Luận án tiến sĩ: Thất bại trong phát triển nhà cung cấp - Tran Phuong, ĐH Newcastle

WHEN SUPPLIER DEVELOPMENT INITIATIVES FAIL: EXPLORING THE CAUSES OF OPPORTUNISM AND THE ROLE OF RELATIONAL NORMS by Tran Nguyen Thu Phuong A thesis submitted in accordance with the requirements for the Degree of Doctor of Philosophy Newcastle University Newcastle University Business School Supervisors: Professor Fred Lemke Professor Matthew Gorton ©Phuong Tran, September 2022 DECLARATION This thesis and the work to which it refers are the results of my own efforts. Any ideas, data, images, or text resulting from the work of others (whether published or unpublished) are fully identified as such within the work and attributed to their originator in the text, bibliography or in footnotes. This thesis has not been submitted in whole or in part for any other academic degree or professional qualification. Study 1 of this thesis has been published in the Journal of Business Research in April 2021.

Therefore, a part of the content of the thesis is identical with the refereed paper: Tran, P. “When supplier development initiatives fail: Identifying the causes of opportunism and unexpected outcomes.” Journal of Business Research 127: 277-289. Phuong Tran i ABSTRACT Supplier development initiatives refer to actions by buyers to improve a supplier’s performance and/or capabilities, and are often described as a ‘win-win’ for both buyers and their suppliers. However, supplier development initiatives can be ineffective and stimulate opportunistic behaviour by suppliers, so that the investments made by buyers are counterproductive.

The thesis investigates this ‘dark-side’ of supplier-buyer relationships. Specifically, it studies (a) the relationships between supplier development initiatives, relational norms, and supplier opportunism, and (b)seeks to understand the factors that increase the likelihood of a positive outcome (improvements in the buyer’s performance) and decrease supplier opportunism. Informed by transaction cost and social exchange theories, and drawing on the case of fresh fruit and vegetable supply chains in Vietnam, the thesis comprises of two studies. The first study utilises thematic analysis and qualitative comparative analysis to analyse the relationships between specific supplier development initiatives and forms of opportunism, considering the role of relational norms.

While often regarded as reducing the likelihood of opportunism, the study identifies a specific relational norm, norms of opportunism in supply chain relationships, which sanction a degree of opportunistic behaviour. The second study introduces and validates a model of supplier development, considering both negative and positive outcomes simultaneously. The analysis based on structural equation modelling indicates that supplier development not only can help improve a buyer’s performance, but also simultaneously increases supplier opportunism. However, the degree to which supplier development initiatives lead to positive or negative outcomes depend on goal congruence and long-term orientation.

The research contributes to supply chain management theory and aids practitioners by investigating how buyers can address opportunism, so that supplier development initiatives curb supplier opportunism rather than trigger it. Supplier development initiatives should be designed to fostering suppliers’ long-term orientation and goal congruence between parties. ii ACKNOWLEDGEMENT Five years ago, when I was about to accept a PhD offer from another institution, I received an invitation to a PhD interview at Newcastle University. This great conversation with my prospective supervisors changed my mind and I never looked back.

This has been a long PhD journey with lots of up and down, but it has been an incredible journey for me. First and foremost, I would like to express my deepest gratitude to my supervisors, Professor Fred Lemke and Professor Matthew Gorton, for their valuable guidance and support during my PhD journey. I can never thank them enough for their endless patience, encouragement, and care that has helped me overcome the most challenging moments in the past five years. I would never have imagined me accomplishing my PhD or having internationally recognised publications without them.

Lemke has always given me great challenges along with constructive feedback and thoughtful guidance for me to go beyond my comfort zone. My admiration extends to his long-term vision and excellent skills toward collaborations within the academic networks, as well as his attention-to-detail attitude. Gorton has always been very patient and takes good care of me in every situation I have been through even before I arrived in the UK. He always has time for me in between his busy schedule and has given me helpful advice, not only on my academic journey but also on other life matters.

I see my supervisors as role models in supervising and mentoring students, and what I have learned from them influences how I will treat my students and shapes my do-able attitude toward my career path. I feel deeply grateful to be their PhD student. I would like to acknowledge the Ministry of Education and Training in Vietnam, whose funding in four years has allowed me to pursue the highest degree in education. I would also like to thank the University of Economics Ho Chi Minh City (UEH) for supporting me in securing the grant and partly funding me for my data collection.

My thanks are extended to Newcastle University, who gave me funding for attending training workshops and conferences and provided me with a laptop and equipment for a comfortable working environment at home during the Covid-19 pandemic. Data collection was a difficult task that I could not have accomplished without support from various people. I would like to thank Assoc. Tran Tien Khai, Dr.

Ngo Thi Ngoc Huyen, Dr. Nguyen Thi Doan Tran, Lecturer Le Thanh Nhan, Lecturer Luong Vinh Quoc Duy, Lecturer Tran Hong Hai from UEH, Dr. Nguyen Ngoc Hoa from Ho Chi Minh City Department of Industry and Trade; Mr. Pham Quoc Liem from Unifarm; Dr.

Doan Huu Tien from the iii Southern Horticultural Research Institute; Mr. Dang Phuc Nguyen from Vietnam Fruit and Vegetables Association; Ms. Phan Thi Xuan Dieu from Ho Chi Minh City Institute for Development Studies and my friends - Tong Hong Anh, Vo Nguyen Giang Tu, Do Bich Van, Tran Sy Quy, Le Thi Nguyet Giang, Huy Phan and Nguyen Lam Phuong for supporting me in getting contacts with organisations of interest. My thanks go to all the managers who spent their time being interviewed.

