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A Transaction Cost Perspective on Vertical Contractual Structure and Interchannel Competitive Strategies
Abstract
Despite potent theory to contrast transactional governance in "markets and hierarchies," the variety of extant channel systems strains this dichotomy. The authors examine three contractually integrated channel systems in the hardware industry: wholesale voluntary chains, dealer cooperatives, and independents. They extrapolate from a transaction cost perspective to frame hypothesized differences in decision making structures and competitive strategic postures across relational forms. Results from a sample survey of retail informants are generally supportive.
... Transaction Cost Approach (TCA) has become common in the literature (Dwyer & Oh, 1988;Heide & John, 1988), particularly in entry-mode investigations (Klein, 1989;Klein, Frazier, & Roth, 1990). Based on the assumption that markets are competitive with numerous potential suppliers, which reduces the need for monitoring and enforcing supplier behaviour (Hennart, 1989), the TCA approach argues that low-control modes are preferred because the threat of replacement reduces opportunism and forces suppliers to perform efficiently (Anderson & Coughlan, 1987). ...
... Based on the assumption that markets are competitive with numerous potential suppliers, which reduces the need for monitoring and enforcing supplier behaviour (Hennart, 1989), the TCA approach argues that low-control modes are preferred because the threat of replacement reduces opportunism and forces suppliers to perform efficiently (Anderson & Coughlan, 1987). Nevertheless, when the markets fail, the range of suppliers existing to the firm is constrained leading to "small-numbers bargaining" and the supplier's tendency to behave opportunistically is reduced through stern negotiation and supervision of contractual relationships (Dwyer and Oh, 1988). This thereby increases the transaction costs related to low-control modes. ...
The study was conducted to evaluate the performance of two small scale irrigation schemes at north Wollo zone,
Amhara regional state using process and comparative performance indicators. The irrigation schemes were Golina
and Kokono with command area of 400ha and 80ha respectively. Primary data collection includes measuring
discharge at diversion weir, soil moisture before and after irrigation and depth of water applied. The secondary data
collection includes determination of crop types, total yields, farm gate prices of irrigated crops, area irrigated per
crop per season, and cost of production. The two schemes were compared using minimum sets of comparative
performance indicators which include agricultural, water use and physical performance indicators. The process
indicators (conveyance, application and storage) were used to check the performance of the two schemes. From the
analyses of the internal performance indicators, the conveyance, application, storage and overall efficiencies were
found to be 76.58%, 52.51%, 48.38% and 40.21% for Golina scheme and 38.02%, 65.93%, 44.89% and 25.07% for
Kokono scheme respectively. From the analysis of comparative indicators, the outputs per cropped area were found
as 1111.67 and 753.38 us
ha-1, the output per unit irrigation supply of 0.11 and 0.1us m-3
for Golina and Kokono respectively. The water use performances of the two schemes were compared, RWS found to
be 1 at both schemes, and RIS was found as 4 and 1.7 at Golina and Kokono. The irrigation ratio of Golina was
found to be 0.974 and that of Kokono was 0.51. In general, based on the assessment carried out, the Golina scheme
performed better than the Kokono scheme.
... Transaction Cost Approach (TCA) has become common in the literature (Dwyer & Oh, 1988;Heide & John, 1988), particularly in entry-mode investigations (Klein, 1989;Klein, Frazier, & Roth, 1990). Based on the assumption that markets are competitive with numerous potential suppliers, which reduces the need for monitoring and enforcing supplier behaviour (Hennart, 1989), the TCA approach argues that low-control modes are preferred because the threat of replacement reduces opportunism and forces suppliers to perform efficiently (Anderson & Coughlan, 1987). ...
... Based on the assumption that markets are competitive with numerous potential suppliers, which reduces the need for monitoring and enforcing supplier behaviour (Hennart, 1989), the TCA approach argues that low-control modes are preferred because the threat of replacement reduces opportunism and forces suppliers to perform efficiently (Anderson & Coughlan, 1987). Nevertheless, when the markets fail, the range of suppliers existing to the firm is constrained leading to "small-numbers bargaining" and the supplier's tendency to behave opportunistically is reduced through stern negotiation and supervision of contractual relationships (Dwyer and Oh, 1988). This thereby increases the transaction costs related to low-control modes. ...
... Transaction Cost Approach (TCA) has become common in the literature (Dwyer & Oh, 1988;Heide & John, 1988), particularly in entry-mode investigations (Klein, 1989;Klein, Frazier, & Roth, 1990). Based on the assumption that markets are competitive with numerous potential suppliers, which reduces the need for monitoring and enforcing supplier behaviour (Hennart, 1989), the TCA approach argues that low-control modes are preferred because the threat of replacement reduces opportunism and forces suppliers to perform efficiently (Anderson & Coughlan, 1987). ...
... Based on the assumption that markets are competitive with numerous potential suppliers, which reduces the need for monitoring and enforcing supplier behaviour (Hennart, 1989), the TCA approach argues that low-control modes are preferred because the threat of replacement reduces opportunism and forces suppliers to perform efficiently (Anderson & Coughlan, 1987). Nevertheless, when the markets fail, the range of suppliers existing to the firm is constrained leading to "small-numbers bargaining" and the supplier's tendency to behave opportunistically is reduced through stern negotiation and supervision of contractual relationships (Dwyer and Oh, 1988). This thereby increases the transaction costs related to low-control modes. ...
Meteorological factors that mostly influence food production of any Nation are rainfall and temperature. Their
extremes are significant and observable indices of evidences of negative climate change scenarios and adequate
knowledge of extreme events will help in policy making to save the nation of future losses due to their extremes.
With the advent of climate change, rainfall and temperature patterns are potential threats to achieving the SDG’s of
zero hunger and poverty eradication, coupled with the ever growing world population and development.
This paper x-rays rainfall and temperature regimes of Northern Nigeria over a 47 years period and its trend
within 13 states as it has affected farming activities and caused massive migration of herders to more favourable and
conducive areas that usually lead to incessant herder- farmer’s crisis in Nigeria.
Keywords: Climate change extreme events, Rainfall and temperature.
... Transaction Cost Approach (TCA) has become common in the literature (Dwyer & Oh, 1988;Heide & John, 1988), particularly in entry-mode investigations (Klein, 1989;Klein, Frazier, & Roth, 1990). Based on the assumption that markets are competitive with numerous potential suppliers, which reduces the need for monitoring and enforcing supplier behaviour (Hennart, 1989), the TCA approach argues that low-control modes are preferred because the threat of replacement reduces opportunism and forces suppliers to perform efficiently (Anderson & Coughlan, 1987). ...
... Based on the assumption that markets are competitive with numerous potential suppliers, which reduces the need for monitoring and enforcing supplier behaviour (Hennart, 1989), the TCA approach argues that low-control modes are preferred because the threat of replacement reduces opportunism and forces suppliers to perform efficiently (Anderson & Coughlan, 1987). Nevertheless, when the markets fail, the range of suppliers existing to the firm is constrained leading to "small-numbers bargaining" and the supplier's tendency to behave opportunistically is reduced through stern negotiation and supervision of contractual relationships (Dwyer and Oh, 1988). This thereby increases the transaction costs related to low-control modes. ...
... Applications of TCA have become fairly common in the general marketing literature (Anderson and Weitz 1986;Anderson and Schmittlein 1984;Dwyer and Oh 1988;Heide andJohn 1988, 1992), especially in entry-mode investigations (Anderson and Gatignon 1986;Anderson and Coughlan 1987;Gatignon and Anderson 1988;Klein 1989;Klein, Frazier, and Roth 1990). The theory appears to be especially effective in explaining vertical integration decisions. ...
... Under these conditions, market-contracting arrangements, or low-control modes, are favored because the threat of replacement dampens opportunism and forces suppliers to perform efficiently (Anderson and Coughlan 1987;Anderson and Gatignon 1986). When markets fail and the range of suppliers available to the firm is restricted (resulting in "small-numbers bargaining"), the supplier's tendency to behave opportunistically is reduced only through stringent negotiation and supervision of contractual relationships (Dwyer and Oh 1988), thereby greatly increasing the transaction costs associated with low-control modes. In such circumstances, the firm can significantly reduce its transaction costs by replacing external suppliers with its own employees, whose behavior it can monitor and control more effectively (Hennart 1989;Klein 1989). ...
