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Hazards of the Market

The Continuity and Dissolution of Interorganizational Market Relationships

Datos Bibliográficos

ID5248554
AutoresWayne E Baker, Robert R Faulkner, Gene A Fisher
Año1998
Volumen63
Número2
Páginas147
Fecha de publicación1998-04-01
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaAmerican Sociological Review (JOURNAL)
Identificadores de la revistaISSN: 0003-1224 • E-ISSN: 1939-8271
EditorialSAGE Publications Inc (PUBLISHER)
DOI10.2307/2657321
OpenAlexW2091400259
IdiomaEN
Citas recibidas66

We propose a theory of the market as an intertemporal process that integrates multiple theoretical perspectives. Using event-history methods, we analyze the dissolution of interorganizational market ties between advertising agencies and their clients as a function of three forces-competition, power, and institutional forces. The informal rules of institutionalized in the emergence phase of the advertising services market include exclusivity (sole-source) and loyalty (infrequent switching). We find that most exchange relationships between advertising agencies and their clients are indeed exclusive, and most last for several years; but competition, power, and institutional forces support or undermine these rules. Most institutional forces reduce the risk of dissolution of agency-client ties. Powerful advertising agencies mobilize resources to increase tie stability, but powerful clients mobilize resources to increase or decrease stability. Competition is the weakest market force, but it has a consistent and substantial effect on tie dissolution: Competition always increases the risk of dissolution. We conclude that the market is institutionalized as imperfectly repeated patterns of exchange, because competition and changing norms about the duration of market ties destabilize market relationships

Agency (philosophy · Business · Competition (biology · Economics · Function (biology · Industrial organization · Loyalty · Market concentration · Market economy · Market power · Market structure · Power (physics · Sociology · Business Strategy and Innovation · Innovation and Knowledge Management · Management and Organizational Studies · Marketing

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Obras citantes distintas66
Citas por año2,44
Intervalo de citas1999 - 2024 (26)
Velocidad de citaciónrecent
Altamente citadoNo
Tipos de citaNeutras: 66
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