In a supply chain with one supplier and multiple distributors, distributors’ collusive bargaining behavior (CBB) is widespread and may have harmful consequences. CBB refers to distributors representing a common supplier negotiating with the supplier together to pursue common interests or self-interest; however, this topic is understudied in the supply chain literature. This study investigates the determinants of a distributor’s engagement in CBB, its effect on distributor opportunism and the contingent role of the market environment.
This research collected survey data from 327 Chinese distributors and analyzed the data using hierarchical regression analyses.
First, exploitative supplier leadership and distributor network embeddedness are the key factors for distributor CBB, whereas asymmetric asset specificity in the distributor’s favor is an inhibitor. Second, there is a positive link between distributor CBB and distributor opportunism, which is weakened by market uncertainty.
This study offers a fresh perspective on bargaining behavior in a supply chain network context and helps to gain a comprehensive understanding of CBB.
