Alliances in industrial purchasing: the determinants of joint action in buyer-supplier relationships, Journal of Marketing Research

Recent trends in industrial markets indicate that buyers and sellers are increas-ingly supplanting conventional "arm's length " arrangements with "alliances " involv-ing closer ties. The authors develop a theoretical model of industrial buyer-supplier ties that presents ioint action as a key aspect of closeness. Whereas conventional ties emphasize a clearly defined division of labor, these newer relationships are distinguished by more tightly integrated roles based on undertaking activities jointly. Drawing primarily on a normative theory of transaction costs, the authors identify the conditions under which these relationships are useful. The utility of the rela-tionships derives from an ability to safeguard relationship-specific investments and to facilitate adaptation to uncertainty. Using data from a sample of industrial firms and their suppliers, the authors test these predictions. The results show good support for the model. Consequences for research and practice in marketing are drawn