Glossary

1- What Are Financial Risks?

2- Risk at the Individual Level

3- Financial Risk Management at the Institutional Level

4- Understanding and Managing Global Financial Risk

5- Geographies of Financial Risks: Going Ahead

Further Reading

Glossary

Behavioral biases Cognitive distortions that cause people to put disproportionate weight in favor of or against one issue or person. With regard to risk, behavioral biases lead to misperceptions of risk and potentially dangerous decisions. Financializaton The term describes the historic trend of the disproportionate growth of the importance of the financial sector relative to the real economy. It is characterized by rising share of the financial sector in gross domestic product, increasing usage of financial products and a growing complexity of financial instruments. Formalization of risk management Process of the increased reliance of risk managers on mathematical tools and compliance rules while neglecting traditional heuristic methods. Though limiting their own discretionary scope, they justify their actions and decisions by resorting to “objective” numbers, models, and regulations. Individualization of risk Individuals increasingly bear the burden of risk and are compelled to make their own financial provisions against a whole host of risks (including unemployment, sickness, and retirement). At the same time, individuals struggle to master risky situations due to the growing complexity of modern finance. Radical uncertainty The decision-making situation characterized by the lack of any quantifiable knowledge about some future occurrences. The notion of radical uncertainty is in stark contrast to the term “risk,” which assumes that not only possible future outcomes but also their probabilities are known in the present. Risk attitude The willingness of someone to take risks. Sociodemographic factors play a large role explaining differences in risk attitudes. Risk culture System of attitudes and behaviors present in an organization that shapes risk decisions made by management and employees. Risk perception The way a person subjectively estimates and “feels” about risk. It can be heavily distorted by behavioral biases. Systemic risks Possible disturbances of a financial system that may lead to its entire breakdown. They are endogenous, that is, result from the interconnectivity of financial actors and institutions and are amplified by feedback mechanism among them. Varieties of capitalism Framework for analyzing the institutional similarities and differences among the developed economies.

What Are Financial Risks?

“Financial risks” is a collective term for a variety of different types of risk and uncertainties that are related to the use of financial services. There are five basic types of these services that are associated with financial risks:

• Financial intermediation between savers and investors as well as companies and consumers ensure the efficient allocation of monetary resources, the necessary funding of households, governments, and businesses and provision of liquidity. Financial intermediation transforms certain assets or liabilities into different forms of assets or liabilities regarding their risk, maturity, and size, for example, a bank transforms many small money market accounts into one sizable long-term property loan. Various forms of intermediation make the financial system more intertwined so that a collapse of individual financial intermediaries could lead to systemic failure and cause high costs for individuals, firms, and society

23-1- Operating Cost Categories

23-2- Labor

23-3- Logistics and Transportation

23-3-1- Marine Vessels

23-3-2- Helicopters

23-4- Materials and Supplies

23-4-1- Chemicals for Water Treatment

23-4-2- Chemicals for Corrosion

23-4-3- Chemicals for Flow Assurance

23-4-4- Fuel, Water and Utilities

23-5- Repairs and Maintenance—Wells and Flowline

23-5-1- Maintenance

23-5-2- Stimulation

23-5-3- Well Failure

23-5-4- Flowline and Export Repairs

23-6- Repairs and Maintenance—Equipment and Structure

23-6-1- Regulatory Requirements

23-6-2- Inspection Schedules

23-6-3- Three Zones

23-6-4- Painting

23-6-5- Underwater Maintenance

References

ABSTRACT

Activity-based cost models apply work decomposition methods and knowledge of engineering and market conditions to estimate cost. The tasks required to be performed are identified, and the time and duration to perform each task are estimated. Activity-based costing is the most detailed and transparent method that can be applied in operating cost estimation and require a higher level of expertise to successfully apply. In this final chapter, work decompositionmethods are described to illustrate how the operating cost components of labor, logistics and transportation, materials and supplies, and repairs and maintenance are estimated. Examples are provided to develop analytic skills and intuition regarding the relative importance of cost components. Regional diving, helicopter, and marine vessel contracts and service markets are reviewed as part of this discussion.

