The impact of relation-specific investment on channel relationship performance: evidence from China

Abstract

This study attempts to uncover the mechanisms underlying the impact of relation-specific investment (RSI) on channel relationship performance. We distinguish between property-based RSI and knowledge-based RSI, which are argued to rely on different mediating paths to facilitate relationship performance. Specifically, property-based RSI stimulates formal contract, whereas knowledge-based RSI generates relational trust and relationship learning. However, relational trust exerts an adverse influence on the effectiveness of relationship learning. Results from an empirical study conducted in the context of China's marketing channel basically support the proposed model. Practically, this study suggests that in China's current marketing channels, channel members should prioritize knowledge-based RSI when making RSI into channels and pay special attention to relational trust cultivated by RSI.