Networking and developing collaborative relationships: evidence of the auto-part industry of Brazil

Abstract

Purpose – This study aims to assess the moderating effect of the business network on the effects of between relational behavior and the effects of transaction-specific investments on joint actions. Design/methodology/approach – The study was a survey-based field study designed using theoretical support from marketing channels, transaction cost economics and network perspectives. Findings – The results show the importance of relational behavior and the network in coordinating joint actions, and this has relevant managerial implications for the coordination of a collaborative relationship. The characteristics of the relationship, its length as well as the size of each partner affect the collaborative efforts of the partners. Practical implications – Firms and managers should understand not only the dyadic relationships they are in but also the network structure. Dyadic characteristics affect collaboration, while the network also has effects on the collaboration of partners in vulnerable positions. Originality/value – The paper points out the role of the network as a countervailing safeguard for dyadic TSIs and network stability. Dyadic relationships are supported by the network.