23-1- OPERATING COST CATEGORIES

The primary cost categories for offshore oil and gas operations include the following:
• Salaries of operating personnel
• Transportation of products and people
• Materials and supply services
• Repair and maintenance of wells and flow lines
• Repair, maintenance, and inspection of equipment and structure
Cost may be incurred hourly, daily, monthly, or annually; be volume- or capacity-based; or be per person (Table 23.1). In activity-based costing, the tasks required to be performed are identified, and the time and duration to perform each task are estimated. If only a small number of facilities are evaluated, a detailed approach is feasible, but for more than a few structures, the resources required to complete an activity-based cost study are significant (Kaiser, 2019).

A Closer Look at SAP

Implementing an ERP-Driven Design

Case Study: Nestlé USA Installs SAP

Using BPMS to Improve ERP Installations

Enterprise Resource Planning and Business Process Management Suite

Notes and References

Age and Emotion Work

Age and Conflict Management

Age and Stress Management

Discussion

Conclusion

References

AGE AND STRESS MANAGEMENT

Although there is a general belief that as we age we increasingly struggle with health problems, empirical evidence shows that older workers often report lower strain than younger or middle-aged colleagues (Beehr, Grosch & Adams, 2019; see Chapter 15 of this volume). For example, older workers reported less emotional exhaustion in the meta-analyses of Brewer and Shapard (2004) and Ng and Feldman (2010). One explanation for this might be that older workers are better able to cope with stress. In their transactional model, Lazarus and Folkman (1984, p. 19) define psychological stress as “a particular relationship between the person and the environment that is appraised by the person as taxing or exceeding his or her resources and endangering his or her well-being.” Two processes play a crucial role in this model: appraisal processes and coping. Primary appraisal refers to categorizing situational aspects as irrelevant, benign-positive, or stressful. Stress appraisals comprise harm/loss, threat, and challenge. Secondary appraisal refers to what can be done in the face of a stressful encounter, i.e., the coping options available. On the basis of such primary and secondary appraisals, individuals start their coping processes that can lead to reappraisal processes. With regard to stress management, younger and older workers may first differ in how they appraise stressful situations (Scheibe & Zacher, 2013). Life experience and knowledge of a variety of stressful situations may influence the appraisal processes of older workers so that they tend to appraise situations as less stressful than do younger workers. Indeed, the metaanalysis of Ng and Feldman (2010) shows that age is negatively correlated with a variety of job stressors such as role conflict and role overload. In the present context, stressors referring to the social work environment are of particular interest. In Ng and Feldman’s meta-analysis, relationship conflicts were negatively related to age and interpersonal trust was positively related to age. In a similar vein, in Beitler et al.’s (2016) and Johnson et al.’s (2013) studies age was negatively related with social stressors occurring in service provider-customer interactions such as being exposed to disproportionate customer expectations or customer verbal aggression (see Dormann & Zapf, 2004; Dudenho¨ffer & Dormann, 2015).

The Strategic Management Process

Generic versus Specific Strategy

Corporate Planning

Corporate Planning Process

Balanced Scorecard

Looking at Uncertainty

Strategic Management; The Johnson, Scholes and Whittington Approach

Self-awareness

Strategic Management Tools

Johnson and Scholes Paradigm ‘The Cultural Web’

