Switching Cost Model in Supply Chain Management

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Nasehifar Vahid

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Journal Paper

Paper Information

Journal: SUPPLY CHAIN MANAGEMENT Year:2024 | Volume:26 | Issue:84 Page(s): 1-13

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Information Journal Paper

Title

Switching Cost Model in Supply Chain Management

Author(s)

Nasehifar Vahid | Issue Writer Certificate

Keywords

Switching Cost

Industrial Marketing

Supply Chain Management

Abstract

Switching cost refers to the cost of losing a business partner and is applied with the aim of attracting and retaining the other party across the entire supply chain, from attracting and retaining suppliers to marketing, sales, and customer retention. Switching cost is applicable in both industrial marketing (B2B) and consumer marketing (B2C); however, this article focuses on industrial marketing due to the characteristics of the research field. The significance of switching cost lies in maintaining stakeholders, including suppliers, buyers, and intermediaries, while also bringing benefits and profitability. Various factors influence the determination of switching costs, which are addressed in this article. Although similar studies have been conducted in previous research, no comprehensive framework has yet been provided. The purpose of this research is to design a switching cost model using a qualitative-qualitative method. In the first qualitative phase, 113 open codes, 29 axial codes, and 6 selective codes were extracted from the literature and research background using the meta-synthesis method. Then, in the second qualitative phase, thematic analysis of interviews reduced the open codes to 87, and revisions were made to localize and practically adapt the extracted codes. To validate and ensure the reliability of both methods, inter-coder reliability was employed. The final framework includes six dimensions of switching cost in industrial marketing and supply chain management: (1) environmental variables, (2) strategic variables, (3) commercial variables, (4) beneficial switching cost, (5) technical switching cost, and (6) behavioral switching cost.

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