Buyer Supplier Dyads Research Articles

The paradoxical nature of greening transportation: an analysis of tensions in buyer–supplier dyads

PurposeContradictory sustainability priorities and perspectives among supply chain actors in greening transportation can be challenging. Several of these contradictions can be described as paradoxes (i.e. interests that are logical in themselves, but become irrational when perceived together). The aim of this study is to increase the understanding of paradoxical tensions hampering the greening of transportation in transport buyer–supplier dyads.Design/methodology/approachA case study method targeting greening transportation in two transport buyer–supplier dyads was applied, followed by an analysis with a point-of-departure in paradox theory.FindingsTensions related to performing, belonging, learning and organizing paradoxes in greening transportation were identified. These tensions arise as a consequence of actions, perspectives and other tensions, within three identified loci in individual companies and in dyads.Research limitations/implicationsBy identifying examples of tensions through the lens of paradoxes in a particular setting, this study provides an increased understanding of why the transition toward green transportation goes slow, despite the high ambitions of involved actors. The suggested framework provides a novel contribution to the literature that further increases the understanding of tensions, by providing additional insights into where tensions arise and how actions, perspectives and tensions in one place of a locus spectrum can disseminate along that spectrum.Originality/valueThis study is original because it applies paradox theory and the four categories of performing, belonging, learning and organizing within the field of greening transportation, and in particular as a lens to study interactions between different actors.

Establishing buyer-supplier self-organization through LSP brokered learning and information technologies: The effects on relational performance in logistic service triads

Logistics service providers (LSPs) can have a profound impact on other companies operating in supply chains. To investigate the role of LSP, we propose and develop the concept of brokered LSP learning (i.e., supply chain learning run by the LSP) as exploitation and exploration practices imposed by the single actor to run organizational learning among supply chain actors. The research examines how supply chain learning run by the LSP affects self-organization of the buyer-supplier dyad and triadic relational performance. Our results provide insight into whether LSP-brokered learning alone is sufficient to improve triadic relational performance. The study shows that LSP-brokered learning, supported by decentralized technologies, has a positive effect on buyer-supplier self-organization. As a resulting effect, the study also operationalizes triadic relational performance composed of the joint impact of relational performances produced by three dyads in the logistics service triads, which can be improved by buyer-supplier self-organization.

The relationships between ethical codes of conduct, ethical supplier risks, and financial performance: a buyer-supplier perspective

Although ethical codes of conduct are commonly used in supply chain management, the effectiveness of the codes has been questionable and the ethical risks from a supplier are rarely examined in a buyer-supplier dyad. Drawing on the literature on supply management, business ethics, agency theory and stakeholder theory, we propose that both the buyer and supplier should adopt ethical codes of conduct in order to reduce ethical supplier risk and improve their financial performance. A survey of 200 pairs of matched manufacturers and suppliers was conducted from automotive, clothing, food and pharmaceutical industries in China. Structural equation modelling was used to analyse the data. Our findings show that the implementation of buyer (supplier)’s ethical codes positively relate to its financial performance, and the buyer’s ethical codes positively relate to the supplier’s financial performance through ethical supplier risk. Our findings provide new empirical evidence on the critical significance of ethical codes of conduct and the particular role of suppliers in the adoption of this initiative in a supplier-buyer dyad.

Sustaining commitment in preferred buyer-supplier relationships: How to retain the ‘customer of choice’ status?

Securing commitment and preferential treatment from suppliers is crucial for buying firms in a competitive marketplace. This study delves into the dynamics of how buying firms, which have already earned preferential treatment and thus already had been recognized as preferred customers or ‘customers of choice,’ can sustain supplier commitment and preserve this coveted status in a competitive market. Anchoring our investigation into the foundational principles of transaction cost economics and social exchange theory, we offer a novel theoretical perspective by examining the interplay of buyer behaviors and attributes, including supplier development and involvement, information sharing, market attractiveness, operative excellence, importance for the supplier's business, and relationship continuity expectations. To gain insight into these dynamics,we analyze primary survey data from 215 strategic buyer-supplier dyads through structural equation modeling. Our analysis reveals that supplier development and involvement directly fosters sustained commitment. Intriguingly, the role of information sharing is found to have asignificant impact as well, albeitindirectly, mediated through the buyer's characteristics. Additionally, while supplier development, involvement, and information sharing positively influence expectations regarding relationship continuity, a similar mediating effect on sustained commitment is absent. By further employing Fuzzy Set Qualitative Comparative Analysis, our study uncovers three distinct configurations that buyers can leverage to sustain supplier commitment and secure their ‘customer-of-choice’ status. These findings extend the theoretical understanding of buyer-supplier collaboration dynamics and provide practical insights for buyers striving to enhance the value and longevity of their supplier relationships.

