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Evaluation Of Theoretical Paradigms Of Interfirm Relationship Formation

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  • Mohammed BELAL UDDIN

    (Comilla University, Bangladesh)

Abstract

The aim of this paper is to check the existing theories that designate interfirm relationship formation. Transaction cost economics, resource based view, social network theory, strategic choice theory, organizational learning theory, and institutional theory designate interfirm relationship formation. These broadly used theories are included in this paper. This paper finds that while each theory is useful, each is also inadequate to confine the complexities implicated in interfirm relationship formation. Competitive advantage, learning, risk sharing, cost minimization, information sharing etc. are the reasons to join in a relationship. As a result, it is suggested that the combination of the theoretical paradigms offers a more useful way of understanding the interfirm relationship formation.

Suggested Citation

  • Mohammed BELAL UDDIN, 2017. "Evaluation Of Theoretical Paradigms Of Interfirm Relationship Formation," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 106-114, May.
    • Handle: RePEc:aio:manmar:v:xv:y:2017:i:1:p:106-114
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    References listed on IDEAS

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    More about this item

    Keywords

    Interfirm relationship; Theory; Transaction cost economics; Learning; Legitimacy;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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