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Power, buyer trustworthiness and supplier performance: evidence from the Armenian dairy sector

Power, buyer trustworthiness and supplier performance: evidence from the Armenian dairy sector
Power, buyer trustworthiness and supplier performance: evidence from the Armenian dairy sector
The paper presents a Multiple Indicators and MultIple Causes (MIMIC) model for explaining the relationships between buyer-seller power, buyer trustworthiness and supplier satisfaction / performance. The model draws on an organizational supply chain perspective of power and is verified using data relating to dairy farmers’ relationships with their main buyer in Armenia. The analysis indicates that buyers are more trustworthy where there is greater competition for supplies. Buyer trustworthiness is also positively correlated with both the size of a supplier, as well as a supplier being a member of a marketing cooperative. Buyer trustworthiness has a positive impact on suppliers’ satisfaction (regarding their relationship with their main buyer) and enhances the quality and quantity of suppliers’ output.
0019-8501
69-77
Gorton, Matthew
c32c7dd8-19b7-48c5-89bc-8adfd63333ca
Angell, Robert
ca8389e4-2a83-43a8-b331-c262eda37674
Dries, Liesbeth
1ebbdf02-7214-41b5-9c10-75b5d966aa20
Urutyan, Vardan
202863d2-8099-464c-ad36-dfe07dee5f67
White, John
559c3678-611b-4ab6-b719-97847fb50708
Gorton, Matthew
c32c7dd8-19b7-48c5-89bc-8adfd63333ca
Angell, Robert
ca8389e4-2a83-43a8-b331-c262eda37674
Dries, Liesbeth
1ebbdf02-7214-41b5-9c10-75b5d966aa20
Urutyan, Vardan
202863d2-8099-464c-ad36-dfe07dee5f67
White, John
559c3678-611b-4ab6-b719-97847fb50708

Gorton, Matthew, Angell, Robert, Dries, Liesbeth, Urutyan, Vardan and White, John (2015) Power, buyer trustworthiness and supplier performance: evidence from the Armenian dairy sector. Industrial Marketing Management, 50, 69-77. (doi:10.1016/j.indmarman.2015.05.024).

Record type: Article

Abstract

The paper presents a Multiple Indicators and MultIple Causes (MIMIC) model for explaining the relationships between buyer-seller power, buyer trustworthiness and supplier satisfaction / performance. The model draws on an organizational supply chain perspective of power and is verified using data relating to dairy farmers’ relationships with their main buyer in Armenia. The analysis indicates that buyers are more trustworthy where there is greater competition for supplies. Buyer trustworthiness is also positively correlated with both the size of a supplier, as well as a supplier being a member of a marketing cooperative. Buyer trustworthiness has a positive impact on suppliers’ satisfaction (regarding their relationship with their main buyer) and enhances the quality and quantity of suppliers’ output.

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IMM power supply chain prepublication - Accepted Manuscript
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More information

Accepted/In Press date: 20 August 2014
e-pub ahead of print date: 2 June 2015
Published date: 1 October 2015

Identifiers

Local EPrints ID: 426006
URI: http://eprints.soton.ac.uk/id/eprint/426006
ISSN: 0019-8501
PURE UUID: 32541344-7944-49d5-b183-d28a1093392d

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Date deposited: 09 Nov 2018 17:30
Last modified: 22 Nov 2021 06:56

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Contributors

Author: Matthew Gorton
Author: Robert Angell
Author: Liesbeth Dries
Author: Vardan Urutyan
Author: John White

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