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Psychological contract breaches at key suppliers : how expectations can influence satisfaction

Schouten, K. (2021) Psychological contract breaches at key suppliers : how expectations can influence satisfaction.

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Abstract:Access to necessary suppliers will become a rising competition in a world where resources become more limited. For this reason, it has been getting increasingly important to establish and maintain good relationships with suppliers to sustain access to critical materials and services. Buyer-supplier relationships then also bring along a certain set of expectations that each party should be able to fulfill. Trust, dependability, and reliability seem then also to be the main factors that influence the strength of the relationship. If one party feels that the expectations are not reached, they will feel injustice done to themselves and their organization and a psychological contract breach occurs. Supplier satisfaction is a major antecedent of preferred customer status according to the cycle of preferred customer ship. However, as findings show can a psychological contract breach influence supplier satisfaction. Furthermore, how a breach is handled is also highly important for maintaining a good relationship. A reason for increased supplier satisfaction after a breach can be explained by the service recovery paradox. Findings in this research then also show that a psychological contract breach does not necessarily lead to a change in the preferred customer status, depending on the situation and individual.
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:http://purl.utwente.nl/essays/86691
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