Creativity in buyer–seller relationships: The role of governance |
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Authors: | Qiong Wang Kevin Bradford Jun Xu Barton Weitz |
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Affiliation: | aSmeal College of Business, Pennsylvania State University, United States;bMendoza College of Business, Notre Dame University, United States;cKellstadt Graduate School of Business, DePaul University, United States;dWarrington College of Business Administration, University of Florida, United States |
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Abstract: | This research proposes a framework for relating governance mechanisms (power, contracts, and trust) to the generation of creative approaches to business activities in buyer–seller relationships. The framework is tested with a survey of 262 purchasing agents. The results indicate that trust and contract affect the three facilitators of inter-organizational creativity: (1) knowledge-sharing routines (resources), (2) learning orientation (motivation), and (3) managerial support and open-mindedness (managerial practices). Also, the effects of trust and contract on the creativity in buyer–seller relationships are fully mediated by the above three facilitators. In particular, trust plays a more influential role in stimulating creativity. While power is not significantly associated with any of the facilitators, its overall effect on creativity is negative. |
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Keywords: | Innovation Trust Contract Power Buyer– seller relationships Complementary resources Knowledge-sharing routines Learning orientation Open-mindedness Management support Governance |
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