Activity Coordination and Resource Combining in Distribution Networks - Implications for Relationship Involvement and the Relationship Atmosphere

Abstract

Technical developments in production, transportation, and information systems have resulted in new distribution channel arrangements. The new conditions have affected the atmosphere in distribution channels encouraging more cooperative relationships. The main reason for this change is that activity interdependencies in the evolving networks have increasingly come to cross corporate boundaries and this makes enhanced coordination among firms necessary. Consequently, the resources of the parties have become more integrated and, furthermore, individual firms are increasingly reliant on resources controlled by others. The objective of the paper is to analyze and compare contemporary distribution networks with 'traditional' channels in terms of activity coordination, resource combining, and producerdistributor relationships. On the basis of this discussion the paper concludes with a discussion of managerial implications for relationship involvement and the relationship atmosphere. The main finding is that power and conflict are just as important in today's distribution networks as they have been in traditional channels, but they are exploited in different ways than previously.

Using Corporate Identity Artifacts to Shape the Practices of New Strategic Business Relationships

“…Additionally, the study shows how CI artifacts are used through a translation process, become embedded in boundary objects and shape the unfolding practices of those trying to make the relationship work. This finding extends research in relationship atmosphere and supply chain culture (Gadde, 2004;Hult, Ketchen, & Arrfelt, 2007) and provides evidence of how specific relationship development activities create trust and commitment (Crespin-Mazet & Ghauri, 2007).…”

The dynamics of networked power in a concentrated business network

“…This focus is notable since there are alternative ways to coordinate marketing channels (Teece, 1992;Morgan and Hunt, 1994;Brown, Lusch and Nicholson, 1995;Gadde, 2004;Gripsrud, 2004), such as via trust and commitment (Brown, Lusch, and Nicholson, 1995;Duarte and Davies, 2003;Morgan and Hunt, 1994), which have become central to understanding inter-organizational relationships (Dwyer, Schurr and Oh, 1987;Van de Ven, 1992, 1994) and channels (Young and Wilkinson, 1989). Indeed, the study of interorganizational power has been significantly downplayed to the benefit of other aspects of relational governance such as long-term interactions and the forming of inter-organizational networks (e.g., Gadde, 2004;Gadde and Ford, 2008;Gripsrud, 2004;Håkansson, et al, 2009).…”

“…Indeed, the study of interorganizational power has been significantly downplayed to the benefit of other aspects of relational governance such as long-term interactions and the forming of inter-organizational networks (e.g., Gadde, 2004;Gadde and Ford, 2008;Gripsrud, 2004;Håkansson, et al, 2009). …”

“…Influencing, cooperation, leveraging and strategic maneuvering are all issues related to power in networks. These are overlooked in current marketing channel research and the actual performance of power in networks is neglected by the IMP community (Gripsrud, 2004;Gadde, 2004).…”

Market policy and destructive network effects

“…The economic logic behind interaction here is that actors will benefit mutually by sharing and combining resources and activities across firm boundaries, instead of regarding them as internal matters (Dubois 1998;Håkansson and Waluszewski 2002). Resources will be more valuable as they are combined with resources of other actors and activities are performed more efficiently when adapted to the activities of other actors (Gadde 2004;Håkansson and Waluszewski 2002;Jahre et al 2006). For this to take place there have to prevail strong actor bonds such as trust, mutual understanding, learning and a cooperative atmosphere.…”