McKinsey 7-S Model

Mintzberg’s 5-P’s of Strategy

Putting it Together: The Sweet Spot

The Environment: Strategic and Competitor Analysis

Customer Awareness

Tools for Analysing the Environment

SWOT

PESTEL

Porter’s Five Forces

Ohmae’s 3-C’s

Porter’s Generic Strategies

Bowman’s Strategy Clock

Treacy and Wiersma

Kotler

Ethics

References

Strategic Management; The Johnson, Scholes and Whittington Approach

The objective of this approach is to achieve better alignment between corporate policies and strategic priorities. Strategic management is primarily concerned with creating systematic analyses of factors associated with internal and external environments. Together with scenario planning this should provide the basis for maintaining optimum management practices. Scenario planning techniques in turn consist of drivers and assumption’s like ‘What are we measuring and why is it important’? Together with some brainstorming the drivers can be brought together into a viable framework after which probabilities, patterns, connections can be sought to produce initial mini-scenarios. These can be drafted and even flow diagrams produced to identify the various issues arising. The fundamental challenge that faces strategists is whether all approaches can be used in an organisation. This in turn depends on, for example, is the organisation Global, an SME? Is the marketplace in which it operates an evolving or static one? Added to these questions, it is important to keep in mind that there are levels of strategy at play and it is incumbent on the strategist to understand which levels best fit the requirement. The various levels of strategy can be formulated as: ⦁ Corporate level: Overall purpose and scope of an organisation. ⦁ Business level: How to compete successfully in particular markets. ⦁ Strategic business unit (SBU): Part of an organisation for which there is a distinct market for services and goods independent of any other SBU. ⦁ Operational strategies: How the component parts of an organisation deliver effectively the corporate and business level strategies in terms of resources, processes and people.

Abstract

This chapter focuses on the importance of emotions, as a notable part of corporate branding in a business-to-business (B2B) context. Since the issue of emotions has often been neglected in B2B branding research, the chapter focuses on ascertaining what kind of emotional differences exist in B2B, compared to B2C context. It also explores how rational versus emotional impressions affect decision-making processes in business environment, and whether the B2B sector can turn emotions into an advantage in corporate branding. The qualitative case study is conducted, focusing on the Suomen Henkilo¨sto¨talo Company. The case offers interesting findings and managerial contributions by highlighting both emotional decision making and the importance of business relationships for strengthening the position of the company in its business market.

Introduction

Apart from the foundations presented in previous chapters, one other important part of B2B branding remains to be explained. This element concerns emotions and its relevance for companies and for the development of its corporate branding. Emotions and how to define them have been the subject of studies for a considerable amount of time. However, there are still difficulties when trying to explain them, and depending on the viewpoint, the explanations are also different. As many academics argue, emotions are the crucial characteristic of human being and these two components, emotions and human beings, cannot be separated from each other (Koporcic, Tolusic, & Resetar, 2017; Solomon, 2007; Ta¨htinen & Blois, 2011). In addition, emotions motivate and manipulate our acts and the way we understand and see others. However, people cannot blame their emotions when making decisions, as an excuse for irrational behavior. Moreover, from a psychological point of view, Salmela (2014) argues that emotions are components of subjective experiences, facial expressions, appraisal processes, which make the wholeness of us. Emotions play an essential role in our lives, which makes us seek an understanding of our own and other’s people behavior (Solomon, 2007). This chapter will focus on the importance and influence of emotions on B2B branding, more specifically on corporate branding. Since the selection of studies about emotions in B2B branding is sparse, the chapter will also include findings from organizational and social psychology research and will compare B2B and B2C contexts. The aim of this study is to discover what kind of differences there are in B2B and B2C contexts, how rational versus emotional impressions affect the decisionmaking process in B2B markets, and whether the companies can use emotions in corporate branding as an advantage in B2B markets.

