ICC Advance Access originally published online on May 4, 2006
Industrial and Corporate Change 2006 15(3):497-529; doi:10.1093/icc/dtl008
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Transaction cost economics, resource dependence theory, and customer–supplier relationships
Correspondence: Robert C. Fink, Department of Business Administration, Worcester State College, 486 Chandler Street, Worcester, MA 01886, USA. e-mail: rfink{at}worcester.edu
Correspondence: Linda F. Edelman, Management Department, Bentley College, 175 Forest Street, Waltham, MA 02451, USA. e-mail: ledelman{at}bentley.edu
Correspondence: Kenneth J. Hatten, School of Management, Boston University, 595 Commonwealth Avenue, Boston, MA 02215, USA. e-mail: kjhatten{at}bu.edu
Correspondence: William L. James, Zarb School of Business, Hofstra University, Hempstead, NY 11549, USA. e-mail: mktwlj{at}hofstra.edu
This study develops and then tests an expanded conceptual framework for understanding relational customer–supplier exchanges. The explanatory power of transaction cost economics and resource dependence theory is examined, first individually, and then the theories are unified to provide a more comprehensive model for understanding of firms’ decisions to pursue relational exchanges. Regression analyses performed on data from 372 pulp, paper, and paperboard mills indicate that the combined framework provides a better explanation of customer choices than either theory individually. Implications and future research are discussed.