Abstract:Purpose – 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.
Design/methodology/approach – This research collected survey data from 327 Chinese distributors and analyzed the data using hierarchical regression analyses.
Findings – 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.
Originality/value – This study offers a fresh perspective on bargaining behavior in a supply chain network context and helps to gain a comprehensive understanding of CBB.
