Triadic relationships

Triadic relationships

- A case study on relationship initiation in triadic settings

Master’s Thesis 30 credits

Department of Business Studies Uppsala University

Spring Semester of 2019

Date of Submission: 2019-05-29

Rasmus Sjögren Rômulo Viana

Supervisor: Virpi Havila

Abstract

This study addresses the rationale of using partners in relationship initiation with potential buyers and how relationship initiation takes place in triadic settings. As the authors have identified relationship initiation as an under-researched area, further research in this field is needed in order to enhance knowledge regarding the use of partners in the relationship initiation with potential buyers. Based on a case study, the authors investigate a company, their partners and potential buyers during the relationship initiation process. The data was collected through semi-structured interviews, observations and analysis of documents. A model was developed based on existing literature in order to allow the authors to analyse the data. The analysis provides an overview of how and why companies use partners to initiate relationships with buyers and how relationship initiation occurs in triadic settings. A new conceptual model was developed suggesting that any actor within this triadic setting can trigger the relationship initiation and that this process shouldn’t necessarily be regarded as sequential. This study also shows that the degree of brand awareness that a company possess can influence their relationship initiation processes.

Key words: Relationship initiation, triadic settings, relationships, B2B relationships, conceptual model, industrial marketing and purchasing, business-to-business marketing.

Acknowledgments

The authors would like to thank our supervisor Virpi Havila and all members of our seminar group for their valuable comments, ideas and inputs. We would also like to thank the informants and people at Urkund for taking the time to share their knowledge and ideas with us and contributing to the collection of empirical data. Without you this thesis would not have been possible.

Thank You!

Uppsala 2019-05-28

_________________________ _________________________

Rômulo Viana Rasmus Sjögren

1. INTRODUCTION ... 1

1.1PROBLEMATIZATION ... 1

1.2RESEARCH AIM, PURPOSE AND QUESTIONS ... 3

1.3THESIS OUTLINE... 3

2. LITERATURE REVIEW ... 4

2.1RELATIONSHIP INITIATION ... 4

2.2PRE-INITIATION ... 4

2.3ACTUAL INITIATION ... 7

2.3.1 Trust and offer intangibility in relationship initiation ... 8

2.4MOVING CLOSER OR FURTHER AWAY FROM A RELATIONSHIP ... 9

2.4.1 Partners as initiation contributors ... 10

2.5DIFFERENT CONCEPTUALIZATIONS AND THE ROLE OF PARTNER COMPANIES ... 10

2.6ANALYTICAL FRAMEWORK ... 12

3. METHOD ... 14

3.1METHODOLOGICAL DISCUSSION ... 14

3.1.1 Ontological considerations ... 14

3.1.2 Epistemological considerations ... 15

3.2RESEARCH APPROACH ... 15

3.3RESEARCH DESIGN – CASE STUDY ... 15

3.3.1 Case selection ... 16

3.3.2 Case description ... 17

3.4DATA SELECTION AND COLLECTION ... 19

3.4.1 Interviews ... 19

3.4.2 Documents ... 21

3.4.3 Observation and email conversations ... 21

3.5DATA ANALYSIS ... 22

3.6ETHICAL CONSIDERATIONS ... 22

3.7CRITICAL REFLECTION ... 23

4. EMPIRICAL FINDINGS ... 24

4.1BACKGROUND ... 24

4.2 THE CASE CONTEXT ... 24

5. ANALYSIS ... 31

5.1PRE-INITIATION ... 31

5.1.1 Need identification ... 31

5.1.2 Search for partners and information ... 33

5.1.3 Strategizing in the industry network ... 33

5.1.4 Identification of a desirable partner ... 34

5.1.5 Evaluation of potential partners ... 34

5.1.6 Be eligible and reachable ... 35

5.2ACTUAL INITIATION ... 36

5.2.1 Contacting ... 36

5.2.2 Developing details about the relationship ... 37

5.2.3 Building trust ... 37

5.2.4 Testing compatibility ... 38

5.2.5 Agreeing on terms and moving forward ... 39

6. CONCLUSION ... 40

6.1THEORETICAL IMPLICATIONS ... 41

6.2MANAGERIAL IMPLICATIONS... 43

6.3LIMITATIONS AND FUTURE RESEARCH ... 43

REFERENCE LIST ... 45

APPENDIX 1 – INTERVIEW GUIDE ... 50

FIGURE 1:DISPOSITION OF THE THESIS. --- 3

FIGURE 2:A PRIORI MODEL OF RELATIONSHIP INITIATION IN TRIADIC SETTINGS --- 13

FIGURE 3.DEVELOPED CONCEPTUAL MODEL OF RELATIONSHIP INITIATION IN TRIADIC SETTINGS. --- 43

TABLE 1:A SUMMARY OF ACTIVITIES AND PROCESSES IN PRE-INITIATION. ... 6

TABLE 2.A SUMMARY OF ACTIVITIES AND PROCESSES IN ACTUAL INITIATION.. ... 9

T^ABLE 3.DESCRIPTIONS OF INTERVIEWS ... 20

TABLE 4.NEW DEVELOPED TABLE OF ACTIVITIES IN RELATIONSHIP INITIATION. ... 42

1. Introduction

Aarikka-Stenroos et al. (2018) recently pointed out that the first period of relationships, initiation, up to date have received scarce attention from researchers. A few exceptions are Batonda and Perry (2003), Edvardsson, Holmlund and Strandvik (2008) and Valtakoski (2015) but relationship initiation have traditionally been considered a relatively easy first step in relationship development models (Dwyer, Shurr and Oh,1987; Ford, 1980). Relationships are described as developing through a predetermined set of stages or phases in a life cycle analogy (Dwyer, Shurr and Oh, 1987; Ford, 1980). This way of thinking, that relationships always succeeds in each step without any setbacks is according to Batonda and Perry (2003) highly questionable. Even though they find the stage models to be applicable in some cases they advocate for a model of states where relationship development consists of a number of processes that might cause the relationship to progress but also might revert back to an earlier state (ibid). Relationships can thus be seen as constantly existing in a complex state of mutual processes affecting the relationship in different nonlinear ways.

