An empirical examination of the role of joint new product development in industrial buyer–seller relationship
by Pi-Chuan Sun
International Journal of Services Operations and Informatics (IJSOI), Vol. 2, No. 2, 2007

Abstract: From the theoretical perspective of transaction cost economics, cooperative relationships between firms reflect the increased use of non-market governance. In addition to transaction cost, transaction value is also important to governance decision-making. Governance mechanisms can advantageously incorporate features that both enhance transaction value and minimise transaction costs. The objective of this study is to examine the associations among supplier's assets specificity, Joint New Product Development (JNPD) and Relationship Performance (RP). The conceptual model is empirically tested using cross-sectional survey data, based on the administration of mail questionnaires to key informants within a sample of Taiwanese contract manufacturers of information products. It is found that the JNPD activities were positively related to the supplier's RP. The supplier's Domain Knowledge Specificity (DKS) and Site Specificity (SS) positively influence the degree of JNPD. Besides, RP is positively associated with supplier's DKS.

Online publication date: Thu, 12-Jul-2007

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