Power,buyer trustworthiness and supplier performance: Evidence from the Armenian dairy sector |
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| Affiliation: | 1. Newcastle University Business School, Newcastle University, 5 Barrack Road, Newcastle upon Tyne, UK;2. Cardiff Business School, Aberconway Building, Colum Drive, Cardiff CF10 3EU, UK;3. Wageningen University, Hollandseweg 1, 6706KN Wageningen, The Netherlands;4. ICARE, 74 Teryan Street, 0009 Yerevan, Armenia;5. Royal Veterinary College, Hawkshead Lane, North Mymms, Hatfield Hertfordshire AL9 7TA, UK;6. Plymouth Business School, Drake Circus, Plymouth, Devon PL4 8AA, UK;1. Edwards School of Business, University of Saskatchewan, 25 Campus Drive, Saskatoon, SK S7N 5A7, Canada;2. Carey Business School, Johns Hopkins University, 100 International Drive, Baltimore, MD 21202, United States;1. School of Commerce, Meiji University, 1-1 Kanda-Surugadai, Chiyoda-ku, Tokyo 101-8301, Japan;2. Research Institute for Economics and Business Administration, Kobe University, 2-1 Rokkodai, Nada-ku, Kobe 657-8501, Japan;1. University of Missouri – Kansas City, Henry W. Bloch School of Management, 5100 Rockhill Road, Kansas City, MO 64110–2499, USA;2. City University of Hong Kong, College of Business, 83 Tat Chee Avenue, Kowloon, Hong Kong, China;1. KEDGE Business School, BP 921, 13288 Marseille Cedex 9, France;2. EMLYON Business School, 23 Av. Guy de Collongue, 69134 Ecully Cedex, France;1. Sheffield Management School, The University of Sheffield, Conduit Road, Sheffield S10 1FL, United Kingdom;2. Hull University Business School, University of Hull, Cottingham Road, E. Yorks, Hull HU6 7RX, United Kingdom |
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| Abstract: | The paper presents a Multiple Indicators and MultIple Causes (MIMIC) model for explaining the relationships between buyer-seller power, buyer trustworthiness and supplier satisfaction / performance. The model draws on an organizational supply chain perspective of power and is verified using data relating to dairy farmers’ relationships with their main buyer in Armenia. The analysis indicates that buyers are more trustworthy where there is greater competition for supplies. Buyer trustworthiness is also positively correlated with both the size of a supplier, as well as a supplier being a member of a marketing cooperative. Buyer trustworthiness has a positive impact on suppliers’ satisfaction (regarding their relationship with their main buyer) and enhances the quality and quantity of suppliers’ output. |
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