The Impact of Supply Chain Partnerships on Supplier Performance

Abstract

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The Effects of Interdependence and Cooperative Behaviors on Buyer’s Satisfaction in the Semiconductor Component Supply Chain

“…In addition to resource exchange, suppliers cannot afford cost or risk to lose the buyers that they highly depend on, and thus will undertake more cooperative behaviors to retain them. These results are similar to those in previous studies [24,27,28]. Cooperative efforts can thus be seen as a social exchange mechanism to proactively maintain critical buyer-supplier relationships, and prevent losses from losing valuable sources of resources.…”

“…On the other hand, the more powerful firm does not need cultivate its relationship with its partner to encourage the exchange of resources, because it can use its greater power to obtain the latter's compliance or cooperation [27,37]. Therefore, imbalanced relationships are characterized by less cooperation and greater conflict [25], and the more powerful a firm is, the less need it has to be cooperative.…”

“…As the buyer-supplier relationship becomes more asymmetrical, the interests of supply chain members diverge. Increasing asymmetry in interdependence increases the structural impediments that can encourage the more powerful firms' opportunistic actions [24], and the TCT suggests that a dependence advantage will lead to exploitative tendencies [27]. In such situations, the stronger supplier will invest less in cooperative power, because it perceive the buyer's dependence, and understands that the buyer cannot afford to lose them.…”

“…Buyer dependence and supplier dependence are measured first, with total interdependence defined as the sum of these, and power asymmetry as the difference between them, and this is a widely-used method in the literature [24,27].…”

“…When firms enter into buyer-supplier relationships to achieve mutually beneficial goals, they acknowledge that each is dependent on the other, and this perspective flows directly from an exchange paradigm. A high level of total interdependence is an indicator for a strong, cooperative, long-term relationship, in which both parties have invested time, effort, and money [24][25][26][27] to maintain the relationship.…”