Institutional distance and knowledge acquisition in international buyer-supplier relationships: The moderating role of trust (original) (raw)
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British Journal of Management, 2000
This paper examines the effect of relational factors on knowledge transfer within strategic buyer-supplier exchange. Prior research examining inter-firm knowledge transfer has focused almost exclusively on horizontal forms of governance such as strategic alliances and joint ventures, whilst research on vertical forms, such as buyersupplier relationships, is limited. We test the effect of four important relational properties: cooperation, trust, relationship duration and supplier performance. Quantitative data, gathered from 104 UK manufacturing firms in eight industry sectors, are used to analyse the hypothesized relationships through a moderated hierarchical regression model. Our study provides support for the importance of considering relational factors in the transfer of knowledge at the inter-organizational level. In particular, the results indicate that knowledge transfer is positively influenced by the extent of cooperation, but that this relationship is moderated by the level of trust and the performance of the supplier firm. Managerial implications for these findings and future directions for research are then offered.
Journal of Small Business and Enterprise Development, 2009
Purpose -The purpose of this paper is to understand how suppliers have managed to accumulate knowledge in their relationship with large multinational clients. Design/methodology/approach -The methodology was based on four case studies' qualitative data, collected from semi-structured, in-depth interviews. The buyers were selected among the largest MNEs of the electronics, automotive and footwear industries and the suppliers were selected among the set of SMEs supplying to those MNEs. The objective was to assess the supplier's knowledge transfer-oriented capabilities and the buyer's interaction-oriented capabilities in the SBR. Findings -The paper highlights the important leading role of the client in the buyer-supplier relationship involving SMEs as well as the knowledge-sharing atmosphere of successful cooperative relationships. Although it confirms the advantages of alliances for SMEs, knowledge transfer-oriented capabilities, are used by SMEs in order to sustain client satisfaction and to strengthen their core competencies. Despite all efforts of SMEs, if clients are not willing to use interaction-oriented capabilities, buyer-supplier relationships are doomed to failure. Research limitations/implications -One practical implication is that, if SMEs are adequately supported by public policies, it is possible to transfer knowledge from more advanced to less endowed economies . The main limitation stems from the fact that it is not possible to claim generalisation as the research is the result of a series of four case studies. Originality/value -The paper uses dyadic relationships as a viable option to compensate internal knowledge deficiencies of SMEs in their relationship with MNEs. It complements former research as little is known about the importance of alliances in the context of knowledge acquisition and learning in SMEs. It contributes to the SME scientific literature by investigating how SMEs learn from their alliance partners. means to obtain advanced technology and knowledge is crucial for catching-up countries.
THE IMPACT OF TRUST ON KNOWLEDGE TRANSFER IN INTERNATIONAL BUSINESS SYSTEMS
Over the last decade, international business alliances have emerged as one of the most important strategies for firms to expand in international markets. In addition, knowledge transfer has been determined as one of the key factors that lead to the creation of sustainable competitive advantage for firms and to the success of learning alliances. Furthermore, trust enhances the effectiveness of this process. The growing volume of published research in recent years has indubitably revealed the significant role of trust on knowledge transfer in International Business (IB) Systems and in particular in International Strategic Alliances (ISAs) and International Joint Ventures (IJVs). This paper consists of an in depth review of the most recent literature about the impact of trust on transfer of various types of knowledge in IB Systems with reference to the relevant theoretical models and the applications in the international context. The first section contains the theoretical background of...
1997
In this paper we examine the determinants of supplier trust in the buyer in 453 supplierautomaker relationships in the U. S., Japan, and Korea. We define trust and derive a model of its determinants drawing upon (1) an embeddedness (relationship-based) perspective, (2) a processbased perspective, and an (3) economic (hostage-based) perspective. Our findings indicate strong support for the process-based perspective in all countries; embeddedness (e.g., length of relationship) was only important as a determinant of trust in Japan, and the hostage-based variable (stock ownership) was not important in any country. More specifically, we found that high supplier trust emerges when (1) automakers have developed supplier-selection routines that favor incumbents and which maintain a continuing (repeated) exchange relationship with the supplier, and (2) automakers have developed assistance-giving routines to help suppliers solve problems and improve. Although there were some differences across institutional environments, notably higher trust in Japan, the findings are quite robust across the institutional environments. Indeed, in a sample of U.S. suppliers selling to both U.S. and Japanese automakers in the United States, we found that Japanese automakers were more effective than U.S. automakers at building trusting relations with U.S. suppliers. The ability of Japanese automakers to build high levels of trust with suppliers in the United States suggests that the institutional environment may be less important than firm-level practices in the production of inter-organizational trust.
