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Managing relationships with power advantage buyers: The role of supplier initiated bonding tactics in long-term buyer–supplier collaborations

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  • Wang, Yonggui
  • Wang, Na
  • Jiang, Ling
  • Yang, Zhilin
  • Cui, Victor

Abstract

Interorganizational long-term collaboration plays an important role in buyer and supplier relationships. However, the specific tactics a supplier firm should adopt when the buyer firm is power-advantaged and reluctant to maintain long-term collaboration remain unexplored. Drawing on resource dependence theory, this study argues that buyer power advantage makes the buyer reluctant to collaborate with the supplier in the long run. These findings further identify three types of relationship bonding tactics initiated by the supplier firm: customization, information sharing, and managerial ties to the buyer firm. Using a 131 matched buyer–supplier dyadic database, this paper's results show that buyer power advantage is negatively related to long-term collaboration. Supplier customization and managerial ties mitigate the effect of buyer power advantage on long-term collaboration. Nevertheless, the effect of information sharing on the relationship between buyer power advantage and long-term collaboration is not significant.

Suggested Citation

  • Wang, Yonggui & Wang, Na & Jiang, Ling & Yang, Zhilin & Cui, Victor, 2016. "Managing relationships with power advantage buyers: The role of supplier initiated bonding tactics in long-term buyer–supplier collaborations," Journal of Business Research, Elsevier, vol. 69(12), pages 5587-5596.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:12:p:5587-5596
    DOI: 10.1016/j.jbusres.2016.03.066
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    References listed on IDEAS

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    Cited by:

    1. Sheraz Alam Malik & Martin K. Hingley, 2021. "Consumer demand information as a re-balancing tool for power asymmetry between food retailers and suppliers," Economia agro-alimentare, FrancoAngeli Editore, vol. 23(2), pages 1-20.
    2. Tănăsescu Laurian Gabriel, 2017. "Mechanisms underlying major investment projects in the Romanian public administration: strong and long term collaboration among stakeholders," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 11(1), pages 949-959, July.
    3. Malik, Sheraz Alam & Hingley, Martin K., 2021. "Consumer demand information as a re-balancing tool for power asymmetry between food retailers and suppliers," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 23(2), July.
    4. Nassim Ghondaghsaz & Zarina Chokparova & Sven Engesser & Leon Urbas, 2022. "Managing the Tension between Trust and Confidentiality in Mobile Supply Chains," Sustainability, MDPI, vol. 14(4), pages 1-25, February.
    5. Victor Cui & Rajneesh Narula & Dana Minbaeva & Ilan Vertinsky, 2022. "Towards integrating country- and firm-level perspectives on intellectual property rights," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 1880-1894, December.
    6. Tran, Phuong Nguyen Thu & Gorton, Matthew & Lemke, Fred, 2021. "When supplier development initiatives fail: Identifying the causes of opportunism and unexpected outcomes," Journal of Business Research, Elsevier, vol. 127(C), pages 277-289.

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