Some peculiar characteristics of service firms, such as low capital intensity and the inseparability of production and consumption, have necessitated the modification of the traditional transaction-cost framework used to study entry-mode choice. By relaxing some unduly restrictive assumptions of the conventional transaction-cost analysis (TCA) model, the paper argues that firms prefer to start with full-control modes. It postulates that substantial variation in entry-mode choice occurs when firms that are characterized by low asset specificity relinquish control in response to the rising costs of integration or the diminishing ability to integrate. Several hypotheses on the propensity of service firms to employ shared-control entry modes are developed and tested. The results not only provide insights into entry-mode choice by service firms but also indicate how the transaction-cost framework can be broadened to develop a more comprehensive model for understanding entry-mode choice.
... In one study, Dwyer and Welsh (1985) find bilateral decision-making processes to follow from environmental heterogeneity. In a second study, Dwyer and Oh (1987) show bilateral patterns to be a function of power-dependence considerations, or more specifically of the degree of munificence in a dealer's market. Noordewier, John, and Nevin (1990) demonstrate that the design of bilateral decision-making processes under conditions of uncertainty actually enhance certain aspects of performance in industrial purchasing relationships. ...
... Though many of the extant models of channel strategy tend to emphasize choices among discrete channel types (i.e., integration versus nonintegration), I would argue that it is the nature of these specific dimensions, rather than channel types per se, that represent the ability to manage ongoing relationships. In fact, as evidenced by Dwyer and Oh's (1988) findings, governance dimensions are not isomorphic with channel type or institutional arrangement. On a similar note, the use of general terms like "partnerships" and "alliances" is potentially misleading. ...
Relationship management rapidly is becoming a central research paradigm in the marketing channels literature. A growing body of conceptual and empirical literature addresses different aspects of interfirm relationships, building in part on recent theoretical developments in organization theory, law, and economics. Interestingly, however, some of these theoretical frameworks make radically different assumptions about the nature of interfirm relationships, though these differences to date have not been examined systematically in the marketing literature. The author reviews these theoretical perspectives and develops a formal typology of approaches to relationship management. Specifically, he develops a typology of three different forms of governance, which vary systematically in terms of how specific interfirm processes are carried out. He also discusses the antecendents of different relationship forms and shows the results of a preliminary empirical test.
... Its usefulness derives from its insight into the comparative properties of mechanisms for structuring exchange relationships and from its explicit identification of the conditions under which different structural arrangements are appropriate. Transaction cost reasoning has been applied in the past to sales organization decisions (Anderson 1985;John and Weitz 1989), the structuring of distribution channel and purchasing relationships (Dwyer and Oh 1988;Heide andJohn 1988, 1990;Noordewier, John, and Nevin 1990), and market entry decisions (Anderson and Coughlan 1987;Klein, Frazier, and Roth 1990). ...
... 'For a more thorough review of Macneil's (1980) work, see Dwyer, Schurr, and Oh (1987) and Noordewier, John, and Nevin (1990). buyer may attempt to control the supplier's decision making in areas such as manufacturing, selection of subsuppliers, and quality control procedures, which under market governance would normally belong entirely to the supplier's domain. ...
Transaction cost analysis is rapidly becoming an important theoretical paradigm in marketing. However, the accumulation of transaction cost studies has been accompanied by a growing body of criticism, primarily directed toward its underlying behavioral norm of opportunism. That norm is a serious theoretical deficiency, not only because it may be descriptively inaccurate, but also because it limits the applicability of the theoretical framework. The authors show that norms play a very significant role in structuring economically efficient relationships between independent firms. In the absence of supportive norms, it is not possible for parties whose specific assets are at risk to acquire vertical control as per the transaction cost prescription. Instead, those parties lose control because of their dependence. An empirical test of the conceptual model in a sample of manufacturer-supplier relationships shows good support for the authors’ hypotheses.
... In the governance literature, contracts-i.e., "agreements in writing between two or more parties, which are perceived as legally binding" (Lyons and Mehta, 1997, p. 241)-are identified as valuable structural mechanisms to address these challenges (Salvato, Reuer, and Battigalli, 2017;Schepker, Oh, Martynov, and Poppo, 2014). Some scholars (e.g., Dwyer and Oh, 1988;Klein, Crawford, and Alchian, 1978;Parkhe, 1993) stress that contracts have an important safeguarding function. Specifically, partners can codify particular provisions in contracts that reduce the risk of opportunistic behavior. ...
... Research on the role of contracts in governing interfirm relationships has traditionally focused on the safeguarding function of contracts, emphasizing that, through specifying particular provisions in the CONTRACT DESIGN: A CONFIGURATIONAL PERSPECTIVE J PROD INNOV MANAG 2017;00(00):00-00 contract, the risk of opportunistic action can be reduced (Dwyer and Oh, 1988;Hennart, 1991;Klein et al., 1978;Parkhe, 1993;Pisano, 1989). More recently, studies have emphasized that, in addition to safeguarding, contracts can also incorporate other functions such as promoting coordination of interfirm relationships (Ariño and Ring, 2010;Lumineau, 2017;Reuer and Ariño, 2007;Ryall and Sampson, 2009;Schilling, 2009). ...
This study inductively explores the interplay among different contractual functions and their impact on project performance in collaborative new product development (NPD) projects. Applying a configurational perspective, contracts are conceptualized as bundles of different functions. In line with the notion of discriminating alignment, an explicit distinction is made between different contextual settings in terms of innovation objectives (i.e., incremental versus radical) and relational embeddedness (i.e., presence versus absence of prior collaboration) in the exploration of the project performance implications of different contractual configurations. Fuzzy set qualitative comparative analyses on a sample of 125 collaborative NPD projects helped to generate propositions on the interplay between different contractual functions across different contextual settings. The results indicate that the contractual coordination function is an important function in achieving high project performance in collaborative NPD projects. However, the research findings demonstrate that it is not a sufficient condition and needs to be complemented with discrete safeguarding functions depending on the particular context. Together, these findings provide new insights into how particular combinations of contractual functions can help address the core governance challenges of collaborative NPD. They also point to the relevance of applying a configurational perspective to the study of the role of contracts in management research. Finally, they provide practitioners with specific recommendations concerning the design of contracts for collaborative NPD projects.
... Cheung (1969b) examines agreements that mix the form of the contract as well as its physical and technological nature [17,18]. [14,35,60] in their research consider the contracts that are characteristic of the joint sharing and management of resources and also the management of common property [25]. Hybrid contracts can merge economic and legal organization, unite opposing functions and create a "balance" in the analysis of institutional and technological structures, that is, compare alternatives as a special type of contract. ...
This article analyzes the agricultural contract through the eyes of the NIE. The article has built its analytical framework on contracts in agriculture. This choice was dictated by the presence of more than 40 enumerated forms of the types of contracts, and the research realizes that such an enumeration is conditional and not exhaustive. The need to find specific forms of management of common resources-water, land; of general products-for example the "quality schemes" known by the CAP; the need for rapid deployment of specific technologies that are needed to derive synergistic benefits from ecology and agriculture; solving the food and farming problem. The agricultural contract is defined as a social category combining: (1) a system of interconnected institutions, uniting common rules and contractual clauses; (2) market and non-market, contractual and non-contractual processes; (3) a hierarchical structure combining heterogeneous, hybrid economic mechanisms of exchange. Relying on the theory of Governance structure (GS) and the theory of the hybrid contract, the study matches the classical understanding of contract law and the procedural nature of the neoclassical organization, with the modern understanding of the economy as a system of contractual and non-market relations. A unified analytical toolkit is proposed for the subordination of relationships between companies, administrative hierarchies, hierarchies including arbitrators, in property rights disputes; market and non-market contracts, the hybridity of the technological process and the essence of the organization as a type of procedure.
