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Increasingly, the involvement of representatives from all major business
functions in cross-functional, crossfirmteams is being viewed as a means to
develop and maintain profitable business-to-business relationships.However, if
the measurements of the value co-created in these relationships with customers
and suppliers donot incorporate the financial outcomes of joint cross-functional
initiatives, managers can be led to makedecisions that jeopardize the long-term
profitability of the two firms. In this paper, the authors explore
thedifferences in value co-creation when a company is linked to key customers
and key suppliers through crossfunctionalteams and when it is not. Using a case
study approach, the authors measured value co-creation infinancial terms and
describe how managers changed their behaviors toward customers and suppliers
whenthey were able to compare the value that was being co-created in each
relationship. In each pair ofrelationships, one involved cross-functional teams
and the other did not. The results indicate that crossfunctional,cross-firm
involvement leads to increased value co-creation. The research suggests that
marketingscholars and managers should emphasize the use of cross-functional
teams that involve all major functions tomanage relationships with key
customers, and should incorporate financial measures in the evaluation
ofrelationship performance
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