Dependence concentration and fairness perceptions in asymmetric supplier–buyer relationships |
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Authors: | Tianjiao Qiu |
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Institution: | Marketing Department, College of Business Administration, California State University, Long Beach, Long Beach, CA, USA |
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Abstract: | The purpose of this research is to investigate how a supplier manages its relationships with multiple buyers in a market structure of imbalanced power to achieve market success. Drawing on resource dependence theory and social exchange theory, we argue that dependence concentration (the degree of revenue concentration of a supplier’s multiple buyers) and fairness perceptions (distributive and procedural fairness) work together to impact a supplier’s market performance. The authors develop a structural model and empirically test how dependence concentration and fairness perceptions impact supplier performance with survey responses from 92 suppliers in the food supply industry. The findings show that a balanced set of dependence relationships governed by fair business policies and procedures leads to strong and effective relationships; and effective relationships with multiple buyers, rather than with any specific buyer, impact sales and profit growth in a market structure of imbalanced power. |
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Keywords: | Asymmetric supplier–buyer relationship multiple relationships fairness perceptions dependence relationship commitment |
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