Market Exchange, Social Structures and Time

Abstract

Two important, although neglected, dimensions of market exchange are the temporal and the social. Exchanges, particularly those between organizations, may be thought of as embedded in a social framework which rewards continuity. Similarly exchanges between the same entities which recur over time take on a different character from those which are instantaneous and atomistic. Such patterns of exchange create a framework, of among other things, expectations, trust, adaptations and investments which can be said to comprise the elements of a relationship. Addresses the many reasons why individuals, but especially organizations, choose to give up freedom of choice and the open market for the confines of a stable and long‐term relationship. Where such relationships exist they provide a measure of continuity in the workings of markets. This, in turn, gives rise to enduring structures which have been labelled industrial networks. Such structures provide an important framework for exchanges within a market since they introduce interdependence and stability into the system. Markets are thus networks of connected exchange relationships, among individuals and organizations, located in time and space, and whose identity is both the product and the outcome of these exchange patterns.

Using actors' perceptions of network roles and positions to understand network dynamics

“…Similar issues are been discussed by (Easton and Araujo, 1994), stating that in traditional market transactions, the goal of both parties is to bring everything from the past and everything in the future to the immediate present -thereby creating a compressed and bounded time frame. They suggest that in exchange relationships, actors tend to merge past, present and future in a continuum where the parties take into account learning from their connected relationships, and these experiences are shaped and projected to the future as "parties attempt to structure and control their own trajectories of evolution" (Araujo and Easton, 1996, p. 77).…”

Modeling the Effect of Losing a Key Individual on Internal and External Relationships

“…The interaction approach (Håkans-son 1982), considers the processes involved in relationship building (including mutual adaptation), the participants involved, the atmosphere surrounding the relationship (e. g. power /dependence and cooperation) and the overall environment (e. g. market structure and position in the supply chain). However, although the notion of process is critical to the understanding of the interaction approach, multi-stage models of relationship development (Ford 1980, Dwyer et al 1987) and many relationship marketing models (e. g. Christopher et al 1991, time is not always considered with respect to the research that we undertake (there are some exceptions, e. g. Easton and Araujo 1994, Halinen 1994, Medlin 2004.…”

Valuing customer relationships: Using the capital asset pricing model (CAPM) to incorporate relationship risk

“…The 'cost to serve' a customer includes many types of expenses that have been categorised in various ways. [28][29][30][31] Costs such as the 'cost of sales' and specific entertainment costs can be readily traced and apportioned to particular customers. Average debtor days per customer allow accurate calculation of 'costs of financing'.…”