1. Power Imbalance and the Dark Side of the Captive Agri-food Supplier–Buyer Relationship
- Author
-
Per Engelseth, Arnt Buvik, and Richard Glavee-Geo
- Subjects
Economics and Econometrics ,Sample (statistics) ,Supplier exploitation ,Collective action ,Microeconomics ,Buyer opportunism ,Arts and Humanities (miscellaneous) ,Great Rift ,0502 economics and business ,Opportunism ,Power imbalance ,Business and International Management ,Original Paper ,Buyer power ,05 social sciences ,VDP::Social science: 200 ,General Business, Management and Accounting ,Joint action ,VDP::Samfunnsvitenskap: 200 ,Buyer control ,050211 marketing ,Business ,Business ethics ,Unethical behaviour ,Law ,050203 business & management ,Power asymmetry - Abstract
This paper highlights the dark side of power imbalance regarding its consequences in agri-food supplier–buyer relationships. We report on findings from two studies. The first study is based on a sample of 105 key informants, while study 2 is based on a sample of 444 key informants, all from the cocoa agri-food supply market of Ghana. While the first study focuses on the antecedents of power imbalance and its consequences, the second study explores the role of cooperatives/collective action in minimizing supplier exploitation. Data from these studies were analysed using the partial least squares technique (SmartPLS). Analysis of these findings shows switching costs’ impact on power imbalance to be curvilinear, while power imbalance has a curvilinear relationship with opportunism. The negative consequences of power imbalance are further exacerbated by dependency and the lack of joint action. Furthermore, we found the negative impact of power imbalance on financial performance to be stronger for non-cooperative members than for cooperative members, while, counterintuitively, we found the positive impact of economic satisfaction on financial performance to be stronger for non-cooperative members than for cooperative members.
- Published
- 2021