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The authors examine how different exchange patterns affect structurally disadvantaged actors' interactional justice evaluations and group identification in situations characterized by reciprocal and negotiated exchange.

Laboratory experiment.

Although results replicate prior work finding that disadvantaged individuals view their exchange partners as less fair when exchanging via negotiation rather than reciprocation, they also show the value of considering the pattern of exchange. Indeed, both the form of exchange and the pattern of exchange prompt exchange behaviors that shape how disadvantaged actors view the exchange experience, such that much of the direct effect of the form of exchange is offset by indirect paths, especially when the disadvantaged actor remains committed to their more advantaged partner. These fairness evaluations matter because as the authors show, they affect perceptions of group identification.

Future work should more explicitly consider how emotions as well as different levels of inequality might modify the processes described.

This chapter highlights the need to consider both the form of exchange and the relative stability of exchange when considering the fairness perceptions and group identification of disadvantaged individuals.

To use a behavioral measure of legitimacy to study how differences in negotiating style and status affect the legitimacy of persons in high-power network positions. Predictions include (1) that powerful network actors who negotiate using a pro-group style will maintain legitimacy better than will those who negotiate selfishly and (2) those higher in status will be granted more legitimacy both before and after exchange than powerful actors lower in status.

An experimental study in which participants were connected in networks to powerful partners who were portrayed as consistently high or low on several status characteristics. Both before and after exchange, participants evaluated partners on a number of dimensions and made decisions on whether to vote to join a coalition to take the partner's power away, a direct behavioral indicator of legitimacy.

High-power partners lost legitimacy over the course of exchange irrespective of whether they negotiated in pro-group or selfish ways, and irrespective of whether they were high or low in status. This effect was pronounced for partners who negotiated selfishly. Although partner status predicted legitimacy prior to exchange, legitimacy evaluations after exchange appeared entirely driven by the partner's negotiating style (how the power was used) and not by status.

The project introduces a new behavioral measure of legitimacy that correlated highly with self-report items and should be of value in future research. The study also indicates promising directions for future research that might disentangle effects of power and status on legitimacy, along with adjudicating among explanations for why this study did not find status effects on legitimacy.

While classical exchange theorists excluded bargaining from the scope of their theories, most contemporary theorists have done the opposite, concentrating exclusively on negotiated exchanges with binding agreements. This chapter describes the theoretical logic and empirical results of a new program of research comparing the effects of reciprocal and negotiated forms of exchange. As the work shows, fundamental differences between the two forms of exchange affect many of the processes addressed by current theories. Reciprocal exchanges produce weaker power use, greater feelings of trust and affective commitment, and stronger perceptions of the partner’s fairness than equivalent negotiated exchanges. I discuss the implications of this work for theories of exchange and social interaction, and outline future directions for the next phase of the research program.

The purpose of this paper is to conduct an exploratory study that will assist supply chain firms in the development of partner satisfaction, flexibility, and supply chain performance. The authors examine how the interaction of information exchange, partner interaction, knowledge sharing and flexibility as mediated through partner satisfaction effectuates firm performance. The goal of this research is to answer the supply chain managers’ need to better understand where to invest their time and effort to get improved firm performance.

The model was tested with panel data from 105 experienced, US-based supply chain managers. Structural equation modeling using partial least squares approach was utilized to conduct the analysis.

The results provide crucial evidence that simple information exchange among supply chain partners does not result in improvements in firm performance or partner satisfaction, but, when mediated through the flexibility construct, it does. Further, the use of integration tools has a moderating effect on the relationship between flexibility and firm performance. The results suggest that working closely with supply chain partners helps ensure improved relationship satisfaction, and can reduce issues that can impact firm performance.

The empirical research presented requires additional validation though larger sample data from supply chain managers.

This study stresses on the importance of managers using information exchange, partner interaction, and knowledge sharing as a means of improving their firm’s indirect influence on firm performance through flexibility and integration tools.

