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This paper aims to investigate the extent to which relation-specific investments undertaken by the distributor favor the presence of various governance structures (formal contract and relational governance). Furthermore, it examines whether dependence moderates the effect of relationship-specific investments on these governance structures.

Survey data were gathered from 224 wholesalers from the food and beverage industry. Hypotheses were tested through regression analysis.

This study illustrates that property-based relationship-specific investments have a greater positive impact on the use of formal contracts than knowledge-based relationship-specific investments. Furthermore, knowledge-based relationship-specific investments have a greater positive impact on relational governance than property-based relationship-specific investments. The results also suggest that it is necessary to consider the moderating effect of cost-based dependence and benefit-based dependence. Finally, mixed governance structures (e.g. formal contracts combined with relational governance) have a positive impact on satisfaction and intention to maintain and extend the relationship.

The findings allow manufacturers to concentrate their efforts on mixed governance structures facilitating relationship-specific investments and benefit-based dependence from distributors to develop a competitive advantage.

Several investigations have obtained a relationship between investments in specific assets, governance structures and performance. Nevertheless, they have not identified different types of investments in specific assets. This study proposes that there are two types of relationship-specific investments: based on property and based on knowledge. Additionally, a two-dimensional model of dependence (cost-based and benefit-based) allows capturing the different theoretical spheres of this concept.

The purpose of this paper is to offer novel and complementary insights into the relationship between product modularity and product innovation by investigating the mediating role of module suppliers' relationship-specific investments which include both property-based relationship-specific investment (PRSI) and knowledge-based relationship-specific investment (KRSI).

This paper is an empirical study based on structural equation modelling, with a sample of 121 core firms of high-tech modular cooperation in China.

The findings indicated that product modularity had a significant positive effect on product innovation; product modularity was positively related to module suppliers' PRSI; module suppliers’ KRSI had a direct effect on product innovation while PRSI had an indirect effect on product innovation through KRSI; the relationship between product modularity and product innovation was serially multi-mediated by module suppliers’ PRSI and KRSI.

Modular product design and modular cooperation governance guidance for core firms and cooperative investment strategies guidance for module suppliers were provided.

This study is the first attempt to analyse how product modularity affects product innovation in the context of inter-firm modular cooperation by revealing the mediating role of module suppliers' relationship-specific investments.

The purpose of this paper is to study the relational impact of using win-win or win-lose negotiation strategies within different types of buyer-supplier relationships.

A multi-method approach is used. Qualitative interviews with supply chain managers reveal that relationship-specific assets and cooperation are important relational factors in buyer-supplier negotiations. Framing interview insights within the social exchange theory (SET), hypotheses are tested using a scenario-based behavioral experiment.

Experimental results suggest that win-lose negotiators decrease their negotiating partner’s commitment of relationship-specific assets and levels of cooperation. In addition, the use of a win-lose negotiation strategy reduces levels of relationship-specific assets and cooperation more in highly interdependent buyer-supplier relationships than relationships that are not as close.

Buyer-supplier relationships are complex interactions. Negotiation strategy choice decisions can have long-term effects on the overall relationship. As demonstrated in this study, previous research focusing on one side “winning” a negotiation as a measure of success has oversimplified this complex phenomenon.

The use of a win-lose negotiation strategy can have a negative impact on relational outcomes like cooperation and relationship-specific assets. For companies interested in developing strong supply chain relationships, buyer and suppliers should choose their negotiation strategy carefully as the relational impact extends beyond the single negotiation encounter.

Previous research predominantly advocates for the use of a win-win negotiation strategy within interdependent relationships. This research offers evidence that the use of a win-lose strategy does have a long-term relational impact.

The purpose of this paper is to examine the impact of high-status local exchange partners on foreign firms.

Bridging status research and international business literature, the study develops a framework that describes three prominent effects of high-status partners on foreign firms, and further links these effects to firms’ relationship outcomes. The proposed conceptual model is examined using partial least squares structural equations modeling on a sample of 96 foreign firms operating in China.

The study provides evidence that high-status local exchange partners tend to seek higher relationship-specific investment from foreign firms, and in the meantime, provide firms with greater opportunities for local learning and networking; subsequently, foreign firms are more likely to achieve satisfactory outcomes in the relationships.

These findings suggest that affiliation with high-status local actors can be a key approach to overcome the liability of foreignness in a host country. Firms therefore, should treat them carefully as an important category of exchange partner portfolios. These are particularly relevant to foreign firms competing in China, a society characterized by strong hierarchies.

The study serves as a preliminary attempt to introduce status concept to the field of international business. It promotes status as a key criterion for local partner selection, and offers the status research a contextual insight in the dilemma of choosing high- vs low-status partner candidates.

