THE RELATIONSHIP BETWEEN SUPLIER SPECIFIC INVESTMENT AND NEW PRODUCT PERFORMANCE: THE MODERATING EFFECTS OF OUTPUT AND PROCESS CONTROL

Authors : Volkan YENİARAS

Pages : 451-472

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Publication Date : 2023-05-31

Article Type : Research Paper

Abstract :In order to improve the performance of new products, companies in emerging markets should manage their connections with suppliers in ways that are more clearly understood as a result of this study. Approaching from the perspective of relational view and transactional cost economics theory, we dissect the effects of two control mechanisms, namely process and outcome control on the relationship between manufacturer specific investment in suppliers and new product performance. Using a dyadic data, which consists of 125 dyads insert ignore into journalissuearticles values(i.e., 125 manufacturers and 125 main suppliers); in Turkey, we find that supplier specific investment increases new product performance of manufacturers. We also find that output control direct and positively relates to new product performance while process control has a negative effect on new product performance. Finally, the results reveal that output control positively moderate the relationship between supplier specific investment and new product performance. Contrarily, process control has a negative effect on the supplier specific investment – new product performance relationship.
Keywords : Tedarikçiye özel yatırım, süreç kontrolü, çıktı kontrolü, yeni ürün performansı