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Asymmetric dependence in buyer-seller relationship is probably among the most widely studied phenomena in relationship research. However, the focus on asymmetric resource dependence has mainly addressed risks within the buyer-seller dyad and has largely disregarded external types of risk affecting relationships. This paper examines how to balance resources in relationships when there is inter-organizational dependence and when there is environmental risk. The author uses a formal real options model to analyze the effects of different types of risk having an impact on relationships and to determine an optimal management of relationships when there is a-symmetric dependence and environmental risk.

Managing Asymmetric Resource Dependence and Environmental Risk in Relationships by Real Options