Title: 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

Authors: Raden Edi Sewandono; Satya Arinanto; Agus Yudha Hernoko; Mohamad Dian Revindo

Addresses: School of Strategic and Global Studies, Universitas Indonesia, Salemba Campus, Jl. Salemba Raya No.4, RW.5, Kenari, Kec. Senen, Kota Jakarta Pusat, DKI Jakarta, 10430, Indonesia ' School of Strategic and Global Studies, Universitas Indonesia, Salemba Campus, Jl. Salemba Raya No.4, RW.5, Kenari, Kec. Senen, Kota Jakarta Pusat, DKI Jakarta, 10430, Indonesia ' Universitas Airlangga, Jl. Airlangga No. 4-6, Airlangga, Kec. Gubeng, Surabaya, Jawa Timur 60115, Indonesia ' School of Strategic and Global Studies, Universitas Indonesia, Salemba Campus, Jl. Salemba Raya No.4, RW.5, Kenari, Kec. Senen, Kota Jakarta Pusat, DKI Jakarta, 10430, Indonesia

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.

Keywords: human asset specificity; HAS; physical asset specificity; PAS; investment collaboration; contractual governance; relational governance; business performance; transaction cost economic.

DOI: 10.1504/IJISM.2023.132188

International Journal of Integrated Supply Management, 2023 Vol.16 No.3, pp.252 - 284

Received: 31 Mar 2022
Accepted: 08 Jan 2023
Published online: 12 Jul 2023 *

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