Paper info: Governance Mechanisms and Price Level:An Empirical Study in Vertical Business-to-Business Relationships
Governance Mechanisms and Price Level:An Empirical Study in Vertical Business-to-Business Relationships
Place of Publication
The paper was published at the 25th IMP-conference in Marseille, France in 2009.
There is an increasing interest in the topic of governance of inter-organizational exchanges. This paper contributes to this field by examining the link between the use of several governance mechanisms (specific investments, trust, norms, and contracts) in buyer-supplier relationships and the price level customer firms are willing to pay. It is based on a survey among purchasing managers (n = 297). Using regression analysis we find a significant positive link between relational norms and price level.