Testing the Negative Effects of Time Pressure in Retail Supply Chain Relationships

In today's rapidly evolving business environment, retailers must develop highly responsive supply chains in order to satisfy constantly changing market demands. One approach to achieving this objective is to leverage the capabilities of other supply chain members to achieve cycle time compression of key business activities. However, when viewed through the theoretical lenses of Social Exchange Theory and Reciprocity, a potential conflict exists between facilitating supply chain responsiveness and maintaining close retailer–supplier relationships. The purpose of this research is to quantitatively test how the imposition of time pressure affects key elements of retail supply chain relationships. Scenario based experimental methodology was utilized to test the effects of time pressure on two distinct types of retailer–supplier relationships. Results of this research offer evidence to support the notion that time pressure can reduce collaborative behaviors, relationship loyalty, and relationship value in critical retailer–supplier relationships.