... Balakrishnan & Wernerfelt (1986); Harrigan (1986); Robertson & Gatignon (1998) в изследванията си имат предвид договорите, които са характерни със съвместното споделяне и управление на ресурсите и както и управлението на common property (Dwyer & Oh, 1988;Sauvée, 1997Sauvée, :2002. ...
Разработката представя резултатите от първи етап на научноизследователския проект „Структура и управление на договорните отношения в селското стопанство на България“, финансиран от Селскостопанска академия и разработван от Институт по аграрна икономика. Адаптирани са постиженията на интердисциплинарната Нова институционална икономика и са разработени теоретико-методологическите въпроси на икономическото изучаване на аграрните договори. На тази основа е разработен холистичен подход за дефиниране, класификация, оценка и усъвършенстване на договорите и договорните отношения в българското селско стопанство. Направен е критичен анализ на съвременното развитие на икономиката на договорите, организациите и институциите посредством проучване на литература, официални документи и управленческа практика в аграрната сфера на развитите страни и България. Откроени са особеностите на икономическото изучаване на аграрните договори в сравнение с чисто юридическия подход в тази област. Обоснован е „нов“ подход за икономически анализ, оценка и усъвършенстване на аграрните договори в страната, който включва: (1) икономическо дефиниране на аграрните договори и характеризиране на тяхното място в системата на аграрен гавърнанс (управление) като двустранни или многостранни споразумения свързани със селско-стопанството производство и услуги; (2) икономическа характеристика на агентите участници в договорните отношения (интереси, степен на информираност, тенденция за поемане на риск, капацитет, тенденция към опортюнизъм и др.); (3) икономическа характеристика на различните типове аграрни договори (за покупко-продажба, наем на труд и ресурси, услуги, заем, застраховане, маркетинг, коалиране и т.н.); (4) икономическо характеризиране на процеса на аграрно договаряне (технологични, транзакционни, институционални и т.н. фактори за управленчески избор); (5) икономическо характеризиране на резултата от договорния процес и доминиращия управленчески ред в аграрната сфера (право на закона, право на силата, договорна структура, и т.н.); (6) характеризиране на етапите за усъвършенстване на аграрните договори и управление (идентифициране на проблеми и провали на пазар, частно договаряне, и обществени форми; нужди и форми на нова обществена интервенция и т.н.); (7) идентифициране на нужди и източници на нова информация за анализ и оценка на аграрните договори. Направени са и четири емпирични проучвания на договори и договорни отношения в българското селско стопанство посветени на: ефекта на субсидиите върху рентата на земеделска земя; регионалните аспекти на договорите за биологично и конвенционално земеделие; ролята и влиянието на дигиталния маркетинг в агробизнеса; и очакваните ефекти от Зелената сделка на Европейския съюз върху земеделието.
... Balakrishnan & Wernerfelt (1986); Harrigan (1986); Robertson & Gatignon (1998) в изследванията си имат предвид договорите, които са характерни със съвместното споделяне и управление на ресурсите и както и управлението на common property (Dwyer & Oh, 1988;Sauvée, 1997Sauvée, :2002. ...
Книгата представя резултатите от първи етап на научноизследователския проект „Структура и управление на договорните отношения в селското стопанство на България“, финансиран от Селскостопанска академия и разработван от Институт по аграрна икономика.
Анализът на аграрните договори и договорните отношения в селското стопанство е в центъра на анализа на редица научни дисциплини, като политическа икономия, икономика, право, мениджмънт, социология и т.н. В другите страни съществуват многочислени теоретични и емпирични икономически изследвания, свързани с договорите в аграрната сфера, техните типове, форми, фактори, ефекти и т.н. В България икономическите анализи на аграрните договори и договорни отношения са единични (определен тип договор, като покупка или аренда на земеделска земя; формални и
регистрирани договори и т.н.), епизодични и в начален етап на развитие.
В книгата се адаптират постиженията на интердисциплинарната Нова
институционална икономика и се представят теоретико-методологическите въпроси на икономическото изучаване на аграрните договори. На тази основа е разработен холистичен подход за дефиниране, класификация, оценка и усъвършенстване на договорите и договорните отношения в българското селско стопанство.
Най-напред е направен критичен анализ на съвременното развитие на
икономиката на договорите, организациите и институциите посредством проучване на литература, официални документи и управленческа практика в аграрната сфера на развитите страни и България. Откроени са особеностите на икономическото изучаване на аграрните договори, в сравнение с чисто юридическия подход в тази област.
След това се представя „нов“ подход за икономически анализ, оценка и
усъвършенстване на аграрните договори в страната, който включва следните елементи:
(1) икономическо дефиниране на аграрните договори и характеризиране на
тяхното място в системата на аграрен гавърнанс (управление) като двустранни или многостранни споразумения, свързани със селскостопанското производство и услуги;
(2) икономическа характеристика на агентите, участници в договорните
отношения (интереси, степен на информираност, степен за поемане на риск, капацитет, тенденция към опортюнизъм и др.);
(3) икономическа характеристика на различните типове аграрни договори (за
покупко-продажба, наем на труд и ресурси, услуги, заем, застраховане, маркетинг, коалиране и т.н.);
(4) икономическо характеризиране на процеса на аграрно договаряне
(технологични, транзакционни, институционални и т.н. фактори за управленчески избор);
(5) икономическо характеризиране на резултата от договорния процес и
доминиращия управленчески ред в аграрната сфера (право на закона, право на сила, договорна структура и т.н.);
(6) характеризиране на етапите за усъвършенстване на аграрните договори и
управление (идентифициране на проблеми и провали на пазар, частно договаряне и обществени форми; нужди и форми на нова обществена интервенция и т.н.);
(7) идентифициране на нужди и източници на нова информация за анализ и оценка на аграрните договори.
След това се представят резултати от четири емпирични проучвания на договори и договорни отношения в българското селско стопанство, посветени на: ефекта на субсидиите върху рентата на земеделска земя; регионалните аспекти на договорите за биологично и конвенционално земеделие; ролята и влиянието на дигиталния маркетинг в агробизнеса; и очакваните ефекти от Зелената сделка на Европейския съюз върху земеделието.
Накрая са представени обобщаващи изводи, свързани с икономическото изучаване на аграрните договори и се набелязват насоките за бъдещи изследвания в тази „нова“ за страната област.
Книгата представлява интерес за широк кръг от читатели – научни работници,
преподаватели, студенти, мениджъри на земеделски стопанства, агро-фирми и
кооперации, ръководители и специалисти на държавни, международни и професионални организации, инвеститори, политици, групи по интереси и широката общественост.
Авторският колектив е изключително благодарен на Кремена Горчева за
висококачествената и професионална редакция и техническото оформяне на книгата.
... Participation Dwyer and Oh (1988) define 'participation' (as a construct) in decentralized organizations as the level of involvement that relational parties have in the decision-making processes of the partnership. This involvement encompasses various inputs, such as idea generation, direct participation in decision-making, and the formulation of joint goals and objectives. ...
The relationship between relational governance mechanisms and multi-unit franchising, where a single franchisee owns and operates multiple units, has received limited attention in the existing literature. Previous studies primarily focus on the role of trust in such arrangements. Consequently, this study aims to develop and test a theoretical model that explores the association between a higher allocation of units to this type of franchisee and key attributes of relational governance, such as participation and communication. Adopting the franchisors’ perspective, our sample consists of 170 networks affiliated with the Brazilian Franchising Association (Associação Brasileira de Franchising [ABF]), and data were collected from various sources, including a self-administered questionnaire (based on data from 2018). The results provide support for our general hypothesis, indicating a positive association between relational aspects of the franchisor-franchisee partnership and a higher proportion of units owned by multi-unit franchisees. Additionally, we find that the operational sector (retail/service) and specific local investments diminish the explanatory power of the model’s variables related to relational governance, suggesting a secondary influence on the decision-making process concerning the contractual mix.
Keywords:
multi-unit franchising; relational governance; contractual mix; trust
... Sample items of this scale are "It would make me feel good to be a person who has these characteristics. (Internalization)" and "The fact that I have these characteristics is communicated to others by my membership in certain organizations (Symbolization) finally, Employees' Opportunistic Behaviors was assessed by using 6 items depending on original scale that developed by Dwyer and Oh (1988) that Adopted later by Ping (1993) and Joshi and Stump (1999) .Each one of the respondents was asked to state his Owen level of agreement on a fivepoint Likert scale (started from 1=strongly disagree to 5=strongly agree). We use the back-translation method for preparing an Arabic version of the mentioned questionnaire. ...
