Strategy dynamics in industrial marketing: a business types perspective

Abstract

Purpose

Industrial marketing covers a broad range of heterogeneous products and services. In response to this heterogeneity, researchers have developed a variety of systematisations of transactions on industrial markets. These systematisations have provided insights for the identification of different types of transaction processes (business types), and for deriving type‐specific marketing recommendations. Based on this literature, the paper considers the consequences of interpreting the typological criteria as variables that can be influenced by the transaction parties, instead of treating them as data.

Design/methodology/approach

Transaction cost economics provides the main theoretical foundations. Focusing on seller‐initiated strategy, the paper develops a conceptual framework for shifts between business types that are derived based on differing degrees and horizons of asset specificity.

Findings

The paper proposes a conceptual framework and discusses technological and contractual ways of implementing shifts between business types. A central implication of the dynamic perspective is the idea of asset specificity as a choice variable.

Research limitations/implications

First, this research is conceptual. Future empirical research is needed regarding the proposed framework as a whole as well as individual hypotheses. Second, based on our qualitative considerations, more formal models could possibly be applied as useful complements in further analysis of some of the raised issues.

Practical implications

Fundamental changes in market offerings in the form of shifts between business types are common elements of marketing practice, with recent examples in the automotive industry and the IT sector. The paper offers a framework for systematically considering such shifts.

Originality/value

The paper extends existing (static) business types frameworks by incorporating a dynamic perspective.

Citation

Backhaus, K. and Muehlfeld, K. (2005), "Strategy dynamics in industrial marketing: a business types perspective", Management Decision, Vol. 43 No. 1, pp. 38-55. https://doi.org/10.1108/00251740510572470