RESOURCE DEPENDENCE THEORY, FIRM PERFORMANCE AND PRODUCERS-SUPPLIERS RELATIONSHIPS

Abstract

The purpose of this study is to research how resource dependence parameters of business organizations influence the producer-supplier relationships and firm performance. Moreover, how the relational norms between producers and suppliers affect the firm performance, from the viewpoint of resource dependence and transaction costs theories. The study was conducted with the data of the face-to-face and individual surveys carried out with the managers of business organizations (314 participants) employed in different sub-sectors in the manufacturing sector, between May - December 2017. The validity and reliability of the scales were studied with exploratory and confirmatory factor Analyses. The hypotheses were tested with the support of the Structural Equation Modelling technique. As a result of the study, it is observed that Resource dependency parameters have a statistically significant impact on relational norms between producer-supplier. Solidarity from producer-supplier relational norms, mutuality, and relational focus variables meaningly influence the firm performance. Moreover, asset specificity of resource dependency parameters meaningly influences the mutuality. Accordingly, Resource dependence parameters and the relational norms between producer and supplier explain 38% of the variance in firm performance. (C) 2019 Published by Future Academy www.FutureAcademy.org .UK