Assistance Versus Pressure: A Theoretical Model and Empirical Assessment of Alternate Supply Management Approaches

Transaction cost and relational governance theories suggest that the provision of assistance and the application of pressure serve as two countervailing supply management tactics that buyers may adopt to influence the behaviors of their suppliers. Whereas assistance embraces contemporary SCM orientation, pressure is largely consistent with an arms-length approach to supplier management. While extant theory suggests that these approaches may be incompatible, our interviews with supply managers suggest otherwise. To gain further insight, we develop a four-stage causal model in which we consider the antecedents and relational consequences to buyers’ simultaneous use of assistance and pressure tactics. Using survey response data from direct material suppliers, we find that both supplier and buyer dependence affect buyers’ adoption of pressure and assistance tactics. Further, results suggest that buyers’ provisions of assistance significantly affect suppliers’views of customer relationship importance and, subsequently, the benefits that suppliers convey to buying firms