This study employs transaction cost logic to investigate effects of market knowledge on formal contracting. The model maintains that market knowledge moderates the effects of supplier specific assets and buyer specific assets on contracting in international buyer–seller relationships. We collected survey data from 131 international buyer–supplier relationships and applied regression analysis to test the hypotheses. The data suggest that the need for formal contracts diminishes when substantial supplier specific assets accompany high market knowledge. In contrast, the need for formal contracting increases when substantial buyer specific assets are combined with high market knowledge. This study provides new insights for B2B marketing literature by shedding light on the influence of market knowledge on formal contracts. The discussion addresses the study’s implications for interorganizational theory and practice.

This study develops and tests a theory-driven conceptual model that explains variations in collaborative supply risk mitigation. It is based on data collected from manufacturing firms in Norway. The results show that collaborative risk identification, perception of supply risks, and overall focus on mitigating disruptive risks have a significant direct effect on collaborative supply risk mitigation. Further, an increase in collaborative risk identification strengthens the effect that perceived supply risk has on the level of collaborative risk mitigation, while supplier performance weakens the effect of perceived supply risk on the level of collaborative supply risk mitigation. Finally, the importance-performance map analysis shows that collaborative risk identification and the buying firm’s overall focus on mitigating disruptive risks are the most important factors to explain variations in collaborative risk mitigation efforts. On the basis of the results, relevant theoretical implications are discussed and actionable managerial recommendations are provided.

The purpose of this study is to investigate the effect of the degree of produce perishability on buyer control and examine this effect across different levels of supplier geographical distance and quality performance. This study was motivated by the vulnerability of the quality of perishable agricultural produce to various logistical and transportation activities, including the packaging of products, loading, and offloading activities. Three hypotheses capturing our research variables were developed and tested by using data obtained from the owner-managers and decision makers in the food processing industry. Empirical evidence from 239 food processing firms revealed that the degree of produce perishability positively influences buyer decision to control food supply chain factors that are likely to affect the quality of agricultural produce. The findings demonstrated further that the effect of produce perishability diminished as supplier geographical distance and quality performance increased.

This paper highlights the dark side of power imbalance regarding its consequences in agri-food supplier-buyer relationships. We report on findings from two studies. The first study is based on a sample of 105 key informants, while study 2 is based on a sample of 444 key informants, all from the cocoa agri-food supply market of Ghana. While the first study focuses on the antecedents of power imbalance and its consequences, the second study explores the role of cooperatives/collective action in minimizing supplier exploitation. Data from these studies were analysed using the partial least squares technique (SmartPLS). Analysis of these findings shows switching costs' impact on power imbalance to be curvilinear, while power imbalance has a curvilinear relationship with opportunism. The negative consequences of power imbalance are further exacerbated by dependency and the lack of joint action. Furthermore, we found the negative impact of power imbalance on financial performance to be stronger for non-cooperative members than for cooperative members, while, counterintuitively, we found the positive impact of economic satisfaction on financial performance to be stronger for non-cooperative members than for cooperative members.

The purpose of the study is to investigate which factors lead firms should consider in their quest to build trustworthy supply relationships with agro-commodity suppliers. We developed a model of opportunism-trust relationships, which we analyzed in the context of a smallholder agro-commodity supply market (SHACSM). The data source is a survey of 444 buyer-supplier relationships from the cocoa industry of Ghana. The analysis shows that relational satisfaction, cooperation and information exchange reduce perceptions of opportunism consistent with the literature. However, multigroup analysis suggests differences in perception between men and women farm owners/managers. While men perceived the important role of information exchange in reducing perceptions of opportunism, women farm owners/managers were more concerned about the negative consequence of opportunism on trust. We discuss implications for theory, public policy, and macromarketing practice, and suggest options for future research.

Background: This article critically examines the role of trade logistics in the exports of African countries. The performance of the trade logistics of African countries was analysed using the World Bank logistics performance index (LPI) and its components. The study was conducted based on the performance statistics of countries around the world in 2016. Objectives: The aim of this study was to identify African countries’ inefficient trade logistics areas based on LPI components for future improvement; and to investigate the relevance of trade logistics performance of African countries on export values in order to boost the region’s merchandise export share in the global market. Method: The methodological approach employed in this study is a combination of both descriptive and inferential data analysis. The African countries’ logistics performance in international trade was summarised using LPI median values. The effect of the performance of trade logistics on exports was explored based on a gravity model of international trade. For the estimation, the Heckman selection approach was applied to incorporate zero bilateral trades. Results: On average, African countries experience the lowest LPI score, particularly in terms of quality of trade and transport-related infrastructure, and customs and border clearance. A successful improvement in these areas would enhance African countries’ supply chain deliveries including on-time delivery, tracking and tracing and international shipments in cross-border transactions. Conclusion: The evidence from the gravity model estimates of this study suggests that an improvement in any of the LPI components can lead to significant growth in the export of African countries. This could then increase the African merchandise export share in global trade. The gravity model results also show that landlocked countries have lower trade flows than their coastal neighbours.

