Interpersonal Dependence and Efficiency of Interfirm Exchange: A Cross-national Study of Industrial Distributor – Supplier Relationships

A glaring hole exists between academic marketing literature and anecdotal observations on the effect of interpersonal ties for interfirm exchange. Academic marketing literature, economic perspective in particular, either frowns on or belittles the impact of interpersonal ties for interfirm exchange. In contrast, we often hear street-smart people say that it is “who you know, not what you know,” that counts for the success in business. This study aims to clarify the role of interpersonal ties in interfirm exchange by examining the effect of interpersonal dependence on interfirm-level issues in industrial distributor – supplier relationships. Specifically, we propose that interpersonal dependence has differential effects on the elements of interfirm relationships (distributor dependence, trust, and commitment) and that, in return, these exchange elements have differential effects on the efficiency of interfirm exchange. The proposed hypotheses were tested with data collected through a survey of industrial distributors in the United States and Japan. The hypotheses on the effects of interpersonal dependence on interfirm relational elements received a mixed support, while the hypotheses on the effects of interfirm relational elements on the efficiency of exchange received support

Relational behaviors in marketing channel relationships: Transaction cost implications

Despite recent progress in research on marketing channel relationships, one important question remains unaddressed: Do distributor relational behaviors lower transaction cost for distributors? If so, how do relational behaviors affect transaction cost? This study examines the process through which relational behaviors affect transaction cost. Combining the relational perspective with the transaction cost analysis of exchange, the author develops hypotheses on the links between relational behaviors and transaction cost from a distributor's point of view: a distributor's relational behaviors have different direct and indirect effects on its transaction cost. The proposed hypotheses are tested on distributor-supplier relationships with data collected through a national survey of industrial distributors. The hypotheses on the dual, differential effects of relational behaviors on distributor transaction cost received partial empirical support.Marketing channels Industrial goods Relational behavior Reciprocation Transaction cost