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| Author: | Buvik, A. |
| Title: | Manufacturer-Specific Asset Investments and Inter-Firm Governance Forms: An Empirical Test of the Contingent Effect of Exchange Frequency |
| Journal: | Journal of Business-to-Business Marketing
2002 : VOL. 9:4, p. 3-26 |
| Index terms: | MARKETING INDUSTRIAL RELATIONS COSTS GOVERNMENT EMPIRICAL RESEARCH |
| Language: | eng |
| Abstract: | Transaction cost analysis (TCA) keeps the frequency of exchange as a significant dimension of business-to- business transactions, and the transaction frequency is expected to influence how to align inter-firm organization efficiently. To date, transaction frequency has received little attention in empirical TCA-studies. This research focuses in particular on order frequency in industrial purchasing relationships and how it affects the alignment of purchase contracting and hierarchical governance in supplier-manufacturer relationships. Data from a survey of 160 industrial purchasing relationships supports the basic TCA prediction stating that increased transaction frequency will provide administrative economies of scale benefits under conditions with substantial hazards of trade. |
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