Purchasing Ethics and Inter-Organizational Buyer–Supplier Relational Determinants: A Conceptual Framework

Abstract

This study examines unethical purchasing practices from the perspective of buyer–supplier relationships. Based on a review of the inter-organizational literature and qualitative data from in-depth interviews with purchase managers from diverse industries, a conceptual framework is proposed, and theoretical arguments leading to propositions are presented. Taking into consideration the presence or absence of an explicit or implicit company policy sanctioning ethically questionable activities, unethical purchasing practices are conceptualized as a three-tiered set. Three broad themes emerge from the analysis toward explaining purchasing ethics from a buyer–seller perspective: (a) Inter-organizational power issues (inter-organizational powerandidiosyncratic investments), (b) Inter-organizational relational issues (long-term orientationandsatisfaction), and (c) Interpersonal relational issues (interpersonal tiesandtrust). Theoretical and managerial implications of the conceptual framework are discussed.