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

Gorton, Matthew, Angell, Robert ORCID: https://orcid.org/0000-0001-8554-2092, Dries, Liesbeth, Urutyan, Vardan, Jackson, Elizabeth and White, John 2015. Power, buyer trustworthiness and supplier performance: evidence from the Armenian dairy sector. Industrial Marketing Management 50 , pp. 69-77. 10.1016/j.indmarman.2015.05.024

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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.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > HD Industries. Land use. Labor S Agriculture > S Agriculture (General)
Publisher:	Elsevier
ISSN:	0019-8501
Date of Acceptance:	1 January 2015
Last Modified:	06 Dec 2024 17:15
URI:	https://orca.cardiff.ac.uk/id/eprint/70809

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