Article ID Journal Published Year Pages File Type
10488496 International Business Review 2014 15 Pages PDF
Abstract
The purpose of this research is to determine how a manufacturer's reduction in export involvement barriers may moderate the effect of transaction cost drivers on control mechanisms (monitoring and information sharing). Utilizing Transaction Cost Analysis and internationalization literature, asset specificity and environment diversity are the transaction cost drivers and economic knowledge and psychic distance are the moderators. The results indicate that as manufacturers increase export involvement through reduction in economic knowledge differences it strengthens the positive relationship between asset specificity and monitoring and diversity and monitoring and weakens the corresponding relationships with information sharing. Psychic distance reduction weakened the positive effect between asset specificity and information sharing only. The results of the other three hypotheses were in the direction hypothesized but non-significant. Manufacturers may continue export involvement through intermediary usage provided they regulate their monitoring and information sharing practices in accordance with the overall influence of asset specificity, diversity, economic knowledge, and psychic distance.
Related Topics
Social Sciences and Humanities Business, Management and Accounting Business and International Management
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