This paper aims to examine the nature of the relationship between Machiavellian leadership perception and employees' opportunistic behaviors, with the moderating role of moral identity. The study was conducted over a two years period, in which, a simple random sample was used with 295 questionnaires distributed on the employees of different service industries in Bahrain. Descriptive analysis, Simple and multiple regressions were used to analyze the data and test the hypotheses. The main results of the study indicate that there is a significant positive effect for Machiavellian leadership perception on employees' opportunistic behaviors. They also indicate significant negative effects for both Internalization Moral Identity and Symbolization Moral Identity on employees' opportunistic behaviors. Furthermore, the results show a partially moderating role for Internalization Moral Identity on the relationship between Machiavellian leadership perception and employees' opportunistic behaviors. They also confirm a fully moderating role for Symbolization Moral Identity on the relationship between Machiavellian leadership perception and employees' opportunistic behaviors.
... Formalization is the degree to which procedures and rules are explicitly formulated for governing activities (Dyer and Song 1998;Schminke et al. 2000;Dwyer and Oh 1988;Pertusa-Ortega et al. 2010). It works as a coordination mechanism to support control (Schul and Babakus 1988) and facilitates the decision-making process, offering predefined responses to various situations. ...
The purpose of this paper is to analyze how different configurations of network governance influence the performance of member firms. To achieve this objective, we surveyed 338 Brazilian firms participating in strategic networks (SNs). We addressed our research question by employing cluster analysis and the Kruskal–Wallis test. We focus the literature review on formal and relational governance of SNs and their interplay. We found three clusters that illustrate different configurations of governance. One cluster is characterized by relatively high levels of formal and relational governance in small and young SNs. A second cluster is characterized by low levels of formal governance and relatively high levels of relational governance, but surprisingly in larger and older SNs. The third cluster is characterized by relatively low levels of formal and relational governance in small and young SNs. Our main results illustrate different configurations of governance of SNs. Small and young SNs that combined high levels of formal and relational governance also present the highest levels of firm performance. Surprisingly, larger and older SNs followed a governance configuration based on high levels of relational governance and low levels of formal governance. These findings direct to new configurations of network governance that are controversial to existing literature and also offer managerial contributions. We contribute to the debate about formal and relational governance by adding two new variables to the analysis—network size and network age. Results show that SNs with different size and age may adopt distinct governance configurations.
... Mobile payment services have the potential for financial inclusion in developing economies [65]. And Wamariya & Loebbecke [59] proposed that mobile payment (m-pay) has always been the main driving force for the social and economic development of emerging markets. ...
The technology of mobile payments has received more attention than ever. However, whether it is possible that mobile payment will become a common payment method for consumers depends on the willingness of consumers. This study focuses on the intention from cash payment to mobile payment and adopts a qualitative and quantitative approach based on the theoretical structure of the Transaction Cost & the Push-Pull-Mooring Migration Model of Service Switching. Firstly, the Delphi Method was applied to extract three push variables (perceived trouble, perceived lack of transaction records, and difficulty of paying large amounts in cash) and three pull variables (perceived convenience, perceived benefit, and perceived time-saving). After surveying 586 samples, this proposed model was tested with a structural equation modeling approach. Results: 1. the pull facet tends to be more significant than the push facet. 2. Perceived trouble had a significant effect on push factors, while perceived convenience and perceived benefit had a significant effect on pull factors. 3. Push-&-pull factors had significant effect on behavior of gender-&-age. And the-transaction-costs can divide into positive-transaction-costs and negative-transaction-costs after incorporating the Push-Pull-Mooring theory.
... Scott (1987, p.33) defined formalisation as: "…the degree to which rules prescribing behaviour are formulated, as well as the extent to which role responsibilities are prescribed." Formalisation may include written contracts to regulate the conduct of business partners (Dwyer and Oh, 1988). Such contracts are legally enforceable agreements, which can help in balancing power where a relationship was otherwise dominated by one partner. ...
... which critical, often proprietary, information is communicated within team(Huber and Daft, 577 1987) and; participation refers to the extent to which team engage jointly in planning and goal 578 setting(Dwyer and Oh, 1988) which leads to co-operative efforts. The ability of the project team 579 members to imbibe these three communicating behaviours would enable them to promote 580 actions devoid of conflict and ultimately handle the challenges of innovation adoption in represents 9.71% of the total variance in the factor analysis. ...
Despite the enormous literature on how team conflicts can be managed and resolved, this study diverges, by examining factors that facilitate conflict prevention culture in project teams, especially when introducing Big Data Technology. Relying on findings from relevant literatures and focus group discussions, 28 attributes for embedding conflict prevention culture were identified and put together in questionnaire survey. Series of statistical tests including reliability analysis and exploratory factor-analysis. The results identified five critical success factors for entrenching the culture of conflict prevention in project teams introducing big data driving innovations. The five-factor solution include “building effective relationship”, “effective project communications”, “project team efficacy”, “pro-active conflict management approach” and “effectual project documentation”. Result of this study presents a Conceptual framework for effective management of human resource in relation to conflict prevention among project teams, as an effective strategy for facilitating seamless adoption and diffusion of big data innovation in organisations.
... Norms are applicable to our context as they can develop as early as the search and trial phase of the relationship (Dwyer et al., 1987). Consistent with prior research (Dwyer and Oh, 1988;Heide and John, 1992;Jap and Ganesan, 2000) we consider the three norms of information exchange, flexibility, and solidarity that are relevant to enforcing obligations, promises, and expectations (e.g. Poppo and Zenger, 2002) and thereby enhance collaboration. ...
Purpose
This paper aims to consider the impact of contractual and normative governance mechanisms on recommendation intent in a context of healthcare and professional lighting where repeat business from a customer is absent. The authors suggest both contractual and normative governance can create recommendation intent, but only when sufficient customer value is created.
Design/methodology/approach
The authors draw on a combination of survey and archival data from the supplier and customer in the medical equipment and advanced (business) lighting systems industries. The authors analyze the data using seemingly unrelated regression and mediation tests.
Findings
Contracts and relational norms can increase customer recommendation intent, but only when the supplier creates customer value.
Practical implications
The paper’s findings suggest that customers of business solutions are more likely to recommend their supplier when contracts are relatively detailed and when buyers and suppliers attempt to craft strong relational norms, despite service solutions being delivered during a relatively short time span.
Originality/value
The extant research on business solutions has focused on extended relationships between exchange partners with a high likelihood of repeated transactions. The authors demonstrate how to govern relationships in a solutions context where the likelihood of repeat business from the same customer is low using contractual and normative governance.
... In cases where we do not have an open market, the number of providers of accounting services is small and they can behave opportunistically (i.e., the quality of accounting services provided by them is reduced). In order to reduce their opportunism, their work must be further monitored and checked, strengthened by a contractual relationship, which automatically increases transaction costs (Dwyer & Oh, 1988). In such situations, the company will significantly reduce transaction costs by replacing external agencies that perform accounting services (suppliers) with their own employees because their behavior can be more effectively monitored, controlled, the quality monitoring business performance through accounting will be improved through reduced possibilities for error. ...
... Scott (1987, p.33) defined formalisation as: "…the degree to which rules prescribing behaviour are formulated, as well as the extent to which role responsibilities are prescribed." Formalisation may include written contracts to regulate the conduct of business partners (Dwyer and Oh, 1988). Such contracts are legally enforceable agreements, which can help in balancing power where a relationship was otherwise dominated by one partner. ...
... Consequently, there would be no necessary correspondence between institutional form and the use of controls. Dwyer and Oh (1988) find similar evidence in their study of channel dyads. ...
