Relationship learning at trade shows: Its antecedents and consequences

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Abstract

In spite of the increasingly recognized role of trade shows as a highly cost-effective medium, there are few established guidelines on how to capitalize on these meeting occasions. The relational view of competitive advantage, however, identifies relationship learning as an important avenue for creating differential advantage and supernormal profits in relationships. The purpose of this study is to develop a theoretical model explicating relationship-based learning activities growing out of trade shows, its determinants and performance effect. Specifically, it examines the roles of relationship properties of trade show participants, and collective inquiry approaches used for trade shows, in fostering learning between exhibitors and visitors. The model was tested by a sample of 414 exhibitor–visitor relationship dyads identified at specific trade shows. The direct effect of relationship commitment, consensus, and collective inquiry on relationship learning at trade shows was confirmed. The powerful influence of relationship learning activities on relationship performance outcomes as perceived by exhibitors at trade shows was substantiated.

Introduction

The importance of trade shows as a promotion medium has been well documented in the US and Europe in terms of show participation and expenditure levels (Business Marketing, 1996, Center for Exhibition Industry Research [CEIR], 1999, Sandler, 1994). The usefulness of this medium has been increasingly recognized as it represents a highly cost-effective way of meeting a large number of potential suppliers and customers in a short span of time (Gopalakrishna & Williams, 1992, Shoham, 1999). From the exhibitors' standpoint, the major reasons for trade show participation are gathering purchase information (Hough, 1988), competitors' information (Blythe, 2000), general market research information, and latest technology information (Rice & Almossawi, 2002). From the visitors' perspective, the major motivations behind trade show participation are gathering information about market access, new products, potential suppliers (Munuera & Ruiz, 1999), and alternative purchases (Godar & O'Connor, 2001). In other words, learning between exhibitors and visitors, according to Rosson and Seringhaus (1995), is the key reason for attending trade shows, and, perhaps, the key factor for explaining trade show success. The extant trade shows' literature, however, focused narrowly on company motives and objectives of trade shows and hence resulted in a clear lack of understanding of processes of learning between exhibitors and visitors of trade shows. Little or no research effort was spent on factors facilitating or inhibiting learning between exhibitor–visitor dyads, and equally little is known about the impacts of such learning on the dyads' relationships.

Yet, the relational view of developing a competitive advantage identifies relationship learning (i.e. inter-firm knowledge-sharing routines) as an important avenue for creating differential advantage and supernormal profits in relationships (Dyer & Singh, 1998). Through developing a learning relationship, the customer and the supplier engage in an ongoing connection that becomes smarter as the two interact with each other, and collaborate to meet the customer's needs over time (Pine, Peppers, & Rogers, 2000). In light of the importance of learning for creating competitive advantages, additional research effort examining learning between exhibitors and visitors is much needed. The purpose of this study is to develop a theoretical model explicating relationship-based learning activities growing out of trade shows, its determinants and performance effect. In this study the relationship learning approach (Selnes & Sallis, 2003) is used to examine the determinants of learning between exhibitors and visitors of trade shows. The relationship approach is a proper theoretical framework for investigating trade shows because the relationship approach puts an emphasis on the importance of relationship between suppliers and customers rather than focusing on discrete purchase occasions (Rice, 1992), and it permits an examination of idiosyncratic learning activities contingent on experiential conditions. Specifically, this study aims to examine the roles of relationship properties of trade show participants, and collective inquiry approaches used for trade shows, in fostering learning between exhibitors and visitors. For the benefit of the hindsight of the resultant findings, the practical lessons for industrial marketers and buyers are: 1) as exhibiting suppliers and visiting customers, they are well advised to foster relationship commitment and consensus with each other so as to enhance learning from trade shows in the forms of information-sharing and sense-making activities; and 2) it is recommendable for exhibitors and visitors to institutionalize learning from trade shows through collective inquiries in the forms of internal discussion forums and external communications.

The remainder of this article is organized as follows. The first section draws on current organizational learning literature as the foundation for the conceptualization of learning between exhibitor–visitor relationship dyads at trade shows. Next, based upon the theoretical perspective of channel learning, the relationships between the antecedents and relationship learning at trade shows, and those between relationship learning at trade shows and relationship outcomes after trade shows are developed. The methodology is described in the following section, and the research hypotheses are empirically tested by a sample of 414 relationship dyads identified at specified trade shows. Finally, a discussion of the results and implications of the research conclude the article.

