From arms‐length to collaborative relationships in the supply chain

James Hoyt (Sorrell College of Business, Troy State University, Alabama, USA, and)
Faizul Huq (College of Business Administration, The University of Texas at Arlington, Texas, USA)

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Publication date: 1 November 2000

Abstract

Buyer‐supplier relationships play an important role in an organization’s ability to respond to dynamic and unpredictable change. If the relationship is too restrictive, flexibility will be difficult to achieve and, if it is too lenient the risk of opportunism will be present. This paper provides a framework for understanding how buyer‐supplier relationships have evolved over the past two decades from transaction processes based on arms‐length agreements to collaborative processes based on trust and information sharing. To achieve this objective, buyer‐supplier relationships are reviewed from the perspectives of transaction cost theory, strategy‐structure theory and resource‐based theory of the firm. Findings from early supply chain research are contrasted with the findings of more current research to provide a better understanding of how these relationships have changed. Current theory is extended by offering two proposals that test the influence of trust and information sharing and a third proposal that rejects the notion that supply chain alliances lead to monopolistic practices.

Keywords

Citation

James Hoyt and Faizul Huq (2000) "From arms‐length to collaborative relationships in the supply chain", International Journal of Physical Distribution & Logistics Management, Vol. 30 No. 9, pp. 750-764

Download as .RIS

DOI

: https://doi.org/10.1108/09600030010351453

Publisher

:

MCB UP Ltd

Copyright © 2000, MCB UP Limited

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.
To rent this content from Deepdyve, please click the button.