What Is a Relationship Worth? Repeated Exchange and the Development and Deployment of Relational Capital

Published Online:https://doi.org/10.1287/orsc.2013.0824

References

  • Afuah A (2000) How much do your co-opetitors’ capabilities matter in the face of technological change? Strategic Management J. 21(3):387–404.CrossrefGoogle Scholar
  • Agarwal R, Croson R, Mahoney JT (2010) The role of incentives and communication in strategic alliances: An experimental investigation. Strategic Management J. 31(4):413–437.CrossrefGoogle Scholar
  • Anand BN, Khanna T (2000) The structure of licensing contracts. J. Indust. Econom. 48(1):103–135.CrossrefGoogle Scholar
  • Anderson E, Jap SD (2005) The dark side of close relationships. MIT Sloan Management Rev. 46(3):75–82.Google Scholar
  • Argyres NS, Zenger TR (2012) Capabilities, transaction costs, and firm boundaries. Organ. Sci. 23(6):1643–1657.LinkGoogle Scholar
  • Ariño A, de la Torre J, Ring PS (2001) Relational quality: Managing trust in corporate alliances. Calif. Management Rev. 44(1):109–131.CrossrefGoogle Scholar
  • Arrow KJ (1999) Observations on social capital. Dasgupta P, Serageldin I, eds. Social Capital: A Multifaceted Perspective (World Bank, Washington, DC), 3–5.Google Scholar
  • Azoulay P, Repenning NP, Zuckerman EW (2010) Nasty, brutish, and short: Embeddedness failure in the pharmaceutical industry. Admin. Sci. Quart. 55(3):472–507.CrossrefGoogle Scholar
  • Baker WE (1990) Market networks and corporate behavior. Amer. J. Sociol. 96(3):589–625.CrossrefGoogle Scholar
  • Barney JB, Hansen MH (1994) Trustworthiness as a source of competitive advantage. Strategic Management J. 15(S1):175–190.CrossrefGoogle Scholar
  • Baron JN, Hannan MT (1994) The impact of economics on contemporary sociology. J. Econom. Literature 32(3):1111–1146.Google Scholar
  • Barzel Y (1982) Measurement cost and the organization of markets. J. Law Econom. 25(1):27–48.CrossrefGoogle Scholar
  • Bidwell M, Fernandez-Mateo I (2010) Relationship duration and returns to brokerage in the staffing sector. Organ. Sci. 21(6):1141–1158.LinkGoogle Scholar
  • Bradach JL, Eccles RG (1989) Price, authority, and trust: From ideal types to plural forms. Annual Rev. Sociol. 15:97–118.CrossrefGoogle Scholar
  • Brandenburger AH, Stuart HW (1996) Value based business strategy. J. Econom. Management Strategy 5(1):5–24.CrossrefGoogle Scholar
  • Bull C (1987) The existence of self-enforcing implicit contracts. Quart. J. Econom. 102(1):147–159.CrossrefGoogle Scholar
  • CAPS (2006) Focus on eProcurement. Report, CAPS Research, Tempe, AZ.Google Scholar
  • Caves RE (2007) Multinational Enterprise and Economic Analysis (Cambridge University Press, New York).CrossrefGoogle Scholar
  • Chassang S (2010) Building routines: Learning, cooperation and the dynamics of incomplete relational contracts. Amer. Econom. Rev. 100(1):445–465.CrossrefGoogle Scholar
  • Chatain O (2011) Value creation, competition, and performance in buyer-supplier relationships. Strategic Management J. 32(1):76–102.CrossrefGoogle Scholar
  • Cohen WM, Levinthal DA (1990) Absorptive capacity: A new perspective on learning and innovation. Admin. Sci. Quart. 35(1):128–152.CrossrefGoogle Scholar
  • Coleman JS (1988) Social capital in the creation of human capital. Amer. J. Sociol. 94(Supplement):S95–S120.CrossrefGoogle Scholar
  • Cousins PD, Handfield RB, Lawson B, Petersen KJ (2006) Creating supply chain relational capital: The impact of formal and informal socialization processes. J. Oper. Management 24(6):851–863.CrossrefGoogle Scholar
  • Curhan JR, Neale MA, Ross L, Rosencranz-Engelmann J (2008) Relational accommodation in negotiation: Effects of egalitarianism and gender on economic efficiency and relational capital. Organ. Behav. Human Decision Processes 107(2):192–205.CrossrefGoogle Scholar
  • Denrell J, March JG (2001) Adaptation as information restriction: The hot stove effect. Organ. Sci. 12(5):523–538.LinkGoogle Scholar