Purpose: The extant literature on business-to-business relationship has shown that trust, relationship duration, and social bond are the key drivers of relationship satisfaction. Notwithstanding, studies on the examination of when and why these variables translate into successful relationship are still scarce and need further exploration. This research investigates the conditions under which trust and social bonds influence satisfaction in a business-to-business relationship.Design/methodology/approach: The data were collected from 159 footwear producers using a structured questionnaire. Four hypotheses were developed and tested using hierarchical multiple regression.Findings: The authors found support for all hypotheses. Social bonds and longevity are crucial in enhancing supplier relationship satisfaction. Likewise, the role of social bonds in inducing supplier satisfaction heightens over time. However, the positive association between exchange partner trustworthiness and supplier satisfaction works well only in high degree of dependence situation.Research limitations/implications: The study was based on the report on monadic data and cross-sectional design. Future research should adopt longitudinal design to overcome the shortcomings.Theoretical implications: This study advances the social exchange theory (SET) by elucidating the condition in which social bonds and trust fail to produce relationship satisfaction. Social bonds fail to enhance relationship satisfaction at the beginning of the relationship. Moreover, trust alone cannot be good enough to boost relationship satisfaction in a lose dependence context.Managerial implications: This study acclaimed a relationship-driven approach as the best choice for those firms who aspire to build a good relationship with their exchange partner. Managers should understand how and when to develop a strong social relationship with their trading partners, and recognize the situations in which to deal with honest and fair business partners in an exchange relationship.Originality/Contribution: This is one of the very few studies, which have been conducted to investigate the conditions under which the relational variable influences satisfaction in a business-to-business relationships context. It expanded the boundary of the current literature as it investigated the moderating role of relationship duration and dependence in the relationship between relational constructs and relationship satisfaction.

The purpose of this study is to explore the effect of detailed contracts and partner irreplaceability on interfirm conflict in cross-border package tour operations. The study is based on an analysis of relations between 129 inbound tour operators and their overseas outbound tour operator partners. Data were collected using a standard questionnaire containing questions that capture constructs of interest. Hypotheses were tested with partial least squares structural equation modeling using SmartPLS 3. The results show that more detailed contracts significantly reduce conflict. The direct effect of partner irreplaceability on conflict is not significant. However, partner irreplaceability significantly weakens the efficacy of detailed contracts to reduce conflict.

Product quality uncertainty is one of the major concerns for buyers in online transactions. In fact, research into the consequences and control of this uncertainty in online transactions has increased considerably in recent years. However, product quality uncertainty poses challenges not only to online buyers, but also to offline buyers. Therefore, the objectives of this empirical study were to examine the effect of product quality uncertainty on quality-screening efforts in offline transactions, and whether the frequency of purchase from the same source and the choice of procurement channel may be used as control mechanisms to reduce this effect. Empirical evidence from 239 small food-processing firms shows that product quality uncertainty has a positive effect on quality-screening efforts. Moreover, our findings demonstrate that this effect decreases significantly when food processors purchase frequently from the same source, and when they buy directly from the farm rather than through intermediaries.

Logistics service providers (LSPs) play strategic roles in contemporary global supply chains. The resources and capabilities at the disposal of LSPs make them easily adaptable to the needs and exigencies of their clients. Though opportunism is a threat to business relationships, the LSP–client relationship studied here shows opportunism can be both a threat and an opportunity in resource and capability utilisation. This paper finds opportunism to be not only a threat but also an incentive in enhancing LSPs resource capability. Opportunism has a double-edged or dual effect demonstrated by the curvilinear relationship between opportunism and resource capability in relation to performance. The paper highlights implications for theory and management and future research directions.

This research concerns logistics performance in public purchasing relationships. It examines the effect of buyer-supplier integration on supplier logistics performance. Particularly focuses on purchasing centralisation in healthcare facilities, and examine whether centralisation of decision control exercised by the health authorities influence the effect of buyer-supplier integration on supplier logistics performance. A survey data of 164 informants from public health facilities in Tanzania was used for analysis. It reveals that buyer-supplier integration improves supplier logistics performance significantly and stronger purchasing centralisation reduces the effect of buyer-supplier integration on supplier logistics performance. It provides a broad and interesting focus on significant antecedents to supplier logistics performance. In the future, the government should focus more on supporting the individual public health facilities in developing and adapting proper governance mechanisms for supporting buyer-supplier integration. Further research in other empirical and cultural settings is desirable to test the external validity of these findings.

Safeguarding specific investments and mitigation of potential opportunistic behaviours are among the most prominent functions of formal contracting in buyer–seller relationships. Extending the extant literature, the present study investigates the relationship between specific investments and the extent of formal contracting in cross-border and domestic relationships. Based on a sample of 156 buyer–seller relationships, the analysis shows that there is a positive association between specific investments and the extent of formal contracting. However, the emphasis on formal contracting is stronger in cross-border relationships than in the domestic ones. Interestingly, the association between specific investments and formal contracting becomes even stronger in cross-border relationships.

