Exploring the Determinants of a Supply Chain Alliance from the Purchasing Firm's Perspective

This study explored the factors that were comprising the participation intention from the perspective of purchasing firms, particularly whether supplier-related uncertainty leads to a lower willingness to join strategic alliances. Therefore, based on the literature review, this study classified perceived uncertainty into two types, there were perceived relationship uncertainty and perceived environmental uncertainty. In addition, this study also integrated agency theory as well as conceptualizations of trust and supply risk to investigate the determinants of the participation intention of purchasing firms.The results and findings suggested that fears of were positive influence on perceived relationship uncertainty. In contrast, perceived relationship uncertainty was reduced when the purchasing firm trusted their supplier. In addition, the price concerns, supply concerns, and delivery concerns were positive influences on perceived environmental uncertainty. Moreover, perceived relationship uncertainty was negative influence on participation intention significantly.The perceived environmental uncertainty was negative influence on participation intention through its impact with the perceived relationship uncertainty.