Relationships between a supplier’s corporate reputation, trust in the supplier, co‐operation, buyer commitment, and willingness to undertake relationship‐specific investments were examined in the context of interactions between three UK seaports and a sample of 144 of their customer shipping firms. It emerged that the model proposed by the International Marketing and Purchasing Group performed well as a predictor of supplier/purchaser relationships within this sector. Seaports’ corporate reputations (as measured by the Fortune reputation index) significantly affected shippers’ desires for close relationships with particular ports, and acted as a quasi‐moderator of the impact of supplier trust on closeness. Reputation, moreover, constituted a pure moderator vis‐à‐vis the influences of trust on commitment and on relationship‐specific investments and adaptations of business systems. Additionally reputation modified the effects of experience (i.e. the period for which a shipper had been doing business with a specific port) on trust.

The purpose of this paper is to investigate retailers’ power-dependence management through the lens of supply chain diversification, and explore how it is linked to their logistic arrangements in managing suppliers and their retail performance.

Hypotheses are tested using a structural equation modelling based on survey data from 186 merchandising division heads at Japanese retail companies.

The results reveal that quick-response inventory replenishment is positively related to retailers’ use of power-dependence management. This management practice leads to enhanced retail competitiveness and, thus, higher sales growth in supply chain relationships.

This study contributes to understanding how retailers’ logistic arrangements work by modelling power relations within supply chains, drawing on power-dependence theory. The authors propose an alternative view of logistics systems to that of the widely adopted transaction cost theory. The authors find that supplier investments in quick-response inventory management may not be a relationship-specific asset.

The purpose of this paper is to investigate the differential influence of buyer and supplier relationship-specific investments (RSI) on a buyer’s relationship governance decisions.

Based on transaction economics and social exchange theories (SET), the authors develop a framework to understand how and when buyer and supplier RSI influence governance decisions. This model was tested using a survey of 301 Information Technology (IT) procurement professionals across a multitude of industries.

This research shows that buyer and supplier RSI impact governance decisions differently. Supplier investments are positively associated with relationship formalization when goals between both parties are shared. Buyer investments are more strongly related to formalization in technologically uncertain environments.

This research adds to the literature by integrating arguments from both transaction cost and SET to hypothesize why buyer and supplier investments have a differential impact on relationship governance decisions. In line with these arguments, it ultimately demonstrates conditions that render such investments more/less influential.

The purpose of this paper is to understand the impact of the antecedents of the exchange domain (use of coercive influence, ideational favor exchange, calculative resource‐dependence, and decision uncertainty) on relationship building. The paper examines the link between the two mediating dynamics of embedded trust and relationship‐specific customization and loyalty by developing a model of vulnerability‐based commitment.

The links between the model elements are tested using data from a survey of clients in the Hong Kong insurance service. Structural equation analysis is used to test research hypotheses and to examine the extent to which vulnerability‐based commitment leads to the development of loyalty.

The degree of embedded trust between parties is enhanced by the use of coercive influence, favor, and resource‐dependence. Embedded trust has a negative relationship with decision uncertainty. The antecedents of coercive influence, favor, and resource‐dependence have positive impacts on relationship‐specific customization. Vulnerability‐based commitment is positively affected both by trust and customization whilst commitment has a positive impact on loyalty.

A vulnerability‐based commitment model is developed as an analytical and managerial tool for understanding the benefits and hidden vulnerabilities of client loyalty and for implementing effective service strategies.

By understanding the implications of the benefits/costs in commitment vulnerabilities, the findings can help in the design of a loyalty quality system. A new measurement tool is provided to enable researchers to perform more vigorous scale development of commitment.

Using China's burgeoning logistics industry as a backdrop, the present study focused on how to build trust between logistics users and third‐party logistics (3PL) providers, and the antecedents and consequences of trust.

A questionnaire‐based mail survey was conducted in mainland China. The conceptual model was tested using structural equation modeling.

The findings indicate that logistics users' satisfaction with prior interactions with logistics providers, 3PL provider's relationship‐specific investment, 3PL provider's information sharing, and 3PL provider's reputation are key determinants of logistics users' level of trust towards 3PL providers. Additionally, logistics users' trust may facilitate their loyalty behavior towards 3PL providers.

The findings were drawn from a Chinese setting in which logistics outsourcing is in a relatively early developmental stage. The uniqueness of Chinese culture may also limit the findings' generalizability. China's transitional economy was not considered in the study. Different company ownership may significantly influence relationship formulation, maintenance and consequences.

The findings demonstrated how logistics providers can improve customers' trust in logistics outsourcing relationships. The study also revealed how logistics providers can improve customers' loyalty.

This paper was a pioneering study that investigates the logistics outsourcing relationship in China, a rapidly growing economy. The results offered valuable managerial insights regarding how to cultivate trust and loyalty in logistics outsourcing relationships.

This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network approach (see, e.g., Axelsson & Easton, 1992; Håkansson & Snehota, 1995a). The study describes how adaptations initiate, how they progress, and what the outcomes of these adaptations are. Furthermore, the framework takes into account how adaptations spread in triadic relationship settings. The empirical context is corporate travel management, which is a chain of activities where an industrial enterprise, and its preferred travel agency and service supplier partners combine their resources. The scientific philosophy, on which the knowledge creation is based, is realist ontology. Epistemologically, the study relies on constructionist processes and interpretation. Case studies with in-depth interviews are the main source of data.