IDEAS home Printed from https://ideas.repec.org/a/spr/manint/v48y2008i1d10.1007_s11575-008-0005-0.html
   My bibliography  Save this article

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

Author

Listed:
  • Chwo-Ming Joseph Yu

    (National Chengchi University)

  • Tsai-Ju Liao

    (National Taichung Institute of Technology)

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.

Suggested Citation

  • Chwo-Ming Joseph Yu & Tsai-Ju Liao, 2008. "The impact of governance mechanisms on transaction-specific investments in supplier-manufacturer relationships: A comparison of local and foreign manufacturers," Management International Review, Springer, vol. 48(1), pages 95-114, February.
    • Handle: RePEc:spr:manint:v:48:y:2008:i:1:d:10.1007_s11575-008-0005-0
    DOI: 10.1007/s11575-008-0005-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11575-008-0005-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11575-008-0005-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Preet S Aulakh & Masaaki Kotabe & Arvind Sahay, 1996. "Trust and Performance in Cross-Border Marketing Partnerships: A Behavioral Approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(5), pages 1005-1032, December.
    2. M. Bensaou & Erin Anderson, 1999. "Buyer-Supplier Relations in Industrial Markets: When Do Buyers Risk Making Idiosyncratic Investments?," Organization Science, INFORMS, vol. 10(4), pages 460-481, August.
    3. Buvik, Arnt & Haugland, Sven A., 2005. "The allocation of specific assets, relationship duration, and contractual coordination in buyer-seller relationships," Scandinavian Journal of Management, Elsevier, vol. 21(1), pages 41-60, March.
    4. René Belderbos & Jianglei Zou, 2006. "Foreign Investment, Divestment and Relocation by Japanese Electronics Firms in East Asia," Asian Economic Journal, East Asian Economic Association, vol. 20(1), pages 1-27, March.
    5. Lenard Huff & Lane Kelley, 2003. "Levels of Organizational Trust in Individualist Versus Collectivist Societies: A Seven-Nation Study," Organization Science, INFORMS, vol. 14(1), pages 81-90, February.
    6. Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-486, April.
    7. Nooteboom, B. & Berger, H. & Noorderhaven, N.G., 1997. "Effects of trust and governance on relational risk," Other publications TiSEM 8e83932e-064c-40e8-afe7-4, Tilburg University, School of Economics and Management.
    8. Yadong Luo, 2005. "Transactional characteristics, institutional environment and joint venture contracts," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(2), pages 209-230, March.
    9. Preet S Aulakh & Masaaki Kotabe & Arvind Sahay, 1996. "Trust and Performance in Cross-Border Marketing Partnerships: A Behavioral Approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 1005-1032, December.
    10. Desirée Blankenburg Holm & Kent Eriksson & Jan Johanson, 1996. "Business Networks and Cooperation in International Business Relationships," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 1033-1053, December.
    11. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    12. Peter Leung-Kwong Wong & Paul Ellis, 2002. "Social Ties and Partner Identification in Sino-Hong Kong International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(2), pages 267-289, June.
    13. Helena Yli‐Renko & Erkko Autio & Harry J. Sapienza, 2001. "Social capital, knowledge acquisition, and knowledge exploitation in young technology‐based firms," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 587-613, June.
    14. Xiaohe Zhang, 2000. "Objectives, Locations Partner Selections of Foreign Invested Enterprises in China," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 5(3), pages 190-203.
    15. Desirée Blankenburg Holm & Kent Eriksson & Jan Johanson, 1996. "Business Networks and Cooperation in International Business Relationships," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(5), pages 1033-1053, December.
    16. Ayala Cohen, 1983. "Comparing Regression Coefficients Across Subsamples," Sociological Methods & Research, , vol. 12(1), pages 77-94, August.
    17. Akbar Zaheer & N. Venkatraman, 1995. "Relational governance as an interorganizational strategy: An empirical test of the role of trust in economic exchange," Strategic Management Journal, Wiley Blackwell, vol. 16(5), pages 373-392.
    18. Seungwha (Andy) Chung & Harbir Singh & Kyungmook Lee, 2000. "Complementarity, status similarity and social capital as drivers of alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 21(1), pages 1-22, January.
    19. Jawaid Abdul Ghani & Jamshed Hassan Khan, 2004. "Network relationships and asset specificity in Pakistan's automotive industry," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 9(1), pages 84-100.
    20. Jeffrey H Dyer & Wujin Chu, 2000. "The Determinants of Trust in Supplier-Automaker Relationships in the U.S., Japan and Korea," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(2), pages 259-285, June.
    21. Robert J. David & Shin‐Kap Han, 2004. "A systematic assessment of the empirical support for transaction cost economics," Strategic Management Journal, Wiley Blackwell, vol. 25(1), pages 39-58, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zahoor, Nadia & Khan, Zaheer & Shenkar, Oded, 2023. "International vertical alliances within the international business field: A systematic literature review and future research agenda," Journal of World Business, Elsevier, vol. 58(1).
