Abstract
Purchasing arrangements for repetitively used industrial supplies assume many different forms. Drawing on transaction cost analysis, the authors advance a conceptual framework that organizes these arrangements along a continuum of relationships. They use data from a survey of 140 OEM purchasers of bearings to demonstrate that performance in terms of acquisition costs is enhanced when, under conditions of uncertainty, firms introduce more relational elements into their purchasing arrangements. Possession cost performance improved when larger volumes of bearings were purchased. Implications for theory and practice are discussed.
Keywords
PurchasingVendorTransaction costOriginal equipment manufacturerPossession (linguistics)BusinessIndustrial organizationMarketingDatabase transactionSurvey data collectionOperations managementComputer scienceEconomicsDatabaseFinance
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Publication Info
- Year
- 1990
- Type
- article
- Volume
- 54
- Issue
- 4
- Pages
- 80-93
- Citations
- 1557
- Access
- Closed
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Cite This
Thomas G. Noordewier,
George John,
John R. Nevin
(1990).
Performance Outcomes of Purchasing Arrangements in Industrial Buyer-Vendor Relationships.
Journal of Marketing
, 54
(4)
, 80-93.
https://doi.org/10.1177/002224299005400407
Identifiers
- DOI
- 10.1177/002224299005400407