Abstract
In bilateral interorganizational relationships, individual firm's self-interest is subordinate to the larger interest of the collective system. Bilateral governance is facilitated by exclusivity under certain conditions. Exclusive relationships draw partners closer and improve coordination. However, exclusivity leads to a loss of flexibility in dealing with turbulent environments. We test relationships between exclusivity and antecedent variables from transaction-cost analysis, resource-dependence theory, and organization theory. We find that while relationship-specific investment calls for more exclusivity, interdependence and rapid technological change call for less. Further, in the computer and semiconductor industry, exclusivity is negatively related to perceived effectiveness. Hence exclusivity should be used judiciously in the management of bilateral interrorganizational relationships.
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Sengupta, S. Some antecedents of exclusivity in bilateral interorganizational relationships. Marketing Letters 6, 33–44 (1995). https://doi.org/10.1007/BF00994038
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DOI: https://doi.org/10.1007/BF00994038