Buying High Tech Products

Prior research on technology-intensive (TI) markets makes abstraction of the social context in which transactions take place. In contrast with this prior literature, the authors show that buyer-vendor transactions in TI markets are relationally and structurally embedded in an interfirm network. Their main premise is that buyers in TI markets prefer vendors with whom they can share a strong tie, and that in turn buyers want these vendors to share strong ties with their component manufacturers. This is an important addition to TI literature and to the on-going debate on the strength of ties in the sociology, management and marketing literatures. The authors also specifically consider how characteristics focal to TI markets, such as the know-how buyers possess or the pace of technological change they perceive, affect the extent to which buying behavior is relationally and structurally embedded. An empirical test in the computer network market shows good support for the developed theory.tie strength;embeddedness;buying behavior;conjoint analysis;technology-intensive markets

Empirical Tests Of Optimal Cognitive Distance

This article provides empirical tests of the hypothesis of ‘optimal cognitive distance’, proposed by Nooteboom (1999, 2000), in two distinct empirical settings. Variety of cognition, needed for learning, has two dimensions: the number of agents with different cognition, and differences in cognition between them (cognitive distance). The hypothesis is that in interfirm relationships optimal learning entails a trade-off between the advantage of increased cognitive distance for a higher novelty value of a partner’s knowledge, and the disadvantage of less mutual understanding. If the value of learning is the mathematical product of novelty value and understandability, it has an inverse-U shaped relation with cognitive distance, with an optimum level that yields maximal value of learning. With auxiliary hypotheses, the hypothesis is tested on interfirm agreements between pharmaceutical companies and biotech companies, as well as on interfirm agreements in ICT industries.innovation;organizational learning;ICT;biotechnology;alliances

Account Managers Creation of Social Capital: Communal and Instrumental Investments and Performance Implications

Account managers invest in two distinct, compensatory social ties to achieve social capital, namely peripheral knowledge ties and implementation support ties. The first ties require communal investments, which consist of organizational citizenship behaviors and peripheral information sharing. The second ties require instrumental investments that encompass reciprocity norms and strategic information sharing. Hypotheses are tested on a sample of 164 account managers who sell financial products/services to large customers. The findings show that account managers invest in both ties to attain peripheral knowledge accretion and implementation support which in turn result in improved performance.reciprocity;account management;social capital;organizational citizenship behaviors

Partner selection in B2B informational service markets

This study investigates the impact of selection criteria associated with interpersonal interaction (good personal relationships; enriching the service offering with interpretation and advice) on supplier consideration. More specifically, it examines how the importance of these criteria is contingent upon service-related dimensions. An experimental study among client firms in the market research industry that combines a conjoint and a between-subjects design leads to several new insights. First, while good personal relationships play an important role in the selection of a service provider, its impact is increased if the service offering is subjective in nature and decreased if it is strategically important. Second, enriching the service offering with interpretation and advice is more important for subjective as well as for strategically important service offerings. Third, as to other selection criteria, the study results show some interesting differences between consideration and choice. Price has a substantive impact only on choice, while a strong brand name is helpful for the service provider only in the consideration stage

Buying High Tech Products

Prior research on technology-intensive (TI) markets makes abstraction of the social context in which transactions take place. In contrast with this prior literature, the authors show that buyer-vendor transactions in TI markets are relationally and structurally embedded in an interfirm network. Their main premise is that buyers in TI markets prefer vendors with whom they can share a strong tie, and that in turn buyers want these vendors to share strong ties with their component manufacturers. This is an important addition to TI literature and to the on-going debate on the strength of ties in the sociology, management and marketing literatures. The authors also specifically consider how characteristics focal to TI markets, such as the know-how buyers possess or the pace of technological change they perceive, affect the extent to which buying behavior is relationally and structurally embedded. An empirical test in the computer network market shows good support for the developed theory

Account Managers Creation of Social Capital: Communal and Instrumental Investments and Performance Implications

Account managers invest in two distinct, compensatory social ties to achieve social capital, namely peripheral knowledge ties and implementation support ties. The first ties require communal investments, which consist of organizational citizenship behaviors and peripheral information sharing. The second ties require instrumental investments that encompass reciprocity norms and strategic information sharing. Hypotheses are tested on a sample of 164 account managers who sell financial products/services to large customers. The findings show that account managers invest in both ties to attain peripheral knowledge accretion and implementation support which in turn result in improved performance