Hostname: page-component-848d4c4894-5nwft Total loading time: 0 Render date: 2024-05-22T08:52:21.462Z Has data issue: false hasContentIssue false
  • English
  • Français

Proposing an operational classification scheme for embryonic cooperative relationships

Published online by Cambridge University Press:  02 February 2015

Michael Dj Clements ,
David L Dean  and
David A Cohen
Michael Dj Clements
Affiliation:
Centre for Supply Chain Research, School of Management and Marketing, University of Wollongong, Wollongong NSW, Australia
David L Dean
Affiliation:
Commerce Division, Lincoln University, Canterbury, New Zealand
David A Cohen
Affiliation:
Commerce Division, Lincoln University, Canterbury, New Zealand
Get access Rights & Permissions [Opens in a new window]

Abstract

Successful buyer/seller relationships have become recognised as essential for firms to remain competitive in the marketplace. Today's business climate encourages firms to not just compete on product or service attributes, but also on their ability to differentiate themselves from other firms. Supply chains provide firms this point of differentiation ensuring firms better competitive positioning as a result of being able to leverage themselves on the strengths of the supply chain, not just on the individual strengths of the firm. However, to maintain an effective role as a participant in a supply chain, firms must be able to develop and maintain cooperative relationships with other firms. In order to develop these relationships, firms need to be able to distinguish between different levels of relationship and be able to understand which relationships are worth developing further and which ones are not.

Whilst supply chain literature acknowledges firm progression from transactional to relational exchange, there is less agreement of the number of levels of both buyer/seller relationships in this theoretical continuum. This article proposes a theoretical continuum of relationship levels based on cross discipline literature and identifies objective classification criteria for relationship levels from both the buyer and the seller. Economic, behavioural and relational research is collectively used to explain the complexity of the ever evolving nature of inter-firm relationships. The article concludes by establishing a research model that proposes these levels of relationships are identifiable for both the buyer and the seller.

Keywords

buyer–sellercooperative relationshipsrelationship classificationsupply chains
Type
Research Article
Information
Journal of Management & Organization , Volume 13 , Issue 1 , March 2007 , pp. 51 - 64
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2007

