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Supplier Commitment In Relational Contract Exchanges With Buyers: A Study Of Interorganizational Dependence And Exercised Power

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  • Keith G. Provan
  • Jule B. Gassenheimer

Abstract

This study is an examination of the relationship between dependence and power in vertical interorganizational relations. Using data collected from a US national sample of office systems/furniture dealers, power‐dependence ties in low commitment supplier‐buyer dyads were compared with relational contracting dyads characterized by high levels of long‐term supplier commitment. When commitment was not considered, the exercised power of primary suppliers over dealer decisions was found to be related to dealer dependence on its primary supplier in ways that could be readily explained by social exchange views of power. In contrast, the relationship between exercised power and dependence was significantly different when the primary supplier ‐dependent buyer tie was characterized by the high supplier commitment of a relational contract.

Suggested Citation

  • Keith G. Provan & Jule B. Gassenheimer, 1994. "Supplier Commitment In Relational Contract Exchanges With Buyers: A Study Of Interorganizational Dependence And Exercised Power," Journal of Management Studies, Wiley Blackwell, vol. 31(1), pages 55-68, January.
    • Handle: RePEc:bla:jomstd:v:31:y:1994:i:1:p:55-68
    DOI: 10.1111/j.1467-6486.1994.tb00332.x
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    Cited by:

    1. Wang, Qingtao & Li, Julie Juan & Yang, Defeng, 2022. "Unequal participation in joint new product development: The roles of information opportunism concern and contract binding force," Journal of Business Research, Elsevier, vol. 145(C), pages 21-34.
    2. Xia Jun & Marshall S. Jiang & Sali Li & Preet S. Aulakh, 2014. "Practice Standardization in Cross-Border Activities of Multinational Corporations: A Resource Dependence Perspective," Management International Review, Springer, vol. 54(5), pages 707-734, October.
    3. Hartman, Paul & Ogden, Jeff & Jackson, Ross, 2020. "Contract duration: Barrier or bridge to successful public-private partnerships?," Technology in Society, Elsevier, vol. 63(C).
    4. Hengameh Fakhravar & Hesamoddin Tahami, 2022. "International Co-Branding and Firms Finance Performance," Papers 2202.07128, arXiv.org.
    5. Xhoxhi, Orjon & Pedersen, Søren Marcus & Lind, Kim Martin & Yazar, Attila, 2014. "The Determinants of Intermediaries’ Power over Farmers’ Margin-Related Activities: Evidence from Adana, Turkey," World Development, Elsevier, vol. 64(C), pages 815-827.
    6. Chung, Seungwha (Andy) & Kim, Gyeong Mook, 2003. "Performance effects of partnership between manufacturers and suppliers for new product development: the supplier's standpoint," Research Policy, Elsevier, vol. 32(4), pages 587-603, April.
    7. Lui, Steven S. & Ngo, Hang-yue & Hon, Alice H.Y., 2006. "Coercive strategy in interfirm cooperation: Mediating roles of interpersonal and interorganizational trust," Journal of Business Research, Elsevier, vol. 59(4), pages 466-474, April.
    8. He, Qile & Ghobadian, Abby & Gallear, David, 2013. "Knowledge acquisition in supply chain partnerships: The role of power," International Journal of Production Economics, Elsevier, vol. 141(2), pages 605-618.
    9. Zhu, Qinghua & Geng, Yong & Sarkis, Joseph, 2016. "Shifting Chinese organizational responses to evolving greening pressures," Ecological Economics, Elsevier, vol. 121(C), pages 65-74.
    10. Jurriaan L. Jong & W. C. Benton, 2019. "Dependence and power in healthcare equipment supply chains," Health Care Management Science, Springer, vol. 22(2), pages 336-349, June.
    11. Arntsen, Bjørnulf & Torjesen, Dag Olaf & Karlsen, Tor-Ivar, 2021. "Asymmetry in inter-municipal cooperation in health services – How does it affect service quality and autonomy?," Social Science & Medicine, Elsevier, vol. 273(C).
    12. Magnani, Giovanna & Zucchella, Antonella & Strange, Roger, 2019. "The dynamics of outsourcing relationships in global value chains: Perspectives from MNEs and their suppliers," Journal of Business Research, Elsevier, vol. 103(C), pages 581-595.
    13. Ziggers, Gerrit W. & Gagalyuk, Taras & Hanf, Jon, 2010. "Network governance at the firm and network level: Goals, routines, and social mechanisms," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 1(4), pages 342-351.
    14. Dickson, Geoff & Arnold, Trevor & Chalip, Laurence, 2005. "League Expansion and Interorganisational Power," Sport Management Review, Elsevier, vol. 8(2), pages 145-165, September.
    15. Muthusamy, Senthil Kumar & White, Margaret A., 2006. "Does power sharing matter? The role of power and influence in alliance performance," Journal of Business Research, Elsevier, vol. 59(7), pages 811-819, July.
    16. Paija, Laura, 2003. "Distribution of Intellectual Property Rights and the Development of Technology Suppliers," Discussion Papers 844, The Research Institute of the Finnish Economy.
    17. Das, T. K. & Teng, Bing-Sheng, 2001. "A risk perception model of alliance structuring," Journal of International Management, Elsevier, vol. 7(1), pages 1-29.

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