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Do exchange hazards always foster relational governance? An empirical test of the role of communication

Published on Mar 1, 2006in International Journal of Research in Marketing3.32
· DOI :10.1016/j.ijresmar.2006.01.006
Shibin Sheng16
Estimated H-index: 16
(Adelphi University),
James R. Brown28
Estimated H-index: 28
(WVU: West Virginia University)
+ 1 AuthorsLaura Poppo19
Estimated H-index: 19
(VT: Virginia Tech)
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Abstract
This empirical paper explores economic and social origins of relational governance. Previous empirical research has provided substantial support for the positive relationship between exchange hazards (such as transaction specific assets or decision uncertainty) and relational governance. In contrast, we use transaction cost economics to argue that exchange hazards might limit the use of relational governance when power asymmetry exists within a marketing channel. Moreover, from a sociological perspective, a governance mechanism is not determined solely by initial exchange conditions; the process in which the interorganizational exchange emerges and develops also influences it. We argue that the social contact that occurs through inter-organizational communication not only is a critical determinant of relational governance, but it also may moderate opportunism arising from exchange hazards, thus increasing the establishment of relational governance. Overall, the empirical results support our hypotheses.
  • References (84)
  • Citations (45)
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References84
Newest
Published on Jan 1, 2008in Marketing Science2.49
Erin Anderson33
Estimated H-index: 33
(UPenn: University of Pennsylvania)
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 a...
Published on Nov 1, 2003in Industrial Marketing Management4.78
Danny Pimentel Claro10
Estimated H-index: 10
(WUR: Wageningen University and Research Centre),
Geoffrey Hagelaar5
Estimated H-index: 5
(WUR: Wageningen University and Research Centre),
Onno Omta14
Estimated H-index: 14
(WUR: Wageningen University and Research Centre)
Abstract It is the aim of this study to assess the influence of the determinants of the transaction, dyadic, and business environment level on relational governance and ultimately performance. We build an integrated framework for relationship management drawing from literature of transaction cost economics, marketing channels, and business networks. Dutch suppliers of potted plant and flower products ( N =174) provided data for the empirical analysis. Our results show that joint planning, one of...
Published on May 1, 2003in Journal of Marketing Research4.20
Aksel I. Rokkan6
Estimated H-index: 6
,
Jan B. Heide27
Estimated H-index: 27
(NHH: Norwegian School of Economics),
Kenneth H. Wathne9
Estimated H-index: 9
(UW: University of Wisconsin-Madison)
Abstract Specific investments, which are tailored to a particular company or value-chain partner, are important components of firms’ marketing strategies. At the same time, extant theory suggests that such investments pose considerable risk, because they put the receiver in a position to opportunistically exploit the investor. In this article, the authors examine this “expropriation” scenario but also consider whether specific investments, because of their specialized nature, may actually “bond”...
Published on Aug 1, 2002in Strategic Management Journal5.57
Laura Poppo4
Estimated H-index: 4
(Pamplin College of Business),
Todd R. Zenger31
Estimated H-index: 31
(WashU: Washington University in St. Louis)
While transaction cost economists have generally argued that hazardous exchange conditions warrant complex contracts or vertical integration, other scholars have argued that trust or relational forms of governance effectively support exchange. These scholars view relational governance as a substitute for complex, explicit contracts. Indeed, some have suggested that contracts directly undermine the evolution of trust in exchanges. We advance and empirically test the alternative argument that form...
Published on Feb 1, 2001in Journal of Marketing Research4.20
Jonathan D. Hibbard7
Estimated H-index: 7
(BU: Boston University),
Nirmalya Kumar22
Estimated H-index: 22
(International Institute for Management Development),
Louis W. Stern23
Estimated H-index: 23
(NU: Northwestern University)
Abstract In virtually all marketing channel relationships, one of the parties eventually will engage in an action that another channel member considers potentially destructive for the relationship. How a particular channel member reacts to such an act has implications for the long-term viability and success of the relationship. On the basis of a large data set collected from both a focal supplier and its independent dealers, the authors classify dealers’ responses to a supplier’s destructive act...