This is one of the few studies in the supply chain literature that integrates flexibility as a mediator variable. Additionally, this study introduces the new construct of integration tools to the supply chain literature.

Retailers are increasingly forced to enter negotiations with new suppliers and have less time to develop trusting relationships prior to awarding sourcing contract. Such supplier negotiations are often guided by self‐interest‐seeking behavior. However, not all exchange partners behave opportunistically when given the opportunity and little is known about how and when opportunism actually occurs. This research seeks to develop a multidimensional perspective of exchange partners' Machiavellianism that reveals different types of opportunistic motivations in exchange relationships and to extend knowledge of socialization as a safeguard by investigating the efficacy of signaling trustworthiness as a means of reducing the risk of opportunistic behavior in exchanges with partners with different moral standards about opportunism.

The data consist of a sample of 259 purchasing professionals who are members of the Institute of Supply Chain Management and report on their negotiation behavior. Moderated regression analysis is used to analyze the research model.

The results show that opportunistic behavior originates from a multidimensional set of moral convictions held by an exchange partner. Interestingly, signaling a trusting relationship only reduces opportunistic behavior that is due to deceit, but is not effective against cynicism or flattery.

To date, retail managers have addressed potential partner opportunism by designing contractual agreements or by implementing structural and social safeguards. Little is known about how these approaches address partner‐specific causes of opportunism. The study demonstrates the extent to which trust, a popular socialization mechanism in retailing, moderates the degree to which an exchange partner's moral conviction leads to opportunism.

The purpose of this study is to evaluate the performance effects of information exchange by observing actual information exchange between industrial trading partners. Information exchange facilitates coordination through sharing both order cycle and enhanced information. Increased exchange may lead to closer relationships with the expectation of improved performance. This study moves away from perceived measures of information exchange and firm performance by integrating two datasets: one capturing historical firm performance and the second capturing electronic information exchange data.

Quantitative data of electronic information exchange between firms are observed and compared with operational performance results. Longitudinal regression analyses are conducted using data gathered from an electronically‐mediated industrial exchange network. This unique dataset provides distinct insights into the application and performance outcomes related to information exchange.

Results show that information characteristics vary by firm and the position of the firm within the supply chain. Manufacturers benefit from exchanging more basic information and from stability in their trading partner portfolio. Retailers enhance performance when there is more turnover in their trading partner portfolio and when information is exchanged reciprocally with suppliers.

Results from this study provide insight into the potential performance outcomes of sharing information within industrial relationships. The study demonstrates how greater information exchange changes the nature of supply chain relationships. Closer supply chain relationships may improve firm performance, but the extent of this varies based on the firm's position within its supply chain. Consequently, firms should consider the strategic implications of the way in which they exchange information with their trading partners.

This study contributes to the literature by identifying and testing specific information characteristics using actual observed exchanges of information between firms. The data set supports the measurement of information exchange between multiple firms and trading partners which allows for testing at a level of granularity beyond existing studies.

This paper aims to understand the factors of the exchange relationship that influence a target-partner’s decisions to adopt virtual governance strategies.

Hypotheses are tested using an online panel of 259 key informants from manufacturing firms that sell goods to retailers. Data are analyzed using structural equation modeling.

The study confirms the hypotheses that the target partner’s trust in the initiating partner is a significant driver of supply chain management system (SCMS) adoption intention. While trust fully mediates the adverse effects of technological uncertainty on adoption intentions, asset specificity directly influences both trust and adoption intentions. Additionally, the initiating-partner’s incentive orientation mitigates these effects and encourages SCMS adoption.

This paper contributes to the study of virtual governance and interorganizational adoption decisions in two primary ways. First, it elucidates the relationship between transaction costs and relational norms. Second, it examines the role that the shadow of past incentives has on the target-partner’s decisions to electronically integrate with the initiating partner.

