The impact of governance mechanisms on transaction-specific investments in supplier-manufacturer relationships: A comparison of local and foreign manufacturers

Chwo-Ming Joseph Yu and Tsai-Ju Liao
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Chwo-Ming Joseph Yu: National Chengchi University
Tsai-Ju Liao: National Taichung Institute of Technology

Management International Review, 2008, vol. 48, issue 1, No 5, 95-114

Abstract: Abstract Abstract and Key Results • This study explores the impact that formal and relational governance mechanisms have in inducing local suppliers to make transaction-specific investments in foreign and local manufacturers, respectively. • Analyses, in this regard, were based on a sample comprised of 77 local supplier/foreign manufacturer relationships and 57 local supplier/local manufacturer relationships in China. • The efficacy of different governance mechanisms, as shaped by local and foreign manufacturers, exerts varying degrees of impact on suppliers’ transaction-specific investments.

Keywords: Formal Governance Mechanisms; Relational Governance Mechanisms; Transaction-Specific Investments; Calculative Trust; Benevolent Trust; Supplier-Manufacturer Relationships (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s11575-008-0005-0

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