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Achrol, RS, Reve, T and Stern, LW (1983) The environment of marketing channel dyads: A framework for comparative analysis. Journal of Marketing 47(Fall): 55–67.Google Scholar
Anderson, E and Weitz, B (1992) The use of pledges to build and sustain commitment in distribution channels. Journal of Marketing Research 29(1)(02): 18–34.Google Scholar
Anderson, JC and Narus, JA (1984) A model of the distributor's perspective of distributor–manufacturer working relationships. Journal of Marketing 48(Fall): 62–74.Google Scholar
Anderson, JC and Narus, JA (1990) A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing 54(01): 42–58.Google Scholar
Barney, JB (1986) Strategic factor markets: Expectations, luck, and business strategy. The Institute of Management Sciences.Google Scholar
Barney, JB (1996) Gaining and sustaining competitive advantage. Addison-Wesley, Menlo Park CA.Google Scholar
Berry, L (1995) Relationship marketing of services — growing interest, emerging perspectives. Journal of the Academy of Marketing Science 23(4): 236–245.Google Scholar
Beverland, MB and Bretherton, PB (1998) The strategic challenges facing the New Zealand wine industry. Journal of Wine Research 9(1): 55–64.Google Scholar
Beverland, MB and Bretherton, PB (2001) The uncertain search for opportunities: Determinants of strategic alliances. Qualitative Market Research 4(2): 88–99.Google Scholar
Borys, B and Jemison, DB (1989) Hybrid arrangements as strategic alliances: Theoretical issues in organizational combinations. Academy of Management Review 14(2): 234–249.Google Scholar
Bretherton, P (2003) The Rationale for Strategic Alliances: An Empirical Study. Journal of Euromarketing 13(1).Google Scholar
Bronder, C and Pritzi, R (1992) Developing strategic alliances: A conceptual framework for successful cooperation. European Management Journal 10(4): 412–21.Google Scholar
Buckin, LP and Sengupta, S (1993) Organizing successful co-marketing alliances. Journal of Marketing 57: 32–46.Google Scholar
Buzzell, RD and Ortmeyer, G (1995) Channel partnership streamline distribution. Sloan Management Review (Spring): 85–96.Google Scholar
Cann, CW (1998) Eight steps to building a business-to-business relationship. The Journal of Business and Industrial Marketing 13(4/5): 393–405.Google Scholar
Coase, RH (1937) The nature of the firm. Retrieved March 4 2004 from http://people.bu.edu/vaguirre/courses/bu332/nature_firm.pdf.Google Scholar
Connor, KR (1991) A historical comparison of resource-based theory and five schools of thought within industrial organization economics: Do we have a new theory of the firm? Journal of Management 17: 121–154.Google Scholar
Cox, A (1999) Power, value and supply chain management. Supply Chain Management, Bradford 4(4): 167–178.Google Scholar
Cunningham, MT and Homse, E (1988) Industrial marketing: on the frontier between buyer and seller. Marketing Intelligence and Planning 6(14): v–viii.Google Scholar
Day, GS (2000) Managing market relationships. Journal of the Academy of Marketing Science 28: 24–30.Google Scholar
Donaldson, B and O'Toole, T (2000) Classifying relationship structures: Relationship strength in industrial markets. Journal of Business and Industrial Marketing 15(7): 491–506.Google Scholar
Dwyer, FR, Schurr, PH and Oh, S (1987) Developing Buyer–Seller Relationships. Journal of Marketing 51: 11–27.Google Scholar
El-Ansary, AI and Stern, LW (1972) Power measurement in the distribution channel. Journal of Marketing Research IX(02): 47–52.Google Scholar
Ellram, LM (1995) Partnering pitfalls and success factors. Journal of Supply Chain Management 31(2)(Spring): 35–44.Google Scholar
Ellram, LM and Hendrick, TE (1995) Partnering characteristics: a dyadic perspective. Journal of Business Logistics 16(1): 41.Google Scholar
Emerson, RM (1962) Power-dependance relations. American Sociological Review 27: 31–41.Google Scholar
Fontenot, RJ and Wilson, EJ (1997) Relational exchange: a review of selected models for a prediction matrix of relationship activities. Journal of Business Research 39: 5–12.Google Scholar
Ford, D (1981) The development of buyer–seller relationships in industrial markets. European Journal of Marketing 14(5/6): 339–353.Google Scholar
Frazier, GL (1983a) On the measurement of interfirm power in channels of distribution. Journal of Marketing Research XX(05): 158–166.Google Scholar
Frazier, GL, Gill, JD and Kale, SJ (1989) Dealer dependence levels and reciprocal actions in a channel of distribution in a developing country. Journal of Marketing 53(01): 50–69.Google Scholar
Gaski, JF (1984) The theory of power and conflict in channels of distribution. Journal of Marketing 48(Summer): 9–29.Google Scholar
Gaski, JF and Nevin, JR (1985) The differential effects of exercised and unexercised power sources in a marketing channel. Journal of Marketing Research XXII(05): 130–142.Google Scholar