Edvardsson, Holmlund and Strandvik (2008) point out that relationship initiation can start from different positions depending on if the two companies have any previous experience or awareness about each other. In connection to this, researchers (Aarikka-Stenroos et al., 2018;

Batonda and Perry, 2003; Ellis, 2000; Valtakoski, 2015) also mention the facilitating effect partners and networks can have on relationship initiation. Valtakoski (2015) points out that for global companies, local presence can help increase trust in foreign markets. The use of partners has also been proven to help gain legitimacy (Grewal et al., 2018) and overcome cultural and legal barriers (Karunaratna and Johnson, 1997).

1.1 Problematization

In an era of increasing competition, globalization and financial uncertainty, companies’ ability to form relationships with various stakeholders have gained great importance to their success (Brennan & Turnbull, 1999). Edvardsson, Holmlund and Strandvik (2008) stress the importance for companies to move away from viewing business through a transactional lens to consider forming and maintaining relationships a natural way of doing business. Vargo and Lusch (2004 p.13) further advocate for firms to focus on their core competence and if they do so:

“...they must establish resource networks and outsource necessary knowledge and skills to the network.”

In line with relationship initiation becoming more important for companies, an understanding of how to manage initiation activities effectively has also become more important (Reinartz, Krafft and Hoyer, 2004). Reinartz, Krafft and Hoyer (2004 p.294) also point out the importance of not only focusing on building networks but rather building the “right” type of relationships based on the company’s context and situation. Business relationships and ties to relevant networks are thus more important than ever. Common for most studies about business-to- business relationships is however that they explore relationships and their dynamics after the relationship is already in place (Edvardsson, Holmlund and Strandvik, 2008). Wilson (1995 p.341) argue that companies should define their mutual goals during the initiation and that:

“Mutual goals are the glue holding a relationship together in times of stress.”

The initiating phase of a relationship can therefore in many ways be said to set the foundation for the rest of the relationship. While some scholars argue that relationship initiation to a large extent is determined by serendipity (Ellis, 2000; Perna et al., 2015) Aarikka-Stenroos et al.

(2018) argue for that as not always being the case. There is thus still uncertainty about the role companies play in relationship initiation. Research on relationship initiation have also been criticized for not investigating relationships larger than a dyad (Batonda and Perry, 2003) and this have to our knowledge so far not been done. As mentioned by Rapp (2009), companies often use partners for tasks such as sales which can be understood as the partner being responsible for initiating relationships on behalf of the selling company. This creates a situation characterized as a triadic context (Vedel, Holma and Havila, 2016) were actions and decisions taken by parties in their respective dyadic relationships are influenced by their perception of the triads´ overall value potential (Vedel, 2016). In a competitive paper for an IMP conference, Aarikka-Stenroos and Halinen (2007) write that the role of partners can be multifaceted and sometimes crucial for the success in relationship initiation. By looking at relationship initiation from a dyadic perspective the potential involvement from a partner is overlooked and a part of relationship initiation goes missing. There is thus a gap in relationship initiation literature concerning the role of partners and how they can be used to facilitate relationship initiation.

1.2 Research aim, purpose and questions

Following the discussion above the aim of this thesis is to fill the gap in relationship initiation literature about the role of partners in relationship initiation. The purpose of this thesis is therefore to develop a conceptual model of relationship initiation in triadic settings. Based on the purpose the following research questions have been formulated:

RQ1. What is the rationale for using partners in relationship initiation?

RQ2. How does relationship initiation take place in triadic settings?

To achieve the purpose of this thesis a single case study of the Swedish Edtech (educational technology) company Urkund’s implementation of their new global partnership strategy have been conducted. Urkund developed their global partner strategy for markets they perceive as strategically important in March 2018. This means that they make use of partners such as resellers and tech partners to reach buyers in these markets thus creating a triadic setting of relationship initiation. The level of analysis will be on the dyadic level between Urkund and their partner but also on the triadic level as the ultimate goal is to establish relationships with buyers through their partners. The case and rationale for choosing it will be more thoroughly explained in chapter 3. Method.

1.3 Thesis outline

How the thesis is organized is illustrated in Figure 1. Chapter 2 contains a literature review concerning relationship initiation and the role of the third actor. In Chapter 3 methods used are presented as well as a short description of ontological and epistemological assumptions. The result of the case study is presented in Chapter 4 with the following analysis in Chapter 5. The final chapter contains conclusions drawn from the analysis including theoretical and managerial implications and is ended with limitations and suggestions for further research.

Figure 1: Disposition of the thesis.

1.Introduction 2.Literature

review 3.Method 4.The case 5.Analysis 6.Conclusion

2. Literature review

In this chapter theories and previous research about relationship initiation and different types of partners are presented. The chapter ends with a presentation of the analytical framework.

2.1 Relationship initiation

Aarikka-Stenroos et al. (2018) suggest that the initiation processes can be broken down into two sections: pre-initiation and actual initiation. The pre-initiation phase includes searching for and matching with potential partners while the actual initiation refers to negotiations about the extent of the relationship (ibid). While some researchers suggest serendipity to be a dominant factor in the searching processes of relationship initiation (Ellis, 2000; Perna et al. 2015) Aarikka-Stenroos et al. (2018) claim these processes to be much more active and intentional.

They also show that companies can prepare for relationship initiation long before an actual need from a specific buyer is realized (ibid). Relationship initiation have traditionally been considered the relatively easy first step in relationship development and the processes and sub- process of relationship initiation have not been the focus of most studies (Dwyer, Shurr and Oh, 1987; Ford, 1980; Wilson, 1995). Later studies focusing on relationship initiation have however based their theoretical framework on the first stages or phases of relationships development research where the models by Ford (1980) and Dwyer, Shurr and Oh (1987) are among the most used and cited among researchers (Aarikka-Stenroos et al. 2018; Batonda and Perry, 2003; Edvardsson, Holmlund and Strandvik, 2008).

2.2 Pre-initiation

The first stage of relationship development is according to Ford (1980) the pre-relationship stage where parties are looking for and evaluating new relationships partners due to new information or episodes in current relationships. An increase in price from suppliers is mentioned as a potential reason for companies to look for and evaluate new relationship partners (ibid). New potential partners will be judged based on previous and current relationships with other partners due to the fact that the two parties have very limited experience and knowledge of each other in this initial stage of a relationship (ibid). Dwyer, Shurr and Oh (1987) use phases to explain relationship development and argue that there is a major difference in each transition from one phase to the next. In their model the phases awareness is where one actor identify another actor as “a feasible exchange partner” (Dwyer,

Shurr and Oh, 1987 p. 15). The time before this phase can thus be characterized by a lack of awareness about an actor’s existence or at the very least their ability to provide value to the own company. As pointed out by Hedaa (1996 p. 511) awareness is a necessary component in relationship initiation and that:

“some form or awareness of each other is a precondition for contacts leading to potential relationships.”

