The termination paradox: latent cognitive profiles of barriers and acceptance in B2B relationships

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Abstract
Purpose: Relationship termination is inevitable in business-to-business (B2B) markets, yet managers face the cognitive challenge of balancing relational continuity with disengagement. This study aims to examine termination cognition – managers’ evaluations of termination barriers and termination acceptance – as a cognitive microfoundation of adaptive relationship management. Design/methodology/approach: The authors conduct a two-wave longitudinal survey of 400 executives and frontline managers in the Korean manufacturing and service industries. The authors apply latent profile analysis to identify configurations of termination cognition and examine how these profiles relate to relational performance over time. Findings: The authors identify three termination cognition profiles: low–low, mid–mid and high–high. The findings reveal a termination paradox: perceived barriers and acceptance align rather than oppose each other and form coherent cognitive configurations. Firms in the high–high profile exhibit superior short-term relational performance, but this advantage diminishes over time, indicating that termination cognition functions as a dynamic, time-contingent capability. Termination acceptance exerts a positive direct effect on performance but produces a negative configurational pathway due to cognitive transition costs. In contrast, termination barriers indirectly enhance performance by fostering disciplined decision-making. Originality/value: This study reframes relationship termination as a strategic cognitive capability rather than a relational failure. By integrating social exchange theory and dynamic capabilities, the authors explain how termination cognition enables adaptive relationship management in B2B markets.

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