Moderating Effect of Buyer-Supplier Trust on the Relationship between Outsourced Formal Contracts and Supplier Delivery Performance: An Empirical Study of Public Sector Procurement

نویسنده

  • Arthur Ahimbisibwe
چکیده

This study examines the moderating effect of buyer-supplier trust on the relationship between outsourced formal contracts and supplier delivery performance in the domain of public sector procurement. In so doing, we extend the paradigm that formal contracts and relational governance mechanism function as complements rather than substitutes. Using a cross sectional data from a survey of 612 staff that are involved in managing outsourced contracts in Ugandan public sector, Structural Equation Modelling results support 10 of the 14 hypotheses thus, demonstrating the fundamental preposition of complementarity between formal contracts and relational governance mechanisms. Also, findings revealed that well-structured outsourced formal contracts have a significant positive influence on buyer-supplier trust and supplier delivery performance.However, the path coefficient for the interactioneffect between change characteristics and buyer-supplier trust was initially hypothesised to positively influence supplier delivery performance but did not.The use of case studies and additional surveys in future research might help to explain this phenomenon. Although the two constructs of buyer-supplier trust and supplier opportunism are robust and sufficiently represent the relational aspects, the multidimensional nature of relational practises can be investigated further. This study has managerial and policy implications that are also discussed in this paper.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Providing a Model for Financing the Buyer and Supplier in the Supply Chain of Mehrvarzan Healthcare Products Distributor

The present study aims to provide a model for financing buyer-supplier in Mehrvarzan healthcare Company. The statistical population of the study includes 300 employees of the company. According to Morgan table, 168 people are selected as the statistical sample. Available non-random sampling method has been used. For collecting the required information, the standard buyer-supplier financing ques...

متن کامل

Success of IT Outsourcing contracts: Effects of the Complexity of the Activity, Relational Governance and Structure of Incentives

The outsourcing of Information Technology (IT) services is a practice generally regulated by contracts. Since contracts are inevitably incomplete, buyer-supplier relationships are usually managed by additional mechanisms of incentives and governance, which results in a variety of success levels. Buyer perceived volatility and ambiguity of the future relationship are argued to be keys in definin...

متن کامل

The Moderating Role of Trust in Determining Manufacturer’s Vertical Control and Satisfaction with Supplier Performance

Although the Transaction Cost Analysis framework (TCA) has been dominant in explaining inter-firm relationships, TCA has been criticized for ignoring the social embeddedness of inter-firm relationships. It is proposed that the inclusion of trust in TCA supplements the explanations offered by TCA on buyer behaviors in buyer-seller relationships. The empirical findings suggest trust functions as ...

متن کامل

The impact of knowledge complementarities on supply chain performance through knowledge exchange

The extent of knowledge complementarities (KC) is an important theoretical and practical issue in interfirm relationships. However, extant research on KC is not clear about what constitutes KC and how the benefits of KC are realized. Further, few empirical studies have examined the impact of KC on inter-firm performance. The purpose of this study is to identify the dimensions of KC and to empir...

متن کامل

Supplier Development Activities and Buying Firm’s Performance: An Empirical Investigation of Iranian SMEs

This study attempts to investigate the major antecedent factors that influence manufacturing SMEs intentions toward the implementation of supplier development activities in Iranian SMEs. In order to achieve this objective, the research constructs were developed. The conceptual framework underlying this study was based on the theories of supplier development activities and social capital.  These...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2012