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Blurring Tactics in Inter-firm
Relationships
Otto Andersen
Ellen K. Nyhus
University of Agder
University of Agder
Characteristics of successful inter-firm
relationships:
• Relationship
investments
• Activities
to maintain or improve the
relationship
• Open
communication
Communication presumed the most important
element to a successful inter-firm relationship (cf.
Bleeke and Ernst, 1993)
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Communication: What and how?
• Communication
involves the transfer of knowledge
representations between the exchange partners
• Such
knowledge representations can be classified
into general, particular and interpretive knowledge
(Boland et al., 2001)
• We
focus on knowledge representation as a set of
ontological commitments, meaning that we are
“making a set of decisions about how and what to
see in the world” (Davis et al., 1993: 19)
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Motivation
An important assumption underlying the literature on inter-firm
knowledge transfer is that that the transferred knowledge is correct.
This assumption may be unrealistic since it
-
neglects the possibilities that one or both actors may wish to attain a
larger share of the value created by the knowledge transfer
(not just a win-win situation but also a win-lose situation)
-
neglects that firms may be unwilling to transfer truly and completely
sensitive knowledge
- neglects limits in human judgmental capacity and the possibility of
these being exploited.
Failing to recognize attempts to influence judgments and
decisions in the knowledge transfer, may be costly for the firm.
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Blurring tactics
The purpose of blurring tactics is to
• obtain
congruence with what and how the exchange
partner perceives and interpret the relationship, with
what we wish her/him to perceive
• obscure
the total value created for the exchange
partner
• transfer
knowledge in a vague/indistinct way so that
the recipient firm cannot completely absorb and
utilize the knowledge
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What is blurring?
Sender’s beliefs
about own core
competencies
A
B
C
D
The core
competencies
sender wishes to
send to receiver
Figure 1: Blurring in the knowledge transfer process
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Examples of blurring
•
Anchoring the reference point
•
Framing
•
Emphasising sunk cost
•
Interacting socially
The value function
(Kahneman & Tversky, 1979)
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Theoretical perspectives
(1) Transaction cost analysis (TCA)
(2) Resource-dependence theory (RDT)
(1) Assumptions TCA:
•
Bounded rationality
•
Opportunism (failure to honor a contract; cf.
Williamson, 1975)
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Theoretical perspectives (cont.)
(1) Main dimensions TCA:
•
Asset specificity (idiosyncratic investments made
by one (or both) of the exchange partners)
•
Behavioral uncertainty (difficulties one exchange
partner may have in evaluating and monitoring
the other exchange partner’s performance)
•
Environmental uncertainty (unanticipated changes in
circumstances surrounding the exchange)
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Theoretical perspectives (cont.)
(2) Resource-dependence theory (RDT)
Assumptions: Organizations require resources from
the environment, and thus become interdependent
of actors that can provide such resources
Building blocks of RDT: Power and dependence (cf.
Emerson, 1962)
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Theoretical perspectives (cont.)
(2) Resource-dependence theory (RDT)
Dependence: An actor A is dependent upon actor B
(i) in proportion to A’s need for resources that B can
provide, and (ii) in inverse proportion to the
availability of alternative actors providing the same
resources.
High degree of power dependence for actor A
represents a form of vulnerability
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Theoretical perspectives (cont.)
In addition to the theoretical perspectives above, we include
culture as an independent variable to predict the use of
blurring tactics.
Culture distance (between the seller and buyer) can be
measured as a composite index, containing the dimensions of
individualism, uncertainty avoidance, power distance, and
masculinity (Hofstede, 1980)
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When are blurring tactics most likely to be used?
Specific investments
Behavioural uncertainty
P3 (+)
Environmental uncertainty
Use of
blurring tactics
Cultural distance
Power dependence
Figure 2 Conceptual Framework
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Discussion and Conclusions
• Decisions
about if, and with which firms to form or
continue long-term relationships, are often complex
and characterised by a high degree of uncertainty
• Opponents
or partners with knowledge of the
cognitive mechanisms at play when someone makes
judgments and decisions, may use them tactically in
formal and informal communication.
• Unless
managers are aware of such blurring tactics
they may fall into judgment and decision traps that
may be costly for their firm.
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Discussion and Conclusions (cont.)
Research implications:
• Conceptualization
and measurement of blurring
tactics
Managerial implications:
• Identify
from who, what, and when knowledge
transferred is likely to be blurred
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