Title: An empirical examination of the role of joint new product development in industrial buyer–seller relationship

Authors: Pi-Chuan Sun

Addresses: Department of Business Management, Tatung University, 40, Sec. 3, Chungshan N. Road, Taipei City 104, Taiwan, ROC

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.

Keywords: assets specificity; joint NPD; new product development; relationship performance; buyer–supplier relationship; transaction costs; transaction value; governance decision making; Taiwan; domain knowledge specificity; site specificity.

DOI: 10.1504/IJSOI.2007.014519

International Journal of Services Operations and Informatics, 2007 Vol.2 No.2, pp.177 - 192

Published online: 12 Jul 2007 *

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