Published on Jan 1, 2001in Journal of the Academy of Marketing Science9.36
Carolyn Y. Nicholson8
Estimated H-index: 8
(Stetson University),
Larry D. Compeau10
Estimated H-index: 10
(Clarkson University),
Rajesh Sethi12
Estimated H-index: 12
(Clarkson University)
This article explores the important role of liking in the development of the buyer’s trust in the sales rep. The authors argue that liking’s role is richer and qualitatively different from that of the more cognitive antecedents of trust. They posit that many cognitive antecedents of trust operate mainly through liking. They argue that as the buyer-sales rep relationship matures, liking plays an even more important role in influencing trust. The authors empirically test a model delineating the me...
Published on May 1, 2000in Journal of Marketing Research4.20
Sandy D. Jap1
Estimated H-index: 1
(UA: University of Arizona),
Shankar Ganesan14
Estimated H-index: 14
(UA: University of Arizona)
Abstract Powerful suppliers often require retailers to make significant idiosyncratic investments to improve coordination between organizations and to enhance the supplier’s presence in the end market. The authors examine how a retailer might better manage the hold-up potential of these transaction-specific investments (TSIs) through the use of three control mechanisms: supplier’s TSIs, the development of relational norms, and the use of explicit contracts. Moreover, the authors consider the tim...
Published on Apr 1, 2000in Journal of the Academy of Marketing Science9.36
Joseph P. Cannon14
Estimated H-index: 14
(CSU: Colorado State University),
Ravi S. Achrol15
Estimated H-index: 15
(GW: George Washington University),
Gregory T. Gundlach23
Estimated H-index: 23
(ND: University of Notre Dame)
The organization of interfirm exchanges has become of critical importance in today’s business environment. Many scholars have criticized the inadequacies of legal contracts as mechanisms for governing exchange, especially in the face of uncertainty and dependence. Other scholars argue that it is not the contracts per se but the social contexts in which they are embedded that determine their effectiveness. This study investigates the performance implications of governance structures involving con...
Published on Apr 1, 2000in Journal of Marketing7.82
James R. Brown28
Estimated H-index: 28
(VT: Virginia Tech),
Chekitan S. Dev16
Estimated H-index: 16
(Cornell University),
Dong-Jin Lee2
Estimated H-index: 2
(VT: Virginia Tech)
Abstract The authors examine three governance mechanisms according to how well they mitigate opportunism in marketing channels. Using the U.S. hotel industry as the research context, the authors investigate how opportunism is limited by (1) ownership, (2) investment in transaction-specific assets, and (3) norms of relational exchange. They also investigate how various combinations of these governance mechanisms affect opportunistic behavior in hotel channels. Overall, the results generally suppo...
Published on Apr 1, 2000in Journal of Economic Behavior and Organization1.40
Kendall W. Artz11
Estimated H-index: 11
(Baylor University),
Thomas H. Brush15
Estimated H-index: 15
(SPbU: Saint Petersburg State University)
The paper draws on transaction cost and relational exchange theories to develop a model of the determinants of coordination costs in a collaborative contractual alliance. While some empirical research has examined certain dimensions of alliance performance, almost no studies have attempted to evaluate alliance performance by directly examining exchange costs. Data examining 393 original equipment manufacturer (OEM) supplier relationships that are governed by relational contracts found support fo...
Cited By45
Newest
Published on Aug 24, 2018in Sustainability2.59
Shaoling Fu1
Estimated H-index: 1
,
Hua Liu + 3 AuthorsWene Qi
Improving the quality of agricultural products is the key factor in promoting agricultural development in the Belt and Road program. Although many studies have investigated the relationship between social capital and performance, the findings are inconsistent. Moreover, the mechanism of how social capital affects the quality performance of agricultural products remains unclear. Accordingly, this study developed a theoretical model with propositions from a social capital-quality performance of ag...
Published on Jun 11, 2018in Industrial Management and Data Systems3.73
Shaoling Fu1
Estimated H-index: 1
(SCAU: South China Agricultural University),
Zhiwei Li1
Estimated H-index: 1
(SCAU: South China Agricultural University)
+ 2 AuthorsBaofeng Huo21
Estimated H-index: 21
(ZJU: Zhejiang University)
Purpose The purpose of this paper is to explore the relationships between relationship commitment, cooperative behavior and alliance performance in agricultural supply chains. By investigating dyadic relationships between companies and their contract farmers (hereafter denoted by C+F), this study aims to investigate how relationship commitment influences cooperative behavior and how such behavior further influences alliance performance in C+F agricultural supply chains in China. Design/methodolo...
