The Seeds of Dissolution: Discrepancy and Incoherence in Buyer-Supplier Exchange
Qiong Wang (),
Ujwal Kayande () and
Sandy Jap ()
Additional contact information
Qiong Wang: Smeal College of Business, Pennsylvania State University, University Park, Pennsylvania 16802
Ujwal Kayande: Research School of Business, Australian National University, Acton, Australian Capital Territory 0200, Australia
Sandy Jap: Goizueta Business School, Emory University, Atlanta, Georgia 30322
Marketing Science, 2010, vol. 29, issue 6, 1109-1124
In this research, we examine a novel mechanism of interorganizational relationship dissolution: incoherence in a partner's behavior. We propose that the discrepancy between an exchange partner's opportunistic behavior and the focal firm's expectations may create a state of incoherence and uncertainty and that this effect can be damaging to the exchange even when the partner's behavior is better than expected. Using nearly 500 longitudinal, confidential reports of industrial buyers and sellers, we find supportive evidence that (1) the net effect of the discrepancy is initially positive when behavior is better than expected but becomes rapidly negative thereafter, and (2) the net effect of the discrepancy is always negative when behavior is worse than expected. Thus, these effects will generally damage the exchange even as the partner tries to improve the relationship. This gives insight into why exchange relationships that hit a downward spiral can be difficult, if not impossible, to salvage. We also show that the dysfunctional consequences of discrepancy are mitigated through exchange structures such as the magnitude of dependence on an organizational partner, the development phase of the relationship, and the presence of bilateral idiosyncratic investments. Implications for theory and the management of interorganizational relationships are developed.
Keywords: interorganizational relationship management and performance; belief discrepancy; incoherence; organizational sensemaking; opportunism; dependence; relationship phase; bilateral investments (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:inm:ormksc:v:29:y:2010:i:6:p:1109-1124
Access Statistics for this article
More articles in Marketing Science from INFORMS Contact information at EDIRC.
Series data maintained by Mirko Janc ().