IDEAS home Printed from https://ideas.repec.org/a/bla/jomstd/v46y2009i7p1113-1137.html
   My bibliography  Save this article

Relationship Investment and Channel Performance: An Analysis of Mediating Forces

Author

Listed:
  • Yadong Luo
  • Yi Liu
  • Jiaqi Xue

Abstract

This study explores how relationship‐specific investment (RSI) enhances interfirm cooperation in buyer–supplier partnerships in an emerging market. Building upon the logic of economic sociology, we argue that the contribution of RSI to the success in buyer–supplier partnerships will be mediated by reduced opportunism and reduced conflict and by heightened commitment and knowledge sharing. Our survey of 216 paired distributors (buyers) and manufacturers (suppliers) in China generally supports this argument, leading to a conclusion that RSI is not a direct performance propeller but an important builder of relational infrastructure in which mid‐range processes are nourished. Theoretical implications in strategic management and supply chain management research are highlighted.

Suggested Citation

  • Yadong Luo & Yi Liu & Jiaqi Xue, 2009. "Relationship Investment and Channel Performance: An Analysis of Mediating Forces," Journal of Management Studies, Wiley Blackwell, vol. 46(7), pages 1113-1137, November.
    • Handle: RePEc:bla:jomstd:v:46:y:2009:i:7:p:1113-1137
    DOI: 10.1111/j.1467-6486.2009.00843.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-6486.2009.00843.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-6486.2009.00843.x?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
    ---><---

