Dealing with defaulting suppliers using behavioral based governance methods: an agency theory perspective

Abstract

Purpose: The purpose of this paper is to explore factors influencing the effectiveness of buyer initiated behavioral-based governance methods (BBGMs). The ability of BBGMs to improve supplier performance is assessed considering power imbalances and the resource intensiveness of the BBGM. Agency Theory is used as an interpretive lens. Design/methodology/approach: An explorative multiple case study approach is used to collect qualitative and quantitative data from buying companies involved in 13 BBGMs. Findings: Drawing on Agency Theory several factors are identified which can explain BBGM effectiveness considering power differences and the resource intensiveness of the BBGM. The data show tha..