Transaction Costs and standardisation in professional services to small business

Nooteboom, Bart; Zwart, P.S.; Bijmolt, Tammo H. A.

doi:10.1007/bf00389855

Cited by 15 publications

(11 citation statements)

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“…Spekman (1988, p. 78) discusses trust, commitment, and uncertainty in the context of long-term buyer relationships and concludes that "Collaboration grows from … the need for both parties to reduce the uncertainties inherent in any trading relationships." Customer uncertainty has been discussed in the context of professional relationships in particular (Wittreich, 1966;Gummesson, 1978;Bloom, 1984;Wheiler, 1987;Swartz and Brown, 1991;Nooteboom, Zwart, and Bijmolt, 1992…”

Section: Trustmentioning

confidence: 99%

Customer Commitment in Key Account Management

Ojasalo¹

2001

Mark. Rev.

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What is the nature of customer commitment in business-to-business relationships and what are its antecedents? What Key Account Management practices help to build customer commitment? Commitment is an important element of Key Account Management since customer relationships are built upon a the foundation of commitment. Building long-term key account relationships occurs by enhancing and maintaining their commitment. Customer commitment has various antecedents, and managing commitment involves focusing on these antecedents. This paper explains the nature of commitment and describes its antecedents. It also suggests how to manage each of these antecedents to strengthen customer commitment.

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Section: Trustmentioning

confidence: 99%

Customer Commitment in Key Account Management

Ojasalo¹

2001

Mark. Rev.

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“…According to Nooteboom, Zwart, and Bijmolt (1992) smaller firms are (more) bounded in their rationality. It is more difficult for smaller firms compared to larger firms to monitor suppliers' performance for instance.…”

Section: Firm Sizementioning

confidence: 99%

19. A Sociological View on Hierarchical Failure: The Effect of Organizational Rules on Exchange Performance in Buyer- Supplier Transactions

Rooks

Snijders

Tazelaar

2020

Advances in the Sociology of Trust and Cooperation

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The classic Transaction Cost Economics view is that a key reason for firms to exist is that they offer a way to overcome problematic market transactions. If it is too complicated, expensive, or risky to buy a good on the market, consider hiring employees to make it in-houseespecially if it is a good that you (and others) might need often. The implicit argument is that, for this reason, firms are a potentially rational response to less advantageous markets. However, firms are rational responses only when they themselves are organized in a way that is efficient enough to outperform the market. We consider firms' hierarchical efficiency by analyzing the existence and consequences of rules and procedures, effectively testing two competing arguments. On the one hand, rules and procedures are one way in which firms can achieve efficiency, through specialization and formalization of what a firm has learned. On the other hand, rules can be imprecise and rigid, a nuisance to deal with, and just coincidental traces of what has gone wrong in the past. Using a database of more than 800 transactions in which German small and medium sized businesses buy ICT products and services, we consider the role of rules and procedures in a large-scale quantitative way. It turns out that rules show a pyramid-like structure where some firms have less and others have more codified rules. Our results furthermore suggest that rules might not be the clotted efficiency they have been argued to be. A high rule-density goes with increased investments in contracting ("thicker contracts") and not with decreased ex post transaction problems, questioning the benefits of rules as a way to favor firms over markets. 19.1 Introduction Research into the management of inter firm exchange has, both theoretically and empirically, been dominated by transaction cost theory. The fundamental question addressed by transaction cost theory is why business firms exist (Williamson 1985; Coase 1937). Transaction cost theory proposes that in some cases markets fail to organize transactions efficiently, for instance when contractual hazards associated with transactions are too high. In such cases, instead of relying on the market to exchange

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“…Job standardisation could clarify work content and context, reduce role ambiguity, decrease role conflict and elucidate the performance standards of the service firm (Hsieh and Hsieh 2001). Moreover, it might have an influence on cost reduction (Nooteboom et al 1992).…”

Section: Gaps' Size According To the Researchmentioning

confidence: 99%

Service Quality Gaps and Their Role in Service Enterprises Development

Urban

2009

Technological and Economic Development of Economy

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abstract. The study takes into consideration the problem of organizational quality gaps where the quality losses occur. Many service quality gaps are reviewed in this paper. But the four out of five quality gaps by Parasuraman et al. (1985) are examined. The main management problem, according to research achievements, is the gap between managers' perception of customers' expectation and service specifications existing in organizations. In a service organization usually more quality gaps might be identified. Identification of specific quality gaps is advantageous from a management point of view.

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Transaction Costs and standardisation in professional services to small business

Cited by 15 publications

References 1 publication

Customer Commitment in Key Account Management

Customer Commitment in Key Account Management

19. A Sociological View on Hierarchical Failure: The Effect of Organizational Rules on Exchange Performance in Buyer- Supplier Transactions

Service Quality Gaps and Their Role in Service Enterprises Development

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