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

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    Publication type
    Vlerick strategic journal article
    Author
    Tran, Phuong
    Gorton, Matthew
    Lemke, Fred
    Publication Year
    2022
    Journal
    Industrial Marketing Management
    Publication Volume
    106
    Publication Issue
    October
    Publication Begin page
    183
    Publication End page
    196
    
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    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.
    Keyword
    Supplier Development, Opportunism, Performance Improvement, Social Exchange Theory, Vietnam
    Knowledge Domain/Industry
    Marketing & Sales
    DOI
    10.1016/j.indmarman.2022.08.009
    URI
    http://hdl.handle.net/20.500.12127/7105
    ae974a485f413a2113503eed53cd6c53
    10.1016/j.indmarman.2022.08.009
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