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Cooperation and Mutuality in Procurement and Supply Chain

Switching costs and inter-organisational trust are significant determinants of cooperation for buyers; technological uncertainty and the reciprocity of the relationship are significant determinants for the suppliers (Kim et al., 2010).

Information about Cooperation and Mutuality in Procurement and Supply Chain

The business environment today is characterised by extreme cost competition and a long-term concern of purchasing organisations about the availability of materials. Coordination and mutuality in the supply chain can help tackle these concerns (Pooler, 1992). They rest on arrangements and conditions which are beneficial to all parties involved through tackling environmental concerns, improving efficiency, guaranteeing supply for the buyer and business for the supplier and keeping costs low (White, 2000).

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