    References listed on IDEAS

    as
    1. C. Lakshman & Ronaldo C. Parente, 2008. "Supplier‐Focused Knowledge Management in the Automobile Industry and Its Implications for Product Performance," Journal of Management Studies, Wiley Blackwell, vol. 45(2), pages 317-342, March.
    2. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    3. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    4. Luo, Yadong, 2006. "Opportunism in Inter-firm Exchanges in Emerging Markets[1]," Management and Organization Review, Cambridge University Press, vol. 2(1), pages 121-147, March.
    5. Sergio G. Lazzarini & Danny P. Claro & Luiz F. Mesquita, 2008. "Buyer–Supplier and Supplier–Supplier Alliances: Do They Reinforce or Undermine One Another?," Journal of Management Studies, Wiley Blackwell, vol. 45(3), pages 561-584, May.
    6. Mudambi, Ram & Mudambi, Susan McDowell, 1995. "From transaction cost economics to relationship marketing: a model of buyer-supplier relations," International Business Review, Elsevier, vol. 4(4), pages 419-433.
    7. Mike Wright & Igor Filatotchev & Robert E. Hoskisson & Mike W. Peng, 2005. "Strategy Research in Emerging Economies: Challenging the Conventional Wisdom," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 1-33, January.
    8. Mick Carney, 1998. "The Competitiveness of Networked Production: The Role of Trust and Asset Specificity," Journal of Management Studies, Wiley Blackwell, vol. 35(4), pages 457-479, July.
    9. Paul W Beamish & John C Banks, 1987. "Equity Joint Ventures and Theory of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 18(2), pages 1-16, June.
    10. Mike Wright & Andy Lockett, 2003. "The Structure and Management of Alliances: Syndication in the Venture Capital Industry," Journal of Management Studies, Wiley Blackwell, vol. 40(8), pages 2073-2102, December.
    11. Erin Anderson & Barton Weitz, 1989. "Determinants of Continuity in Conventional Industrial Channel Dyads," Marketing Science, INFORMS, vol. 8(4), pages 310-323.
    12. Yadong Luo, 2006. "Opportunism in Inter-firm Exchanges in Emerging Markets," Management and Organization Review, International Association of Chinese Management Research, vol. 2(1), pages 121-147, March.
    13. Garry D. Bruton & Chung‐Ming Lau, 2008. "Asian Management Research: Status Today and Future Outlook," Journal of Management Studies, Wiley Blackwell, vol. 45(3), pages 636-659, May.
    14. Akira Takeishi, 2001. "Bridging inter‐ and intra‐firm boundaries: management of supplier involvement in automobile product development," Strategic Management Journal, Wiley Blackwell, vol. 22(5), pages 403-433, May.
    15. Sandy D. Jap & Erin Anderson, 2003. "Safeguarding Interorganizational Performance and Continuity Under Ex Post Opportunism," Management Science, INFORMS, vol. 49(12), pages 1684-1701, December.
    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. Roland Helm & Martin Kloyer & Christin Aust, 2018. "R&D Collaboration Between Firms: Hard And Soft Antecedents Of Supplier Knowledge Sharing," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-42, December.
    2. Lumineau, Fabrice & Jin, Jason Lu & Sheng, Shibin & Zhou, Kevin Zheng, 2022. "Asset specificity asymmetry and supplier opportunism in buyer–supplier exchanges," Journal of Business Research, Elsevier, vol. 149(C), pages 85-100.
    3. Jianghua Zhou & Rui Wu & Jizhen Li, 2019. "More ties the merrier? Different social ties and firm innovation performance," Asia Pacific Journal of Management, Springer, vol. 36(2), pages 445-471, June.
    4. Ju, Min & Murray, Janet Y. & Kotabe, Masaaki & Gao, Gerald Yong, 2011. "Reducing distributor opportunism in the export market: Effects of monitoring mechanisms, norm-based information exchange, and market orientation," Journal of World Business, Elsevier, vol. 46(4), pages 487-496, October.
    5. Cerchione, Roberto & Esposito, Emilio, 2016. "A systematic review of supply chain knowledge management research: State of the art and research opportunities," International Journal of Production Economics, Elsevier, vol. 182(C), pages 276-292.
    6. Kamran Eshghi & Sourav Ray, 2021. "Conflict and performance in channels: a meta-analysis," Journal of the Academy of Marketing Science, Springer, vol. 49(2), pages 327-349, March.
    7. 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.
    8. Yang, Jie, 2014. "Supply chain agility: Securing performance for Chinese manufacturers," International Journal of Production Economics, Elsevier, vol. 150(C), pages 104-113.
    9. Murray, Janet Y. & Fu, Frank Q., 2016. "Strategic guanxi orientation: How to manage distribution channels in China?," Journal of International Management, Elsevier, vol. 22(1), pages 1-16.
    10. Paolo Canonico & Ernesto Nito & Gianluigi Mangia & Lorenzo Mercurio & Mario Pezzillo Iacono, 2013. "Regulation issues in the Italian local transport system: aligning transactions and governance structures," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(4), pages 939-961, November.
    11. Roden, Sinéad & Lawson, Benn, 2014. "Developing social capital in buyer–supplier relationships: The contingent effect of relationship-specific adaptations," International Journal of Production Economics, Elsevier, vol. 151(C), pages 89-99.

