Trust, power and transaction costs in B2B exchanges: a socio-economic approach

Raluca Bunduchi

Research output: Contribution to journalArticle

42 Citations (Scopus)

Abstract

The advent of the Internet has enabled organisations to reconfigure their inter-organisational relationships. This study presents three frameworks to analyse the outcome that the use of Internet based electronic markets has on the nature of inter-organisational relationships: transaction cost economics, social exchange theory and an integrated framework that combines the first two. The integrated framework proposes that the nature of inter-organisational relationships depends on the interaction between the logic of transaction cost economics and the need for trust and interdependencies between exchange parties. A single case study is used to illustrate the way the three frameworks can be applied to analyse the use of electronic markets in inter-organisational exchanges. The study finds that the integrated framework provides a more complete understanding of inter-organisational relationships, and suggests a modular approach to the implementation of electronic marketplaces. (C) 2007 Elsevier Inc. All tights reserved.

Original languageEnglish
Pages (from-to)610-622
Number of pages12
JournalIndustrial Marketing Management
Volume37
Issue number5
Early online date19 Jun 2007
DOIs
Publication statusPublished - Jul 2008

Keywords

  • electronic markets
  • inter-organizational relationships
  • transaction costs
  • trust
  • dependencies
  • buyer-seller relationships
  • information-systems
  • interorganizational systems
  • business relationships
  • relational exchange
  • supply chain
  • e-commerce
  • internet
  • interdependence

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