The impact of digitalization and inter-organizational technological activities on supplier opportunism: the moderating role of relational ties

Abstract

PurposeDigitalization encourages the manufacturer to engage in inter-organizational technological activities (i.e. supplier IT integration and supply visibility) with its major supplier, which influences supply chain (SC) governance. This study tests a moderated mediation model that considers supplier IT integration and supply visibility as mediators between supply-side digitalization and supplier opportunism, and relational ties as a moderator in the relationship between inter-organizational technological activities and supplier opportunism.Design/methodology/approachOrdinary least square (OLS) regression is used to examine data from 200 firms in China describing their supply chain management (SCM) practices and perceived relationships with their major suppliers.FindingsSupply-side digitalization is positively related to supplier IT integration and supply visibility. Supply-side digitalization has a positive indirect effect on supplier opportunism through supplier IT integration but a negative indirect effect through supply visibility. Relational ties weaken the positive effect of supplier IT integration and the positive indirect effect of supply-side digitalization on supplier opportunism. Relational ties also weaken the negative effect of supply visibility and the negative indirect effect of supply-side digitalization on supplier opportunism.Originality/valueThis study enriches understanding of SC governance in the digital age by empirically confirming that digital transformation brings both challenges and opportunities to SC governance and by clarifying the interplay of relational governance and technological activities. In addition, this study contributes to the SC digitalization literature by empirically validating the role of digitalization in promoting inter-organizational technological activities, as well as by revealing its potential dark side.

Guest editorialEmerging research and future pathways in digital supply chain governance

“…However, the special issue provides a valuable understanding of both buyer and supplier perspective in the dyadic unit of analysis. Adopting the buyer's perspective, Yang et al (2021) underline the potential risk of increasing supplier opportunism when implementing supply-side digitalization through supplier IT integration. On the other hand, it is possible that increasing supply visibility in favor of the buyer would also reduce supplier opportunism.…”

“…Further, this evolution of research seems to be developed and structured around relevant theoretical lenses. Transaction cost economics (TCE) is a relevant lens, adopted in Yang et al (2021) in conjunction with social exchange theory (SET) as appropriate integrated theoretical perspectives to investigate supplier opportunism and relational ties; TCE is also adopted in Paolucci et al (2021) due to the primary focus on cost efficiency. Resource dependence theory (RDT) plays an important role in investigating the dependence of SME suppliers (Son et al, 2021) and potential consequences of AM in global apparel supply chains (integrated with stakeholder theory in Hohn and Durach, 2021).…”

“…(4) The "dark side" of buyer/supplier opportunism: the special issue approaches both supplier and buyer perspectives to address this important theme (Yang et al, 2021;Son et al, 2021) and…”

“…Digitalized supply chain may reduce the need for interpersonal contacts, which in turn may decrease the ability to coordinate with informal governance mechanisms; however, the need for personal contacts remains paramount in the context of specific phases of a digitalized business relationship; in other words, interpersonal contacts are not completely replaceable by digital technology. Yang et al (2021) investigate in their model how supply-side digitalization affects supplier opportunism through supplier IT integration and supply visibility, and the role of relational ties. They test their hypotheses using data from Chinese manufacturing companies.…”

“…Paolucci et al (2021) analyze in detail the impact on supplier's cost efficiency. Yang et al (2021) discusses both positive and negative impacts of digitalization: enhancing integration with the major supplier through digitalization at the technology level by promoting supplier IT integration, it is possible to achieve compatibility, interconnectivity and interoperability with the major supplier. Alternatively, the buyer could be exposed to supplier opportunism.…”