  • Domencich TA, McFadden D (1975) Urban Travel Demand: A Behavioral Analysis (North-Holland, New York).Google Scholar
  • Dore R (1983) Goodwill and the spirit of market capitalism. British J. Sociol. 34(4):459–482.CrossrefGoogle Scholar
  • Dyer JH, Chu W (2003) The role of trustworthiness in reducing transaction costs and improving performance: Empirical evidence from the United States, Japan, and Korea. Organ. Sci. 14(1):57–68.LinkGoogle Scholar
  • Dyer JH, Singh H (1998) The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Acad. Management Rev. 23(4):660–679.CrossrefGoogle Scholar
  • Eccles RG (1981) The quasi-firm in the construction industry. J. Econom. Behav. Organ. 2(4):335–357.CrossrefGoogle Scholar
  • Emiliani ML, Stec DJ (2002) Realizing savings from online reverse auctions. Supply Chain Management 7(1):12–23.CrossrefGoogle Scholar
  • Fernandez RM, Castilla EJ (2001) How much is that network worth? Social capital in employee referral networks. Lin N, Cook K, Burt RS, eds. Social Capital: Theory and Research, Chapter 4 (Aldine-deGruyter, Chicago).Google Scholar
  • Fernandez RM, Castilla EJ, Moore P (2000) Social capital at work: Networks and employment at a phone center. Amer. J. Sociol. 105(5):1288–1356.CrossrefGoogle Scholar
  • Gargiulo M, Benassi M (1999) The dark side of social capital. Leenders RTHAJ, Gabbay SM, eds. Corporate Social Capital and Liability (Kluwer, Boston), 298–322.CrossrefGoogle Scholar
  • Gerlach ML (1992) Alliance Capitalism: The Social Organization of Japanese Business (University of California Press, Berkeley).Google Scholar
  • Gibbons R (2010) Inside organizations: Pricing, politics, and path dependence. Annual Rev. Econom. 2(1):337–365.CrossrefGoogle Scholar
  • Gibbons R, Henderson R (2013) What do managers do?Gibbons R, Roberts J, eds. The Handbook of Organizational Economics (Princeton University Press, Princeton, NJ), 680–731.CrossrefGoogle Scholar
  • Gieryn TF (2000) A place for space in sociology. Annual Rev. Sociol. 26:463–496.CrossrefGoogle Scholar
  • Granovetter M (1985) Economic action and social structure: The problem of embeddedness. Amer. J. Sociol. 91(3):481–510.CrossrefGoogle Scholar
  • Gulati R (1995a) Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Acad. Management J. 38(1):85–112.CrossrefGoogle Scholar
  • Gulati R (1995b) Social structure and alliance formation patterns: A longitudinal analysis. Admin. Sci. Quart. 40(4):619–652.CrossrefGoogle Scholar
  • Gulati R, Nickerson JA (2008) Interorganizational trust, governance choice, and exchange performance. Organ. Sci. 19(5):688–708.LinkGoogle Scholar
  • Gulati R, Sytch M (2008) Does familiarity breed trust? Revisiting the antecedents of trust. Managerial Decision Econom. 29(2/3):165–190.CrossrefGoogle Scholar
  • Hausman JA (2001) Mismeasured variables in econometric analysis: Problems from the right and problems from the left. J. Econom. Perspect. 15(4):57–67.CrossrefGoogle Scholar
  • Hausman J, McFadden D (1984) A specification test for the multinomial logit model. Econometrica 52(5):1219–1240.CrossrefGoogle Scholar
  • Heide JB, Miner AS (1992) The shadow of the future: Effects of anticipated interaction and frequency of contact on buyer-seller cooperation. Acad. Management J. 35(2):265–291.CrossrefGoogle Scholar
  • Heimeriks KH, Schijven M, Gates S (2012) Manifestations of higher-order routines: The underlying mechanisms of deliberate learning in the context of post-acquisition integration. Acad. Management J. 55(3):703–726.CrossrefGoogle Scholar
  • Helfat CE, Finkelstein S, Mitchell W, Peteraf MA, Singh H, Teece DJ, Winter SG (2007) Dynamic Capabilities: Understanding Strategic Change in Organizations (Blackwell, Oxford, UK).Google Scholar
  • Hellman T, Lindsey L, Puri M (2008) Building relationships early: Banks in venture capital. Rev. Financial Stud. 21(2):513–541.CrossrefGoogle Scholar
