Buyer-supplier and Supplier-supplier Alliances: Do They Reinforce or Undermine One Another?

24 Pages Posted: 16 Apr 2008

See all articles by Sérgio G. Lazzarini

Sérgio G. Lazzarini

Insper Institute of Education and Research

Danny P. Pimentel Claro

affiliation not provided to SSRN

Luiz F. Mesquita

Arizona State University (ASU)

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Abstract

Previous research has portrayed buyersupplier and suppliersupplier alliances as important mechanisms to foster learning and exchange efficiencies. Controversy remains, however, as to how these alliances interact. While some propose they reinforce one another (e.g. learning in horizontal ties generates positive spillovers to vertical ties), others propose a negative interplay (e.g. when increasing vertical-tie intensity, suppliers may weaken horizontal ties to avoid retaliation from buyers who wish to preserve bargaining power). We empirically test these competing views using survey data from the Brazilian auto-parts industry. In an attempt at reconciliation, we propose that the positive or negative interaction between vertical and horizontal alliances depends on the level of technological uncertainty of goods exchanged. Vertical ties seem to inhibit horizontal ties when technological uncertainty is low; when technological uncertainty is higher, vertical and horizontal ties do not seem to have any meaningful form of interaction. We discuss implications for theory and practice.

Suggested Citation

Lazzarini, Sérgio Giovanetti and Claro, Danny P. Pimentel and Mesquita, Luiz F., Buyer-supplier and Supplier-supplier Alliances: Do They Reinforce or Undermine One Another?. Journal of Management Studies, Vol. 45, Issue 3, pp. 561-584, May 2008. Available at SSRN: https://ssrn.com/abstract=1121086 or http://dx.doi.org/10.1111/j.1467-6486.2007.00748.x

Sérgio Giovanetti Lazzarini (Contact Author)

Insper Institute of Education and Research ( email )

R Quata 300
Sao Paulo, 04542-030
Brazil
55-11-45042387 (Phone)

HOME PAGE: http://www.sergiolazzarini.insper.edu.br/indexelazza.html

Danny P. Pimentel Claro

affiliation not provided to SSRN

Luiz F. Mesquita

Arizona State University (ASU) ( email )

Farmer Building 440G PO Box 872011
Tempe, AZ 85287
United States

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