Today's globally competitive environment presents ample opportunity for buyers to dissolve relationships by switching suppliers. While previous studies have described supplier switching behavior based on supplier attributes and switching costs, our study leverages attribution theory to evaluate the impact of psychological contracts on supplier switching behavior. We report the results of a controlled experiment involving 265 subjects in which we manipulate three characteristics of a psychological contract breach: attribution (whether the breach was due to reneging by the supplier or a disruption), severity (whether the breach was major or minor), and timing (whether the breach was early or late in the life cycle of the exchange history). Our analysis indicates that in the context of supplier switching, buyers are affected by the attribution and severity of a breach but not by the timing. In contrast to previous experimental research in noncompetitive settings, we find that psychological contract violation mediates the relationship between breach and behavior. We further complement our primary findings with a vignette-based experiment and interview data collected from experienced managers. Our research makes an important contribution to the relationship dissolution and industrial buyer behavior literatures by providing a behavioral explanation for supplier switching and reveals the complex role of psychological contracts in supply chain exchanges.

A ccurate inventory records are key to effective store execution, affecting forecasting, ordering, and replenishment.Prior empirical research, however, shows that retailer inventory records are inherently inaccurate. Radio Frequency Identification (RFID) enables visibility into the movement of inventories in the supply chain. Using two different field experiments, the current research investigates the effectiveness of this visibility in reducing retail store inventory record inaccuracy (IRI). Study 1 used an interrupted time-series design and involved daily physical counts of all products in one category in 13 stores (8 treatments and 5 controls) of a major global retailer over 23 weeks. Results indicate a significant decrease in IRI of approximately 26% due to RFID-enabled visibility. Using an untreated control group design with pre-test and post-test, Study 2 expands the number of categories to five and the number of stores to 62 (31 treatment and 31 control stores). Results show that the effectiveness of RFID in reducing IRI varies by category (ranging from no statistically significant improvement to 81%). Results also suggest that RFID ameliorates the effects of known determinants of IRI and provide the key insight that the technology is most effective for product categories characterized by these determinants.

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There has been widespread use of auto-ID technologies for firm-side applications and operations, such as inventory control. With the increasing diffusion of smartphones, the potential to serve content to shoppers using auto-ID technologies is starting to receive interest among technology firms and retailers alike. Using a design science approach, we design and build, theorize about, and compare six shopping assistance artifacts by manipulating the hardware design-barcode scanner versus radio frequency identification (RFID) reader-and content design-product information versus product review versus both. We theorize about how these artifact conditions will compare to a control condition (no shopping assistance artifact available) across three sets of outcomes: technology adoption, security beliefs, and shopping. We tested our propositions in two experiments-wherein the task was varied: general browsing and shopping (n = 227) versus goal-directed shopping (n = 221)-conducted in a retail store laboratory. We found support for the propositions that the RFID reader was most favorably received in terms of technology adoption outcomes and shopping outcomes, although it was most negatively viewed in terms of security beliefs. We also found support for the propositions that the content design conditions (i.e., product information, product reviews, and both) were perceived favorably. In a post hoc analysis, we found a two-way interaction of hardware and content designs such that content fueled by RFID was perceived most favorably in terms of technology adoption and shopping outcomes, whereas it was most negatively viewed in terms of security beliefs. Interestingly, the two-way interaction was most pronounced in the goal-directed shopping condition such that the most positive effects were observed for RFID in combination with both product information and reviews.

Stakeholders increasingly put pressure on firms to ensure their suppliers' adherence to corporate social responsibility principles and standards. A firm's supplier monitoring activities (SMA) are, thus, central to achieving supply chain transparency. In an effort to help build a business case for SMA, this research explores the effect of SMA disclosures on consumers' attitude toward the firm and purchase intention. In so doing, we also examine how consumer attitude and purchase intention vary as a function of SMA disclosure characteristics. The results of three behavioral studies reveal more positive consumer attitude and higher purchase intention when a firm discloses that its supplier monitoring extends to lower‐tier suppliers (SMA depth) and the firm monitors its lower‐tier suppliers directly rather than relying on its first‐tier suppliers or third parties to do so (lower‐tier supplier monitoring mechanism). Greater SMA breadth—monitoring both suppliers' social and environmental activities—in turn, is not associated with more positive consumer attitude and higher purchase intention. Further, attitude toward the firm mediates the relationship between SMA disclosure characteristics and purchase intention. Collectively, these findings underline that consumers value firms' SMA and point toward an economic rationale for a firm's transparency regarding its supplier monitoring efforts.

Previous experimental research demonstrates that inefficient replenishment decision making in the supply chain can be caused by specific judgment and decision biases. Based on the literature we use controlled experiments involving both student subjects and supply chain managers to test debiasing interventions that provide declarative knowledge, which is theorized to enhance the acquisition of procedural knowledge. We first investigate the effects of three debiasing components in a single‐echelon setting: knowledge of bullwhip, inventory position (IP), and use of a target order‐up‐to quantity. Experiment 1 (N = 1,608 decisions by 67 student subjects) using a 2 × 2 × 2 factorial design for the three components finds that the conceptual understanding of IP is salient for efficient replenishment decisions. We next examine the effects of the components in a simulated, multi‐echelon, serial supply chain, which introduces the additional complexity of coordination risk. Experiment 2 (N = 3,072 decisions by 128 student subjects) using a 2 × 2 × 2 factorial design finds that although subjects benefit from training components, there is evidence of cognitive overload with an increased quantity of information. Finally we test whether these debiasing components may be an effective training program for practicing supply chain managers who can be expected to have higher levels of procedural knowledge through experience gained in the field. Experiment 3 (N = 864 decisions by 36 supply chain managers) using a 2 × 1 design investigates the effects of an instructional training intervention which includes all three debiasing components and finds the intervention to reduce costs by 14%. We provide avenues for future research and successful practice.

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