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Disentangling the impact of cost transparency on cooperation efficiency in exchange partnerships

Author

Listed:
  • Yang, Jie
  • Yu, Guangsheng
  • Liu, Mingyu
  • Xie, Hongming
  • Liu, Haiwei

Abstract

Drawn upon the marriage of transaction cost economics and social exchange theory, this study aims to examine the effect of cost transparency on cooperation efficiency in a cooperative exchange between a manufacturer and its key suppliers. It also investigates the contingent impact of the contextual factor (e.g., demand uncertainty) and contractual factor (e.g., contract specificity) on the link between cost transparency and efficiency. The results of path analysis of survey data collected from China indicate a curvilinear relationship between transparency and efficiency in the context of Chinese manufacturers. The findings of this study also show that this curvilinear relationship is contingent on demand uncertainty and contract specificity, which exert interacting effects on the transparency-efficiency connection. This study discusses contributions to the frontier of existing theories, implications for practitioners, and future stream of research.

Suggested Citation

  • Yang, Jie & Yu, Guangsheng & Liu, Mingyu & Xie, Hongming & Liu, Haiwei, 2018. "Disentangling the impact of cost transparency on cooperation efficiency in exchange partnerships," International Journal of Production Economics, Elsevier, vol. 197(C), pages 27-34.
    • Handle: RePEc:eee:proeco:v:197:y:2018:i:c:p:27-34
    DOI: 10.1016/j.ijpe.2017.12.023
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