Buyer–Supplier and Supplier–Supplier Alliances: Do They Reinforce or Undermine One Another?

Abstract

Previous research has portrayed buyer-supplier and supplier-supplier alliances as important mechanisms to foster learning and exchange efficiencies. Controversy remains, however, as to how these alliances interact. While some propose they reinforce one another (e.g. learning in horizontal ties generates positive spillovers to vertical ties), others propose a negative interplay (e.g. when increasing vertical-tie intensity, suppliers may weaken horizontal ties to avoid retaliation from buyers who wish to preserve bargaining power). We empirically test these competing views using survey data from the Brazilian auto-parts industry. In an attempt at reconciliation, we propose that the positive or negative interaction between vertical and horizontal alliances depends on the level of technological uncertainty of goods exchanged. Vertical ties seem to inhibit horizontal ties when technological uncertainty is low; when technological uncertainty is higher, vertical and horizontal ties do not seem to have any meaningful form of interaction. We discuss implications for theory and practice. Copyright (c) Blackwell Publishing Ltd 2007.

Asset specificity's impact on outsourcing relationship performance: A disaggregated analysis by buyer–supplier asset specificity dimensions

“…the possibility that large firms may exert undue influence on partner behavior by virtue of their superior bargaining position), this study includes firm size as a control variable (without imposing any a priori restrictions on the parameter). Following Poppo and Zenger (1998) and Lazzarini et al (2008), firm size is the log of total number of employees in buyers' companies. This measure constitutes a reliable proxy, devoid of the subjectivity inherent in relying on the buyer's perception of relative size (which would inevitably be based on the buyer's guess of the supplier's size).…”

Buyer perceptions of supply disruption risk: A behavioral view and empirical assessment

“…However, the pursuit of innovation imposes limitations on product devel opment capacity because of the lack of perfect information (Petersen et al, 2003). Turbulence associated with high techno logical uncertainty requires increased interaction between buyer and supplier (Lazzarini et al, 2008). Firms often seek to reduce uncertainty by establishing tighter relationships with suppliers (Dyer and Singh, 1998).…”

Imersão Social Na Cadeia De Suprimentos E Seu Efeito Paradoxal No Desempenho Operacional

“…Essa abordagem vai além das relações de curto prazo (do tipo arm's length) e de contratos formais, ao preconizar que as organizações devem participar de relações intensas de compartilhamento de investimentos, conhecimento e informação, como forma de melhoria de produtos e processos (Lazzarini, Claro, & Mesquita, 2008). Pesquisadores têm encontrado que, por meio de parcerias, firmas podem beneficiar-se do conhecimento gerado pela relação (Powell, 1996), promovem investimentos específicos da relação sem a necessidade dos altos custos de uma integração vertical (Dyer, 1997) e potencializam o desempenho operacional dos participantes (Lado et al, 2008;Lazzarini, 2007).…”