Granovetter, M (1985) Economic action and social structures: The problem of embeddedness. Administrative Science Quarterly 91(3): 481–510.Google Scholar
Gundlach, GT, Achrol, RS and Mentzer, JT (1995) The structure of commitment in exchange. Journal of Marketing 59(1): 78–92.Google Scholar
Hallikas, J, Karvonen, I, Pulkkinen, U, Virolainen, VM and Tuominen, M (2004) Risk management processes in supplier networks. International Journal of Production Economics 90(1): 47–58.Google Scholar
Hamel, G (1991) Competition for competence and inter-partner learning within international strategic alliances. Strategic Management Journal 12: 83–103.Google Scholar
Hamel, G, Doz, YL. and Prahalad, CK (1989) Collaborate with your competitors – and win. Harvard Business Review 01/February: 133–139,Google Scholar
Hausman, A (2001) Variations in relationship strength and its impact on performance and satisfaction in business relationships. Journal of Business and Industrial Marketing 16(6/7): 600–617.Google Scholar
Heide, JB (1994) Interorganizational governance in marketing channels. Journal of Marketing 58(1): 71–91.Google Scholar
Heide, JB and John, G (1990) Alliances in industrial purchasing: The determinants of joint action in buyer–supplier relationships. Journal of Marketing Research XXVII: 24–36.Google Scholar
Heide, JB and John, G (1990) Alliances in industrial purchasing: the determinants of joint action in buyer–supplier relationships. Journal of Marketing Research XXVII: 24–36.Google Scholar
Hii, ML (1999) Strategic alliance formation, Unpublished Masters Thesis, Lincoln University.Google Scholar
Hill, CW (1990) Cooperation, opportunism, and the invisible hand: Implications for transaction cost theory. The Academy of Management Review 15(3): 500–513.Google Scholar
Hogan, JE (1998) Assessing Relationship Value in Business Markets, Chapple Hill, PhD Thesis.Google Scholar
Holden, MT and O'Toole, T (2004) A quantitative exploration of communication's role in determining the governance of manufacturer–retailer relationships. Industrial Marketing Management 33: 539–548.Google Scholar
Hunt, SD and Morgan, RM (1995) The comparative advantage theory of competition. Journal of Marketing 59(2): 1–15.Google Scholar
Hunt, SD and Nevin, JR (1974): Power in a channel of distribution: Sources and consequences. Journal of Marketing Research XI: 186–193.Google Scholar
Jackson, DW Jr (1994) Relationship selling: the personalization of relationship marketing. Australasian Marketing Journal 2(1): 45–54.Google Scholar
Johnson, JL (1999) Strategic integration in industrial distribution channels: Managing the interfirm relationship as a strategic asset. Academy of Marketing Science Journal 27(1): 4–18.Google Scholar
Joseph, WB, Gardner, JT, Thach, S and Vernon, F (1995) How industrial distributors view distributor–supplier partnership arrangements. Industrial Marketing Management 24: 27–36.Google Scholar
Knox, SD and White, HFM (1991) Retail buyers and their fresh product suppliers: a power or dependency scenario in the UK? European Journal of Marketing 25(1): 40–53.Google Scholar
Kumar, N (1996) The power of trust in manufacturer–retailer relationships. Harvard Business Review (11–Dec): 92–106.Google Scholar
Laing, A and Lian, PCS (2001) Interorganisational relationships in professional services: towards a typology of inter-organisational relationships. Retrieved 4 March 2004 from http://www.smeal.psu,edu/isbm/database.html.Google Scholar
Lorange, P and Roos, J (1992) Strategic alliances, formation, implementation and evolution. Blackwell, Boston MA.Google Scholar
Lusch, RF and Brown, JR (1982) A modified model of power in the marketing channel. Journal of Marketing Research XIX: 312–323.Google Scholar
Lusch, RF and Brown, JR (1996) Interdependency, contracting, and relational behaviour in marketing channels. Journal of Marketing 60: 19–38.Google Scholar
Lusch, RF (1976) ‘Sources of power: Their impact on intrachannel conflict’. Journal of Marketing Research XIII: 382–390.Google Scholar
Macneil, IR (1980) The social contract, an inquiry into modern contractual relations. Yale University.Google Scholar
McGarry, ED (1951) The contractual function in marketing. Journal of Business (04): 96–113.Google Scholar
Mallen, B (1973) Functional spin-off: A key to anticipating change in distribution structure. Journal of Marketing 37(3): 18–25.Google Scholar
Mohr, J and Spekman, R (1994) Characteristics of partnership success: partnership attributes, communication behaviour and conflict resolution techniques. Strategic Management Journal 15: 135–152.Google Scholar
Mohr, J and Nevin, JR (1990) Communication strategies in marketing channels: A theoretical perspective. Journal of Marketing 54(4): 36–51.Google Scholar
