Buyer-Supplier Negotiations Following Reported Delivery Failure: A Conceptual Framework

Abstract

We discuss buyer-supplier negotiations in the context of termination or renegotiation of a contract after reported likelihood of supplier delivery failure. Using regulatory focus theory, learning theory, bounded rationality, and trust building perspectives, we develop a set of propositions regarding the effects of buyers’ personality factors, such as, promotion versus preventive regulatory goal focus, and factors external to the buyer like environmental uncertainty, and nature of past relationship experience with the existing supplier on termination or renegotiation of a contract after reported likelihood of supplier delivery failure.