This goes in line with what Edvardsson, Holmlund and Strandvik (2008) argue about the unrecognized status where two parties don’t recognize each other as potential business partners. Edvardsson, Holmlund and Strandvik (2008) conceptualize relationship initiation as having three statuses, unrecognized, recognized and considered, with an increasing likelihood of reaching a business agreement. In each status the relationship is influenced by two forces called converters and inhibitors where the sum of them decides if the two companies are moving closer to or further apart from a relationship. The shift from unrecognized status to recognized status lies according to them in at least a one-sided awareness about “mutual business possibilities” (Edvardsson, Holmlund and Strandvik, 2008 p. 343). This can be related to the first state in the model by Batonda and Perry (2003) containing searching processes.

They similarly highlight the recognition of a need or purpose for a new relationship as the trigger for relationship initiation, followed by activities to find a suitable partner. Information about potential partners are collected and they are then evaluated and selected based on social and economic attributes (ibid).

Wilson (1995) based his research on the model by Dwyer et al. (1987) but added variables theoretically and empirically proven to influence relationship success. These variables can be active in one stage and then latent in the next (ibid). The first stage search and selection is according to Wilson (1995) a more active stage compared to the model by Dwyer, Shurr and Oh (1987). He claims that reputation and performance satisfaction are the active variables influencing the outcome of the relationship (Wilson, 1995). Since the two parties might still know little about each other, reputation and earlier performance can help compensate for the lack of trust or social bonding through earlier cooperation (ibid). As illustrated by Aarikka- Stenroos et al. (2018) current and dormant relationships can also be a good way of identifying potential partners and opportunities for future relationships. This aligns with what Ellis (2000) claim about the importance of current relationships and the network providing good

opportunities in the searching processes of relationship initiation. Adhering to industry standards and regulations needed to be approved vendors can be seen as companies preparing and strategizing for future relationship initiation in an active manner since it can facilitate future relationships (Aarikka-Stenroos et al., 2018) Pre-initiation have been summarized in Table 1.

DIMENSION ACTIVITIES AUTHORS

PRE-

INITIATION

Need identification

Search for partners and information

Strategizing in industry network

Identification of a desirable partner

Evaluation of potential partners

Aarikka-Stenroos et al. (2018), Batonda and Perry (2003), Dwyer, Shurr and Oh (1987), Edvardsson, Holmlund and Strandvik (2008), Ford (1980)

Aarikka-Stenroos et al. (2018), Batonda and Perry (2003), Dwyer, Shurr and Oh (1987), Edvardsson, Holmlund and Strandvik (2008), Ford (1980), Wilson (1995)

Aarikka-Stenroos et al. (2018), Batonda and Perry (2003), Edvardsson, Holmlund and Strandvik (2008), Ellis (2000)

Aarikka-Stenroos et al. (2018), Batonda and Perry (2003), Dwyer, Shurr and Oh (1987), Edvardsson, Holmlund and Strandvik (2008), Ford (1980), Hedaa (1996)

Aarikka-Stenroos et al. (2018), Batonda and Perry (2003), Dwyer, Shurr and Oh (1987), Edvardsson, Holmlund and Strandvik (2008), Ford (1980), Wilson (1995)

Table 1: A summary of activities and processes in Pre-initiation. Sources: Aarikka-Stenroos et al. (2018);

Batonda and Perry (2003); Dwyer, Shurr and Oh (1987); Edvardsson, Holmlund and Strandvik (2008); Ellis (2000); Ford (1980); Hedaa (1996); Wilson (1995).

2.3 Actual initiation

Ford (1980) call the stage where first contact is made the early stage and suggest that it is characterized by uncertainty about future goals and advantages of the relationship. This is supported by Dwyer, Shurr and Oh (1987) who claim that the second phase in their model is explorative and have a search and trial component to it. Both actors are in this phase beginning to consider the other party as a potential partner and the details of the relationship is therefore needed to be worked out (ibid). The exploration phase consists of five subprocesses: 1) attraction, 2) communication and bargaining, 3) development and exercise of power, 4) norm development and 5) expectation development (Dwyer, Shurr and Oh, 1987 p. 16). The relationship is at this stage fragile and easy to terminate (ibid). This goes in line with what Cannon and Perreault (1999) say about relationship specific adaptations as a driver for increasing the switching costs, and the unlikelihood of any adaptations being present in this early phase of the relationship. An actor’s willingness to negotiate is in this phase to a large extent based on the attractiveness of the other actor’s value offer, where attraction is based on both tangible and intangible rewards (Dwyer, Shurr and Oh, 1987). Batonda and Perry (2003) also suggest that the starting processes are characterized by testing and probing to see if goals and personalities are compatible. The initial contact can be direct or by introduction of a third party (ibid).

Wilson (1995) argues that trust and communication are crucial for any relational success and firms therefore in the initial stages try to find common ground upon which they can found their relationship. In the initial stages the potential relationship partners might still know little about each other and source legitimization and information exchange therefore constitute most of the communication processes. But as the relationship stages change the communication processes also changes (ibid). The second stage in Wilson’s (1995) model is to define the purpose which he claims is marginalized by some companies and might be difficult due to different environments. By defining the purpose of the relationship, it is easier to come up with common goals which in a time of stress later on might be what holds the relationship together (ibid).

Morgan and Hunt (1994) also argue that shared values and communication have a positive impact on trust which thus according to Wilson (1995) is one of the most important variables particularly in the initiating stages of a relationship.

2.3.1 Trust and offer intangibility in relationship initiation

How much trust that is needed in the initial stages of a relationship is according to Valtakoski (2015) dependent on the intangibility of the offer. If the offered product or service is perceived as highly intangible by the buyer, they usually perceive it as riskier and therefore require a higher level of trust in the seller in order to purchase (ibid). Valtakoski (2015) therefore argues for a threshold view of the correlation between the level of trust and the intangibility of the offer in relationship initiation. He also proposes a possibility for sellers to engage in mitigation strategies to either increase trust (compensating mitigation strategies) or decrease intangibility of the offer (direct mitigation strategies). By doing so he argues, the seller can influence the outcome of the relationship initiation process as long as the level of trust becomes greater than the perceived riskiness of the offer (ibid).

