Flexibility in Buyer-Seller Relationships

A Transaction Cost Economics Extension based on Real Options Analysis

  • Authors
  • Ellen Roemer

Part of the Business-to-Business-Marketing book series (BTBM)

About this book

Introduction

In marketing research, industrial buyer-seller relationships are frequently analyzed by Transaction Cost Economics (TCE). The TCE rationale tends to emphasize the benefits of reduced flexibility in relationships. Institutional safeguards are recommended in order to protect against behavioral uncertainty thereby simultaneously reducing flexibility. Nevertheless, this perspective largely disregards the value of greater flexibility in the presence of environmental uncertainty. Due to environmental change, "better" outside options can emerge requiring flexibility to react. Consequently, a flexibility trade-off emerges when relationships are affected by both behavioral and environmental uncertainty.

Ellen Roemer analyzes the flexibility trade-off in buyer-seller relationships. She investigates how relationships should be managed when there is behavioral and environmental uncertainty. TCE, real options analysis, and Austrian economics are used to explore the flexibility trade-off. By extending traditional TCE by real options analysis, an optimum degree of flexibility can be determined.

Keywords

Beziehungen Business-to-Business Flexibiltät Neue Institutionenökonomie Realoptionen Transaktionskosten Transaktionskostentheorie Unsicherheit

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-322-81833-1
  • Copyright Information Gabler Verlag | Springer Fachmedien Wiesbaden GmbH, Wiesbaden 2004
  • Publisher Name Deutscher Universitätsverlag
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-8244-8195-8
  • Online ISBN 978-3-322-81833-1
  • About this book
Industry Sectors
Pharma
Automotive
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Biotechnology
Telecommunications
Consumer Packaged Goods