INTRODUCTION: ACHIEVING SCIENTIFIC LEGITIMACY

LaPlaca and colleagues (Hadjikhani & LaPlaca, 2013; LaPlaca, 1997; LaPlaca & da Silva, 2016) described in-depth the first paradigm shift in business-to-business (B-to-B) research from description and explanation of business exchanges based on transactions to description and explanation of business exchanges based on relationships. Equally important, they identify what is still necessary to accomplish for B-to-B research to achieve scientific legitimacy, “B2B relationships as a subject of scientific enquiry will need to seriously engage into what can be termed a true paradigm shift, one that advances discovery in this area from sheer descriptive analysis and reporting to the development of explanatory schemata and theoretical frameworks of a kind that allow for more accurate prediction of underlying B2B phenomena” (LaPlaca & da Silva, 2016, p. 232). LaPlaca and colleagues provide foundation insights into the steps necessary to be taken to achieve scientific legitimacy, including embracing prediction and control as necessary objectives in B-to-B research
research focusing on description and explanation is necessary but insufficient for advancing science in the B-to-B discipline. “In conducting scientific investigations, researchers, particularly scientists studying physical phenomena, progress through a hierarchy of types of research: descriptive, explanatory, predictive, and control (LaPlaca, 2013). The ultimate goal of science is to control events where possible … Improved understanding and predictive capabilities will reduce marketing errors and improve overall marketing effectiveness and efficiency. In this way, B-to-B marketing research will truly make a contribution to society” (LaPlaca & da Silva, 2016, p. 232). The following discussion focuses on how to accomplish the true paradigm shift that LaPlaca and colleagues identify. The study here provides examples of research contributing to knowledge and theory that advance prediction and control in B-to-B contexts. The study indicates that shifting beyond linear model construction and symmetric tests (i.e., multiple regression analysis (MRA) and structural equation modeling (SEM)) and embracing complexity theory and asymmetric tests (i.e., constructing and testing algorithms by “computing with words,” Zadeh, 1996, 2010) are necessary steps to be taken to accomplish the true paradigm shift. Researchers in B-to-B research benefit from recognizing that the current dominant logic of performing null hypothesis testing (NHST via MRA and SEM) is “corrupt research” (Hubbard, 2016) practice and from recognizing that predicting by algorithms via somewhat precise outcome testing (SPOT) advances B-to-B research toward achieving scientific legitimacy. Following this introduction, the second section answers the question, “Predicting what
directions or outcomes?” The third section provides examples of predicting precise outcomes in the B-to-B research literature.

17-1- Terminology

17-2- HR Strategy

17-3- The Bottom Line

References

TERMINOLOGY

A well-run organisation will recognise people practices as the heart of its operation. People practices, or human resources, can be divided into these categories: Recruiting: attracting candidates whose qualifications match what you need, and, perhaps more importantly, have a ‘culture add’; Retention and engagement: having the correct programs in place to keep employees happy, engaged and productive; Training and development: ensuring your employees are trained to do their current job safely and well, and are developed to be able to move into future roles and/or to meet the challenges of their current job as it changes over time; Total rewards/compensation: having a sustainable and defensible total rewards mix in place that meets your company’s and employees’ needs; Wellness: a system whereby employees are safe and well at work, and miss minimal amounts of work due to conflicts between work and home; Employee relations: this refers to a company’s efforts to manage relationships between employers and employees. An organisation with a good employee relations programme provides fair and consistent treatment to all employees so they will be committed to their jobs and loyal to the company; Culture: corporate culture refers to the beliefs and behaviours that determine how a company’s employees and management interact and handle outside business transactions. Often, corporate culture is implied, not expressly defined, and develops organically over time from the cumulative traits of the people the company hires; Information technology (IT): the growing importance of using IT in leveraging human resource (HR) functions is now realised. The e-HRM revolution relies on cutting-edge IT, ranging from Internet-enabled human resources information systems (HRIS) to corporate intranets and portals.

HR STRATEGY

Before getting into the various elements of HR management, strategy and planning must be discussed. Just as any enterprise should have a financial strategy, corporate strategy, business strategy and operational strategy, it should have an HR strategy as well. The success of an enterprise without an appropriately formulated and skilfully implemented HR management strategy is at risk (Belcourt and McBey, 2010). The HR strategy should complement and reinforce the overall corporate strategy: enable it, in other words. Human resources management (HRM) includes the following elements: specific HR practices (e.g., compensation, recruiting), HR policies, which direct the practices, and at the highest level, overall HR philosophies, which inform the policies and practices (Belcourt and McBey, 2010). HR programs must ‘fit’ the organisation both internally (in relation to other HR programs) and externally (to organisational strategy) (Belcourt and McBey, 2010). The following enablers (see Fig. 17.1) all inform and enable a company in its HR programs.

