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- Agndal, Henrik, 1972, et al.
(författare)
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Managing appropriation concerns and coordination costs in complex vendor relationships: Integration and isolation as governance strategies
- 2023
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Ingår i: Industrial Marketing Management. - 0019-8501. ; 113, s. 116-127
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Tidskriftsartikel (refereegranskat)abstract
- Many studies have shown that the inter-organizational governance mechanisms required to manage appropriation concerns come into conflict with the mechanisms needed to manage coordination costs. Research has, however, largely left unanswered the question of how client organizations govern complex vendor relationships that involve multiple categories, transactions, and activities where appropriation concerns and coordination costs must be managed simultaneously. We propose that this may be achieved by utilizing two strategies; while integrating some activities, transactions and categories, others can be isolated. Drawing on 23 interviews as well asprocedural documents associated with vendor management, this study examines how a leading automotive manufacturer governs relationships with three vendors. The analysis reveals how corporate and operational-level staff combine formal and informal governance mechanisms as they pursue integration and isolation strategies, enabling the client organization to maintain and develop longterm complex relationships. Our findings lead us to question a tendency in the literature to regard isolation as negative and integration as an ideal strategy for managing long-term relationships. Only when utilized in tandem will isolation and integration strategies enable organizations to align the conflicting governance mechanisms required to manage appropriation concerns and coordination costs.
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- Agndal, Henrik, et al.
(författare)
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Market innovation in the transport and heavy vehicle market
- 2015
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Ingår i: Proceedings of the 27th Annual NOFOMA-Conference, Molde, 3-5 June, 2015..
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Konferensbidrag (refereegranskat)abstract
- PurposeThe purpose of this paper is to generate a greater understanding of the interrelatedness of new business models in the truck market and developments in the road transport sector.Design/methodology/approachBased on a three year research project in cooperation with a European heavy vehicle manufacturer, we present short case descriptions showing some of the main developments in the European trucking and transport markets. FindingsNew business models emerge both in the heavy vehicle and transportation markets, in complex ways involving multiple actors. The impetus for the models can come from several direction but the final impact must be negotiated and cannot be planned by a single actor.Research limitations/implications The research looks at a selection of cases and business models to demonstrate changes and the relations between the markets, and does not claim to be exhaustive in terms of the different business models in the European market. Practical implications There is a distinct trend to greater specialization and the need for innovation to survive given the strong pressures in the commoditized transport market. Our findings show conflicting trends in terms of social implications, with improved ecological impact but the risk of worse conditions for driver. Original/valueThe paper considers the development of new business models and implications on the market from the point of view of the firms actually using the business models. This shows how different business models can co-exist and involve different types of rationalities.
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