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Frontiers of Business Research in China
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A research on the relationship between suppliers’ transaction-specific investments and perceived relational risks: The moderating roles of control mechanisms and relationship phases

Frontiers of Business Research in China volume 1, pages167–192 (2007) | Download Citation

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Abstract

This study examines the dynamic nature of suppliers’ perceived relational risks arising from transaction-specific investments (TSIs) in their relationship with manufacturers, and the moderating effects of contracts and relational norms, during the developmental process of manufacturer-supplier relationship. An empirical study was conducted with data collected from 261 suppliers and manufacturers in the Chinese consumer electronic appliances sector. We found that suppliers’ TSIs have a positive effect on their perceived relational risks, and in different phases of a relationship effect varies significantly. Results of the research also show that both contracts and relational norms have negative moderating effects on the relationship between suppliers’ TSIs and their perceived relational risks, and moderating effects during are different across various phases of a relationship.

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Affiliations

  1. Marketing Department, School of Management, Xi’an Jiaotong University, Xi’an, 710049, China

    • Yi Liu
    • , Liping Qian
    •  & Jian Yin

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Correspondence to Yi Liu.

Additional information

Translated from Zhongguo Guanli Kexue 中国管理科学 (Chinese Management Science), 2006, 14(1): 30–36

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Keywords

  • suppliers’ transaction-specific investments
  • relational risks
  • phases of a relationship
  • control mechanisms