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

Yu Xiang Yen, Shiu Wan Hung

Research output: Contribution to journalArticlepeer-review

22 Scopus citations

Abstract

Purpose: Although previous studies have examined the influence of asset specificity on firm performance, the literature has not focused on the influence of supplier asset specificity on product development, or the transformation that induces this. This study aims to propose a model by using the relational exchange perspective to explain the mechanism in which supplier investment in specific assets on behalf of buyers influences buyer performance in product development. Design/methodology/approach: Empirical data were collected from research and development staff in Taiwanese listed electronic firms and tested using structural equation modeling to verify the fit of the hypothetical model. Findings: The result demonstrates that supplier investment in specific assets for buyers positively impacts buyer's perceived relationship quality, which in turn affects knowledge sharing between buyers and suppliers and buyer product development performance. However, asset specificity does not directly affect knowledge sharing. Originality/value: This study illuminates the contribution of asset specificity to knowledge sharing and product development performance, by clarifying the mediation effects resulting from relationship quality and knowledge sharing.

Original languageEnglish
Pages (from-to)276-287
Number of pages12
JournalJournal of Business and Industrial Marketing
Volume28
Issue number4
DOIs
StatePublished - Apr 2013

Keywords

  • Asset specificity
  • Buyer-seller relationships
  • Buyer-supplier
  • Electronics industry
  • Knowledge management
  • Knowledge sharing
  • Product development
  • Relationship quality

Fingerprint

Dive into the research topics of 'How does supplier's asset specificity affect product development performance? A relational exchange perspective'. Together they form a unique fingerprint.

Cite this