Many marketing exchanges are characterized by an information asymmetry between suppliers and customers. Specifically, customers are faced with both adverse selection and moral hazard problems that involve, respectively, uncertainty about supplier characteristics and the risk of quality cheating. Drawing on prior research, the authors propose that agency problems in a customer relationship can be resolved by means of customer bonds and price premiums, which serve as signals and supplier incentives, respectively. The authors also propose that adverse selection and moral hazard problems exist in relationships between suppliers and their employees. Similar to the customer relationship, these problems can be addressed with signals and incentives of various kinds. The authors present hypotheses regarding the agency problems in both of these relationships and test them empirically in the context of automotive service purchases. Data obtained from 287 service managers support the hypotheses. The data also suggest that institutional differences across service outlets (e.g., ownership structure and size) influence how the two types of agency problems are managed.
... Transaction cost analysis and relational contracting were developed to complement classical contracting theory. Furthermore, because legal bonds are formal arrangements, they reflect some aspects of the formalization concept adapted from the organization science literature and applied to studies of marketing channels (e.g., Dwyer and Oh 1988;Reve and Stern 1986). ...
During the past decade, marketing managers and scholars have focused increased attention on buyer–seller relationships in business markets. This article contributes to the emerging body of knowledge in this important arena. Building from theories of relationships and empirical research across several disciplines, the authors specify six key underlying dimensions (connectors) that characterize the manner in which buyers and sellers relate and conduct relationships. Measures for these relationship connectors (information exchange, operational linkages, legal bonds, cooperation, and relationship-specific adaptations by buyers and sellers) are developed in a series of pretests. Then, on the basis of relationship profiles for more than 400 buyer–seller relationships sampled from a wide array of industries and market situations, the authors apply numerical taxonomy to develop an empirically based classification of different types of business relationships. Contrary to approaches used in much of the extant literature, taxonomic methods do not rely on an assumption that the connectors are highly intercorrelated or that they combine in some linear fashion to form a single underlying dimension. Furthermore, the research specifies antecedent market and purchase situations and shows that they affect when specific types of relationships are used. The research also shows how customer satisfaction and evaluations of supplier performance vary across different types of relationships. The results provide new insights about the nature of relationships in business markets.
... Yet, casual observation shows that competing firms in the same product market demonstrate stark differences in undertaking similar activities. For instance, in the retail hardware industry, Dwyer and Oh (1988) find that retailers using different downstream positioning strategies exhibit systematic differences in upstream channel structures. Why do firms operating in the same industry demonstrate such sharp differences? ...
The authors extend transaction cost analysis into a governance value analysis (GVA) framework to address marketing strategy decisions, especially with regard to strategies grounded in cooperative relationships. The GVA is a four-part model. Heterogeneous resources, positioning, the consequent attributes of exchange, and governance form all interact to determine success in creating and claiming value. The trade-offs among these factors are the core insight offered by the model. The authors illustrate these trade-offs and specify empirically refutable implications. Finally, they sketch directions for future work and a blueprint for managerial decision making.
... The range of levels of integration includes the following (e.g., Brown 1981;Dwyer and Oh 1988;Etgar 1976b;Klein, Frazier, and Roth 1990): First, representing a lack or absence of integration, parties in conventional or independent channel relationships include relatively autonomous members and rely on market mechanisms such as price to administer exchange. Parties in these market-based exchange relationships retain complete latitude over their own decisions and, for the most part, are completely autonomous. ...
Governance strategies, such as integration or control, structure and regulate the conduct of parties in exchange relationships; as such, they serve to constrain the latitude of the decision making of channel partners. Similarly, collaborative communication can be used to create an atmosphere of mutual support, thereby creating volitional compliance between partners. The authors develop a model that addresses the interrelationships of governance and communication and examine the effects of collaborative communication on channel outcomes (the dealer's perceptions of commitment to, satisfaction with, and coordination of activities with a focal manufacturer) across various levels of integration and control. Based on survey data collected from a national sample of computer dealers, the findings indicate that when levels of integration or manufacturer control are high, the effect of collaborative communication on outcomes is weaker than when integration or control is low.
... The investments in adaptations correspond closely to the concepts of idiosyncratic investments and asset specificity in the transaction cost approach (Williamson 1979). Several researchers have used those concepts in explaining governance structures in marketing (Anderson and Weitz 1986;Dwyer and Oh 1988;Heide and John 1988;Jackson 1985). Other scholars have suggested agency theory as an appropriate tool for analyzing dyadic relations (Eisenhardt 1989). ...
On the basis of social exchange theory and the resource-dependence model, a structural model of interfirm adaptation is formulated. The model accounts for mutual adaptation as a consequence of trust-building as well as for unilateral adaptation due to imbalanced dependence between the parties. The view that interfirm adaptations are elements in a social exchange process is supported.
... In addition to centralisation of decision making, formalisation may also have an impact on entrepreneurs' social capital. Formalisation is the degree to which procedures and rules are explicitly formulated for governing activities (Dyer and Song, 1998;Schminke et al., 2000;Dwyer and Oh, 1988). It works as a coordination mechanism to support control (Schul and Babakus, 1988) and facilitates the decision-making process, offering pre-defined responses to various situations. ...
The literature on business cooperation and small-firm networks (SFNs) is silent regarding the effects of governance on relational variables such as entrepreneurs' social capital. Based on this assumption, we analysed how the governance mechanisms of SFNs influence the social capital of participant entrepreneurs. The research was based on a survey involving 212 firms from 49 different Brazilian SFNs. Results show that governance mechanisms of SFNs influence both the individual dimensions of the entrepreneurs' social capital (structural, relational and cognitive) and the aggregated variable. Centralisation of decision making is the main governance mechanism that negatively influences social capital. Our paper contributes to theory by showing how the design of governance mechanisms in SFNs affects social relations and the entrepreneurs' social capital. The study also provides network managers with practical insights on how to govern SFNs in order to make the cooperation effective and avoid negative effects on members' social capital.
... In aggregate, we 3Because our objective is to provide a review of TCA articles that address issues of interest to marketing scholars, studies that are concerned mainly with social (e.g., Treas 1993) or political institutions (e.g., Hennart and Anderson 1993), as well as those that focus on intraorganizational governance (e.g., Balakrishnan and Fox 1993), are not included here. Moreover, studies that draw on TCA reasoning but do not directly test TCA's framework (e.g., Dwyer and Oh 1988;Phillips 1982,) are not included. Finally, we omit case studies (e.g., Goldberg and Erickson 1987), as well as extensions of prior work that do not add new theory or data (e.g., Joskow 1990). ...
Over the past decade, transaction cost analysis (TCA) has received considerable attention in the marketing literature. Marketing scholars have made important contributions in extending and refining TCA's original conceptual framework. The authors provide a synthesis and integration of recent contributions to TCA by both marketers and scholars in related disciplines, an evaluation of recent critiques of TCA, and an agenda for further research on TCA.
... When one partner"s actions influence the ability of the other to effectively compete, the need for participation in specific roles, responsibilities and expectation increases ( Anderson et al., 1987). Dwyer and Oh (1988) suggest that input to decisions and goals formulation are important aspects of participation that lead to partnership success. Participation in planning and goal setting has been found to be key predictors of success in dealer-supplier relationships (Mohr & Spekmam, 1994;Olson & Singsuwan, 1997). ...
Communication plays a vital role to all functions of organizations and specifically to all businesses. Its
importance cannot be over-emphasized; everything a manager does involve communication, which takes place a
large part of a managers‟ time in managing an organization. There is a lack of empirical research investigating
the relationship between communication and international joint venture performance. The objective of this
study is to investigate the moderating effect of environmental dynamism on communication and performance of
Malaysian international joint ventures abroad. The focus is on Malaysian companies listed with the Malaysian
Bourse that come from various industries and have formed joint venture in a foreign country. The data
collections were through a structured mail questionnaire. Factor analyses, Pearson‟s correlation coefficients
were utilized to statistically analyze the data. This paper reports the results of the performance of 117 Malaysian
international joint ventures abroad. The finding indicates that the interaction effect of environmental dynamism
on communication and performance is positively significant. The result of this study has demonstrated that for
Malaysian managers in building successful international joint venture, is to foster and nurture the relationship
through the development of greater level of communication with their partner(s) and the effect of foreign
country environment on the performance of Malaysian international joint ventures.
