Multi-homing in B2B services: a psychological perspective

Extant literature on business-to-business (B2B) has largely ignored studying multi-homing through a psychological lens. This paper aims to outline the results of three constituent studies, which were designed to reveal potential differences in multi-homers’ versus single-homers’ loyalty behaviors in a B2B and supply chain management (SCM) setting; identify factors that differentiate single-homers and multi-homers in these settings; and examine the relevance and effect of perceived risk on multi-homing behaviors.

In Studies 1 and 2, the authors used a questionnaire-based survey to capture the perceptions of 503 and 458 SCM experts, respectively. They then deployed AMOS v.21 to perform structural equation modeling. In Study 3, the authors used a mixed-methods approach to interview 18 SCM experts and then applied these insights to a survey with 242 SCM experts.

Study 1 reveals that multi-homers’ loyalty toward their preferred SP has a weaker effect on willingness to pay premium prices and share-of-wallet than single-homers’ loyalty. Study 2 establishes that several attitudinal factors distinguish multi-homers from single-homers in a loyalty framework. Study 3 concludes that perceived risk dimensions promote multi-homing intention, which in turn promotes multi-homing behavior.

Through empirical investigation, the present research succeeds in establishing that multi-homing is a concern for SPs, deciphering the attitudinal factors that distinguish multi-homers and single-homers in a loyalty framework, and confirming the influence of perceived risk dimensions on multi-homing. Thus, the study has several theoretical and practical implications for B2B services in emerging economies.