Comply or defy? An empirical investigation of change requests in buyer-supplier relationships

Abstract

Purpose – The purpose of this study is to examine change requests in buyer-supplier relationships. Change requests arise when a channel partner wants an addition or alteration to the agreed-upon deliverable. Although these requests are intended to enhance consumer satisfaction and supply chain performance, they complicate development and production processes and may delay time to market. Responses to change requests may embody compliance or malice, yet research to date has not examined these requests in interfirm relationships. To this end, the authors examine supplier reactions (compliance and opportunism) to change requests made by the buying firm. Design/methodology/approach – Survey data gathered from 118 third-party developers (i.e. suppliers) reporting on their relationship with the software buyer provide an initial test for the authors’ proposed model. Findings – The results of a path analysis indicate that change requests are related positively to supplier compliance with those requests and supplier opportunism. Outcome-based control decreases supplier compliance when there are extensive change requests. Behavioral control, in contrast, increases supplier compliance particularly when the buyer provides support for the requested changes. Research limitations/implications – Future research should examine relational governance and ex ante control mechanisms as alternatives to outcome-based and behavioral control. Practical implications – The authors’ results suggest that buyers requesting extensive changes should use behavioral control mechanisms and provide support to the supplier implementing the changes. Originality/value – The authors provide a preliminary examination of suppliers’ reactions to change requests made by buying firms. The authors argue that these requests may limit the autonomy of the supplying firms, creating reactance effects. The authors investigate outcome-based control, behavioral control and buyer support as factors that influence supplier reactions to change requests.