The two basic relationship types of market exchange and partnerships are divided further based on eight factors shown in column 1 of Table 8.1. Varying values of these factors represent situations where the organizations reach greater levels of integration and provide greater returns to both sides of the relationship.
|
(1) Market exchanges |
(2) Partnerships |
|||
|---|---|---|---|---|
|
Factors involved in the relationship |
Solo exchange |
Functional relationship |
Relational partnership |
Strategic partnership |
|
Time horizon |
short term |
long term |
long term |
long term |
|
Concern for the party |
low |
low |
medium |
high |
|
Trust |
low |
low |
high |
high |
|
Investment in relationship |
low |
low |
low |
high |
|
Nature of relationship |
conflict, bargaining |
cooperation |
accommodation |
coordination |
|
Risk in relationship |
low |
medium |
high |
high |
|
Potential benefits |
low |
medium |
high |
high |
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