Valtakoski (2015) provides two sorts of mitigation strategies, direct mitigation strategies, aim at reducing the perceived intangibility through for example market standards, product demonstration or specializing the offer for a specific buyer (ibid). Sellers can also use compensating mitigation strategies to increase the cognitive or affective trust from the buyer.

These strategies include for example references or expert recognition from a third party or continuity and local presence (ibid). This aligns with what Wilson (1995) claim about reputation being important in the initial stage of a relationship if the two parties have little previous experience of each other. Since any new potential relationship partners are measured based on satisfaction and performance of their predecessor or other current relationships (Ford, 1980; Dwyer et al. 1987; Wilson, 1995) a way to increase trust by references, expert opinions or in other ways make their offer appear less risky should be valuable for selling firms. The offer characteristics is thus of great importance in relationship initiation but even for highly tangible offers a minimum level of trust needs to be present (Valtakoski, 2015).

The selling firm can intentionally use mitigation strategies to either change their offer characteristics or the level of trust in them as seen from the buyer perspective. This is done in order to overcome the threshold of trust that needs to be present for the offer in question (ibid).

The initiating state of a relationship is thus an active state according to Valtakoski (2015). Other researchers claim that the initiating state is a much more uncontrollable state where relationship often form through serendipity (Ellis, 2000; Perna et al., 2015). Ellis (2000) found that knowledge about potential relationship opportunities often are a result of existing relationships rather than through market research. Perna et al. (2015) claim that relationship initiation does

not need to be an inactive state but is rather a result of unintended events leading to opportunities the focal firm need to act on in order to capitalize. Specific initiation has been summarized in Table 2.

DIMENSION ACTIVITIES AUTHORS

ACTUAL INITIATION

Contacting

Developing details about the relationships

Building trust

Testing compatibility

Aarikka-Stenroos et al. (2018), Batonda and Perry (2003), Dwyer, Shurr and Oh (1987), Edvardsson, Holmlund and Strandvik (2008), Ford (1980), Hedaa (1996).

Aarikka-Stenroos et al. (2018), Batonda and Perry (2003), Dwyer, Shurr and Oh (1987), Edvardsson, Holmlund and Strandvik (2008), Ford (1980), Wilson (1995)

Edvardsson Holmlund and Strandvik (2008), Valtakoski (2015), Wilson, (1995).

Aarikka-Stenroos et al. (2018), Batonda and Perry (2003), Dwyer, Shurr and Oh (1987), Edvardsson, Holmlund and Strandvik (2008), Ford (1980).

Table 2. A summary of activities and processes in Actual Initiation. Sources: Aarikka-Stenroos et al. (2018);

Batonda and Perry (2003); Dwyer, Shurr and Oh (1987); Edvardsson, Holmlund and Strandvik (2008); Ford (1980); Hedaa (1996); Valtakoski (2015); Wilson (1995).

2.4 Moving closer or further away from a relationship

Edvardsson, Holmlund and Strandvik (2008) have in their research looked more closely on how and why relationship initiation processes change or doesn’t change. They claim that relationships can convert back, or stay in the same status for a period of time due to inhibiting forces or convert forward due to converting forces (ibid). They also stress the fact that different companies can have different starting points. One company might start off as considered due to earlier business while another company is unknown to the company and therefore start off as unrecognized (ibid). Which companies that are chosen as partners depends on the sum of converting and inhibiting forces influencing the relationship initiation (ibid). Edvardsson, Holmlund and Strandvik (2008) also highlight the fact that the initiation process for complex

or knowledge intensive services might differ from pre-designed products where price usually play a bigger role. Trust can be one of the converters and much like Valtakoski (2015), Edvardsson, Holmlund and Strandvik (2008) claim that trust might be more important for complex service offerings due to the difficulties to determine the success of such a relationship.

Complex service offerings might therefore imply a need for higher levels of activity from the selling company in their relationship initiation processes.

2.4.1 Partners as initiation contributors

Aarikka-Stenroos et al. (2018) argue for a number of initiation contributors that much like in the model by Edvardsson, Holmlund and Strandvik (2008) might or might not contribute to the relationship moving forward (Aarikka-Stenroos et al. 2018). These contributors are: contact contributors, artefact contributors, including industry standards and lists of approved vendors and finally ritual contributors, including dinners and visits (ibid). Adhering to industry standards and regulations needed to be approved vendors can thus be seen as companies preparing for future relationship initiation in an active manner since it can facilitate future relationships. Aarikka-Stenroos et al. (2018) therefore align with what Ellis (2000) and Batonda and Perry (2003) claim about the importance of current relationships and the network providing good opportunities in the searching processes of relationship initiation. As this thesis focus on relationship initiation in triadic settings, contact contributors are seen as the most relevant for this thesis and will be explained more in detail below using theories about different types of partners.

2.5 Different conceptualizations and the role of partner companies

Companies selling goods to foreign buyers may use direct or indirect distribution channels (Karunaratna and Johnson, 1997, p. 11). Although companies that export via overseas sales subsidiaries can have higher control over their foreign affiliates, some companies trade off a lack of control for a low-risk market entry via what Karunaratna and Johnson (1997, p. 11) named foreign channel intermediaries or FCI. Karunaratna and Johnson (1997) suggest that where the ratio of projected operating cost to intermediary’s commission is greater than the break-even point, the exporting companies tend to prefer direct distribution channels. However, for different reasons, such as legal and cultural barriers, limited exporter experience and limited company resources, a direct distribution channel may not be feasible or desirable (ibid).

Grewal, et.al. (2018, p.50) argues that in foreign markets companies are often perceived as outsiders, which makes it more important to gain legitimacy in foreign markets compared to domestic ones. In addition, as the intangibility of some value offers can also affect the level of trust needed in relationship initiation, a local presence can increase trust and thereby help reaching the threshold level of trust needed for a particular relationship initiation (Valtakoski, 2015). Thus, to initiate operation in new markets, some companies have to build new relationships that are also new to their counterparts (Johnston and Lawrence, 1988, p.36).

Those relationships can be valuable to the firms involved in the network as they may promote the development of knowledge, give the parties some control over others and may reduce costs of exchange and production (Johnston and Lawrence, 1988, p. 37). Johnston and Lawrence, (1988, p.94) describe this phenomenon as value-adding partnership which is "a set of independent companies that work closely together to manage the flow of goods and services along the value-added chain," enabling groupings of smaller firms to compete favourably against larger, integrated firms.

