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Social capital and its dimensions and their influence on supplier resource allocation, a multi-group analysis.

Collet, M.J. (2023) Social capital and its dimensions and their influence on supplier resource allocation, a multi-group analysis.

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Abstract:Buyer-supplier relationships have become increasingly important. This is due to the increased scarcity of good suppliers and resources. Based on social capital theory, this study delves into the three dimensions of social capital and their effect on supplier resource allocation. Through inter-linked surveys, this research examines how internal dynamics influence external relationships. A total of 30 suppliers, 29 purchasers and 26 others participated in this study. Using the data from the suppliers a multi-group analysis was conducted, splitting up the group into a high supplier dependence and a low supplier dependence. Even though all tested hypotheses were insignificant, the path coefficients gave substantial effects. Embedded partnership approaches have a positive effect on supplier resource allocation and are useful when the supplier is dependent on the buyer, in contrast to transactional approaches. Goodwill trust is an important factor that positively influences the allocation of supplier resources regardless the level of supplier dependence. Internal integration and competence trust are factors that hardly have a positive influence or even a negative influence. To conclude, firms cannot be viewed as monolithic entities as they have multiple people with different goals and opinions. This is an important takeaway that should not be neglected by managers.
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/96555
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