Rodney L. Stump

The contingent effect of specific asset investments on joint action in manufacturer-supplier relationships: An empirical test of the moderating role of reciprocal asset investments, uncertainty, and trust

Prior research provides evidence that manufacturer investment of specific assets dedicated to a particular supplier (manufacturer asset specificity) is an antecedent of joint action in manufacturer-supplier relationships. The authors build on prior research to identify several variables that moderate the effect of manufacturer asset specificity o on joint action. Drawing from transaction cost analysis and relational exchange theory, the authors propose a conceptual model that explicates the moderating role of three contextual variables: specific asset investments by the supplier (reciprocal asset investments), manufacturer decision-making uncertainty, and manufacturer trust in the supplier. Consistent with their hypotheses, results from a survey of firms in three SIC codes show that decision-making uncertainty and trust enhance the effect of manufacturer asset specificity on joint action. Contrary to expectation, however, the moderating effect of reciprocal asset investments was not significant. Theoretical and managerial implications of the results are discussed.

Employing information technology in purchasing: Buyer-supplier relationships and size of the supplier base

Abstract Despite the fact that U.S. companies have made substantial investments in information technology (IT), relatively little empirical research has focused on the impact of IT investments used to support purchasing functions. Such a phenomenon deserves greater attention by industrial marketers in light of two widely recognized trends, the shift away from arms-length exchange relationships and the shift toward supplier base reductions. In this article we present a series of propositions related to how the extent of IT investments and their degree of use in purchasing may alter the nature of buyer-supplier relationships, that is, foster the development of closer relationships overall, and also contribute to the reduction of the number of vendors being used. The results of an empirical test of our propositions suggest that IT investments enhance buyer-supplier relationships indirectly, mediated by the degree of IT use in transaction processing, while also directly contributing to the reduction of supplier bases. Implications and directions for future research are also discussed.

Understanding New Product Co-Development Relationships in Technology-Based, Industrial Markets

This study focuses on new product co-development relationships, where a seller and buyer enter into a relationship to mutually undertake the development of an innovative product. We draw upon the relationship marketing literature as well as the theoretical frameworks of agency theory and transaction cost analysis to investigate the antecedent conditions that foster such co-development relationships, and the manner by which these factors subsequently influence sellers’ satisfaction with the relationship. The results of our empirical study reveal that the extent to which sellers undertake new product co-development relationships is a function of perceived buyer knowledge and the extent of prior interactions with the buyer as well as the degree of product customization involved. Further, perceived buyer knowledge moderates the sellers’ satisfaction with such co-development efforts.

Information technology investments in purchasing: an empirical study of dimensions and antecedents

Abstract Despite the fact that U.S. companies have made substantial investments in information technology (IT), there is a paucity of empirical research on the nature of IT investments and boundary conditions that determine the extent of these investments. This study reviews the extant IT literature, develops a series of propositions related to the multidimensional nature of IT investments and their relationship with several antecedent conditions, and presents the results of an empirical test of the propositions in the context of the purchasing function of U.S. firms. Our results support the premise that IT used in purchasing is not a homogeneous phenomenon, but can, instead, be represented by three dimensions: base computer systems and support, purchasing-specific applications, and vender communications. Our findings further indicate that IT dimensions respond in a varying fashion to different antecedent conditions. Support was also found for the building-block nature of IT investments.

The Contingent Effect of the Dimensions of Export Commitment on Exporting Financial Performance

Abstract Although export commitment has long been identified as an important construct in the export literature, there is considerable diversity concerning its conceptualization. The literature reveals that two predominant approaches have been used to define this construct. One way has been to depict export commitment as an attitude; the other views it as a behavior. We draw upon both of these conceptualizations of export commitment along with the integrative attitude-behavior framework of Frazier and Sheth (1985) to argue that this construct is a multidimensional phenomenon which comprises both attitudinal and behavioral dimensions. An important implication of this integrative approach is the premise that these dimensions, while positively correlated in the aggregate, can be asymmetric in individual cases. We propose that the effect of one export commitment dimension is contingent upon the level of the other and present the results of an empirical study that finds that there is indeed an interactive effe...

Enforcement Structures in Business-to-Business Exchange Relationships: An Exploratory Study

While the channels literature has long been concerned with governance issues, there have been relatively few empirical studies to simultaneously examine the extent to which self-enforcement (private ordering) versus court enforcement (public ordering) are actually being practiced by businesses, as opposed to the simple reliance upon marketplace competition (using multiple sources of supply and low purchasing allocations) (Telser 1980; Klein 1996; Koss and Eaton 1997; Buvik and John 2000; Wathne and Heide 2000).

Does Sole Sourcing Generate the Desired Short-Term Performance?: An Exploratory Study

This study develops and empirically tests a model of how exchange transactions are structured within inter-organizational relationships and the ensuing performance outcomes. It directly compares two different, and partly competing, theoretical perspectives on inter-organizational relationships, resource dependence and transaction cost theory.

Managing Transaction Dependence: An Empirical Examination of the Moderating Role of Relationship Closeness on the Use of Vertical Control

This study addresses a limitation of the Transaction Cost Analysis framework, namely its narrow focus on the dependence that arises from specific asset investments as a rationale for the installation of governance mechanisms in exchange relationships. We identizy several additional components that contribute to the replaceability and rewards dimensions of dependence and consider how they arise from the underlying procurement need and decisions made by buyers and suppliers when arranging a new transaction. A conceptual model that proposes that the effect of these components of dependency on the use of vertical control is contingent on the nature of the pre-existing relationship between the buyer and supplier.

A Model of Seller-Buyer Product Development Relationships in Technology-Based, Industrial Markets

This paper develops and empirically tests a model of seller-buyer relationships during the new product development process. Our model focuses on seller-buyer interactions during NPD, which revolve around education, product knowledge generation, and joint new product development activities and how they are influenced by several situational characteristics like prior relationship history, perceived buyer knowledge, and product customization. Our model also investigates an important consequence of these activity dimensions: expectations of continuity. In general, we find good support for our hypotheses related to the antecedents. However, mixed results were found for hypotheses relating these activity dimensions to expectations of relationship continuity.

Making Information Technology Investments in Purchasing: Motivations and Outcomes

In this study we develop a conceptual model that depicts the antecedents of information technology investments used to support the purchasing function and the impact of such investments on interfirm communications patterns, relationship quality, and purchasing performance. Our test of the model found that the impact of IT investments on performance is fully mediated by communications, frequency, communications intimacy, and relationship quality variables.