Examination of the level of adoption of opportunistic behaviors in the supply chain in the food sector : Relationships between multiple retailers and suppliers
Food supply chains are dominated by multiple retailing companies with high market power. There is a raising concern about multiple retailers’ practicing in their relationships with suppliers. In some cases, multiple retailers may behave opportunistically against their suppliers. This could negatively impact suppliers’ operations, the whole chain’s competitiveness and in the long term even consumers’ welfare. Even though the issue is of high importance no studies have attempted to examine it empirically in the past. The aim of this study is to investigate potential multiple retailers’ opportunism in the supply chain in the Greek food sector. For this reason a conceptual model describing the creation of multiple retailers’ opportunism was developed. A combination of qualitative and quantitative research methods was applied in order to confirm the conceptual model. In-depth interviews with practitioners preliminarily confirmed the model and gave valuable contextual specific information. A large scale survey in a sample of 398 food suppliers gave significant results concerning multiple retailers’ opportunistic behaviors. Structural Equation Modeling was applied for data analysis. The study confirmed the developed model and showed that in some cases retailers may adopt opportunistic practices. Goal incompatibility between the exchange partners and suppliers’ dependence on their big customers are the most important factors creating opportunism. In addition, the study found that small suppliers and suppliers who compete with own brand products face higher levels of opportunism. Excessive payments to retailers, agreement violations and negotiation pressures are the three emerged underlying dimensions of retailers’ opportunism. The findings of the study can be used by suppliers for mitigating retailers’ opportunistic behavior and also for increasing their awareness concerning the requirements of such a relationship. In addition, retailers could obtain significant insights for the suppliers’ perceptions concerning their relationships.
Supply chain, Food industry, Opportunism, Business to business relationships, 338.194 95, Εφοδιαστική αλυσίδα, Κλάδος τροφίμων, Οπορτουνισμός, Σχέσεις επιχειρήσεων
Networked Digital Library of Theses and Dissertations