22-1- Introduction to Total Quality Management and Statistical Process Control Introduction Deming’s 14 Points for Management

22-2- Statistical Process (Quality) Control Introduction Statistical Analysis The Cost Versus Benefit of SPC

22-3- Statistical Process Control Tools Data Collection Graphs and Charts Pareto Charts Control Charts

22-4- Implementing Total Quality Management and Statistical Process Control Commitment of Management Specify Objectives and Goals Clearly Effective Communication and Feedback Verification of Data What to Avoid

22-5- Miscellaneous Topics ISO 9000 Series Certification Just-in-Time Concept

22-6- Equations

22-7- Annotated Bibliography

EXERCISES

Abstract

This chapter describes the total quality management (TQM), which includes management philosophy and style along with statistical process control (SPC). TQM assumes that, given the chance, workers will perform best when they know and understand the company or process goals. Productivity should not be enforced by rules, regulations, monitoring, performance standards, and other degrading methods. Arbitrary standards, personnel evaluations, and other humiliating tools should not be used to increase production and efficiency from workers. With paper, there are intrinsic tradeoffs in quality. Choices are made about which properties must be decreased to improve others. For example, for any type of paper, there is always a choice between tensile and tear strengths. Improving one means decreasing the other. Furthermore, SPC or statistical quality control (SQC) involves data collection and analysis, modeling of systems, problem solving, and design of experiments. Once a choice is made, the tools of TQM and SPC can be used to maintain the process, reduce variation, and improve efficiency.

22-1- Introduction to Total Quality Management and Statistical Process Control Introduction Deming’s 14 Points for Management
Introduction

When speaking about quality control, it is important to know the background of the key people behind developments in this field. Three people from Bell Telephone Laboratories, W. A. Shewhart, H. F. Dodge, and H. G. Roming, contributed much to statistical quality control (SQC) during its early years in the 1920s. Dr. W. Edwards Deming is considered to be the originator of total quality management (TQM), which includes management philosophy and style along with statistical process control (SPC). By the end of the 1930s, Deming (1938) had written a book, helped edit one (Shewhart, 1939) about statistical analysis in regard to quality control, and began working for the U.S. Census Office. During World War II, quality control rose to prominence and with it, the work of Deming. In the 1950s, his ideas on how companies should manage their people and processes were not widely accepted by American management. He took his ideas to Japan, where he started by assisting with their census and is credited with helping that country become highly successful in industry. TQM has two important elements to it: a management philosophy (the human aspect) and methods of process control (the process aspect). Philip B. Crosby has contributed much to the terminology and economic analysis of investments in quality improvement. Dr. Joseph M. Juran contributed to the organization methodology to implement and support project improvement. Juran (1951, 1962) believed that inspection of the final product is not an efficient or successful method of making high quality products. Instead, inspection of materials and methods should be made throughout the process. Quality should not be stamped on the product as the last step but should be incorporated throughout the process. One can discuss quality at length without defining it, but trying to achieve quality control means that specific goals must be kept in mind. Quality has many facets. One of the most obvious in paper products is product variation. It is always desirable to make one’s product in a reliable and consistent manner. It is said that the color of your paper is not as important as making it the same color all the time. Quality is also the suitability of a product for its intended purpose. Another aspect is the cost. One can always make a quality product if money is no object; however, a quality product that few can afford does very little good unless you are contracting for the government. TQM involves more than just SPC, which is not a management style, only a tool. This aspect of TQM is considered separately.

Abstract

This chapter offers insights into one of the most influential aspects of external branding, namely, branding within business-to-business (B2B) sales. In particular, the authors of this chapter claim that B2B sales are indispensable for the growth and existence of a brand. The special attention of this chapter is focused on sales personnel, as representatives of firms and carriers of branding. In other words, the impact of sales personnel on branding in a B2B context is presented theoretically and examined empirically. The chapter thereafter offers an interesting case study of Logomo, a cultural venue in Finland, specializing in selling customized space to companies, as well as organizing different kinds of public events. Through a combination of theory and practice, the authors demonstrate the importance of branding within B2B sales and conclude by providing specific implications for practitioners.

