The profit impact of the transaction-specific assets: a process model of adaptive marketing resources

Abstract

This study proposes and tests a process model of the impact of the retailer's transaction-specific assets (TSA) on the retailer's profit. We found that product and promotional resources transacted across the firm boundary fully mediate the relationship between the retailer's TSA and the retailer's profit. Results support predictions that TSA embody the resource-based elements in a channel setting. Besides, the result shows that product resource is a more important resource that mediates the relationship between TSA and the retailer's profit than the promotion. Managerially, this study identifies the objectives of building up TSA and justifies the profit impact of TSA.

Keywords::

• asset specificity
• resource-based view
• marketing channel
• mediation analysis

Notes

^1. In our dataset, as all the retailers are small in size, the majority of their transaction-specific investment would be in the knowledge of the product and the transaction procedures of the manufacturer. Moreover, the market power of the retailers is similar and may not change the structure of the manufacturer's market.

^2. Cavusgil and Zou's (1994) promotion adaptation scale includes both product positioning and promotion adaptation level. Our scales differentiate these two distinct concepts and offer a richer content in the marketing channel setting.