    2. En Xie & Yuan Li & Zhongfeng Su & Hock-Hai Teo, 2010. "The Determinants of Local Suppliers’ Trust Towards Foreign Buyers," Management International Review, Springer, vol. 50(5), pages 585-611, October.
    3. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 627-659, September.
    4. Baofeng Huo & Barbara B. Flynn & Xiande Zhao, 2017. "Supply Chain Power Configurations and Their Relationship with Performance," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(2), pages 88-111, April.
    5. Joanita Kataike & Xavier Gellynck, 2018. "22 Years of Governance Structures and Performance: What Has Been Achieved in Agrifood Chains and Beyond? A Review," Agriculture, MDPI, vol. 8(4), pages 1-32, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lei–Yu Wu & Chun–Ju Wang & Cheng–Ping Chen & Lee–Yun Pan, 2008. "Internal Resources, External Network, and Competitiveness during the Growth Stage: A Study of Taiwanese High–Tech Ventures1," Entrepreneurship Theory and Practice, , vol. 32(3), pages 529-549, May.
    2. De Vita, Glauco & Tekaya, Arafet & Wang, Catherine L., 2010. "Asset specificity's impact on outsourcing relationship performance: A disaggregated analysis by buyer-supplier asset specificity dimensions," Journal of Business Research, Elsevier, vol. 63(7), pages 657-666, July.
    3. Griessmair, Michele & Hussain, Dildar & Windsperger, Josef, 2014. "Trust and the tendency towards multi-unit franchising: A relational governance view," Journal of Business Research, Elsevier, vol. 67(11), pages 2337-2345.
    4. Koen H. Heimeriks & Geert Duysters, 2007. "Alliance Capability as a Mediator Between Experience and Alliance Performance: An Empirical Investigation into the Alliance Capability Development Process," Journal of Management Studies, Wiley Blackwell, vol. 44(1), pages 25-49, January.
    5. Janowicz, M.K. & Noorderhaven, N.G., 2002. "The Role of Trust in Interorganizational Learning in Joint Ventures," Discussion Paper 2002-119, Tilburg University, Center for Economic Research.
    6. Ranjay Gulati & Jack A. Nickerson, 2008. "Interorganizational Trust, Governance Choice, and Exchange Performance," Organization Science, INFORMS, vol. 19(5), pages 688-708, October.
    7. Janowicz, M.K. & Noorderhaven, N.G., 2002. "The Role of Trust in Interorganizational Learning in Joint Ventures," Other publications TiSEM f10debea-9d7b-47c3-8d4f-b, Tilburg University, School of Economics and Management.
    8. repec:wsi:acsxxx:v:21:y:2019:i:08:n:s1363919619500130 is not listed on IDEAS
    9. Arjun Bhardwaj & Joerg Dietz & Paul W. Beamish, 2007. "Host country cultural influences on foreign direct investment," Management International Review, Springer, vol. 47(1), pages 29-50, February.
    10. Crosno, Jody L. & Tong, Pui Ying, 2018. "Just going through the motions? An empirical investigation of control, compliance, and performance in franchisor-franchisee relationships," Journal of Business Research, Elsevier, vol. 92(C), pages 360-373.
    11. Presutti, Manuela & Boari, Cristina & Fratocchi, Luciano, 2007. "Knowledge acquisition and the foreign development of high-tech start-ups: A social capital approach," International Business Review, Elsevier, vol. 16(1), pages 23-46, February.
    12. Inkpen, Andrew C. & Currall, Steven C., 1998. "The nature, antecedents, and consequences of joint venture trust," Journal of International Management, Elsevier, vol. 4(1), pages 1-20, July.
    13. Joanita Kataike & Xavier Gellynck, 2018. "22 Years of Governance Structures and Performance: What Has Been Achieved in Agrifood Chains and Beyond? A Review," Agriculture, MDPI, vol. 8(4), pages 1-32, March.
    14. Li, Li, 2005. "The effects of trust and shared vision on inward knowledge transfer in subsidiaries' intra- and inter-organizational relationships," International Business Review, Elsevier, vol. 14(1), pages 77-95, February.
    15. Ariño, Africa & Torre, Jose de la & Doz, Yves & Ring, Peter S. & Lorenzoni, Gianni, 1999. "Process issues in alliance management: A panel discussion," IESE Research Papers D/403, IESE Business School.
    16. Alexander T Mohr & Jonas Puck, 2013. "Revisiting the Trust-performance Link in Strategic Alliances," Management International Review, Springer, vol. 53(2), pages 269-289, April.
    17. Martyna Janowicz‐Panjaitan & Rekha Krishnan, 2009. "Measures for Dealing with Competence and Integrity Violations of Interorganizational Trust at the Corporate and Operating Levels of Organizational Hierarchy," Journal of Management Studies, Wiley Blackwell, vol. 46(2), pages 245-268, March.
    18. Vijayasarathy, Leo R., 2010. "Supply integration: An investigation of its multi-dimensionality and relational antecedents," International Journal of Production Economics, Elsevier, vol. 124(2), pages 489-505, April.
    19. Ramírez-García, Carolina & Vélez-Elorza, María L. & Alvarez-ardet-Espejo, María Concepción, 2013. "¿Cómo controlan los franquiciadores españoles a sus franquiciados?," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 16(1), pages 1-10.
    20. Zhi Cao & Yuan Li & Jayanth Jayaram & Yi Liu & Fabrice Lumineau, 2018. "A meta-analysis of the exchange hazards–interfirm governance relationship: An informal institutions perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(3), pages 303-323, April.
    21. Ebers, Mark & Semrau, Thorsten, 2015. "What drives the allocation of specific investments between buyer and supplier?," Journal of Business Research, Elsevier, vol. 68(2), pages 415-424.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:manint:v:48:y:2008:i:1:d:10.1007_s11575-008-0005-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.