The Role of Economic Value, Social Value, and Perceptions of Fairness in Interorganizational Relationship Retention Decisions

Abstract

Although previous research provides a foundation for developing, maintaining, and exiting relationships, the extant literature has yet to consider the influence that patterns of economic and social forces have in guiding the future of deteriorating relationships. To understand better and respond to relationships in decline and to salvage relationships that are destined to fail needlessly, the authors use the political economic paradigm to identify symptoms of deteriorating relationships and provide a framework for combining relational forces that best guides relationship retention decisions. They propose a model based on the theoretical foundations of transactional cost analysis (TCA), social exchange, and distributive justice. Using relative dependence, interdependence, and mutual dependence to define the economic and social worth of the relationship, they incorporate dyadic patterns of behavior to illustrate similar and different interpretations and evaluations of fairness and the impact on relational out-comes. The article culminates with managerial implications and directions for future research.