Another construct that exemplifies the value-adding partnership described in the literature is the relationship between the supplier firm and a partner firm that plays the role of a middleman (Anderson, Håkansson and Johanson, 1994, pp-1-13). The AMA Dictionary of Business and Management (2013, p.199) defines the Middleman as “Intermediary in the flow of goods and services who makes a profit by facilitating or reselling the goods”. These middlemen have played major roles in the evolution of trade and industry, facilitating the sale of produced goods (Olsson, Gadde, and Hulthén, 2018, p. 3). Today these middlemen are not only playing the role of facilitators of sales but are also responsible for identifying actors needs and sourcing to create solutions that match these needs (Olsson, Gadde, and Hulthén, 2018, p.9). The middleman can be involved in value generation in various different ways. Besides the simplistic role of a mere distributor of finished physical products, many middlemen are involved in problem-solving of various types for their business partners. These ‘added-value services’ play a greater role for wholesalers today and include, for example, the design of “retail sales programs, marketing strategies and computerized inventory management systems” (Olsson, Gadde, and Hulthén, 2018, p.8). This argument is in line with the role of what Aarikka-Stenroos and Halinen (2007, pp.11) call third actors. They claim that third actors can perform the role of scouter, awareness builder, need creator, access provider, accelerator, advocate seller, matchmaker, trust builder, evaluation assistant, expectations builder, risk reducer and provider of concrete evidence in relationship initiation (ibid).

In the context within which selling firms make use of intermediary firms to sell their products and services, the different literature presented above make use of the terms FCI, middleman, intermediaries and third actors to describe the actor that represents the indirect distribution channel. Yet, the different definitions in some cases are used to describe the same actors. As this thesis seeks to study how relationship initiation takes place in triadic settings and the rationale for using partners in relationship initiation, we will, therefore, define the different types of actors that represent indirect distribution channels as partners. This definition will allow the authors of this thesis to study the different types of partner companies that are involved in the relationship initiation processes with the seller and their buyers.

2.6 Analytical framework

In accordance with Edvardsson, Holmlund and Strandvik (2008) and Batonda and Perry (2003) relationships are believed to progress during a series of processes but do not necessarily follow a set order in which they develop or progress. The aim of this thesis is to fill the gap in relationship initiation literature about the role of partners in relationship initiation. Breaking down the initiation processes makes it easier to study the processes and level of activity from the focal companies and in this thesis, we use the terms pre-initiation and actual initiation based on the model by Aarikka-Stenroos et al. (2018). Based on the literature review activities, elements and processes found to impact relationship initiation have been included in Table 1 and Table 2. These will constitute the base of the analytical framework as they will be used to analyse the empirical data. Based on the literature review pre-initiation was found to include 1. Need identification, 2. Search for partners and information, 3. Strategizing in industry network, 4. Identification of a desirable partner and 5. Evaluation of potential partners. Actual initiation includes 1. Contacting, 2. Developing detail about the relationship, 3. Building trust and 4. Testing compatibility.

Relationship initiation is defined as the initial time of a relationship where the level of activeness might differ between industries, companies and situations. Perceived intangibility and complexity of the value offer is in line with Valtakoski (2015) believed to have an impact on the level of trust needed to reach a relationship. Both buyer and seller can engage in strategies to impact the threshold level of trust and the use of partners might be one such strategy. As the purpose of this thesis is to develop a conceptual model of relationship initiation in triadic settings focus of the analysis will lie on triadic settings consisting of Urkund, potential

partners and potential buyers. An a priori model of relationship initiation in triadic settings is illustrated in Figure 2. and will be developed in the conclusion based on the analysis of the empirical data.

Figure 2: A priori model of relationship initiation in triadic settings

Companies can use third actors in the initiation process to overcome cultural barriers, limited exporter experience, limited company resources (Karunaratna and Johnson,1997) and gain legitimacy (Grewal, et.al. 2018). These reasons will be included in the analysis with the aim to identify their relevance and the rationale for using partners in the initiation process.

3. Method

In this chapter the research method used as well as methodological assumptions in terms of ontological and epistemological views are presented and justified.

3.1 Methodological discussion

What constitutes good case research is to a large extent depending on one’s underlying philosophical and epistemological views (Piekkari, Plakoyiannaki and Welch, 2010).

Following is therefore a review of the ontological and epistemological considerations this thesis is based on.

3.1.1 Ontological considerations

As argued for by Easton (2010) this thesis is based on the ontological view of critical realism, meaning that the case studied is meant to serve as an example of the socially constructed reality in order to increase our understanding of it. The cardinal reason for adopting a critical realistic view was due to its benefit when studying processes and recurring events (ibid). The aim of this thesis is to fill the gap in relationship initiation literature about the role of partners in relationship initiation. By investigating the role of partners in relationship initiation, i.e. why and how relationship initiation takes place in triadic settings, critical realism is appropriate and have been used in previous research on relationship initiation (Aarikka-Stenroos et al., 2018).

Relationship initiation is considered the event preceding the outcome of an agreement or relationship. Since relationships hardly can be considered as anything other than socially constructed a critical realistic view when studying relationships is in the context of this thesis considered suitable. Easton (2010 p. 213) further argues for the appropriateness of critical realist case approach when studying a complex phenomena such as “interorganisational relationships or nets of connected organisations”. A critical realistic view therefore justifies the methodological choice of conducting a case study in this specific area of research.

3.1.2 Epistemological considerations

In terms of epistemological considerations this thesis continues its view of critical realism arguing for a socially constructed reality where our understanding of the real world is formed by empirical observations. Our observations form our social reality without being able to fully capture or understand the real domain. In critical realism the empirical domain is a construct of our interpretation of the real domain which exists without us observing, understanding or interpreting it (Easton, 2010). The result of this thesis is therefore not by any means intended to provide a definitive or complete explanation of relationship initiation. The aim is rather to contribute to the observable reality, by the collection and analysis of empirical data on the role of partners in relationship initiation. As stated by Dubois and Gibbert (2010): “…a good case study provides a model of reality, not reality itself.” Our purpose is therefore to develop a conceptual model of relationship initiation in triadic settings, using Urkund and their context as an illustrative example.

