The protection of the trustor through the use of control mechanisms and its performance implications

Emerald - Tập 22 Số 4 - Trang 260-271 - 2007
Sertan Kabadayi1, Sungmin Ryu2
1Graduate School of Business, Fordham University, New York, New York, USA
2School of Business, Sungkyunkwan University, Seoul, South Korea

Tóm tắt

PurposeThe article seeks to explain the impact of the adoption of control mechanisms by a manufacturer as a safeguard against the betrayal of trust, which could consequently have performance implications for its relationship with its supplier.Design/methodology/approachThis study was conducted within the context of the relationship between a manufacturer and its major supplier and the framework was tested by survey data collected from 174 manufacturers. LISREL was used in the testing of the hypotheses.FindingsThis study reflects that a manufacturer may reduce the risk associated with trusting its suppliers by either monitoring them directly or adopting the norm of information sharing. Alternatively, it could seek to reduce risk by adopting both types of control mechanism simultaneously. Conversely, the results of this study indicate that control mechanisms, when used individually, are not effective in increasing supplier performance. However, when used in combination as plural control mechanisms, increased supplier performance can be attained.Practical implicationsA high level of trust placed in an exchange partner does not necessarily ensure greater success of the relationship. What this means is that firms cannot take performance for granted where trust plays a key role within the professional relationship. Therefore, firms still need to put mechanisms in place to ensure that, in the event of betrayal, their assets are protected. Among the different types of control mechanisms, the plural control mechanism results in enhanced supplier performance.Research limitations/implicationsThis study uses factual performance data but does not use perceptual performance measures. The ideal way to measure channel performance is to measure both perceptual and factual performance data to increase reliability.Originality/valueThere has been little research on control mechanisms that guarantee the protection of the trustor. This study clarifies which control mechanisms manufacturers rely on to protect themselves from breach of trust, and investigates the effects of control mechanisms on supplier performance when used as a safeguard against the betrayal of trust.

