Date of Graduation
Bachelor of Science in International Business
Waller, Matthew A.
This study analyzes the role of resource dependency theory in the supply chain, specifically investigating the supplier-retailer relationship. Resource dependency theory attempts to summarize the power-seeking behavior found in interorganizational relationships, as firms attempt to increase their own independence while increasing other firmsâ€™ dependence on them. The interdependent nature of a supply chain provides an ideal environment to analyze this type of relationship. In order to assess a firmâ€™s influence over other members, the cash conversion cycle was used as it considers the interlocking nature of the supply chain, since each action taken to constrict one firmâ€™s cycle affects that of others in the supply chain as well. It is also calculated from data that is publically available. The empirical analysis of this study, utilizing 97 of the largest public global retailers, statistically supports both of the hypotheses tested in this study: that firm size, measured by total revenue, increases influence over the supply chain, allowing the retailer to achieve a lower cash conversion cycle, and that this relationship is moderated by the level of assets, which reflects the retailerâ€™s dependence on the supplier.
McClellan, Katie, "Drivers of the Cash Conversion Cycle in Retail: a Test of Resource Dependency Theory" (2012). Marketing Undergraduate Honors Theses. 11.