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This will end with the supplier experience unexpected production costs or excess capacity. Because of the cyclical nature of the industry we can conclude that Spenncon has high volume uncertainty.
Spenncon's behavioral uncertainty is also high. This has to do with difficulties in knowing for certain that contractual agreement has taken place (Geyskens et al 2006). This again, has to do with all the sub suppliers involved in the process in the contractor industry.
The asset specificity in the case of Spenncon is low. This is due to the standardized products and the low degree of adjustment between Spenncon and the customers (Nes and Biong 2003: 131)...
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