3.2 Research approach

This thesis was written using an abductive approach as the goal is to modify or generate new models or concepts rather than confirming existing theories (Dubois and Gadde, 2002). Given the purpose of this thesis, to develop a conceptual model of relationship initiation in triadic settings, a qualitative method was chosen. This allowed us to focus on finding the underlying mechanisms of relationship initiation and interpret the soft data of words rather than analysing quantifiable data (Bryman and Bell, 2011 p. 27).

3.3 Research design – case study

This thesis is based on a single case study of the Swedish educational software company, Urkund, that last year change their global partner strategy to include more partners in their sales channels, (described in more detail below). Single case studies have sometimes been viewed as inferior to multiple case studies as if they rely on statistical significance (Dubois and Gadde, 2002). In this matter we agree with Easton (2010 p. 118) that:

“Clearly the sample size in any case study research project is never going to be large enough to qualify for the use of statistical inference.”

The choice of number of case companies must therefore be based on other criteria. Our choice to employ a single case study, rather than using multiple cases, was based on the notion that the research problem chosen, given its novelty is too complex and involve to many variables.

Given the complexity of the area of research it is therefore our belief that using multiple cases would not improve the quality of the thesis or our possibility to conduct an in-depth analysis.

Using additional cases would rather increase the risk of the thesis resulting in breadth rather than in depth (Easton, 1995 cited in Dubois and Gadde, 2002 p. 558).

Case studies do not try to control the context but rather study the phenomena of interest in a specific context (Dubois and Gibbert, 2010) thus allowing the result to be context dependent.

The aim is thus not always to produce general theories but rather use specific cases to increase our understanding of a certain research area or phenomena in a specific context (Bryman and Bell, 2011 p. 60). Case studies are among the most common methods of conducting research about industrial marketing (McLoughlin and Horan, 2002; Piekkari, Plakoyiannaki, and Welch, 2010) and have been proven as a valuable way of conducting research in many disciplines (Yin, 1994 in Dubois and Gadde, 2002 p. 554). Dubois and Gadde (2002 p. 554) further argue that:

“The interaction between a phenomenon and its context is best understood through in-depth case studies” A case study is therefore considered well suited when researching relationship initiation in triadic settings.

As the research area chosen for this thesis is a quite novel one, the goal is not to provide a general understanding of the phenomena, but rather increase the understanding of it through an in-depth case study of a single case in its specific context. By conducting an intrinsic case study (Stake, 1995 in Bryman and Bell, 2011 p. 60) our hope is to contribute with a piece of the puzzle to the understanding of relationship initiation and the role partners can play in these processes.

3.3.1 Case selection

As this thesis follows an abductive approach we did not select our aim or research question before selecting our case company. Therefore, we did not have any set criteria for our case company but rather developed our research question based on the initial observations at Urkund. The selection of Urkund was based primarily on opportunity as one of the authors is currently working there and thus could gain access to relevant data and opportunities for

interviews. This might lead to potential ethical questions discussed further below under “3.6 Ethical considerations”. The company also fitted well into our research area of interest, relationship initiation in triadic settings, as they recently developed their global partner strategy.

3.3.2 Case description

Urkund is a Swedish Edtech (educational technology) company based in Stockholm that provides “SaaS” (Software as a Service) to educational institutions, from primary to higher education. Urkund is the market leader APS (anti-plagiarism system) provider in the Nordic countries and the number 2 player in the world (Urkund internal document 8, 2019).

Urkund states that their mission is to help schools, universities and corporations to encourage original writing. They aim to attain their mission through their main product, the APS software namesake Urkund. Urkund (the product) is a text-recognition system used to identify text similarities in documents (Urkund internal document 1, 2019). According to their website (Urkund 1, 2019) the process of using Urkund consists of a user (teacher or a student) sending a document to be analysed. The system receives the file, extracts the text in the documents and compares it with texts of other documents stored in sources such as the internet, materials published in academic journals/repositories, and documents of their own archives. Urkund then generates a report that shows all the text similarities between the document analysed and other documents stored in the sources mentioned (Urkund 1, 2019). The reports are used by educators to identify if their students have committed plagiarism, if they have referenced properly and it’s also used as a grading tool to provide feedback to their students (Urkund internal document 2, 2012).

Urkund uses a business model where software licensing and delivery are licensed on a subscription basis (Urkund Internal document 3, 2019). The license subscriptions are sold through direct and indirect sales channels in order to reach the largest number of customers in different markets around the world (Urkund internal document 3, 2019).

Since March 2018 indirect sale channels have increasingly received more attention due to a change in strategy in the company that implemented a partnership team to work only with maintenance and development of new and existing partnerships (Urkund internal document 7,

2018). Urkund decided to put its direct sales efforts on markets that are geographically close, such as Nordics and other European markets, and establish partnerships with resellers in distant and culturally different markets around the world (ibid). Besides selling Urkund licenses’

subscriptions those resellers have other responsibilities such as take care of the customer support, promote Urkund in their regions and deal with local bureaucracies to facilitate Urkund’s business (ibid). Another type of strategy used by Urkund to reach out to buyers is partnering up with different types of Edtech companies as described in the company’s website (Urkund 2, 2019). Those companies provide solutions that can either complement or be complemented by Urkund’s APS solution, e.g. LMS (Learning Management System) and grading tools, and are classified as Integration Partners and Technology Business Partners (ibid). While Integration Partners have the role of developing and maintain integrations with Urkund’s APS, Technology Business Partners are responsible for developing and maintain integrations with Urkund’s APS but also possess reseller’s right.

An internal document (Urkund internal document 4, 2019) shows that the majority of the markets where Urkund is present has sales performed by partners. The company is also forecasting to have most of its revenue coming from indirect sales markets in the upcoming years (Urkund internal document 5, 2019).

Based on the information that Urkund changed their global partnership strategy in March 2018 when the company started to direct a greater focus on using resellers, Integration Partners and Technology Business Partners to initiate relationships with new buyers, the authors have performed further investigations about Urkund’s relationship initiation processes. Studying their implementation of this new partnership strategy provided an opportunity to increase our understanding of relationship initiation in triadic settings. Relationship initiation have, as mentioned earlier, mainly been studied from a dyadic perspective (Batonda and Perry, 2003;

Edvardsson, Holmlund and Strandvik, 2009) and the case chosen is therefore argued to provide valuable insights to relationship initiation.

