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    Please use this identifier to cite or link to this item: https://nccur.lib.nccu.edu.tw/handle/140.119/10239


    Title: Formal Governance Mechanisms Relational Governance Mechanisms and Transactions-Specific Investments in Supplier-Manufacturer Relationships
    Authors: 于卓民;廖采如;林政道
    Yu, Chwo-Ming Joseph;Liao, Tsai-Ju;Lin, Zheng-Dao
    Keywords: Formal governance mechanisms;Relational governance mechanisms;Transaction-specific investments;Supplier–manufacturer relationships
    Date: 2006-01
    Issue Date: 2008-11-25 10:38:16 (UTC+8)
    Abstract: This study addresses the question of how to design governance mechanisms so that local suppliers are encouraged to make transaction-specific investments in foreign manufacturing firms. Suppliers` transaction-specific investments can increase the efficiency of production for foreign manufacturing firms operating in a host country. However, it can be difficult to induce suppliers to make specialized investments, because of the numerous hazards associated with such investments. Basing its conclusions on the results of a survey of Taiwanese firms using Chinese suppliers, this study examines the effectiveness of both formal governance mechanisms (i.e., contractual agreements and financial commitments) and relational governance mechanisms (i.e., calculative and benevolent trust) in inducing suppliers to make specialized investments. We find that both formal governance and relational governance mechanisms affect suppliers` tendencies to make specialized investments. Additionally, we find that calculative trust acts as a moderating factor in the relationship between formal governance mechanisms and transaction-specific investments.
    Relation: Industrial Marketing Management, 35(2), 128-139
    Data Type: article
    DOI link: http://dx.doi.org/10.1016/j.indmarman.2005.01.004
    DOI: 10.1016/j.indmarman.2005.01.004
    Appears in Collections:[Department of Business Administation] Periodical Articles

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