Matching high‐tech and high‐touch in supplier‐customer relationships

Purpose – The paper seeks to analyse and discuss the impact of information technology competence and relationship management on relationship value and relationship profitability. Design/methodology/approach – The paper draws on an empirical study of 123 relationships. The data are analysed using regression analysis. Interaction effects and curvilinear effects are tested. Findings – The empirical results reveal that information technology competence and relationship management have positive effects on relationship function fulfilment and profitability. Furthermore, an interaction effect between information technology competence and relationship management is identified, i.e. the compensatory relation between high‐tech (ITC) and high‐touch (relationship management) is demonstrated. Research limitations/implications – The limitations of the paper are the lack of dyadic data and the use of key informants. Further research could address these issues. Implications include the interplay between information technology competence and relationship management. The two concepts can replace each other to a certain degree but not fully as the main effects remain positive and significant. Practical implications – The results of this study may lead to conscious decisions of how to apply the different means to create value and profits from relationships. The important message is that information technology competence can replace parts of relationship management but cannot do so totally. Also, “overcontacting” in relationships may produce dysfunctional effects. Thus, firms need to develop customer‐handling concepts which combine the two possible means in a synergetic way. Originality/value – The paper combines two areas previously discussed separately, i.e. the influence of information technology competence on relationship functions and profitability and the influence of relationship management on relationships functions and profitability. This combination offers insights for researchers and practitioners.