The impact of asset specificity and investment collaboration on business performance with mediating of relational and contractual governance: evidence from offshore oil companies in Indonesia

Raden Edi Sewandono, Satya Arinanto, Agus Yudha Hernoko, Mohamad Dian Revindo

Research output: Contribution to journalArticlepeer-review

Abstract

This research analyses the significance of human asset specificity (HAS), physical asset specificity (PAS), and investment collaboration (IC) in Indonesia’s offshore companies, affecting the business performance through mediator variables. Implementing theory of transaction cost economic (TCE) and relational view to examine these interactions; some hypotheses are constructed, regarding contractual governance (CG), and relational governance (RG) as a mediating variable. The research applies partial least square-structural equation modelling (PLS-SEM) to analyse data sample that comprises 159 offshore companies in Indonesia. The study analyses how HAS, PAS, and IC on business performance is influenced by CG and RG. The study strengthens the literature on HAS, PAS and IC by theoretically exposing and empirically enlightening how CG and RG collaborating effect a positive relation among HAS, PAS, IC, and business performance.

Original languageEnglish
Pages (from-to)252-284
Number of pages33
JournalInternational Journal of Integrated Supply Management
Volume16
Issue number3
DOIs
Publication statusPublished - 2023

Keywords

  • business performance
  • contractual governance
  • HAS
  • human asset specificity
  • investment collaboration
  • PAS
  • physical asset specificity
  • relational governance
  • transaction cost economic

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