Information Networks as a Safeguard from Opportunism in Industrial Supplier-Buyer Relationships

Schmalenbach Business Review, Vol. 54, October 2002

16 Pages Posted: 7 Nov 2003

See all articles by Heribert Gierl

Heribert Gierl

University of Augsburg - Department of Marketing

Silke Bambauer

University of Augsburg

Abstract

The network idea has been gaining growing attention in the last decades. We analyse the applicability of networks as a mechanism that protects suppliers from buyers' opportunism. So-called information networks can function as a safeguard for dependent suppliers by reducing information asymmetries among the networking parties and by developing group norms. To confirm this hypothesis, we conduct an empirical study. The results show that information networks can provide protection for a dependent supplier if information about a buyer's unfair behaviour is credible, and if as a result this buyer suffers a considerable loss of reputation.

JEL Classification: M31

Suggested Citation

Gierl, Heribert and Bambauer, Silke, Information Networks as a Safeguard from Opportunism in Industrial Supplier-Buyer Relationships. Schmalenbach Business Review, Vol. 54, October 2002. Available at SSRN: https://ssrn.com/abstract=349431 or http://dx.doi.org/10.2139/ssrn.349431

Heribert Gierl (Contact Author)

University of Augsburg - Department of Marketing ( email )

Augsburg, 86135
Germany

Silke Bambauer

University of Augsburg

Augsburg, 86135
Germany

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