Exploring the dual nature of supplier relationship commitment on buyer behaviors: Considering the levels of buyer-leverage

Abstract

Purpose

The authors argue that the supplier’s perspective in managing buyers using relationship commitment is incomplete. The primary reasons for incompleteness are that: the effects of the two types of relationship commitment (i.e. affective and continuance) on buyer behaviors (i.e. individualized consideration and opportunism) are largely ignored from a supplier’s perspective; there is quandary regarding the effects of the two relationship commitment types in a relationship, whether they are favorable or not; and there is also ambiguity regarding the conditions under which relationship commitment types might serve as effective relational governance mechanisms. The paper aims to discuss this issue.

Design/methodology/approach

The authors employ survey data obtained from 207 suppliers to test the hypotheses using structural equations modeling.

Findings

The authors extend contemporary knowledge on supplier relationship commitment by revealing that at high-levels of buyer-leverage, supplier affective commitment can induce buyer opportunism and supplier continuance commitment can induce buyer individualized consideration. Furthermore, buyer-leverage positively moderates the interaction effect of supplier commitment types to promote buyer opportunism.

Research limitations/implications

The authors do not examine a buyer’s perspective, but from a supplier’s perspective, suppliers can maximize their benefits from their relationship commitment by embracing affective commitment while ensuring that buyers do not have excessive leverage.

Originality/value

The study presents a significant contribution to the extant literature on relationship commitment by probing the dual nature of supplier relationship commitment; albeit for specific configurations of commitment types and buyer-leverage.

Citation

Verghese, A.J., Koufteros, X. and Peters, R. (2020), "Exploring the dual nature of supplier relationship commitment on buyer behaviors: Considering the levels of buyer-leverage", International Journal of Operations & Production Management, Vol. 40 No. 2, pp. 196-220. https://doi.org/10.1108/IJOPM-03-2019-0226