Why firms make unilateral investments specific to other firms: the case of OEM suppliers

Min‐Ping Kang, Joseph T. Mahoney and Danchi Tan

Strategic Management Journal, 2009, vol. 30, issue 2, 117-135

Abstract: This study examines why and under what conditions firms will make unilateral relationship‐specific investments to their transaction partners. We propose that firms are more likely to make such investments when the investment yields positive economic spillover values for other transactions with the same exchange partners as well as for third‐party transactions. We also model two types of positive inter‐project spillover effects that a transaction may generate: knowledge spillovers and reputation spillovers. We find empirical support for our developed theory in the context of Taiwanese suppliers of original equipment manufacturers. Copyright © 2008 John Wiley & Sons, Ltd.

Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (65)

Downloads: (external link)
https://doi.org/10.1002/smj.730

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:stratm:v:30:y:2009:i:2:p:117-135

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0143-2095

Access Statistics for this article

More articles in Strategic Management Journal from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().