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To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises

Past studies examined the benefits and drawbacks of relationship-specific investments (RSIs), but few compared the two simultaneously in the context of small and medium-sized enterprises (SMEs). This study aims to fill the gap in the literature by investigating the impact of different factors on...

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Main Authors: Sukresna, Made, Mahfudz,, Hamilton, John Robert
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2024
Online Access:http://journalarticle.ukm.my/23905/1/Pengurusan_70_4.pdf
http://journalarticle.ukm.my/23905/
https://www.ukm.my/jurnalpengurusan/view-articles/
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spelling my-ukm.journal.239052024-08-07T01:47:30Z http://journalarticle.ukm.my/23905/ To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises Sukresna, Made Mahfudz, Hamilton, John Robert Past studies examined the benefits and drawbacks of relationship-specific investments (RSIs), but few compared the two simultaneously in the context of small and medium-sized enterprises (SMEs). This study aims to fill the gap in the literature by investigating the impact of different factors on manufacturer–retailer relationships in Indonesian SMEs. We argue that RSIs, collaboration, and opportunism can influence relationship performance, and RSIs can drive collaboration and opportunism. This research employs data from 200 small and medium-sized furniture manufacturers in Indonesia and tests the hypotheses using structural equation modeling. Findings show that the benefits of RSIs outweigh their drawbacks, and RSIs can directly enhance relationship performance, foster collaboration, and reduce the negative opportunistic tendencies of retailers in marketing channels. The findings also show that optimal RSIs and collaboration can reduce the detrimental impact of the opportunism of retail partners. This study suggests that SMEs prioritize and apply knowledge-based RSIs by intensively teaching their channel partners specific sales and furniture product maintenance techniques to promote further interactions with retailers, which may result in enterprise growth. In addition, SMEs should complement collaboration with a formal contract, because overdependence on an informal contract may result in a false sense of security over opportunism actions. Penerbit Universiti Kebangsaan Malaysia 2024 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/23905/1/Pengurusan_70_4.pdf Sukresna, Made and Mahfudz, and Hamilton, John Robert (2024) To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises. Jurnal Pengurusan, 70 . pp. 1-15. ISSN 0127-2713 https://www.ukm.my/jurnalpengurusan/view-articles/
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description Past studies examined the benefits and drawbacks of relationship-specific investments (RSIs), but few compared the two simultaneously in the context of small and medium-sized enterprises (SMEs). This study aims to fill the gap in the literature by investigating the impact of different factors on manufacturer–retailer relationships in Indonesian SMEs. We argue that RSIs, collaboration, and opportunism can influence relationship performance, and RSIs can drive collaboration and opportunism. This research employs data from 200 small and medium-sized furniture manufacturers in Indonesia and tests the hypotheses using structural equation modeling. Findings show that the benefits of RSIs outweigh their drawbacks, and RSIs can directly enhance relationship performance, foster collaboration, and reduce the negative opportunistic tendencies of retailers in marketing channels. The findings also show that optimal RSIs and collaboration can reduce the detrimental impact of the opportunism of retail partners. This study suggests that SMEs prioritize and apply knowledge-based RSIs by intensively teaching their channel partners specific sales and furniture product maintenance techniques to promote further interactions with retailers, which may result in enterprise growth. In addition, SMEs should complement collaboration with a formal contract, because overdependence on an informal contract may result in a false sense of security over opportunism actions.
format Article
author Sukresna, Made
Mahfudz,
Hamilton, John Robert
spellingShingle Sukresna, Made
Mahfudz,
Hamilton, John Robert
To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises
author_facet Sukresna, Made
Mahfudz,
Hamilton, John Robert
author_sort Sukresna, Made
title To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises
title_short To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises
title_full To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises
title_fullStr To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises
title_full_unstemmed To collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises
title_sort to collaborate or not? the role of relationship-specific investments in small and medium-sized enterprises
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2024
url http://journalarticle.ukm.my/23905/1/Pengurusan_70_4.pdf
http://journalarticle.ukm.my/23905/
https://www.ukm.my/jurnalpengurusan/view-articles/
_version_ 1806689621759754240
score 13.211869

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