Tài liệu tham khảo

AFX News (2005), “Volkswagen's tire and plastics suppliers demand higher prices”, AFX International Focus, September 13. Aiken, L.S. and West, S.G. (1991), Multiple Regression: Testing and Interpreting Interactions, Sage Publications, Newbury Park, CA. Andaleeb, S. (1992), “The trust concept: research issues for channels of distribution”, Research in Marketing, Vol. 11 No. 2, pp. 1‐34. Anderson, J. and Narus, J. (1990), “A model of distributor firm and manufacturer firm working partnerships”, Journal of Marketing, Vol. 54 No. 1, pp. 42‐58. Aulakh, P.S., Kotabe, M. and Sahay, A. (1997), “Antecedents and performance implications of channel integration in foreign markets”, Journal of International Business Studies, Vol. 28 No. 1, pp. 145‐75. Bello, D.C. and Gilliland, D.I. (1997), “The effect of output controls, process controls, and flexibility on export channel performance”, Journal of Marketing, Vol. 61 No. 1, pp. 22‐38. Bentler, P.M. (1990), “Comparative fit indices in structural models”, Psychological Bulletin, Vol. 107 No. 2, p. 238. Blau, P.M. and Scott, R.W. (1962), Formal Organizations: A Comparative Approach, Chandler Publishing Company, San Francisco, CA. Bohnet, I. and Zeckhauser, R. (2004), “The effect of output controls, process controls, and flexibility on export channel performance”, Journal of Economic Behavior and Organization, Vol. 55 No. 4, pp. 467‐84. Bollen, K. (1989), Structural Equations with Latent Variables, Wiley, New York, NY. Bradach, J. and Eccles, R. (1989), “Price, authority, and trust: from ideal types to plural forms”, Annual Review of Sociology, Vol. 15, pp. 97‐118. Buchanan, L. (1992), “Vertical trade relationships: the role of dependence and symmetry in attaining organizational goals”, Journal of Marketing Research, Vol. 29 No. 1, pp. 65‐75. Cannon, J., Achrol, R. and Gundlach, G. (2000), “Contracts, norms, and plural form governance”, Journal of Academy of Marketing Science, Vol. 28 No. 2, pp. 180‐94. Cartwright, B.C. and Schwartz, R.D. (1973), “The invocation of legal norms: an empirical investigation of Durkheim and Weber”, American Sociological Review, Vol. 38, pp. 340‐54. Celly, K.S. and Frazier, G.L. (1996), “Outcome‐based and behavior‐based coordination efforts in channel relationships”, Journal of Marketing Research, Vol. 33 No. 2, pp. 200‐10. Coleman, J.S. (1990), Foundations of Social Theory, Harvard University Press, Cambridge, MA. Das, T.K. and Teng, B. (1998), “Between trust and control: developing confidence in partner cooperation in alliances”, Academy of Management Review, Vol. 23 No. 3, pp. 491‐512. Deutsch, M. (1962), “Trust, trustworthiness, and the F scale”, Journal of Abnormal and Social Psychology, Vol. 61, pp. 138‐40. Doney, P.M. and Cannon, J.P. (1997), “An examination of the nature of trust in buyer‐seller relationships”, Journal of Marketing, Vol. 61 No. 2, pp. 35‐51. Elahee, M. and Brooks, C.M. (2004), “Trust and negotiation tactics: perceptions about business‐to‐business negotiations in Mexico”, Journal of Business & Industrial Marketing, Vol. 19 No. 6, pp. 397‐404. Elangovan, A.R. and Shapiro, D. (1998), “Betrayal of trust in organizations”, Academy of Management Review, Vol. 23 No. 3, pp. 547‐66. Euyang, C. (1994), “Models of espionage”, in Sarbin, T., Carney, R. and Euyang, C. (Eds), Citizen Espionage: Studies in Trust and Betrayal, Praeger, Westport, CT, pp. 69‐91. Ganesan, S. (1994), “Determinants of long‐term orientation in buyer‐seller relationships”, Journal of Marketing, Vol. 58 No. 2, pp. 1‐19. Gerbing, D. and Anderson, J. (1988), “An updated paradigm for scale development incorporating unidimensionality and its assessment”, Journal of Marketing Research, Vol. 25 No. 2, pp. 186‐92. Geyskens, I., Steenkamp, J.B.E., Scheer, L. and Kumar, N. (1996), “The effects of trust and independence on relationship commitment: a trans‐Atlantic study”, International Journal of Research in Marketing, Vol. 13 No. 2, pp. 303‐17. Ghoshal, S. and Moran, P. (1996), “Bad for practice: a critique of transaction cost theory”, The Academy of Management Review, Vol. 21 No. 1, pp. 13‐47. Granovetter, M.S. (1985), “Economic action and social structure: the problem of embeddedness”, American Journal of Sociology, Vol. 91, pp. 481‐510. Green, J. (2000), “Tight squeeze at Chrysler”, Business Week, October 9, p. 54. Grover, S.L. (1993), “Lying, deceit, and subterfuge: a model of dishonesty in the workplace”, Organization Science, Vol. 4, pp. 478‐95. Gundlach, T.G. and Achrol, R.S. (1993), “Governance in exchange: contract law and its alternatives”, Journal of Public Policy and Marketing, Vol. 12 No. 2, pp. 141‐55. Hadjikhani, A. and Thilenius, P. (2005), “The impact of horizontal and vertical connections on relationships' commitment and trust”, Journal of Business & Industrial Marketing, Vol. 20 No. 3, pp. 136‐47. Heide, J. (1994), “Interorganizational governance in marketing channels”, Journal of Marketing, Vol. 58 No. 1, pp. 71‐85. Heide, J. and John, G. (1988), “The role of dependence balancing in safeguarding transaction‐specific assets in conventional channels”, Journal of Marketing, Vol. 52 No. 2, pp. 20‐35. Heide, J. and John, G. (1992), “Do norms matter in marketing relationships?”, Journal of Marketing, Vol. 56 No. 2, pp. 32‐44. Hosmer, L.T. (1995), “Trust: the connecting link between organizational theory and philosophical ethics”, Academy of Management Review, Vol. 20, pp. 379‐403. Hutt, M.D. and Speh, T.W. (1992), Business Marketing Management, 4th ed., Dryden Press, Orlando, FL. Jaccard, J. and Wan, C. (1995), “Measurement error in the analysis of interaction effects between continuous predictors using multiple regression: multiple indicator and structural equation approaches”, Psychological Bulletin, Vol. 117 No. 2, pp. 348‐57. Jap, S. (1999), “Relationship quality