The Dark Side of Buyer Power: Supplier Exploitation and the Role of Ethical Climates

By Martin C. Schleper, Constantin Blome, David A. Wuttke. 2017

121 citations recorded by the source corpus.

Media increasingly accuse firms of exploiting suppliers, and these allegations often result in lurid headlines that threaten the reputations and therefore business successes of these firms. Neither has the phenomenon of supplier exploitation been investigated from a rigorous, ethical standpoint, nor have answers been provided regarding why some firms pursue exploitative approaches. By systemically contrasting economic liberalism and just prices as two divergent perspectives on supplier exploitation, we introduce a distinction of common business practice and unethical supplier exploitation. Since supplier exploitation is based on power, we elucidate several levels of power as antecedents and investigate the role of ethical climate as a moderator. This study extends Victor and Cullen’s (1988) ethical climate matrix according to a supply chain dimension and is summarized in an integrated, conceptual model of five propositions for future theory testing. Results provide a frame of reference for executives and scholars, who can now delineate unethical exploitation and understand important antecedents of the phenomenon better.

Subfields: Information Systems and Management, Organizational Behavior and Human Resource Management, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/8452075fd0e8ff95e6a2ae6125725cdf37e1e98c

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Information Systems and Management

  1. Martin C. Schleper
  2. Constantin Blome

In Organizational Behavior and Human Resource Management

  1. Martin C. Schleper
  2. Constantin Blome

In Strategy and Management

  1. H. Hofmann
  2. Martin C. Schleper
  3. Constantin Blome

Citations in the corpus