Twofold relationship dynamics of supplier’s knowledge sharing

Abstract

Purpose Assuming that supplier knowledge can either strengthen the partnership by nurturing the commitment and trust between partners or allow the buyer to be more calculative, this study aims to propose two types of knowledge sharing in supplier relationship – a type benefiting the partnership and another privately benefiting only one partner. Design/methodology/approach Using structural equation modeling and a surveyed dataset from 352 buyer–supplier partnerships, this study tested the research model of dual mechanism, where two types of knowledge sharing co-exist and have opposite effects on partnership longevity. Findings This study found that the two types of knowledge sharing create divergent effects on partnership continuation. For a buyer firm developing supplier knowledge, its supplier firm reciprocates by sharing knowledge with the buyer. While relation-specific knowledge promotes partnership longevity through developing trust, institutionalized knowledge hampers partnership longevity. Research limitations/implications Findings overall indicate that knowledge plays a more instrumental role in sharing knowledge in a buyer–supplier relationship, and alternative forces simultaneously work in the partnership. Although this study explicates two mediating mechanisms for the effect of supplier knowledge, there remain many unknown aspects of the effect. Practical implications From the buyer’s perspective, it is possible its institutionalized knowledge can facilitate its relationship with a current supply chain partner so that it can gain more benefits from the relationship. From the supplier’s perspective, caution should be exercised in selecting the type of knowledge to share. Social implications This study may have a broad impact on public policy by theorizing and testing why some partnerships last longer/shorter than others in association with the dynamics of the relationship initiated by one’s relational knowledge and the other’s knowledge sharing. Originality/value What this study contributes to involves the theorizing and testing the effects of the dual mechanism of knowledge sharing on partnership longevity. This study provides an example of a private investment in knowledge that is reciprocated with each type of knowledge – benefiting the partner and also benefiting the focal buyer firm.

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