Moore, RA (1991) Relationship states in an international marketing channel. European Journal of Marketing 25(4): 47–60.Google Scholar
Moorman, C, Zaltman, G and Deshpande, R (1992) Relationships between providers and users of market research: the dynamics of trust within and between organizations. Journal of Marketing Research XXIX: 314–328.Google Scholar
Morgan, RM and Hunt, SD (1994) The commitment–trust theory of relationship marketing. Journal of Marketing 58: 20–38.Google Scholar
Ohmae, K (1989) The global logic of strategic alliances. Harvard Business Review (03– April): 143–154.Google Scholar
Palmer, A and Bejou, D (1994) Buyer–seller relationship: A conceptual model and empirical investigation. Journal of Marketing Management 10(7): 495–512.Google Scholar
Peteraf, MA (1993) The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal 14: 179–191.Google Scholar
Pfeffer, J and Salancik, GR (1978) The external control of organizations, a resource dependence perspective. Harper & Row, New York.Google Scholar
Porter, ME (1985) Competitive advantage, creating and sustaining superior performance. The Free Press, New York.Google Scholar
Pride, WM and Ferrell, OC (2000) Marketing: Concepts and Strategies. Houghton Mifflin, New York.Google Scholar
Rosenbloom, B (2004) Marketing Channels: A Management View (7th edn). South-Western, Thomson Corporation, Canada.Google Scholar
Salmond, D and Spekman, H (1986) ‘Collaboration as a mode of managing long-term buyer–seller relationships’ in Shimp, T (Ed.) AMA Proceedings, pp. 162–166, American Marketing Association, Chicago IL.Google Scholar
Scheer, LK and Stern, LW (1992) The effect of influence type and performance outcomes on attitude toward the influencer. Journal of Marketing Research 29(1): 128–42.Google Scholar
Segil, L (1998) Strategic alliances for the 21st Century. Strategy and Leadership 26(4): 12–17.Google Scholar
Sheth, JN and Sharma, A (1997) Supplier relationships, emerging issues and challenges. Industrial Marketing Management 26: 91–100.Google Scholar
Skinner, SJ, Gassenheimer, JB and Kelley, SW (1992) Cooperation in supplier–dealer relations. Journal of Retailing 68(2): 174–187.Google Scholar
Spekman, R (1988) Strategic supplier selection: toward an understanding of long-term buyer– seller relationships. Business Horizons 31: 75–81.Google Scholar
Spekman, RE and Davis, EW (2004) Risky business: Expanding the discussion on risk and the extended enterprise. International Journal of Physical Distribution and Logistics Management 34(5): 414–433.Google Scholar
Spekman, RE, Forbes, TM III, Isabella, LA and MacAvoy, TC (1998) Alliance management: A view from the past and a look to the future. Journal of Management Studies 35(6): 747–772.Google Scholar
Spekman, R and Sawhney, K (1995) ‘Toward a conceptual understanding of the antecedents of strategic alliances’, in Wilson, DT and Moller, KE (Eds) Business Marketing: An Interaction and Network Perspective. Kluwer, Boston MA.Google Scholar
Stern, LW (1967) The concept of channel control. Journal of Retailing 43(2): 14–20.Google Scholar
Stern, LW and Reve, T (1980) Distribution channels as political economies: a framework for comparative analysis. Journal of Marketing 44: 52–64.Google Scholar
Stigler, GJ (1951) The division of labour is limited by the extent of the market. Journal of Political Economy LIX(3):185–193.Google Scholar
Teece, DJ (1992) Competition, cooperation, and innovation: organizational arrangements for regimes of rapid technological progress. Journal of Economic Behaviour and Organisation 18: 1–25.Google Scholar
Ulrich, D and Barney, JB (1984) Perspective in organizations: Resource dependence, efficiency, and population. Academy of Management 9: 471–482.Google Scholar
Varadarajan, PR and Cunningham, MH (1995) Strategic Alliances: A synthesis of conceptual foundations. Journal of the Academy of Marketing Science 23(4): 292–296.Google Scholar
Vlosky, RP and Wilson, EJ (1997) Partnering and traditional relationships in business marketing: an introduction to the special issue. Journal of Business Research 39: 1–4.Google Scholar
Webster, FE Jr (1992) The changing role of marketing in the corporation. Journal of Marketing 58: 1–17.Google Scholar
Wernerfelt, B (1984) A resource-based view of the firm. Strategic Management Journal 5: 171–180.Google Scholar
Whipple, JM and Frankel, R (2000) Strategic alliance success factors. Journal of Supply Chain Management 36(3): 21–28.Google Scholar
Williams, KC and Spiro, RL (1985) Communication style in the salesperson–customer dyad. Journal of Marketing Research 22: 434.Google Scholar
Wilson, DT (1995) An integrated model of buyer– seller relationships. Journal of Marketing Science 23(4): 335–345.Google Scholar
Yoshina, MY and Rangan, US (1995) Strategic alliances, an entrepreneurial approach to globalization. Harvard Business School Press, Boston MA.Google Scholar