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Alliances in Industrial Purchasing: The Determinants of Joint Action in Buyer-Supplier Relationships
Abstract
Recent trends in industrial markets indicate that buyers and sellers are increasingly supplanting conventional “arm's length” arrangements with “alliances” involving closer ties. The authors develop a theoretical model of industrial buyer-supplier ties that presents joint action as a key aspect of closeness. Whereas conventional ties emphasize a clearly defined division of labor, these newer relationships are distinguished by more tightly integrated roles based on undertaking activities jointly. Drawing primarily on a normative theory of transaction costs, the authors identify the conditions under which these relationships are useful. The utility of the relationships derives from an ability to safeguard relationship-specific investments and to facilitate adaptation to uncertainty. Using data from a sample of industrial firms and their suppliers, the authors test these predictions. The results show good support for the model. Consequences for research and practice in marketing are drawn.
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Metadata
- Authors
- Heide, J. B., & John, G.
- Venue
- Journal of Marketing Research
- Publisher
- SAGE Publications
- Published
- 1990-02
- Volume
- 27
- Issue
- 1
- Pages
- 24-36
- ISSN
- 0022-2437 (ISSN-L)
- 1547-7193
- OpenAlex
- W1967614935
- Cited by
- 2,110
- References
- 3
- FWCI
- 22.83
- Type
- journal article
- Language
- en
- Open access
- closed
- Licence
- journals.sagepub.com/page/policies/text-and-data-mining-license (tdm)
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