The findings from this study contribute to the virtual governance and interorganizational technology adoption literature by demonstrating the relevance of characteristics of the exchange relationship in the target-partner’s decision to adopt the SCMS technologies necessary for electronic integration. This study provides a better understanding of the function of transaction costs and relational norms that paves the way for further exploration of the choice to adopt virtual governance strategies.

Given that SCMSs enable virtual governance, the findings of this study make important contributions to understanding how transactional and relational elements of the exchange relationship influence a target-partner’s decisions to participate in vertical control strategies with an initiating-partner.

This study aims to explore the overall relationship between a boundary spanner and a partner firm, i.e. boundary spanner closeness to partner firm. Drawing on consumer-service provider relationship literature and the tripartite model of affect-behavior-cognition, the authors identify three key dimensions of such closeness, namely, boundary spanners’ relational ties, customer-specific capabilities and accommodative behaviors, and examine their effects on exchange outcomes in turbulent versus stable environments.

The paper examines the effects of three dimensions of boundary spanner closeness on various exchange outcomes (i.e. retailers’ cooperation, satisfaction and willingness for investment) using two industries as exemplars, characterized by distinct levels of environmental turbulence – the retailing networks of a major cell phone company and a petroleum company in China.

The results indicate that the three dimensions individually and jointly affect exchange outcomes and the interplay of customer-specific capabilities and relational ties affect exchange outcomes differently across industry turbulence.

The existing literature lacks a comprehensive understanding of the function of boundary spanners, which serve as a key relational interorganizational governance component. By identifying three key dimensions of boundary spanner closeness and examining their effectiveness in promoting exchange outcomes, this study advances the understanding of the role of boundary spanners in interorganizational governance.

Industry practice shows that buyer-supplier partnerships are negatively influenced by zero-sum pie-sharing competition. Interfirm rivalry vis-à-vis a fair financial distribution of the mutually generated partnership pie is a growing source of concern for firms because fairness has a direct effect on the competitiveness of a partnership. This study aims to examine the consequences of fairness in pie-sharing within buyer-supplier new product development (NPD) partnerships on product-innovation, product-quality and product-cost, as well as the mediating role of opportunism.

The empirical analyses are grounded on data from 147 NPD partnerships between Tier-1 suppliers and automotive manufacturers, using structural equation modeling with SPSS AMOS.

Findings indicate that pie-sharing fairness significantly influences the partnership’s ability to increase NPD effectiveness and efficiency. Moreover, unfairness in sharing the mutual pie showed to promote harmful opportunism, which negatively mediates the relationship between pie-sharing fairness and NPD performance. To control partners’ fairness perception in the first place, the analysis revealed three factors that affect pie-sharing fairness significantly, i.e. relationship induced financial performance, behavioral tension and interfirm dependency.

Exchange relationships are built on economic and social components, both of which can be combined within the construct of pie-sharing fairness. Firms must take an interest in their exchange partner’s equitable share of the mutually generated partnership pie, as pie-sharing fairness can be used to promote determinants of effectiveness and efficiency of their mutual NPD project. In a two-sided mutually contingent exchange behavior, the firm’s own welfare must be regarded as an interorganizational overlap with the partner’s, which can be optimized only by mutual efforts.

The purpose of this paper is to investigate the mediating roles of cultural sensitivity and information exchange in the impact of market orientation on relationship quality.

Using a survey data set collected from a systematic sample of 297 Vietnamese exporters, the authors tested a model that depicts the direct and indirect effects of market orientation on relationship quality.

The authors found that market orientation has both direct and indirect effects, mediated by cultural sensitivity and information exchange, on relationship quality.

A major limitation of this study is the investigation only one side of the dyad, the exporter. Future research should use data collected from two sides of the dyad, the exporter and the importer.

The results of this study suggest that, exporters, who want to maintain high quality relationships with importers, should adopt a market-oriented strategy to enhance the degree of cultural sensitization to as well as the level of exchange of information with their importers.

This study enhances the understanding of predictors of relationship quality in export markets by confirming the mediating role of cultural sensitivity and information exchange in the impact of market orientation on relationship quality.