Unveiling the value of institutional pressure in socially sustainable supply chain management: The role of top management support for social initiatives and organisational culture

AbstractThis study aims to explore the factors that motivate firms to adopt socially sustainable supply chain management (socially SSCM) practices. To address this question, we seek to investigate the effect of institutional pressure on firms' socially SSCM (i.e., assessment and collaboration) and the mediating role of top management support (TMS) for social initiatives. We also argue that organisational culture, which comprises flexibility and control orientation, influences the process from institutional pressures to TMS for social initiatives. Using survey data from 248 buyer–supplier dyads in China, we find that institutional pressure positively influences companies to enhance socially SSCM, including assessment and collaboration practices. Moreover, TMS for social initiatives plays mediating role in the relationship between institutional pressure and socially SSCM. Moreover, flexibility‐orientated culture weakens the influence of institutional pressure on TMS for social initiatives, whereas the effect of institutional pressure on TMS for social initiatives intensifies as control‐orientated culture increases. This study contributes to the literature by stressing the social dimension of SSCM and linking institutional and organisational factors involved in social ethics issues to understand buying firms' tendency to achieve socially SSCM.

The impact of suppliers' CSR controversies on buyers' market value: The moderating role of social capital

A firm's CSR controversies can affect not only the firm itself but also its supply chain partners. However, existing studies have predominantly focused on the influence of a firm's own CSR controversies; the spillover effect along supply chains has received insufficient attention. This study examines the impact of suppliers' CSR controversies on buyers' market value, as well as the moderating role of buyers' social capital. Using data from 462 buyer-supplier dyads of Chinese listed firms from 2008 to 2019, we find that suppliers' CSR controversies are significantly negatively related to buyers' market value, and that environmental controversies have a stronger negative effect than social controversies. This negative association can be alleviated by buyers' social capital in the forms of political, business, and financial capital. Our study has significant implications for both research and practice in the increasingly important domain of CSR management in supply chains.

Realizing operational and innovation benefits in buyer–supplier relationships: the role of close ties to the partner's partners

PurposeAs buyers and suppliers seek to create value, they face the challenge of creating an environment that promotes coordination and information sharing and discourages opportunism. While the literature suggested dyadic mechanisms to create such an environment, this study focuses on ties beyond the buyer–supplier dyad. Specifically, close connections to one's partner's partners (CPP) are crucial in the realization of benefits for buyers and suppliers.Design/methodology/approachDrawing from embeddedness theory and governance theory, the authors developed a contingency framework to examine when CPP are beneficial or counterproductive considering two dyadic attributes – relational capital (RC) and partner dependence. Analyses were conducted using data from a dyadic survey complemented with archival data on 106 buyer–supplier relationships (BSRs).FindingsThe study reveals that CPP both help and hurt in the realization of benefits. Stark asymmetries exist between the impact of CPP on the buyer and supplier sides. For buyers, CPP exert a direct positive effect on operational and innovation benefits. For suppliers, the effect of CPP on operational and innovation benefits is contingent on buyer dependence and RC – CPP serves as a substitute for buyer dependence and RC. There are no such contingency effects for buyers. Further analysis identifies situations for suppliers when CPP hurt the realization of benefits.Originality/valueThe study highlights the importance of CPP to foster efficiency and innovation within BSRs and illustrates how their impact varies across contingency conditions and across the parties within a dyad.

