Towards a service-led relationship in project-based firms

Abstract

Project-based firms increasingly apply practices that are in line with relationship marketing (RM), which is a shift from individuality to mutuality, and service-dominant logic (SDL), which is a shift from a focus on goods exchange to an emphasis on service exchange. These firms also adopt value co-creation processes, benefiting from both RM and SDL views. However, their overall transition towards RM, SDL and/or both is not clearly understood. Therefore, the research aim is to explain how and why project-based firms have moved away from transitional marketing. A retrospective action research between 2002 and 2009 provides process data on how a single main contractor adapted their marketing approach over five publicly funded projects within the oil, gas and petrochemical industries. The findings show that the uniqueness and dynamics of projects necessitate the adoption of both SDL and RM, a view that is entitled the service-led relationship here. This transition occurs through services expansion, multi-level distributed interactions and process-oriented performance management in projects. The firm enabled the transition through the evolution of both institutional mechanisms such as contracts and organizational structure, and people attributes such as capabilities and culture.

Keywords:

• Interaction
• project-based firms
• relationship marketing
• service-dominant logic
• service-led relationship

Acknowledgements

The authors would like to thank the editors and reviewers for their insightful comments on the earlier version of the paper. The authors would also like to thank the management of Namvaran Consulting Engineers, Managers for supporting this research.