How does supplier's asset specificity affect product development performance? A relational exchange perspective

Yen, Yu Xiang; Hung, Shiu Wan

doi:10.1108/08858621311313884

Cited by 30 publications

(23 citation statements)

References 111 publications

(103 reference statements)

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“…Accordingly, linguistic distance may not only affect communication efficiency, but also quality, and often to such an extent that knowledge exchange becomes impossible. As long as linguistic barriers hinder closer relationships and the creation of trust, knowledge sharing and consequently SDS may be jeopardized (Yen and Hung, 2013). Further, Feely and Harzing (2003, p. 41) expect buyers to "lose some of their relationship power" as a consequence of language barriers in buyer-supplier relationships.…”

Section: Linguistic Distancementioning

confidence: 99%

Supplier Development for Sustainability: Contextual Barriers in Global Supply Chains

Busse¹,

Niu²,

Schleper

et al. 2016

AMPROC

107

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Acknowledgments:An earlier version of this paper was the recipient of the 2015 Chris Voss Best Paper Award granted at the 22 nd European Operations Management Association conference. We are most grateful to the EurOMA Scientific Committee for choosing our paper and encouraging us to consider IJPDLM as a publication outlet for our research. We also acknowledge the helpful feedback received at the conference. Moreover, we would like to thank the three anonymous reviewers at IJPDLM who have provided extremely insightful and constructive suggestions which helped us to improve this paper substantially. Finally, we express our gratitude to the Editor, Alexander E. Ellinger, for facilitating a speedy review process. Design/methodology/approach -A dyadic case study design was adopted with a Western European buyer and six of its Chinese suppliers. The database consists of 41 interviews and 81 documents.Findings -Contextual barriers to SDS in global supply chains derive from complexities in the sustainability concept, socio-economic differences, spatial and linguistic distance, as well as cultural differences between buyers and suppliers. Partial remedies include effective joint communications, an open organizational culture, and the fostering of cross-contextual understanding.Research implications -The findings contribute to theory development at the intersection of sustainable and global supply chain management research. They help to explain why scarce sustainability-related progress in global supply chains has occurred in recent years.Practical implications -The identified barriers facilitate managerial decision making that will expedite SDS progress in global contexts.Social implications -By diffusing knowledge regarding available remedies, the study contributes to improving SDS effectiveness, thereby fostering sustainability capabilities and performance of suppliers.Originality/value -This research highlights the criticality of contextual barriers to SDS. The barrier effects that stem from differing real-world conceptions of sustainability may inform future sustainable supply chain management research within and beyond SDS.

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Section: Linguistic Distancementioning

confidence: 99%

Supplier Development for Sustainability: Contextual Barriers in Global Supply Chains

Busse¹,

Niu²,

Schleper

et al. 2016

AMPROC

107

View full text Add to dashboard Cite

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“…Among them, asset specificity means "the degree to which an asset can be redeployed to alternative uses by alternative users without sacrifice of productive value" (Williamson, 1988). If an exchange relationship terminates, it may result in the forfeiture of the specific assets invested, inducing a safeguarding problem against opportunism (Yen and Hung, 2013). So the presence of specific investments becomes one of the key factors influencing transaction costs.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

How cooperative innovation could be more effective in China: a relationship perspective

Chi

Zhang

Deng

2021

JBIM

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Purpose Considering strategic information sharing (SIS), this paper aims to develop a better understanding of how relation-specific investments (RSIs) influence cooperative innovation performance (CIP) in downstream channel relationships. This paper also examined that the moderating effect of relational trust in the indigenous practice of guanxi is especially critical in China. Design/methodology/approach Data were collected through a questionnaire in Chinese high-tech industries, with a valid response from 310 companies. A hierarchical regression analysis was used to test the conceptual model and hypotheses, combining mediation and moderation analysis. Findings Results show that the influences of specific investments vary according to the specificity dimensions examined. Specifically, human RSI influences CIP and SIS most significantly, and the impact of procedural RSI is, relatively, the weakest. Relational trust’s moderating role is confirmed, and SIS plays a partially mediating role in enhancing vertical cooperative innovation. Practical implications Managers should know clearly different roles of RSIs in inter-firm cooperative innovation and prioritize human RSI and brand RSI when investing into channels. More importantly, the findings reveal that strategy-level information sharing should be valued more. It is also recommended that relational ties are vital, especially in Chinese business context. Originality/value To the best of the authors’ knowledge, this paper is among the first few to investigate how the effects of disaggregated RSIs in inter-firm cooperative innovation vary and the importance of SIS in vertical relationships. The results provide insightful guidance for researchers and managers in how to better manage RSIs to improve CIP.

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“…In order to enhance the efficiency of product development (reduction of product development time and unnecessary costs), suppliers will invest or adjust the original equipment to meet the demand for restaurant companies (Yen and Hung, 2013). Suppliers can learn how to strike a balance between the environment and different restaurant companies and help to obtain the maximum benefit from this collaborative relationship (Dolores L opez-Gamero et al, 2011).…”

Section: Adaptation Of Suppliersmentioning

confidence: 99%

“…Restaurants need a proper supplier's help to plan a good menu. Taking the needs of restaurant companies in to account, companies could adapt with supplier by cooperation contract to require investing in relationship (Chathoth et al, 2013;Yen and Hung, 2013). To gain a competitive advantage, suppliers must invest in highly specialized equipment and create specially designed production systems.…”

Section: Introductionmentioning

confidence: 99%

Connecting supplier–supplier relationships to achieve supply chain performance of restaurant companies

Hsu

2020

JHTI

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PurposeThe goal of this study is to investigate how the development efficiency of restaurant companies' products of their suppliers, supplier–supplier connection, design quality and adaptation affect the supply chain performance (SCP) of restaurant companies.Design/methodology/approachWe use the stratified random-sampling method for this study. We mailed the research questionnaire to the managers in the cases where they could be identified; a total of 1,063 questionnaires were sent by mail and a useable response of 156 fully completed questionnaires was received.FindingsWhen the supplier has good development efficiency of restaurant companies' products, they can comply with the requirements of the budget project, and then, finally adapt to the restaurant companies to strengthen mutual relations of coexistence; suppliers with a good connection can make restaurant companies willing to go along with them.Research limitations/implicationsThe limitation of this study was that the different types of suppliers were not compared, and some restaurants without scaled operations may have different effects on the result.Practical implicationsThe supplier–supplier connection is established when the suppliers or companies have generated important decisions. The suppliers will cope with the restaurant companies to make the delivery procedure more unhindered and invest in highly specialized equipment in the relationship and finally, improve the SCP.Originality/valueThis study focuses on the restaurant companies in partnership: how to cooperate with the suppliers to make good supply efficiency, and thus enhance the SCP of the restaurant companies. Overall, the results of the study have provided reliable instruments for operationalizing the key effect constructs in the analysis of operational performance.

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How does supplier's asset specificity affect product development performance? A relational exchange perspective

Cited by 30 publications

References 111 publications

Supplier Development for Sustainability: Contextual Barriers in Global Supply Chains

Supplier Development for Sustainability: Contextual Barriers in Global Supply Chains

How cooperative innovation could be more effective in China: a relationship perspective

Connecting supplier–supplier relationships to achieve supply chain performance of restaurant companies

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