Journal of International Management, 2018
This article examines how production mode and contractual governance moderate the effects of two distinct interfirm coordination mechanisms on overseas knowledge acquisition for suppliers in offshore cooperation. An investigation of 204 offshore suppliers in China finds that the positive effect of technology-based coordination mechanism (TCM) on overseas knowledge acquisition for an original equipment manufacturing (OEM) supplier is stronger than that for an original design manufacturing (ODM) supplier. By contrast, the positive effect of personal coordination mechanism (PCM) on overseas knowledge acquisition for an ODM supplier is stronger than that for an OEM supplier. Besides, as the degree of contractual control grows, the positive effect of TCM on overseas knowledge acquisition becomes stronger, whereas the positive effect of PCM becomes weaker. Further, when considering coordination, production, and governance jointly, we find that the strengthening effect of contractual control on the influence of TCM for OEM is stronger than that for ODM, and that the weakening effect of contractual control on the influence of PCM for ODM is stronger than that for OEM.
International Journal of Supply Chain Management, 2016
A s competition has become increasingly knowledge-based, firms must double their efforts to increase their competitiveness by integrating the existing knowledge with new and updated knowledge resources, which maybe acquired through various approaches. One of the most popular strategies for knowledge acquisition is through strategic alliance, which can take the form of international outsourcing or another contractual agreement. As a result of the rising trend of international outsourcing and strategic value of tacit knowledge, this paper aims to provide a conceptual perspective on the importance of business relatedness and interactive involvement in the acquisition of tacit knowledge from the international suppliers’ point of view.
The determinants of interfirm trust are examined in 453 supplier automaker relationships in the U.S., Japan, and Korea. The findings indicate high supplier trust emerges when (1) suppliers receive assistance from the automaker, (2) the automaker has a track record of maintaining a continuing (repeated) exchange relationship with the supplier. Although there were some differences across institutional environments, notably higher trust in Japan, the findings are robust across the three institutional environments. Indeed, in a sample of U.S. suppliers that worked with both U.S. and Japanese automakers in the United States, we found that Japanese automakers were more effective than U.S. automakers at building trusting relations with U.S. suppliers. Thus, firm level practices appear to be more important than the institutional environment in the development of interfirm trust. A central issue in the literature on strategic alliances and interfirm cooperation is how firms create trust and control opportunism, particularly when the transactors have made investments in transaction specific assets.
Management Decision, 2014
Purpose – The purpose of this paper is to draw on Asanuma's concept of relation-specific skills in order to analyse collaboration between automaker and supplier. The cultivation of relation-specific skills has been widely regarded a key factor of competitiveness in the Japanese automotive industry. Yet, the concept has been described mostly in economic terms only. This research attempts to extend this view by analysing the role of informal institutions (trust) in developing relation-specific skills. Design/methodology/approach – By drawing on expert interview data, evaluated by using content analysis, within the frame of a case study research approach, the authors gathered data from the leading multinational automotive supplier Bosch in its facilities in Japan and Germany. Findings – The results show that the influence of trust plays a role in determining relation-specific skills. In conclusion, the authors assume that cultural homophily positively influences the cultivation of ...
Journal of International Business Studies, 2003
Research on international marketing channels accentuates the importance of relational norms and trust-building activities between buyers and sellers. Indeed, cultural and country differences may limit the use and effectiveness of traditional tools (such as market incentives and authoritative control) that govern the relationship between an exporting manufacturer and its foreign distributor. Consequently, exporting manufacturers need to emphasize relationships with their foreign distributors. This research finds evidence that supports both direct and indirect effects between the manufacturer's use of governance via relational norms and its competitiveness in the export market. The indirect effect results from the mediating role of trust, a finding that makes a key contribution to the understanding of the role of relational governance in cross-border relationships.