The Interplay Between Supplier-Specific Investments and Supplier Dependence: Do Two Pluses Make a Minus?

Supplier resources are critical to the success of downstream firms. The relational view and resource dependence theory predict how supplier-specific investments supplier make more willing allocate its best focal buyer relative other buyers. However, these theories ambiguous regarding interplay between two constructs. Specifically, combination could either create synergies that benefit or a situation in which reconsiders allocation decisions potentially allocates accounts We investigated competing views by building on independent dyadic datasets. found positive effects for both buyer's allocation, is measured as supplier's physical innovation we also evidence negatively moderates effect allocation. Hence, weakens when dependent business volume. These findings an important empirical contribution literature clarifying dual workings mechanisms influence discuss several implications buyer-supplier relationship broader management literature.