Performance implications of peer monitoring among suppliers
Asia Pacific Journal of Marketing and Logistics
ISSN: 1355-5855
Article publication date: 19 September 2022
Issue publication date: 27 June 2023
Abstract
Purpose
What are the performance implications of peer monitoring in a multiple-supplier context? Grounded in agency and social exchange theories, this study aims to examine how, when, and why peer monitoring works as a crucial control mechanism to reduce opportunism among suppliers.
Design/methodology/approach
A conceptual model and research hypotheses are tested using survey data from 246 respondents in 82 supplier groups.
Findings
Results suggest that peer monitoring is related positively to perceived deterrence (as mediator) and negatively to opportunism, whereas the mediated relationship is moderated negatively by generalized reciprocity and positively by balanced reciprocity and negative reciprocity.
Originality/value
This study introduces the application of peer monitoring into business-to-business research and shows how it reduces opportunism. Its findings have implications for manufacturers on how to use peer monitoring to control opportunism among multiple suppliers.
Keywords
Acknowledgements
The authors gratefully acknowledge the grants from the National Natural Science Foundation of China (projects 71702053 and 72072152), Natural Science Foundation of Hunan (2021JJ30222), Philosophic and Social Science Foundation of Hunan (17YBA126), Education Department Foundation of Hunan (21B0529), City University of Hong Kong (CityU SRG 7005478 and 7005791) and the Research Grant Council of Hong Kong SAR (CityU 11502218) for their financial support.
Citation
Hu, Q., Hu, J. and Yang, Z. (2023), "Performance implications of peer monitoring among suppliers", Asia Pacific Journal of Marketing and Logistics, Vol. 35 No. 7, pp. 1618-1638. https://doi.org/10.1108/APJML-02-2022-0158
Publisher
:Emerald Publishing Limited
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