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We study how informal buyer-supplier relationships in the German automotive industry affect procurement. Using unique data from a survey focusing on these, we show that more trust, the belief that the trading partner acts to maintain the mutual relationship, is associated with both higher...
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power should affect only price and not nonprice terms of a contract. In contrast, practitioners and commentators in industry … regularly invoke bargaining power to explain static and dynamic variance in nonprice contract terms. This Article unpacks and … effect of bargaining power on contract design. These include the effects of shifts in market supply and demand and the effect …
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Based on data from a comprehensive benchmarking study on buyer-supplier relationships in the German automotive industry, we show that more trust in a relationship is associated with higher idiosyncratic investment by suppliers and better part quality - but also with more competition among...
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