Learning trajectory in offshore OEM cooperation: Transaction value for local suppliers in the emerging economies

Yuan Li, Peter Ping Li, Yi Liu, Dong Yang

Research output: Journal PublicationArticlepeer-review

69 Citations (Scopus)


We focus on the unique role of offshore OEM cooperation as a learning opportunity for local suppliers in the emerging economies. In particular, we conceptually argue and empirically confirm the links between learning intent, capability enhancement, governance mode, and overall innovativeness from the perspective of local suppliers in offshore OEM cooperation in China as well as the influence of local business culture within these links. We address two issues: (1) offshore OEM cooperation can be a unique opportunity for local suppliers with strong intent to learn from foreign buyers for capability enhancement and (2) the moderating effects of trust and contact as two distinctive governance modes. Addressing the two issues, we make two specific contributions to the research on inter-firm cooperation, both of which derive from the often-neglected theoretical lens of transaction value. Our general contribution lies in the extension of the transaction value perspective by specifying its dual tenets of inter-firm co-specialization and shared-trust as the central theme of inter-firm cooperation to complement the transaction cost economics and also contextualize the research on inter-firm cooperation in terms of different partners' perspectives as well as different governance modes.

Original languageEnglish
Pages (from-to)269-282
Number of pages14
JournalJournal of Operations Management
Issue number3
Publication statusPublished - May 2010
Externally publishedYes


  • Absorptive capacity
  • Emerging economy
  • Governance mode
  • Learning intent
  • Offshore OEM cooperation
  • Transaction value perspective

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering


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