Moderating Effect of Buyer-Supplier Trust on the Relationship between Outsourced Formal Contracts and Supplier Delivery Performance: An Empirical Study of Public Sector Procurement
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Date
2012
Journal Title
Journal ISSN
Volume Title
Publisher
International journal of business and social science
Abstract
This study examines the moderating effect of buyer-supplier trust on the relationship between outsourced formal
contracts and supplier delivery performance in the domain of public sector procurement. In so doing, we extend
the paradigm that formal contracts and relational governance mechanism function as complements rather than
substitutes. Using a cross sectional data from a survey of 612 staff that are involved in managing outsourced
contracts in Ugandan public sector, Structural Equation Modelling results support 10 of the 14 hypotheses thus,
demonstrating the fundamental preposition of complementarity between formal contracts and relational
governance mechanisms. Also, findings revealed that well-structured outsourced formal contracts have a
significant positive influence on buyer-supplier trust and supplier delivery performance.However, the path
coefficient for the interactioneffect between change characteristics and buyer-supplier trust was initially
hypothesised to positively influence supplier delivery performance but did not.The use of case studies and
additional surveys in future research might help to explain this phenomenon. Although the two constructs of
buyer-supplier trust and supplier opportunism are robust and sufficiently represent the relational aspects, the
multidimensional nature of relational practises can be investigated further. This study has managerial and policy
implications that are also discussed in this paper.
Description
Keywords
Outsourced formal contracts, Relational governance, Supplier delivery, Performance
Citation
Ahimbisibwe, A., Nangoli, S., & Tusiime, W. (2012). Moderating effect of buyer-supplier trust on the relationship between outsourced formal contracts and supplier delivery performance: An empirical study of public sector procurement. International journal of business and social science, 3(17).
URI
https://www.researchgate.net/profile/Arthur-Ahimbisibwe-2/publication/328980692_Moderating_Effect_of_Buyer-Supplier_Trust_on_the_Relationship_between_Outsourced_Formal_Contracts_and_Supplier_Delivery_Performance_An_Empirical_Study_of_Public_Sector_Procurement_International_Journa/links/5bee75774585150b2bba1fb3/Moderating-Effect-of-Buyer-Supplier-Trust-on-the-Relationship-between-Outsourced-Formal-Contracts-and-Supplier-Delivery-Performance-An-Empirical-Study-of-Public-Sector-Procurement-International-Journa.pdf
https://nru.uncst.go.ug/xmlui/handle/123456789/2502
https://nru.uncst.go.ug/xmlui/handle/123456789/2502