Linking exchange governance with supplier cooperation and commitment : a case of container terminal operations

Studying the suppliers of a global buyer, we find that relationship stability is positively associated with the use of explicit and implicit contracts in their buyer-supplier relationship (BSR). We also find positive association of implicit contract with supplier cooperation and commitment as well as the influence of business volume in the BSR. Grounded in transaction cost economics and social exchange theory, these findings highlight the need to develop mutual understanding, beyond designing specific contracts, for developing cooperative and committed suppliers in a BSR.