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The contingent effect of specific asset investments on joint action in manufacturer-supplier relationships: An empirical test of the moderating role of reciprocal asset investments, uncertainty, and trust

The contingent effect of specific asset investments on joint action in manufacturer-supplier... Prior research provides evidence that manufacturer investment of specific assets dedicated to a particular supplier (manufacturer asset specificity) is an antecedent of joint action in manufacturer-supplier relationships. The authors build on prior research to identify several variables that moderate the effect of manufacturer asset specificity o on joint action. Drawing from transaction cost analysis and relational exchange theory, the authors propose a conceptual model that explicates the moderating role of three contextual variables: specific asset investments by the supplier (reciprocal asset investments), manufacturer decision-making uncertainty, and manufacturer trust in the supplier. Consistent with their hypotheses, results from a survey of firms in three SIC codes show that decision-making uncertainty and trust enhance the effect of manufacturer asset specificity on joint action. Contrary to expectation, however, the moderating effect of reciprocal asset investments was not significant. Theoretical and managerial implications of the results are discussed. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of the Academy of Marketing Science Springer Journals

The contingent effect of specific asset investments on joint action in manufacturer-supplier relationships: An empirical test of the moderating role of reciprocal asset investments, uncertainty, and trust

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References (100)

Publisher
Springer Journals
Copyright
Copyright © Academy of Marketing Science 1999
Subject
Economics / Management Science; Business/Management Science, general; Marketing; Social Sciences, general
ISSN
0092-0703
eISSN
1552-7824
DOI
10.1177/0092070399273001
Publisher site
See Article on Publisher Site

Abstract

Prior research provides evidence that manufacturer investment of specific assets dedicated to a particular supplier (manufacturer asset specificity) is an antecedent of joint action in manufacturer-supplier relationships. The authors build on prior research to identify several variables that moderate the effect of manufacturer asset specificity o on joint action. Drawing from transaction cost analysis and relational exchange theory, the authors propose a conceptual model that explicates the moderating role of three contextual variables: specific asset investments by the supplier (reciprocal asset investments), manufacturer decision-making uncertainty, and manufacturer trust in the supplier. Consistent with their hypotheses, results from a survey of firms in three SIC codes show that decision-making uncertainty and trust enhance the effect of manufacturer asset specificity on joint action. Contrary to expectation, however, the moderating effect of reciprocal asset investments was not significant. Theoretical and managerial implications of the results are discussed.

Journal

Journal of the Academy of Marketing Science – Springer Journals

Published: Jun 1, 1999

Keywords: Governance Mechanism; Standard Industrial Classification; Exchange Partner; Supply Relationship; Manufacturer Trust

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