Relationship Governance Dynamics: The Roles of Partner Selection Efforts and Mutual Investments

The article studies interfirm governance in the context of supplier–reseller relationships. Using a longitudinal study, the authors examine the roles of supplier selection efforts and mutual specific investments with respect to (1) motivating a supplier to make incremental investments and (2) safegu...

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Bibliographic Details
Published in:Journal of marketing research 2018-10, Vol.55 (5), p.704-721
Main Authors: Wathne, Kenneth H., Heide, Jan B., Mooi, Erik A., Kumar, Alok
Format: Article
Language:English
Subjects:
Marketing
Selection
Studies
Transaction costs
Vendor supplier relations
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Summary:The article studies interfirm governance in the context of supplier–reseller relationships. Using a longitudinal study, the authors examine the roles of supplier selection efforts and mutual specific investments with respect to (1) motivating a supplier to make incremental investments and (2) safeguarding these investments from supplier ex post transaction costs. The authors also examine the joint effects of selection efforts and mutual investments on supplier ex post transaction costs. From a practical standpoint, the findings suggest guidelines for channel strategy. Theoretically, they provide new insights into relationship dynamics, including evidence regarding the effects of a firm's governance choices over time.
ISSN:0022-2437
1547-7193
DOI:10.1177/0022243718801325