ISBM Pulse: transaction cost analysis

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Relationship Governance Dynamics: The Roles of Partner Selection Efforts and Mutual Investments (Wathne et al.) (open access)

Reseller selection efforts are costly, time consuming, and are sometimes questioned as effective governance mechanisms. Nevertheless, reseller selection efforts are justified as they lower suppliers’ ex post transaction costs amd weaken the likelihood of resellers’ possible exploitation of supplier-reseller relationship in the case of supplier’s investments in the relationship, and promote value creation. Analyzing two waves of surveys in a B2B supplier-reseller context, the authors of this study insights on relationship governance dynamics of reseller selection efforts.

Ferris wheel

Marketing Channel Management by Multinational Corporations in Foreign Markets (Grewal et al.)

Multinational corporations require ongoing management of marketing channels, leading to challenges rooted in complex relationships between HQ-subsidiaries, subsidiaries-local channel partners, and third-party mediators at each host country level. For effective channel management, HQ should align subsidiary goals with HQ’s strategic motives and leverage subsidiary networks. This could be achieved by informal decision-making processes with subsidiaries to boost performance, or by moving employees across subsidiary networks.