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    The Impact of Psychological Contract Breaches within East-West Buyer-Supplier Relationships

    78365.pdf (388.8Kb)
    Access Status
    Open access
    Authors
    Kingshott, Russel
    Sharma, Piyush
    Sima, Herbert
    Wong, David
    Date
    2020
    Type
    Journal Article
    
    Metadata
    Show full item record
    Citation
    Kingshott, R.P. and Sharma, P. and Sima, H. and Wong, D. 2020. The Impact of Psychological Contract Breaches within East-West Buyer-Supplier Relationships. Industrial Marketing Management.
    Source Title
    Industrial Marketing Management
    DOI
    10.1016/j.indmarman.2020.03.008
    ISSN
    0019-8501
    Faculty
    Faculty of Business and Law
    School
    School of Marketing
    URI
    http://hdl.handle.net/20.500.11937/78262
    Collection
    • Curtin Research Publications
    Abstract

    The expanding role of Asian firms in global supply chains has meant that their Western counterparts need to be capable of transcending the East-West divide in their relational building efforts if they wish to successfully participate in these networks. This paper draws upon social exchange (SE) theory to integrate the exit, voice, loyalty, neglect (EVLN) typology with the psychological contract (PSYCON) literature, to examine how Australian buyer firms build and nurture relationships with their Chinese suppliers. Data from 327 Australian managers collected using an online self-administered questionnaire reveals the negative effects of PSYCON breaches towards their suppliers on neglect, voice and loyalty in the relationship. In addition, contrasting effects of neglect and voice behaviours on trust and commitment, suggest that these behaviours can help erode and build East-West B2B relationships, respectively. These findings extend research on B2B relationships and offer useful managerial insights for decision makers operating in global supply chains involving relationships between firms from Eastern and Western backgrounds.

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