Relationship archetypes in aftermarkets

Stephan M. Wagner, Ruben Jönke and Eleni Hadjiconstantinou

International Journal of Production Research, 2018, vol. 56, issue 6, 2250-2268

Abstract: Aftermarket sales and profits have become an increasingly important part of an Original Equipment Manufacturer’s (OEM) business model. The attractiveness of the after-sales business, however, has also been recognised by other parties (e.g. competitors, suppliers) who try to capture a share of the aftermarket. A highly profitable aftermarket creates a strong incentive for the supplier to disintermediate the established supply chain and sell directly to the OEM’s aftermarket customers. To counter this threat, OEMs must be aware of the activities and actors on their aftermarket, and should understand and systematically analyse the existing or changing business relationships among the incumbent and emergent actors in the aftermarket ecosystem. In this exploratory study we use case study research with 29 companies (customer, OEM, supplier, or competitor) and draw on social network theory – in particular the concepts of structural embeddedness, structural hole and supply chain disintermediation – to examine and discuss triadic and tetradic relationship constellations (archetypes) in aftermarkets. Recognising these relationship archetypes in aftermarkets can help firms to adapt their after-sales strategies and protect the competitive advantage, revenues and profits stemming from their after-sales business.

Date: 2018
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DOI: 10.1080/00207543.2017.1378826

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