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The impact of internal integration: do suppliers have a soft spot for internally integrated buyers?

Pas, G.J. (2022) The impact of internal integration: do suppliers have a soft spot for internally integrated buyers?

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Abstract:Buyer-supplier relationships have become increasingly important. Next to the purchasing function, other functions interact with suppliers as well. Therefore, part of the buyer-supplier relationship management takes place outside the purchasing department. This study examines the effect of internal integration between purchasing and other functions at the buying firm on the buyer-supplier relationship and supplier performance. Drawing on social exchange theory, this study recognizes power and trust as the key relational mechanisms through which the dynamics in buyer-supplier relationships can be explained. A conceptual model is built which proposes the effects of internal integration on different power and trust dimensions and supplier performance. Survey data of 54 buyer-supplier relationships is analyzed by using partial least squares regression. Although no significant effects were found, results showed substantial effects of internal integration on expert power and reward power. Second, goodwill trust and competence trust showed to have a substantial positive effect on supplier performance. For reward power this effect showed to be negative. The contributions of this study for purchasing and supply chain management literature and the practical implications for buying organizations are discussed.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/92317
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