and buyer‐seller interactions in channels of distribution”, Journal of Business Research, Vol. 46 No. 3, pp. 303‐13. Johnson‐George, C. and Swap, W.C. (1982), “Measurement of specific interpersonal trust: construction and validation of a scale to assess trust in a specific other”, Journal of Personality and Social Psychology, Vol. 43, pp. 1306‐17. Johnsson, J. (2003), “Moto, Nextel growing apart”, Crain's Chicago Business, Vol. 26 No. 39, p. 15. Kee, H.W. and Knox, R.E. (1970), “Conceptual and methodological considerations in the study of trust and suspicion”, Journal of Conflict Resolution, Vol. 14, pp. 357‐66. Kumar, N., Stern, L.W. and Achrol, R.S. (1992), “Assessing reseller performance from the perspective of supplier”, Journal of Marketing Research, Vol. 29 No. 2, pp. 238‐53. Lal, R. (1990), “Improving channel coordination through franchising”, Marketing Science, Vol. 9 No. 4, pp. 299‐318. Leenders, M.R. and Fearon, H.E. (1993), Purchasing and Materials Management, Irwin, Homewood, IL. Lewicki, R.J. (1983), “Lying and deception: a behavioral model”, in Bazerman, M. and Lewicki, R.J. (Eds), Negotiating in Organizations, Sage Publications, Beverly Hills, CA. Lui, S.S. and Ngo, H. (2004), “The role of trust and contractual safeguards on cooperation in non‐equity alliances”, Journal of Management, Vol. 30 No. 4, pp. 471‐85. Lusch, R.F. and Brown, J.R. (1996), “Interdependency, contracting, and relational behavior in marketing channels”, Journal of Marketing, Vol. 60 No. 4, pp. 19‐38. Macneil, I.R. (1980), The New Social Contract, Yale University, New Haven, CT. Madhavan, R. and Grover, R. (1998), “From embedded knowledge to embodied knowledge: new product development as knowledge management”, Journal of Marketing, Vol. 62 No. 4, pp. 1‐12. Mayer, R., Davis, J. and Shoorman, D. (1995), “An integrative model of organizational trust”, Academy of Management Review, Vol. 20 No. 3, pp. 709‐34. Moorman, C., Zaltman, G. and Deshpande, R. (1992), “Relationships between providers and users of market research: the dynamics of trust within and between organizations”, Journal of Marketing Research, Vol. 29 No. 3, pp. 314‐29. Morris, J.H. and Moberg, D.J. (1994), “Work organizations as contexts for trust and betrayal”, in Sarbin, T., Carney, R. and Euyang, C. (Eds), Citizen Espionage: Studies in Trust and Betrayal, Praeger, Westport, CT, pp. 163‐87. Murry, J.P. and Heide, J.B. (1998), “Managing promotion program participation with manufacturer‐retailer relationships”, Journal of Marketing, Vol. 62 No. 1, pp. 58‐68. Neuman, J. and Baron, R. (1997), “Aggression in the workplace”, in Giacalone, R. and Greenberg, J. (Eds), Antisocial Behavior in Organizations, Sage Publications, Thousand Oaks, CA, pp. 37‐67. Noordewier, T.G., John, G. and Nevin, J.R. (1990), “Performance outcomes of purchasing arrangements in industrial buyer‐vendor relationships”, Journal of Marketing, Vol. 54 No. 4, pp. 108‐22. Nooteboom, B. (1996), “Trust, opportunism and governance: a process and control model”, Organization Studies, Vol. 17 No. 6, pp. 985‐1010. Ouchi, W. (1979), “A conceptual framework for the design of organizational control mechanisms”, Management Science, Vol. 25 No. 9, pp. 833‐48. Parkhe, A. (1993), “Strategic alliance structuring: a game theoretic and transaction cost examination of interfirm cooperation”, Academy of Management Journal, Vol. 36 No. 4, pp. 794‐829. Perrow, C. (1986), Complex Organizations: A Critical Essay, Random House, New York, NY. Peter, P. (1979), “Reliability: a review of psychometric basics and recent marketing practices”, Journal of Marketing Research, Vol. 16 No. 1, pp. 6‐17. Sachdev, H.J., Bello, D.C. and Pilling, B.K. (1994), “Control mechanisms within export channels of distribution”, Journal of Global Marketing, Vol. 8 No. 2, pp. 31‐51. Sarbin, T.R. (1994), “A criminological approach to security violations”, in Sarbin, T., Carney, R. and Euyang, C. (Eds), Citizen Espionage: Studies in Trust and Betrayal, Praeger, Westport, CT, pp. 107‐25. Schurr, P. and Ozanne, J. (1985), “Influences on exchange processes: buyer's preconceptions of a seller's trustworthiness and bargaining toughness”, Journal of Consumer Research, Vol. 11 No. 4, pp. 939‐54. Spekman, R.E. (1988), “Strategic supplier selection: understanding long‐term buyer relationships”, Business Horizons, Vol. 31 No. 4, pp. 75‐81. Stump, R.L. and Heide, J. (1996), “Controlling supplier opportunism in industrial relationships”, Journal of Marketing Research, Vol. 33 No. 4, pp. 431‐41. Svensson, G. (2004), “Vulnerability in business relationships: the gap between dependence and trust”, Journal of Business & Industrial Marketing, Vol. 19 No. 7, pp. 469‐83. Weitz, B.A. and Jap, S.D. (1995), “Relationship marketing and distribution channels”, Journal of the Academy of Marketing Science, Vol. 23 No. 4, pp. 305‐20. Williamson, O.E. (1985), The Economic Institutions of Capitalism, The Free Press, New York, NY. Wilson, D.T. (1995), “An integrated model of buyer‐seller relationships”, Journal of the Academy of Marketing Science, Vol. 24 No. 4, pp. 335‐45. Zaheer, A. and Venkatraman, N. (1995), “Relational governance as an interorganizational strategy: an empirical test of the role of trust in economic exchange”, Strategic Management Journal, Vol. 16, pp. 373‐92. Zaheer, A., McEvily, J. and Perrone, J. (1998), “Does trust matter? Exploring the effects of interorganizational and interpersonal trust on performance”, Organization Science, Vol. 9 No. 2, pp. 141‐59. Zaltman, G. and Moorman, C. (1988), “The management and use of advertising research”, Journal of Advertising Research, Vol. 28 No. 6, pp. 11‐18. Zand, D. (1972), “Trust and managerial problem solving”, Administrative Science Quarterly, Vol. 17 No. 2, pp. 229‐39.
Thông tin
Thông tin xuất bản

Emerald

Tập 22 Số 4

260-271

Thông tin tác giả