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| Author: | Buvik, A. |
| Title: | Hybrid Governance and Governance Performance in Industrial Purchasing Relationships |
| Journal: | Scandinavian Journal of Management
2003 : DEC, VOL. 18:4, p. 567-588 |
| Index terms: | INDUSTRIAL RELATIONS RELATIONSHIP MARKETING TRANSACTION COSTS TRANSACTIONAL ANALYSIS |
| Language: | eng |
| Abstract: | The present study focuses on the governance efficacy of vertical coordination in industrial business-to-business relationships. Empirical findings from a survey of 170 industrial supplier-buyer relationships demonstrate that when asset specificity reaches a certain level, greater vertical coordination reduces ex post transaction costs significantly. On the other hand, this efficacy pattern is modest or nonexistent in relationships with low asset specificity. The research findings support the basic TCA assumption that the performance of hybrid governance arrangements is highly dependent on a situation of substantial inter-firm dependence with subsequent small-number conditions. |
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