Managers' risk propensity and destructive behavior in buyer-seller relationships: an application of PLS-analysis

Brian Tjemkes, Olivier Furrer, Jörg Henseler

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Abstract

Despite their popularity, buyerseller relationships are often dissatisfying and engender destructive behavior, such as opportunism and exit by one partner. To explain destructive behavior, previous supply chain management studies primarily focused on the influence of situational factors, such as social and economic dissatisfaction, without accounting for managers’ risk propensity. Accounting for risk is critical though, because destructive behavior in buyerseller relationships cannot be dissociated from the people who manage them. Drawing on risk and buyerseller literature, the authors develop and empirically test a model that incorporates a moderating effect of the risk perceptions of situational factors on the relationship between a manager’s risk propensity and the inclination to exit the relationship and act opportunistically. A survey of purchasing managers indicates that the positive relationship between risk propensity and destructive behavior is strengthened by social dissatisfaction and mitigated by economic dissatisfaction.
Original languageEnglish
Title of host publicationProceedings of the 2nd International Symposium on Partial Least Squares Path Modeling
Subtitle of host publicationThe Conference for PLS Users
EditorsJörg Henseler, Christian Ringle, José Roldán, Gabriel Cepeda
Place of PublicationEnschede
PublisherUniversity of Twente
Number of pages26
ISBN (Print)9789036540568
DOIs
Publication statusPublished - 16 Jun 2015
Event2015 PLS User Conference: 2nd International Symposium on Partial Least Squares Path Modeling - The Conference for PLS Users - Seville, Spain
Duration: 16 Jun 201519 Jun 2015

Conference

Conference2015 PLS User Conference
Country/TerritorySpain
CitySeville
Period16/06/1519/06/15

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