Managing Coordination Costs of Interorganizational Relationships: An Analysis of Determinants

Authors

Geng Zhang, Department of Management Science, Xiamen University, Xiamen, P.R.ChinaFollow
Zhenyu Liu, Department of Management Science, Xiamen University, Xiamen, P.R.ChinaFollow

Document Type

Article

Abstract

This paper presents a framework of the determinants analysis of the control of interorganizational relationships (IOR). While drawing on transaction cost analysis and resource-dependency theory, the authors analyze the effects of asset specificity, environmental uncertainty, level of dependence and trust on coordination costs of IOR. The explanatory power of the framework is assessed by a case study of buyer-supplier relationships from manufacturing industry in China. The findings from the case study suggest asset specificity, environmental uncertainty, and trust are the main determinants influencing coordination costs of buyer in IOR.

Recommended Citation

Zhang, Geng and Liu, Zhenyu, "Managing Coordination Costs of Interorganizational Relationships: An Analysis of Determinants" (2005). ICEB 2005 Proceedings (Hong Kong, SAR China). 12.
https://aisel.aisnet.org/iceb2005/12