TY - JOUR
T1 - Beyond risk attitude
T2 - Unpacking behavioral drivers of supply chain contracts
AU - Goudarzi, Fatemeh (Sahar)
AU - Olaru, Doina
AU - Bergey, Paul
PY - 2023/1
Y1 - 2023/1
N2 - This paper reports on experiments conducted to investigate managers' choice between long-term contract (LTC) and short-term contract (STC) in a two-tier supply chain, accounting for risk and individualism. Results of logistic regression show when market uncertainty elevates, risk-averse individuals prefer STC, which enables more control over order quantity, while risk-tolerant decision-makers prefer LTC. Individualist decision-makers prefer LTC, confirming the positive association between individualism and risk tolerance. LTC selection is less likely to occur when both demand and wholesale price variability increase. Latent Growth Modeling (LGM) highlighted the impact of behavioral drivers on order quantity and its rate of change over time. While high risk tolerance is associated with low initial quantity placement, 'individualism' is associated with a high initial quantity. Females placed higher initial quantities and had a decreasing rate of change over time.
AB - This paper reports on experiments conducted to investigate managers' choice between long-term contract (LTC) and short-term contract (STC) in a two-tier supply chain, accounting for risk and individualism. Results of logistic regression show when market uncertainty elevates, risk-averse individuals prefer STC, which enables more control over order quantity, while risk-tolerant decision-makers prefer LTC. Individualist decision-makers prefer LTC, confirming the positive association between individualism and risk tolerance. LTC selection is less likely to occur when both demand and wholesale price variability increase. Latent Growth Modeling (LGM) highlighted the impact of behavioral drivers on order quantity and its rate of change over time. While high risk tolerance is associated with low initial quantity placement, 'individualism' is associated with a high initial quantity. Females placed higher initial quantities and had a decreasing rate of change over time.
KW - behavioral Supply management
KW - Supply chain contracts
KW - Risk attitude
KW - Individualism
KW - Experimental studies
KW - Latent growth modeling
KW - LONG-TERM
KW - NATIONAL CULTURE
KW - PROCUREMENT STRATEGIES
KW - PROSPECT-THEORY
KW - PERFORMANCE
KW - INDIVIDUALISM
KW - PREFERENCES
KW - UNCERTAINTY
KW - MANAGEMENT
KW - IMPROVEMENT
UR - http://www.scopus.com/inward/record.url?scp=85140402723&partnerID=8YFLogxK
U2 - 10.1016/j.ijpe.2022.108678
DO - 10.1016/j.ijpe.2022.108678
M3 - Article
SN - 0925-5273
VL - 255
JO - International Journal of Production Economics
JF - International Journal of Production Economics
M1 - 108678
ER -