To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises
Past studies examined the benefits and drawbacks of relationship-specific investments (RSIs), but few compared the two simultaneously in the context of small and medium-sized enterprises (SMEs). This study aims to fill the gap in the literature by investigating the impact of different factors on...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2024
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| Online Access: | http://journalarticle.ukm.my/23905/ http://journalarticle.ukm.my/23905/1/Pengurusan_70_4.pdf |
| _version_ | 1848815964169175040 |
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| author | Sukresna, Made Mahfudz, Hamilton, John Robert |
| author_facet | Sukresna, Made Mahfudz, Hamilton, John Robert |
| author_sort | Sukresna, Made |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | Past studies examined the benefits and drawbacks of relationship-specific investments (RSIs), but few compared
the two simultaneously in the context of small and medium-sized enterprises (SMEs). This study aims to fill the
gap in the literature by investigating the impact of different factors on manufacturer–retailer relationships in
Indonesian SMEs. We argue that RSIs, collaboration, and opportunism can influence relationship performance,
and RSIs can drive collaboration and opportunism. This research employs data from 200 small and medium-sized
furniture manufacturers in Indonesia and tests the hypotheses using structural equation modeling. Findings show
that the benefits of RSIs outweigh their drawbacks, and RSIs can directly enhance relationship performance, foster
collaboration, and reduce the negative opportunistic tendencies of retailers in marketing channels. The findings
also show that optimal RSIs and collaboration can reduce the detrimental impact of the opportunism of retail
partners. This study suggests that SMEs prioritize and apply knowledge-based RSIs by intensively teaching their
channel partners specific sales and furniture product maintenance techniques to promote further interactions with
retailers, which may result in enterprise growth. In addition, SMEs should complement collaboration with a
formal contract, because overdependence on an informal contract may result in a false sense of security over opportunism actions. |
| first_indexed | 2025-11-15T00:58:20Z |
| format | Article |
| id | oai:generic.eprints.org:23905 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:58:20Z |
| publishDate | 2024 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:239052024-08-07T01:47:30Z http://journalarticle.ukm.my/23905/ To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises Sukresna, Made Mahfudz, Hamilton, John Robert Past studies examined the benefits and drawbacks of relationship-specific investments (RSIs), but few compared the two simultaneously in the context of small and medium-sized enterprises (SMEs). This study aims to fill the gap in the literature by investigating the impact of different factors on manufacturer–retailer relationships in Indonesian SMEs. We argue that RSIs, collaboration, and opportunism can influence relationship performance, and RSIs can drive collaboration and opportunism. This research employs data from 200 small and medium-sized furniture manufacturers in Indonesia and tests the hypotheses using structural equation modeling. Findings show that the benefits of RSIs outweigh their drawbacks, and RSIs can directly enhance relationship performance, foster collaboration, and reduce the negative opportunistic tendencies of retailers in marketing channels. The findings also show that optimal RSIs and collaboration can reduce the detrimental impact of the opportunism of retail partners. This study suggests that SMEs prioritize and apply knowledge-based RSIs by intensively teaching their channel partners specific sales and furniture product maintenance techniques to promote further interactions with retailers, which may result in enterprise growth. In addition, SMEs should complement collaboration with a formal contract, because overdependence on an informal contract may result in a false sense of security over opportunism actions. Penerbit Universiti Kebangsaan Malaysia 2024 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/23905/1/Pengurusan_70_4.pdf Sukresna, Made and Mahfudz, and Hamilton, John Robert (2024) To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises. Jurnal Pengurusan, 70 . pp. 1-15. ISSN 0127-2713 https://www.ukm.my/jurnalpengurusan/view-articles/ |
| spellingShingle | Sukresna, Made Mahfudz, Hamilton, John Robert To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises |
| title | To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises |
| title_full | To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises |
| title_fullStr | To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises |
| title_full_unstemmed | To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises |
| title_short | To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises |
| title_sort | to collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises |
| url | http://journalarticle.ukm.my/23905/ http://journalarticle.ukm.my/23905/ http://journalarticle.ukm.my/23905/1/Pengurusan_70_4.pdf |