Technological capability strength/asymmetry and supply chain process innovation: The contingent roles of institutional environments

Despite the importance of process innovation in fostering supply chain competitiveness, existing studies primarily emphasize product innovation and overlook institutional environments. This study builds on the dyadic capability-based view and institutional theory to investigate how buyer's and supplier's technological capabilities jointly affect supply chain process innovation in China. We differentiate between two distinct dimensions, technological capability strength and technological capability asymmetry, and propose that technological capability strength negatively influences supply chain process innovation whereas technological capability asymmetry promotes such innovation. We also examine how formal (i.e., government intervention) and informal (i.e., guanxi importance) institutional factors moderate the effects of technological capability strength and asymmetry on supply chain process innovation. Empirical analyses based on 157 buyer–supplier dyads in China offer strong support for our hypotheses, which provide important implications for the supply chain innovation collaboration literature and managerial practice.

Does suppliers’ slack influence the relationship between buyers’ environmental orientation and green innovation?

Although researchers have analysed how environmental strategy affects firm competitiveness, they have often overlooked the potential influence at the supply chain level. Building on the resource-based view and the behavioural theory of the firm, this study examines the effect of buyers’ environmental orientation on their green innovation and the influencing role of suppliers’ critical slack resources (i.e., inventory slack, capacity slack, and technology slack). A panel data regression method is used to analyse data on 689 buyer–supplier dyads from Chinese listed manufacturing firms over the period 2008–2019. Our findings suggest that buyers’ environmental orientation is positively related to their green innovation. Suppliers’ capacity slack and technology slack positively moderate this relationship, whereas inventory slack does not. This study contributes to the growing literature on environmental management and supply chain management, and has significant implications for managers.

A case and framework for expanding the use of model‐free evidence

A case and framework for expanding the use of model‐free evidence

Business-to-Business (B2B) Website Use by Buyer-Supplier Dyads in India: A Framework for Determining the System Pressures to Use

Business-to-Business (B2B) Website Use by Buyer-Supplier Dyads in India: A Framework for Determining the System Pressures to Use

Selecting resilient suppliers: Supplier complexity and buyer disruption

The selection of suppliers has a long-term impact on the performance of the buying firm. This is true in stable situations as well as in times of uncertainty, such as during the COVID-19 pandemic. Building on the literature on supplier selection criteria that would help identify suppliers that support the success of the buying firm, we identify a previously unnoticed criterion: a supplier's complexity. In this study, we examine the relationship between supplier complexity and buyer disruptions. Normal accident theory suggests that complex firms are more prone to disruption, while social systems theory views firm-level complexity as essential in avoiding disruption. Given these two opposing theoretical viewpoints, this study examines whether and how supplier complexity affects numbers of disruptions experienced by the buyers. Our data collection entails 59 buyer-supplier dyads, extended to a triadic context (i.e., buyer-supplier-supplier), through a survey taken from 118 German manufacturing firms. The results show that both the internal complexity of a supplier and the complexity of the collaboration with other suppliers increases the number of disruptions experienced by the buyer. A high degree of supplier dependence can dampen this effect. These results introduce a supplier's complexity as a relevant criterion for supplier selection and shed light on the moderating influence of supplier dependency.

Tie strength, tie brokerage and buyer–supplier co-exploration: a novelty–action trade-off

PurposeIn the pursuit of co-exploration, the strength and brokerage dimensions of dyadic ties create a novelty–action trade-off: tie strength facilitates coordination but constraints novelty, while tie brokerage expands knowledge diversity but aggravates coordination difficulty. This study contributes towards a better understanding of this tension by comparing two dimensions of relational ties and examining their contingent values given different environmental factors and exchange characteristics.Design/methodology/approachThe authors used survey data from 194 matched buyer–supplier dyads in China's high-tech industries and employed hierarchical moderated regression analysis to test the proposed hypotheses.FindingsThe authors find that compared with tie strength, tie brokerage has a stronger positive effect on co-exploration. Moreover, guanxi importance amplifies the effect of tie strength while decreasing the value of tie brokerage. As market uncertainty increases, the role of tie brokerage becomes more salient. Additionally, tie strength becomes less effective when buyer centralization is high, whereas tie brokerage exerts a stronger impact on co-exploration when an exchange is highly formalized.Originality/valueThis study contributes to the supply chain literature by adopting a relational perspective to integrate relational ties into the study of buyer–supplier co-exploration and by elaborating on the different implications of tie strength and tie brokerage in resolving the novelty–action trade-off. Furthermore, it provides a more nuanced understanding of when distinct dimensions of relational ties are effective, by clarifying boundary conditions in terms of environmental factors and exchange characteristics.

