When Good Business Relationships Go Bad: A Quantitative Analysis of Dark Side Variables in Mature Supply Chain Relationships

Abstract

This quantitative study examines the dark side effect of relationship variables on relationship financial performance and likelihood of relationship termination, moderated by relationship quality. The study tests propositions found in Social Exchange Theory. The cross-sectional survey was conducted with a population of logistics purchasers and providers. Three of ten hypotheses were supported; contributing evidence supporting the positive effect of relationship quality on the path between some relationship variables and performance, thereby corroborating Social Exchange Theory. The other hypotheses support the existence of the dark side effect of some relationship variables. Theoretically, this study strengthens the argument of Social Exchange Theory, while simultaneously supporting the earlier theoretical paths of Social Exchange Theory. Post-hoc testing illuminates the non-linear relationship of some of the independent variables, indicating the point of diminishing returns from earlier conceptualizations of Social Exchange Theory, and showing boundary conditions for the existing conceptualization of Social Exchange Theory

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