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Price, authority and trust in international distribution channel relationships

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  • Haugland, Sven A.
  • Reve, Torger

Abstract

This paper focuses on inter-firm transactions in international distribution channels. Special interest is paid to the governance of inter-firm transactions. We argue that price, authority and trust represent different governance mechanisms, which can be combined into a governance vector. Price reflects the use of market mechanisms, while authority means the reliance on organizational mechanisms such as rules and procedures. Trust, on the other hand, implies monitoring transactions by social norms and the development of personal relationships. A model is developed and empirically explored in the context of international distribution of Norwegian farmed salmon.

Suggested Citation

  • Haugland, Sven A. & Reve, Torger, 1994. "Price, authority and trust in international distribution channel relationships," Scandinavian Journal of Management, Elsevier, vol. 10(3), pages 225-244, September.
    • Handle: RePEc:eee:scaman:v:10:y:1994:i:3:p:225-244
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    Cited by:

    1. Hakansson, Hakan & Lind, Johnny, 2004. "Accounting and network coordination," Accounting, Organizations and Society, Elsevier, vol. 29(1), pages 51-72, January.
    2. Ness, Havard & Haugland, Sven A., 2005. "The evolution of governance mechanisms and negotiation strategies in fixed-duration interfirm relationships," Journal of Business Research, Elsevier, vol. 58(9), pages 1226-1239, September.

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