Fairness asymmetry, changes in mutual trust, and supplier performance in buyer-supplier exchanges in China: A dyadic view

Despite the crucial role of fairness in establishing and maintaining interfirm trust, the literature on how asymmetric perceptions of fairness affect mutual trust over time is limited. Adopting a dyadic view, this study investigates the impacts of fairness asymmetry on changes in mutual trust in marketing channel relationships. We further suggest that fairness asymmetry inhibits supplier performance through the mediating role of changes in mutual trust. With a two-wave sample of 239 buyer–supplier dyads, our study demonstrates that fairness asymmetry leads to a decrease in mutual trust over time, which in turn reduces supplier performance. Moreover, joint asset specificity weakens, whereas market uncertainty and behavioral uncertainty aggravate the negative effect of fairness asymmetry on buyer–supplier mutual trust. Our work offers fresh insights into the implications of fairness in ongoing buyer–supplier relationships and guidelines for practitioners to better manage their channel partnerships.

Trust Asymmetry and Changes in Supplier Performance: An Institutional View

Despite the long recognition of the dyadic nature of interfirm trust, prior studies have not examined how trust asymmetry affects relationship outcomes. This study examines trust asymmetry in buyer-supplier exchanges from a dyadic perspective, predicting that when buyer trust is greater than supplier trust, trust asymmetry leads to a decrease in supplier performance over time. However, when suppliers trust more than buyers, the prediction is that trust asymmetry results in an increase in supplier performance. The study further incorporates an institutional view to examine the moderating roles of legal support and regulatory uncertainty. An analysis of a two-wave survey of 229 buyer-supplier dyads provides support for the effects of trust asymmetry. Moreover, legal support weakens the negative impact of buyer trust asymmetry and the positive role of supplier trust asymmetry, while regulatory uncertainty magnifies the influence of buyer trust asymmetry. These findings provide fresh insights into the dyadic nature of trusting relationships and offer important implications for trust research and for better management of firm exchange relationships.

Just Like Me? How Reciprocal Judgements of Trust Underlie Innovations in Buyer-Supplier Exchanges

The cognition underlying buyer-supplier judgments and the symmetry of those perceptions, which influence collaborative innovations, remain understudied. In this study, we examine three specific forms—competence, benevolence, and calculative trust—along with their impacts on tacit knowledge sharing and product and process innovations between buyer and supplier. Based on a sample of 250 buyer-supplier dyads, our results show that the amount and degree of product and process innovations for both parties increase as a function of like-minded perceptions of benevolence and competence, but fail to support the contention that calculative trust supports innovation. Our overarching conceptual model of innovation, which we empirically confirm, demonstrates two additional findings: (1) Technological uncertainty is an important exogenous factor impacting innovation, as it creates opportunities for each firm to improve its competitive positioning through product and process innovations, and (2) tacit knowledge mediates this relationship, as it fosters innovation by enabling the novel recombination of knowledge.

The role of cognitive capital in supply chain resilience: an investigation during the COVID-19 pandemic

PurposeResearch on the “black box” of cognitive capital remains limited in supply chain resilience (SCRES) literature. Drawing from an in-depth single case study of a major consumer electronics multinational facing the COVID-19 disruption, this paper aims to develop a clearer picture of cognitive capital’s elements while contextualizing how they interact with SCRES temporal capabilities to prepare, respond, recover and learn.Design/methodology/approachConsisting of 40 in-depth interviews collected during a four-month period, this single case revolves around the buyer’s view across 36 multiregional buyer–supplier dyads, spanning 17 product and service categories. Data were processed during the pandemic, while findings discuss pre- and intra-crisis events based on two scenarios: the impact of disruption on category demand, comparing sudden pandemic-driven product and service demand fluctuations (i.e. increase, decrease); and the geographical proximity of the supplier relative to the buying firm.FindingsThe case unveils different elements of cognitive capital (e.g. shared goals, assumptions, values, kinesics language, multilingualism, virtual negotiation, prior disruption experience, shared process capabilities) during a major global disruption, suggesting that different cognitive capital elements influence positively and differently SCRES’ temporal capabilities. Overall, buying firms are urged to build on cognitive capital to improve SCRES preparation, response, recovery and learning.Originality/valueThis paper extends the understanding of cognitive capital in buyer–supplier relationships by identifying its elements and offering a theoretical articulation of how they enable episodically the four SCRES temporal capabilities under contingencies of increased and decreased demands, and suppliers’ geographical proximity.

