Please use this identifier to cite or link to this item: https://repositorio.insper.edu.br/handle/11224/4521
Type: Artigo Científico
Title: Determinants of contract renewals in business-to-business relationships
Author: Cabral, Sandro
Ribeiro, Priscila Fernandes
Romão, Sanders Zurdo
Publication Date: 2020
Abstract: Purpose This paper aims to analyze the underlying factors of contract renewals in business-to-business (B2B) contracts. Design/methodology/approach The authors build a unique data set with 296 contracts signed between a major firm supplying petrochemical goods and its 128 customers between 2013 and 2016. They use Insider Econometrics as their methodological approach. Findings The econometric results suggest that contracts involving higher volume of trade, higher levels of dedicated assets representing seller’s specific investments in each transaction, and contracts comprising more than one product present an increased likelihood of being renewed. Research limitations/implications Although limited to a single organization, this paper contributes to management theories focused on buyer–supplier relationships in which coordination between interdependent parties is required. Practical implications Practitioners engaged in B2B relationships may benefit from the findings to shape their bargaining strategies in contexts of high levels of asset specificity and bilateral dependence. Originality/value This paper contribute to theories related to the strategic negotiation between buyers and suppliers by emphasizing the importance of asset specificity in a nuanced and multifaceted fashion, by highlighting aspects related to resource dependency, and idiosyncratic characteristics on contract renewal.
Keywords (english terms): Transaction costs
Buyer–supplier relationships
B2B contracts
Contracts renewal
Language: Inglês
CNPq Area: Ciências Sociais Aplicadas
URI: https://www.scielo.br/j/rmj/a/nkdRzNwCVFxLQnhJfxTSqWc/abstract/?lang=en
Copyright: O INSPER E ESTE REPOSITÓRIO NÃO DETÊM OS DIREITOS DE USO E REPRODUÇÃO DOS CONTEÚDOS AQUI REGISTRADOS. É RESPONSABILIDADE DOS USUÁRIOS INDIVIDUAIS VERIFICAR OS USOS PERMITIDOS NA FONTE ORIGINAL, RESPEITANDO-SE OS DIREITOS DE AUTOR OU EDITOR;
Appears in Collections:Coleção de Artigos Científicos

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