Buyer abusive behavior and supplier welfare: An empirical study of truck owner‐operators
Kim,Seongtae Chae,Sangho Wagner,Stephan M. Miller,Jason W.
Kim,Seongtae
Chae,Sangho
Wagner,Stephan M.
Miller,Jason W.
Abstract
The increase in stakeholder pressure for responsible business draws closer public scrutiny when buyers use their power advantage illegitimately to exploit weaker suppliers. In this study, we develop the novel concept of buyer abusive behavior (BAB) and examine BABs exerted by buyers of trucking services against truck owner–operators as their suppliers. This focus is timely given the recent emergence of online platform businesses where precarious work and associated worker abuse are prevalent. Building on the theory of power imbalance and risk-taking behavior, we elaborate on how BAB can jeopardize supplier welfare that comprises performance and safety. The analysis of the data pertaining to 260 owner–operators in South Korea shows that contract-unrelated BAB (e.g., buyer's request for money and valuables) harms supplier performance and supplier safety while contract-related BAB (e.g., buyer's unfair subcontract price decision) does not. Furthermore, the positive relationship between supplier performance and supplier safety is attenuated by contract-related BAB but reinforced by contract-unrelated BAB. We contribute to the growing body of the literature on decent work by exposing BAB as a major detriment to supplier worker welfare and laying the groundwork for the development of theories on power abuse and working conditions in multi-tiered subcontracting work environments.
Description
Funding Information: The authors are grateful to the editors, associate editor, and anonymous reviewers for their invaluable comments and suggestions that improved the quality of this paper. Moreover, the authors would like to thank Arim Park for her support in data collection. The authors also wish to acknowledge the support of interviewees and to thank participants in conference sessions at the annual meetings of EurOMA and EDSI for their helpful discussion. Any errors or omissions are our responsibility. Publisher Copyright: © 2022 The Authors. Journal of Supply Chain Management published by Wiley Periodicals LLC.
Date
2022-10
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Keywords
buyer abusive behavior, multi-tiered subcontracting, owner–operator, prospect theory, supplier welfare, trucking industry, SDG 8 - Decent Work and Economic Growth, SDG 16 - Peace, Justice and Strong Institutions
Citation
Kim, S, Chae, S, Wagner, S M & Miller, J W 2022, 'Buyer abusive behavior and supplier welfare: An empirical study of truck owner‐operators', Journal of Supply Chain Management, vol. 58, no. 4, pp. 90-111. https://doi.org/10.1111/jscm.12285