Firstly,using the function of debt that it can make a commitment and convey information about a firm,i analyze how a firm use debt to incentive its upstream-downstream firms to make relationship-specific investments,and hypothesize that a firm\'s capital structure is negatively related to the relationship-specific investments of its upstream-downstream firms.

The result shows that there is a positive interaction between general relationship asset specific investment and guanxi investment;General relationship asset specific investment can improves relationship duration and relationship symmetry;Guanxi investment has a positive effect on relationship strength;Rel.

In order to improve the service quality of the logistics cooperation and to reduce the logistics costs,the cooperation contract should have the mechanism to encourage specific investment.

It argues hold up, commitment, dependence, and specific investment, which have been focused by most successful researches, are most important issues in studying inter firm relationship management.

Based on analyzing the conditions for self-enforcement of relational contracts,the paper designs optimized relational contracts algorithms,finding that specific investment can reach Pareto optimality under relational contracts.

The Characteristics and Roles of Specific Investments in Channel-partner Relationship:A Study of Japanese Automotive Industry;

This paper examines this “expropriation” scenario but also considers whether specific investments may actually “bond” the receiver and reduce opportunism under certain conditions.