  • Hoetker G (2005) How much you know versus how well I know you: Selecting a supplier for a technically innovative component. Strategic Management J. 26(1):75–96.CrossrefGoogle Scholar
  • Jap SD (2002) Online reverse auctions: Issues, themes, and prospects for the future. J. Acad. Marketing Sci. 30(4):506–525.CrossrefGoogle Scholar
  • Jap SD (2003) An exploratory study of the introduction of online reverse auctions. J. Marketing 63(3):96–107.CrossrefGoogle Scholar
  • Jones C, Hesterly WS, Borgatti SP (1997) A general theory of network governance: Exchange conditions and social mechanisms. Acad. Management Rev. 22(4):911–945.CrossrefGoogle Scholar
  • Jovanovic B (1979) Firm-specific capital and turnover. J. Political Econom. 87(6):1246–1260.CrossrefGoogle Scholar
  • Kahneman D, Tversky A (1979) Prospect theory: An analysis of decision under risk. Econometrica 47(2):263–292.CrossrefGoogle Scholar
  • Kale P, Singh H, Perlmutter H (2000) Learning and protection of proprietary assets in strategic alliances: Building relational capital. Strategic Management J. 21(3):217–237.CrossrefGoogle Scholar
  • Klein B, Leffler KB (1981) The role of market forces in assuring contractual performance. J. Political Econom. 89(4):615–641.CrossrefGoogle Scholar
  • Klein B, Crawford RG, Alchian AA (1978) Vertical integration, appropriable rents, and the competitive contracting process. J. Law Econom. 21(2):297–326.CrossrefGoogle Scholar
  • Lazzarini SG, Miller GJ, Zenger TR (2004) Order with some law: Complementarity versus substitution of formal and informal arrangements. J. Law, Econom., Organ. 20(2):261–298.CrossrefGoogle Scholar
  • Lazzarini SG, Miller GJ, Zenger TR (2008) Dealing with the paradox of embeddedness: The role of contracts and trust in facilitating movement out of committed relationships. Organ. Sci. 19(5):709–728.LinkGoogle Scholar
  • Levinthal DA, Fichman M (1988) Dynamics of interorganizational attachments: Auditor-client relationships. Admin. Sci. Quart. 33(3):345–369.CrossrefGoogle Scholar
  • Liu C (2009) A spatial ecology of structural holes: Scientists and communication at a biotechnology firm. Working paper, University of Toronto, Toronto.Google Scholar
  • MacLeod WB (2007) Reputations, relationships, and contract enforcement. J. Econom. Literature 45(3):595–628.CrossrefGoogle Scholar
  • Mares V, Swinkels JM (2008) First and second price mechanisms in procurement and other asymmetric auctions. Working paper, Washington University in St. Louis, St. Louis.Google Scholar
  • Marmaros D, Sacerdote B (2006) How do friendships form? Quart. J. Econom. 121(1):79–119.CrossrefGoogle Scholar
  • Masten SE (1984) Organization of production: Evidence from the aerospace industry. J. Law Econom. 27(2):403–417.CrossrefGoogle Scholar
  • Mayer KJ, Argyres NS (2004) Learning to contract: Evidence from the personal computer industry. Organ. Sci. 15(4):394–410.LinkGoogle Scholar
  • Maynard DW, Peräkylä A (2006) Language and social interaction. DeLamater J, ed. Handbook of Social Psychology (Kluwer Academic/Plenum Press, New York), 233–257.CrossrefGoogle Scholar
  • McFadden D (1973) Conditional logit analysis of qualitative choice behavior. Zarembka P, ed. Frontiers of Econometrics (Academic Press, New York), 105–142.Google Scholar
  • Monteverde K (1995) Technical dialog as an incentive for vertical integration in the semiconductor industry. Management Sci. 41(10):1624–1638.LinkGoogle Scholar
  • Mowery DC, Oxley JE, Silverman BS (1996) Strategic alliances and interfirm knowledge transfer. Strategic Management J. 17(Special issue):77–91.CrossrefGoogle Scholar
  • Nahapiet J, Ghoshal S (1998) Social capital, intellectual capital, and the organizational advantage. Acad. Management Rev. 23(2):242–266.CrossrefGoogle Scholar
  • Parkhe A (1993) Strategic alliance structuring: A game theoretic and transaction cost examination of interfirm cooperation. Acad. Management J. 36(4):794–829.CrossrefGoogle Scholar
