A global examination of institutional effects on B2B cooperation

Sandra Simas Graça, James M. Barry, Virginie P. Kharé, Yuliya Yurova

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose: This paper aims to explore the effects of institutional environments across developed and emerging markets on buyer–supplier cooperation. It empirically examines a Business-to-Business relational exchange model of trust-building, commitment and cooperative behaviors within firms in the USA and countries such as Brazil, Russia, India and China (BRIC). Design/methodology/approach: A conceptual model and accompanying research hypotheses are tested on a sample of buyers from the USA (n = 169), Brazil (n = 110), China (n = 100), Russia (n = 100) and India (n = 100). Structural equation modeling is used to test the relationships in the model. Findings: Findings suggest that approaches to achieve successful cooperation vary across countries and depend on the interaction between formal and informal institutions present in each country. Results show that buyers from India and China place relatively greater emphasis on conflict resolution and commitment, whereas buyers from Brazil and Russia rely more on trust in their efforts to create cooperative relationships. For US buyers, formality and quality of communication and functional benefits are key factors in fostering trust, commitment and cooperation. Practical implications: A conceptual framework is advanced that extends traditional westernized and China-only perspectives of relational exchanges to a more universal context. Results suggest that suppliers understand how their buyers’ country-level institutional environment shapes their partnership legitimacy and relational motivations at the transaction level. Originality/value: To the best of the authors’ knowledge, this study is the first to examine buyer–supplier relational exchanges through the lenses of transaction cost, social exchange and institutional theories using the USA and BRIC nations as proxies for examination of institutional effects.

Original languageEnglish
Pages (from-to)1806-1819
Number of pages14
JournalJournal of Business and Industrial Marketing
Volume36
Issue number10
DOIs
StatePublished - Oct 15 2021

ASJC Scopus Subject Areas

  • Business and International Management
  • Marketing

Keywords

  • B2B relationships
  • BRIC
  • Commitment
  • Conflict resolution
  • Cooperation
  • Emerging markets
  • Institutional governance
  • Relational exchanges
  • Relationship marketing
  • Trust
  • Trust and commitment

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