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Examining to what extent internal and external information asymmetries affect the supplier performance under influence of buyer dependence.

Feiweier, Benjamin (2023) Examining to what extent internal and external information asymmetries affect the supplier performance under influence of buyer dependence.

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Abstract:A satisfactory level of supplier performance is an important attribute for the buying company when trying to achieve a competitive advantage. Therefore, making sure the level of supplier performance is as good as possible is an important aspect for buying companies. On the basis of principal-agent theory, this study will investigate how internal and external information asymmetries and buyer dependence can potentially influence the supplier performance and how they relate to each other. Utilizing the SmartPLS software, the data of 69 interlinked buyer-supplier specific surveys will be analyzed and interpreted. Two conceptual models were set up, one to identify the direct effect of either internal or external information asymmetries on supplier performance, and the other to investigate whether buyer dependence has a causal relationship to this effect. The results show that there is no significant influence of internal information asymmetries, external information asymmetries, or buyer dependence on the level of supplier performance. A difference can be seen in the direction of the influence that internal and external information asymmetries have on supplier performance. Further, no significant effect of buyer dependence on either internal or external asymmetries was found. This paper opposes previous findings that information asymmetries and buyer dependence are underlying factors influencing supplier performance. Generally, this paper contributes to literature concerning principal-agent relationships, information asymmetries, and buyer dependence and new insights given as well as support for previous findings found are also 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/96968
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