3.4 Data selection and collection

The fact that one of the authors work at Urkund allowed us to form an early understanding of the case context and some of their underlying processes and strategies for initiating relationships. This was an advantage in forming our understanding of what sort of data we needed and how to access it. A mix of data sources have therefore been applied with interviews serving as the primary source of data complemented by internal documents, observation and email conversations. It is common for in-depth case studies to use several data sources as it serves as a form of triangulation and thus verify the accuracy of the data (Dubois and Gadde, 2002). Triangulation is also common when adopting a critical realist design as it serves as a way to provide “a better fitting explanation of the phenomena under study” (Van Bockhaven, Matthyssens and Vandenbempt, 2013 p.409). Another reason to use multiple data sources is according to Dubois and Gadde (2002) that it also helps the researcher to find new unexpected dimensions of the research problem. A mix of data sources thus increase the opportunity to find both passive and active data potentially leading to new discoveries (ibid). The use of multiple sources of data is therefore believed to improve the possibility to conduct an in-depth study of the chosen phenomena.

3.4.1 Interviews

As this thesis is about relationship initiation in triadic settings we wanted to interview people who possessed a lot of experience in managing and initiating relationships with resellers and other partners. The main source of empirical data in this case study is therefore a total of four interviews, conducted with all employees at Urkund’s Global Partnership Team and the Chief Operations Officer (C.O.O), in their Stockholm office illustrated in Table 3. The reason for limiting the number of interviews to four was due to the fact that the people possessing knowledge related to relationship initiation in triadic settings was believed to be limited to the members of the Global Partnership Team and the C.O.O. The need for additional data was therefore collected through internal documents, observation and email conversations described below.

INFORMANT / POSITION DATE DURATION

PARTNERSHIP DEVELOPER 29-03-19 57 min

PARTNERSHIP DEVELOPMENT CONSULTANT 04-04-19 55 min CHIEF OPERATIONS OFFICER (C.O.O) 04-04-19 46 min

PARTNERSHIP TEAM MANAGER 04-04-19 45 min

Table 3. Descriptions of interviews

The informants are all responsible for implementing the new global partner strategy by initiating and maintaining relationships with resellers and partners in their respective geographical area. In order to collect a rich amount of data but also let the respondents talk more freely, the interviews were conducted in a semi-structured way using an interview guide (see Appendix 1). The interview guide was based on themes from the theoretical framework about pre-initiation and actual initiation but did also include questions about Urkund and their partners and buyers in general. The interviews were quite loosely based on the interview guide and were conducted with the aim of having a conversation with the informants about relationship initiation and their partners rather than asking questions in a pre-defined order. All the interviews therefore differ in terms of the order questions were asked and how the questions were formulated. The choice to keep a loose structure to the interviews was based on the idea that it allowed the informants to talk about what they perceive to be most important. Thus, reducing the risk for the bias or predetermined notions of the two authors on what was important to set the limit on what data that was collected. As pointed out by Dubois and Gadde (2002 p.557) predetermined ideas can limit the data collection:

“It is interesting to note that a very active interviewer will come across passive data only. On the other hand, active data will require a more passive (less predetermined) researcher.”

By keeping an open mind about relationship initiation during the interviews we believe we increased our chances to come across data that otherwise might not have been discovered.

Minimizing the influence of the two authors was considered crucial especially as one of the authors is employed by Urkund and the company, context and phenomena had been discussed extensively between the two authors before the interviews. Allowing the informants to talk freely was therefore considered to be vital for the quality of the study as the aim with the

interviews was to interpret the social reality of the informants. This is due to the interpretive design of critical realism (Van Bockhaven, Matthyssens and Vandenbempt, 2013). If the informants drifted of topic too much it was however easy to direct them into the research area of interest again by asking a follow-up question from the interview guide. This way of conducting interviews allow researchers to gather data that is based on the informant’s own interpretations of their reality while at the same time address specific topics (Bryman and Bell, 2011). Therefore, semi-structured interviews were considered the best choice given the purpose and design of the study. After the first interview we decided that the author not employed by Urkund should take the lead when conducting the interviews. This decision was based on the notion that the informants otherwise might assume prior knowledge about the processes and strategies in question and therefore not provide as detailed or elaborated answers.

3.4.2 Documents

One of the author’s involvement in the case context provided us with an opportunity to access internal documents and email conversations which have been added as empirical sources of data. The documents were accessed through the internal employee portal and chosen based on their relevance for the research topic and aim of this study. A total of eight documents were chosen and have been listed in the reference list. The documents are not supposed to be shared with the public but we have permission to include them in our thesis and analyse the content of these documents. The documents contain somewhat sensitive information such as key performance indicators, market insights and partnership strategies. Therefore, no direct quotes from the documents have been used in the thesis but instead the broader picture of their content is analysed.

3.4.3 Observation and email conversations

The observations were made by the author employed by Urkund and are related to a specific contact with a reseller in Brazil and the following email conversation. The particular event has later been shared with the second author and discussed and analysed by both of them as a source of complementary data. The reason for choosing this observation was due to the extensive email correspondence that followed. The emails made the event easier to share with the second author and also served as elaborated field notes. Bryman and Bell (2011 pp. 444) suggest that field notes should be written as soon as possible and be clear and detailed to overcome the issue of a fragmented memory. The emails are therefore a way to reduce the reliance on memory as they serve as a digital form of field notes about the event that transpired.

3.5 Data analysis

To make the analysis process easier and more reliable all interviews were recorded and later transcribed using a transcription software. The transcripts were then manually checked for errors and corrected by the authors. According to Fletcher (2017) the coding process in critical realism is more theory- and researcher-driven than in for example grounded theory. A list of themes was therefore drawn from the literature review and analytical framework. The themes were based on previous research about the activities, elements and processes included in relationship initiation. The empirical data was then coded and fitted into these themes. As the coding progressed new codes and themes were added and some were eliminated or renamed until every piece of text was coded. In the second cycle of coding the codes were combined under parent codes in order to identify demi-regularities. The coding process was later repeated for the internal documents and email conversations using the parent codes as a base.

3.6 Ethical considerations

The fact that one of the authors currently work at the company used as an example in this case study present some ethical challenges that we needed to take into considerations. The observations made by the author in the daily work is to some extent made without the approval or informed consent (Bryman and Bell, 2011 pp.132) of the entities being studied. He also has access to information that the company potentially want to keep to themselves or are reluctant to share with any outsiders which pose as a potential problem. These challenges are something we have taken seriously and the informants have therefore been given the opportunity to read the thesis before final submission. This was done to make sure that any information regarded as company secrets or a source of competitive advantages are not shared publicly with people outside of the company. In addition to this the names of informants or employees will be kept anonymous to protect the integrity of informants, employees and people associated with the case company. All informants have also been informed beforehand about the purpose of the study and what the empirical data would be used for as well as given their consent to partake in recorded interviews.

