Supplier Opportunistic Behavior, Management Control And Supplier Relationship Capital

In modern economic activities, supplier is the extension of a company, the success of an enterprise is not only inseparable from their own efforts, but also on the performance of suppliers. As companies increasingly focus on enhancing their core competitiveness of enterprises and more closely ties with their suppliers, supplier management become more important. In the management of suppliers, suppliers’ opportunistic behavior is widespread, threatening the development of bilateral relations, suppliers may obtain short-term benefits from opportunistic, but from the long-term development, which will undermine the business and the interests of both partners. Since the presence of opportunistic behavior, there are continuously suspicion and constantly temptation between enterprises and suppliers, this is not conducive to the formation and development of relational capital between enterprises and suppliers. Therefore, enterprises should control the suppliers’ opportunism behavior through formal or informal control methods to achieve the goals of enhancing strategic supplier relationship capital.Quality and safety incidents of dairy industry have erupted successive years, which not only bring devastating blow to dairy companies, but also threatens the lives and safety of consumers. This stimulates discussion about improving quality monitoring of raw milk and improving supplier relations among people. In this context, this paper focuses on the supplier opportunistic behavior management control, from the perspective of management control, analyzes in-depth how to control the supplier’s opportunistic behavior and how to enhance the strategic supply relationship capital by restraining opportunistic behavior.Based on the theoretical analysis this paper makes theoretical assumptions, through the dairy industry research and data collected, using statistical analysis software SPSS19.0and AMOS17.0to be descriptive statistics, reliability testing, validity testing for empirical analysis. Finally, provide the dairy companies with recommendations to control the opportunistic behavior of suppliers and to improve relations with strategic raw milk supplier relationships, promoting the formation of strategic supply relationship capital.This thesis includes the following five parts:The first part is the introduction. It mainly consists of the problem, the contents of the study, possible innovative, research methods and research ideas. This section introduces the topic of this article basis, the main content of the study and the use of research methods, and laid the foundation for later writing.The second part is the literature review. This part minutely reviews the domestic and foreign scholars on the research results of the opportunistic, management control and strategic supply relationships capital, and comments. The scales mentioned in this thesis later, hypotheses are summarized from the literature.The third part is the theoretical construction of the hypothesis. This thesis is the use of transaction cost theory and social exchange theory interpretation of opportunistic, management control and strategic supply relationships capital, and hypotheses on the basis of the discussion in the preliminary. At this point, the basic theoretical concept model is presented.The fourth part is for the empirical analysis of the data. This section describes how the questionnaire is designed firstly, and then detailed inspection of the items of the questionnaire reliability and validity, finally, the use of structural equation test three hypotheses proposed in this thesis.The fifth part is the conclusion and recommendations. At first, we interpret the output of the structural equation results, empirical evidence suggests that the text in assumptions are different verification; Second, using the empirical results, combined with the actual situation of China’s dairy industry to put forward a number of proposals to control supplier opportunistic behavior and enhance strategic supply relationship capital; Finally, a review of the limitations of this paper, in order to further deepen study.