 Introduction

The main focus of this chapter is on B2B sales and the importance sales have on the firm’s corporate as well as product branding. The research investigates the impact that the sales personnel have when meeting the clients. It is therefore important to understand what influences the buyer decision making and relationship building process and what are the benefits of branding for the previously mentioned processes. The research is conducted from the perspective of the seller, by discussing what companies should focus on when thinking about sales and whether they should communicate either their corporate or product/service brand. The chapter includes a theoretical part and the findings of a case study in order to advance the knowledge on branding within B2B sales.

Over decades, indigenous management practices and their values in Africa have changed from time to time. However, it continued to remain relevant in most business organisations in developing countries. Today in Africa and across the globe, there is a paradigm shift and stiff competition in human resource management practices as a basic element for effective and efficient business organisations’ performance. Effective human resource management practices and performance of organisations rely on the integration of indigenous management practices and sound strategies aligned to cultural values and cores business objectives. The study covers four regions of Africa as a continent. Empirical teachings of the study form a basis for active reforms and innovations, so as to revamp the use of indigenous knowledge, which was deliberately destroyed by colonial masters. Over the years, human resource management practice has evolved in favour of Western strategies and ideologies. Advocates for curriculum reforms in all African countries so as to incorporate indigenous knowledge content, since it is believed to be the future of Africa. An appropriate employees management practice in Africa is a necessary move in today’s business community as it enhances service delivery and performance. The application of indigenous management practices is believed to play a vital role and invokes effective decision-making practices in the business organisation. Therefore, the chapter traces the origin of indigenous wisdom and its fundamental structure in management practices. This chapter attempts to throw light on indigenous management practices and their values in business organisations in Africa.

Introduction

Africa like any other continent had enjoyed indigenous management practices prior to its colonisation and influence of Western mechanisms and ideologies (Kiiza & Basheka, 2018). The chapter is organised as follows: first, it begins with introduction, followed by a brief background description in which observations of various form of human resource management practices are made, and moves to methodology, the origin of indigenous human resource management practices in the four sub-regions of Africa, which includes west and North of Africa, East and North of Africa, Central and South Africa (Horwitz & Budhwar, 2015). Finally, the chapter provides a way forward for curricular reforms to support the assertions of capacity building and strategies to be done in order to improve the human resource management practices and community-based models that are relevant to African perspectives (Horwitz & Budhwar, 2015). It also gives suggestions and strategies that ensure effective human resource management in business organisations. It is notable that Africa’s management practices have evolved from time to time based on the influence of different cultural values and social environment. The introduction of the Western mechanisms and strategies is no harm, but it is a deliberate attempt in destruction of the indigenous knowledge in the society. This chapter, therefore, attempts to critically examine the underlying factors that pose a hindrance to the effective application of indigenous knowledge in management practices. The study covers four regions of Africa exploring the management practices of business organisations. The empirical evidence and teachings call for reforms and integration of indigenous knowledge in human resource management practices. The chapter, therefore, views the need and demand for curricular review by incorporating concepts of indigenous knowledge. This approach paves the way for indigenous knowledge deliverance due to its potential in decision-making processes. Indigenous knowledge is necessary for the society; it contrasts with the global knowledge systems from universities and higher institutions of learning. Moreover, it also fuels community participation and sustainable development in Africa (Kiiza, 2017). This chapter critically examines indigenous management practices in Africa and serves as a guide to educators and practitioners. We strongly believe that application of indigenous knowledge in management practices in Africa is imperative and it should be respected by all business organisations in Africa. It is worthwhile to note that an indigenous management practice in Africa is unique in its context and practice across the continent, because it observes the cultural values and norms of the society. Most of the African business organisations and institutions have great reverence for their socio-culture values and community beliefs that are binding (Reiche, Stahl, Mendenhall, & Oddou, 2016). These indigenous core values are based on distinctive identities of the sovereignty of African states. The chapter suggests to African educators and managers to integrate the indigenous knowledge submissions in management practices. Indigenous knowledge in human resource management practices largely depends on the perception of the practitioners.