B2B eWOM on Alibaba: Signaling through online reviews in platform-based social exchange

This study investigates the contemporary role of electronic word-of-mouth (eWOM) in business exchanges through buyers' signaling of observable and unobservable supplier characteristics on the Alibaba e-commerce platform. Utilizing a qualitative pre-study of 20 interviews (five buyer–supplier dyads with two interviews per firm) and more than 8000 buyer reviews on Alibaba, we identify characteristic patterns of this type of B2B eWOM.Signaling Theory and Social Exchange Theory underpin the empirical investigation. To enable further conceptualization, the study distinguishes between online B2B reviews based on the extent to which they are controlled by organizational partners. Unlike some other forms of B2B reviews, reviews on Alibaba are uncontrolled and comprise a form of eWOM.Findings indicate that the relational patterns of B2B eWOM shared on Alibaba can be aggregated into three categories: human touch, responsiveness, and resilience. Besides these new categories, the importance of product/service quality has been confirmed. Through Alibaba reviews, buyers' signals are sent not only to suppliers as feedback, but also to other prospective buyers to influence their purchase decisions.Our study aims to contribute to the B2B literature on eWOM and signaling in business relationships. By showing that human touch occurs even in online-only buyer–supplier relationships, the study provides evidence that bonding, the development of mutuality, and relationship intimacy in buyer–supplier relationships does not always require in-person contact. Managerial implications are offered with a focus on the signaling of unobservable qualities, such as human touch, with the help of B2B eWOM.

Buyer-supplier dyad on performance and sustainability

PurposeThis paper investigates how the configuration of a supplier’s sustainable operations practices (SOPs) with a high sustainable performance affects a buyer’s organizational performance in the buyer-supplier dyad.Design/methodology/approachThis study first identifies the key SOPs using bibliometric and content analyses. Then, the research hypotheses are proposed using complexity theory and the resource-based view. This study applies fuzzy-set qualitative comparative analysis (fsQCA) on a sample of 74 buyer-supplier dyads in China to explore the configurations of a supplier’s SOPs that may attain a high sustainable performance. An analysis of variance (ANOVA) is performed to test the effects of these configurations on a buyer’s financial and operational performance.FindingsThe empirical findings inform that six configurations of a supplier’s key SOPs lead to a high sustainable performance, and are linked to a buyer’s operational and financial performance. A buyer’s financial performance is highest when its supplier adopts a combination of SOPs corresponding to the defensive, accommodative, and proactive sustainability strategies. A buyer’s operational performance is relatively high when its supplier adopts a combination of SOPs corresponding to the defensive and accommodative sustainability strategies.Originality/valueThis study is the first to draw on complexity theory and the resource-based view as complementary frameworks to analyze how the configuration of a supplier’s SOPs with a high sustainable performance affects a buyer’s organizational performance in the buyer-supplier dyad.

Expanding the boundaries of buyer-supplier agency problems: Moving from dyad to triad

Extant agency theory addresses dyads consisting of a principal and an agent. It informs us about how to overcome agency problems in the buyer-supplier relationship. In this conceptual paper, we propose a theoretical argument that if we expand the boundary conditions from dyads to triads, we find new solutions to dealing with agency problems. To the buyer-supplier dyad, we add the supplier’s supplier, the buyer’s other supplier, the supplier’s other customer, and the buyer’s customer. As such, we consider four types of triads in supply chains and propose that the buyer as the principal could reframe agency problems with the focal supplier by moving to one of these triads. In particular, we investigate alternative mechanisms that may reduce the level of goal incongruence, information asymmetry, and power asymmetry in the buyer-supplier relationship. Our conceptualization suggests that supply managers should look outside the buyer-supplier dyad for additional opportunities to resolve agency problems.