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Learning trajectory in offshore OEM cooperation: Transaction value for local suppliers in the emerging economies
Author(s) -
Li Yuan,
Li Peter Ping,
Liu Yi,
Yang Dong
Publication year - 2010
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/j.jom.2009.11.006
Subject(s) - original equipment manufacturer , transaction cost , industrial organization , business , corporate governance , value (mathematics) , perspective (graphical) , database transaction , organizational economics , value capture , asset specificity , marketing , economics , microeconomics , value creation , computer science , finance , machine learning , artificial intelligence , programming language , operating system
We focus on the unique role of offshore OEM cooperation as a learning opportunity for local suppliers in the emerging economies. In particular, we conceptually argue and empirically confirm the links between learning intent, capability enhancement, governance mode, and overall innovativeness from the perspective of local suppliers in offshore OEM cooperation in China as well as the influence of local business culture within these links. We address two issues: (1) offshore OEM cooperation can be a unique opportunity for local suppliers with strong intent to learn from foreign buyers for capability enhancement and (2) the moderating effects of trust and contact as two distinctive governance modes. Addressing the two issues, we make two specific contributions to the research on inter‐firm cooperation, both of which derive from the often‐neglected theoretical lens of transaction value. Our general contribution lies in the extension of the transaction value perspective by specifying its dual tenets of inter‐firm co‐specialization and shared‐trust as the central theme of inter‐firm cooperation to complement the transaction cost economics and also contextualize the research on inter‐firm cooperation in terms of different partners’ perspectives as well as different governance modes.