Section snippets

Relationship learning at trade shows

Following the conceptualization of relationship learning developed by Selnes and Sallis (2003), this study proposed that three different “sub-processes” of learning can occur between exhibitors and visitors in trade shows: relationship learning by (1) sharing information, (2) sense-making, and (3) developing relationship-specific memories. Relationship learning via sharing information refers to an ongoing joint activity between the customer and the supplier directed at sharing information that

A theoretical model of determinants of relationship learning at trade shows

Based upon the channel learning perspective (Lukas et al., 1996), this study develops a model of determinants of relationship learning of exhibitor–visitor dyads at trade shows. The model is built on the assumption that exhibitor–visitor relationships not only begin in a trade show, but continue after the show (Rice, 1992). Exhibitors and visitors are more likely to return next year (i.e. repeated attendance at future trade shows) when they have identified credible suppliers and customers at

Relationship performance outcomes at trade shows

To date no uniform definition of trade show performance exists. Previous studies (Bonoma, 1983, Heide & John, 1992) tapped into the substance of performance at trade shows by categorizing goals of exhibitors into selling role and non-selling role. Yet, existent empirical studies (Dekimpe et al., 1997, Gopalakrishna & Lilien, 1995, Gopalakrishna et al., 1995) on predictors of trade show performance only assessed selling objectives, and hence ignored non-selling objectives. However, it is

Data collection method

The present study has defined its population as manufacturing firms that have production facilities set up in Hong Kong/China, and that participate in international trade shows to promote and sell its outputs to overseas countries. This study has focused on the Chinese Export Commodities Fair which is the biggest, and most organized international trade show hosted by China, and used this trade show's 2003 Directories of Fair Exhibitors as its sampling frame. A randomized sample of subjects was

Multiple regression analysis results

In this study, regression analysis was utilized to assess the effect of exhibitor–visitor relationship commitment, consensus, and collective inquiry approaches on relationship learning at trade shows. In addition, in order to control for the effect of objective factors on relationship learning at trade shows, such as dependency on export (Sachdev, Bello, & Pilling, 1994), interdependency magnitude (Anderson & Narus, 1990, Jap & Ganesan, 2000), and type of manufacturer (brand-name manufacturers

Managerial implications

The results point to the powerful influence of relationship learning activities on relationship performance outcomes as perceived by exhibitors at trade shows. The key lesson for exhibitors is the need for the active management of the three sub-processes of relationship learning. Given the current findings that relationship learning via information sharing is primarily driven by collaborative commitment, exhibitor firms should build up commitment towards a learning relationship by a) investing

Limitations and implications for future research

The implications of this study should be seen within the context of its limitations that could also provide the basis for directing future research. This study focused on company participation at one specific trade show namely: the 2003 Chinese Export Commodities Fair. Although the annual fair was the biggest, and most organized international trade show hosted by China, the resultant findings inherited the problem of being show-specific. Show-specific findings limit the generalization power

Esther is Assistant Professor in Marketing at the Department of Marketing and International Business, Lingnan University of Hong Kong. She obtained her PhD degree from the University of Western Australia, Australia. She has won the Teaching Excellence Award from City University of Hong Kong in 1994. In addition to teaching experience in the marketing field in Hong Kong, Esther has been active in providing consultancy services including: Bank of China Corporation, North West Airline (HK) Co.

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    Esther is Assistant Professor in Marketing at the Department of Marketing and International Business, Lingnan University of Hong Kong. She obtained her PhD degree from the University of Western Australia, Australia. She has won the Teaching Excellence Award from City University of Hong Kong in 1994. In addition to teaching experience in the marketing field in Hong Kong, Esther has been active in providing consultancy services including: Bank of China Corporation, North West Airline (HK) Co. Ltd., Informix, Dow Chemicals (HK) Limited, Hospital Authority, and Duty Free Shoppers (HK) Ltd. Esther has continuously worked in the research areas of international marketing, relationship marketing, service quality, organizational learning, and trade show management. Thus far she has published over 40 papers in international journals, book chapters, and conference proceedings. Besides, she received the Best Paper Award at the American Chinese Management Educators Conference in 1992.

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