... Work that examines relationships among channel members (e.g. between dealers), some of which take on communal characteristics, and the organizational structures that bound such relations (e.g. collectives) have received little attention (Dwyer & Oh, 1988). These organizations include independent franchisee/dealer associations, multi-level marketing organizations such as Mary Kay or Tupperware, retailer cooperatives such as Ace Hardware and True Value and farm cooperatives such as Sunkist and Land O′ Lakes. ...
Relations between channel member organizations are not the only relationships of importance in channels research. Significant relationships also exist between channel members and the brands that they represent and sell. Just as in consumer brand relationships, we find that downstream agents co-create the meaning of the brand with which they form relationships. However, unlike consumer brand relationship models that often conflate brand and company, treating them as one; we find that brand relationships in a B2B setting are independent and distinct from the relationships formed between downstream agents and the owners and/or managers of the brand. These particular brand relationships are complicated by the high switching costs associated with long term investments. The findings from a four-year multi-method research project, including ethnographic and survey data, point to the salience of these brand relationships and their importance to channel management. We find that perceived stability of the corporate channel partner, as well as perceptions of overlap between the corporate identity and that of the brand, are key antecedents of the downstream channel members' relationship with the corporation.
... Indeed, as explained by the transaction cost economics (TCE) perspective (Williamson, 1986), when the competitive advantage of a firm is based on knowledge of tacit nature, the market mechanisms in charge of knowledge transfer fail because of the assumption of opportunism. This is why it becomes crucial to adopt rigid forms of control that increase the cost of the transaction (Dwyer and Oh, 1988). ...
... Indeed, as explained by the transaction cost economics (TCE) perspective (Williamson, 1986), when the competitive advantage of a firm is based on knowledge of tacit nature, the market mechanisms in charge of knowledge transfer fail because of the assumption of opportunism. This is why it becomes crucial to adopt rigid forms of control that increase the cost of the transaction (Dwyer and Oh, 1988). ...
... In addition to centralisation of decision making, formalisation may also have an impact on entrepreneurs' social capital. Formalisation is the degree to which procedures and rules are explicitly formulated for governing activities (Dyer and Song, 1998;Schminke et al., 2000;Dwyer and Oh, 1988). It works as a coordination mechanism to support control (Schul and Babakus, 1988) and facilitates the decision-making process, offering pre-defined responses to various situations. ...
The literature on business cooperation and small-firm networks (SFNs) is silent regarding the effects of governance on relational variables such as entrepreneurs' social capital. Based on this assumption, we analysed how the governance mechanisms of SFNs influence the social capital of participant entrepreneurs. The research was based on a survey involving 212 firms from 49 different Brazilian SFNs. Results show that governance mechanisms of SFNs influence both the individual dimensions of the entrepreneurs' social capital (structural, relational and cognitive) and the aggregated variable. Centralisation of decision making is the main governance mechanism that negatively influences social capital. Our paper contributes to theory by showing how the design of governance mechanisms in SFNs affects social relations and the entrepreneurs' social capital. The study also provides network managers with practical insights on how to govern SFNs in order to make the cooperation effective and avoid negative effects on members' social capital.
... In social psychology studies, researchers use similarity-attraction theory (Schneider, 1987) to explain the effect of similarity in values on relationship quality and other outcomes. In marketing field, Dwyer and Oh (1988) demonstrated the importance of goal congruence between channel members on commitment. Zhang and Bloemer's (2008) study was the first to clearly point the concept of value congruence in marketing field. ...
Promotion represents the most crucial element of the marketing mix for
acquiring and retaining customers. However, the promotion strategy needs
to be carefully formulated and implemented as various promotional cam-
paigns have varying outcomes ranging from the creation of awareness about
the product, attracting customers to retail outlets, and demonstration of the
products by the salespeople. The study empirically explores the promotional
capability of retailers on the basis of the data obtained from customers and
retailers through the questionnaires. With the dyadic approach and cross-
validation, there can be more lucidity about the nature and extent of the
promotional capability of retailers. The findings indicate that retailers apply
advertising and sales promotion to present their brands and attract custom-
ers by offering huge discounts, coupons, gifts, vouchers, and extra benefits
for increasing their sales and margins. The findings of the study provide
implications for retailers, customers, researchers, and decision-makers
Large government projects involving public–private collaborations inherently suffer from setbacks such as delays, cost overruns, or failure to meet contracted performance. Such setbacks may effectively be addressed through adjustments to contractual and relational governance; yet to date, the dynamics of governance adjustments and their interplay in addressing setbacks is not well understood. This research presents a dynamic theory of how parties can effectively address project setbacks through adjustments to contractual and relational governance. The dynamic theory was generated using longitudinal case data from two large public–private projects in the Netherlands that faced comparable project setbacks but deployed opposing governance adjustments, leading to drastically different project outcomes (i.e., collapse vs. recovery). This theory was then elaborated through two more cases and evidence from the literature. A system dynamics simulation model was then built that reproduces the different governance adjustments and outcomes observed in the four projects and serves to extend theory building. The refined theory not only shows under what conditions adjustments to contractual or relational governance are most effective, but also that governance adjustment interplay may trigger unintended side effects. As such, the theory explains why the careful balancing of governance adjustments is critical to project outcomes.
The recent accession of Saudi Arabia to the World Trade Organization (WTO) will increase the country's participation in world trade and the Saudi market attractiveness to Foreign Direct Investment (FDI). As the opportunities for international trade grow, managers from across the globe, including those from the US will be engaged in negotiating with their Saudi counterparts. Owing to the cultural differences between these two countries, the need to understand how culture may affect various individual characteristics such as idealism, relativism, opportunism, and Machiavellianism and managers’ perceptions of unethical negotiation practices becomes very prominent for successful business negotiations. The present study assists in this endeavor. Specifically, this study compares managers from the two countries on their individual characteristics and also contrasts their impact on managers’ perceptions of various unethical negotiation tactics. Based on the data consisting of 259 US and 198 Saudi managers, the study findings suggest that managers across these two countries exhibit significant differences in their individual characteristics. Further, we also show that these characteristics have differential effects on managers’ perceptions of unethical negotiation tactics across the two countries. We highlight study contributions and also provide implications for the development of negotiation strategies capable of enhancing Saudi and US firms' competitiveness.
Adopting an IMP (Industrial Marketing and Purchasing) approach the book uncovers the how to create value in marketing channels. Empirical setting is the furniture industry and three comparative cases are presented.
The authors advance a conceptual model of channel member satisfaction that distinguishes between economic and noneconomic satisfaction. The resulting model then is tested using meta-analysis. Meta-analysis enables the empirical investigation of a model involving several constructs that never have been examined simultaneously within an individual study. More specifically, the authors unify the stream of research on power use—the focus of many satisfaction studies in the 1970s and 1980s—with more recent work on trust and commitment, which usually explores antecedents other than power use. The results indicate that economic satisfaction and noneconomic satisfaction are distinct constructs with differential relationships to various antecedents and consequences. Furthermore, this study demonstrates that satisfaction is both conceptually and empirically separable from the related constructs of trust and commitment.
Purchasing arrangements for repetitively used industrial supplies assume many different forms. Drawing on transaction cost analysis, the authors advance a conceptual framework that organizes these arrangements along a continuum of relationships. They use data from a survey of 140 OEM purchasers of bearings to demonstrate that performance in terms of acquisition costs is enhanced when, under conditions of uncertainty, firms introduce more relational elements into their purchasing arrangements. Possession cost performance improved when larger volumes of bearings were purchased. Implications for theory and practice are discussed.
The authors report the results of a study that examines retailer participation in manufacturer-sponsored promotion programs. Two particular aspects of participation are studied, namely, (1) retailer agreement to participate in point-of-purchase programs and (2) retailer compliance with established agreements. Previous research in marketing, economics, sociology, and organization theory suggests that participation is influenced by two types of variables. The first is the nature of the interpersonal relationship that exists between the boundary personnel in the retailer's and manufacturer's firms. The second are various organization-level variables, including incentive premiums (promotional allowances) and monitoring efforts. The authors extend previous research by examining both the independent and joint effects of these factors on retailer participation. On the basis of an empirical study involving a conjoint task, the authors show that the presence of a strong interpersonal relationship does not diminish the importance of other variables, such as incentives. Within the limits of the conjoint task, the results also suggest that interpersonal relationships are less important determinants of participation than economic incentives. The authors discuss the implications of the study for marketing theory and practice.
