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.