Author(s) :

Emmanuel Chao.

Volume/Issue :

Abstract :

Proactive safeguard mechanism is essential especially when specific assets are involved in the inter-firm relationships. The paper intends to investigate key drivers behind the proactive safeguard mechanism. The empirical context for the study is Tanzanian producer and distributor firms, representing suppliers and buyers respectively. The sampling frame was based on Tanzania revenue authority records for registered business of 2008. Data were collected from distributor (buyer) firms. A random sample of n=150 buyers were contacted by phone call, of which n=130 were interested to participate. Findings suggest that Buyer specific assets, and volume uncertainty and relational confidence have a positive impact on pro-active safeguard mechanism. The interaction between buyer and supplier specific assets as well as that of between buyer and technological uncertainty were found to have a negative impact on proactive safeguard mechanism. Further, technological uncertainty was not found to have any significant impact on proactive safeguard mechanism. Key words: proactive safeguard mechanism, transaction cost analysis, institutional theory

No. of Downloads :

18