The moderating influence of supplier culture on the relationship between buyer power and supplier shirking

Globalization has added a layer of complexity to the challenge mitigating opportunism in buyer–supplier relationships. When engaging with suppliers different countries, buyers must manage relationships across various cultures. Prior empirical research shown that inter-firm power affects exchange relationships, and conceptual studies suggest national culture is location characteristic could influence power. However, no empirically examined efficacy controlling opportunism, or other outcomes, cultural contexts. To study this relevant issue, we investigate how supplier's influences effectiveness two bases power, coercive expert on form been anecdotally observed practice—supplier shirking. We utilize primary dyadic data 109 outsourcing secondary supply chain characteristics examine phenomenon. find effects shirking vary cultures that, certain cultures, may reduce Our results show manufacturers explicitly consider suppliers' when managing globally dispersed base risk encountering supplier