| dc.description.abstract | A large amount of literature considers how to obtain better transaction performance by managing the buyer-supplier relationship as a strategic asset. Embeddedness plays an extremely important role in a firm’s competitive advantage because it can result in improved return between organizations. Through it, both sides can reduce costs, improve quality, as well as enhance speed and flexibility.
Previous literature has proved embeddedness can positively impact performance. It can enable buyers and suppliers to achieve their goals and acquire what they need in seconds. Unfortunately, there is a paucity of research regarding the embedded relationship, thus making it unclear as to what kind of mechanisms can influence the transaction performance. In addition, because the previous literature paid more attention to measurement of efficiency, this research would like to measure more aspects, such as transaction costs, product quality, product development, service, time to market and relational benefits.
Employees of high-technology equipment manufactures who are involved in new product development projects in Taiwan completed the survey. We asked them to select one new product development project. Secondly, they compared their relationships with two suppliers. The results indicated that if buyer and supplier have an embedded relationship, they could improve their performance through process integration, instead of IT system integration.
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