Performance implications of peer monitoring among suppliers

Qinfang Hu, Jing Hu, Zhilin Yang*

*Corresponding author for this work

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

4 Citations (Scopus)
131 Downloads (CityUHK Scholars)

Abstract

Purpose - What are the performance implications of peer monitoring in a multiple-supplier context? Grounded in agency and social exchange theories, this study aims to examine how, when, and why peer monitoring works as a crucial control mechanism to reduce opportunism among suppliers.
Design/methodology/approach - A conceptual model and research hypotheses are tested using survey data from 246 respondents in 82 supplier groups.
Findings - Results suggest that peer monitoring is related positively to perceived deterrence (as mediator) and negatively to opportunism, whereas the mediated relationship is moderated negatively by generalized reciprocity and positively by balanced reciprocity and negative reciprocity.
Originality/value - This study introduces the application of peer monitoring into business-to-business research and shows how it reduces opportunism. Its findings have implications for manufacturers on how to use peer monitoring to control opportunism among multiple suppliers.
© Emerald Publishing Limited
Original languageEnglish
Pages (from-to)1618-1638
JournalAsia Pacific Journal of Marketing and Logistics
Volume35
Issue number7
Online published19 Sept 2022
DOIs
Publication statusPublished - 27 Jun 2023

Funding

The authors gratefully acknowledge the grants from the National Natural Science Foundation of China (projects 71702053 and 72072152), Natural Science Foundation of Hunan (2021JJ30222), Philosophic and Social Science Foundation of Hunan (17YBA126), Education Department Foundation of Hunan (21B0529), City University of Hong Kong (CityU SRG 7005478 and 7005791) and the Research Grant Council of Hong Kong SAR (CityU 11502218) for their financial support.

Research Keywords

  • Balanced reciprocity
  • Generalized reciprocity
  • Negative reciprocity
  • Opportunism
  • Peer monitoring
  • Perceived deterrence

Publisher's Copyright Statement

  • COPYRIGHT TERMS OF DEPOSITED POSTPRINT FILE: © 2022, Emerald Publishing Limited. This AAM is provided for your own personal use only. It may not be used for resale, reprinting, systematic distribution, emailing, or for any other commercial purpose without the permission of the publisher. Hu, Q., Hu, J. and Yang, Z. (2023), "Performance implications of peer monitoring among suppliers", Asia Pacific Journal of Marketing and Logistics, Vol. 35 No. 7, pp. 1618-1638. https://doi.org/10.1108/APJML-02-2022-0158.

RGC Funding Information

  • RGC-funded

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