The managerial issues associated with global account management : A relational contract perspective

The increase in cooperative global arrangements between suppliers and customers has grown precipitously in the last five years. These global account management (GAM) programs are frequently brought about owing to the initiative of the global customers, requiring their suppliers to service their total global needs. Suppliers in turn perceive GAM programs as a means to develop long‐term relationships with key global customers in order to hinder competitive inroads. The managerial issues in implementing GAM strategies/programs and developing GAM teams are the focus of this paper. Based on the bargaining framework of relational contracting theory, a step‐by‐step process for management to follow when implementing a GAM program is proposed.