Safeguarding Investments in Asymmetric Interorganizational Relationships: Theory and Evidence

Abstract

We model the governance strategies adopted by suppliers to safeguard relationship-specific investments in asymmetric interoganizational relationships using two dimensions: quasi integration and joint decision making. Data from a field study of 211 supplier-retailer relationships support the research model. Domain knowledge specificity arising from relationship-specific intellectual capital investments emerges as the most influential determinant of governance. The results provide preliminary but powerful evidence of the value of intangible assets in interorganizational relationships.