The impact of trust and contract on innovation performance: The moderating role of environmental uncertainty
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AbstractResearch into two important control mechanisms for managing the supply chain relationship - contracts and trust - is on the rise. However, our understanding of how they influence innovation in a firm remains rather unclear. Thus, the primary objective of this study is to examine the individual and interactive effects of contracts and trust on firms' innovation performance and the contingent effects of environmental uncertainty on those relationships in China. The empirical results from a survey of Chinese manufacturing firms indicate that there is a positive relationship between trust and firms' innovation performance, an inverted U-shaped relationship between the use of contracts and firms' innovation performance, and that contracts and trust are substitutes. Moreover, we find that environmental uncertainty enhances the effects of trust, but does not influence the impact of contracts on innovation performance. (C) 2011 Elsevier B.V. All rights reserved.
All Author(s) ListWang LW, Yeung JHY, Zhang M
Journal nameInternational Journal of Production Economics
Volume Number134
Issue Number1
Pages114 - 122
LanguagesEnglish-United Kingdom
KeywordsChina; Contract; Environmental uncertainty; Innovation; Trust
Web of Science Subject CategoriesEngineering; Engineering, Industrial; ENGINEERING, INDUSTRIAL; Engineering, Manufacturing; ENGINEERING, MANUFACTURING; Operations Research & Management Science; OPERATIONS RESEARCH & MANAGEMENT SCIENCE

Last updated on 2021-23-01 at 01:04