How supplier exercised power affects the cooperative climate, trust and commitment in buyer-supplier relationships

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Facing rapid changes in technology and the globalisation of markets, it is now increasingly important for firms to work together to survive. Cooperation between buyers and suppliers helps to improve the efficiency of a supply chain as a whole for the benefit of all the parties involved, the exercise of power by suppliers is a critical factor that influences such cooperation. This study aims to investigate how supplier use of power affects the cooperative climate between a buyer and a supplier, buyer trust in the supplier, and buyer commitment, all from buyer's perspective. The relationships are hypothesised and investigated based on the empirical data collected from companies in the Taiwanese semiconductor industry. The results demonstrate that the supplier's use of non-coercive power can improve cooperation and trust between the buyer and supplier, and this can then enhance buyer's commitment. Practical suggestions are made based on the insights derived in this paper with the aim of achieving closer buyer-supplier relationships in highly competitive environments.

Original languageEnglish
Pages (from-to)662-673
Number of pages12
JournalInternational Journal of Business Excellence
Volume8
Issue number5
DOIs
Publication statusPublished - 2015 Jan 1

Fingerprint

Buyer-supplier relationships
Buyers
Suppliers
Climate
Supply chain
Competitive environment
Empirical data
Critical factors
Globalization
Semiconductor industry
Exercise

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management

Cite this

@article{f463a131f90247ec8b9c3f1427169f6f,
title = "How supplier exercised power affects the cooperative climate, trust and commitment in buyer-supplier relationships",
abstract = "Facing rapid changes in technology and the globalisation of markets, it is now increasingly important for firms to work together to survive. Cooperation between buyers and suppliers helps to improve the efficiency of a supply chain as a whole for the benefit of all the parties involved, the exercise of power by suppliers is a critical factor that influences such cooperation. This study aims to investigate how supplier use of power affects the cooperative climate between a buyer and a supplier, buyer trust in the supplier, and buyer commitment, all from buyer's perspective. The relationships are hypothesised and investigated based on the empirical data collected from companies in the Taiwanese semiconductor industry. The results demonstrate that the supplier's use of non-coercive power can improve cooperation and trust between the buyer and supplier, and this can then enhance buyer's commitment. Practical suggestions are made based on the insights derived in this paper with the aim of achieving closer buyer-supplier relationships in highly competitive environments.",
author = "Fan-Yun Pai",
year = "2015",
month = "1",
day = "1",
doi = "10.1504/IJBEX.2015.071275",
language = "English",
volume = "8",
pages = "662--673",
journal = "International Journal of Business Excellence",
issn = "1756-0047",
publisher = "Inderscience Enterprises Ltd",
number = "5",

}

TY - JOUR

T1 - How supplier exercised power affects the cooperative climate, trust and commitment in buyer-supplier relationships

AU - Pai, Fan-Yun

PY - 2015/1/1

Y1 - 2015/1/1

N2 - Facing rapid changes in technology and the globalisation of markets, it is now increasingly important for firms to work together to survive. Cooperation between buyers and suppliers helps to improve the efficiency of a supply chain as a whole for the benefit of all the parties involved, the exercise of power by suppliers is a critical factor that influences such cooperation. This study aims to investigate how supplier use of power affects the cooperative climate between a buyer and a supplier, buyer trust in the supplier, and buyer commitment, all from buyer's perspective. The relationships are hypothesised and investigated based on the empirical data collected from companies in the Taiwanese semiconductor industry. The results demonstrate that the supplier's use of non-coercive power can improve cooperation and trust between the buyer and supplier, and this can then enhance buyer's commitment. Practical suggestions are made based on the insights derived in this paper with the aim of achieving closer buyer-supplier relationships in highly competitive environments.

AB - Facing rapid changes in technology and the globalisation of markets, it is now increasingly important for firms to work together to survive. Cooperation between buyers and suppliers helps to improve the efficiency of a supply chain as a whole for the benefit of all the parties involved, the exercise of power by suppliers is a critical factor that influences such cooperation. This study aims to investigate how supplier use of power affects the cooperative climate between a buyer and a supplier, buyer trust in the supplier, and buyer commitment, all from buyer's perspective. The relationships are hypothesised and investigated based on the empirical data collected from companies in the Taiwanese semiconductor industry. The results demonstrate that the supplier's use of non-coercive power can improve cooperation and trust between the buyer and supplier, and this can then enhance buyer's commitment. Practical suggestions are made based on the insights derived in this paper with the aim of achieving closer buyer-supplier relationships in highly competitive environments.

UR - http://www.scopus.com/inward/record.url?scp=84940395406&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84940395406&partnerID=8YFLogxK

U2 - 10.1504/IJBEX.2015.071275

DO - 10.1504/IJBEX.2015.071275

M3 - Article

AN - SCOPUS:84940395406

VL - 8

SP - 662

EP - 673

JO - International Journal of Business Excellence

JF - International Journal of Business Excellence

SN - 1756-0047

IS - 5

ER -