Communication Networks in Intermediate Markets

Abstract

Most commodities move from points of production through successive stages of processing or manufacture and further stages of intermediate distribution before reaching points of final purchase. The final value of a commodity, in fact, is often analyzed by observing the amounts of labor and capital services that are added to it at each of these stages by the firm which owns it at each stage. The setting of the problem is this. Successive stages of dealing in a commodity are in general required on account of any of the following considerations: a) an activity may need to be undertaken at a different scale--i.e., plant size--than that at which a preceding or a succeeding activity needs to be conducted; b) changes in the combinations of commodities may be required from one stage to another; or c) information and contacts need to be mobilized in order to connect disparate groups of actors in the complex of activities.

A systems approach to measuring retail structure in Germany and the Netherlands

“…"Based on transaction data in Table 1. A theoretical framework explaining the interdependencies in the distributive sector has been given by Balderston (1958). He derives the necessity of intermediaries in the context of communication networks and minimization of transaction costs.…”

The Evolution of Marketing Channel Research Domains and Methodologies: An Integrative Review and Future Directions

“…How can the coexistence of different channel structures in the same market be explained? Much of this research was analytical in nature, applying economic principles to explain forms of vertical market structures observed in the marketplace (e.g., Balderston 1958;Baligh and Richartz 1967;Bucklin 1965). At the same time, a stream of operational or decision support modeling research began.…”

Stay in or get out the Janus? The maintenance of multiplex relationships between buyers and sellers

“…Building on the commodity approach, other studies have further explored the efficiency dimension of relationship outcomes, and the added value that the end customer derives. Scholars who embrace the institutionalism approach have shifted the perspective from the manufacturer to the distributor, thus indicating specialization as a key source of efficiency (Alderson, 1954(Alderson, , 1957Artle & Berglund, 1959;Balderston, 1958). Functionalism research has broadened the scope of the analysis from the single dyad to a structural network of relationships within the distribution channel, seeking the key source of value creation (Bucklin, 1966;Mallen, 1973) and appropriation in the optimization of channel configurations (Bucklin, 1970;Corstjens & Doyle, 1979;McGuire & Staelin, 1983;Richartz, 1970;Zusman & Etgar, 1981).…”