Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/33411
Title: Supplier partnership and cost performance : the moderating roles of specific investments and environmental uncertainty
Authors: Yeung, K
Lee, PKC 
Yeung, ACL 
Cheng, TCE 
Keywords: Environmental uncertainty
Operational cost performance
Specific investments
Supplier partnership
Transaction cost economics
Issue Date: 2013
Publisher: Elsevier
Source: International journal of production economics, 2013, v. 144, no. 2, p. 546-559 How to cite?
Journal: International journal of production economics 
Abstract: Drawing on the perspective of transaction cost economics (TCE), we explain the operating contexts in which supplier partnership is likely to be an effective strategy to reduce operational costs in the manufacturing industry. We posit that supplier partnership, which falls in the category of hybrid governance, improves the operational cost performance of manufacturers and that its effectiveness is contingent on specific investments. We also posit that environmental uncertainty does not interact with specific investments to strengthen the effectiveness of supplier partnership. We apply structural equation modeling (SEM) to empirically test the model using data from 175 Hong Kong electronics manufacturers. The results show that supplier partnership is positively and significantly related to operational cost performance. We also find that the relationship between supplier partnership and operational cost performance is strengthened by specific investments. More importantly, the results reveal that the relationship between supplier partnership and operational cost performance is not strengthened by: (1) environmental uncertainty and (2) the three-way interaction among supplier partnership, specific investments, and environmental uncertainty. Our findings provide theoretical and practical insights for selecting an appropriate mode of governance structure.
URI: http://hdl.handle.net/10397/33411
ISSN: 0925-5273
DOI: 10.1016/j.ijpe.2013.04.008
Appears in Collections:Journal/Magazine Article

Access
View full-text via PolyU eLinks SFX Query
Show full item record

SCOPUSTM   
Citations

8
Last Week
0
Last month
0
Citations as of Aug 18, 2017

WEB OF SCIENCETM
Citations

7
Last Week
0
Last month
0
Citations as of Aug 15, 2017

Page view(s)

57
Last Week
7
Last month
Checked on Aug 21, 2017

Google ScholarTM

Check

Altmetric



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.