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The impact of governance mechanisms on transaction-specific investments in supplier-manufacturer relationships: a comparison of local and foreign manufacturers.
- Article from:
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Management International Review
- Article date:
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January 1, 2008
- Author:
- Yu, Chwo-Ming Joseph; Liao, Tsai-Ju
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Copyright informationCOPYRIGHT 2008 Gabler Verlag. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Abstract and Key Results
* This study explores the impact that formal and relational governance mechanisms have in inducing local suppliers to make transaction-specific investments in foreign and local manufacturers, respectively.
* Analyses, in this regard, were based on a sample comprised of 77 local supplier/ foreign manufacturer relationships and 57 local supplier/local manufacturer relationships in China.
* The efficacy of different governance mechanisms, as shaped by local and foreign manufacturers, exerts varying degrees of impact on suppliers' transaction-specific investments.
Key Words
Formal Governance Mechanisms * Relational Governance ...
<0.05), although this was not found to be the case in Chinese manufacturers (in Model 2, [beta] = 0.159, p>
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