A Return to Discrete Exchange

Abstract

The influence of information technology competence (the technological ability to produce knowledge and integrate it into decision-making) on the type of exchange relationship between grocery manufacturers and distributors is proposed to follow an inverted U path from discrete exchange; to relational exchange; to discrete exchange. The relationship between information technology competence and exchange type is also proposed to be moderated by relationship interdependence. Product differentiation may be the key to manufacturers' survival and their ability to maintain relationship interdependence as distributors make advances in information technology competence and become market makers, changing the basis for adding value to the supply chain.