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    Interfirm monitoring, social contracts, and relationship outcomes

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    Author
    Heide, JB; Wathne, KH; Rokkan, AI
    Date
    2007-08-01
    Source Title
    Journal of Marketing Research
    Publisher
    SAGE PUBLICATIONS INC
    University of Melbourne Author/s
    Heide, Jan
    Affiliation
    Management and Marketing
    Metadata
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    Document Type
    Journal Article
    Citations
    Heide, J. B., Wathne, K. H. & Rokkan, A. I. (2007). Interfirm monitoring, social contracts, and relationship outcomes. JOURNAL OF MARKETING RESEARCH, 44 (3), pp.425-433. https://doi.org/10.1509/jmkr.44.3.425.
    Access Status
    This item is currently not available from this repository
    URI
    http://hdl.handle.net/11343/30195
    DOI
    10.1509/jmkr.44.3.425
    Abstract
    <jats:p> This article examines the effects of monitoring on interfirm relationships. Whereas some research suggests that monitoring can serve as a control mechanism that reduces exchange partner opportunism, there is also evidence showing that monitoring can actually promote such behavior. The authors propose that the actual effect of monitoring depends on (1) the form of monitoring used (output versus behavior) and (2) the context in which monitoring takes place. With regard to the form of monitoring, the results from a longitudinal field study of buyer–supplier relationships show that output monitoring decreases partner opportunism, as transaction cost and agency theory predict, whereas behavior monitoring, which is a more obtrusive form of control, increases partner opportunism. With regard to the context, the authors find that informal relationship elements in the form of microlevel social contracts serve as buffers that both enhance the effects of output monitoring and permit behavior monitoring to suppress opportunism in the first place. </jats:p>
    Keywords
    Marketing

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