In long-term complex buyer–supplier relationships, many exchanges are non-contractual, a factor that emphasizes the social dimension of the relationship. Previous studies have shown that attraction is a fundamental aspect of the social dimension and a main driver in non-contractual exchanges. Although attraction is a determinant of a relationship, many studies have examined the relationship onl...

Although vulnerability is central to many organizational theories of trust, little systematic research exists that specifically examines the relationship between vulnerability and trust. In this paper, we extend the concept of vulnerability to interfirm exchange relations and theorize its role in influencing interorganizational trust. We argue that existing theory on vulnerability and trust hav...

Internet based marketplaces have enabled industrial buyers to locate suppliers from geographically diverse locations. This has resulted in increased variations in certain supplier parameters such as capacity and cost among the participating suppliers. However, the impact of this increased heterogeneity on the procurement practices are not well understood. In this paper we consider three supplie...

This paper develops and analyzes a principal-agent model for product specification and production motivated by “core buying” decisions at Ford Motor Company. This model focuses on two important elements of the “core” buyer’s responsibility: (1) assessing the supplier’s capability and (2) allocating some or all of a fixed level of some buyer-internal resource to help the supplier. Under the cont...

This study develops and tests a theory-driven conceptual model that explains variations in collaborative supply risk mitigation. It is based on data collected from manufacturing firms Norway. The results show identification, perception of risks, overall focus mitigating disruptive risks have significant direct effect Further, an increase identification strengthens the perceived has level mitiga...

In this paper, we highlight an aspect of supplier opportunism in the outsourcing paradox that has largely been ignored by extant research – the supplier as a direct competitor of the buyer firm. In light of this paradox, we offer a game-theoretic framework in which we identify conditions under which firms could alleviate or mitigate this outsourcing problem. Our results show that apart from tra...

Social bonds are crucial for the success of buyer-supplier relationships. This paper investigates whether individual social preferences may explain inter-firm social bonds built on trust and reciprocity in supply chain relationships. The research questions are explored by means of a case study involving the first-tier suppliers of a large organization in the automotive component sector. The res...