Governance Value Analysis and Marketing Strategy

Abstract

The authors extend transaction cost analysis into a governance value analysis (GVA) framework to address marketing strategy decisions, especially with regard to strategies grounded in cooperative relationships. The GVA is a four-part model. Heterogeneous resources, positioning, the consequent attributes of exchange, and governance form all interact to determine success in creating and claiming value. The trade-offs among these factors are the core insight offered by the modei. The authors illustrate these trade-offs and specify empirically refutable implications. Finaiiy, they sketch directions for future work and a blueprint for managerial decision making.

Unlocking value from machines: business models and the industrial internet of things

“…As asset owners act as residual claimants, they bear the consequences of all uncertainties not specified in a contract (Barzel, 1987(Barzel, , 1997Ghosh & John, 1999;Grossman & Hart, 1986;Ng, Ding, & Yip, 2013).…”

The bonding effects of relationship value and switching costs in industrial buyer–seller relationships: An investigation into role differences

“…Anderson, 1995;Ghosh & John, 1999;Madhok & Tallman, 1998;Zajac & Olsen, 1993), others see TCA as a starting point for analyzing value creation between exchange partners. Kleinaltenkamp and Ehret (2006) position specific investments as a source of switching costs but also as an important source of value creation.…”

“…Since specific investments are particular to the focal relationship, the associated gain referred to as "quasirent" can only be realized between the involved parties (Backhaus & Büschken, 1999). By making specific investments for a customer, a supplier can help this particular customer in developing more efficient operations or in better differentiating its market offerings (Ghosh & John, 1999).…”

Risk assessment and profit sharing in business networks

“…Due to its uniqueness, the concept of the Shapley value has found numerous applications in economics and political sciences (Aumann, 1994). As observed in Ghosh and John (1999) claiming quasi rents in network is an issue as important as creating it; several studies suggest that the solution is based on a mix of observable components and discretionary decisions and both are based on fair principles.…”