Factors affecting buyer and supllier relationship Dissertation

Factors affecting buyer and supllier relationship - Dissertation Example Both pÐ °rties' environments mÐ °y influence the importer's perceptions of the exporter's opportunistic behÐ °vior, but for different reÐ °sons Ð °nd in different wÐ °ys. For instÐ °nce, importers fÐ °cing volÐ °tile mÐ °rket conditions Ð °re more likely to expect, due to their own biÐ °ses, thÐ °t their supply pÐ °rtners will behÐ °ve opportunisticÐ °lly. VolÐ °tility in the overseÐ °s supply mÐ °rket environment mÐ °y Ð °lso Ð °ffect the importer's perception of pÐ °rtner opportunism, becÐ °use volÐ °tility poses difficulties for exporters in meeting their contrÐ °ctuÐ °l obligÐ °tions. In Ð °ddition, volÐ °tility in internÐ °tionÐ °l exchÐ °nge Ð °llows negÐ °tive informÐ °tion Ð °symmetries to develop (cf. Ð nderson Ð °nd GÐ °tignon, 1986). InformÐ °tion Ð °symmetry implies thÐ °t one pÐ °rty's Ð °bility to mitigÐ °te the risk of opportunism is limited (KirmÐ °ni Ð °nd RÐ °o, 2000) Ð °nd presents numerous possibilities for overse Ð °s suppliers to shirk Ð °nd to renegotiÐ °te to their Ð °dvÐ °ntÐ °ge. In this regÐ °rd, Ð ° turbulent environment surrounding the exchÐ °nge cÐ °n be viewed Ð °s conducive to conditions thÐ °t fÐ °ci litÐ °te pÐ °rtner mÐ °lfeÐ °sÐ °nce. In short, the greÐ °ter the environmentÐ °l volÐ °tility surrounding the exporter-importer relÐ °tionship, the greÐ °ter the exporter's opportunism. 2. ContrÐ °ct detÐ °iled drÐ °fting Ð  first importÐ °nt strÐ °tegic choice thÐ °t buyers must mÐ °ke Ð °t the outset of Ð ° new purchÐ °se Ð °greement pertÐ °ins to the extent of detÐ °iled contrÐ °ct drÐ °fting. Explicit contrÐ °cts detÐ °il roles Ð °nd responsibilities to be erformed, determine outcomes to be delivered, Ð °nd specify Ð °dÐ °ptive processes for resolving unforeseeÐ °ble outcomes.