Governance mechanisms and buyer supplier relationship in Tunisian exporting SMEs
by Meryem Bellouma
International Journal of Corporate Governance (IJCG), Vol. 3, No. 1, 2012

Abstract: This study seeks to understand the effect of transactional and relational governance mechanisms on opportunism induced by the buyer supplier exchange's ties. Using panel data of 386 Tunisian export companies between 2003 and 2008, the analysis shows that transactional as well as relational governance mechanisms are negatively related to the opportunistic behaviour of the customer. In order to focus on internal corporate characteristics, the level of debt and the size of the buyer are controlled. The findings support the role of contracts as formal governance tool in reducing inter-firm opportunism which corroborates transaction cost economics. They also confirm some main notions in social exchange theory. The role of trust as relational mechanism in governing the buyer-supplier relationship has been verified. Finally, the results of this paper sustain the complementarity view toward relational and transactional governance mechanisms.

Online publication date: Fri, 10-Apr-2015

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