As stated at the beginning of this book, one major task of this study was to examine various factors which explain why ACR-type or OCR-type transactions occur between an industrial buyer and a supplier. This was done and results systematically presented in chapters 6–10.

This chapter turns to the second major task, which involves examining the consequences of the ACR—OCR choice for the performance of enterprises, industries and national economies. It is tempting to conclude from a cursory look at the relative industrial competitiveness of Britain and Japan that there is some direct linkage between ACR—OCR patterns and industrial performance. OCR-type relations and superior performance coexist in Japan.

But that loose correlation could only be accepted as having some causal significance if one can hypothesise, and find empirical evidence for, the micro-mechanisms which can account for that significance. Theoretically, there are no conclusive causal links between ACR—OCR patterns and organisational efficiency (as defined in chapter 2). One may argue, for instance, that ACR traders achieve allocative efficiency by reserving the right to switch their partners as prices dictate. But there are not sufficient grounds for thinking that ACR-type relations lead to X-efficiency also. Similarly there is no theoretical basis for asserting that the existence of ‘goodwill trust’ in OCR-type relations constitutes a sufficient condition for generating incentives to maintain efficient practices over time.