Relationship Investment and Channel Performance: An Analysis of Mediating Forces

25 Pages Posted: 13 Oct 2009

See all articles by Yadong Luo

Yadong Luo

University of Miami - Department of Management

Yi Liu

Xi'an Jiaotong University (XJTU) - School of Management

Jiaqi Xue

affiliation not provided to SSRN

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

Luo, Yadong and Liu, Yi and Xue, Jiaqi, Relationship Investment and Channel Performance: An Analysis of Mediating Forces. Journal of Management Studies, Vol. 46, Issue 7, pp. 1113-1137, November 2009, Available at SSRN: https://ssrn.com/abstract=1486890 or http://dx.doi.org/10.1111/j.1467-6486.2009.00843.x

Yadong Luo (Contact Author)

University of Miami - Department of Management ( email )

United States

Yi Liu

Xi'an Jiaotong University (XJTU) - School of Management ( email )

28, Xianning West Road
Xi'an, Shaanxi 710049
China

Jiaqi Xue

affiliation not provided to SSRN

No Address Available

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