Achieving Strategic Advantages in Long-Term, Buyer-Supplier Relationships: A Longitudinal Investigation (Classic Reprint)

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Excerpt from Achieving Strategic Advantages in Long-Term, Buyer-Supplier Relationships: A Longitudinal Investigation

The development of strategic advantages positions of superior performance is key to a firm's survival. Recently, there has been a growing interest among both practitioners and academics in strategic advantages developed through buyer-supplier relationships. Such advantages are particularly long-lasting relative to advantages created through product differentiation, brand loyalty, or technological superiority, because they are created in the context of a dyadic exchange relationship that is inherently difficult for competitors to observe and duplicate.

Consider the following example. When Intel and Ford work together to design a unique microprocessor that optimizes the performance of a new Ford automobile, the Ford car is able to provide superior value compared to a General Motors (gm) car using a standard microprocessor available to all automobile manufacturers. Both Ford and Intel benefit from the investment in this idiosyncratic microprocessor. Ford sells more cars and Intel sells the microprocessors used in the cars. To match the automobile performance achieved through the ford-intel relationship, General Motors must build a similar relationship with Intel or another microprocessor supplier to develop a microprocessor that optimizes its car design. Building such a relationship takes considerable time and effort and involves tacit, complex, and specific information of both firms. Since it is unobservable by competing dyads, the resulting competitive advantages accruing to the dyad are sustainable over a long period of time.

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This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.


Publisher - Forgotten Books

Language - English

Author(s) - Sandy D. Jap


Published Date - August 30 2019

ISBN - 9780656364398

Dimesions - 22.9 x 15.2 x 0.6 cm

Page Count - 56

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