Podcast
Questions and Answers
A higher degree of trust and commitment in buyer-supplier relationships always leads to opportunism.
A higher degree of trust and commitment in buyer-supplier relationships always leads to opportunism.
False
Commitment in buyer-supplier relationships is a crucial factor in achieving common goals and efforts.
Commitment in buyer-supplier relationships is a crucial factor in achieving common goals and efforts.
True
Frequency of communication between buyers and suppliers is based on the cost they incur in the relationship.
Frequency of communication between buyers and suppliers is based on the cost they incur in the relationship.
False
The duration of a relationship between buyers and suppliers is unaffected by the level of trust.
The duration of a relationship between buyers and suppliers is unaffected by the level of trust.
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Reputation is not a significant factor in supplier selection and buyer-supplier relationships.
Reputation is not a significant factor in supplier selection and buyer-supplier relationships.
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A longer and closer buyer-supplier relationship leads to a decrease in trust and cooperation.
A longer and closer buyer-supplier relationship leads to a decrease in trust and cooperation.
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The relationship duration between buyers and suppliers does not affect their willingness to share risks and rewards.
The relationship duration between buyers and suppliers does not affect their willingness to share risks and rewards.
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The supplier’s reputation has no impact on their relationship with buyers in supply chains.
The supplier’s reputation has no impact on their relationship with buyers in supply chains.
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Study Notes
Trust and Commitment
- Higher degree of trust and commitment in buyer-supplier relationships reduces opportunism and promotes inter-organizational cooperation.
- Commitment leads to the creation of a more sustainable business organization and interdependent relationships between buyers and suppliers.
Supply Chain Performance
- Degree of commitment in buyer-supplier relationships affects supply chain performance.
- Commitment helps in achieving common goals and efforts between buyers and suppliers.
Frequency of Communication
- Frequency of communication refers to the degree of contact and interaction between buyers and suppliers.
- The frequency of communication is based on the benefits perceived by both parties in the relationship.
Relationship Duration
- Duration of relationship reflects the level of experience gained, developed behaviors and norms, and investment in relationship-specific assets.
- Trust is a key factor in determining the duration of the relationship between buyers and suppliers.
Consequences of Trust
- As trust increases, buyers and suppliers act collectively, investing in each other's capabilities.
- Trust leads to joint problem-solving, design of new products, and shared planning.
- Trust results in a longer and closer relationship, enabling parties to share risks and rewards.
Reputation
- Reputation is a main selection criterion and characteristic of suppliers in buyer-supplier relationships.
- Reputation is an intangible asset that reflects the extent to which suppliers are fair, honest, and concerned with their buyers.
- Positive reputation raises the degree of buyer's trust, increases willingness to lengthen the relationship duration, and enhances commitment to the relationship.
Interrelationship between Factors
- Reputation is interrelated with trust, commitment, and relationship duration.
- Positive reputation reinforces trust, commitment, and relationship duration.
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Description
This quiz assesses understanding of the impact of commitment and communication on supply chain performance and buyer-supplier relationships.
