Transaction‐Specific Investments, Relational Norms, and ERP Customer Satisfaction: A Mediation Analysis*

Abstract

Integrating the perspectives of transaction cost economics, the resource-based view, and resource dependency theory, this study analyzes the institutional settings of enterprise resource planning (ERP) implementations in China. Specifically, it examines how bilateral transaction-specific investments (TSIs) and relational governance mechanisms influence customer satisfaction with ERP implementations. The model is empirically tested using data from on-site interviews with 208 ERP customers in China. The results demonstrate that the effects of vendors' and customers' TSIs on customer satisfaction are facilitated by multiple-stage micromediational chains. The influence of TSIs on customer satisfaction is mediated by relational norms, and the impact of relational norms on customer satisfaction is bridged by perceived service quality and customer trust. Furthermore, the influence of vendors' TSIs is stronger than the influence of customers' TSIs. The findings contribute to business research and practice by providing valuable insights into how ERP vendors and customers should strategize TSIs to enhance relationship performance.

Examining Governance in Hospital Operations: The Effects of Trust and Physician Employment in Achieving Efficiency and Patient Satisfaction

“…Our findings are consistent with Chen et al. () who found trust to be a relational governance mechanism that moderates work practices, therefore complementing studies advocating the direct role of trust as an antecedent to work practices such as information sharing (Klein et al., ) and visibility, and outcomes such as satisfaction (Lai et al., ) and flexibility (Wang & Wei, ).…”

“…Governance consists of informal and formal mechanisms (Tachizawa & Wong, 2015). Informal governance mechanisms are defined as structural arrangements intended to influence the behavior of organizational members in the form of trust as opposed to bureaucratic structures (Jones, Hesterly, & Borgatti, 1997;Klein et al, 2007;Ang & Inkpen, 2008;Lai et al, 2013;Huang, Cheng, & Tseng, 2014). Working with trusted partners is an important way to integrate action and improve system performance (Gittell, 2001).…”

B2B relationship calculus: quantifying resource effects in service-dominant logic

“…Consistent with prior studies (Lai et al 2013;Kumar 2002) we find both instrumental service and interpersonal service to be significant antecedents of relationship satisfaction. Given the even greater impact of value mindset, however, and the inter-connected nature of operant and operand resources in value co-creation, it is also important to understand potential interaction among the various operant resources.…”

“…Instrumental and interpersonal service factors are core operant resources in that they serve to establish basic customer expectation levels (Bruhn and Frommeyer 2004;Lai et al 2013). These service components are the minimum expected by buyers in today's hypercompetitive sales environment, with lengthening sales cycles, increasing numbers of individuals involved on both sides of the dyad, and decreasing prospect conversion rates and margins (Adamson et al 2013;Evans et al 2012).…”

“…In the context of software consulting services, instrumental service would encompass the product or domain-specific expertise provided by the seller's technical service staff. Interpersonal service would reflect the staff's more general service characteristics such as empathy, reliability, and responsiveness (Parasuraman et al 1988).Instrumental and interpersonal service factors are core operant resources in that they serve to establish basic customer expectation levels (Bruhn and Frommeyer 2004;Lai et al 2013). These service components are the minimum expected by buyers in today's hypercompetitive sales environment, with lengthening sales cycles, increasing numbers of individuals involved on both sides of the dyad, and decreasing prospect conversion rates and margins (Adamson et al 2013;Evans et al 2012).…”