    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. Lumineau, Fabrice & Henderson, James, 2012. "The influence of relational experience and contractual governance on the negotiation strategy in buyer-supplier disputes," MPRA Paper 38510, University Library of Munich, Germany.
    2. Jia, Fang & Wei, Liyuan & Jiang, Ling & Hu, Zuohao & Yang, Zhilin, 2021. "Curbing opportunism in marketing channels: The roles of influence strategy and perceived fairness," Journal of Business Research, Elsevier, vol. 131(C), pages 69-80.
    3. Pei-Li Yu, 2019. "Interfirm coopetition, trust, and opportunism: a mediated moderation model," Review of Managerial Science, Springer, vol. 13(5), pages 1069-1092, November.
    4. Huo, Baofeng & Fu, Dijia & Zhao, Xiande & Zhu, Jingwen, 2016. "Curbing opportunism in logistics outsourcing relationships: The role of relational norms and contract," International Journal of Production Economics, Elsevier, vol. 182(C), pages 293-303.
    5. Mehmet Demirbag & Ekrem Tatoglu & Keith W. Glaister, 2010. "Institutional and Transaction Cost Influences on Partnership Structure of Foreign Affiliates," Management International Review, Springer, vol. 50(6), pages 709-745, December.
    6. Kaynak, Ramazan & Sert, Tuba & Sert, Gurkan & Akyuz, Bulent, 2015. "Supply chain unethical behaviors and continuity of relationship: Using the PLS approach for testing moderation effects of inter-organizational justice," International Journal of Production Economics, Elsevier, vol. 162(C), pages 83-91.
    7. Wang, Lei & Zhang, Chun & Jiang, Fuming, 2019. "Matching governance mechanisms with transaction-specific investment types and supplier roles: An empirical study of cross-border outsourcing relationships," International Business Review, Elsevier, vol. 28(2), pages 316-327.
    8. Brian R. Murtha & Goutam Challagalla & Ajay K. Kohli, 2011. "The Threat from Within: Account Managers' Concern About Opportunism by Their Own Team Members," Management Science, INFORMS, vol. 57(9), pages 1580-1593, February.
    9. Tran, Phuong Nguyen Thu & Gorton, Matthew & Lemke, Fred, 2021. "When supplier development initiatives fail: Identifying the causes of opportunism and unexpected outcomes," Journal of Business Research, Elsevier, vol. 127(C), pages 277-289.
    10. Sobrero, Maurizio. & Roberts, Edward Baer., 1996. "The trade-off between efficiency and learning in inter-organizational relationships," Working papers 3896-96., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    11. Jianjun Zhang & Hao Ma, 2009. "Adoption of professional management in Chinese family business: A multilevel analysis of impetuses and impediments," Asia Pacific Journal of Management, Springer, vol. 26(1), pages 119-139, March.
    12. George Peng & Paul Beamish, 2014. "The effect of host country long term orientation on subsidiary ownership and survival," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 423-453, June.
    13. Vaidyanathan Jayaraman & Zuoming Liu, 2019. "Aligning governance mechanisms with task features to improve service capabilities---an empirical study of professional service outsourcing in India," Operations Management Research, Springer, vol. 12(1), pages 19-39, June.
    14. Yang, Jie, 2014. "Supply chain agility: Securing performance for Chinese manufacturers," International Journal of Production Economics, Elsevier, vol. 150(C), pages 104-113.
    15. Zhe Zhang & Ming Jia & Difang Wan, 2012. "When does a partner’s reputation impact cooperation effects in partnerships?," Asia Pacific Journal of Management, Springer, vol. 29(3), pages 547-571, September.
    16. Tao Zhang, 2019. "How Do Information Technology Resources Facilitate Relational and Contractual Governance in Green Supply Chain Management?," Sustainability, MDPI, vol. 11(13), pages 1-17, July.
    17. Amankwah-Amoah, Joseph, 2020. "Talent Management and Global Competition for Top Talent: A Co-Opetition-Based Perspective," MPRA Paper 101113, University Library of Munich, Germany.
    18. Andaç T. Arıkan, 2020. "Opportunism is in the Eye of the Beholder: Antecedents of Subjective Opportunism Judgments," Journal of Business Ethics, Springer, vol. 161(3), pages 573-589, January.
    19. Xue, Jinjie & Yuan, Hongping & Shi, Benshan, 2016. "Investigating partners' opportunistic behavior in joint ventures in China: The role of transaction costs and relational exchanges," Journal of Business Research, Elsevier, vol. 69(12), pages 6067-6078.
    20. Wang, Qingtao & Li, Julie Juan & Yang, Defeng, 2022. "Unequal participation in joint new product development: The roles of information opportunism concern and contract binding force," Journal of Business Research, Elsevier, vol. 145(C), pages 21-34.

    More about this item

    Statistics

    Access and download statistics

    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:bla:jomstd:v:46:y:2009:i:7:p:1113-1137. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380 .

    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.