The contingent effects of asset specificity, contract specificity, and trust on offshore relationship performance

Drawing on the perspectives of interfirm governance mechanisms, we develop a contingency theoretical framework that examines how contract specificity and trust interact with local suppliers' physical asset specificity and human asset specificity in shaping the relationship performance of offsho...

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Main Authors: Wang, L., Jiang, Fuming, Li, Jun, Motohashi, K., Zheng, X.
Format: Journal Article
Published: ELSEVIER 2019
Online Access:http://hdl.handle.net/20.500.11937/75005
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author Wang, L.
Jiang, Fuming
Li, Jun
Motohashi, K.
Zheng, X.
author_facet Wang, L.
Jiang, Fuming
Li, Jun
Motohashi, K.
Zheng, X.
author_sort Wang, L.
building Curtin Institutional Repository
collection Online Access
description Drawing on the perspectives of interfirm governance mechanisms, we develop a contingency theoretical framework that examines how contract specificity and trust interact with local suppliers' physical asset specificity and human asset specificity in shaping the relationship performance of offshore cooperation between local suppliers and global buyers. The empirical data for hypothesis testing were collected from a survey of 162 dyads composed of Chinese local suppliers and international buyers. The empirical results reveal an inverted U-shaped relationship between physical asset specificity and relationship performance, and this inverted U-shaped relationship is stronger when the level of contract specificity is higher. There is a linear and positive relationship between human asset specificity and relationship performance, and this relationship becomes stronger when the level of trust between the local supplier and international buyer is higher.
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format Journal Article
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institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T11:03:02Z
publishDate 2019
publisher ELSEVIER
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spelling curtin-20.500.11937-750052022-03-31T03:03:43Z The contingent effects of asset specificity, contract specificity, and trust on offshore relationship performance Wang, L. Jiang, Fuming Li, Jun Motohashi, K. Zheng, X. Drawing on the perspectives of interfirm governance mechanisms, we develop a contingency theoretical framework that examines how contract specificity and trust interact with local suppliers' physical asset specificity and human asset specificity in shaping the relationship performance of offshore cooperation between local suppliers and global buyers. The empirical data for hypothesis testing were collected from a survey of 162 dyads composed of Chinese local suppliers and international buyers. The empirical results reveal an inverted U-shaped relationship between physical asset specificity and relationship performance, and this inverted U-shaped relationship is stronger when the level of contract specificity is higher. There is a linear and positive relationship between human asset specificity and relationship performance, and this relationship becomes stronger when the level of trust between the local supplier and international buyer is higher. 2019 Journal Article http://hdl.handle.net/20.500.11937/75005 10.1016/j.jbusres.2019.02.055 http://creativecommons.org/licenses/by-nc-nd/4.0/ ELSEVIER fulltext
spellingShingle Wang, L.
Jiang, Fuming
Li, Jun
Motohashi, K.
Zheng, X.
The contingent effects of asset specificity, contract specificity, and trust on offshore relationship performance
title The contingent effects of asset specificity, contract specificity, and trust on offshore relationship performance
title_full The contingent effects of asset specificity, contract specificity, and trust on offshore relationship performance
title_fullStr The contingent effects of asset specificity, contract specificity, and trust on offshore relationship performance
title_full_unstemmed The contingent effects of asset specificity, contract specificity, and trust on offshore relationship performance
title_short The contingent effects of asset specificity, contract specificity, and trust on offshore relationship performance
title_sort contingent effects of asset specificity, contract specificity, and trust on offshore relationship performance
url http://hdl.handle.net/20.500.11937/75005