  • Pisano GP (1989) Using equity participation to support exchange: Evidence from the biotechnology industry. J. Law, Econom. Organ. 5(1):109–126.Google Scholar
  • Pisano GP, Russo MV, Teece DJ (1988) Joint ventures and collaborative arrangements in the telecommunications equipment industry. Mowery D, ed. International Collaborative Ventures in U.S. Manufacturing (Ballinger, Cambridge, MA), 23–70.Google Scholar
  • Poppo L, Zenger TR (2002) Do formal contracts and relational governance function as substitutes or complements? Strategic Management J. 23(8):707–726.CrossrefGoogle Scholar
  • Poppo L, Zhou KZ, Ryu S (2008) Alternative origins to interorganizational trust: An interdependence perspective on the shadow of the past and the shadow of the future. Organ. Sci. 19(1):39–55.LinkGoogle Scholar
  • Portes A (1998) Social capital: Its origins and applications in modern sociology. Annual Rev. Sociol. 24:1–24.CrossrefGoogle Scholar
  • Puranam P, Vanneste BS (2009) Trust and governance: Untangling a tangled web. Acad. Management Rev. 34(1):11–31.CrossrefGoogle Scholar
  • Reuer JJ, Ariño A (2007) Strategic alliance contracts: Dimensions and determinants of contractual complexity. Strategic Management J. 28(3):313–330.CrossrefGoogle Scholar
  • Rowley T, Behrens D, Krackhardt D (2000) Redundant governance structures: An analysis of structural and relational embeddedness in the steel and semiconductor industries. Strategic Management J. 21(3):369–386.CrossrefGoogle Scholar
  • Seabright MA, Levinthal DA, Fichman M (1992) Role of individual attachments in the dissolution of interorganizational relationships. Acad. Management J. 35(1):122–160.CrossrefGoogle Scholar
  • Smeltzer LR, Carr AS (2003) Electronic reverse auctions: Promises, risks and conditions for success. Indust. Marketing Management 32(6):481–488.CrossrefGoogle Scholar
  • Sobel J (2002) Can we trust social capital? J. Econom. Literature 40(1):139–154.CrossrefGoogle Scholar
  • Solow RM (1999) Notes on social capital and economic performance. Dasgupta P, Serageldin I, eds. Social Capital: A Multifaceted Perspective (World Bank, Washington, DC), 6–12.Google Scholar
  • Tirole J (1999) Incomplete contracts: Where do we stand? Econometrica 67(4):741–781.CrossrefGoogle Scholar
  • Terviö M (2008) The difference that CEOs make: An assignment model approach. Amer. Econom. Rev. 98(3):642–668.CrossrefGoogle Scholar
  • Tunca TI, Wu Q (2009) Multiple sourcing and procurement process selection with bidding events. Management Sci. 55(5):763–780.LinkGoogle Scholar
  • Uzzi B (1997) Social structure and competition in inter-firm networks: The paradox of embeddedness. Admin. Sci. Quart. 42(1):35–67.CrossrefGoogle Scholar
  • Uzzi B (1999) Embeddedness in the making of financial capital: How social relations and networks benefit firms seeking financing, Amer. Sociol. Rev. 64(4):481–505.CrossrefGoogle Scholar
  • Uzzi B, Lancaster R (2004) Embeddedness and price formation in the corporate law market. Amer. Sociol. Rev. 69(3):319–344.CrossrefGoogle Scholar
  • Vanneste BS, Puranam P (2010) Repeated interaction and contractual detail: Identifying the learning effect. Organ. Sci. 21(1):186–201.LinkGoogle Scholar
  • Vanneste BS, Puranam P, Kretschmer T (2012) Trust over time in exchange relationships: Meta-analysis and theory. Working paper, INSEAD, Fontainebleau, France.Google Scholar
  • Villena VH, Revilla E, Choi TY (2011) The dark side of buyer-supplier relationships: A social capital perspective. J. Oper. Management 29(6):561–576.CrossrefGoogle Scholar
  • Williamson OE (1985) The Economic Institutions of Capitalism (Free Press, New York).Google Scholar
  • Zollo M, Reuer JJ, Singh H (2002) Interorganizational routines and performance in strategic alliances. Organ. Sci. 13(6):701–713.LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.