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Paper info: CREATING VALUE THROUGH INTERMEDIARIES

Title


CREATING VALUE THROUGH INTERMEDIARIES

Authors


Jens Geersbro
Copenhagen Business School
Denmark
Jens Geersbro and Mette Vedel

Place of Publication


The paper was published at the 24th IMP-conference in Uppsala, Sweden in 2008.

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Abstract


This paper focuses on the perceived buyer value of intermediated channels for building articles made to order. In order to include the co-creation aspect, this paper applies a triadic approach to describe, analyze, and understand the value creation in intermediary connected business relationships. The first section presents a review of literature on intermediaries and value. The following section presents the framework for the study. Moreover, we apply the framework to initial explorative results from a number of interviews with buyers. The initial results strongly point to a situation in the network characterized by inertia. The value creation is questioned, especially by the large buyers, who incur high acquisition cost in direct interaction with suppliers, because the merchants lack knowledge for customization of ordered goods. This situation is regarded as incompatible with trade-terms which endow merchants with a commission for ordered goods. As our study is highly explorative it leaves many interesting aspects to be investigated further. But it is clear to us that this field of research will benefit from a triadic research perspective. Although the study is in an early stage, the framework can help business managers better understand how indirect relationships through intermediaries create value.