Knowledge transfer in buyer-supplier relationships: The role of transactional and relational governance mechanisms

Abstract

Transferring a quantity of credible knowledge is a key competitive advantage for vertical relationships in an emerging economy. Distinct from extant research focused on the relational performance of and opportunism in channel relationships or knowledge transfer in horizontal alliances, this study investigates knowledge transfer in vertical relationships and considers how transactional and relational mechanisms differentially affect knowledge transfer quantity and credibility. Hierarchical regression analyses of 225 paired buyers and suppliers in China revealed that both transactional and relational mechanisms effectively improve quantity and credibility; within a transactional mechanism framework, contracts more effectively increase quantity, whereas transaction-specific investments do not increase credibility more effectively than contracts; and trust more effectively improves both quantity and credibility in the relational mechanism framework than personal relationships. These findings provide new insights for the knowledge management literature and practices in vertical relationships.