Magazine article from our research archive:

The impact of governance mechanisms on transaction-specific investments in supplier-manufacturer relationships: a comparison of local and foreign manufacturers.

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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