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Best Practices in Mitigating the Impact of Customer-Induced Psychological Contract Breaches on the Performance of a Supplier’s Organization : a Case Study.

Folbert, G. (2024) Best Practices in Mitigating the Impact of Customer-Induced Psychological Contract Breaches on the Performance of a Supplier’s Organization : a Case Study.

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Abstract:This thesis investigates the main forms of customer-induced psychological contract breach (PCB), its effect on the performance of a supplier’s organization and the ‘best practices’ suppliers can employ to cope with the impact of aforementioned breaches. Four key forms of PCB, caused by the customer, were identified by the supplier’s organization: insufficient sharing of information, balance of power, testing the supplier and lying/reneging. Four key categories of initiatives/efforts, managers can employ to prevent and/or mitigate the effect of this PCB, were furthermore identified: control, coordination, documentation and support. Lastly, two key moderators were also identified and explored: interpersonal relationships and reparation efforts. Existing interpersonal relationships are a key moderator for customer-switching behavior and the effect of customer-induced PCB. Reparation efforts are a key moderator for the effect of customer-induced PCB, and are important for restoring interorganizational trust. All in all, this thesis provides an in-depth analysis of the common forms of PCB, caused by a customer, encountered by a typical supplier organization in the Dutch transport sector. This thesis furthermore provides insights in the various ways managers can counter the effects of aforementioned PCB, thereby offering a valuable addition to the field of purchasing and supply chain management.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:https://purl.utwente.nl/essays/102067
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