Governance And Performance Under Asymmetry Of Buyer-seller Bargaining Power

While the fair is a prerequisite for business partnerships, but in reality does not exist absolutely fair play, the bargaining power of both parties will affect its status, authority and benefit distribution in cooperation directly. Even more in competitive manufacture in China. The collapse of many small and medium sized manufacture in the Pearl River Delta?Zhejiang and other places is a case. However, the focused on bargaining power is bargaining power affects the distribution of benefits and performance. Most scholars ignore the impact of the bargaining power to the governance. This paper attempts to establish a framework for exploratory research in view of resource dependency theory, and analysis the effect of bargaining power asymmetry to govern behavior, the impact of uncertainty on the governance practices and the performance.This paper suggest that the bargaining power asymmetry(generally speaking is the differences in bargaining power) between corporations and the uncertainty have an impact on the corporate governance. Through review and summary the literature, this article divide the governance mechanisms into contract governance and relationship governance, divide the contract governance into transactional provision and relational provision, and divide the relationship governance into inherent rules and external behaviors. Try to clarify the relationship between the different governance while explores the impact of governance on performance.Through reading the relevant literature and reference for scholars, this paper was established to explore the theoretical model and have empirical research from the aspects of bargaining power asymmetry, uncertainty, relationship management, contract management and performance. 97 valid questionnaires have been taken back through the method of scroll questionnaires. Using multiple linear regression analysis and structural equation modeling analysis, came to the following mainly conclusion:(1) the higher the bargaining power asymmetry, the better of transactional provision and external behaviors;(2) the higher the uncertainty, the better of all kinds of governance;(3)all kinds of governance have a positive effect on performance. The interaction of governance which give consideration to both normative, clarity and flexibility have a positive effect on performance; the interaction of governance which just consider the normative, clarity or the flexibility singly have a negative effect on performance.This paper take the bargaining power asymmetry into the framework of corporate governance, enrich the content of the corporate governance study in theory. The Empirical research findings also has some significance in practice. The research methods which combine qualitative and quantitative research provides a useful support for the conclusion. There are some shortcomings in this paper inevitably because of the limited ability of researchers and objective constraints, and to be improved in the future studies.