Performance implications of peer monitoring among suppliers

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Original languageEnglish
Number of pages21
Journal / PublicationAsia Pacific Journal of Marketing and Logistics
Online published19 Sep 2022
Publication statusOnline published - 19 Sep 2022


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.

Research Area(s)

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