Multi-principal collaboration and supplier's compliance with codes-of-conduct. Issue 4 (12th November 2018)

• Record Type: Journal Article
• Authors: Delbufalo, Emanuela; Bastl, Marko
• Is Part Of: International journal of logistics management. Volume 29:Issue 4(2018)
• Page Start: 1237
• Page End: 1254
• Publication Date: 2018-11-12
• Subjects: Sustainability -- Corporate social responsibility -- Agency theory -- Europe -- Asia -- Buyer–supplier relationships -- Conceptual research -- Theory development -- Supplier management -- Supplier compliance; Business logistics -- Management -- Periodicals; Physical distribution of goods -- Management -- Periodicals; Web sites; 658.5
• DOI: 10.1108/IJLM-09-2017-0222
• Languages: English
• ISSNs: 0957-4093

Abstract

Abstract : Purpose: 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/approach: The 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. Findings: The 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/implications: This is a conceptual theory development study, offering testable propositions, which have then to be empirically validated. Practical implications: The 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/value: This 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.