Match!

Asset specificity, uncertainty and relational norms: an examination of coordination costs in collaborative strategic alliances

Published on Apr 1, 2000in Journal of Economic Behavior and Organization
· DOI :10.1016/S0167-2681(99)00080-3
Kendall W. Artz11
Estimated H-index: 11
(Baylor University),
Thomas H. Brush15
Estimated H-index: 15
(SPbU: Saint Petersburg State University)
Abstract
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 for both the transaction cost and relational exchange perspectives. Asset specificity and environmental uncertainty directly increase coordination costs and, by altering the behavioral orientation of the alliance, relational norms lowered exchange costs.
  • References (66)
  • Citations (258)
📖 Papers frequently viewed together
19.5k Citations
3,716 Citations
6,650 Citations
78% of Scinapse members use related papers. After signing in, all features are FREE.
References66
Newest
#1Gordon Walker (UPenn: University of Pennsylvania)H-Index: 23
#2David Weber (MIT: Massachusetts Institute of Technology)H-Index: 3
The article provides information on the make-or-buy decisions involved in a buyer-seller relationship. Information is presented about contracting cost and market competition. A discussion is presented about the importance of market analysis and other factors considered by purchasing managers when making make-or-buy decisions. The authors examine the effects of competition, market conditions, and the relationship between buyers and sellers on business transactions. Production costs and technologi...
278 Citations
#1Erin Anderson (UPenn: University of Pennsylvania)H-Index: 33
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...
680 CitationsSource
#1Jeffrey H. Dyer (UPenn: University of Pennsylvania)H-Index: 25
This study of automotive transaction relationships in the U.S.A. and Japan offers abta which indicate that transaction costs do not necessarily increase with an increase in reiation-specijk investments. We empirically examine the conditions under which transactors can simultaneously achieve the twin benejits of high asset specificity and low transaction costs. This is possible because the dtfferent safeguards which can be employed to control opportunism have different set-up costs and result in ...
1,447 CitationsSource
#1Ken G. Smith (UMD: University of Maryland, College Park)H-Index: 45
#2Stephen J. Carroll (UMD: University of Maryland, College Park)H-Index: 14
Last. Susan J. Ashford (UM: University of Michigan)H-Index: 39
view all 3 authors...
The 1994 Special Research Forum on Intra- and Interorganizational Cooperation is dedicated to the proposition that issues of cooperation are fundamental to management success and of increasing impo...
739 CitationsSource
#1Akbar Zaheer (UMN: University of Minnesota)H-Index: 31
#2N. Venkatraman (SPbU: Saint Petersburg State University)H-Index: 41
We develop a model of relational governance as a specific form of interorganizational strategy that is distinct from the traditional modes of markets and hierarchies. We conceptualize this form of strategy in terms of structural and processual dimensions and derive a model of its determinants through arguments drawn from transaction cost economics and the sociological exchange literature. Hierarchical regression modeling is employed to test the theoretical model on data collected from a sample o...
1,210 CitationsSource
Oliver E. Williamson University of California, Berkeley This paper combines institutional economics with aspects of contract law and organization theory to identify and explicate the key differences that distinguish three generic forms of economic organization-market, hybrid, and hierarchy. The analysis shows that the three generic forms are distinguished by different coordinating and control mechanisms and by different abilities to adapt to disturbances. Also, each generic form is supported and...
4,614 Citations
#1Jakki J. Mohr (CU: University of Colorado Boulder)H-Index: 19
#2Robert E. Spekman (UVA: University of Virginia)H-Index: 35
The formation of partnerships between firms is becoming an increasingly common way for firms to find and maintain competitive advantage. While the antecedents of partnership formation and the characteristics of the resulting cooperative working relationship have been explored in the literature, an understanding of characteristics associated with partnership success is lacking. Such an understanding is important in reconciling the prescriptions to form partnerships with the reality that a majorit...
2,553 CitationsSource
#1Nirmalya Kumar (PSU: Pennsylvania State University)H-Index: 28
#2Louis W. Stern (NU: Northwestern University)H-Index: 25
Last. James C. Anderson (NU: Northwestern University)H-Index: 41
view all 3 authors...
In this article, we examine the use of the key informant methodology by researchers investigating interorganizational relationships. Authors have advocated the use of multiple informants to increase the reliability and validity of informant reports. However, interorganizational research still tends to rely on single informants. We investigated informant selection and obtaining perceptual agreement among multiple informants, two problems that may have inhibited widespread use of multiple informan...