Abstract

The chapter discusses online branding in the business-to-business domain and the benefits it offers to B2B actors. Online branding is a tool to interact and communicate with existing and potential customers. The authors also present content marketing as a marketing effort available to B2B marketers, as well as the nature of digital relationships in social media. The reader learns the importance of branding the company through digital channels and those benefits that can be reached through such actions. The digital tools presented in the chapter relate to social media, for example, Twitter, Facebook, LinkedIn, YouTube, blogs, search engine optimization, and paid advertising. These tools are discussed in detail, both related to their benefits and pitfalls.

Introduction

Online branding is becoming increasingly common and important in modern society, as marketing is to a great extent carried out digitally, via various social media platforms, blogs, websites, and other online channels. Even though online communities and the digital context overall are more visible and relevant to consumers in the B2C context, B2B companies must also be digitally present and brand themselves for partner companies and stakeholders in the digital context. Brand values in the B2B domain are increasingly communicated using digital tools. Research related to online B2B branding is, however, scarce (cf. Lipia¨inen & Karjaluoto, 2015), as companies are still uncertain of the benefits of online branding in the B2B context. Swani, Milne, Brown, Assaf, and Naveen (2016) argue that one of the main problems concerning digital branding within the B2B sector is that very few companies actually know how they should communicate with their customers and what kind of content they should publish, in order to achieve positive results. In this chapter, we focus on the importance of online B2B branding and its potential benefits. In addition, the chapter discusses what kind of content B2B companies should strive to publish and suggests how companies can communicate with their business customers. On a side note, this chapter will focus solely on online B2B branding. However, the reader is reminded that digital branding and online branding are not quite the same thing. The difference is simple: online branding requires an Internet connection, whereas digital branding can be done via various other digital platforms. Furthermore, the term social media is often used when discussing online branding. A usual misunderstanding regarding social media is that it only incorporates the most common platforms such as Facebook, Twitter, and Instagram. Social media refers to all kinds of online platforms that allow the creation of user-generated content. Thus, blogs and Internet forums are also platforms that fall under the same category (Kohli, Suri, & Kapoor, 2015).

Abstract

The chapter presents how business-to-business (B2B) actors may use branding as a tool for maintaining strong, long-term business relationships with their customers. Current knowledge on how to maintain business relationships is presented, related to branding as a tool contributing to long-term and strong business relationships. The phenomenon is studied in detail through a case company, Verso Globe, which operates in the consultancy area and is specialized in sustainability issues. The authors conclude that shared values and norms lead to beneficial business relationships and help maintain them. Also, the case company is closely collaborating and co-creating with its customers, which leads to technological adaptation and increases mutual commitment. A reputation of sharing values, having interest to develop, and co-creating with customers benefits the company and builds the corporate brand. The company culture must, however, support the efforts that make the brand. It is therefore important for B2B actors to understand the customer’s values and use it as a basis for customer relationship management activities. Concurrently, the company’s own values and how it directs employees are elements of its culture, which is the basis for the corporate brand. The perfect match of business relationships is therefore lies in aligning values and norms between the partners.

Introduction

Technology and social media have changed the way we do business today and have also had an impact on how B2B relationships are constructed. For instance, strong competition and relationship network complexity are two challenges that businesses in the new millennium are facing (cf. Ndubisi & Nataraajan, 2016). One way of dealing with these complexities is increasing branding efforts, as well as the awareness of branding within the B2B context. In this chapter, we discuss B2B relationships in relation to branding in more detail in order to explore how business relationships can be maintained in today’s connected world. Branding and relationships are closely related; a strong brand reduces the perceived purchase risks and increases a company’s attractiveness (Backhaus, Steiner, & Lu¨gger, 2011; Cretu & Brodie, 2007). Brand relevance does, however, differ across industries and companies. Depending on the stage the relationship is in, different factors related to branding affect the relationship (Leek & Christodoulides, 2011; Mudambi, 2002). This chapter presents how B2B companies can benefit from branding and use it in building strong, long-term relationships with their customers. We introduce existing theories and findings concerning B2B branding and its effect on business relationships. We also present a case study, in which we highlight how branding can strengthen business relationships.