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Information Networks As A Safeguard From Opportunism In Industrial Supplier-Buyer Relationships

Author

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  • Heribert Gierl
  • Silke Bambauer

Abstract

The network idea has been gaining growing attention in the last decades. We analyse the applicability of networks as a mechanism that protects suppliers from buyers’ opportunism. So-called information networks can function as a safeguard for dependent suppliers by reducing information asymmetries among the networking parties and by developing group norms. To confirm this hypothesis, we conduct an empirical study. The results show that information networks can provide protection for a dependent supplier if information about a buyer’s unfair behaviour is credible, and if as a result this buyer suffers a considerable loss of reputation.

Suggested Citation

  • Heribert Gierl & Silke Bambauer, 2002. "Information Networks As A Safeguard From Opportunism In Industrial Supplier-Buyer Relationships," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 54(4), pages 335-350, October.
    • Handle: RePEc:sbr:abstra:v:54:y:2002:i:4:p:335-350
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    Cited by:

    1. Lucio Biggiero & Enrico Sevi, 2009. "Opportunism by cheating and its effects on industry profitability. The CIOPS model," Computational and Mathematical Organization Theory, Springer, vol. 15(3), pages 191-236, September.
    2. Gerrit Rooks & Werner Raub & Frits Tazelaar, 2006. "Ex Post Problems in Buyer–Supplier Transactions: Effects of Transaction Characteristics, Social Embeddedness, and Contractual Governance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 10(3), pages 239-276, September.

    More about this item

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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