1,533 CitationsSource
International management research highlights political, government policy, and macroeconomic uncertainties. Strategy studies focus on input supply, product market, and competitive uncertainties. This study develops and tests the reliability of an instrument for measuring managers′ uncertainly perceptions. Data analyses using an international sample provide insights into the relative importance of country and industry factors for explaining managers′ perceptions of different environmental uncerta...
263 CitationsSource
#1Arvind Parkhe (IU: Indiana University)H-Index: 18
Maintaining robust cooperation in interfirm strategic alliances poses special problems. Such relationships have received growing attention in recent research grounded in game theory, which has suggested that some alliance structures are inherently more likely than others to be associated with high opportunity to cheat, high behavioral uncertainty, and poor stability, longevity, and performance. The present study merged these theoretical insights with the logic of transaction cost economics in a ...
2,039 CitationsSource
Cited By258
Newest
#1Jordana J. George (A&M: Texas A&M University)H-Index: 2
#2Jie (Kevin) Yan (Dalton State College)H-Index: 1
Last. Dorothy E. Leidner (Baylor University)H-Index: 37
view all 3 authors...
ABSTRACTData philanthropy is a corporate gift of data, data resources such as analysts, and/or data technologies such as software, computing power, and storage. Yet data philanthropy is unlike othe...
Source
Around the world, legacy news publishers are suffering from the deep decline of revenues and face the challenge of survival. As the situation continues, conflicts between online portal and news producers are also intensifying. Under these circumstances, Naver, the biggest internet portal in Korea, and several Korean news publishers have begun to seek a new breakthrough—media joint ventures. The joint venture between online portals and news publishers is a unique collaboration model that has not ...
Source
#1Emmeline Chuang (UCLA: University of California, Los Angeles)H-Index: 15
#2Bowen McBeath (PSU: Portland State University)H-Index: 16
Last. Michael J. Austin (University of California, Berkeley)H-Index: 24
view all 4 authors...
1 CitationsSource
#1C. Gelderman (OU: Open University)
#2Janjaap Semeijn (OU: Open University)H-Index: 20
Last. Mark Verhappen (OU: Open University)H-Index: 1
view all 3 authors...
Abstract Opportunistic behavior is a well-known reason for the failure of collaborative buyer-supplier relationships. Despite the numerous studies on opportunism in buyer-supplier relationships, the individual level is largely understudied. We explore opportunistic behavior of purchasing professionals in strategic supplier relationships, focusing on triggers, manifestations and consequences. The Critical Incident Technique (CIT) was employed to interview professional purchasers in the Netherland...
Source
#1Elena P Poliakova (J. Mack Robinson College of Business)H-Index: 1
#2Liesl Riddle (GW: George Washington University)H-Index: 17
Last. Michael Cummings (UA: University of Arkansas)H-Index: 4
view all 3 authors...
Recent research in international business and related fields suggests that a country’s overseas migrant populations can facilitate its inward flow of foreign direct investment (FDI). How do recipient-country governments interested in attracting more migrant-facilitated FDI respond? We provide the first exploratory study of recipient-country response by examining a public–private partnership (PPP) between government-run investment promotion agencies and diaspora-focused non-governmental organizat...
2 CitationsSource
#1Ranjani Krishnan (MSU: Michigan State University)H-Index: 21
#2Deepa Mani (Indian School of Business)H-Index: 8
Source
Several studies claim that to address the current economic and social challenges that face societies requires a range of public instruments promoting a variety of new technologies, markets and institutions. However, these studies say little about how to monitor the degree to which the policy-mix fosters variety in the system. This paper attempts to contribute to on-going efforts in the innovation policy field by developing such an analytical framework. Taking a microeconomic approach, this frame...
Source
The purpose of this paper is to investigate the influence of social capital and relationship quality on key account management (KAM) effectiveness.,Based on the literature, the authors designed a framework that links social capital, relationship quality and KAM effectiveness. Data were collected through a self-administered questionnaire. Using data from a sample of 172 business-to-business supplier firms, the authors examined this model.,The research results provide empirical support to the impo...
Source
#1Josef Wieland (Zeppelin University)H-Index: 11
Relational transactions as multivalent cooperation projects are coordinated via specific forms of contracts. By definition, relational contracts are targeted at generating shared value as a cooperation rent. The continuous nature of the relationship between exchange and relational transactions must be considered. Following Ian R. Macneil’s work in contract theory, the motivational and behavioural starting points and indicators of relational contract theory are developed. A specific form of relat...
Source
Source