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Alliances in industrial purchasing: the determinants of joint action in buyer-supplier relationships, Journal of Marketing Research (1990)
| Venue: | International Studies of Management & Organization |
| Citations: | 250 - 1 self |
BibTeX
@INPROCEEDINGS{Heide90alliancesin,
author = {Jan B. Heide and George John},
title = {Alliances in industrial purchasing: the determinants of joint action in buyer-supplier relationships, Journal of Marketing Research},
booktitle = {International Studies of Management & Organization},
year = {1990}
}
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Abstract
Recent trends in industrial markets indicate that buyers and sellers are increas-ingly supplanting conventional "arm's length " arrangements with "alliances " involv-ing closer ties. The authors develop a theoretical model of industrial buyer-supplier ties that presents ioint action as a key aspect of closeness. Whereas conventional ties emphasize a clearly defined division of labor, these newer relationships are distinguished by more tightly integrated roles based on undertaking activities jointly. Drawing primarily on a normative theory of transaction costs, the authors identify the conditions under which these relationships are useful. The utility of the rela-tionships derives from an ability to safeguard relationship-specific investments and to facilitate adaptation to uncertainty. Using data from a sample of industrial firms and their suppliers, the authors test these predictions. The results show good support for the model. Consequences for research and practice in marketing are drawn.
Keyphrases
buyer-supplier relationship industrial purchasing marketing research joint action industrial firm normative theory good support industrial market rela-tionships derives key aspect length arrangement transaction cost theoretical model undertaking activity relationship-specific investment recent trend involv-ing closer tie industrial buyer-supplier tie whereas conventional tie supplanting conventional arm
