Interfirm Trust and Dependence Asymmetry

2015 ◽  
pp. 493-493
Author(s):  
Nermin Eyuboglu ◽  
Sungmin Ryu ◽  
Sharon Smith
Keyword(s):  
Interfirm Trust ◽  
Dependence Asymmetry

scholarly journals Supplier-initiating risk management behaviour and supply-side resilience: the effects of interpersonal relationships and dependence asymmetry in buyer-supplier relationships

2020 ◽  
Vol 40 (7/8) ◽  
pp. 971-995
Author(s):  
Yiyi Fan ◽  
Mark Stevenson ◽  
Fang Li
Keyword(s):  
Risk Management ◽  
Interpersonal Relationships ◽  
Supply Side ◽  
Large Set ◽  
Supplier Relationships ◽  
Content Type ◽  
Management Behaviour ◽  
Wide Range ◽  
Dependence Asymmetry ◽  
The Relationship

PurposeThe aim of the study is to explore how two dimensions of interpersonal relationships (i.e. size and range of relationships) affect supplier-initiating risk management behaviours (SIRMB) and supply-side resilience. Further, the study aims to explore the moderating role of dependence asymmetry.Design/methodology/approachNine hypotheses are tested based on a moderated mediation analysis of survey data from 247 manufacturing firms in China. The data are validated using a subset of 57 attentive secondary respondents and archival data.FindingsSIRMB positively relates to supply-side resilience. Further, SIRMB mediates the positive relationship between range and supply-side resilience, and this relationship is stronger at lower levels of dependence asymmetry. Yet, although dependence asymmetry positively moderates the relationship between range and SIRMB, it negatively moderates the relationship between size and SIRMB. We did not, however, find evidence that size has a conditional indirect effect on supply-side resilience through SIRMB.Practical implicationsManagers in buying firms can incentivise SIRMB to enhance supply-side resilience by developing a diverse rather than a large set of interpersonal relationships with a supplier. This might include allocating particular employees with a wide range of contacts within a supplier to that relationship, while it may be necessary to adopt different networking strategies for different supplier relationships. Firms in a highly asymmetrical relationship may seek to raise supplier expectations about the necessity to initiate risk management behaviour or look to change the dynamic of the relationship by managing contracts for fairness.Originality/valueNew knowledge on SIRMB as a mediating variable underpinning the relationship between interpersonal relationships and supply-side resilience is provided; and empirical evidence on the opposing moderation effect of dependence asymmetry is presented.

The effect of power use on specific investments: the moderating role of interdependence structure

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Min Tian ◽  
Baofeng Huo ◽  
Yu Tian
Keyword(s):  
Specific Power ◽  
Coercive Power ◽  
Supplier Relationships ◽  
Content Type ◽  
Specific Investments ◽  
Dependence Asymmetry ◽  
Different Types ◽  
Single Construct ◽  
Perceived Relationships

PurposePower use widely exists in buyer–supplier relationships (BSRs). Different directions of power use (i.e. buyer's power use and supplier's power use) intertwining with different types of power (i.e. coercive and noncoercive power) make it insufficient to regard power use as a single construct when examining its effect on a firm's following response. Besides, interdependence structure characterized by joint dependence and dependence asymmetry may influence the effect of a specific power use by shaping the firm's interpretation and cognition toward the relationship. Specifically, this study examines how four types of power use a buyer facing and an interdependence structure with its supplier affect its specific investments to the supplier.Design/methodology/approachThis study tests the proposed relationships using regression analysis, based on data from 240 manufacturing firms in China on their perceived relationships with their major suppliers.FindingsResults show that buyer's coercive power use (BCP) negatively affects buyer's specific investments while noncoercive power use (BNP) does not play a significant role. Both supplier's coercive power use (SCP) and noncoercive power use (SNP) are positively related to buyer's specific investments. Joint dependence positively moderates the effect of BNP and dependence asymmetry negatively moderates the effects of BCP and SNP on buyer's specific investments.Originality/valueThis study contributes to the literature on power use by identifying different types of power use and their different roles in influencing buyer's specific investments. The study also contributes to the literature on interdependence structure by demonstrating the different roles of joint dependence and dependence asymmetry.

How does interfirm trust influence radical innovation in R&D alliance?

