Buying High Tech Products

48 Pages Posted: 26 Aug 2006

See all articles by Stefan Wuyts

Stefan Wuyts

Catholic University of Leuven (KUL); Erasmus Research Institute of Management (ERIM)

S. Stremersch

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Philip Hans Franses

Erasmus University Rotterdam (EUR) - Department of Econometrics

Date Written: 21 2001 5,

Abstract

Prior research on technology-intensive (TI) markets makes abstraction of the social context in which transactions take place. In contrast with this prior literature, the authors show that buyer-vendor transactions in TI markets are relationally and structurally embedded in an interfirm network. Their main premise is that buyers in TI markets prefer vendors with whom they can share a strong tie, and that in turn buyers want these vendors to share strong ties with their component manufacturers. This is an important addition to TI literature and to the on-going debate on the strength of ties in the sociology, management and marketing literatures. The authors also specifically consider how characteristics focal to TI markets, such as the know-how buyers possess or the pace of technological change they perceive, affect the extent to which buying behavior is relationally and structurally embedded. An empirical test in the computer network market shows good support for the developed theory.

Keywords: technology-intensive markets, embeddedness, buying behavior, tie strength, conjoint analysis

JEL Classification: M, M31, C44

Suggested Citation

Wuyts, Stefan and Stremersch, Stefan and Franses, Philip Hans, Buying High Tech Products (21 2001 5,). ERIM Report Series Reference No. ERS-2001-27-MKT, Available at SSRN: https://ssrn.com/abstract=370886

Stefan Wuyts (Contact Author)

Catholic University of Leuven (KUL) ( email )

Oude Markt 13
Leuven, Vlaams-Brabant
Belgium
+32 16 325007 (Phone)
+32 16 324713 (Fax)

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Stefan Stremersch

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands
+31 10 408 8719 (Phone)
+31 10 408 9160 (Fax)

Philip Hans Franses

Erasmus University Rotterdam (EUR) - Department of Econometrics ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 1278 (Phone)
+31 10 408 9162 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
239
Abstract Views
2,010
rank
144,661
PlumX Metrics