3.7 Critical reflection

In order to adhere to previous calls from the research community (Piekkari, Plakoyiannaki and Welch, 2010; Dubois and Araujo, 2007) to include more reflection and transparency about methodological choices and their implications the authors would like to conclude the method chapter with doing exactly that. The choice to make a qualitative single case study make it hard to replicate as it is based on the informant’s subjective understandings of reality. The authors attempt to interpret their answers also lead to a problem with double hermeneutic as our understanding is based on their understanding. Observations are to their nature fallible and it is possible that a similar study in a similar context would reach a different conclusion.

By conducting a single case study of a phenomenon at a Swedish company in a specific industry the generalisability to other industries or contexts is potentially quite low. In this regard we do however seek inspiration from Ruddin (2006 p.804) in that the primary goal of case studies don’t need to be generalisation but rather that the researchers “illustrate the case they have studied properly, in a way that captures its unique features”.

4. Empirical findings

In this chapter we will present the case from the perspectives of the informants together with the other empirical findings from observation and internal documents. Focus lies on Urkund’s implementation of the new global partner strategy and the triadic settings of relationship initiation this creates.

4.1 Background

This thesis classifies the different types of partner companies as partners. In the interview, the informants use the same term (partners) to refer to the group of partner companies comprised of resellers, Integration Partners and Technology Business Partners. When speaking about Integration Partners and Technology Business Partners the name “tech partner” is used to refer to both these types of partners. In addition, although this thesis uses the terms buyers or potential buyers, during the interviews the term customer was used by informants and therefore appear in direct quotes from the interviews or while referring to their responses and other empirical sources such as internal documents.

4.2 The case context

As previously mentioned in section 3.3.2, the Partnership Development Consultant confirms that since 2018 indirect sales channels have become more and more Urkund’s main sales channel. This new strategy according to him was implemented by new owners that have decided to target European markets through the direct sales team and establish partnerships with partners in distant and culturally different markets around the world (ibid). Those partners are described by informants as resellers or tech partners which is a general way to refer to Integration Partners and Technology Business Partners (Partnership Developer). Besides selling Urkund licenses’ subscriptions resellers have other responsibilities such as take care of the customer support, promote Urkund in their regions and deal with local bureaucracies to facilitate Urkund’s business (ibid). Integration Partners have the primary role of developing and maintaining integrations with Urkund’s APS, which add value to their product and to Urkund and thus create an environment where their buyers will have access to an APS tool and Urkund will have access to new potential buyers (ibid). By having Urkund integrated into their LMS or a grading tool those tech partners will provide a more complete solution to their buyers as it will be possible for their users (Urkund internal document 6, 2019). For Urkund once the integration with a new system is created a new market of users of this particular system opens

up and Urkund will be able to reach potential buyers via these tech partners (C.O.O). The same logic applies to Technology Business Partners which is a hybrid model where the partners is responsible for the development and maintenance of an integration between their solutions and Urkund’s APS, but also possess a reseller responsibility to actively sell Urkund’s APS license subscription on behalf of Urkund (Partnership Developer). The C.O.O also explains that relationship initiation with tech partners usually takes longer than with resellers.

Relationship Initiation Processes

The informants have stated that Urkund has two main strategies to initiate business relationships with its potential buyers which are indirect and direct sales channels. Direct sales mean Urkund sales representatives performing sales from Urkund head office through inbound, outbound, cold calls in order to reach the potential buyers whereas indirect sales means use partners to perform direct sales (Partnership Developer). These strategies were developed by the company’s board to decide where to sell directly and where to sell via a partner company in 2018 and are also described in an internal report (Urkund internal document 7, 2018) and the company’s intranet.

The relationship initiation with buyers in indirect sales markets starts with a list of prioritized markets where they look for partners at first (Partnership Team Manager). The prioritization of markets is based on digital maturity and economic situation (ibid). In addition, the partner team elaborated a partner profile with some criteria that a desirable partner should fulfil. The partner profile work as a guide for Urkund’s partner team when looking for a new reseller or tech partner in a particular market (Partnership Development Consultant).

The relationship initiation processes with a reseller take place as “a regular sales process”

according to the Partnership Developer. It starts with a member of the partner team googling some keywords in order to get tech partners or resellers’ website as results in a particular market. They also look at other companies that resell or develop products that target the same buyers as Urkund, and attend events were representative from software providers or resellers could be present, to later on target those possible partners (ibid).

All informants implied that the identification of a desirable partner is a process that can start during the searching process when Urkund’s partner team becomes aware of a desirable partner. That can also happen when the partner team gets contacted by a company that then is

perceived as a desirable partner for Urkund. This process can last all the way to the negotiation when the role of the parties, terms, conditions, commissions were discussed and accepted by the partner company, as stated by the Partnership Developer:

“We search for a partner that can sell our product and specific markets. We contact them. We asked them if they would like to resell our products if they say yes, then we enter an agreement with them...”

The criteria for a suitable partner were described by all informants as specific characteristics that a company should have to be seen as a possible partner. The characteristics listed by the informants are also present in an internal report (Urkund internal document 7, 2018) that states the suitable partners should possess a network or customer base in the education sector, be a market influencer, possess software knowledge, have good profitability, currently be selling software products to the education market, have local presence with language and cultural understanding of the particular region and be a small to medium size company. The last criteria which regards the company size were later on disregarded by the partner team as it was shown to have little impact on the success of the partnership (Partnership Developer).

All the informants suggested that the initial contact can come from Urkund, a reseller, a tech partner or from the potential buyers. The C.O.O. stated that in direct sales markets the initial contact often came from Urkund to the potential buyers, while in indirect sales markets resellers contact the potential buyers:

“We have people here contacting the end users directly and for the markets where we don't have the possibility to sort of be in direct contact with customers, we have partners who are sometimes like resellers.”

According to the Partnership Developer, the contact with a reseller or a tech partner could come from Urkund but also from the resellers/tech partners that want to complement their portfolio or product by partnering-up with Urkund:

“I do have a case where a partner contacted us. They hadn't had any specific request from a customer but they saw that they have a portfolio of different products and they were missing a plagiarism detector.”