2013 ◽  
Vol 2013 (1) ◽  
pp. 13984
Author(s):  
Wei Yang ◽  
Longwei Wang ◽  
Shenggang Ren ◽  
Zelong Wei
Keyword(s):  
Radical Innovation ◽  
Interfirm Trust

The puzzling affinity between modularity and dependence asymmetry

2014 ◽  
Vol 20 ◽  
pp. 195-200 ◽  
Author(s):  
Gilberto Corso ◽  
N.F. Britton
Keyword(s):  
Dependence Asymmetry

scholarly journals The Effects of Dependence on Brazilian Third-Party Logistics Satisfaction

2022 ◽  
Vol 26 (1) ◽  
Author(s):  
Antonio Carlos Rodrigues ◽  
Ricardo Silveira Martins
Keyword(s):  
Response Surface ◽  
Surface Analysis ◽  
Response Surface Analysis ◽  
The Other ◽  
Third Party ◽  
Third Party Logistics ◽  
Supplier Relationships ◽  
Dependence Asymmetry ◽  
The Relationship ◽  
Asymmetric Relationships

ABSTRACT Context: studies argue that similar levels of dependence are essential for supplier satisfaction in buyer-supplier relationships. However, asymmetric relationships can also lead to supplier satisfaction. Objective: this paper investigates the effects of benefit-based dependence (positive motivations for maintaining relationships) between buyer and supplier and supplier satisfaction. Methods: response surface analysis (RSA) was used to test the relationship between third-party logistics (3PL) dependence and satisfaction dimensions in 174 dyads. Results: the results demonstrated that about supplier satisfaction, instead of dependence asymmetry what really matters is the degree of dependence between the parties. The more dependent one part is on the other, usually, the greater the supplier’s satisfaction. In many circumstances, a degree of dependence is acceptable and necessary to access resources and opportunities. Conclusions: the interaction between buyer and supplier dependence and supplier satisfaction is complex. Situations of dependence asymmetry in which the supplier is highly dependent on the buyer may still be satisfactory.

Acquisition negotiation: the influence of accounting on trust development

2017 ◽  
Vol 15 (1) ◽  
pp. 12-27 ◽  
Author(s):  
Hannu Puhakka
Keyword(s):  
Ad Hoc ◽  
Case Study Research ◽  
Risky Behaviors ◽  
Negotiation Process ◽  
Content Type ◽  
Acquisition Process ◽  
Trust Development ◽  
Negative Beliefs ◽  
Interfirm Trust ◽  
Escalating Commitment

Purpose This study aims to explore the influence of accounting on trust development in the context of an acquisition negotiation process at the pre-merger stage. Design/methodology/approach This study adopted a case study research method. Data have been gathered from an acquisition process of two Finnish companies through 18 semi-structured field interviews with the seller’s, the buyer’s and the merged companies’ top management and external advisors who participated in the process. Findings The study shows how accounting operated as a trust-building mechanism and served as a substitute for personal-based trust. Accounting assisted the negotiators to surface their initial positive beliefs about the acquisition outcome. Progressively, these positive beliefs outweighed negotiators’ initial negative beliefs regarding the acquisition process. Additionally, accounting enabled the negotiators to show risky behaviors via escalating commitment to the acquisition through ad hoc calculations and continuous discussions. Originality/value This study adds to the limited prior research examining interfirm trust and the influence of accounting on trust development during acquisition negotiations.

scholarly journals Trust , Knowledge Similarity and Cooperation in Coopetitive Strategic Alliances

2020 ◽  
pp. 39-52
Author(s):  
Alexander K. Lyasko
Keyword(s):  
Strategic Alliances ◽  
Technological Development ◽  
Cooperative Relationships ◽  
Interfirm Trust ◽  
Interfirm Collaboration ◽  
Active Transfer ◽  
Rival Firms ◽  
Competitive Rivalry ◽  
The Impact ◽  
Knowledge Similarity

Cooperative relationships between rival firms, which engage in interfirm strategic alliances, assume active transfer, reception and recombination of competencies and co-production of novel knowledge. These processes facilitate joint technological development and improve the participating firms’ competitiveness. Nevertheless, competitive interactions between the partners can impede the achievement of the alliance’s cooperative objectives. This paper investigates the impact of trusting attitudes developed between the partners on the effectiveness of interfirm collaboration under conditions of competitive rivalry in the broader industrial environment and similarity of initial knowledge at the partners’ disposal. It offers a number of hypotheses, which determine the interrelationships between the levels of interfirm trust, transaction costs associated with transferring knowledge and the successful attainment of alliance goals. The paper pays specific attention to the effects arising from the commonality of knowledge possessed by cooperating rivals. It also analyzes the influence of particular types of coopetitive strategic alliances on the success of collaborative  arrangements under the conditions of knowledge commonality among the partners.

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