Special thanks to my support team, including my students Thao Linh, Thuy Linh, Tan Loc, and Milestones company, for assisting me in doing fieldwork. I also appreciate the work of my inter-coders, Dr. Linh Pham, Dr. Anh Nghiem, Lecturer Duong Nguyen, Ha Sherry and Vi Tran who helped validate my interview data.

I very much appreciate Ms Carolyn Watkin - Education Administrator PGR, the admin team, the finance team, and the IT service at Newcastle University Business School for their efficient services. I benefited from working in the PhD office with the facilities and services I need to fulfil my tasks. I will not forget to mention HASS faculty, the University lecturers and NARTI for their helpful training workshops which has equipped me with essential skills to accomplish my research. Thanks also go to Ms Hoang Thi Kim Oanh - Principal Official of International Education Division at MOET, the Personnel department and Finance and Accounting department at UEH for their support with paperwork and my funding.

I am grateful to have many good friends in the UK and Europe who have given me great peer supports whenever I need it. Many thanks to Ade, Kamran, Martin, Rosie, Rainy, and Ahmed - my PhD colleagues, for sharing memorable times together in Newcastle and helping me in house moving. Thanks to Andrea Lane for your helpful information, kind sharing, passion in connecting people, and the writing group initiative with Adrienne and Katie, which makes me feel included and motivates me to get the writing done. Special thanks to Irene, Stefan, and Schaedel’s family in Germany, who always welcomed me and treated me like a family member.

Not to forget Palma, Eva, Alex, and Ankit, my friends from Leeds time for the solid connections and memorable events over the years despite the physical distance. I would also like to thank Margi Patterson from Newcastle whose kindness and caring make me feel like having my mom around. I would like to extend my gratitude to my Vietnamese friends in the UK and in Vietnam. I cannot thank Linh Pham, Anh Nghiem, and Khanh Hoang enough for accompanying me throughout the PhD journey.

They have always encouraged me, helped me believe in myself, given me advice on various matters and choices, and spent time with me through joy and iv sorrow. I would like to acknowledge other 911 friends, including Hang Nguyen, Bao Vi, Tra Hoang, Linh Kate, Trang Vu and Ninh Hoang for sharing experiences and hosting me on my short trips. Thanks, Diem My Do, Phuong Duong, and Trang Quynh To, my long-time childhood friends, for including me on special occasions and making me feel home. I would like to extend my sincere thanks to Nghi Vo for the thoughtful talks between us.

Thank you Nghi and his family for welcoming me to their home in London on my first days in the UK and for the bicycle which has been of use for the last three years. I would also like to thank Dory, Ha, Vi, Thao, Hoa, Hien, Nhat, Trang, and other Vietnamese friends in Newcastle, for our fun gathering times and delicious Vietnamese foods, which helped me overcome homesickness. Thanks should also go to my travel buddies and best friends in Vietnam, Hannah Huyen Tran, Giang Duong, and Thanh Le, who have shared many memorable trips with me, helped me to take care of my parents in Vietnam and talked with me every day. I am grateful to have Hoang Anh, Ngoc Mai as my best lifetime friends who are always beside me and listen to me whenever I need them the most.

Thanks, Quynh Thu, my close friend and colleague at UEH, who has matched milestones with me since our undergraduate journeys, which let us have a lot in common to share during our PhD journey. I gratefully acknowledge other colleagues at UEH and other friends in Vietnam who occasionally help me in various matters. This thesis is completed in remembrance of my late grandparents, whom I hope will be proud of me in heaven. Not being with you in the last moment of your lives was one of the most significant trade-offs for my PhD, but I know you both will be happy to see me grow.

Special thanks to my extended family, my aunties, uncles, and cousins for their love, support, and encouragement in every milestone of my life. Last but certainly not least, I would like to express my deepest gratitude to my parents, who love me unconditionally, sacrifice for me, believe in me, and take good care of themselves to let me freely follow my dream. I love you to the moon and back. Newcastle, 22 September 2021 Phuong Tran v TABLE OF CONTENTS DECLARATION.

iii TABLE OF CONTENTS .vii LIST OF TABLES .xii LIST OF FIGURES. xiii LIST OF ABBREVIATIONS .1 Introduction and Rationale .2 Research Aims and Objectives.4 The Vietnam Context.5 Summary of the Contribution of the Thesis .6 Structure of the Thesis .1 Definition and Classification .2 The Implementation of Supplier Development.3 The ‘win-win’ scenario of supplier development .4 Summary of Past Research .4 Summary of Current Research .1 Social Norms and Individual Behaviours.3 Relational Norms as an Overarching Term in the Literature.1 Transaction Cost Theory (TCT).2 Social Exchange Theory (SET) .2 The Linkage Between Supplier Development, Relational Norms, and Opportunism 63 3.3 Hypothesis Development for Study 2 .1 Supplier development and buyer performance improvement .2 Supplier development and opportunism .3 The mediating role of goal congruence .4 The mediating role of role integrity .5 The mediating role of long-term relationship orientation .1 Ontology, epistemology, and research paradigm .2 Pragmatism as the philosophical approach of this research .1 Mixed-methods research approach .2 Study 1 - Qualitative Research .2 Fuzzy-set qualitative comparative analysis .3 Study 2 - Quantitative Research .4 The Vietnam Context.1 The country overviews .2 Vietnam’s fruit and vegetable supply chain structures .5 Research Design for Study 1 .