Dealing with defaulting suppliers using behavioral based governance methods: an agency theory perspective

Ernst-Johannes Prosman, Kirstin Scholten, Damien Power

OnderzoeksoutputAcademicpeer review

17 Citaten (Scopus)
131 Downloads (Pure)

Samenvatting

Purpose
The purpose of this paper is to explore factors influencing the effectiveness of buyer initiated behavioral-based governance methods (BBGMs). The ability of BBGMs to improve supplier performance is assessed considering power imbalances and the resource intensiveness of the BBGM. Agency Theory is used as an interpretive lens.

Design/methodology/approach
An explorative multiple case study approach is used to collect qualitative and quantitative data from buying companies involved in 13 BBGMs.

Findings
Drawing on Agency Theory several factors are identified which can explain BBGM effectiveness considering power differences and the resource intensiveness of the BBGM. The data show that even high resource intensive BBGMs can be implemented effectively if there are benefits for a powerful supplier. Cultural influences and uncertainty of the business environment also play a role.

Originality/value
This study develops a series of propositions indicating that Agency Theory can provide valuable guidance on how to better understand the effectiveness of BBGMs. Underlying mechanisms are identified that explain how power imbalance does not necessarily make improvement initiatives unsuccessful.
Originele taal-2English
Pagina's (van-tot)499-511
Aantal pagina's13
TijdschriftSupply Chain Management: an International Journal
Volume21
Nummer van het tijdschrift4
DOI's
StatusPublished - 2016

Vingerafdruk

Duik in de onderzoeksthema's van 'Dealing with defaulting suppliers using behavioral based governance methods: an agency theory perspective'. Samen vormen ze een unieke vingerafdruk.

Citeer dit