Relationship Governance Dynamics: The Role of Partner Selection Efforts and Mutual Investments

We study inter-firm governance in the context of supplier-reseller relationships. Based on a longitudinal study we examine the roles that supplier selection efforts and mutual specific investments play, with respect to 1) motivating a supplier to make incremental investments, and 2) safeguarding these investments from supplier ex post transaction costs. We also examine the joint effects of selection efforts and mutual investments on supplier ex...