Market munificence and inter-firm information sharing: The moderating effect of specific assets

Abstract

Does a growing market or a declining market promote firm information sharing? Resource dependence theory and strategic action theory propose competing arguments. This study reconciles the conflicting views by examining the deployment structure of firm-specific assets as a boundary condition. An investigation of 324 Chinese buyers demonstrates that when firm asset specificity is asymmetrical, the buyer is more likely to share information with the supplier in a growing market but less likely to do so in a declining market; in contrast, when specific assets are bilateral, the buyer is more likely to share information whether the market demand grows or declines.