Channel

Seing Is Believing? Signalling Supplier's Value Potential

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Executive Summary

In this paper the authors are interested in framing the uses of signals by business suppliers, and in assessing how signals of supplier's value potential influence supplier selection. Recent research suggests that suppliers increasingly move their communication content from the products they sell to the strategic assets they own. This shift in communication poses however a theoretical issue: As strategic assets derive their value from the asymmetric information position which favours the supplier owning them with respect to the industry and the market - what is better known as the causal ambiguity rationale - why the supplier should disclose them, exposing himself to the risk of imitation and of being spoiled from his strategic assets value?

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