Opportunism is an important topic in supply chain management and distribution channels. The emergence of this behaviour in buyer-supplier relationships tends to reduce performance while diminishing value creation in the effected relations. Different transactions call for different control levels depending on the gravity of opportunism in the transaction, with the need for control being higher as opportunism increases. In this regard, it is important to understand the factors that give rise to opportunism to apply appropriate control mechanisms. This study, therefore, explores the effect of the degree of the perishability of the transacted produce on supplier opportunism. Additionally, this study treated the choice of procurement channel as a control mechanism; therefore, we compared the effect of perishability on opportunism in direct and indirect procurement channels. In this study, cross-sectional survey data collected from 239 food processor-produce supplier relationships served as source of empirical evidence. The empirical findings support our hypotheses, and demonstrate that perishability is positively associated with supplier opportunism, with the effect being significantly lower in the direct procurement channels than in the indirect procurement channel.

Using resource-based view (RBV) as the main theoretical framework, this chapter examines the impact of logistics service providers' capabilities on logistics outsourcing performance from the perspective of textile and clothing exporting companies in Egypt. The study focuses on three resource capabilities acquired by logistics service providers (flexibility, expertise, and innovativeness) in a specific LSP-Client outsourcing relationship. The study identified flexibility and expertise as strong drivers of logistics outsourcing performance. No support was found for LSPs innovativeness as a driver of outsourcing performance. This may be because of the standardized logistics services provided by LSPs to exporters in the textile and clothing industry, which requires less service innovation within the empirical setting. Implications of the study for management are highlighted along with suggestions for further studies.

Based on transaction costs analysis (TCA) and relational contract theory (RCT), this study examines the association between asset specificity, environmental uncertainty, relationship duration and inter-firm governance in business-to-business relationships. In particular, the authors elaborate the tension between the problem of safeguarding and adaptation in business-to-business relationships by comparing the interaction effect of specific investments and environmental uncertainty on inter-firm coordination across business-to-business relationships with different prior length. Data from a survey of 170 industrial buyer-seller relationships demonstrates that when buyer-seller relationships with substantial asset specificity and short prior history are exposed to substantial environmental uncertainty, inter-firm coordination arrangements are quite modest. This governance pattern is completely different in business-to-business relationships with long prior history where the combined presence of substantial assets specificity and high environmental uncertainty enforces the level of inter-firm coordination. These findings demonstrate that relational norms and trust enforces the ability to implement hybrid governance arrangement when strong inter-firm ties and substantial environmental volatility appear simultaneously.

Based on the resource-based view (RBV) theory, this study examines the association between buying firms' cross functional integration, buyer-supplier integration and supplier logistics performance in buyer-supplier relationships. RBV considers these two organisational dimensions of supply chain integration as strategic resources which play an important role in improving logistics performance. This research examines the effects of both intra-firm integration and inter-firm integration on supplier logistics performance with survey data from key informants in the public medicine supply system in Mainland, Tanzania. The unit of analysis is the purchasing relationships between public health facilities and focal suppliers acting as public agents of the national medical stores department (MSD). The empirical analysis is based on data reported by 166 purchasing managers, and demonstrates that stronger buyer-supplier integration improves supplier logistics performance significantly. There is no main effect of the buying firm's cross functional integration on supplier logistics performance, but more extensive cross functional integration in the buying firms enforces the effect of buyer-supplier integration on supplier logistics performance significantly, and these findings indicate that extensive cross functional integration in the buying firms provides an administrative infrastructure that enhance the effectivity of extensive supplier-buyer integration.

This study explores the concept of manufacturing complexity relating to textile fabrics and examines whether the interplay between manufacturing complexity and specific assets enforces inter-firm coordination in international textile procurement relationships. It also accentuates the role of turnkey suppliers in international value chains. The research findings demonstrate that the combined presence of manufacturing complexity and supplier held specific assets leads to higher inter-firm coordination that is crucial for achieving order compliance. Moreover, the results indicate that inter-firm coordination is highly effective in mitigating the prospect of opportunistic behaviour in international procurement relationships. By describing the vital procedural techniques and aesthetic features that are involved in manufacturing a textile fabric order, this study provides valuable insights about manufacturing complexity. Further, the empirical findings demonstrate that international buyers need closer coordination with their key suppliers to mitigate performance ambiguity regarding order compliance for complex customised products.

This research focuses on the problem of perceived contract administration costs among small service suppliers in the Norwegian offshore market. Based on transaction cost economics (TCE), resource-dependence theory (RDT) and supply chain management literature, the authors analyse the association between several contract administration issues and perceived contract administration costs, and in particular in service supplier alliances. A mail survey among 109 Norwegian service suppliers makes the research design of this study, and the empirical findings demonstrate that when the contract complexity becomes substantial, the small contractors face substantial contract administration costs. This problem enlarges significantly for small service contractors with preference for participation in supplier alliances with other service suppliers, and sub suppliers. The reason is that such cooperative arrangements have to deal with a broader set of contracting partners, contract issues in the regulation and enforcement of contractual terms related to division of work, payment clauses, service performance and project fulfilment.