Transactional and Relational Exchange in Supply Chains: Constitutive Elements and Main Factors

Abstract

Drawing upon previous studies in economic sociology and relationship marketing, we distinguish between the transactional and the relational forms of interfirm market exchange and suggest an original typology of their constitutive elements, which are attached to the phases of the interfirm yearly contract cycle. An index of relational exchange is constructed to measure a degree of embeddedness in the supply chain relationships. Empirical data were collected by the author and the HSE research team in 2013 from a standardized survey in the grocery and non-food sectors in Russia. In total, 843 questionnaires were completed by the managers of retail companies and their suppliers. Research findings present the distribution of two types of market exchange and their constitutive elements. Prevalence of hybrid governance forms is demonstrated. Ordinal regression model is used to reveal the main factors that facilitate relational exchange.