The Influence of Corporate Reputation on Supplier Selection and Termination

Contrary to the conventional belief that organisational supplier choice decisions are predominantly objective, this research draws on the Stereotype Content Model to examine the moderating effects of corporate reputation on supplier decisions. In an international field study with buying centre members, the results demonstrate that various dimensions of reputation differentially moderate the effects of intentions-based purchasing criteria versus ability-based criteria on supplier selection and termination behaviour. Specifically, only in the absence of a strongly Agreeable or Competent reputation do intentions and warm abilities-based purchasing criteria respectively have a significant influence on selection and termination. Conversely, only in the presence of a strongly Ruthless reputation do cold abilities-based purchasing criteria exert a significant influence on supplier selection or termination. These findings have implications for the corporate reputation and industrial buying literatures, as well as managerial practice. Keywords: corporate reputation, moderation, supplier selection, termination