Published on Jun 4, 2018in Internet Research4.11
Tao-Sheng Chiu1
Estimated H-index: 1
,
Wen-Hai Chih10
Estimated H-index: 10
(NDHU: National Dong Hwa University)
+ 1 AuthorsChia-Yi Wang1
Estimated H-index: 1
Purpose This study investigates the relationship between e-buyers and e-sellers in the context of the Chinese culture. It examines the relationships among swift guanxi, trust, uncertainty, and repurchase intentions. This study probes the possible mediation effects caused by the process where consumers form their thoughts and actions. Design/methodology/approach This study developed a theoretical model to examine how swift guanxi, trust, and uncertainty influence repurchase intentions of online a...
Stephanie Eckerd8
Estimated H-index: 8
(IU: Indiana University Bloomington),
Stephanie Eckerd1
Estimated H-index: 1
(IU: Indiana University Bloomington),
Kevin Sweeney1
Estimated H-index: 1
(SHSU: Sam Houston State University)
Purpose Contemporary supply chain exchanges are governed by both contractual and relational governance mechanisms. However, the decision about when to use these mechanisms is likely driven by key relationship characteristics as well as the context in which they are needed. The purpose of this paper is to evaluate the influence of dependence and information sharing on the governance decision within the context of inter-organizational conflict, and assess the degree to which contractual and relati...
Published on Jan 1, 2018in International Journal of Production Economics5.00
Baofeng Huo21
Estimated H-index: 21
(ZJU: Zhejiang University),
Yuxiao Ye3
Estimated H-index: 3
(PolyU: Hong Kong Polytechnic University)
+ 2 AuthorsZhongsheng Hua24
Estimated H-index: 24
(ZJU: Zhejiang University)
Service provider opportunism is a serious concern in third party logistics (3PL) relationships. However, our knowledge about the antecedents of 3PL providers' opportunism is limited. According to transaction cost economics (TCE), increased transaction costs cause opportunism. This study incorporates key TCE constructs (environmental uncertainty, specific assets, and opportunism) and conducts a transaction cost analysis. We argue that environmental uncertainty and specific assets create exchange ...
Published on Sep 1, 2017in Journal of Business Research4.03
Weiwei Dong2
Estimated H-index: 2
(Shanghai Institute of Technology),
Zhenzhong Ma18
Estimated H-index: 18
(U of W: University of Windsor),
Xiaolian Zhou1
Estimated H-index: 1
Abstract Based on the literature on relationship marketing and marketing channel research, this study proposes that in a channel relationship, interpersonal guanxi between boundary spanners of channel partners mediates the relationship between a firm's relationship marketing orientation and relational governance. Using the data collected from about 300 Chinese manufacturers and their suppliers, this study shows that relationship marketing orientation positively relates to relational governance, ...
Nisha Paul Kulangara1
Estimated H-index: 1
(UTA: University of Texas at Arlington),
Sherry Avery Jackson1
Estimated H-index: 1
,
Edmund Prater12
Estimated H-index: 12
Purpose The purpose of this paper is to investigate the interrelationship between trust, socialization, and information sharing on the buying firm’s innovation capability in the context of the buyer-supplier relationship (BSR). A nomological model is developed that examines the mediating role of relational capital (supplier trust) on the relationship between structural capital (socialization and information sharing) and innovation capability. Design/methodology/approach A survey was conducted on...
Aytuğ Sözüer1
Estimated H-index: 1
(Yalova University),
Fatih Semerciöz7
Estimated H-index: 7
(Istanbul University)
Abstract The purpose of this study is to propose a conceptual model that reflects interfirm exchanges can work well even under complex and tough conditions. Despite the general notion implying the negative impacts of environmental volatility and contextual distance between firms on interfirm relationships; this paper attempts to point out how that effect might be positive in buyer-supplier exchanges. Departing from the perspectives favoring diversity, the model proposes that dissimilarities betw...
Published on Jul 1, 2016in International Journal of Production Economics5.00
Baofeng Huo21
Estimated H-index: 21
(ZJU: Zhejiang University),
Zhiqiang Wang10
Estimated H-index: 10
(SCUT: South China University of Technology),
Yu Tian3
Estimated H-index: 3
(JSU: Jishou University)
Based on transaction cost economics and social exchange theory, this study investigates how supplier justice influences buyers' specific investments and communication, which in turn influence the opportunistic behavior of both parties in the supply chain. Data from 240 firms in China are used to test the proposed relationships, and the results suggest that supplier distributive and procedural justice can increase the buyer's specific investment. However, supplier interactional justice only impro...
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