Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Multi-principal collaboration and supplier’s compliance with codes-of-conduct

Multi-principal collaboration and supplier’s compliance with codes-of-conduct The purpose of this paper is to articulate propositions on how collaborating multi-national corporations (MNCs) can manage their supplier base in order to reduce the risk of suppliers’ non-compliance with shared codes-of-conduct.Design/methodology/approachThe study utilises a conceptual theory development approach. In doing so, it utilises key tenets of agency theory that are applied in a multi-principal–supplier relationship context and synthesised in a series of propositions.FindingsThe study shows that MNCs have a variety of mechanisms for reducing the risk of suppliers’ non-compliance by decreasing information asymmetry, increasing their bargaining power and simultaneously use of both rewards/sanctions, and reputation-based safeguards.Research limitations/implicationsThis is a conceptual theory development study, offering testable propositions, which have then to be empirically validated.Practical implicationsThe study showcases that managers of MNCs who find themselves in relationships with non-compliant suppliers have at their disposal a variety of mechanisms to reduce the risk of suppliers’ non-compliance.Originality/valueThis is one of the first studies that explore suppliers’ non-compliance with codes-of-conduct at the level of a relationship, rather than a single firm. In this way it proposes a theoretical framework grounded in agency theory on managing relationships between multi-principal collaborators and their suppliers. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The International Journal of Logistics Management Emerald Publishing

Multi-principal collaboration and supplier’s compliance with codes-of-conduct

Loading next page...
 
/lp/emerald-publishing/multi-principal-collaboration-and-supplier-s-compliance-with-codes-of-ewbm0FW6Hz

References (82)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0957-4093
DOI
10.1108/ijlm-09-2017-0222
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to articulate propositions on how collaborating multi-national corporations (MNCs) can manage their supplier base in order to reduce the risk of suppliers’ non-compliance with shared codes-of-conduct.Design/methodology/approachThe study utilises a conceptual theory development approach. In doing so, it utilises key tenets of agency theory that are applied in a multi-principal–supplier relationship context and synthesised in a series of propositions.FindingsThe study shows that MNCs have a variety of mechanisms for reducing the risk of suppliers’ non-compliance by decreasing information asymmetry, increasing their bargaining power and simultaneously use of both rewards/sanctions, and reputation-based safeguards.Research limitations/implicationsThis is a conceptual theory development study, offering testable propositions, which have then to be empirically validated.Practical implicationsThe study showcases that managers of MNCs who find themselves in relationships with non-compliant suppliers have at their disposal a variety of mechanisms to reduce the risk of suppliers’ non-compliance.Originality/valueThis is one of the first studies that explore suppliers’ non-compliance with codes-of-conduct at the level of a relationship, rather than a single firm. In this way it proposes a theoretical framework grounded in agency theory on managing relationships between multi-principal collaborators and their suppliers.

Journal

The International Journal of Logistics ManagementEmerald Publishing

Published: Oct 26, 2018

Keywords: Sustainability; Corporate social responsibility; Agency theory; Europe; Asia; Buyer–supplier relationships; Conceptual research; Theory development; Supplier management; Supplier compliance

There are no references for this article.