Specific Features of Products from Renewable Resources and Their Impact on the Choice of Efficient Coordination Mechanisms in Business-to-Business Relationships
(Topic C.3)

– Distribution of Products from Renewable Resources –

The aim of this research project is to develop recommendations for a suitable distribution system for products from renewable resources. In particular, the efficiency of different coordination mechanisms (e.g., market-based or hierarchical coordination) in business-to-business relationships is studied. Due to the diversity and heterogeneity of renewable resources, this is done by means of selected key products. First, the specific features of products from renewable resources that have to be considered in the distribution process shall be examined. Here, the characteristics of the products and the resulting uncertainties with regard to availability, quality, price and origin as well as the characteristics of the industries (mainly small and medium-sized companies) play an essential role. Based on this, the extent to which these specific features affect the advantageousness of the different coordination mechanisms between companies and thus the efficiency of the distribution system shall also be analyzed. Finally, the approaches that are needed to reduce the product-specific uncertainties and their resultant effect on the advantageousness of the coordination mechanisms will be investigated.
To analyze the efficiency of the different coordination mechanisms, a dynamic transaction cost-based model is developed by integrating the social capital theory. This model especially considers dynamic aspects in the exchange relationship over time as well as social factors and existing resource dependencies. Based on this model, hypotheses can be derived regarding the advantageousness of the different coordination mechanisms and tested empirically.
As a result, recommendations for a suitable distribution system for products from renewable resources should be developed, whereby the focus is primarily on the efficiency of the different coordination mechanisms in business-to-business relationships. In particular, the extension of transaction cost economics by social and dynamic aspects provides new theoretical insights. Empirical insights are generated by two studies, which mainly deal with the role of availability, quality, price and origin uncertainties in the distribution of products from renewable resources. Based on these studies, companies can develop approaches to deal with the specific uncertainties of re-newable resources or work to reduce them.