In this work, I have presented two possible approaches to flexibility in buyer-seller relationships. Following the marketing research paradigm to view buyer-seller relationships as hybrid forms of governance, I have chosen the traditional TCE framework to explain the existence of buyer-seller relationships (Chapter 2). To get a deeper understanding of the TCE perspective of buyer-seller relationships, I have investigated the role of institutions in society. Institutions have an impact on the value of different options in an individual’s choice-set, although they do not exclude options from choice-sets. TCE is primarily concerned with the construction of secondary institutions. To provide a more comprehensive picture of buyer-seller relationships, relationships can be viewed as a set of fundamental and secondary institutions. Applied to real world problems, TCE is an unsatisfactory approach in some cases, especially because of its strong focus on behavioral uncertainty and its undifferentiated view of uncertainty. Environmental factors and environmental uncertainty including technological change are largely neglected in TCE.
KeywordsReal Option Austrian Economic Environmental Uncertainty Rational Flexibility Real Option Model
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