Work

Buyers' perspectives on improving performance and curtailing supplier opportunism in supplier development: A social exchange theory approach

Year: 2022

Type: article

Abstract: Supplier development initiatives, instituted by buyers, may have both positive (performance improvement) and negative (supplier opportunism) outcomes. Consequently, it is important to understand the factors that increase the likelihood of positive outcomes and decrease supplier opportunism. Drawing on Social Exchange Theory, we introduce and validate a model whereby socially embedded commitments mediate the effects of investment in suppliers on supply chain outcomes. Structural Equation Modelling, utilizing a sample of 204 buyers in the fruit and vegetable supply chain in Vietnam, indicates that supplier development not only improves buyer performance, but also simultaneously increases supplier opportunism. However, the degree to which supplier development initiatives lead to positive or negative consequences depends on goal congruence and long-term orientation. The design of supplier development initiatives should, thus, be geared to fostering suppliers' long-term orientation and goal congruence between parties.

Source: Industrial Marketing Management

DOI: 10.1016/j.indmarman.2022.08.009

Authors: Phuong N.T. Tran, Matthew Gorton, Fred Lemke

Institutions: University of Economics Ho Chi Minh City, University of Bristol, Newcastle University, Vlerick Business School

Language: English

Topic: Quality and Supply Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,960

Funder: Đại học Kinh tế Thành phố Hồ Chí Minh