La franchise se définit comme "un système de commercialisation de produits et/ou de services" (Code de Déontologie). Trois éléments essentiels la caractérisent avec la fourniture d'une enseigne et de signes de ralliements de la clientèle, la transmission de savoir-faire et une assistance continue tout au long du contrat. Le franchiseur concède au franchisé le droit d'exploiter un concept avec l'obligation pour ce dernier de respecter l'ensemble des règles et procédures mises au point part le franchiseur. Cette relation inter organisationnelle présente un intérêt particulier pour la problématique du contrôle du fait de deux caractéristiques importantes l'indépendance juridique et financière des parties et l'interdépendance économique. Notre thèse porte sur l'étude du contrôle et son évolution tout au long de la relation de franchise. Une étude exploratoire nous a permis de proposer un modèle global et dynamique du contrôle reposant sur un séquençage de la relation en quatre phases et sur la mise en ?uvre d'un contrôle pluriel. Dans une optique confirmatoire, nous avons réalisé une double enquête quantitative auprès de franchiseurs et franchisés de réseaux de franchise de service. Les résultats montrent l'existence d'une dynamique du contrôle tout au long de la relation avec un contrôle de conformité des opérations qui décroit au fur et à mesure de l'acquisition et la maitrise des savoir-faire, un contrôle d'efficacité de l'exploitation qui s'oriente vers une recherche d'efficience par la fourniture d'outils de gestion et un contrôle social qui se développe par une intégration progressive des franchisés dans la vie du réseau
La thèse porte sur les coûts et bénéfices de la puissance d'achat des distributeurs dans la grande distribution. La puissance d'achat est source d'efficacité quand elle offre prix compétitifs et variété des produits au consommateur mais elle peut distordre la concurrence entre fournisseurs et augmenter le pouvoir de marché des distributeurs. Dans le chapitre 1, l'inflation des marques nationales qui a suivi les réglementations de 1996 est expliquée par le comportement des distributeurs. L'entrée sur le marché du maxidiscompte et le positionnement tarifaire des marques de distributeurs n'ont pas suffi à freiner cette évolution. Le chapitre 2 est une étude de cas portant sur les réseaux de distribution français, menée au moyen de la théorie des coûts de transaction. La coexistence de groupes intégrés et de coopératives d?indépendants tient à des degrés de spécificité des actifs différents. Le positionnement stratégique en prix des coopératives d'indépendants est expliqué par la gouvernance des centrales d'achat au moyen du tiers-temps, qui économise des coûts de transaction. Un modèle de mise en oeuvre du droit est proposé dans le chapitre 3. Le distributeur sanctionne les fournisseurs pour les dommages subis. La dissuasion est en général excessive quand le distributeur utilise des quasi-sanctions monétaires et/ou non monétaires. Une analyse empirique de la production des marques de distributeurs, dans le chapitre 4, montre que le distributeur choisit les producteurs nationaux en cohérence avec sa stratégie de marque. De plus, les distributeurs préfèrent les producteurs nationaux quand leur pouvoir de négociation est faible et que les alternatives PME sont nombreuses.
This research article aims at providing a comprehensive overview of the Partner Relationship Management (PRM) domain through an exhaustive literature survey. Current scenario, definitions/perspectives, breakdown of studies by nation, PRM as a software application, the need for PRM, the process of developing partner relationships, and major models, along with major defining constructs and other major insights, have been summarized in the area of partner relationship management using content analysis. The focus is on bridging the gap in the existing academic literature by providing a comprehensive compilation of partner relationship management literature inclusive of B2B and B2C scenarios for future researchers. A list of select premier academic databases has been used to identify the relevant research papers in the domain. This article will help in reducing the time and efforts of researchers by quickly providing a comprehensive view of the PRM literature.
This chapter explains the various interdependencies between market-oriented company planning, market-oriented business unit planning and marketing mix planning.
La nalidad de esta investigación es proporcionar una propuesta metodológica para el análisis del impacto que tiene la globalización comercial en la internacionalización de las empresas mexicanas; las cuales, aprovechándose de la política comercial aperturista de México, a través del multilateralismo y el regionalismo, han incrementado su presencia en los mercados internacionales. A través del método de investigación estadístico descriptivo, se analizará el aumento en la internacionalización de las empresas mexicanas, el impacto de los inversionistas extranjeros y las principales multinacionales en la libre competencia, situación que obliga a las empresas mexicanas a centrarse en la innovación y el desarrollo, en adoptar procesos productivos más competitivos, así como una mejora en su organización interna.
This study develops theoretical hypotheses that have been primarily inspired by relations between private firms. These hypotheses are subsequently tested with data on buyer-supplier relationships in the US automobile industry. Some of the concepts used however are fairly general and may well be applicable to relations in the public sector, such as relations between government institutions, or between politicians and civil servants.
The political economy framework illuminates interplay between the internal and external sociopolitical and economic forces of marketing channels. Framing the collection and analysis of data from retailer informants on channel environments, configuration, and decision structure, a theoretical model is developed for explaining interorganizational responses to uncertainty and dependence constraints of the channel environment. Heterogeneity is hypothesized to precipitate complex and fluid channel structures as a means of coping with uncertainty. In contrast, high levels of variability in the output environment are expected to foster vertical integration and bureaucratization as a means of reducing dependence. Support for both hypotheses is reported and implications for future research are discussed.
Evaluating organizations according to an efficiency criterion would make it possible to predict the form organizations will take under certain conditions. Organization theory has not developed such a criterion because it has lacked a conceptual scheme capable of describing organizational efficiency in sufficiently microsopic terms. The transactions cost approach provides such a framework because it allows us to identify the conditions which give rise to the costs of mediating exchanges between individuals: goal incongruence and performance ambiguity. Different combinations of these causes distinguish three basic mechanisms of mediation or control: markets, which are efficient when performance ambiguity is low and goal incongruence is high; bureaucracies, which are efficient when both goal incongruence and performance ambiguity are moderately high; and clans, which are efficient when goal incongruence is low and performance ambiguity is high.
Previous analysis of marketing organization has focused on the coordination of marketing activities and on organizational forms used to accomplish this, while ignoring the organization of marketing tasks at the work unit level. This article develops a contingency approach to the structure and performance of marketing activities at the work unit level, as well as higher levels within organizations, by blending the theoretical implications of traditional organization theory and transaction cost economics. Four propositions are developed to explain the effectiveness, efficiency, and adaptiveness of various marketing organizational structures. In addition, four basic structures of marketing organization are also explored.
This paper presents a unifying framework for the analysis of distribution channels which encompasses both economic and sociopolitical determinants of channel member behavior and provides a suitable departure point for comparative work. The framework integrates present approaches to the study of marketing channels and provides an essential, but heretofore missing, basis for comprehensive empirical research in the area.
Discusses the paradoxical discrepancy involved in the statistical calculation of the percentage of variation in batting performance that is attributable to skill differentials among major-league baseball players, which is discrepant with intuitions about the influence of skill in batting performance. This discrepancy is discussed in terms of habits of thought about variance explanation. It is argued that percentage variance explanation is a misleading index of the influence of systematic factors in cases where there are processes by which influences cumulate to produce meaningful outcomes. (6 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
A channel of distribution consists of different channel members each having his own decision variables. However, each channel member's decisions do affect the other channel members' profits and, as a consequence, actions. A lack of coordination of these decisions can lead to undesirable consequences. For example, in the simple manufacturer-retailer-consumer channel, uncoordinated and independent channel members' decisions over margins result in a higher price paid by the consumer than if those decisions were coordinated. In addition, the ensuing suboptimal volume leads to lower profits for both the manufacturer and the retailer.
This paper explores the problems inherent in channel coordination. We address the following questions.
