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Title: | Power, shared goals and supplier flexibility: a study of the HUB-and-spoke supply chain |
Authors: | Liu, G Aroean, L Ko, WW |
Keywords: | supplier flexibility;power;shared goals;hub-and-spoke supply chain;influence strategies |
Issue Date: | 3-Jan-2022 |
Publisher: | Emerald |
Citation: | Liu, G., Aroean, L. and Ko, W.W. (2022 ) 'Power, shared goals and supplier flexibility: a study of the HUB-and-spoke supply chain', International Journal of Operations and Production Management, 42 (2), pp. 182 - 205 (24). doi: 10.1108/IJOPM-08-2021-0538. |
Abstract: | Purpose Supplier flexibility reflects a supplier's operations-related decisions in responsively providing the necessary inputs to the focal firm. Drawing on resource-dependency theory and transaction cost economics, this study develops a conceptual framework to explain the differential effects of a focal firm's power over supplier flexibility in the context of the hub-and-spoke supply chain (SC). This study also considers the goals shared between the focal firm and its suppliers as an important contingency factor within the framework. Design/methodology/approach This study tests the proposed conceptual framework using dyadic survey data from a hub-and-spoke SC consisting of a large construction contractor and its 100 suppliers in Indonesia. Findings The findings show that coercive power has an inverted U-shaped effect on supplier flexibility, while legal-legitimate power has a U-shaped effect. Furthermore, shared goals positively moderate the U-shaped effect between legal-legitimate power and supplier flexibility. Originality/value This study differentiates between the impacts of coercive power and legal-legitimate power on supplier flexibility in the hub-and-spoke SC. It also demonstrates that shared goals play a moderating role in affecting the impacts of legal-legitimate power on supplier flexibility. These findings also have important implications with regard to integrating resource-dependency theory and transaction cost economics to explain these associations. |
URI: | https://bura.brunel.ac.uk/handle/2438/24100 |
DOI: | https://doi.org/10.1108/IJOPM-08-2021-0538 |
ISSN: | 0144-3577 |
Appears in Collections: | Brunel Business School Research Papers |
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