Supplier dependence weakens impact of buyer investments on resource allocation.
Supplier-specific investments and supplier dependence play a crucial role in how suppliers allocate their resources to different buyers. The study found that both investments made by the buyer and their level of dependence on the supplier positively influence resource allocation. However, when a buyer is highly dependent on a supplier, the impact of their specific investments on resource allocation weakens. This research sheds light on how these factors interact in the buyer-supplier relationship, providing valuable insights for managing supplier resources effectively.