The Impact of Psychological Contract Breaches within East-West Buyer-Supplier Relationships

The expanding role of Asian firms in global supply chains has meant that their Western counterparts need to be capable of transcending the East-West divide in their relational building efforts if they wish to successfully participate in these networks. This paper draws upon social exchange (SE) theo...

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Main Authors: Kingshott, Russel, Sharma, Piyush, Sima, Herbert, Wong, David
Format: Journal Article
Published: Elsevier 2020
Online Access:http://hdl.handle.net/20.500.11937/78262
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author Kingshott, Russel
Sharma, Piyush
Sima, Herbert
Wong, David
author_facet Kingshott, Russel
Sharma, Piyush
Sima, Herbert
Wong, David
author_sort Kingshott, Russel
building Curtin Institutional Repository
collection Online Access
description The expanding role of Asian firms in global supply chains has meant that their Western counterparts need to be capable of transcending the East-West divide in their relational building efforts if they wish to successfully participate in these networks. This paper draws upon social exchange (SE) theory to integrate the exit, voice, loyalty, neglect (EVLN) typology with the psychological contract (PSYCON) literature, to examine how Australian buyer firms build and nurture relationships with their Chinese suppliers. Data from 327 Australian managers collected using an online self-administered questionnaire reveals the negative effects of PSYCON breaches towards their suppliers on neglect, voice and loyalty in the relationship. In addition, contrasting effects of neglect and voice behaviours on trust and commitment, suggest that these behaviours can help erode and build East-West B2B relationships, respectively. These findings extend research on B2B relationships and offer useful managerial insights for decision makers operating in global supply chains involving relationships between firms from Eastern and Western backgrounds.
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spelling curtin-20.500.11937-782622023-04-14T03:14:00Z The Impact of Psychological Contract Breaches within East-West Buyer-Supplier Relationships Kingshott, Russel Sharma, Piyush Sima, Herbert Wong, David The expanding role of Asian firms in global supply chains has meant that their Western counterparts need to be capable of transcending the East-West divide in their relational building efforts if they wish to successfully participate in these networks. This paper draws upon social exchange (SE) theory to integrate the exit, voice, loyalty, neglect (EVLN) typology with the psychological contract (PSYCON) literature, to examine how Australian buyer firms build and nurture relationships with their Chinese suppliers. Data from 327 Australian managers collected using an online self-administered questionnaire reveals the negative effects of PSYCON breaches towards their suppliers on neglect, voice and loyalty in the relationship. In addition, contrasting effects of neglect and voice behaviours on trust and commitment, suggest that these behaviours can help erode and build East-West B2B relationships, respectively. These findings extend research on B2B relationships and offer useful managerial insights for decision makers operating in global supply chains involving relationships between firms from Eastern and Western backgrounds. 2020 Journal Article http://hdl.handle.net/20.500.11937/78262 10.1016/j.indmarman.2020.03.008 Elsevier fulltext
spellingShingle Kingshott, Russel
Sharma, Piyush
Sima, Herbert
Wong, David
The Impact of Psychological Contract Breaches within East-West Buyer-Supplier Relationships
title The Impact of Psychological Contract Breaches within East-West Buyer-Supplier Relationships
title_full The Impact of Psychological Contract Breaches within East-West Buyer-Supplier Relationships
title_fullStr The Impact of Psychological Contract Breaches within East-West Buyer-Supplier Relationships
title_full_unstemmed The Impact of Psychological Contract Breaches within East-West Buyer-Supplier Relationships
title_short The Impact of Psychological Contract Breaches within East-West Buyer-Supplier Relationships
title_sort impact of psychological contract breaches within east-west buyer-supplier relationships
url http://hdl.handle.net/20.500.11937/78262