The contingent effects of asset specificity, contract specificity, and trust on offshore relationship performance

Lei Wang, Fuming Jiang, Jun Li, Kazuyuki Motohashi and Xiaosong Zheng

Journal of Business Research, 2019, vol. 99, issue C, 338-349

Abstract: Drawing on the perspectives of interfirm governance mechanisms, we develop a contingency theoretical framework that examines how contract specificity and trust interact with local suppliers' physical asset specificity and human asset specificity in shaping the relationship performance of offshore cooperation between local suppliers and global buyers. The empirical data for hypothesis testing were collected from a survey of 162 dyads composed of Chinese local suppliers and international buyers. The empirical results reveal an inverted U-shaped relationship between physical asset specificity and relationship performance, and this inverted U-shaped relationship is stronger when the level of contract specificity is higher. There is a linear and positive relationship between human asset specificity and relationship performance, and this relationship becomes stronger when the level of trust between the local supplier and international buyer is higher.

Keywords: Asset specificity; Contract specificity; Trust; Local suppliers; International buyers; Relationship performance (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296319301456
Full text for ScienceDirect subscribers only

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:eee:jbrese:v:99:y:2019:i:c:p:338-349

DOI: 10.1016/j.jbusres.2019.02.055

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().