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A Practice Perspective on Technology-Mediated Network Relations: The Use of Internet-Based Self-Serve Technologies

Cox School of Business, Southern Methodist University, P.O. Box 750333, Dallas, Texas 75275-0333
Sloan School of Management, Massachusetts Institute of Technology, 50 Memorial Drive, E53-325, Cambridge, Massachusetts 02142-1347
uschultz{at}mail.cox.smu.edu
wanda{at}mit.edu

Embedded relationships with customers have been key in generating repeat business and economic advantage, especially in business-to-business settings. Such relationships are typically maintained through interpersonal interactions between customers and their providers. Lately, however, firms have been seeking to make their service operations more scalable by offering customers access to Internet-based, self-serve technology. This raises questions about the implications of inserting self-serve technology into embedded relationships. Recent research on the role of information technology (IT) within interfirm network relations suggests that relationships and the use of IT are complementary. However, most of this research focuses on the organizational level and fails to consider the instantiation of these interfirm relations by the actions and interactions of individual actors (e.g., customers and salespeople) representing their respective firms.

In this paper, we explore the implications of using IT within interfirm relations through an analysis of customers’ and sales representatives’ (reps) work activities and interpersonal relationships. We apply a practice perspective that highlights how macrolevel phenomena such as interfirm relations are created and recreated through the microlevel actions taken by firm members. This analysis reveals that managing the complementarity between relationships and IT in practice is fraught with considerable tension. This study of WebGA, a bricks-and-clicks dotcom, highlights how the use of the self-serve technology made it more difficult for sales reps to build and maintain embedded relationships with their customers. The use of IT altered the nature and quality of information shared by the participants, undermined the ability of sales reps to provide consulting services to customers, reduced the frequency of their interaction, and prompted sales reps to expend social capital to promote customers’ technology adoption. These changes produced intended and unintended shifts in the network relations enacted by WebGA and its customers, and raised serious challenges to the viability of WebGA’s business model.

Key Words: arm’s length relationships; electronic brokering; embedded relationships; service strategies; social capital; work practices
History: This paper was received on December 14, 2002.

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