Dyadic specific investments, absorptive capacity, and manufacturers' market knowledge acquisition: Evidence from manufacturer-distributor dyads

How do manufacturers acquire market knowledge through their partnerships with distributors? This study sheds light on this interesting question by investigating how specific investments (SIs) from both manufacturers and their distribution partners affect the manufacturers' learning about market demands and trends. Using paired-data collected from 225 manufacturer-distributor dyads in China, we find that the SIs of manufacturers and distributors both independently and interactively enhance manufacturers' acquisition of market knowledge from their distributors. In addition, manufacturers' absorptive capacity positively moderates the effect of SIs on manufacturers' learning from distributors.