TY - JOUR
T1 - Expanding the boundaries of buyer-supplier agency problems
T2 - Moving from dyad to triad
AU - Yang, Yang S.
AU - Choi, Thomas Y.
AU - Carter, Craig R.
AU - Yin, Rui
N1 - Funding Information:
This research is granted by the Institute of Supply Management.
Publisher Copyright:
© 2022
PY - 2022/6
Y1 - 2022/6
N2 - Extant agency theory addresses dyads consisting of a principal and an agent. It informs us about how to overcome agency problems in the buyer-supplier relationship. In this conceptual paper, we propose a theoretical argument that if we expand the boundary conditions from dyads to triads, we find new solutions to dealing with agency problems. To the buyer-supplier dyad, we add the supplier's supplier, the buyer's other supplier, the supplier's other customer, and the buyer's customer. As such, we consider four types of triads in supply chains and propose that the buyer as the principal could reframe agency problems with the focal supplier by moving to one of these triads. In particular, we investigate alternative mechanisms that may reduce the level of goal incongruence, information asymmetry, and power asymmetry in the buyer-supplier relationship. Our conceptualization suggests that supply managers should look outside the buyer-supplier dyad for additional opportunities to resolve agency problems.
AB - Extant agency theory addresses dyads consisting of a principal and an agent. It informs us about how to overcome agency problems in the buyer-supplier relationship. In this conceptual paper, we propose a theoretical argument that if we expand the boundary conditions from dyads to triads, we find new solutions to dealing with agency problems. To the buyer-supplier dyad, we add the supplier's supplier, the buyer's other supplier, the supplier's other customer, and the buyer's customer. As such, we consider four types of triads in supply chains and propose that the buyer as the principal could reframe agency problems with the focal supplier by moving to one of these triads. In particular, we investigate alternative mechanisms that may reduce the level of goal incongruence, information asymmetry, and power asymmetry in the buyer-supplier relationship. Our conceptualization suggests that supply managers should look outside the buyer-supplier dyad for additional opportunities to resolve agency problems.
KW - Agency theory
KW - Buyer-supplier relationship
KW - Conceptual theory building
KW - Inter-organizational governance
KW - Supply chain triad
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U2 - 10.1016/j.pursup.2022.100749
DO - 10.1016/j.pursup.2022.100749
M3 - Article
AN - SCOPUS:85128271028
SN - 1478-4092
VL - 28
JO - Journal of Purchasing and Supply Management
JF - Journal of Purchasing and Supply Management
IS - 3
M1 - 100749
ER -