The influence of inter-firm relationships on the outcome of new service development: a study of Taiwanese convenience store industry

Abstract

This article uses a comparative case study design to investigate how inter-firm relationships affect the outcome of new service developments (NSD). Empirical evidence comes from the development of two e-commerce services in the four dominant Taiwanese convenience store chains. This study found that the interdependence between case companies and fundamental suppliers tends to be characterised by high switching cost and accompanied with ownership for both service developments. In contrast, the interdependence between case companies and non-fundamental suppliers is based on valuable resources. Moreover, case companies cooperate with their suppliers (i.e. fundamental and non-fundamental) on the basis of trust created by previous cooperative experience, the supplier's good capability and contract in two service developments. In particular, this study found that interdependence (asymmetrical or mutual) and a higher level of trust between firms shortens the time required for NSD.

Keywords:

• interdependence
• trust
• speed of new service development