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

Author

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  • 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
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