable competitiveness and strong business relationships.
“Knowledge transfer is like the instruction manual on how to use complex equipment, for example, dairy equipment manufacturers provide milking systems and education to their customers on how to run the equipment optimally; automative parts suppliers share best practices with manufacturers to help them optimise production processes and quality standards,” Dr Lavan said.
“Our study was designed to explore the mechanisms of transfer, both formal and informal, and how each influenced the extent of KNTS, and, in turn, cultivated customer loyalty through two forms of trust – cognitive and affective (emotional) trust.
“Formal training mechanisms are structured and document-based, use indirect communication methods and systematic language which use items such as databases, reports and guidelines, standardised procedures.
“Formal formats could also use instructor-led sessions, computer-based modules that follow a predefined curriculum and provide little direct interaction or feedback.
“In contrast, informal mechanisms are less structured, non-document-based methods that rely on direct, personal communication and interaction, face-to-face interactions and opportunities for people to share experiences through practice, observation and direct contact.
“Hence, they foster individualised feedback and engagement and strong social relationships.
“Coaching exemplifies this approach with direct interaction, practical problem-solving and tailored support which can enhance knowledge transfer effectiveness.”
Professor Wang said they analysed 204 survey responses from business customers of a Chinese medical equipment supplier about formal training, coaching, the extent of KNTS, customer loyalty, trust, customer size, and strength of ties between supplier and customer.
“We found that while formal training and coaching are both significant for transferring knowledge to customers, our study shows that coaching is more effective for knowledge transfer,” Professor Wang said.
“Furthermore, we found that cognitive trust is the primary mechanism to facilitate relationship-building through the extent of KNTS, and, contrary to conventional expectations, affective trust doesn’t have a role in building relationships through the extent of KNTS, even in the Chinese context where relationship-building is deeply rooted in cultural traditions that highly value affective connections.”
Professor Wang said the researchers found that tie strength (closeness of the interactions between supplier and customer) moderated the effects of both formal training and informal coaching on the extent of KNTS, with customer size further influencing these effects.
“Interestingly, the positive effect of formal training on the extent of KNTS is strongest when both tie strength and customer size are low; if the ties are strong, it negatively affects transfer of knowledge, possibly due to complacency or reliance on existing routines,” Professor Wang said.
“In contrast, the positive relationship between coaching and the extent of KNTS peaks with strong ties and low customer size.
“Altogether, these findings are important for supplier firms seeking to building enduring relationships with customers via effective knowledge transfer.”
The research team comprised Dr Lavan and Associate Professor Wang from QUT; Dr Khai Trieu Tran from the University of Danang; Dr Joseph Chen, Dr Jun Yao, and Associate Professor Yimin Huang from Macquarie University. The study, Knowledge transfer in business-to-business customer relationship development, was published in Industrial Marketing Management.
Image, from left: Associate Professor Di Wang, Dr Thusyanthy Lavan.
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