Sven A. Haugland

Developing relational exchange

Argues that relational exchange is dependent upon both effectiveness and power considerations. The primary objective is to study the effect of power and effectiveness on the relational exchange process between voluntary retail chains and their vendors. In particular, proposes that relational exchange between the chain and the vendor is dependent on (1) the chain’s ability to obtain necessary coordination and limiting free‐riding within the chain system, as well as (2) creating a symmetrical dependence structure that fosters trust and long‐term commitment. The first issue is related to effectiveness, while the second issue concerns aspects of power. The hypotheses were tested on a sample of relations between voluntary retail chains and their suppliers in Norway. Results suggest that free‐riding within the chain, number of chain members and asymmetry of market position are negatively related to relational exchange.

Factors Influencing the Duration of International Buyer–Seller Relationships

Abstract This paper focuses on factors influencing the duration of buyer–seller relationships. Based on transaction cost economics and relational exchange theory, we discuss key constructs describing long-term relationships and develop hypotheses that can explain differences between long-term and short-term relationships. By using longitudinal data from relationships between Norwegian exporters of farmed salmon and importers in the United States and Japan, we empirically test the relationship duration hypotheses. Our results indicate that relational investments are positively associated with relationship duration; whereas, hierarchical governance mechanisms are negatively associated with relationship duration. Furthermore, the results suggest that governance by relational norms is an important element in designing durable relationships.

Performance Spillover Effects in Entrepreneurial Networks: Assessing a Dyadic Theory of Social Capital

We study how social capital induces performance spillover effects in an industry network of entrepreneurs building their own hydroelectric micro–power plants. Most of them are farmers and novices living in rural areas. There is a link between social capital and performance at firm level. By expanding the level of analysis to dyads, we find that entrepreneurs lacking social capital can compensate for this through cohesion with colleagues rich in social capital. Entrepreneurs can also benefit by mimicking the networking patterns of successful colleagues, gaining access to equivalent resources developed in the niche.

Destination Development The Role of Interdestination Bridge Ties

We explore the contribution of interdestination ties to destination development. As destinations search for practices that can be used to improve their co-producing efforts, they make use of actors connecting them to other destinations. Thus, interdestination bridge ties have important roles as information conduits in destination networks. We present a case study showing how public sector actors, multidestination actors, and industry-specific product and service providers play important and complementary roles in this developmental process. The study also indicates that bridge ties can initiate network dynamics. We present a novel set of propositions advancing a network perspective of destinations.

Coordinated action in reverse distribution systems

Purpose – The purpose of this paper is to address the prerequisites for achieving coordinated action in reverse distribution systems. It is an underlying assumption in distribution, logistics and supply chain management that a higher level of coordination between the actors is superior to a lower, and a higher levels of coordination will in turn lead to increased performance. Coordination requires the actors to implement efficient coordination mechanisms. The separate distribution flows need to be coordinated individually with appropriate coordination mechanisms. Furthermore, actors need to pay close attention to how different coordination mechanisms co‐exist in order to achieve a higher level of coordinated action and superior system performance.Design/methodology/approach – The paper is based on a comparative case study of reverse distribution systems for electrical and electronic products in Norway.Findings – The empirical results indicate that lack of coordination across flows increases costs and redu...

Why Do Business Partners Divorce? The Role of Cultural Distance in Inter-Firm Conflict Behavior

ABSTRACT This research discusses reasons for dissolution of business relationships. By means of a case study of a dispute that ended in a lengthy court battle, an exploration of one predisposing factor that existed before the unfortunate relationship was established is undertaken. Factors addressed are cultural distance in terms of different degree of relative uncertainty avoidance and power distance. Conclusions indicated that, under certain circumstances, cultural distance is so wide that the relationship should never have been established in the first place. The aim is to increase managers awareness when selecting new business partners, and to improve strategies for recovering faltering relationships. The article ends by discussing managerial implications.

Price, authority and trust in international distribution channel relationships

This paper focuses on inter-firm transactions in international distribution channels. Special interest is paid to the governance of inter-firm transactions. We argue that price, authority and trust represent different governance mechanisms, which can be combined into a governance vector. Price reflects the use of market mechanisms, while authority means the reliance on organizational mechanisms such as rules and procedures. Trust, on the other hand, implies monitoring transactions by social norms and the development of personal relationships. A model is developed and empirically explored in the context of international distribution of Norwegian farmed salmon.

SMBs in search of international strategic alliances: Perceived importance of personal information sources

Abstract This study addresses the issue of how small- and medium-sized companies seek information about potential international partners for cooperation. In particular, we focus on two sources of information: direct personal information (DIRPI) and indirect personal information (INPI). We argue that the use of these sources is related to how closely related the planned alliance is to the strategic core of the company, the degree of dissimilarity among potential partners, the degree of expected opportunism from potential partners and prior experience with cooperation. Our hypotheses were tested on a sample of small- and medium-sized companies. The results indicate that the planned alliances closeness to the strategic core of the company and partner dissimilarity are important predictors for how managers seek information about potential partners.

Cooperative relationships in competitive markets

Abstract This paper focuses on cooperative and relationships in competitive markets. According to economic theory, stable relationships between buyer and seller should only emerge due to some kind of market deficiencies. However, our results suggest that buyer and seller cooperate and develop relationships in a competitive market. In the international salmon industry, importers tend to concentrate their import on one or a few exporters only. However, the importers will occasionally buy salmon from other exporters. This observation indicates that both cooperation and competition will be present in a competitive market. For buyers and sellers there may be efficiency gains by both cooperating and being exposed to competition.

Formation of Reputation in Business Markets

ABSTRACT Purpose: This study adopts a relational perspective on reputation. We investigate how relationship characteristics impact a customer’s judgment of supplier reputation. We include characteristics at both the interfirm and interpersonal levels, and we additionally link these characteristics to interfirm trust in order to explore similarities and differences between reputation and interfirm trust. Methodology/approach: A survey was conducted among firms in the Norwegian offshore oil and gas industry. We assessed the measurement model and tested the hypotheses by applying LISREL. Findings: The results show that the customer’s dependence on the supplier, common knowledge, and interpersonal trust are positively related to reputation, while opportunism is negatively related to reputation. Reputation is positively linked to interfirm trust, and both reputation and interfirm trust impact the customer’s satisfaction with the supplier. Research implications: This study sheds light on the role of relational mechanisms in reputation formation. It suggests that reputation primarily consists of cognitive components, while interfirm trust consists of more affective components. Reputation is an important factor in developing interfirm trust. Practical implications: This study underscores the importance of a firm’s core relationships to customers for developing its reputation. Managers need to carefully develop their relationships to customers in such a way that these relationships are consistent with and confirm the reputation they want to build. Originality/value: The study supports the view that relational characteristics play important roles in the formation of reputation in business markets.