Spotlight:Buyer Power and Supplier Relationship Commitment: A Cognitive Evaluation Theory Perspective

In this weeks Spotlight we look to our April 2017 Issue. Dr. Sangho Chae discusses buyer power and supplier relationship commitments.

"Our study investigates how buyer power affects supplier relationship commitment. When a buyer exerts power on a supplier, the supplier response can be either simple compliance or commitment at a deeper level. Theoretically, the latter pertains to a supplier's intrinsic motivation. Building on cognitive evaluation theory, our model proposes the distinctive yet interactive nature of reward power and coercive power, commonly considered together as mediated powers. It also posits that non-mediated powers (expert, referent, and legitimate) amplify the influences of reward and coercive powers. An empirical investigation, based on large-scale multinational survey data, provides support for our theoretical arguments. We discuss the practical implications for how buyers can use reward and coercive powers to improve supplier relationship commitment"

The full article can be accessed here: http://onlinelibrary.wiley.com/wol1/doi/10.1111/jscm.12138/full
DOI: 10.1111/jscm.12138

Dr. Sangho Che