The paradox of unsatisfying but stable relationships - A look at German car suppliers

Conditions for relationship stability are discussed. Emphasis is put on the question of whether perceived satisfaction with relationships is a necessa ry prerequisite for relationship stability. We conclude on the basis of tra nsactional cost analysis and empirical evidence from the German automotive industry that stable but unsatisfying relationships exist. We also discuss how opportunism effects long-term behavior of market participants. A model of relationships stability on that basis is developed. (C) 1999 Elsevier Sc ience Inc. All rights reserved.