Dynamic or Boring: The Theory of Stable Business Relationships

How firms within a business relationship adapt to their situation determines the functional capability of a relationship. Theory suggests four types of adaptations to the degree of differentiated relationship value. Dynamic adaptations include High Vitality and Opportunistic Relationship types. Static adaptations include Habitual Relationships and Repetitive Relationships—perhaps seen as “boring” for lack of notable changes. Viewed in the context of uncertainty and levels of adaptation, Responsive Stability and Passive Stability are functional, but Inefficient Stability and Eroding Stability are not. Breaking down uncertainty into other-firm and market sources, four types of adaptations are identified: Complex, Routinized, Market Focused, and Other Focused. Finally, the paper identifies the theoretical underpinnings future research. 1 The authors are listed in alphabetical order. All authors contributed equally.

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