Linking Buyers’ Choice of Governance Mode to Their Exercise of Power

• Main Authors: BENJAMIN SANDOVAL, 葛書亞
• Other Authors: YU, HUNG-LIANG
• Format: Others
• Language: en_US
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/99225525681353625331

碩士 === 銘傳大學 === 國際企業學系碩士班 === 105 === The Transaction Cost Theory discusses the importance of governance in a relationship (Williamson, 1975). Nooteboom (2002) applies governance to the social context, where trust and control become the basic modes to govern a relationship. Power as a relational factor can be used under a negative basis such as coercive power, or in a positive basis such as non-coercive power. This research tries to consider how buyers’ choice of governance modes can lead to their exercise of powers, and hence their perception of suppliers’ opportunistic behavior. The questionnaires were sent to the purchasing departments of the members of Taiwan Electrical and Electronic Manufactures Association (TEEMA). The effective response rate is 12.1%. The results show that the exercise of coercive power is only due to the choice of the unilateral control mode, while the exercise of non-coercive power is only due to the choice of trust mode. The extent of combination of the two governance modes by the buyer can explain their exercise of power. That is, the buyer tends to exercise more coercive power if it is more toward unilateral control, while more non-coercive power if it is more into trusty suppliers.