—What is the effect of channel coordination?
—What causes a lack of coordination in the channel?
—How difficult is it to achieve channel coordination?
—What mechanisms exist which can achieve channel coordination?
—What are the strengths and weaknesses of these mechanism?
—What is the role of nonprice variables (e.g., manufacturer advertising, retailer shelf-space) in coordination?
—Does the lack of coordination affect normative implications from in-store experimentation?
—Can quantity discounts be a coordination mechanism?
—Are some marketing practices actually disguised quantity discounts?
We review the literature and present a simple formulation illustrating the roots of the coordination problem. We then derive the form of the quantity discount schedule that results in optimum channel profits.
This descriptive study explores the reasons for integration of the personal selling function, i.e., the use of employee (“direct”) salespeople rather than manufacturers' representatives (“reps”). A hypothesized model is developed based on both transaction cost analysis and the sales force management literature. Data from 13 electronic component manufacturers covering 159 U.S. sales districts are used to estimate a logistic model of the probability of “going direct” in a given district. Results are shown to be stable across specification and estimation methods and to fit the data well. The transaction cost model is generally supported. The principal finding is that the greater the difficulty of evaluating a salesperson's performance, the more likely the firm to substitute surveillance for commission as a control mechanism, i.e., to use a direct sales force. Among other findings, direct sales forces are also associated with complex, hard-to-learn product lines and with districts that demand considerable nonselling activities. Several factors prove unrelated, including company size, the amount of travel a district requires, and the importance of key accounts.
Twenty-two decision groups in three manufacturing and three research and development organizations are studied to identify the characteristics of the environment that contribute to decision unit members experiencing uncertainty in decision making. Two dimensions of the environment are identified. The simple-complex dimension is defined as the number of factors taken into consideration in decision making. The static-dynamic dimension is viewed as the degree to which these factors in the decision unit's environment remain basically the same over time or are in a continual process of change. Results indicate that individuals in decision units with dynamic-complex environments experience the greatest amount of uncertainty in decision making. The data also indicate that the static-dynamic dimension of the environment is a more important contributor to uncertainty than the simple-complex dimension.
This research presents both a conceptual and a methodological framework for examining organizational buying behavior from a multiperson level of analysis. Focusing on those organizational members who participate in the procurement decision making process, this research investigates the buying group's adaptive structural configuration in response to varying levels of environmental uncertainty.
The competitive market is eroding. To an increasing degree, transactions are occurring in internal markets within the framework of long-term relationships. The emerging domesticated markets call for more attention to the management of interorganizational systems and to the political aspects of economic decision making.
The authors investigate the effects of the organizational structure used for marketing planning on the credibility and utilization of marketing plans. Data on 53 organizations were obtained from multiple respondents in the marketing areas of those organizations. The results indicate that a bureaucratized planning structure with formal rules and procedures and departmental specialization can enhance both plan credibility and utilization. However, high centralization of authority affected these variables negatively. The explanatory mechanisms suggested by these results are discussed and managerial implications presented.
Key informant reports from both sides of a set of wholesaler-retailer dyads are analyzed to investigate the convergent and discriminant validity of the measures. These measures, derived from a political economy model, describe the structural form and collective sentiments within the dyadic interaction. The results indicate that the structural form measures have convergent and discriminant validity. However, the sentiments variables fail to show adequate validity. The methodological and theoretical implications of the results are assessed.
The author examines the determinants of control loss in the marketing channels of 40 U.S. manufacturers, each of which has vertically integrated into wholesale distribution by the establishment of manufacturers' sales branches. The central hypothesis tested is that the efficiency of a vertically integrated system depends on the adoption of organizational forms which enable the firm to limit the degree of control loss and subgoal pursuit predictably resulting from vertical expansion. Control loss is operationalized in terms of the extent to which the travel and entertainment expenses of branch sales personnel exceed necessary levels. The results demonstrate the important influence of organizational structure and control systems on the efficiency of marketing operations. The findings are interpreted in terms of Williamson's organizational failures framework.
Corporate organization and activities extend beyond conventional ownership limits in a variety of ways. The marketing channel, for example, exerts substantial influence on the firm's internal activities. Organization structure and processes in the corporation information and control systems are affected by channel considerations. Arguments have been raised against attempts by one channel member to direct the efforts of all or part of an interorganizational vertical network. However, most scholars are believed to support the view that some form and degree of leadership is desirable and, at any rate, manifest in many day-to-day exchange activities. This article asks three important questions: Who has the ability to lead channels? Who is in the best position to do so? Who should lead?
Based in part on previous research reported in the marketing channels literature, an approach for measuring interfirm power is developed which centers on power's hypothesized sources. Within a dyadic channel relationship, the role performance of a firm in its primary channel responsibilities is seen to drive the level of the other firm's dependence in their relationship. This dependence, in turn, determines the former firm's level of power over the latter firm. Empirical results from a study in a franchise channel system are used to evaluate the reliability and construct validity of the proposed measures.
A multivariate analysis was used to compare the operational efficiency of administratively coordinated and market coordinated vertical marketing systems. The study proposes nine dimensions where administrative coordination can be superior. The results of the study provide evidence that an administratively coordinated system is indeed superior, especially with regard to streamlining intrasystem activities and decisions.
This paper takes the context of interorganizational behavior as an interorganizational field, within which specific interactions occur. An example of organizational interaction within such a field is presented by the numerous community decision organizations, such as urban renewal authorities, chambers of commerce, welfare councils, and antipoverty organizations, operating in American metropolitan communities. A typology of contexts for inclusive decision making derived from a preliminary study in three cities is used in analyzing interaction among these organizations. In the heuristic model developed, such organizations are considered the community's vehicles for the attemped maximization of specific values which become incompatible, however, when pressed beyond a certain threshold. Based on the analysis of this interorganizational field, suggestions are made for improving the "mix" of realized values which these organizations accomplish in their interaction.
The author examines the determinants of opportunistic behavior in an interfirm relationship. Data from a franchise setting are examined for the effects of interorganizational structure and interfirm influence on attitudes and opportunistic behavior. The results indicate that opportunism is affected by attitudes as well as such factors as interorganizational structure. Theoretical and managerial implications for the analysis of marketing channels are offered.
The scope of research on interorganizational exchange behavior in the marketing channels literature has been very limited, in part because of an incomplete conceptual framework. What is urgently needed is a realistic conceptualization of the process of exchange behavior between organizations within marketing channels. As a first step, this article develops a framework of interorganizational exchange behavior designed to provide channel researchers with a broadened perspective of what research issues need to be addressed in promoting future progress and understanding in the marketing channels area.
The political economy framework for the comparative analysis of marketing channel dyads proposed by Stern and Reve (1980) focused mainly on relationships between channel members. This article extends the political economy framework by indicating how environmental factors (i. e., factors external to a dyad) might influence and affect the structure and processes of the dyad. When combined with the original article by Stern and Reve, the resulting overall perspective should provide a comprehensive basis for theory development and research in the marketing channel area.
The traditional paradigms of marketing are expanding to incorporate negotiated exchanges with internal and external coalitions in the pursuit of competitive advantage. This paper explores the implications of a broader paradigm for setting priorities in research and theory development in strategic marketing. These priorities build on conceptual and methodological strengths within marketing. The perspective taken in this paper also contributes to the continuing dialogue about the appropriate role for the marketing function in addressing strategic issues.
This article presents an institutional, political economy paradigm in marketing as a complement to the presently prevailing microeconomic/marketing management concept. The latter framework provides insufficient tools for analyzing exchange structures and processes within and between organizations. Political economy is proposed as a more appropriate paradigm, as it focuses on authority and control patterns, conflict and conflict management procedures, and external and internal determinants of institutional change.
The meaning of correlated measurement errors is discussed within a hierarchical framework of error terms provided by true score, first-order factor, and second-order factor models: random error, indicator specific error, and group specific error, respectively. Group specific error can be represented either as extraneous first-order factors or as unwanted components of first-order factors that define a second-order factor. The uncritical use of correlated measurement errors without theoretical justification is shown to lead merely to more acceptable fit while obfuscating a more meaningful theoretical structure.