"Inter-organizational relationships and dissolution : a multi-level view"

Abstract

In this study we propose that relationship specific investments reduce the likelihood of relationship dissolution. These types of investments increase switching costs and thereby create barriers towards exiting. Additionally, high levels of relationship specific investments enhance partners’ ability and willingness to resort to voice when defections and conflicts arise, and hence postpone exit. Moreover, partner specific investments may emerge as a consequence of individual- or organizational level ties. Furthermore, we argue that organizational dimensions, such as centralization, formalization, size and levels of inclusiveness and inter-organizational dimensions, such as history moderate the effect of interpersonal and inter-organizational ties upon relationship dissolution.