Governance Mechanisms and Buyer Supplier Relationship:Static and Dynamic Panel Data Evidence from Tunisian Exporting SMEs
This study seeks to understand the effect of transactional and relational governance mechanisms on opportunism induced by the buyer supplier relationship. Using panel data of 386 Tunisian export companies between 2003 and 2008, the analysis shows that transactional as well as relational governance mechanisms are negatively related to the opportunistic behavior of the customer. In order to focus on internal corporate characteristics, the level of debt and the size of the buyer are controlled. This study supports the role of contracts as formal governance tool in reducing inter-firm opportunism which corroborates transaction cost economics. It also confirms some main notions in social exchange theory. The role of trust as relational mechanism in governing the buyer-supplier relationship has been verified. Finally, the findings of this paper sustain the complementarity view toward relational and transactional governance mechanisms. The paper offers insights to executives of companies to govern the buyer-supplier relationship in order to dispel opportunism by using simultaneously transactional and relational mechanisms.
Volume (Year): 1 (2011)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: http://www.econjournals.com|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Meryem Bellouma & Abdelwahed Omri & Sami Bennaceur, 2009. "The impact of lending relationship on risk premium and credit availability: evidence from Tunisia," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 1(3), pages 235-250.
- Liu, Yi & Li, Yuan & Zhang, Leinan, 2010. "Control mechanisms across a buyer-supplier relationship quality matrix," Journal of Business Research, Elsevier, vol. 63(1), pages 3-12, January.
- Allen N. Berger & Gregory F. Udell, 2001.
"Small business credit availability and relationship lending: the importance of bank organizational structure,"
Finance and Economics Discussion Series
2001-36, Board of Governors of the Federal Reserve System (U.S.).
- Allen N. Berger & Gregory F. Udell, 2002. "Small Business Credit Availability and Relationship Lending: The Importance of Bank Organisational Structure," Economic Journal, Royal Economic Society, vol. 112(477), pages F32-F53, February.
- Jain, Neelam, 2001. "Monitoring costs and trade credit," The Quarterly Review of Economics and Finance, Elsevier, vol. 41(1), pages 89-110.
- Bougheas, Spiros & Mateut, Simona & Mizen, Paul, 2009.
"Corporate trade credit and inventories: New evidence of a trade-off from accounts payable and receivable,"
Journal of Banking & Finance,
Elsevier, vol. 33(2), pages 300-307, February.
- Simona Mateut & Spiros Bougheas & Paul Mizen, . "Corporate trade credit and inventories: New evidence of a tradeoff from accounts payable and receivable," Discussion Papers 08/09, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
- Williamson, Oliver E, 1983. "Credible Commitments: Using Hostages to Support Exchange," American Economic Review, American Economic Association, vol. 73(4), pages 519-40, September.
- Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3-4), pages 573-588.
- Mian, Shehzad L & Smith, Clifford W, Jr, 1992. " Accounts Receivable Management Policy: Theory and Evidence," Journal of Finance, American Finance Association, vol. 47(1), pages 169-200, March.
- Yadong Luo, 2007. "An integrated anti-opportunism system in international exchange," Journal of International Business Studies, Palgrave Macmillan, vol. 38(6), pages 855-877, November.
When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2011-03-2. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilhan Ozturk)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.